AusAID to Help Improve NTB Civil Servants ... - The President Post

The President Post 

THE SPIRIT OF INDONESIA 

Display until March 12, 2012 /// N0. 32 

ThE ECONOMY BUSINESS 

INTERNATIONAL 

Non-oil/gas Manufacturing 

Industries Grow 6.% in 2011 

The growth of all the non-oil/non-gas 

industrial sectors was expected to 

remain high this year. The industry 

minister expressed hope the growth of 

the non-oil/gas industries would exceed 

7% this year. 

PAGE A5 

Minister to Scrap Stateowned 

Firms 

The number of state-owned enterprises 

(BUMNs) in the country is to be cut by 

about 20 so that only 120 will be left 

this year, State Enterprises Minister 

Dahlan Iskan said here Wednesday. 

PAGE B2 

Indonesia-Russia Relati ons 

Bolstered Through Real 

cooperati on Agreement 

Russia-Indonesia relati ons have gained 

a new momentum and become an 

important issue on the internati onal 

agenda. 

PAGE B7 

AUTOMOTIvE 

RI Races to Produce Own Cars 

as Germany Steps in With Aid 

A car producti on fever is gripping 

Indonesia these days with students, 

government offi cials, politi cians, and 

business leaders alike impati ently 

moving to manufacture what they call 

“Mobil Nasional" or “nati onal cars.” 

PAGE C1 

IDR 20,000 

www.thepresidentpost.com 

“Resolve Industrial Disputes 

Through Musyawarah, Mufakat” 

JAKARTA (TPP) – In 

late January massive 

labor protests took place 

in Bekasi, West Java, 

when thousands of 

workers from about 300 

companies blocked the 

Jakarta-Cikampek toll 

road for several hours. 

They did so after a court 

ruled in favor of the 

Indonesian Employers 

Association (Apindo), 

which had challenged 

a gubernatorial decree 

increasing the minimum 

wage. 

The original gubernatorial 

ruling 

raised the minimum 

monthly wage in 

Bekasi district from 

Rp 1. 29 million to 

Rp 1.49 million ($144 to $167). 

But the Court ordered the provincial 

governor to issue a new decree 

based on the earlier agreement 

between the employers’ association 

and workers. In the end Apindo 

and the labor unions reached 

a deal, as the government had 

asked Apindo to accept the workers’ 

demands and drop its lawsuit, 

which it agreed. 

The government has been criticized 

by both sides, with businessmen 

saying officials should 

have taken a stronger stance 

against the workers. The business 

world also complained that rowdy 

unions will make foreign investors 

think twice about bringing 

their money into the country. On 

the other hand, labor leaders have 

berated the government for doing 

nothing to improve the welfare of 

the working class. 

SD Darmono, the president director 

of PT Jababeka, which owns 

and manages the largest industrial 

estate in Southeast Asia, told 

President Post that “musyawarah 

(deliberation) and mufakat (consensus) 

are the best ways to resolve 

labor disputes, as they are 

part and parcel of Pancasila.” 

[Pancasila is the official philosophical 

foundation of the Indonesian 

state. It comprises five inseparable 

and interrelated principles 

and were formulated by one of the 

state’s founding fathers and first 

president, Soekarno. 

They are Belief in the one and 

only God; Just and civilized humanity; 

The unity of Indonesia; 

Democracy guided by the inner 

wisdom in the unanimity arising 

out of deliberations amongst representatives; 

and Social justice for 

all of the people of Indonesia.] 

“Workers should not always be 

repressed, they should be engaged 

in dialogs. Musyawarah and mufakat, 

which are the spirit of Pancasila, 

have proven to be effective 

in putting an end to the demo in 

January,” he added. 

In a warning that echoed the 

concerns of many businessmen 

and investors, Trade Minister Gita 

Wirjawan said that the laws sometimes 

favor workers at the expense 

of employers, and risk putting off 

investors just as Indonesia is on 

the path to economic growth. The 

government, celebrating a record 

$20 billion in foreign investment 

last year, is keen to keep a lid on 

industrial action that could scare 

away investors. 

Darmono, however, disagrees, 

saying that “cheap labor should 

not be our selling point in attracting 

investors to Indonesia. Our 

selling points should be security, 

legal certainty, ease in doing business, 

a huge and growing market, 

sound infrastructure and reliable 

human resources.” 

“In our industrial estate the 

number of Apindo members is 

small and does not represent the 

interests of the majority of companies 

that are foreign and non- 

Apindo members. Foreign companies 

put a premium on security 

and harmony with workers. However, 

a 30% rise is a bit too high 

and can set a bad precedent,” 

added Darmono. 

According to the Central Statistics 

Agency (BPS), food prices rose 

by nearly 16% in 2010, while the 

wages of factory workers grew by 

less than 7%. 

"Wage increases have not kept 

up with inflation, especially food 

Workers should not 

always be repressed, 

they should be engaged 

in dialogs. Musyawarah 

and mufakat, which are 

the spirit of Pancasila, 

have proven to be 

effective in putting an 

end to the demo in 

January." 

SD Darmono 

President Director of PT Jababeka 

prices," said economist Kazutoshi 

Chatani at the International Labor 

Organization. "This means 

that most of the workers are actually 

struggling to pay for basic 

needs." 

Indonesia, the largest economy 

in Southeast Asia, is among 

the top 20 economies in the world, 

with growth this year of around 

6%. The ratings agency Fitch last 

year upgraded the country to investment-grade 

status. More than 

half of its 240 million inhabitants 

have entered the middle class, according 

to the World Bank, which 

defines that as those who spend 

$2 to $20 a day. Still, many of 

them toil for barely a living wage, 

offering some of the cheapest labor 

in Asia. 

Affordable labor is a main reason 

investors are attracted to Indonesia, 

in part to offset wage increases 

in China, said Minister 

Wirjawan, who is also head of the 

investment coordinating board 

BKPM. But recent strikes for higher 

wages by mine workers and supermarket 

clerks, as well as pilots 

of the state-owned airline, Garuda, 

have disrupted business operations 

— and could potentially deter 

foreign investment. 

Indonesian factory workers still 

remain some of the lowest-paid 

in Asia, usually making between 

$100 to $200 a month. Similar 

workers in China now earn just 

over $300 a month, according to 

a 2010 survey by Japan External 

Trade Organisation, followed by 

Malaysia ($298), India ($269) and 

Thailand ($263). 

Minimum workers’ wages are 

determined by the Law on the 

Council of Wages comprising AP- 

INDO (seven members), the Confederation 

of Workers Union (seven 

members) and representatives 

of province (14 members). Wages 

are divided into three types of industries, 

namely heavy, medium 

and light. 

Says Darmono: “Bad communications 

within the Council of 

Wages and late intervention by 

the government is a bitter lesson 

we all must learn from to prevent 

a recurrence of the case in the regions.” 

“The way I see it, in the short 

term minimum wages must be 

determined on a national basis to 

prevent possible disputes in the 

future in regencies and provinces. 

This could be done with the 

help of the state-run statistics 

Australia`s foreign aid 

agency AusAID has agreed 

to help improve the Englishlanguage 

proficiency of civil 

servants in West Nusatenggara 

(NTB), a local official 

said. 

"We proposed that AusAID 

help raise the TOEFL scores 

of civil servants in NTB and 

they agreed," said Rosiady 

Sayuti, head of NTB`s Development 

Planning Agency 

(Bappeda) after accompanying 

Vice Governor H Badrul 

Munir at a meeting with a 

team from the Australian 

embassy in Jakarta here on 

Thursday. 

The Australian Embassy 

team had come to Mataram 

body BPS. A regional or city index 

system should be applied, for example 

Jakarta 120% of the minimum 

wages, Bekasi 110% and so 

forth,” added Darmono. 

“A similar index could also be 

put to effect on the basis of sectors, 

for example manufacturing 

110% and service 100%, or by the 

size of the company in question.” 

“As a mid-term solution, Jabotabek 

in conjunction with the 

government should be designated 

as a high-tech industry area with 

higher wages so that labor-inten- 

Indonesian factory 

workers still remain 

some of the lowest-paid 

in Asia, usually making 

between $100 to $200 

a month. Similar 

workers in China now 

earn just over $300 

a month, according 

to a 2010 survey by 

Japan External Trade 

Organisation, followed 

by Malaysia ($298), 

India ($269) and 

Thailand ($263). 

sive companies can be relocated 

to regions with abundant of workers. 

The government can assist by 

building infrastructure so that 

companies would find it attractive 

to relocate to the regions.” 

The West Java provincial government 

plans to have workers 

earn Rp 5 million a month within 

10 years so that they will be 

able to enjoy a reasonable standard 

of living. A significant and 

systemized salary raise will boost 

the purchasing power of Indonesians 

raise their level of productivity, 

and attract more foreign investors 

to Indonesia. 

The Tourism and Creative 

Economy Ministry and the Ministry 

of Industry should prepare 

100 new tourist and industrial 

destinations and new cities in 

a bid to create employment, says 

Darmono. 

“Regional governments should 

make their provinces look nice 

and attractive, be and active in 

promoting human resources. 

They should manage natural resources 

in a proper manner. This 

will gradually create better distribution 

of wealth,” says Darmono, 

who is also chairman of PATA Indonesia. 

AusAID to Help Improve NTB 

Civil Servants’ English Proficiency 

The Australian 

Embassy team had 

come to Mataram 

to familiarize 

relevant provincial 

NTB officials 

with an extended 

program to provide 

scholarships for 

NTB civil servants. 

www.infogres.com 

to familiarize relevant provincial 

NTB officials with an extended 

program to provide scholarships 

for NTB civil servants. 

“Our target is to have 50 civil 

servants at provincial, district or 

city level government offices improve 

their TOEFL score," he said. 

The average TOEFL score of civil 

servants in NTB now, according 

to Rosiady, was 450 whereas 

to receive a scholarship for studies 

abroad one had to have a minimum 

TOEFL score of 500. 

Australia hails Indonesia`s First 

Street Football Tournament 

The Australian Embassy congratulated 

on Tuesday the League 

of Change, Indonesia`s first national 

street football tournament, 

for using sport to give opportunities 

for marginalised communities 

around the country. 

Eight provinces were represented 

at the three-day tournament 

organised by Rumah Cemara, 

a Bandung-based organisation 

that works to increase the quality 

of life and reduce stigma towards 

people living with HIV, the Australian 

said in its official website here 

on Tuesday. 

Our target is to have 

50 civil servants at 

provincial, district or 

city level government 

offices improve their 

TOEFL score." 

The Australian Embassy 

awarded Rumah Cemara 

with a A$10,000 Allan Taylor 

Sports Grant to help run 

the event. 

"Football is a sport close to 

the hearts of many Indonesians 

and a great way to educate 

people about complex 

social issues," said Ambassador 

Greg Moriarty. 

The Allan Taylor Sports 

Grant is sponsored through 

the Australia-Indonesia Institute 

and is designed to further 

develop sports in Indonesia. 

The late Allan Taylor (a 

former Australian Ambassador 

to Indonesia) was a keen 

sportsperson.

A2 

February 12, 2012 

Opinion 

By Tuti W. Sunario 

In the Strategic Plan to be implemented until 

2014, contribution of creative economy and 

industries to national GDP is targeted to 

increase from 7.5% in 2011 to 8% in 2014, 

with contribution to employment during this 

period rising from 8% to 8.75%. 

In October 2011, when 

President Susilo Bambang 

Yudhoyono reshuffled the 

cabinet, Creative Economy 

was moved from the 

Trade Ministry and placed in tandem 

with Tourism, while Culture 

in the former Ministry for Tourism 

and Culture was returned to 

the (present) Ministry for Education 

and Culture. The appointed 

minister entrusted to lead the new 

Ministry for Tourism and Creative 

Economy was no less than DR. 

Mari Elka Pangestu, former Minister 

for Trade, who, nota bene pioneered 

Creative Economy at the 

Trade Ministry of Indonesia. 

This appointment was enthusiastically 

welcomed, especially 

by the creative world, from remote 

villages to renowned artists, 

who viewed this as a political recognition 

of their work. They hope, 

of course, this sector will receive 

a boost in the coming years. Indeed, 

to develop Creative Economy, 

President Yudhoyono had issued 

Presidential Instruction No. 

6/2009, instructing 27 ministries 

and state institutions together 

with local governments to jointly 

develop Creative Economy. 

The Presidential Instruction defines 

Creative Economy as comprising 

14 creative industries considered 

as its main pillars, namely 

advertising, architecture, art and 

antique marts, handicrafts, design, 

fashion, film, videos and 

photography, interactive games, 

music, art performances, publishing 

and printing, computer 

services and software, radio and 

television, and research and tech- 

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Menara Batavia 25 th Fl. Jl. K.H. Mas Mansyur Kav. 126 

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nology. In order to develop them, 

a special Coordinating Team was 

set up chaired by Coordinating 

Minister for Public Welfare with 

Coordinating Minister for the 

Economy as co-chair. Appointed 

as Executive Chair is Minister for 

Trade with co-chair the Minister 

for Industry. 

On January 4, 2012, Minister 

Mari Pangestu explained that 

the Creative Economy Sector 

has the vision to raise the 

quality of life of the people, 

boost tolerance, and create 

added value. Actions 

following this vision include 

raising competitiveness 

and added value, institutional 

development, 

appreciation and implementation 

of the law, 

joint and sustainable 

promotion, development 

of human and capital resources, 

development of 

technology, as well as access 

to funding. 

“I realize that the two 

main challenges facing Creative 

Economy are property 

rights and access to funding”, 

said Minister Pangestu. 

“We will undertake coordination 

and cooperation to strengthen 

the protection and implementation 

of property rights to be 

more effective, and facilitate access 

to funding through matchmaking.” 

Through such actions it is expected 

that Creative Economy will 

not only increase the country’s 

foreign currency income, but also 

domestic consumption of creative 

products and services, thereby 

raising employment and contributing 

added value to the national 

economy, 

and boostingIndonesia’s 

international 

image and drawing investments 

to the sector. 

In the Strategic Plan to be implemented 

until 2014, contribution of 

creative economy and industries 

to national GDP is targeted to in- 


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The President Post www.thepresidentpost.com 

BOOSTING 

CREATIVE 

ECONOMY 

PERSONAL INFORMATION 

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crease from 7.5% in 2011 to 8% 

in 2014, with contribution to employment 

during this period rising 

from 8% to 8.75%. 

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T o 

implement 

the 

program, the 

Ministry will have 

two new Director Generals. 

One is in charge of arts 

and culture by leading three directorates 

on films, performances 

and music, and the second is 

in charge of media, design and research 

and technology overseeing 

The Presidential Instruction defines Creative 

Economy as comprising 14 creative industries 

considered as its main pillars, namely advertising, 

architecture, art and antique marts, handicrafts, 

design, fashion, film, videos and photography, 

interactive games, music, art performances, 

publishing and printing, computer services and 

software, radio and television, and research and 

technology. 

the directorates for electronic and 

print media, digital media and design 

and architecture. The Ministry 

will also have four Expert Advisors, 

in the protection of diverse 

creative expressions, service economy, 

inter-institutional relations, 

and in research and technology. 

What is Creative Economy? 

While everyone knows what 

creativity is, it is however not 

so clear when it comes to what 

is actually meant by Creative 

Economy. “Creativity”, 

says John Howkins, in his 

book The Creative Economy, 

“is not in itself an economic 

good, but in its application 

it can become 

so”. Talent and innovations 

are the productive 

elements in the creative 

process and the magic 

ingredients in the creative 

economy. Howkins 

includes individual intellectual 

property rights, 

patents, trademarks and 

design rights. 

On its side, the United Kingdom 

Creative Industries Task 

Force (1998) defined “Creative 

industries as those industries 

which have their origin in individual 

creativity, skill and talent, and 

which have a potential for wealth 

and job creation through the generation 

and exploitation of intellectual 

property and content” 

The Indonesian Trade Ministry 

defined Creative Economy as 

“a new economic era which intensifies 

information and creativity 

that rely on the stock of knowledge 

of human resources as main 

production ingredients in its economic 

activities.” 

On the other hand, UNDP and 

UNCTAD, in “The Creative Economy 

Report (2008)” stated that: “In 

the contemporary world, a new 

development paradigm is emerging 

that links the economy and 

culture, embracing economic, cultural, 

technological and social aspects 

of development at both the 

macro and micro levels. Central to 

the new paradigm is the fact that 

creativity, knowledge and access 

to information are increasingly 

recognized as powerful engines 

driving economic growth and 

promoting development in a globalizing 

world. There is thus an 

economic aspect to creativity, observable 

in the way it contributes 

to enterprenuership, fosters innovation, 

enhances productivity and 

promotes economic growth” 

Based on the above, therefore, 

it is clear that at the heart of the 

matter is the human mind and his 

or her creativity. But the mind’s 

products, whether they are tangible 

or intangible, have an economic 

value only when these are traded. 

As such, I believe Indonesia 

needs to make a paradigm shift 

to be able to become a competitive 

player on the global scene in this 

era of the creative economy. 

Our creative human assets are 

abundant, but to adjust them to 

meet the criteria drawn up by the 

international world to compete in 

today’s global world needs massive 

re-education. Thus “the creative 

economy” should not only be 

seen solely as an administrative 

function of government to benefit 

industry, but should ideally be 

made into a powerful drive to develop 

the nation to meet the challenges 

in this fast changing global 

world. 

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www.thepresidentpost.com The President Post 

February 12, 2012 A3 

Perspective 

Global Investment Flows: Indonesia Catching Up 

Indonesia has been catching up quite significantly 

in 2011. Investors were no more sitting on the fence 

as happened before. It is now up to Indonesia to 

make it possible for this upward trend to continue 

in the future. 

By Atmono Suryo 

GLOBAL TRENDS 

The economic and financial 

crisis has 

an adverse effect on 

global capital flows, 

particularly during 

2008-09. But as of 

2010, the situation had begun to 

change. According to UNCTAD, 

global foreign direct investment 

flows rose by 5% in 2010 albeit 

still below the 2007 pre-crisis 

level. 

In the area of global investment 

there are a number of fundamental 

developments which are of 

great importance for Indonesia, 

which is in the process of promoting 

greater investment flows: 

• Notwithstanding the economic 

financial crisis, FDI has not 

disappeared completely as was 

happening with other sources 

of global finance; 

• It may have gone down as happened 

during the crisis, but it 

is still available and will return 

as soon as possible when conditions 

are better; 

• In a relatively short time global 

FDI rose by 17% in 2011 compared 

to 2010. It shows that 

FDI has a great deal of flexibility—the 

area of FDI is still an attractive 

business undertaking; 

• An important point to note is 

that there is now a shift on the 

side of the recipient countries. It 

• 

• 

is no more the advanced countries 

which dominate the market. 

It is now the turn of the developing 

countries, which are now 

the ones that have a greater say. 

In fact, developing countries begin 

to absorb half of global FDI 

flows in 2010. 

Some emerging countries have 

now become good suppliers of 

FDI; they are coming from Asia 

as well as from Latin America 

and the Gulf region. This will 

give Indonesia a greater choice 

in attracting FDI’s. 

Despite the economic and financial 

crisis global FDI rose by 

17% in 2011 compared to the 

year 2010. It is estimated that FDI 

flows will continue to increase in 

2012 to around $1.6-1.7 trillion 

and $1.9 trillion in 2013. 

An important trend to be noted 

by Indonesia is that developing 

and transition economies start to 

absorb half of global FDI inflows 

in 2010. South-East Asian countries 

are rated to be the best performers 

after experiencing a slide 

in 2010. The largest portion went 

to developing countries in Asia, 

which rose by 11% in 2011. Sharp 

increases took place in 2011 in a 

number of ASEAN countries, in 

particular Indonesia, Malaysia 

and Thailand. 

Indonesia’s position in 2009-10 

One would recall that for quite 

FIGURE 1: Top HosT EconomIEs FoR FDI In 2011-2013 

Source: UNCTAD 

China 

United States 

India 

Brazil 

Russian Federation 

Poland 

Indonesia 

Australia 

Germany 

Mexico 

Vietnam 

Thailand 

United Kingdom 

Singapore 

Taiwan Province of China 

Peru 

Czech Republic 

Chile 

Colombia 

France 

Malaysia 

a number of years (before 2010) 

Indonesia had difficulties to attract 

FDI. As they often said at 

that time “Investors continue to 

sit on the fence waiting for better 

times to come”. Many years were 

just lost at that time on account of 

the non-conducive investment climate 

in the country. The situation 

has now changed for Indonesia. 

Among the emerging countries, 

about nine are within the top 20 

recipients, namely China, Hong 

Kong, China, Brazil. Singapore, 

Saudi Arabia, India, Mexico, Chile 

and Indonesia (with $13 bln). During 

2009-2010 Indonesia was still 

at the bottom of the list of the top 

20 recipient countries. This situa- 

0 10 20 30 40 50 60 70 80 90 

tion is now beginning to change in 

the right direction. 

IMPORTANCE OF FDI 

In terms of attracting foreign 

FDI’s, Indonesia is being considered 

as a remarkable potential 

and investment destination. In 

practice, however, the country is 

often considered as a risky. As investors 

often say, “Nothing is certain 

in this country.” 

FDI has its positive sides but 

also its weaknesses and political 

risks. As is the case with trade, 

the area of Investment Flows is 

also an area of fierce competition. 

Developing countries are at present 

very keen to attract FDI’s, as 

Indonesia is not the only country 

in need of FDI. 

Looking from the positive side 

of FDI, one can identify a number 

of positive points such as: 

• FDI is a source of economic development 

and modernization; 

in addition to exports, this is 

now recognized by most of the 

developing countries; 

• FDI provides capital on top of 

domestic investment, which is 

often in short supply in developing 

countries—it also ensures 

income growth; 

• Importantly, FDI brings technology 

and productivity gains, 

which are needed by the emerging 

countries; 

• lt also provides high-level job 

creation for many developing 

countries, including China, 

• 

Brazil, Mexico and many other 

countries in East Asia and Latin 

America. 

FDI is an asset to the host countries. 

It forms a part and enlarges 

the country’s total GDP. 

It is well recognized that FDI 

has its weaknesses. For one, FDI 

may push aside or even squeeze 

out the weak domestic investors. 

But every country has its own 

way to protect its interests. 

CURRENT TRENDS 

It is quite amazing to see how 

Indonesia’s position has changed 

since around 2010. This is a remarkable 

achievement on the 

side of the investment coordinating 

body, BKPM. According to 

UNCTAD, a number of countries 

are considered to be top pontential 

recipients, which include Indonesia. 

Investment realization 

The following BKPM data (Fig- 

ure 2) show that the cummulative 

investment realization January-December 

2011 has reached 

Rp 251.3 trillion, consisting of Rp 

76.0 trillion in domestic direct investments 

(PMDN) and Rp 175.3 

trillion in foreign direct investments 

(PMA). 

The data confirm that Indonesia 

has been catching up quite 

significantly in 2011. Investors 

were no more sitting on the fence 

as happened before. It is now up 

to Indonesia to make it possible 

for this upward trend to continue 

in the future. 

The writer is former ambassador 

to the EU 

FIGURE 2: ThE CUMMULATIvE INvESTMENT REALIzATION 

(January-December 2011) 

PMDN realization in five largest sectors 

Food Crops and Plantation Rp 9.4 trillion 

Paper and Printing Industry Rp 9.3 trillion 

Electricity, Gas and Water Supply Rp 9.1 trillion 

Transport, Storage and Communication Rp 8.1 trillion 

Food Industry Rp 8.0 trillion 

Realization of PMA based on the sector (five biggest) : 

Transport, Storage and Communication $3.8 billion 

Mining $3.6 billion 

Electricity, Gas and Water Supply $1.9 billion 

Metal, Machinery and Electronic Industry $1.8 billion 

Chemical and Pharmaceutical Industry $1.5 billion 

PMA realization based on countries (five biggest) 

Singapore $5.1 billion 

Japan $1.5 billion 

USA $1.5 billion 

The Netherlands $1.4 billion 

South Korea $1.2 billion 

Source: BKPM 

In terms of attracting 

foreign FDI’s, Indonesia 

is being considered as a 

remarkable potential and 

investment destination. 

In practice, however, 

the country is often 

considered as a risky. 

As investors often say, 

“Nothing is certain in this 

country.”

A4 


The Economy 

ECONOMIC UPDATES 

Govt to Offered Five Series of 

Sharia State Bonds 

The government has offered five series of sharia state bonds (sukuk) worth Rp1 

trillion in an auction on February 14 to meet part of financing target in the 2012 

state budget. 

Director General of Debt Management at the Finance Ministry Rahmat Waluyanto 

said on Tuesday four of the five series of sharia state bonds would be project-based. 

They are PBS002 and PBS004 which are new issues and PBS002 and 

PBS003 which are the reopening of the existing issues. The other sharia state bond 

is series SPN-S 15082012 which is also new issue, he said. 

The sharia state bonds series PBS001 due on February 15, 2018 and series 

PBS002 due on January 15, 2022 will be issued at a yield of 5.45%, he said. Meanwhile, 

the sharia state bonds series PBS003 due on January 15, 2027 will be issued 

at a yield of 6% and series PBS004 would mature on January 15, 2037, he said. 

The underlying assets of the four series of sharia state bonds are projects or 

activities in the 2012 state budget, he said. The sharia state bonds series SPN-S 

15082012 due on August 15, 2012 will be issued at discount yield and the underlying 

assets of the sharia state bonds are state assets in the form of land and 

building, he said. 

Domestic Consumption 

Expected to increase 9.1% 

www.antaranews.com 

Domestic consumption is predicted 

to grow 9.1% to Rp4,124 

trillion in 2012 with the trade, hotel 

and restaurant sectors as the main 

engine, Trade Minister Gita Irawan 

Wirjawan said. 

Business agents could take advantage 

of strong domestic consumption 

to increase the supply of 

their products to and the share of 

Trade Minister Gita Wirjawan 

their products in the domestic market, 

he said at a working meeting 

with the House of Representatives Commission VI here on Monday. 

The government was trying to encourage the public to have better appreciation 

for domestic products as part of efforts to increase the use of locally-made 

goods, he said. 

The effort to improve the public`s appreciation for domestic products had 

been made by among others launching "I Love Indonesia" (ACI) movement and 

improving Indonesian image at home and abroad, he said. 

The government also had begun implementing a program designed to increase 

the use of domestic products among others by encouraging state agencies 

to use more domestic products in the procurement of government goods and 

services, he said. In addition, he added the government was also trying to control 

the import of goods that had the potential to lower the competitive edge of local 

products. 

On a quarterly basis, 

Indonesia`s payments 

balance showed positive 

performance in the first 

and second quarters 

of 2011 among other 

things because export 

commodity prices were 

still rising and foreign 

portfolio investments 

flowing in briskly. 

Indonesia's balance of payments 

in 2011 recorded 

a surplus of $11.9 billion 

consisting of current, capital 

and financial transactions, 

a Bank Indonesia (BI) or 

central bank official said. 

The current transactions 

surplus was supported by the 

country`s export performance 

which remained fairly high de- 

Indonesia`s foreign exchange 

reserves as of January 31, 2012 

stood at $112 billion, enough to 

finance imports and foreign debt 

repayments for 6.2 months, according 

to the central bank. 

This figure represents an increase 

of about $2 billion, compared 

to $110.123 billion in the 

year ended December 31, 2011, 

head of Bank Indonesia`s Public 

Relations Bureau Difi A Johansyah 

said here on Thursday. 


BI: 2011 Payments Balance 

Posts $11.9b Surplus 

spite weakened world demand, 

said Dyah NK Makhijani, a BI official 

in charge of strategic policies. 

The capital and financial transactions 

surplus stemmed from increases 

in direct foreign investment 

flows and in disbursement 

of the private sector`s foreign 

loans in conjunction with a conducive 

investment climate and a 

well preserved macroeconomic 

stability, she said. 

As a result of those conditions, 

the amount of Indonesia`s foreign 

exchange reserves rose from 

$96.2 billion at the end of 2010 to 

$110.1 billion or the equivalent of 

6.4 months of imports and sovereign 

debt repayments a year later. 

On a quarterly basis, Indonesia`s 

payments balance showed positive 

performance in the first and 

second quarters of 2011 among 

other things because export com- 

Quoting the results of a meeting 

of the bank`s board of governors, 

Difi said the country`s 

balance of payment in the first 

quarter of 2012 was expected to 

record a surplus, though revealing 

a lower trend. 

However, current transactions 

were expected to suffer a deficit, 

along with declining export 

growth, though imports would remain 

high thanks to strong domestic 

demand. 

modity prices were still rising and 

foreign portfolio investments flowing 

in briskly. 

In the third quarter, the payments 

balance showed a deficit , 

especially as a consequence of the 

financial crisis in Europe which 

triggered a reverse flow in foreign 

portfolio investments. Negative 

pressure on the payments balance 

diminished in the fourth quarter 

after foreign portfolio investors returned 

and disbursement of private 

sector foreign loans rose significantly. 

Allthough as a whole, the payments 

balance performed better 

in the fourth quarter, there was 

a deficit in current transactions. 

The deficit of about 0.4% of Gross 

Domestic Product happened because 

imports continued to rise 

on strong domestic demand and 

exports declined on weakened 

world demand for the country`s 

export commodities. 

RI Forex Reserves Reach $112b in January 

The surplus of the first-quarter 

balance of payment would be 

fueled by capital and financial 

transactions owing to foreign direct 

investment (FDI) inflows and 

an investment portfolio which 

were expected to increase as a result 

of strong fundamentals of the 

domestic economy amidst global 

economic uncertainty, Johansyah 

said. Also, the attainment 

of the investment grade was expected 

to strengthen positive sen- 

timent towards the Indonesian 

economy, he said. 

On the domestic side, the central 

bank`s board of governors 

believes the Indonesian economy 

still has strong resistance to the 

global crisis, though it would grow 

at a slower pace amidst the declining 

prospects within the global 

economy. 

He noted that the Indonesian 

economy was projected to expand 

6.5% in the first quarter of 

www.infobanknews.com 

2012. In 2012, domestic economic 

growth was expected to hit the 

lower level of the economic growth 

forecast of 6.3-6.7%. 

The 2012 economic growth 

would be fueled by strong household 

consumption and investment. 

This strong household consumption 

would be driven by high 

purchasing power thanks to the 

government`s effort to control the 

inflation rate, Johansyah said.



The Economy 

super Luxury Apartments still on Demand. Current prices of super luxury apartments in Jakarta are in the range of Rp 26-35 million 

per square meter or Rp 7 billion up to Rp 17 billion per unit. The size of this segment until the end of 2011 is 6%, or about 4,829 units 

from the total supply of 82,000 units of apartments in Jakarta. Super luxury apartments are rich crisis-immune buyers. 

The President Post/Nandi Nanti 

Non-oil/gas Manufacturing 

Industries Grow 6.8% in 2011 

The growth of all 

the non-oil/non-gas 

industrial sectors was 

expected to remain 

high this year. The 

industry minister 

expressed hope the 

growth of the non-oil/ 

gas industries would 

exceed 7% this year. 

Indonesia`s non-oil/gas 

manufacturing industry 

grew 6.8% last year compared 

to 5.1% a year earlier, 

Industry Minister MS 

Hidayat said. 

"No negative growth is recorded 

today. I think 6.8% is the maximum 

average growth of the manufacturing 

industry," he said here 

on Tuesday. 

Data from the Industry Ministry 

show all non-oil/gas industrial 

sectors recorded positive growth 

last year, with the base metal, 

iron and steel industry taking 

the lead with 13.06%, followed by 

food, drink and tobacco industry 

9.19%, textile, leather product 

and footwear industry 7.52%. 

The growth of all the non-oil/ 

non-gas industrial sectors was 

expected to remain high this year. 

Industry Minister MS Hidayat 

No negative growth is 

recorded today. I think 

6.8% is the maximum 

average growth of 

the manufacturing 

industry." 

www.antaranews.com 

The industry minister expressed 

hope the growth of the non-oil/ 

gas industries would exceed 7% 

this year. 

The government would focus on 

encouraging the growth of domestic 

industries, particularly smalland 

medium-sized industries as 

well as supporting industries. 

"What is the most suitable now is 

that if large-sized industries have 

been well established they must 

be connected to supporting in- 

dustries. If we want to build 

an automotive plant it must 

be connected with component 

industries and other industries," 

he said. 

The connectivity between 

large industries and supporting 

industries must be 

applied to all industrial sectors, 

he said. "Only by doing 

so can they grow together," 

he said. He said the government 

would not tolerate any 

large investor which did not 

involve local entrepreneurs 

to support its business activities. 

"They must involve local 

companies. That is my request," 

he said. 

Deputy Chairman of the 

Indonesian Chamber of Commerce 

and Industry (Kadin) 

for Research and Technology 

Bambang Sujagad said the 

government should maintain 

the existing conducive 

business climate to allow the 

growth of non-oil/non-gas 

manufacturing industries 

to remain high. "Wage problems 

must be settled properly, 

otherwise they will affect 

the industrial growth this 

year, particularly the growth 

of labor-intensive industries," 

he said. 

Future Global 100 Initiative: 

Business Platform for Leading Asia Companies 

By Jeannifer Filly Sumayku 

Companies in Asia that are 

looking to expand globally will 

now have a new platform to network 

and learn from their more 

successful counterparts. 

This platform is called Future 

Global 100 Initiative (FG100) and 

aims to bring together corporate 

movers in Asia and globally so 

that smaller Asian companies are 

able to tap on their expertise. 

The FG100 Initiative features 

an initial series of roundtables 

in seven locations, bringing more 

than 300 leaders of corporations 

and governments from around 

the world together to discuss global 

growth issues and define the 

characteristics of a FG100 Company. 

Jakarta is the sixth city that 

has hosted the Future Global 100 

(FG100) Initiative. Singapore was 

the first to host the FG100 Initiative 

roundtable on 4 July last year, 

followed by Mumbai on 4 August 

2011, Shanghai on 7 September 

2011, Kuala Lumpur on 5 Octo- 

ber 2011, Hong Kong on 3 November 

2011 and now Jakarta. 

It is now the exclusive Initiative 

on the Future of a country’s economy, 

business and industry from 

a global and national perspective. 

It is also a recognized milestone 

in international business, establishing 

the world’s first authoritative 

agenda and documented reference 

on the future of the global 

economy, future global markets 

and future global businesses 

what we simply term the Future 

Global Agenda. 

The findings and consensus 

from each roundtable is encapsulated 

in a white paper. The findings 

will be published and distributed 

with policy makers in 

each market to better support the 

growth of the FG100. 

Lionel Lee, Chairman of Platinum 

Circle, said “The strong support 

for the FG100 Initiative from 

industry and government leaders 

around the world reflects the desire 

among them to play a role in 

the making of the Future Global 

Agenda. We want to increase the 

voice of Indonesia in the Initiative 

and Agenda by including more Indonesian 

corporations and the 

government. Some of these corporations 

involved in the FG100 

Initiative are on track to become 

global giants by as early as 2014. 

Together, our business and government 

leaders can have a neutral 

platform to address global issues, 

deliberate and define the 

route forward for the future”. 

Platinum Circle, a leading global 

business group involving corporations 

with annual revenues 

exceeding $100 million, governments 

and intergovernmental organizations, 

is gathering more 

than 350 global and national 

business leaders and government 

representatives from over 35 

countries to address the future of 

the global economy, markets and 

business in 7 cities. Collectively, 

these corporations from more 

than 20 industries/sectors represent 

a combined annual revenue 

exceeding $3 trillion. 

Sam Ang, CEO, South East 

Asia, DHL Global Forwarding, 

said “As ‘Future Global’ companies 

take their products and services 

to the international marketplace, 

they will experience a 

completely different set of logistics 

challenges. This is where DHL 

comes in – with dedicated support 

and innovative supply chain solutions 

customized to meet the specific 

needs of local companies going 

global, DHL is able to support 

these companies to overcome the 

challenges of internationalization.” 

DHL is the Strategic Partner of 

the FG100 initiative, a platform 

the company agrees is ideal for 

building an international community 

of new and potentially 

high-flying companies. Firmly believing 

that these ‘Future Global’ 

companies will form the next generation 

of market leaders, DHL recently 

established a team focused 

on developing and maintaining 

strategic partnerships with such 

companies. 

The growing number of organizations 

participating in this global 

Initiative include the World 

Govt to Optimize Spending 

To Boost Growth: Official 

Coordinating Minister for 

Economic Affairs Hatta Rajasa 

said the government would optimize 

its spending to boost the 

country`s economic growth in 

2012. 

"I think we must admit that 

the Indonesian economy would 

grow more than 6.5% last year if 

the government spending could 

be optimized. We lost 0.1-0.2% 

of the remainder. This is one of 

things we have to improve," he 

said following a coordination 

meeting at his office here on 

Monday. 

The Central Statistics Agency 

(BPS) said earlier in the day 

the Indonesian economy grew 

6.5% last year, fueled by exports 

which grew 6.3%, household 

consumption 2.7%, government 

spending 0.3%, physical 

investment 2.1%, exports 6.3% 

and imports 4.8%. "If the government 

spending could be optimized 

our economy might ex- 

Indonesian consumer business 

and economic conditions 

increased in the fourth quarter 

of 2011 compared to the previous 

quarter, the Central Statistics 

Agency (BPS) said. 

Business tendency index in 

the fourth quarter of 2011 was 

recorded at 106.92, meaning 

that the business condition improved 

with the business players` 

optimism lower than the 

previous quarter, acting BPS 

chief Suryamin said here on 

Monday. 

Finance Minister Agus Martowardojo 

said he firmly believed 

Indonesia`s economic growth in 

2011 would reach 6.5% as assumed 

by the government. 

"We have good reason to believe 

it will be 6.5%. It will show 

our quality in 2011," he said here 

Thursday. Therefore, he said, he 

hoped the growth figure for the 

fourth quarter of 2011 to be announced 

by the Central Bureau 

of Statistics (BPS) soon would 

be the same as for the previous 

three quarters, namely 6.5%. 

After all, he added, in the third 

quarter of 2011 Indonesia was 

not yet directly affected by the 

crisis in Europe. 

About growth in 2012, Agus 

said he hoped it would reach 

6.7% as assumed in the State 

Coordinating Minister for 

Economic Affairs Hatta Rajasa 

pand at a range of 6.6 to 6.7% last 

year. I think both investment and 

exports had played an optimum 

role in the economic growth," Hatta 

said. 

Earlier, the Investment Coordinating 

Board (BKPM) announced 

foreign investment reached 

Rp175.3 trillion, domestic investment 

Rp76 trillion, bringing 

to Rp251.3 trillion the overall 

amount of investment in Indonesia 

last year. 

The business condition improved 

in all sectors, except agricultural, 

husbandry, forestry and 

fishery sectors with business tendency 

index score 98.14, he said. 

"The highest increase in business 

condition was found in the construction 

sector with business 

tendency index score 111.51," he 

said. 

The business condition also improved 

as a result of an increase 

in business income with business 

tendency index score 108.27, use 

Minister Confident 2011 

Growth Reaches 6.5% 

Budget due to efforts to improve 

infrastructure and the bureaucracy. 

"As a consequence of the 

crisis, global growth was lastly 

corrected to 3.3%. We stick to our 

Meanwhile, Indonesia`s exports 

last year were valued at $203.62 

billion. He said investment, exports, 

public consumption and 

government spending remained 

the engine of the domestic economic 

growth last year. 

National Development Planning 

Minister Armida Alisjahbana who 

is also chief of the National Development 

Planning Agency (Bappenas) 

said to boost the economic 

growth the government must encourage 

more investment flows. 

"If we want to see our economy 

growing more than 6.5% 

there must be a special strategy 

to boost investment. The investment 

inflows reached the highest 

record last year. If we want 

our economy to expand 6.7%, investment 

must grow 11%, exports 

10%, and domestic consumption 

more than 5%. Therefore, there 

must be special focus on investment," 

she said. 

BPS: Consumers' Business, 

Economic Conditions Improving 

Trade Organisation, Asian Development 

Bank, DHL, Bin Zayed 

Group, Silah Gulf, Coats, CCIC, 

Melewar Group, The Bank of East 

Asia, Singapore Technologies Engineering, 

PT Ilthabi Rekatama, 

Talent2, SAP, Neusoft Corporation, 

Development Bank of Singapore, 

Texas Instruments, Experian, 

Electrolux, ANZ, Karcher, 

Quintiles, Philips Electronics, Siemens 

Medical Instruments, Di- 


mension Data, Hertz, Mastercard, 

Essar Group, Dalmia Group, Zydus 

Cadila, Tata Motors, Jubilant 

Lifesciences, JSW Ispat Industries, 

Tata Consultancy Services, 

Vendanta Aluminium, Bombay 

Stock Exchange, Lanco Infratech, 

Broad Group, Lenovo, Huawei 

Technologies, China Chamber of 

International Commerce, national 

parliaments and governments 

from Brazil, Mexico, Argentina, 

of production capacity 105.53 and 

average working hours 106.32, he 

said. 

Suryamin predicted the agricultural, 

husbandry, forestry and 

fishery sectors would record the 

highest business tendency index 

score in the first quarter of 2012 

with the service sector recording 

the lowest score. 

He said consumer tendency index 

in the fourth quarter of 2011 

reached 108.44, suggesting an increase 

with consumer`s optimism 

lower than the previous quarter. 

target of 6.7% but we must solve 

our problems regarding infrastructure, 

bureaucracy and corruption," 

he said. 

Meanwhile, economist Chatib 

Basri said the global economic 

recession had had little impact 

on Indonesia because its economy 

was backed up by a vast domestic 

market that had contributed to 

an increase in its Gross Domestic 

Product (GDP). 

"If our economic growth in 2012 

ranges between 5.5- 6.5% and the 

inflation rate is 4-5%, we will still 

have a stable economy," Chatib 

said. He said the increase in 

Indonesia`s GDP was due to an expanding 

middle class which had 

boosted consumption and initiated 

new businesses that helped to 

fuel economic growth. 

From Left to Right: 

Chairman of Platinum Circle Lionel Lee, CEO South East Asia DHL Global Forwarding Sam Ang, and Ilham A. Habibie. 

Peru, Japan, Korea, Hong Kong, 

Malaysia, Singapore, Sri Lanka, 

New Zealand, Qatar, Zambia, UK, 

Portugal, Germany, Serbia, Italy, 

Spain, USA and Canada. 

After Jakarta, the next FG100 

roundtable will be held in Australia 

(April 2012). Another group 

of 50 business and government 

leaders will attend to discuss the 

Future Global Agenda.

A6 


ASEAN 

Rising East Asia 

East Asia, which includes 

South East 

Asian countries (ASE- 

AN), is a key region to 

watch. In terms of economics 

and business, East Asia is 

a very fast moving region—a region 

in transformation, from an 

underdeveloped region on its way 

to become a modernized and dynamic 

region. 

There is in East Asia the rapid 

growth of industrialization and 

the growth of services in many 

key areas, followed by changing 

trade structures and growth of 

trade in manufactures. In addition, 

there is the emergence of regional 

production networks operating 

in various industrial areas. 

New Challenges and 

Opportunities 

It is expected that the region 

will continue to be known as the 

Rising East Asia. This will undoubtedly 

bring new challenges 

but also new economic and business 

opportunities for Indonesia. 

The question is: will Indonesia be 

able to take advantage of the fast 

rising Asia? 

Statistics show that presently 

Indonesia”s position in East Asia 

was the wake-up call for East Asia 

to start up with its economic and 

business actions, and to be counted 

as an active player in the world 

economy. 

Economic Reform—The third 

stage was the !997-98 Asian financial 

crisis which was a setback 

in East Asia’s economic rise. 

But it was followed by the introduction 

of firm economic reform 

measures to cope with the crisis 

and to strengthen the economies 

of the region with success. 

Regional Cooperation—Since 

the years 2000, early steps were 

taken to forge East Asia’s financial 

cooperation followed by the 

strengthening of regional cooperation 

– it was the time of the formation 

of the ASEAN Community 

2009–2015. 

Current Developments—The 

last stage concerns current developments 

in East Asia characterized 

by China’s reforms policies 


The ASEAN-EAST ASIA Linkage 

East Asia has become a dynamic region, with all 

the risks involved. Hence, it becomes urgent for the 

leading countries in the region (particularly in the 

ASEAN+3 formation – ASEAN plus China, Japan 

and South Korea) to come up with a “grand design 

for East Asia”, to chart the road map and the rules 

of the game to be adhered to by all stake-holders. 

By Atmono Suryo 

is rather weak, in particular in 

the area of competition and developing 

intra-East Asia trade and 

production networks. 

Stages of Developments 

Looking into East Asia’s experience 

in the past (especially 

after WW II), we would observe 

that East Asia’s present economic 

achievement has not come out 

of the blue. It went through a process 

which started some decades 

ago. An important point to mention 

is that there has always been 

close linkages between the countries 

in South East Asia (ASEAN) 

and East Asia. 

After World War II, East Asia 

has gone through various stages 

of developments, as follows: 

ASEAN—The formation of 

ASEAN in August 1967 was the 

very beginning of the process of 

change – it was the triggering of 

a new political-security stage for 

the Eastern part of Asia. It is recognized 

by the world community 

that in that regard Indonesia 

played a prominent role. 

Flying Geese Formation—The 

“flying geese formation” of 1965- 

1990, with Japan in the lead, was 

considered as the making of the 

East Asian economic miracle. It 

EAST ASIA TRADE 

East Asia with: Trade Partner 2009 

Total trade, US$B East Asia 1834.5 

Total trade, US$B ASEAN 556.2 

Total trade, US$B SAARC 104.8 

Total trade, US$B PRC 767.2 

Source: Dr. Chia Siow Yue 

Trade share % East Asia 36.07 

Trade share % AEAN 10.94 

Trade share % SAARC 2.06 

Trade share % PRC 15.08 

and its access to WTO. Presently, 

China is taking the lead in East 

Asia’s spectacular rise to become 

the center and the driving force of 

the global economy 

In all those stages ASEAN (with 

Indonesia as a key player) has 

played an important political-economic 

role. ASEAN until today 

has always been at center stage of 

the developments. It should continue 

to play such a role as ASE- 

AN is accepted and respected by 

all concerned in the area. 

East Asian Miracle 

At one time East Asia was 

called “the East Asian Miracle”. In 

the area of economics, the flyinggeese 

era with Japan in the lead 

was the start-up of East Asia’s 

profound emergence in the global 

economic and business arena. 

East Asia’s policies for rapid 

growth in “a Changing World 

Economy” was considered as “the 

making of a miracle” not anticipated 

by the world community. 

This was explained in the 

World Bank policy research report 

of August 1993. The report 

states that from 1965 to 1990, 

23 economies of East Asia already 

grew faster than all other 

regions of the world. Most of 

the achievements were attributed 

by eight economies, namely 

Japan and the four tigers: South 

Korea, Hong Kong, Singapore 

and Taiwan, China. And the 

three NIE’s (newly industrializing 

economies: Indonesia, Malaysia 

and Thailand). East Asia 

has grown three times as fast as 

Latin America and South Asia, 

and five times faster than Sub- 

Sahara Africa. 

The Making of a Miracle 

The question is, what has 

made the eight economies to 

be in a position to gain such 

achievements? In making the 

miracle these countries achieved 

high growth by getting the basics 

right. Investment, rapidly 

growing human capital and 

sound development policies were 

the major ingredients of their basic 

strategy. 

The eight countries are highly 

diverse in natural resources, 

population, culture and economic 

policies. Yet these countries were 

able to stimulate high growth 

in the region. It is a formation of 

economies with similar goals, objectives 

and basic policies, with 

Japan taking the lead. 

Present Challenge 

East Asia is a very large but a 

very diverse region. It is a region 

composed of countries with different 

backgrounds, different cultures 

and different stages of development. 

With such a composition, 

it is important for East Asia to 

have some common views and 

objectives; to have the same basic 

strategy and the right development 

policies; to identify the major 

ingredients needed in support 

of their basic policies. 

East Asia presently continues 

with a number of basic policies 

underpinned by a number 

of supporting elements such as 

trade and export growth policies, 

investment inflows, human development, 

openness to foreign 

technology, infrastructure development 

and promoting specific 

industries. 

The Need for a “Grand Design” 

To achieve another miracle in 

East Asia there seems to be the 

need for another “unifying formation” 

with China taking the 

lead and India on its side but 

with ASEAN still at center stage 

as a unifying force, all flying in 

the same direction with the same 

goals in sight. 

But not much is known where 

Asia will be heading. “Quo Vadis 

East Asia?” is often being asked 

by many observers. 

As economies in the region 

move in formation it does not 

mean that they must be directly 

linked to each other. But it is 

important that they follow similar 

paths and to have the same 

goals and objectives. The market 

forces are the ones which have to 

be on the move to grasp the business 

opportunities open to them, 

but they must know where the region 

is heading to. 

With Asia’s economies growing 

fast and becoming more prosperous, 

interdependence is deepening 

in this part of the world. But 

also countries outside the region 

are increasingly interested to become 

part of East Asia’s dynamic 

growth. 

East Asia has become a dynamic 

region, with all the risks involved. 

Hence, it becomes urgent 

for the leading countries in the region 

(particularly in the ASEAN+3 

formation – ASEAN plus China, 

Japan and South Korea) to come 

up with a “grand design for East 

Asia”, to chart the road map and 

the rules of the game to be adhered 

to by all stake-holders. 

Indonesia (with the support of 

ASEAN) is on the right track by 

announcing the need for a “Dynamic 

Equilibrium” policy. East 

Asia is a dynamic region, but it 

needs peace and prosperity with 

balanced growth to avoid frictions 

and growing disparities which 

are happening today in the global 

economy. 

The writer is former ambassador 

to the EU.



Around Jababeka 

Jababeka Entrusted to 

Build Morotai Island 

PT Jababeka Tbk, Taipei Economic & Trade Officer 

(TETO), and the local government of Morotai have 

officially signed a cooperation agreement regarding 

the development of Morotai Island on mid-February 

in Daruba city, Morotai, North Maluku. 


The cooperation agreement 

between three institutions 

was signed 

by President Director 

of PT Jababeka Tbk 

S.D. Darmono, Representative of 

TETO Andrew Hsia, and Regent 

of Morotai Rusli Sibua. 

Coordinating Minister for Economic 

Affairs M. Hatta Rajasa 

and Vice Chairman of DPR RI 

Taufik Kurniawan witnessed the 

signing. 

With the signing of the agreement, 

PT Jababeka Tbk, a property 

company established in 1989 

with 'Beyond Property" and "City 

Developer" as its taglines, has 

been taking part in building the 

country. Now, it is entrusted to develop 

an area of 50,000 hectares 

in Morotai Island. 

Regional development will be 

done gradually. In the first stage, 

Jababeka will develop 15,000 

acres into a new tourism destination 

in Indonesia. With its natural 

wealth that is still unspoiled, Morotai 

Island is set to attract local 

and foreign tourists. 

A wide range of marine, fishing, 

and tourism potentials in Morotai 

Island are being eyed by Taiwanese 

investors. 

Andrew Hsia stated that in the 

view of Taiwan investors, Morotai 

Island is a very strategic region 

and has the potential to be developed 

into the largest economic 

center in North Maluku and East 

Indonesia. 

Morotai Island, which is one of 

the most eastern islands in Indonesia, 

is targeted, like Batam Island, 

to be a developing area for 

tourism and industry, where both 

industries can synergize in building 

a national and regional economy. 

Supported by its strategic location 

and adequate infrastructure, 

Jababeka believes it will be able to 

attract investors. 

Morotai Island is also recorded 

in world history because it was 

once a battleground between Japan 

against United States and 

Australia (allied forces) during 

World War II. In 1943-1944, there 

were approximately 200,000 allied 

troops on Morotai. 

Numerous objects of World War 

II can now still be seen at Morotai, 

either on the land or deeply 

immersed in the ocean. The Morotai 

local government intends to 

Coordinati ng Minister for Economic Aff airs M. Hatt a Rajasa (second from left ), President Director of PT Jababeka Tbk. S.D. 

Darmono (third from left ), Representati ve of TETO Andrew Hsia (right), and Regent of Morotai Rusli Sibua (left ) during the 

signing ceremony of cooperati on agreement on the development of Morotai, North Maluku. 

nurture memories of World War II 

through the historical tourism activities. 

At the same time, the development 

of Morotai Island also has 

the full support of the central government, 

which considers the development 

of the region as the 

driving force of the local economy 

and a prime source of foreign 

exchange earnings. The support 

is seen with the signing of an inscription 

marking the building of 

Morotai Island, which is one 

of the most eastern islands 

in Indonesia, is targeted, 

like Batam Island, to be a 

developing area for tourism 

and industry, where both 

industries can synergize 

in building a national and 

regional economy. 

Morotai University by Hatta Rajasa. 

For its development, Morotai 

University is in collaboration 

with President University, a private 

university with international 

standards and built by Jababeka. 

Jababeka is convinced that the 

development of quality Morotai 

human resources (HR) will accelerate 

its sustainable development. 

The acceleration of Morotai’s 

development coincides with 

HALMAHERA 

the revival momentum of Morotai 

tourism through Sail Morotai 

2012, themed “Toward a New 

Era of Pacific Regional Economy”, 

which is a continuation of the 

previous three activities, namely 

Sail Bunaken (2009), Sail Banda 

(2010) and Sail Wakatobi-Belitung 

(2011). 

Sail Morotai in 2012 will hold 

several events, including the Operation 

of Social Service and Health, 

Bhakti Kesra Nusantara & BUMN 

MOROTAI 

Peduli Morotai, the Yacht Rally, 

National and International Seminar, 

Lintas Nusantara Remaja Pemuda 

Bahari, Local Region Potential 

Exhibition, RI Anniversary 

Celebration in the Outer Islands, 

Marine Sports, International Research 

Ship Expedition and Outer 

Islands Scientific Expedition, 

Cultural Performance and Tourism 

Attraction, Wawasan Kebangsaan 

and Bela Negara Campaign. 

The peak of the event will be 

held on 15 September 2012.

A8 


Education 

The education system 

in Sampoerna Academy 

not only requires 

students to achieve 

high academic ranking, 

but also personal 

skills and abilities that 

show productivity, 

creativity, leadership and 

entrepreneurship. 

The EducationUSA centers 

in Indonesia, Malaysia, Thailand, 

and Cambodia have 

planned a great tour for you 

to meet with students in their 

countries from March 25 to 

April 8, 2012. In coordination 

with the 2012 East Asia Pacific 

Triennial Conference, the tour 

will take place in Jakarta (Indonesia), 

Surabaya (Indonesia), 

Medan (Indonesia), Kuala 

Lumpur (Malaysia), Penang 

(Malaysia), Chiang Mai (Thailand), 

Bangkok (Thailand), 

and Phnom Penh (Cambodia). 

A college fair will be conducted 

in each of these cities, along 

with school visits where possible, 

and will also include a 

country briefing for tour participants. 

The “2012 Spring EducationUSA 

Fair” will take place at 

the following three cities: 

• JAKARTA 

Sunday, March 25, 2012 

(2:00pm-6:00pm) 

• SURABAYA 

Tuesday, March 27, 2012 

(4:00pm-8:00pm) 

• MEDAN 

Thursday, March 29, 2012 

(4:00pm-8:00pm) 

As part of the widespread 

commitment, EducationUSA 

Fair committee will also arrange 

a Radio Talkshow in a 

major Radio Station within the 

Fairs City: Jakarta, Surabaya 

& Medan. 

To participate in this fair, 

please email to infoeas@aminef.or.id 

and request for the 

registration form. 

EducationUSA is a glob- 

Sampoerna Academy 

has announced that 

it is now opening wider 

opportunities for everyone 

who wishes to 

study in this international-standard 

boarding high school and 

those who wish to be the next 

high-caliber future leaders with 

good moral fiber. 

The payable system is applied 

to answer the demand for better 

quality of education in Indonesia. 

“Payable system students will 

also follow the selection procedures 

just like all scholars based 

on academic achievement, good 

character, and leadership qualities,” 

said Elan Merdy, Senior Director 

of Sampoerna Foundation. 

The education system in Sampoerna 

Academy not only requires 

students to achieve high academic 

ranking, but also personal skills 

and abilities that show productivity, 

creativity, leadership and entrepreneurship. 

It implements boarding school 

system for its students. The advantage 

of the system is that it optimizes 

academic learning, character 

development and social values, 

such as integrity, mutual respect, 

empathy, innovation, courageousness, 

open-minded and nationalism. 

These values are important 

elements needed to build prospective 

future leaders. 

Sampoerna Academy education 

system is supported by a 

strong academic environment 


SAMPOERNA ACADEMY: 

Comprehensive Education for Everyone 

al network of almost 400 advising 

centers supported by the Bureau 

of Educational and Cultural 

Affairs at the U.S. Department of 

State. The Bureau of Educational 

and Cultural Affairs (ECA) fosters 

mutual understanding between 

the United States and other 

countries by promoting personal, 

professional, and institutional ties 

between private citizens and organizations 

in the United States and 

abroad, as well as by presenting 

U.S. history, society, art and culture 

in all of its diversity to overseas 

audiences. The foreign students 

of yesterday are becoming 

the world leaders today. 

EducationUSA centers actively 

that gives access to higher education, 

foreign and domestic, including 

career plan and strong alumni 

network. Sampoerna Academy 

also created relevant education, 

active, and is recognized internationally. 

The system also educates 

students to be responsible 

for their actions and to contribute 

to society. 

Sampoerna Academy is part 

of the realization of Sampoerna 

Foundation’s vision, which was 

launched in 2009. Up to now, the 

program has been implemented 

in four cities, namely Malang (af- 

2012 SPRING 

EducationUSA Fair 

EducationUSA is 

a global network of 

almost 400 advising 

centers supported 

by the Bureau of 

Educational and 

Cultural Affairs at the 

U.S. Department of 

State. 


AMINEF EducationUSA Fair in Surabaya, October, 2011. 

EducationUSA centers 

actively promote U.S. 

higher education around 

the world by offering 

accurate, unbiased, 

comprehensive, objective 

and timely information 

about educational 

institutions in the United 

States and guidance to 

qualified individuals on 

how best to access those 

opportunities. 

In 2011, Sampoerna Academy students achieved remarkable success in the international certification exam conducted by 

the University of Cambridge, IGCSE. Based on the cumulative percentage mark, Sampoerna Academy students managed to 

surpass the results of the world average mark for several subjects: Mathematics, Art & Design, Biology, Chemistry, Information 

Technology and Communication, Additional Mathematics and Physics. 

www.educationusa.or.id 

promote U.S. higher education 

around the world by offering 

accurate, unbiased, comprehensive, 

objective and timely 

information about educational 

institutions in the United 

States and guidance to qualified 

individuals on how best 

to access those opportunities. 

Millions of prospective students 

learn about U.S. study 

opportunities through EducationUSA 

centers each year. 

Centers are staffed by professional 

advisers, many of whom 

have first-hand experience 

having studied in the United 

States themselves, adhere to 

ethical standards, abide by the 

policy to refrain from working 

with commercial recruitment 

agents, and/or have received 

State Department-approved 

training about U.S. higher education 

and the advising process. 

EducationUSA advisers 

work in a variety of host institutions, 

such as Fulbright 

Commissions, IIE offices, 

AMIDEAST offices, American 

Councils, U.S. embassies and 

consulates, bi-national centers, 

universities, and public 

libraries who share a common 

goal: assisting students 

from their country in accessing 

U.S. higher education opportunities. 

filiated with SMAN 10 Malang), 

Palembang (affiliation with SMAN 

South Sumatra), Bali (Sampoerna 

Academy) and Bogor (Sampoerna 

Academy). 

Sampoerna Academy is 

equipped with qualified teachers 

and high quality curriculum, 

which combines national curriculum 

and International General 

Certificate for Secondary Education 

(IGCSE) accredited by the 

University of Cambridge International 

Examinations, and English 

proficiency that enables graduates 

to qualify for entry into any 

The President Post/Heros Barasakti 

leading university in any Englishspeaking 

country. 

In 2011, Sampoerna Academy 

students achieved remarkable 

success in the international certification 

exam conducted by the 

University of Cambridge, IGCSE. 

Based on the cumulative percentage 

mark, Sampoerna Academy 

students managed to surpass the 

results of the world average mark 

for several subjects: Mathematics, 

Art & Design, Biology, Chemistry, 

Information Technology 

and Communication, Additional 

Mathematics and Physics. 

That was the first IGCSE exam 

for Sampoerna Academy and they 

showed very satisfactory results. 

In fact, three students from Sampoerna 

Academy scored 100 (Percentage 

Uniform Mark), which 

means they are the best group in 

the world for the field test. 

Similar to most international 

schools, Sampoerna Academy 

also implements Student Centered 

Learning methodology which encourages 

students to be more active, 

stimulate creativity and create 

fun learning atmosphere for 

both teachers and students. This 

method facilitates students to attain 

the ability of independent 

learning equipped with science 

skills, process skills which support 

life skills. 

Students will undergo academic 

education in class for 8-9 hours 

with 45 minutes duration per lesson. 

Outside the classroom, students 

are encouraged to join student 

clubs activities such as music 

activities, Science Club, English 

Club, Community Service and 

other student clubs which suit 

students’ interest. 

As an extracurricular activity, 

Sampoerna Academy also implements 

the Youth Entepreneurship 

program to help students develop 

their interest and entrepreneurial 

spirit. In this program, students 

are given the opportunity to 

choose any business that they are 

interested in and get the chance 

to have first-hand experience in 

working there. Other supporting 

program is Learning to Live (L2L), 

a program designed to foster the 

Teachers in the 

Sampoerna Academy 

are well-selected persons 

who have passed the 

required qualification 

standards. The main 

requirement is able 

to teach in English 

so that the learning 

materials based on 

IGCSE curriculum can be 

properly delivered. 

sense of curiosity, improve students’ 

confidence, and encourage 

them to become a good citizens. 

There are four pillars embodied in 

L2L program: Well Being, Creativity 

and Art, Community Service 

and Global Citizenship. 

Teachers in the Sampoerna 

Academy are well-selected persons 

who have passed the required 

qualification standards. 

The main requirement is able to 

teach in English so that the learning 

materials based on IGCSE 

curriculum can be properly delivered. 

Currently, some of the 

teachers already have Cambridge 

certification. In the future, all 

Sampoerna Academy’s teachers 

will hold the Cambridge certification 

through professional development 

programs. Teachers also 

participated in educational extracurricular 

activities.

Business B 

BUSINESS BRIEFS 

BNI Wins IFR Asia Award 

State-owned Bank 

Negara Indonesia (BNI) has 

received an award from 

the International Financing 

Review (IFR) Asia for capital 

market category. 

BNI was the only Indonesian bank receiving the award as the other 

recipients of the award were leading financial institutions and banks in 

Asia, the bank said in a press statement released on Thursday. 

The award was given to BNI in recognition of its corporate action 

through rights issue in which the bank managed to raise Rp10.4 trillion in 

funds at the end of 2010, the statement said. It was received by BNI chief 

financial officer Yap Tjay Soen at a function held at The Grand Hyatt Hotel 

in Hong Kong on Thursday. 

Yap said the award was a manifestation of Asian market players` 

appreciation for the bank`s success in choosing strategy and convincing 

the financial market when the bank made the rights issue. “Thanks to 

hard work and close cooperation among all BNI personnel as well as 

support from all external stakeholders including market players` and 

investors` confidence, the rights issue made by BNI has yielded optimum 

fruit,” he said. 

IFR Asia is an influential capital market media which has wide 

circulation with Asia banking and investment community as its audience 

target. 

Pertamina’s Profit Hits 

Record High of Rp24.6 t 

State oil and gas company PT 

Pertamina said its unaudited net profit 

reached an all time high of Rp24.6 

trillion last year compared to Rp16.7 

trillion in 2010. 

“The significant increase in the profit 

was fueled among others by an increase 

in global crude oil prices,” Pertamina 

Director of Investment Planning and 

Risk Management M. Afdal Bahaudin 

said after a hearing with the House 

of Representatives (DPR) Commission VII here on Tuesday. He said the 

increase in unaudited net profit was also driven by oil and gas production 

hike. 

According to data from Pertamina, the company`s income in 2011 

reached Rp553.5 trillion compared to Rp417.9 trillion the year before. 

The 2011 income accounted for 231.45% of the target set by the 

company, he said. 

Earlier, Pertamina President Director Karen Agustiawan said the 

company applied aggressive strategy in the upstream oil and gas industry 

and profit strategy in the downstream oil and gas industry. 

Pertamina is planning to spend Rp52.8 trillion on investment this year. 

Nearly 80% of the funds will be used to develop the upstream oil and gas 

industry and 20% for the downstream oil and gas industry. The company 

is expected to produce 532,700 barrels equivalent to oil per day (boed), 

up from the realization of 465,300 boed. 

Baturaja to Make 

IPO of Shares in Q3 

State cement maker PT Semen Baturaja plans to make an initial public 

offering of its shares in the third quarter of 2012. 

“The number of shares to be floated is still being discussed. But it 

may be about 30% of our shares. We will try to make the IPO in the third 

quarter, the sooner the better,” PT Semen Baturaja President Director 

Pamudji Raharjo said on the sidelines of a meeting between 141 boards 

of directors and commissioners of state-owned companies and the State 

Audit Board (BPK) here on Tuesday. 

PT Semen Baturaja was in the process of appointing stock issue 

underwriters, he said. Proceeds from the IPO would be used to build 

a new plant to increase the company`s production capacity, he said, 

without elaborating on the amount of funds the company would receive 

from the IPO. 

He said the company would need around Rp2.5 trillion in funds this 

year to build a new plant in South Sumatra, among others. “The new plant 

will have an annual production capacity of 1.5 million tons. Preparations 

for the construction of the plant will be started next year and the plant 

will hopefully start operating in 2015,” he said. 

With the operation of the new plant, the total production capacity of 

the cement maker would increase to 3.5 million tons per year in 2014, he 

said. The company has set the target of cement production for 2012 at 

1.3 million tons compared to 1.25 million tons last year. 




HIPMI Endorses Esemka, 

Plans to Open 33 Outlets 

HIPMI wanted to invest in the Esemka car by 

setting up the dealerships across Indonesia. To 

realize its plan, the association would use its 

nation-wide network. 

Plans to mass-produce 

the studentmade 

Kiat Esemka 

car has received a 

thumbs-up from the 

Association of Young 

Indonesian Businessmen (HIPMI) 

as they prepare for the opening of 

33 dealerships across the country 

this year. 

The Kiat Esemka refers to the 

SUV assembled by students at 

the state vocational high school 

(SMKN 2) in Solo, in cooperation 

with the owner of KIAT auto body 

shop in Klaten, both in Central 

Java. The students` achievement 

gained much attention after Solo 

Mayor Joko Widodo told the media 

he had acquired one Kiat Esemka 

and would use it as his official car. 

Nearly 80% of the materials and 

components used in the assembly 

of the 1,500cc vehicle were locally 

manufactured, while only 20% of 

the parts were imported. 

Jokowi, as the mayor is popularly 

called, said the Kiat Esemka 

car could be produced en 

masse this year at a total investment 

of Rp90 billion. “We will develop 

the Esemka car as a smallholder 

industry. If all the permits 

have been secured, we will only 

need Rp50 billion in investment 

to expand the plant and buy more 

equipment, and another Rp40 billion 

to finance its operating expenses,” 

he said after attending a 

hearing at the House of Representatives 

Commission VI in Jakarta 

recently. 

To date, seven local and national 

investors have expressed keen 

interest in investing in the mass 

production of the Kiat Esemka 

car, he said. “We give a chance to 

both local and national investors. 

We will first choose which of the 

interested investors is the best,” 

he said. 

The mass production of the 

car made by PT Solo Manufaktur 

Kreasi and Solo Technopark 

would begin on a small scale and 

only after the car passes emission 

and road-worthiness tests and receives 

an identification registration 

number from the authorized 

agency. 

“If all matters related to the licensing 

could be resolved in February 

and March, we can produce 

200 to 300 units,” he said, noting 

that nearly 200 to 300 units 

of the Kiat Esemka car could be 

produced per month. 

HIPMI chairman Raja Sapta 

Oktohari recently said that 

the association was preparing to 

open 33 dealerships to sell the 

www.matanews.com 

HIPMI chairman Raja Sapta Oktohari 

Our target for 2012 is 

opening one Esemka 

car dealership in each 

of Indonesia`s 33 

provinces.” 

cars across the country this year. 

“Our target for 2012 is opening 

one Esemka car dealership in 

each of Indonesia`s 33 provinces,” 

he said. 

He added that HIPMI wanted to 

invest in the Esemka car by setting 

up the dealerships across Indonesia. 

To realize its plan, the 

association would use its nationwide 

network. “We will empower 

the networks of our members residing 

in all 33 provinces.” 

The association`s aim in opening 

the dealership was to help 

maintain consistent standards 

in the Esemka car`s production 

in terms of after-sales service, repairs, 

and availability of spare 

parts. “We hope the quality of the 

home-made car will always be 

maintained beyond the moment 

it is sold,” Raja said, adding he 

still did not know how much money 

will be needed to open the 33 

dealerships. 

He said HIPMI`s initiative was 

a reflection of its appreciation for 

a product made entirely in the 

spirit of the nation reaching economic 

independence. “We want 

the euphoria of the Esemka car 

making achievement not to be 

just momentary, but to continue,” 

he said. HIPMI also wanted to encourage 

all elements of the community, 

young businessmen in 

particular, to become enthusiastic 

about domestic autos. 

Since the first model of the car 

was launched a few months ago, 

orders for the low-cost auto have 

poured in and now reached about 

5,000 units, Jokowi said. The orders 

include 20 units by Commander 

of the Army`s Strategic 

Reserve Command (Kostrad), Lt. 

Gen. Azmyn Yusri Nasution. 

“We hope the order for the 20 

units of the car could be met by 

March 6, 2012. At least some of 

them, though not all, could be delivered 

during the commemoration 

of the Kostrad`s anniversary 

on that date,” he said when inspecting 

the car`s assembly plant 

in Solo early this month. 

Jokowi, who claimed to be the 

brand ambassador for the Esem- 

MONEY TRANSFER SERvICE 

The public’s high demand for 

fast money transfer service 

has made the number of 

remittance companies rising. 

Remittance companies are 

required to be Indonesian legal 

entities and must obtain a 

license from the Central Bank 

of Indonesia. 


ka car promotion, said all orders 

for Kiat Esemka car would be met 

in stages, according to the list of 

orders. Despite the influx of orders, 

the Kiat Esemka car manufacturer 

would not find it hard 

to meet them, he said. “The supply 

of components is enough and 

even larger than what is needed,” 

he said. 

The components for the Kiat Esemka 

car are produced by small 

and medium scale industries in 

several parts of the country, including 

Gombong, Magelang, 

Tegal, Purbalingga and Jakarta. 

Further, Representatives of the 

government, state-owned companies 

and the House of Representatives 

Commission VI at the hearing 

threw their weight behind the 

mass production of the Esemka 

car. “Political support from all 

parties is needed to develop a national 

car like this. We will find 

it hard to struggle alone,” Deputy 

Chairman of the House Commission 

VI Aria Bima said at the 

hearing. 

Deputy State Enterprises Minister 

for Strategic and Manufacturing 

Industries, Inranda Laksanawan, 

said the government 

was ready to support the development 

of a national car, including 

the Kiat Esemka car. Also, several 

state companies, such as PT Inka, 

PT Dirgantara Indonesia and PT 

Pindad, joined in supporting the 

development of Kiat Esemka car 

by providing training facilities for 

its future employees.

B2 


Business 

The number of stateowned 

enterprises 

(BUMNs) in the country 

is to be cut by about 

20 so that only 120 will 

be left this year, State 

Enterprises Minister 

Dahlan Iskan said here 

Wednesday. 

Speaking to reporters 

after attending a 

limited cabinet meeting 

at the presidential 

office to discuss 

efforts to streamline 

state-owned companies, Dahlan 

said “their number will be reduced 

by at least 20.” The reduction 

would be effected mainly by 

merging companies engaged in 

the same line of business, he said. 

For example, PT Perkebunan Nusantara 

(PTPN), which now consists 

of 15 separate business entities, 

would be united into a single 

state-owned holding company. 

BUMNs engaged in forestry 

would also be merged into one 

state-owned company, he said, 

adding he hoped the process- 

Minister to Scrap 

20 State-owned Firms 

es could be completed in one 

month`s time. The state enterprises 

ministry had already finished 

its preparations to conduct 

the mergers but the various ministries 

technically involved in the 

BUMNs` operations might need 

more time, he said. 

At Wednesday`s limited cabinet 

meeting, President Susilo Bambang 

Yudhoyono had emphasized 

the need to conduct the streamlining 

carefully, gradually and only 

to companies that were ready for 

it. He also asked that the streamlining 

effort be made through the 

most appropriate mechanism and 

not necessarily through mergers 

or acquisitions only. 

Five State-owned Firms To Go 

Public in 2012 

Chief economic minister Hatta 

Rajasa said five state-owned 

companies were ready to go public 

this year. “Out of nine proposed 

and after being discussed five 

would conduct an IPO and right 

issue with some notes,” he said after 

a coordination meeting to discuss 

privatization of state-owned 

companies here on Tuesday. 

Hatta said the five state-owned 

companies to go public are PT Industri 

Telekomunikasi Indonesia, 

PT Industri Sandang Nusantara, 

PT Industri Gelas, PT Semen 

Baturaja and PT Bank Tabungan 

Negara. 

He said PT Industri Telekomunikasi 

Indonesia has been agreed 

to issue new shares through stra- 


tegic sales or acquisition of cooperation 

partners. “We hope this, 

along with our other strategic 

state-owned companies, will help 

develop our national telecommunication 

industry,” he said. 

Hatta said PT Industri Sandang 

Nusantara and PT Industri 

Gelas have also been agreed 

to sell shares through strategic 

sales. “Strategic sales are prioritized 

for state-owned companies 

that could manage the assets 

of PT Industri Sandang and 

PT Industri Gelas well and it will 

also be linked to a state-owned 

company`s subsidiary considered 

right for the acquisition scheme,” 

he said. 

He said PT Bank Tabungan 

Negara is also agreed to conduct 

a right issue of between 12 and 

24% shares. Hatta said the government 

postponed the offering of 

shares of PT Perkebunan Nusantara 

(PTPN) VII because an IPO 

would only be agreed after the 

holding company is already running. 

“The essence is PTPN will 

offer maximally 30% shares after 

the holding company is running,” 

he said. 

He said the government has also 

decided to postpone the IPO of PT 

Pegadaian because the pawnshop 

operator still has strong capital 

structure. “We have other considerations 

in view of the business. 

There are things that the government 

is concerned of. The company 

does not only have a mission of 

making profit but also other mission 

that we have to pay attention 

to. So we will postpone it until the 

right solution is found,” he said. 

With regard to PT Kimia Farma, 

he said it conduct a right issue 

after conducting a swap with 

PT Indo Farma so that the value 

of its shares would be stronger. 

“There are shares that they can 

swap based on our recommendations. 

Only after that a right issue 

could be done. In essence we 

agree it may conduct a right issue 

but only after a swap is done,” he 

said. 

Hatta said there were now two 

of three state-owned companies 

that would soon go public. “The 

President wishes more stateowned 

companies could go public 

so that the capital market would 

be motivated and we will find several 

state-owned companies that 

are feasible to conduct an IPO,” he 

said. 

Transnusa to Open Routes to Dili, Darwin 

PT Transnusa Air Services will 

soon open routes from Kupang in 

East Nusa Tenggara to Dili in East 

Timor, and from Kupang to Darwin, 

Australia, a company executive 

said. 

“To serve the Kupang-Dili and 

Kupang-Darwin routes starting 

in the fourth quarter of this year, 

we will purchase six Fokker aircraft,” 

Budhy Syahroni Karsidin, 

the airline’s business development 

manager, said here Saturday. 

Since getting the air operator 

certificate (AOC) in the past year 

the government requires Transnusa 

to operate at least ten units 

of aircraft for flight routes in the 

eastern region of Indonesia. Until 

now Transnusa has four types 

of Fokker and two British Aero 

Space. 

“We use this AOC to welcome 

the competition in air transport 

business in ASEAN Open Sky,” 

Budhy noted. 

The business license states has 

37 air routes in the eastern region 

of Indonesia. Up to now the airlines 

based in Kupang is already 

serving 50 percent of its routes as 

PT. ACE INA Insurance 

is part of the ACE Group 

of Companies, one of the 

world’s largest providers of 

property and casualty insurance 

and reinsurance. 

Since its commencement in 

1985, the ACE Group has 

focused on building global 

operations diversified by 

line of business and geography. 

It offers specialty products 

and services to clients 

in over 50 countries around 

the world. 

The ACE Group has 

grown rapidly by building 

long-term partnerships with 

its brokers, corporate clients 

and consumers in each 

of the world’s major insurance 

markets. In Indonesia, 

PT. ACE INA Insurance addresses 

the needs of the corporate, 

commercial and consumer 

segments through a 

wide range of products and 

mentioned in the business license 

especially in East Nusa Tenggara 

such as Flores, Ruteng, Labuan 

Bajo (Komodo Island), Maumere, 

Waingapu and Alor. 

services which includes Property, 

Casualty, Marine Cargo, Financial 

Lines, Energy & Utilities, 

Accident & Health and Commercial 

lines. Along with other ACE 

offices in the Asia Pacific region, 

PT. ACE INA Insurance has been 

growing rapidly since its inception 

in 1999. 

With a product offering as diverse 

as PT. ACE INA Insurance’s 

customer base, the company 

prides itself on its ability to meet 

varying client needs. PT. ACE INA 

Insurance creates and stands by 

its insurance for businesses and 

consumers. 

According to Peter van Ratingen, 

President Director of PT. ACE 

INA Insurance, one of the challenges 

for insurance companies in 

Indonesia, particularly in the area 

of microinsurance, is the distribution 

of insurance to the people because 

the cost of distribution can 

be more than the cost of insurance 

itself. 

State Enterprises Minister Dahlan Iskan 

The reduction would 

be effected mainly by 

merging companies 

engaged in the same 

line of business.” 

Regarding the routes which are 

often constrained by the weather, 

TransNusa recruited an expert 

from the Netherlands, Mike Binen, 

who has had experience for 25 

ACE Insurance: 

Leading the Domestic Insurance Industry 

Peter van Rati ngen, President Director 

of PT. ACE INA Insurance. 

We are working closely 

with our clients to 

understand their risk 

management needs; 

adding value with 

our underwriting 

expertise and creating 

products tailored to the 

Indonesian market,” 

www.airnieuws.nl 

Transnusa was established in August 2005 to serve fl ights in East Nusa Tenggara by operati ng chartered planes owned by 

Trigana and Pelita Air Services. 


years at Fokker factory, as Technical 

Director of TransNusa. “The 

purpose of recruiting an expert 

from the Netherlands is because 

we give priority to safety, securi- 

“ACE’s primary goal is to 

continue developing its position 

as a trustworthy brand 

which fosters consumer 

confidence although it has 

been around for more than 

40 years. We are working 

closely with our clients to 

understand their risk management 

needs; adding value 

with our underwriting 

expertise and creating products 

tailored to the Indonesian 

market,” he said. 

“We strongly believe in the 

growth potential of Indonesia. 

The increasingly stable 

environment and steady 

growth of Indonesia give us 

cause for optimism,” Peter 

added. 

Currently, ACE Indonesia 

has 100 full-time permanent 

employees and 200 

telemarketers and call-center 

staff. 

ty and passenger comfort,” Budhy 

explained. 

Since December 2011, TransNusa 

also has opened a direct flight 

route from Kupang to Makassar. 

“If during this the passengers 

from Kupang destination to 

Makassar (South Sulawesi) must 

first transit in Denpasar (Bali) or 

Surabaya (East Java) then we can 

do a direct flight from Kupang to 

Makassar,” he said. 

Meanwhile, for the route flight 

from Kupang to the big cities in 

Java, TransNusa is working with 

Sriwijaya Air. Transnusa was established 

in August 2005 to serve 

flights in East Nusa Tenggara 

by operating chartered planes 

owned by Trigana and Pelita Air 

Services. 

In 2007 TransNusa was trusted 

to handle ticket reservations of 

Mandala Air, while in 2009-2010, 

Transnusa took in five airlines, 

namely Riau Air, Avia Star, Mandala, 

Sriwijaya and Indonesia Air 

Transport. Transnusa daily flight 

routes also serve Denpasar-Mataram, 

Denpasar-Kupang and 

Makassar-Kupang. 

Bank Mandiri 

Leads Syndicated 

Loans to Antam 

A consortium of financial 

institutions led by stateowned 

Bank Mandiri has 

agreed to extend $650 million 

in syndicated loans to 

mining company PT Aneka 

Tambang Tbk (Antam) under 

a project finance scheme. 

PT Antam is expected to 

use the loans to build the 

fourth unit of its feronickel 

processing plants with an 

annual production capacity 

of 27 thousand tons of nickel 

in East Halmahera, North 

Maluku province. 

Bank Mandiri Vice President 

Director Riswinandi in 

his capacity as the coordinator 

of the consortium signed 

a mandate letter for the financing 

of the project with 

Antam President Director Alwinsyah 

Lubis. The letter was 

later signed by representatives 

of other members of the 

consortium, namely Bank 

Rakyat Indonesia, Standard 

Chartered Bank and Sumitomo 

Mitsui Banking Corporation 

at the Antam building 

BTN Plans for 

Rights Issue 

State-owned Bank Tabungan 

Negara (BTN) is processing 

a plan to conduct a rights 

issue of its shares this year, 

its president director Iqbal 

Latanro said. 

“In relation to the plan for 

rights issue we still have to 

take a number of corporate 

actions, including holding 

another coordination meeting 

with the State Enterprises 

Ministry,” he said on the 

sidelines of a function marking 

the bank`s 62nd anniversary 

here on Sunday. 

here on Tuesday. 

Riswandi said Bank 

Mandiri`s support for the 

project would hopefully assist 

Antam in increasing production 

capacity to meet the 

rising domestic need for nickel 

due to the steady growth of 

national manufacturing industries. 

“Mining is one of 

the sectors which give the 

greatest contribution to the 

national economic growth. 

Therefore, Bank Mandiri has 

committed itself to supporting 

any effort to strengthen 

the sector,” he said. 

In 2011 Antam issued the 

first phase of senior bonds 

worth Rp3 trillion for routine 

investment and business expansion. 

The company appointed 

Mandiri Sekuritas, 

Deutche Securities Indonesia 

and Standard Chartered 

Securities as bond issue underwriters. 

Bank Mandiri, 

along with BRI, Standchard 

and Deutsche Bank acted as 

standby buyers for the bonds 

in question. 

The bank had yet to appoint 

financial adviser to conduct 

the rights issue, he said. 

“Only after we have received 

the green light from the government 

will we ask for approval 

from the House of 

Representatives, after which 

we can discuss the technical 

matters,” he said. 

He said rights issue was 

part of the bank`s strategic 

plan to increase the amount 

of credits channeled. “We will 

use proceeds from the rights 

issue to strengthen capital in 

distributing credits. We predict 

the rights issue will take 

place early in the second 

quarter of 2012,” he said.


February 12, 2012 B3 

Investment 

“Taiwan Investment in 

Indonesia Improving” 

Investment relations 

between Taiwan and 

Indonesia have shown 

an improvement within 

the last two years but 

continue to be enhanced 

while they have already 

led to a trade surplus in 

Indonesia`s favor. 

According to the data 

obtained from the 

Taipei Economic and 

Trade Office (TETO) 

in Indonesia the trade 

surplus for Indonesia 

had reached 106.67% by July 

2011. The figure was obtained after 

in 2009 the surplus reached 

$1.9 billion, then the figure increased 

in 2010 to $1.5 billion or 

up 22.83%. 

Taiwan`s representative to Indonesia 

Andrew Hsia said in an 

interview earlier this week with 

ANTARA that Indonesia is a 

“wonderful destination for investment” 

in terms of resources and 

the huge domestic market. Hsia 

claimed that Indonesia is now experiencing 

surplus from Taiwan, 

because Taiwan is buying a lot 

of natural resources such as gas 

and coal. 

Due to its lack of natural resources, 

Taiwan had to purchase 

several top commodities from Indonesia 

which is considered as 

having abundant resources. 

“Indonesia`s economy is perform- 

ing so well, everybody knows that, 

so we are one of the countries interested 

in investing more in Indonesia,” 

said Hsia. 

Improving Trade and Investment 

Prospects 

Based on the data, Indonesian 

exports to Taiwan had also shown 

an improvement since 2009 valued 

at $5.1 billion then increased 

to $6.0 billion in 2010 and by July 

2011 the figure reached $4.3 billion. 

Meanwhile, Taiwan exports 

to Indonesia also improved from 

2009 valued $3.2 billion, then increased 

to $4.5 billion in 2010 and 

by July 2011 the figure reached 

$3.0 billion. The total trade value 

between Indonesia and Taiwan 

also increased from $8.4 billion in 

2009 to $10.5 billion in 2010, and 

by July 2011 it was recorded at 

$7.3 billion. 

According to the data from the 

Indonesian investment coordinating 

board (BKPM) , by March 2011, 

Taiwan`s total investment had 

reached $14.0 billion. For 2011, 

Taiwan`s investment amounted 

to $5.11 million, the figure has 

shown an increase by 120% compared 

to the same period in the 

previous year of 2010. Taiwan 

also considered to be Indonesia`s 

number 9 foreign direct investment 

sources creating about one 

million job opportunity in Indonesia. 

Taiwanese companies now 

operating in Indonesia are namely 

Pao-chen Shoes co., ACER, Bank 

Chinatrust, President Food, PT 

Indo Tai-Chen Textile, Evergreen 

group and Na Ya Plastic Corp. 

Taiwan`s representative to Indonesia 

Andrew Hsia 

Indonesia`s economy 

is performing so well, 

everybody knows that, 

so we are one of the 

countries interested 

in investing more in 

Indonesia.” 

Indonesian Migrant Workers in 

Taiwan 

In the manpower field, Taiwan 

and Indonesia on January 24, 

2001 signed an MoU on placement 

of manpower which resulted 

in an increasing number of Indonesian 

migrant workers going 

to Taiwan. By August 2011, some 

168,000 Indonesian migrant 

workers were working in Taiwan. 

The figure was the largest among 

Southeast Asian countries. 

PT Toyota Astra Motor (TAM), will soon realize its plan to beef up its investment in Indonesia by about Rp5 trillion. 


Toyota to Boost Investment in RI 

Toyota Motor Corp , through 

PT Toyota Astra Motor (TAM), will 

soon realize its plan to beef up its 

investment in Indonesia by about 

Rp5 trillion, the country`s top investment 

official said. 

“The company`s plan is a manifestation 

of its commitment to increase 

its production capacity in 

Indonesia,” Gita Wiryawan, head 

of the Capital Investment Coordinating 

Agency (BKPM), said here 

Tuesday. 

Gita who is concurrently the 

trade minister said he and Industry 

Minister MS Hidayat 

would on Wednesday meet the 

vice chairman of Toyota Corporation, 

Katsuaki Watanabe. 

At the meeting they would discuss 

Toyota`s plan to increase 

its investment and production 

capacity and export of the 

company`s products. “They will 

not only supply the domestic 

market which continues to wid- 

en but also overseas markets,” he 

said. 

Toyota would initially expand 

the production capacity of its 

plant in Karawang, West Java, 

although it also wants to build a 

plant outside Java. “The additional 

investment is expected not only 

to result in hike in car production 

but also to stimulate industries 

producing automotive components,” 

Gita said. 

Spanish Company Eyes 

Rani Island’s Minerals 

Spanish company Repsol is interested 

in exploring the mineral 

potentials of Rani island in Aururi 

Islands subdistrict, Supirori district, 

Papua province, a local official 

said here Saturday. 

Rani island is one of three regions 

in Papua that had drawn the 

interest of the Spanish mining investor, 

a special staff for communications 

and development of Supiori 

district Yohanes Koroh said. 

He said the interest of the Spanish 

investor in Rani island`s minerral 

deposits was expressed by its representative 

in Indonesia, Rommy, 

and Papua Promotion House official 

Wekners Chips to Supirori 

District Chief Fredrick Menufandu 

and the Secretary of Supiori 

district Dairi Manulang. 

“The interest of the Spanish investor 

in exploring Rani island`s 

mineral resources was positively 

responded to by the Supiori district 

administration which was 

ready to give it a licensing recommendation,” 

Yohanes Koroh 

said. According to the Spanish 

company`s representative, Supiori 

district administration`s readiness 

to give a licensing was the 

fastest in all districts/cities in Indonesia. 

Yohenes Koroh said although 

Repsol would initially only explore 

Rani Island`s` mineral resources, 

the activity was expected 

to improve the local people`s welfare. 

To benefit from its natural 

resources, Supiori district needed 

www.kompas.com 

both domestic and foreign companies 

to invest in projects to develop 

them, he said. 

Supiori District Chief Fredrick 

Menufandu`s program to invite 

foreign investors to develop the 

reggion`s marine potential was 

expected to get support from various 

elements of the community, 

Yohanes Koroh said, adding that 

besides the Spanish investor the 

administration had also received 

offers from foreign businessmen 

to invest in a mineral water project. 

Supiori district was formerly 

part of Biak Numfor district and 

Sorindiweri is now its regional 

capital. 

Within two years, the number 

of Indonesian migrant workers increased 

by 35,000 from 140,000 

in 2009 to 175,000 in 2011. Approximately 

40% of the migrant 

workers in Taiwan are Indonesian 

and some of them working as 

fishermen. According to Hsia, Indonesian 

migrant workers in Taiwan 

are divided in two categories, 

namely care givers and fishermen. 

Most of the care givers were 

very happy with the way they are 

treated, enjoying Taiwanese minimum 

wages, covered by national 

health insurance so they can see 

doctors free of charge, and have 

a very good working time so they 

can spend time with their families, 

said Hsia. 

Indonesian migrant workers 

in Taiwan were the third largest 

group currency makers to Indonesia 

after Saudi Arabia and Malaysia, 

where Indonesian migrant 

workers are representing 45% of 

migrant workers in Taiwan apart 

from Malaysia, Philippines, Vietnam 

and Thailand. 

Hsia said the government of 

Taiwan is looking forward to discussing 

the matter with the Indonesian 

Maritime and Fisheries 

Ministry to sign an agreement 

for protection of Indonesian fishing 

crews who are working on 

Taiwanese fishing boats. “This 

MoU is important to provide proper 

training, regular employment 

channels which can lead to lower 

wages due to improper legal documents. 

Then the protection would 

be better,” he said. 

Indonesia’s Investment Grade 

Interests Japanese Investors 

Bank Indonesia (BI) said 

Indonesia`s investment grade 

status has attracted the interest 

of Japanese investors. 

“The Japanese investors 

believed that the Indonesian 

economy is better than 

those of the Philippines and 

Vietnam,” head of BI`s public 

relations division Difi A 

Djohansyah said at the BI office 

in Jakarta, Wednesday. 

But he added the investment 

grade status only recently obtained 

from two rating insti- 

Investment is likely to remain 

the main engine of 

Indonesia`s economic growth 

in 2012 which is projected to 

reach 6.7%, a Finance Ministry 

official said. 

“Our focus in 2012 will 

be on spurring investment 

growth, either in the private 

or public sector by optimizing 

capital spending,” acting 

chief of the ministry`s fiscal 

policy board Bambang Brodjonegoro 

said here on Monday. 

To encourage private investment, 

the government 

must maintain the conducive 

investment climate by 

improving industrial relations 

between employers and 

employees, assisting inves- 

tutions, namely Moody`s Investors 

Service and Fitch Ratings, 

did not automatically produced 

foreign funds in Indonesia. 

“The investment grade status 

did not automatically increase 

foreign funds. But at least it increased 

our self-confidence,” Difi 

said. Difi said some other aspects 

have affected the interest of 

the Japanese investors, especially 

those improving the Indonesian 

economy. “Specifically, the impact 

of Indonesia`s investment grade is 

still unknown. Still depending on 

the confidence of foreign investors 

to the global economic situation,” 

Difi said. 

Difi added that the interest of 

the foreign investors is also dependent 

on the increasing Indonesian 

economic fundamentals 

which have now reached the level 

of the BRIC member countries 

(Brazil, Russia, India and China.) 

“Actually prior to the global crisis, 

Indonesia already deserved to 

enjoy a investment grade status,” 

Difi said. 

Investment Expected to 

Remain Growth Engine in 2012 

tors in clearing land and ensuring 

business certainty, he said. 

“What we must pay attention 

to are industrial relations, investment 

climate in general, and legal 

certainty from local governments. 

If investment permits have been 

issued, then local governments 

should not do something harmful,” 

he said. 

He said the government must 

take advantage of the momentum 

of investment grade to attract 

more investment. In addition, he 

said the government would make 

an optimum effort to grant fiscal 

incentives to investors wishing to 

engage in the downstream industry 

and provide fiscal stimulus to 

boost the economy. Investment 

would play a greater role in boosting 

the economic growth in 2012 

now that the country`s exports 

were expected to fall this year, he 

said. The other engine of the economic 

growth in 2012 would be 

domestic consumption, he said. 


said earlier in the day 

the domestic economic growth 

in 2011 was mostly driven by investment 

which grew by 8.0%. 

Therefore, he said the government 

would continue to increase investment 

growth up to around 10% 

to achieve the target of economic 

growth target of 6.7% for 2012. 

The minister said “it is more important 

for us now to ensure that 

government can increase private 

investment in view of its role in the 

economy.” The Central Statistics 

Agency (BPS) reported on Monday 

the Indonesian economy expanded 

6.5% in 2011.

B4 


Pictorial Events 

The inaugural run of the PEC–NUS Key Principles 

and Experience in infrastructure practice and 

policies in emerging markets workshop took place 

on the NUS campus at the Mochtar Riady Building, 

NUS Business School, 2–3 February 2012. 

The focus of the workshop 

was to aid in developing 

public-private 

sector cooperation in 

infrastructure for affluent 

members of the Indonesian 

business community and prominent 

government officials from 

the prestigious President Executive 

Club. 

The high-level two–day workshop 

was attended by 19 members 

from PEC and was aptly given 

its due recognition by one of 

Singapore’s ex-ministers and current 

chairman of Temasek Holdings, 

Mr. S. Dhanabalan, who 

opened the workshop. 

The workshop itself was designed 

and facilitated by Dr. Marleen 

Dieleman, and Dr. Ivan Png, 

who left no stone unturned in ensuring 

that the team of speakers 

and facilitators engaged were experts 

in their fields, came largely 

from multi-disciplinary backgrounds 

with current know-how 

and vast industry experience, to 

complement their lectures as well 

as to engage with the participants 

in a highly interactive and open 

sharing of views, ideas and experiences. 

Global and Asia-Pacific business 

examples and case studies 

from various industries were used 

to create awareness, inspire and 

challenge participants to think 

strategically and out-of-the-box 

with regards to strengthening and 

enhancing the participant’s views 

on developing public-private sector 

cooperation in infrastructure. 

The topics covered included private 

sector participation in infrastructure 

development (the 

Brazilian experience), energy, developing 

quality infrastructure, 

de-bottlenecking, key imperatives 


PEC–NUS Key Principles and Experience 

in Infrastructure Practice and Policies in 

Emerging Markets Workshop 

for Indonesia in the financing of 

infrastructure projects, winning 

infrastructure project developments, 

optimizing funding options 

and funding successful implementation 

and the importance 

of institutions & governance. 

The presence of a conducive 

class-room environment, coupled 

with the workshop style design of 

the sessions, complete with panel 

discussions, allowed for the participants 

to engage in a free, unobtrusive 

manner that helped accelerate 

and achieve their main 

purpose of learning from, and 

sharing their best practices and 

experiences with, each other as 

well as from the facilitators. 

The panelists themselves consisted 

of senior management 

who came from companies/sectors 

such as Ministry of Finance, 

Open Net, Singapore Investment 

Development Corporation, Japan 

Bank for International Cooperation, 

Changi Airport International, 

PWC, KPMG & HSBC. 

The workshop was deemed a 

success and participants gained 

useful insights and take-aways 

on the various strategic & conceptual 

frameworks, which they 

hoped to utilize and implement 

in their businesses/government 

functions, or respective business 

unit strategy upon their return. 

The high-level two–day workshop was attended 

by 19 members from PEC and was aptly given its 

due recognition by one of Singapore’s ex-ministers 

and current chairman of Temasek Holdings, Mr. S. 

Dhanabalan, who opened the workshop. 


The event was 

participated by 

national business 

leaders, among others 

SD Darmono, Paulus 

Bambang WS, Nur 

Pamudji, RJ Lino, 

Tonny Warsono, Cipto 

Pramono, Utama 

Gondokusumo, 

Danny Rusli Utama, 

Ismanto Puspiworoko, 

Cristianto Wibisono, 

Djefri Cantono, Justin 

Colling, Dessy Aryani, 

Edy Korompis.



The Launch of THE REPORT Indonesia 2012 

Oxford Business Group launched a review of 

Indonesia Economy 2012 at The Four Seasons 

Jakarta. The launching was done by Minister 

of Trade Gita Wirjawan and attended by among 

others businessmen Peter F. Gontha, Paulius 

Kuncinas, Andrew Jeffrey and professionals. 


IABC President’s Golf Day 

ICCC Biztro at 

Mercantile Athletic Club 

ICCC (Indonesia Canada Chambers of Commerce) held ‘Biztro’ business networking 

event at Mercantile Athletic Club, Jakarta. The event was attended by Alan Merten, 

President of ICCC (President PT. AJ Manulife Indonesia), Gary Plant, secretary general 

of ICCC, Robin Martin (Talisman), and other prominent figures. The event was sponsored 

by Talisman Energy. 

Next ICCC BIZTRO will be held on Thursday, March 15, 2012 06.00-08.30PM 

Venue: TBA 

To register, email to secretariat.iccc@gmail.com 

@america Idol 

High School musical star Monique Coleman (center) with the contestants of @ 

america Idol. She was a member of the jury on the event, which was held at @ 

america Pacific Place Mall, Jakarta (4 February 2012). 

DR. Roger Beachy a staff member of the U.S. Secretary of Agriculture gave a 

public lecture at the Southeast Asian Food & Agricultural Science Technology 

Center (SEAFAST) at Bogor Agricultural University (February 9, 2012). 


Pictorial Events 

IABC Board members, business people and government 

officials attended this event. The idea of the program is to have 

a small group of IABC members and guests engaged in a social 

game of golf as well as to create networking. The event was held 

at Jababeka Golf & Country Club, Cikarang. 

BNI and Waskita MOU Signing 

PT Bank Negara Indonesia Tbk (BNI) provided a loan facility of Rp 4.36 trillion 

to PT Waskita Karya (Persero). 

The loan facility consisted of working capital credit amounting to Rp1 trillion, 

issuance of bank guarantee as an assurance of project implementation of 

Rp 3 billion, issuance of letters of credit (L/C) profit in capital goods import 

approximately $40 million or roughly Rp 360 billion. 

The President Post/Heros 

TNI Barracks Ground Breaking 

at Santi Dharma Center, Sentul, Bogor 

Public Lecture by DR. Roger Beachy Deputy U.S. Secretary of State for Political-Security Affairs Andrew Shapiro 

(left), and U.S. Ambassador to Indonesia Scot Marciel (second from left) and 

two representatives of the TNI marked the start of the building of barracks 

funded by the United States at Santi Dharma Center, the center of the 

Indonesia Peacekeeping Mission at Sentul, Bogor. 

The President Post/Heros The President Post/Heros The President Post/Heros

B6 


Breakfast Dialogue 

PT. Jamsostek will 

be transformed into 

a social security 

organizing body 

(BPJS) for workers 

and PT Askes will 

become the BPJS for 

health according to 

Law No. 24/2011. 

a new 

mandate, the 

BPJS for workers 

is required 

“Under 

to provide pension 

benefits for both formal and 

informal workers, and this will 

take full effect on July 1, 2015,” 

said Hotbonar Sinaga, CEO of 

Jamsostek, at a breakfast dia- 


Social Security Organization 


logue held by The President Post 

at The Financial Club Jakarta 

(15/02/2012). 

Jamsostek currently provides 

Health Care Benefit, Retirement 

Security Program, Death Insurance, 

and Work-Related Accident 

Insurance. 

Meanwhile, BPJS Health will 

focus on providing health care 

services for all Indonesian citizens, 

including those who had 

applied for Health Care Benefit 

with PT Jamsostek. BPJS Health 

is expected to operate in January 

2014. BPJS Health will take 

over several health care programs 

such as Jamkesmas (community 

health insurance) and Jamkesda 

(regional health insurance). 

Anyone is welcome to become 

BPJS members as long as they 

pay contributions, including foreigners 

who have worked in Indonesia 

for more than six months, 

employees and employers, individuals, 

and government institutions 

that employ civil servants. 

PT Jamsostek will still run its 

existing Jamsostek programs as 

mandated in Government Decree 

No. 36/1995 and Law No. 

3/1992, until the BPJS for workers 

is working in full swing. 

To date, there are 34 million 

workers registered as Jamsostek 

members, yet only 10.6 million 

have active status.



International 

Russian Ambassador 

Alexander A. Ivanov 

stated that Russian- 

Indonesia relations 

proved to be highly 

potential. The ambassador spoke 

the outcome of the Russian diplomacy 

activities in 2011 and the 

Russian Embassy in Jakarta on 

a press conference devoted to the 

Russia’s Day of Diplomatic Service 

which was held at the Russian 

Ambassador’s residence in 

Jakarta. 

Russia-Indonesia relations 

have gained a new momentum 

and become an important issue 

on the international agenda. It is 

seen through active political contacts 

at the high and the highest 

level – bilateral meeting between 

D. A. Medvedev, President of the 

Russian Federation and Dr. Susilo 

Bambang Yudhoyono, President 

of the Republic of Indonesia 

which was conducted on the sidelines 

of the APEC summit in Honolulu, 

USA (November 12), a visit 

of Sergey B. Ivanov, Deputy Prime 

Minister of the Russian Federation 

to Indonesia (27 - 28 October), 

in the framework of which at the 

high-level meeting he discussed 

trade, economic and technical co- 

Hosted by 

The Government of the 

Republic of Indonesia 

APSDEX is dedicated to: 

� 

� 

� 

� 

� 

Indonesia-Russia Relations Bolstered 

Through Real Cooperation Agreement 

Russia-Indonesia relations have gained a new 

momentum and become an important issue on 

the international agenda. 


operation with Hatta Radjasa, Coordinating 

Minister for Economic 

Affairs of the Republic of Indonesia. 

Participation of Sergey V. Lavrov, 

Minister of Foreign Affairs of 

the Russian Federation in the 6th 

East Asia Summit held in Bali 

(November 19) became truly historical 

as Russia for the first time 

took part in the work of the EAS 

as its full member. 

Practical realization of agreements 

made last year gave positive 

results. Trade volume between 

Russia and Indonesia in 

2011 was 2.2 billion USD. Compared 

to Russia’s trade with some 

of Indonesia’s smaller neighboring 

countries, this figure does not 

represent the true potential of the 

countries’ economic cooperation. 

The Russia-Malaysian trade volume 

reached $4 billion in 2011. 

Signing of the contract between 

the Ministry of Defense of Indonesia 

and the JSC “Rosoboronexport” 

for the delivery of six more 

jets Su-30MK2 (December 29, 

2011) considered to be a new step 

in the military-technical cooperation. 

Signing of the Memorandum 

of Understanding between “Kalimantan 

Rail PTE Ltd.” (a subsidiary 

of JSC “Russian Railways”) 

and the administration of 

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the province of East Kalimantan 

for the construction of the railway 

and associated infrastructure on 

the Kalimantan Island in Jakarta 

on February 7, 2012, should 

lead to creation of the largest investment 

project (More than $2), 

aimed to assist Indonesian partners 

to cope with the actual problems 

of the transport infrastructure 

development. 

The fact is both countries know 

In cooperation with the: 

Ministry of Defense 

Republic of Indonesia 

very well that thousands miles 

separate them and the road that 

connects the two countries has 

constructed more than 60 years 

ago. In the early 1990s, this road 

started to be repaired, until it was 

completed in 2003 when the two 

country leaders signed the Declaration 

on Principles of Friendly 

and Partnership Relations for the 

21st century. 

In tourism, 100,000 Russians 

Indonesian 

Armed Forces 

Official Sponsor: 

Indonesian 

National Police 

Official Media Sponsor: 

www.presidensby.info/Muchlis 

Bilateral meeti ng between D. A. Medvedev, President of the Russian Federati on and Dr. Susilo Bambang Yudhoyono, 

President of the Republic of Indonesia which was conducted on the sidelines of the APEC summit in Honolulu, USA 

(November 12) 

enjoyed the beauty of Indonesia 

last year, compared with 80,000 

in 2010. But this figure is minor 

compared with Thailand, where 

about 300,000 Russians enjoyed 

its sunny tropical beaches 

in 2011. 

What has kept the Russian-Indonesian 

relationship from reaching 

its full potential? 

First, both Indonesians and 

Supported by: 

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Rescue Agency 

APSDEX’12/JIDD’12 Event Secretariat 

PT Infrastructure Asia, Jl. Teluk Betung #43A, Jakarta Pusat 10230 Indonesia 

T +62 21 391 3037 | F +62 21 391 3349 | www.jidd.org | www.apsdex.com | info@apsdex.com 

Alexander A. Ivanov 

Russian Ambassador 

Russians maintained their own 

views about each other rooted in 

the Cold War. Second, both countries 

are happy enough to maintain 

good trade relations with 

traditional partners like Japan, 

China, the United States and 

Western Europe, and they haven’t 

yet explored new opportunities 

beyond these established ones. 

Touching upon current issues 

of the international agenda, Ambassador 

paid special attention to 

the difficult situation in the Middle 

East and North Africa. Regarding 

situation in Syria, where Sergey V. 

Lavrov, Minister of Foreign Affairs 

of the Russian Federation, was 

on a visit on February 7, 2012, he 

said that Russia strongly opposes 

any violence against civilians and 

against military intervention by 

external forces to support one of 

the parties of the internal conflict, 

in order to avoid recurrence of the 

Libyan scenario. 

Jakarta Convention Center, Jakarta, Indonesia 

Indonesian 

Defense University 

Media Partners: 

Besides, the Head of the Russian 

diplomatic Mission underscored 

prospects of increasing 

cooperation within ASEAN and 

APEC, especially in view of Russia’s 

chairmanship in APEC in 

the current year and the coming 

Summit of the Forum in Vladivostok 

in September. 

A. A. Ivanov noted that Asia is 

one of the key foreign policy priorities 

of Russia, which is an integral 

part of the Asia Pacific region. 

The major task in this area 

is to be actively involved in shaping 

the regional security and cooperation 

architecture, as well as 

further embedding of Russia in 

the unfolding processes in the region’s 

political and economic cooperation 

and integration. 

In conclusion, Russian Ambassador 

answered the journalists’ 

questions pertaining to various 

aspects of international and 

regional agenda, Russian-Indonesian 

cooperation in energy, 

transport and peaceful space exploration 

and the current political 

situation in Russia in the view 

of the presidential elections to be 

held on March 4, 2012. 

The Embassy also organized a 

photo exhibition that featured the 

most memorable moments and 

achievements in the Russian-Indonesian 

cooperation in 2011, including 

the highest and high level 

meetings, exchanges between the 

Muslim communities, and further 

development of military-technical 

ties. 

Indonesia Fire Service 

Association

B8 


Technology 

The Galaxy Nexus 

is the best Android 

phone, heads and tails 

above anything else 

on the market. The 

speed, the new sleek 

blue-and-grayscale 

look, the new Google 

apps, the new and 

easier ways to manage 

what’s happening on 

your phone—there’s 

no contest. 

When Nikon announced 

the D4 

DSLR a while back, 

they made it very clear that 

they wanted it to be a fullfledged 

multi-media machine. 

That sentiment has 

been carried down a level 

with the new D800, which 

boasts many of the same video 

capture features in addition 

to its massive megapixel 

count. 

Nikon has tweaked just 

about everything that could 

be tweaked in its predecessor, 

D700. At the heart of it is 

a 36.3-megapixel full-frame 

(FX format) CMOS sensor. 

That’s coupled with the Expeed 

3 image processor. As 

a result, it has a maximum 

resolution of 7360 x 4912. 

That’s roughly 150% the pixel 

count of Nikon’s flagship 

D3X DSLR. To help accommodate 

all that data, is has 

both an SD and a CF card 

slot. It doesn’t, however, accept 

the new XQD cards like 

the D4. 

But, the revamp doesn’t 

stop at the sensor and processor. 

It has a new 91,000pixel 

3D Color Matrix Metering 

III system with an added 

emphasis on facial detection, 

so they claim it will perform 

better, even in tricky lighting 

situations like strong backlight. 

“Whatever the project, visionaries 

need a tool that is 

going to help them stay ontime 

and on-task. The Nikon 


Samsung Galaxy Nexus: 

This is Still Android 

The Nexus line is 

Google’s “reference 

line” of Android 

phones—each one 

(this is the third) is 

the first phone to 

carry the new version 

of Android, completely unencumbered 

by the custom interfaces 

tacked on by most other 

D800 re-imagines what is 

possible from this level of 

D-SLR, to address the 

needs of an emerging 

and ever changing market; 

this is the camera 

that is going to bridge 

the gap for the most demanding 

imaging pro- 

fessionals, and provide 

never before seen levels of 

SLR image and video quality,” 

said Bo Kajiwara, director 

of marketing, Nikon Inc. 

“The D800 is the right tool for 

today’s creative image makers, affording 

photographers, filmmakers 

and videographers a versatile 

option for capturing the ultimate 

in still image quality or full HD 

content, with maximum control.” 

It has a 51-pount AF system, 

15 of which are cross-type on a 

3500FX autofocus center module. 

That promises to provide an 

improvement over the D700, but 

likely won’t be quite as snappy as 

its big brother, the D4. Nikon does 

promise that it will be able to focus 

in situations as dark as -2 EV, 

which we’ll gladly check out in our 

test lab. The native ISO range goes 

from 100 up to 6400, but it’s expandable 

down to 50 and up to 

25,600. 

Unlike one of its other main 

competitors, the aging Canon 5D 

Mark II, the D800 has a builtin 

flash that works with Nikon’s 

Creative Lighting System, which 

means it can be used to control 

other Nikon speed lights wirelessly. 

That’s something we’re definitely 

glad to see. 

manufacturers. They’re intended 

to be the purest version of Android 

of their generation. 

The Galaxy Nexus is the first 

with Android 4.0, called “Ice 

Cream Sandwich,” or ICS (Android 

code names use alphabetical 

dessert names—Cupcake, 

Donut, Eclair, Froyo, etc). More 

phones with ICS will come, and 

But, in addition to all of the still 

photography stuff, there’s also the 

video capture. You can get 1920 x 

1080 at 30p, 25p, and 24p. Drop 

down to 1280 x 720 and you can 

add 60p and 50p to the equation. 

It has full, uncompressed digital 

output via HDMI, which means 

serious film makers can use it 

with a capture device instead of 

going to a card and it even has the 

headphone jack film makers were 

so happy to hear about on the D4. 

Ultimately, it’s an extremely capable 

video machine. 

Because it has so much resolution 

and a full-frame sensor, the 

D800 offers several crop modes, 

including a 1.2x setting and a 

1.5x DX setting, which still maintains 

a 15.4-megapixel resolution. 

It may not get a ton of use from 

the photo side, but with HD video 

not requiring the full sensor, it 

could come in very handy for motion 

picture shooting. 

In the end, the D800 really does 

seem to keep the focus on maximizing 

image quality. The new AF 

soon—and they will have skins, 

like HTC’s Sense UI. But this is 

the phone Google wants us to 

think of when we think of ICS. 

The look of Android is quite different 

from before: it’s now cool 

and blue, with spare lines and 

black backgrounds. There’s a 

new, custom-made font. There are 

friendly animations. The buttons 

Nikon Introduces D800 36.3-Megapixel 

Full-Frame DSLR in March 

Nikon has tweaked just about everything that 

could be tweaked in its predecessor, D700. At 

the heart of it is a 36.3-megapixel full-frame 

(FX format) CMOS sensor. 

www.outletphotography.com 

system should prove quick, 

but with a burst rate that 

caps off at 4 FPS, it still 

leaves plenty of room to remember 

why the D4 is the 

top dog. 

The D800 will start shipping 

in late march for 

$2,999. That’s slightly more 

expensive than the D700’s 

$2,700 price, but you get a 

lot more resolution and the 

multimedia comparison 

isn’t even close. 

As a note, there’s also another 

version known as the 

D800E, which is the exact 

same camera, only the 

low pass filter has been removed. 

While the filter does 

combat aliasing, which is a 

distracting effect found in 

areas of repeating detail, 

it also slightly reduces the 

camera’s maximum fidelity. 

This is primarily something 

requested by studio 

or landscape shooters, but 

it also works to the benefit 

of some video shooters. The 

D800E will cost $3,299 and 

will ship in mid April. 

www.digitaltrends.com 

have been moved to the screen itself, 

and shrunk to three: Home, 

Back, and Recent Apps. The camera 

app has been overhauled. All 

of the first-party apps, like Gmail 

and Maps, are new. Icons and 

folders are more three-dimensional. 

The keyboard is new. Google 

Plus is heavily integrated. 

Just about everything listed 

in the section above is a good 

change. But more importantly, 

Ice Cream Sandwich comes very 

close, dangerously close, to the 

ethereal goal of “just working.” It 

is fast and responsive as all hell. 

That is impressive technologically, 

but for humans, it’s more impor- 

tant as an element of a phone that 

feels like it’s working with you, you, 

not against against you. There’s no lag: 

when you swipe, it moves. moves. This is 

not as easy as it sounds; sounds; Android 

had a distinct distinct lag between your 

finger and what was happening 

on screen, and throughout most 

of the Galaxy Nexus, that’s now 

gone. 

The new buttons are great; they 

save space, but they’re also very 

functional, rotating when you 

want to rotate the screen, adding 

a menu button when you’re using 

an app that needs one, disappearing 

when you’re playing a game or 

watching watching a video. 

There are lots of nice little features, which you’ll 

discover as you go, ranging from NFC to a new 

unlock mode that recognizes your face to a new 

People app that collects info from all your friends. 

There are tons of goodies in here which you’ll 

discover as you use it. 

Apple stole Android’s swipedown 

notifications shade in iOS5, 

and while Apple’s is prettier, Ice 

Cream Sandwich seems to say “oh 

yeah? Enjoy the first generation. 

Here’s what we’ve done with years 

of practice.” There’s an embedded 

settings button in the shade, so 

you can jump in there and turn 

Wi-Fi or Bluetooth on and off, or 

change your brightness, or whatever, 

in one tap. You can swipe notifications 

away one by one—just 

tap and toss them off the phone. 

Maps on Android are in a different 

league than anywhere else, 

as is Gmail. The browser has been 

redesigned, smartly. Tabs can be 

swiped-to-close, just like notifications 

or open apps. There’s a mode 

to request the desktop, rather than 

mobile, version of a site—ideal for 

the sites that, frustratingly, don’t 

provide such links for you. There’s 

a “save for offline reading” mode 

so you can read longer stories later, 

even when you’ve got no wireless 

signal. Mobile Flash, recently 

shuttered by Adobe, is not currently 

available on ICS—it may 

come later. 

The keyboard is great. It’s the 

right amount of sensitive, autocorrect 

is unobtrusive and helpful, 

and it gets what you’re trying 

to say. 

There are lots of nice little features, 

which you’ll discover as you 

go, ranging from NFC to a new 

unlock mode that recognizes your 

face to a new People app that collects 

info from all your friends. 

There are tons of goodies in here 

which you’ll discover as you use 

it. 

The Galaxy Nexus is made by 

Samsung, and feels like the Galaxy 

S, or the Focus, or any other 

modern Samsung phone. It’s 

wildly thin but it’s still light and 

plastic-y. 

The screen warrants some talk. 

It’s sized at 4.65-inches, which is 

just insanity. 4.3 inches has become 

the accepted size of a “big” 

phone. Partly that’s because a 

portion of the screen is devoted 

to the new “buttons,” and partly 

it’s because the phone has a pretty 

small bezel. The extra space is 

nice for watching videos or reading 

Kindle books (suddenly a 

pleasant experience on a phone), 

and the screen itself is great: ICS 

mandates a true 720p resolution, 

and the Super AMOLED display is 

very clear. 

The camera’s speed is unparalleled—it’s 

very fast to shoot and 

then ready itself for the next shot. 

But the sensor in the Galaxy Nexus 

itself is surprisingly bad. It’s 

a 5MP shooter, and compared to 

photos from other Android phones 

like the Samsung Galaxy S II, the 

Nexus’s shots washed out, fuzzy, 

and without detail. 

The Galaxy Nexus will be released 

on Verizon’s network in 

the States, and it’ll boast 4G LTE, 

which is pretty killer. It won’t have 

a slot for expandable memory and 

rumors indicate it’ll probably have 

32GB of internal storage on Verizon. 

Android is still not as streamlined 

as iOS or Windows Phone. 

Perhaps Android phone fans don’t 

want it to be. Ice Cream Sandwich 

is a big step forward, but there are 

still elements that feel redundant 

or messy. Having three ways to do 

something doesn’t make it easier 

to use; it makes it harder to learn 

the rules of the operating system, 

harder to understand why certain 

things work certain ways and 

thus harder to perform new actions 

for the first time. Some apps 

require a menu button, which will 

pop up next to the Recent Apps 

button at the bottom right of the 

screen. 

The Galaxy Nexus is the best 

Android phone, heads and tails 

above anything else on the market. 

The speed, the new sleek 

blue-and-grayscale look, the new 

Google apps, the new and easier 

ways to manage what’s happening 

on your phone—there’s no 

contest. With Verizon’s 4G, presuming 

the 4G doesn’t reduce the 

Nexus’s battery life to zero in a few 

hours, it’ll be a fine phone, and 

not just for dedicated Androiders.


SECTION 

Automotive C 

A car production 

fever is gripping 

Indonesia these 

days with students, 

government officials, 

politicians, and 

business leaders alike 

impatiently moving 

to manufacture what 

they call “Mobil 

Nasional (Mobnas) or 

“national cars.” 

The enthusiasm – it began 

to grow following 

the introduction of a 

Kiat Esemka sedan by 

Joko Widodo (Jokowi), 

the mayor of Solo – received 

a powerful boost recently 

when German Ambassador to 

Indonesia Nobert Baas promoted 

the car by driving it during a visit 

to the Central Java city. 

Ambassador Baas was reportedly 

impressed by the car, 

especially its engine and interior 

which were designed and produced 

by students of a Solo vocational 

school. 

The car’s production site is at 

Solo Techno Park (STP), which 

has for a few yeas cooperated with 

Deutsche Gesellschaft für Internationale 

Zusammenarbeit (GIZ) 

or German Agency for International 

Cooperation. 

The German government has 

pledged 28 million euros (Rp336 

billion) in a combined package of 

soft loan and grant to boost Kiat 

Esemka’s Rp50 billion start-up 

capital for manufacturing what 

is expected to be Indonesia’s most 

successful national car. 

Even with a Rp50-billion startup 

capital, Jokowi says, Solo can 

produce 300 Kiat Esemka sedans 

a month, so the German capital 

injection is sure to bolster production 

by some 600%. 

The mayor says the production 

center has received more than 

5,000 orders and a number of local 

investors will participate once 

the prototype has been certified 

by the Ministry of Industry, Ministry 

of Environment, and Ministry 

of Transportation. 

Apart from Kiat Esemka, a 

number of domestically made cars 

have actually been introduced but 

they were less popular because of 

poor promotion strategy. Kiat Esemka 

became a hit in the market 

because it was promoted by 

Jokowi, Indonesia’s “Mayor of the 

Year” in 2011, who is a potential 

candidate from Indonesian Democracy 

Party-Struggle (PDI-P) 

for the Jakarta governorship. 

The most popular version is Esemka 

Rajawali, a 1,500cc engine 

car that has now become the official 

car of the Solo mayoralty. 

Following are some of the domestically 

assembled cars produced 

in different parts of Indonesia. 

Marlip 

This is an electricity-fed car developed 

by the Indonesian Institute 

of Science (LIPI) and distributed 

by PT Marlip Indo Mandiri. 

This small car is used for special 

purposes. Marlip Mosen 

Standard was made for transporting 

hospital patients, Marlip 

R410 and Marlip Smart for housing 

complexes, and Marlip City 

Car for use in the city. 

Meanwhile, Marlip LE 320 & 

LE 330 are for golf courses and 

patrol purposes, Marlip Hercules 

for hotel and airport areas while 

Marlip Pick Up for transporting 

goods. 

The four-seat vehicle has a 

speed limit of 50km per hour and 

can travel 120km when fully fueled. 

It costs Rp80 million. 

Maleo 

This car was first developed in 

1993 when then President Soeharto’s 

administration launched 

a campaign to promote the use of 

domestic products. 

Indonesia’s aircraft manufacturer 

IPTN was appointed to realize 

the plan and it cooperated 

with Britain’s Rover and Australia’s 

Millard Design center. 

By 1997 IPTN had produced 

11 prototypes but the project was 

grounded due to a total change of 

regime that brought a noisy end to 

the dictatorial rule of Soeharto. 

Gea This one was produced by stateowned 

railway company PT Inka. 

The engine was the result of an 

intensive research project called 

Riset Unggulan Strategis Nasional 

(Rusnas). 

It was a 640cc vehicle meant to 

socialize government fuel efficiency 

drive amidst global energy crisis 

of that time. The car traveled 

10,000 kilometers at a maximum 

speed of 90km per hour. 

Tawon 

Tawon is the Indonesian word 

for “bee.” And the car does look 

like a bee. The tiny vehicle is 

meant to replace the three-wheeler 

bajaj produced by PT Super 

Gasindo Indonesia Jaya (GIJ). The 

provincial government of Banten, 

where the car is produced, has for 

some time been using it as its official 

car. 

The 650cc vehicle costs Rp28 

million and can travel 100km per 

hour. 

Mobira 

This tiny car was produced by 

PT Sarimas Ahmadi Pratama in 

Depok, West Java. 

The car was designed and produced 

by Dasep Ahmadi, a local 

entrepreneur who graduated from 

the Bandung Institute of Technology 

(ITB) in 1984. 

Mobira, which stands for Mo- 

bil Rakyat (people’s car), has been 

cited by State-Owned Enterprises 

Minister Dahlan Iskan as a potential 

car of the future. 

Komodo 

Komodo is not just the name 

of the giant lizard in East Nusa 

Tenggara province that recently 

won New Seven Wonders of the 

World contest; it is also the brand 

name of a locally-made car. 

The chief designer of Komodo 

car is Ibnu Susilo, who designed 

the CN-250 propeller aircraft and 

Malelo. 

This car is very fuel-efficient; it 

only needs 5 liters of gasoline to 

travel 100 kilometers for seven 

hours through forest areas. 

This car is very suitable for 

mountain expeditions because it 

has what is called a self-recovery 

system that enables it to return to 

normal position even if it should 

overturn. 

Timor 

The word sounds like the name 

of the island on which Indonesia 

shares land border with Ramos 

Horta’s country. But Timor is actually 

an acronym for Teknologi 

Industri Mobil Rakyat. 

This car was once very popular 

and was produced by PT Timor 

Putra Nasional, which belonged 

to Hutomo “Tommy” Mandala Putra, 

son of former President Soeharto. 

In essence this car was a metamorphosis 

of KIA Sephia, which 

used local content in the assembling 

process mixed with imported 

components. 

Tommy’s brother Bambang Trihatmodjo 

also produced his own 



RI Races to Produce 

Own Cars as Germany 

Steps in With Aid 

By Nelly Angelina 

Marlip 

Komodo 

MR 90 

Timor 

Apart from Kiat 

Esemka, a number 

of domestically 

made cars have 

actually been 

introduced but they 

were less popular 

because of poor 

promotion strategy. 

Kiat Esemka 

became a hit in the 

market because it 

was promoted by 

Jokowi, Indonesia’s 

“Mayor of the Year” 

in 2011. 

Bakrie Beta 97 MPV 

car to compete with his brother’s. 

Bambang’s car was Bimantara 

Cakra. Both cars failed to survive 

following the fall of Soeharto. 

Esemka Digdaya 

This one was produced by students 

of SMK 1 Singosari, Malang, 

East Java. This double-cabin car 

has a 1,500cc engine modified 

from Timor’s remains. The car 

sells at Rp175 million each. 

MR 90 

This was converted from Mazda 

323 Hatchback by PT Indomobil. 

The latest version was Mazda 

Van Trend of 1994. It however did 

not continue for lack of market absorption. 

Maleo 

Tawon 

Gea 

Mobira 

Kalla Motor 

The Kalla Motor company, 

which is associated with former 

Vice President Jusuf Kalla, once 

created a 500cc car but failed 

to continue the project that had 

been expected to produce a national 

car. 

Bakrie Beta 97 MPv 

Bakrie Brothers designed a 

minibus prototype in 1994 called 

Bakrie Beta 97 MPV. It was modelled 

after British Sado cars. In 

April 1995 the design work was 

completed and presented to the 

Bakrie management. The prototype 

was made in 1997. But a 

monetary crisis that hit the country 

in 1998 stalled the project. 

Kancil 

Kancil stands for Kendaraan 

Niaga Cilik Irit Lincah, meaning 

a small commercial car that is efficient 

and lively. This was produced 

by PT KANCIL (abbreviated 

from Karunia Abadi Niaga 

Citra Indah Lestari). 

This was once prepared to replace 

three-wheeler bajaj for use 

in Jakarta. But the project failed 

due to a lack of support from the 

municipal government and lack of 

market absorption. 

Texmaco Macan 

PT Texmaco once produced this 

MPV minibus with an engine capacity 

of 1800cc. Texmaco cooperated 

with Mercedes Benz when 

it put one prototype on display in 

2001. But this project also collapsed 

due to financial crisis. 

Gang Car 

PT Dirgantara Indonesia produced 

this two-seater with an engine 

capacity of 125-200cc. This 

Esemka Digdaya 

Arina 

car was intentionally made for use 

in smaller alleys and that’s why it 

is called Gang Car. The project 

was halted, however, due to financial 

crisis that hit the company in 

2003. 

Arina 

This was produced by Universitas 

Negeri Semarang (Unnes) students 

with its engine converted 

from that of 150-250cc motorcycles. 

This also was a four-seat vehicle. 

Texmaco Perkasa 

This was the only truck ever 

produced by an Indonesian company. 

Up to 90% of its components 

were made locally. 

The engine was built in Indonesia 

under license from Cummin of 

America, while the gear was made 

under license from Germany. Other 

components were made locally 

also under license from Eston of 

the USA and Leyland of Britain. 

The Indonesian military ordered 

1,000 such trucks from PT 

Texmaco up to 2009 but the company 

has now been closed down. 

Nuri 

This one was produced by PT 

Super Gasindo Jaya in July 2010. 

It has an engine capacity of 80cc 

and is a five-door car with dual 

fueling system where you can use 

gasoline and LPG alternatingly. It 

costs Rp50 million. 

Wakaba 

This one was produced by the 

automotive community and industry 

office of West Java province. 

It is a mutli-purpose vehicle 

for use in farm areas, villages, 

and traditional markets.

C2 


Automotive 

The government slaps 

a 10% import duty on 

automobile engines 

meant for domestic 

production but 

reduces to zero the 

import duty on the 

engines brought in by 

distributors of foreign 

brands. 

By Nelly Angelina 

The Association of IndonesianAutomotive 

Producers (Asianusa) 

has complained 

about what they perceived 

as discrimination 

in government treatment toward 

automotive distributors. 

They claim that the government 

has been generous with distributors 

of foreign brands but has exhibited 

the opposite attitude toward 

distributors of domestic 

automotive brands. One simple 

example, they say, is that the government 

slaps a 10% import duty 

on automobile engines meant for 

domestic production but reduces 

to zero the import duty on the engines 

brought in by distributors of 

foreign brands. 

Responding to this, Industry 

Minister MS Hidayat says that 

one needs to look carefully at the 

details of such imports before 

making any judgment. He told 

members of Commission VI of the 

House of Representatives (DPR) 

recently that the main engines of 

several domestically built car prototypes 

were imported intact from 

the People’s Republic of China. 

“When the import duty for completely 

built-up engines is zero 

percent, what actually happens 

is that it is the engine producer 

in the country of origin that 

takes the benefit,” the minister 

explains. 

The minister says he uses the 

Customs and Excise Tariff Guide 

Book of 2012 which stipulates a 

10% import duty on completely 

built-up car engines. To go about 

this situation, the minister proposes 

that domestic manufacturers 

import components and 

sub-components using the Incompletely 

Knocked-Down (IKD) 

scheme which is in conformity 

with Decree Number 59/M- 

IND/5/2010 of the Minister of Industry. 

This particular decree 

stipulates a 2.5% import duty instead. 

This stipulation applies to 

all automotive brands be they distributed 

by foreign or local agents, 

he says. 

mayor of Solo, bought one and 

used it as his official car to replace 

his Toyota Camry. Since 

then many government officials 

and public figures—including 

State-Owned Enterprises Minister 

Dahlan Iskan—have purchased 

the car. At least 5,000 people 

have lined up to buy the car, 

according to news reports as of 

early February. 

The Esemka car is produced at 

Solo Technology Park (STP), which 

is developed in cooperation with 

Deutsche Gesellschaft für Internationale 

Zusammenarbeit (GIZ) 

or German Agency for International 

Cooperation. The German 

government has pledged at least 

28 million euros or equivalent to 

Rp336 billion in a combined package 

of soft loan and grant to augment 

Kiat Esemka’s start-up capital 

of Rp50 billion. 

Strangely, despite being a national 

pride, the entry of Kiat Es- 


In Automobile Market, 

Government Isn’t Taking Sides 

SMK students assemble Kiat Esemka car at Solo Technopark, Solo. The car is expected to be the embryo of nati onal car that could be mass produced at an inexpensive price. 

The purpose of that 2.5% import 

duty is to encourage the 

growth of domestic automotive 

industries. With that the minister 

wishes to explain that there is 

no discrimination in government 

treatment toward local or automotive 

foreign brands. “What I mean 

is that we are actually facilitating 

domestic industries to grow and 

not blocking their growth in any 

manner,” he adds. 

As Minister Hidayat sees it, it 

is good if Indonesia could have its 

own car as a source of national 

pride. Over the past two decades, 

many local companies have produced 

their own cars but not in 

a big scale. They only produced 

prototypes and put them on display 

during several industrial exhibitions. 

Only last year did Kiat 

Esemka, the masterpiece of high 

school students in Solo, Central 

Java, drew nation-wide attention 

when Joko Widodo (Jokowi), the 

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Industry Minister MS Hidayat 

What I mean is that we 

are actually facilitating 

domestic industries to 

grow and not blocking 

their growth in any 

manner,” 

Industrial Post 

6 Edisi 

12 Edisi 

18 Edisi 

24 Edisi 

Jabodetabek HEMAT 

Rp. 60,000 

Rp. 108,000 

Rp. 153,000 

Rp. 192,000 

emka in the domestic market does 

not please certain high-ranking 

government officials. One such 

people is Bibit Waluyo, the governor 

of Central Java, who is hierarchically 

the boss of Jokowi. When 

Jokowi replaced his official Toyota 

sedan with Kiat Esemka, the 

governor mocked him and said 

the mayor had made “a careless 

blunder.” 

The governor said that as a 

state official, Jokowi should not 

have been so careless riding on 

a car that has yet to pass certification 

tests. “What if the car runs 

into a buffalo or break down on 

the road?” he wondered cynically. 

In spite of such criticism, Jokowi 

is determined to push ahead with 

facilitation efforts to make sure 

that Esemka be officially acknowledged 

as a national car. 

Unlike the Central Java governor, 

President Director of PT Toyota 

Astra Motor (TAM) Johnny 

Metode Pembayaran 

Transfer ke: 

Bank OCBC NISP Capitol Cabang Cikarang 101.010.00016.5 

Atas nama PT. Sarana Pratama Pengembangan Kota 

BERLANGGANAN 

SEKARANG! 

Ya! Saya ingin berlangganan 

- 

10% 

15% 

20% 

Nama Tn. Ny. 

Alamat Rumah Kantor 

Tanggal lahir 

Nama Perusahaan Jabatan 

Telp. 

HP 

Email 

ANTARA/Akbar Nugroho Gumay 

Darmawan says that his company 

welcomes wholeheartedly all 

efforts to have a national brand. 

He has called on all private and 

government institutions to support 

the Solo students’ endeavor 

and do whatever is possible to 

make Esemka a success story. 

“Nationalism must be preserved 

through this Esemka car,” Darmawan 

notes, adding that “there 

must never be any attempt to kill 

this spirit of nationalism.” 

Reacting to Darmawan’s remark, 

the CEO of another subsidiary 

of the Astra Group has 

welcomed Esemka’s entry in the 

domestic market and called for 

quality upgrading of the new car 

and fulfillment of free-market requirements. 

President Director 

of PT Astra Sedaya Finance 

(ASF) Djony Bunarto Tjondro 

says that any national car (Mobnas) 

must have the ability attract 

the free market. The product must 

Surat kabar bisnis lain yang anda baca? 

Kode Pos 

Faks. 

Kiat Esemka, the 

masterpiece of high 

school students in 

Solo, Central Java, 

drew nation-wide 

attention when Joko 

Widodo (Jokowi), the 

mayor of Solo, bought 

one and used it as his 

official car to replace 

his Toyota Camry. 

Since then many 

government officials 

and public figures— 

including State-Owned 

Enterprises Minister 

Dahlan Iskan—have 

purchased the car. At 

least 5,000 people 

have lined up to buy 

the car, according to 

news reports as of 

early February. 

be of high quality in the eyes of 

the market, the availability of its 

spare parts must not be a problem, 

and it must have satisfactory 

after-sales service, Djony says. 

“If it is true that the product meets 

all those requirements, we certainly 

will step into it for financing 

(leasing) purposes.” 

“80% of our financing activities 

is dedicated to non-Astra products. 

This shows that we are open 

to other or new brands, including 

Mobnas brands, so long as 

those requirements are fulfilled,” 

Djony says. “We do not look at 

the brands; we look at the quality 

and those requirements, be they 

Esemka or European or American 

cars, no problem.” He concluded 

that for Astra, the issue is 

not whether it is a national car or 

not. Instead, the issue is payment 

guarantee. Therefore, fulfillment 

of those requirements is highly 

important, he emphasizes. 

Data Pribadi

C4 


Tourism 

Number of Tourists to 

S. Sumatra Projected up 20% 

In 2011 the number of Indonesian tourists to 

the province reached 2.7 million, foreign tourists 

reached 36-40 thousand. 

The number of tourists to 

South Sumatra in 2012 

may increase by 20% 

from last year`s. 

“We will try to increase 

the number of tourists here 

by holding and organizing various 

activities and programs,” head of 

the South Sumatra culture and 

tourism agency Toni Panggarbesi 

said in Palembang Thursday. 

He said to reach the number of 

tourists he will cooperate with the 

relevant authorities in the area. He 

added Indonesia last year had 7.6 

million tourists, and was planned 

to reach eight million, but the actual 

figures stood at 7.8 million. 

Tourists to South Sumatra 

came from Malaysia, Jakarta, 

Bali, Yogyakarta, and Batam, 

and that he will try to increase 

their number by 20% this year, 

he said. He said while in 2011 the 

Europe Still 

Potential 

Market for 

Indonesian 

Tourism 

Martin Craigs: 

At the Helm of PATA 

Martin Craigs, CEO of 

the Pacific Asia Travel Association 

(PATA), has worked 

in aerospace/airline-related 

businesses around Asia Pacific 

for over 30 years. His experience 

and expertise will 

bring PATA to reach new productive 

era, as the Executive 

Board expected him to convey 

fast track progress. 

Craigs effectively started 

his position as PATA’s CEO 

since October 2011. The Association’s 

headquarters is 

located in Bangkok. PATA 

also maintains regional offices 

in Frankfurt, New York, 

San Francisco, Beijing and 

Sydney. 

“Managing an association 

like PATA is bound to have 

some pain. It involves orchestrating 

the outcries of thousands 

of people from dozens 

of countries with multiple 

functional experiences. However, 

this type of contention 

is trumped by the pleasure 

of interacting with the many 

positive people that the travel 

industry attracts, not least 

the proactive PATA staff,” 

stated Craigs. 

An aviation industry specialist, 

Craigs has held important 

and senior positions 

at companies such as British 

Aerospace company Short 

Brothers and Saab Scania 

Group, rising to become executive 

vice president of BAE 

Systems, a multinational defense, 

security and aerospace 

company based in the UK. 

Since 1986, because of his 

experience, advocacy skills 

and network of contacts, 

Craigs has retained leadership 

of the pan-Asian nonprofit 

advocacy group AFA. 

Its current members include 

Airbus, Boeing and Cathay 

Pacific. 

Over the past few years, 

Craigs has been asked to lobby 

for or advise diverse organizations 

such as AirAsia, 

the Hong Kong government, 

number of Indonesian tourists to 

the province reached 2.7 million, 

foreign tourists reached 36-40 

thousand. 

“This year we need to cooperate 

with tourism players and stakeholders. 

We make souvenirs, but 

the readiness of the regencies and 

cities are also expected in the development 

and arrangements of 

tourism objects and destinations,” 

he said. 

He said it is also necessary to 

hold activities such as a festival 

like the recent “cap go meh” (end 

of Chinese new year), for instance. 

He will also invite the South Sumatra 

Arts Council to hold regional 

dances on Saturdays and 

Sundays, especially to entertain 

tourists. The cultural and tourism 

agency will also cooperate 

with tourist operators in Malaysia, 

and hotels in the province, he 

said. 

Tourism and Creative Economic 

Minister Mari Elka Pangestu 

said Europe remains a potential 

market for Indonesian tourism. 

“Although an economic crisis 

is taking place there, Europe 

is still a potential market for 

Indonesia`s tourism. Tourism is a 

sector which remains strong even 

during a crisis,” the minister said 

here on Wednesday. 

Martin Craigs, CEO of the Pacific Asia 

Travel Association (PATA) 

His experience and 

expertise will bring 

PATA to reach new 

productive era, as 

the Executive Board 

expected him to convey 

fast track progress. 

publisher and information provider 

Reed Elsevier, The Economist, 

the International Air Transport 

Association (IATA) and the Pacific 

Basin Economic Council. 

He has been a guest of IATA at 

the last 10 annual general meetings/world 

transport summits, 

and has attended Asia-Pacific 

Economic Cooperation (APEC) 

summits in Asia and Latin America. 

The Pacific Asia Travel Association 

(PATA) was founded in 1951 

and is the recognized authority on 

Asia Pacific travel-and-tourism. 

Its mission is to enhance the sustainable 

growth, value and quality 

of Pacific Asia travel and tourism 

for the benefit of the region, 

the industry and the members. 

Its main activities include the 

provision of cutting-edge strategic 

intelligence; timely research 

and industry analysis to its mem- 

She noted that economic turmoil 

was taking place in a number 

of European countries, yet the 

tourism sector there is growing. 

Spain and Greece, for example, 

experienced an 8 to 9% growth 

in their tourism sector, the minister 

said. “Even inbound tourism 

in the United States grew by 5%,” 

she added. 

The World Economic Forum in 

bers and partners; advocacy 

and support on behalf of 

the region and the industry 

in times of crisis; the convening 

of travel trade shows 

that provide a unique platform 

for buyers and sellers of 

Asia Pacific travel products 

to conduct business; the organization 

of local or regional 

workshops, seminars or 

conferences to enhance the 

professionalism of our sector; 

and the timely communication 

of relevant industry 

news and opportunities to its 

members. Thus, PATA assists 

its members to remain competitive 

in the global marketplace. 

PATA also actively works 

to protect and preserve the 

region’s unique natural 

and cultural resources and 

maintains a strong focus on 

environmental and industry 

sustainability. To this end, it 

works closely with the PATA 

Foundation, the Association’s 

charitable arm. 

In partnership with private 

and public sector members, 

PATA enhances the sustainable 

growth, value and quality 

of travel and tourism tofrom-and-within, 

the region. 

The Association provides 

leadership and counsel on 

an individual and collective 

basis to over 80 government, 

state and city tourism bodies; 

nearly 50 international 

airlines, airports and cruise 

lines and many hundreds of 

travel industry companies 

across the Asia Pacific region 

and beyond. 

Thousands of travel professionals 

belong to 39 active 

PATA chapters worldwide and 

participate in a wide range of 

PATA and industry events. 

PATA’s Strategic Intelligence 

Centre (SIC) offers unrivalled 

data and insights including 

Asia Pacific inbound and 

outbound statistics, analyses 

and forecasts as well as 

in-depth reports on strategic 

tourism markets. 


AMPERA BRIDGE. Tourists to South Sumatra came from Malaysia, Jakarta, Bali, Yogyakarta, and Batam 

Davos late last month concluded 

that the highest growth of the 

tourism sector would take place in 

Asia, Mari said. “Growth will take 

place in Asia so we will continue 

to increase promotional efforts 

and seek the way to build more effective 

connectivity,” the tourism 

minister said. Marie said that the 

connectivity factor included infrastructure, 

flight quotas and other 

supporting facilities which still 

www.wisatapalembang.com 

faced constraints at home. 

Until now, Indonesia has 

been focusing its tourism market 

on a number of countries 

in Europe. These countries still 

experienced positive growth in 

2011. Those European countries 

include Britain (grew 

by 3.73%), The Netherlands 

(2.88%), Germany (2.29%) and 

Russia (14.92%). 

Borobudur Temple 

to Be Visited by 

2.5m Tourists 

An official of Borobudur 

Temple Garden Tour (TWCB) 

targeted 2.5 million tourists 

in 2012. 

“We are optimistic the target 

could be achieved under 

the good condition in this 

early year,” said the Head of 

TWCB Units Pujo Suwarno 

in Magelang, Wednesday. 

He said the target of 2012 

has been increased 15.3%. 

Last year the number of visitors 

stood at 2,116,116, comprising 

1,949,592 domestic 

tourists and 166.524 foreign 

tourists. 

Suwarno said although 

the target of 2011 had been 

reached, the number decreased 

from that of 2010’s 

2,436,817 tourists due to 

the Mount Merapi eruption 

that caused a huge damage 

www.pamitrantours.com 

on roads. “Also, the Pabelan 

Bridge (bridging Yogyakarta 

and Magelang region) which 

was struck by cold lava,” 

said Suwarno. “Many tourists 

changed the destinations 

to other objects,” he said further. 

According to Suwarno, 

when the bridge was broken, 

the tourists had to be picked 

up from Yogyakarta in western 

area of the Pabelan 

Bridge. “But now, the bridge 

has been fixed, and we do not 

have any problems going to 

Borobudur Temple, both by 

main and alternative roads,” 

he said. Suwarno said, tourism 

infrastructure should 

be improved so that tourists 

would be able stay longer in 

Magelang, Central Java.


February 12, 2012 C5 

Travel 

Indonesia has the most 

variety rafflesia species 

in the world. Of the 

25 species recorded 

so far, 12 are found 

in Indonesia and four 

of them are found in 

Bengkulu. 

The habitats of Rafflesia 

Arnoldii are spread 

evenly in forest areas 

of Bengkulu province, 

a Rafflesia researcher 

from the University of Bengkulu, 

Agus Susatya, said here Monday. 

“Based on records we have collected, 

raflesia is not found just 

in one forest area but also in nine 

districts and not in cities that have 

no forest area,” he added. 

Agus said the unique flowers 

were found in the Bukit Barisan 

mountains in northern Bengkulu, 

namely Mukomuko district, 

the eastern area of Lebong district 

up the southern part of Kaur district. 

He said there are 21 locations 

where the rare flower blooms, 

in nine districts, namely Mukomuko, 

North Bengkulu, Central 

Bengkulu , Kepahiang, Lebong, 

Rejang Lebong, South Bengkulu, 

Seluma and Kaur. However, 

the majority of the forest areas 

which are the habitat of the pro- 

Bengkulu Showcases 

Rafflesia Flowers The 

tected flower has been changed 

into gardens that threaten its sustainability. 

“During 2011, the flower 

bloomed 14 times in various locations, 

namely in Central Bengkulu, 

Kepahiang, Mukomuko and 

Kaur,” Agus added. 

He noted the location of protected 

forest along the highway 

of Kepahiang and Taba Penan- 

jung were the common locations 

for the blooming rafflesia. These 

locations are located in natural 

reserves of Taba Penanjung I 

and II and protected forests which 

border with Tebat Monok village, 

Kepahiang district. 

Unfortunately the blooming 

flowers are often not managed 

well. As they frequently bloom and 

access to them is easy, these flowers 

are potentially a strong appeal 

www.panoramio.com 

Rafflesia Arnoldii. The unique flowers were found in the Bukit Barisan mountains in northern Bengkulu, namely Mukomuko 

district, the eastern area of Lebong district up the southern part of Kaur district. 

for the community and economic 

development through eco-tourism. 

Indonesia has the most variety 

rafflesia species in the world. Of 

the 25 species recorded so far, 12 

are found in Indonesia and four of 

them are found in Bengkulu. 

In Malaysia and Sabah, which 

only has six species, the ecological 

research and conservation for 

Indonesia has only 

found two to three 

new species in the 

last 20 years. It 

shows that research 

in the species is 

still behind from 

Malaysia and the 

Philippines although 

these species 

firstly appeared in 

Indonesia. 

Rafflesia os relatively more intense 

and advanced. Similarly 

in the Philippines, which in the 

past five years have discovered 

five new species of rafflesia. 

Meanwhile, Indonesia has 

only found two to three new 

species in the last 20 years. 

It shows that research in the 

species is still behind from 

Malaysia and the Philippines 

although these species firstly 

appeared in Indonesia, Agus 

explained. The lack of attention 

is very alarming because 

most of the rafflesia species 

are classified in the endangered 

category, he said. 

MS Discovery 

Cruise Ship Brings in 

Tourists to Ambon 

visit to Ambon by 

American cruise ship MV 

Discovery on Sunday, January 

29, 2012, would restore 

the image the Maluku provincial 

capital in the eyes 

of international community, 

Ambon Mayor Richard 

Louhenapessy said here on 

Sunday. 

MV Discovery started its 

Voyages of Discovery from 

Manila to Sandakan, Bitung, 

Ambon, and then on 

to Darwin, Booby Islands, 

Cairns, Port Doglas, Brisbane, 

New Castle, and Sydney. 

“It is expected that the 

visit to Ambon by the American 

cruise ship will restore 

the image of Ambon city that 

was hit by communal conflict 

on September 11, 2011,” 

Louhenapessy said. 

MV Discovery 

He said that after conflict 

in September last year, 

the number of both domestic 

and foreign tourist visit decreased 

dramatically but the 

Sunday`s arrival of MV Discovery 

would restore the image 

of Ambon city. 

“The Ambon city government 

and the people feel 

proud of the arrival of MV 

Discovery with 440 tourists 

from the United States, Canada, 

Australia, and New Zealand 

because it will prove that 

Ambon can be visited again 

by tourists from various 

countries,” Louhenapessy 

said. 

He expressed hope that 

the tourists upon returning 

to their respective countries 

would promote the natural 

beauty of Ambon and its conducive 

security situation.

C6 


Living 

Mindful Eating as 

Food for Thought 

www.winehardware.com 

TRY this: place a forkful 

of food in your 

mouth. It doesn’t matter 

what the food is, 

but make it something 

you love — let’s say it’s 

that first nibble from three hot, 

fragrant, perfectly cooked ravioli. 

Now comes the hard part. Put 

the fork down. This could be a lot 

more challenging than you imagine, 

because that first bite was 

very good and another immediately 

beckons. You’re hungry. 

Today’s experiment in eating, 

however, involves becoming aware 

of that reflexive urge to plow 

through your meal like Cookie 

Monster on a shortbread bender. 

Resist it. Leave the fork on the 

table. Chew slowly. Stop talking. 

Tune in to the texture of the pasta, 

the flavor of the cheese, the bright 

color of the sauce in the bowl, the 

aroma of the rising steam. 

Continue this way throughout 

the course of a meal, and you’ll 

experience the third-eye-opening 

pleasures and frustrations of 

a practice known as mindful eating. 

www.thesecretingredientblog.com 

Dr. Lilian Cheung 

Harvard Nutriti onist 

That’s why mindful 

eating is becoming 

more important. We 

need to be coming 

back to ourselves 

and saying: ‘Does 

my body need 

this? Why am I 

eating this? Is it just 

because I’m so sad 

and stressed out?’ ” 

Mindful eating is not a diet, or about giving 

up anything at all. It’s about experiencing 

food more intensely — especially the 

pleasure of it. You can eat a cheeseburger 

mindfully, if you wish. You might enjoy it a lot 

more. Or you might decide, halfway through, 

that your body has had enough. Or that it 

really needs some salad. 

The concept has roots in Buddhist 

teachings. Just as there are 

forms of meditation that involve 

sitting, breathing, standing and 

walking, many Buddhist teachers 

encourage their students to meditate 

with food, expanding consciousness 

by paying close attention 

to the sensation and purpose 

of each morsel. In one common 

exercise, a student is given three 

raisins, or a tangerine, to spend 

10 or 20 minutes gazing at, musing 

on, holding and patiently masticating. 

Lately, though, such experiments 

of the mouth and mind 

have begun to seep into a secular 

arena, from the Harvard School 

of Public Health to the California 

campus of Google. In the eyes 

of some experts, what seems like 

the simplest of acts — eating slowly 

and genuinely relishing each 

bite — could be the remedy for a 

fast-paced Paula Deen Nation in 

which an endless parade of new 

diets never seems to slow a stampede 

toward obesity. 

Mindful eating is not a diet, or 

about giving up anything at all. 

It’s about experiencing food more 

intensely — especially the pleasure 

of it. You can eat a cheeseburger 

mindfully, if you wish. You 

might enjoy it a lot more. Or you 

might decide, halfway through, 

that your body has had enough. 

Or that it really needs some salad. 

“This is anti-diet,” said Dr. Jan 

Chozen Bays, a pediatrician and 

meditation teacher in Oregon and 

the author of “Mindful Eating: A 

Guide to Rediscovering a Healthy 

and Joyful Relationship with 

Food.” “I think the fundamental 

problem is that we go unconscious 

when we eat.” 

The last few years have brought 

a spate of books, blogs and videos 

about hyper-conscious eating. 

A Harvard nutritionist, Dr. 

Lilian Cheung, has devoted herself 

to studying its benefits, and 

is passionately encouraging corporations 

and health care providers 

to try it. 

At the Food and Brand Lab at 

Cornell University, Prof. Brian 

Wansink, the author of “Mindless 

Eating: Why We Eat More 

Than We Think,” has conducted 

scores of experiments on the psychological 

factors that lead to our 

bottomless bingeing. A mindful 

lunch hour recently became part 

of the schedule at Google, and 

self-help gurus like Oprah Winfrey 

and Kathy Freston have become 

cheerleaders for the practice. 

Could a discipline pioneered by 

Buddhist monks and nuns help 

teach us how to get healthy, relieve 

stress and shed many of the 

neuroses that we’ve come to associate 

with food? 

Dr. Cheung is convinced that 

it can. Last week, she met with 

team members at Harvard Pilgrim 

Health Care and asked them 

to spend quality time with a chocolate-covered 

almond. 

“The rhythm of life is becoming 

faster and faster, so we really 

don’t have the same awareness 

and the same ability to check into 

ourselves,” said Dr. Cheung, who, 

with the Vietnamese Buddhist 

monk Thich Nhat Hanh, co-wrote 

“Savor: Mindful Eating, Mindful 

Life.” “That’s why mindful eating 

is becoming more important. We 

need to be coming back to ourselves 

and saying: ‘Does my body 

need this? Why am I eating this? 

Is it just because I’m so sad and 

stressed out?’ ” 

The topic has even found its 

way into culinary circles that 

tend to be more focused on Rabelaisian 

excess than monastic 

restraint. In January, Dr. 

Michael Finkelstein, a holistic 

physician who oversees Sun- 

Raven, a holistic-living center in 

Bedford, N.Y., gave a talk about 

mindful gardening and eating at 

the smorgasbord-friendly headquarters 

of the James Beard 

Foundation in New York City. 

“The question isn’t what are 

the foods to eat, in my mind,” he 

said in an interview. “Most people 

have a general sense of what 

the healthy foods are, but they’re 

not eating them. What’s on your 

mind when you’re eating: that’s 

mindful eating to me.” 

For many people, eating fast 

means eating more. Mindful 

eating is meant to nudge us beyond 

what we’re craving so that 

we wake up to why we’re craving 

it and what factors might be 

stoking the habit of belly-stuffing. 

“As we practice this regularly, 

we become aware that we don’t 

need to eat as much,” said Phap 

Khoi, 43, a robed monk who 

has been stationed at Blue Cliff 

since it opened in 2007. “Whereas 

when people just gulp down 

food, they can eat a lot and not 

feel full.” 

It’s this byproduct of mindful 

eating — its potential as a psychological 

barrier to overeating 

— that has generated excitement 

among nutritionists like 

Dr. Cheung. 

The average American doesn’t 

have the luxury of ruminating 

on the intense tang of sriracha 

sauce at a monastery. “Most of 

us are not going to be Buddhist 

monks,” said Dr. Finkelstein, 

the holistic physician. “What I’ve 

learned is that it has to work at 

home.” 

To that end, he and others 

suggest that people start with 

a few baby steps. “Don’t be too 

hard on yourself,” Dr. Cheung 

said. “You’re not supposed to be 

able to switch on your mindfulness 

button and be able to do it 

100 percent. It’s a practice you 

keep working toward.” 

Dr. Bays, the pediatrician, 

has recommendations that can 

sound like a return to the simple 

rhythms of Mayberry, if not 

“Little House on the Prairie.” If 

it’s impossible to eat mindfully 

every day, consider planning 

one special repast a week. Click 

off the TV. Sit at the table with 

loved ones. 

“How about the first five minutes 

we eat, we just eat in silence 

and really enjoy our food?” she 

said. “It happens step by step.” 

Sometimes, even she is too 

busy to contemplate a chickpea. 

So there are days when Dr. Bays 

will take three mindful sips of 

tea, “and then, O.K., I’ve got to 

go do my work,” she said. “Anybody 

can do that. Anywhere.” 

Even scarfing down a burrito 

in the car offers an opportunity 

for insight. “Mindful eating 

includes mindless eating,” she 

said. “ ‘I am aware that I am eating 

and driving.’ ” 

“So many people now have 

found themselves in an adversarial 

relationship with food, 

which is very tragic,” Dr. Bays 

said. “Eating should be a pleasurable 

activity.” NYT 


www.huffingtonpost.com


February 12, 2012 C7 

Health 

Teaching good 

communication skills 

has been mandatory 

for medical schools 

because of research 

showing that good 

patient-doctor 

communication can 

lead to improved 

patient satisfaction 

and better health care 

outcomes. 

By Pauline W. Chen, M.D. 

What does your 

doctor’s body 

language say to 

you? I recently 

read through a 

study published 

in The Journal of General Internal 

Medicine on the different ways 

that African-American and white 

doctors communicate nonverbally 

with older patients, and I was 

reminded of a former colleague, 

a specialist in brain tumors who 

stood out from the rest of us young 

doctors for two reasons. 

First, though a relative newcomer 

to the hospital, he had diagnostic 

skills equal to those of 

physicians many years his senior. 

Second, and not unusual for 

over a decade ago, he was one of 

the few African-American physicians 

there. 

One day I asked him to see one 

of my patients who had recently 

been given a cancer diagnosis. 

The patient, who was older and 

white, was sitting upright in his 

bed, surrounded by his wife and 

children, when we entered the 

room. But by the time we left, the 

patient, along with his relatives, 

was doing exactly what I was — 

leaning over and politely straining 

to hear what my colleague was 

saying. 

This brilliant doctor’s soft baritone 

voice was rendered even less 

comprehensible because he tilted 

his head down and spoke not 

toward us but at the door. Every 

so often he looked up and shared 

a radiant, even reassuring smile. 

But then he would look down 

again, shift his weight and continue 

speaking too softly to be intelligible. 

What Doctors are Telling Us 

Even When They’re Not Talking 

What puzzled me was that I 

didn’t normally think of this colleague 

as being that self-effacing. 

But when I described his visit a 

couple of days later to another colleague, 

a mutual friend, she immediately 

recounted a similar episode. 

“It’s weird, isn’t it?” she said. 

“He’s the smartest doctor in the 

hospital, but when he starts talking 

to some patients, it’s like he’s 

trying to disappear.” 

For nearly two decades, teaching 

good communication skills 

has been mandatory for medical 

schools because of research showing 

that good patient-doctor communication 

can lead to improved 

patient satisfaction and better 

health care outcomes. To this 

end, medical educators have developed 

a host of communication 

courses and workshops that combine 

lectures, self-assessments, 

video recordings and “standardized 

patients,” or actors in the role 

of patients. 

Tai Chi Benefits Patients 

With Parkinson’s 

Can tai chi, the ancient martial art, help alleviate 

Parkinson’s symptoms? Tai chi, an ancient martial art 

characterized by slow, flowing movement and meditation, 

helps improve balance and movement control 

for people with Parkinson’s disease. 

The finding, published in The New England Journal 

of Medicine, is the latest study to show the benefits 

of tai chi for people with chronic health problems. 

Past studies have shown that tai chi reduces falls and 

depression among the elderly, and lessens pain for 

patients with arthritis and fibromyalgia. 

In Parkinson’s disease, nerve cells in the brain that 

produce the chemical dopamine begin to die. Lower 

dopamine production can lead to tremors, balance 

problems, stiff facial expressions and muffled speech, 

among other problems. 

An estimated one million people in the United 

States have the disease, and another 60,000 receive 

the diagnosis each year. Although the condition usually 

develops after the age of 60, 15 percent of those 

who learn of the diagnosis are under 50. 

In the latest research, 195 people with movement 

and balance problems caused by Parkinson’s disease 

were recruited from four Oregon cities. The patients 

were divided into three exercise classes that met for 

an hour a day, twice a week. One group took part in 

an extensive stretching class, another was taught resistance 

training, and the third group performed tai 

chi. 

More recently, many schools 

have broadened their courses to 

include “cultural competency,” or 

the ability to communicate with 

those from different racial, ethnic 

and social backgrounds. Studies 

have shown that while a patient’s 

race and ethnicity can be linked 

to sharply different treatment 

courses and quality, better communication 

between doctors and 

patients of different backgrounds 

can reduce the disparities. 

Despite these tremendous efforts, 

there is one area of communication 

to which few schools 

have devoted significant time or 

resources: body language and facial 

expressions. 

Now a small but growing body 

of research is revealing that the 

nonverbal component of the patient-doctor 

interaction — the 

subtle gestures, body positions, 

eye contact, touch and expressions 

that pass between individu- 

After six months, patients in the tai chi group performed 

better on a number of measures related to 

strength, movement control, balance, stride length 

and reach. Resistance training also offered some 

benefits, and both the tai chi and resistance training 

groups had fewer falls than the stretching group. 

The findings are good news for people with Parkinson’s, 

who often lose the ability to maintain standing 

balance and have difficulty walking and are at 

risk for frequent falls. Although some symptoms of 

Parkinson’s, like tremors, can be relieved by drug 

therapy, balance and walking problems are typically 

not helped by drug treatment. 

“Current medications do not work well in terms of 

providing relief for impaired balance or postural instability,” 

said Fuzhong Li, a research scientist at Oregon 

Research Institute in Eugene and the study’s lead author. 

“In fact, patients suffer a great deal of medication 

side effects which may lead to further deterioration 

in balance control.” 

Why tai chi helps people with Parkinson’s isn’t entirely 

clear. Even for a healthy person it can be hard to 

maintain balance and stability while performing the 

continuous, rhythmical, weight-shifting movements 

of tai chi. It may be that practicing tai chi trains the 

parts of the brain that control balance and movement 

to adapt more quickly in response to the motor 

control challenges of Parkinson’s. NYT 

www.1dental.com 

als — is as critical a part of communication 

as verbal expressions. 

And nonverbal cues may, in fact, 

be more reflective of the biases 

faced by doctors and patients. 

In this recent study, for example, 

a group of medical sociologists 

analyzed the interactions 

between 30 primary care doc- 

Now a small but 

growing body of 

research is revealing 

that the nonverbal 

component of the 

patient-doctor 

interaction — the 

subtle gestures, 

body positions, eye 

contact, touch and 

expressions that pass 

between individuals 

— is as critical a part 

of communication as 

verbal expressions. And 

nonverbal cues may, in 

fact, be more reflective 

of the biases faced by 

doctors and patients. 

tors and more than 200 patients 

over age 65 and found that white 

physicians tended to treat older 

patients similarly, regardless 

of race. Black physicians, on the 

other hand, often gave white patients 

contradictory signals, mixing 

positive nonverbal behaviors, 

like prolonged smiling or eye contact, 

with negative ones, like creating 

physical barriers by crossing 

the arms or legs. 

The finding was reminiscent 

of earlier studies on interactions 

between female doctors and male 

patients, in which the doctors 

tended to give the patients conflicting 

nonverbal cues, combining, 

for example, smiles with a 

negative or anxious tone of voice. 

These mixed signals, said Irena 

Stepanikova, the lead author of 

the recent study and an assistant 

professor of sociology at the 

University of South Carolina in 

Columbia, are a result of dealing 

with “a status in our society that 

is devalued.” Rather than being 

expressed explicitly, biases regarding 

race and gender tend to 

be expressed “in behaviors not 

consciously controlled,” she said. 

The researchers also found 

that despite the contradictory 

cues, the black doctors were 

generally more skillful in using 

positive nonverbal behaviors 

than their white colleagues. They 

were, for example, better able to 

use prolonged eye contact, more 

open body positions, facial expressions 

and even light touch to 

encourage patients and convey respect, 

understanding, availability 

and attention. “Patients feel vulnerable 

and search for nonverbal 

cues,” Dr. Stepanikova noted. “If 

the doctor nods when the patient 

is talking but keeps looking at the 

chart, the patient will wonder if 

the doctor is really taking her seriously.” 

Dr. Stepanikova and her colleagues 

believe that greater emphasis 

on nonverbal communication 

can help medical educators 

address some of the social biases 

that affect patient care. But they 

acknowledge that the process will 

be challenging. Research in this 

area is still relatively sparse, and 

few medical educators are well 

versed in this topic. Moreover, 

even experts like Dr. Stepanikova, 

who needed to devote several 

hours to analyzing just portions 

of a single patient-doctor visit, are 

unsure of how researchers and 

educators can measure the nuances 

and complexities of nonverbal 

communication accurately, 

consistently and efficiently. 

“We all want to be as egalitarian 

as possible,” Dr. Stepanikova 

said. “But what is difficult 

is knowing what and when to 

change, because so much of nonverbal 

communication happens 

outside of our conscious awareness.” 

NYT

C8 


Photo Essay 

TEXT AND PhOTOS BY NANDI NANTI 

A modification workshop that provides 

headlight parts and body kits named Balu Oto 

Work (BOW). It is located at Jalan Pramuka, 

No. 53 Giwangan, Umbulharjo, Yogyakarta. 

The modification workshop is owned by a 

young university lecturer in Yogyakarta, 

Andika Kairuliawan, who has the passion and 

hobby for automotive modification. 

BOW has been producing various kind of 

headlights modification from different types of 

motorcycles, such as Yamaha Byson, Yamaha 

V-Ixion, Suzuki Satria FU, Kawasaki Ninja, 

and other types of sport motorcycles. 

The headlights installation process is fairly 

easy. Just lift the headlamp and the original 

bracket on the motor, and then attach the 

light model that has been ordered according to 

customer requirements. The price of modified 

headlights is between Rp 300-400 thousand 

per unit. 

For full body modification, the cost may reach 

Rp 5-7 million, and it takes about one month 

for full body modification. In addition, for 

orders outside Yogyakarta, shipping cost will be 

added. 


Balu Oto Work, 

A Lecturer’s Business and Hobby

AusAID to Help Improve NTB Civil Servants ... - The President Post

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