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IDR 20,000

The number of Russian tourists to Bali increased 48.5% in a month from 5,202 in October to 7,726 in Novem-ber 2011.

Actually, more Russian tourists wished to come to the Indonesian island para-

WHAT'S ON 2012

PAGE A5

THE ECONOMY INVESTMENTBUSINESS

Number of Russians to Bali Up 48.5%

President Invites Hakka Chinese Bizmen to Invest in MP3EI Projects President Yudhoyono asked around 5,000 invitees who attended the gathering not to miss the momentum to create various new opportunities.

PAGE B1

Wanandi Slams Demonstrators as Threat to InvestmentUnless they were stopped they could erode the country`s image as an attractive and secure foreign investment destination.

PAGE B3

Pertamina Set to Invest Rp52.8tPertamina has set the target of net profit for 2012 at Rp23.5 trillion, up 32% from the net profit forecast of Rp20.7 trillion for this year.

PAGE C1

Calendar of Events 2012 The year 2012 has been included in many prophecies and is considered to be very important spiritually. But we’re not talking about any spiritual events or prophecies right now; here are scheduled sensible events that deserve out attention.

When he was a p p o i n t -ed the CEO & President of Garu-da Indone-sia in March

2005, Emirsyah wasted no time to revamp the company’s man-agement. At the time, Garuda In-donesia was still emgoiled in a messy and disorganized manage-ment. The airline was experienc-ing operational loss with 85% of its routes being non-optimal that incurred losses for the company.

Since then, he has fixed many things, starting from rebuilding consumer trust to building com-munications from the top man-agement level to the lower man-agement level. Emirsyah recently said that the company’s revenue had risen 42% to Rp 22.97 trillion ($2.5 billion) in the January-No-vember period from a year earli-er. Net income jumped 124% to Rp 725 billion, exceeding its full-year 2011 estimate of Rp 702 billion.

Emirsyah further said that net income could increase to Rp 1 tril-lion this year from Rp 515.5 bil-lion in 2010. Revenue will proba-bly rise to Rp 26 trillion this year from Rp 19.5 trillion recorded in 2010, he said. The company ex-pects its number of passengers to increase by 20% in 2012, aided by additional aircraft and new do-mestic and international routes, Emirsyah said. The airline car-ried 15.45 million passengers in the 11 months through Novem-ber, up 36% from the same period in 2010, and it expects to fly a to-tal of 17 million this year.

“This is not the success of one or two individuals but the success of a management that was willing to improve and change,” he said.

Previously, in 2001, Emirsyah was Garuda Indonesia’s finance director. With his rich experience in the financial sector which he gained from several companies like Price&Waterhouse, Bank Ni-aga and Bank Danamon, he suc-cessfully restructured Garuda In-donesia’s $1.8 billion debt, thus rescuing the flag carrier from go-ing bankrupt.

His success in restructuring Garuda’s finance in 2001 landed him the “Financial Restructur-ing of the Year” title by New York-based “Travel Finance” magazine. In 2003, Emirsyah left his post as Garuda Indonesia’s finance di-rector for a new position as Dep-uty CEO Bank Danamon, but re-turned to Garuda Indonesia to assume a new role after the gov-ernment appointed him as CEO and President in March 2005. Emirsyah has also been elected

ra Indonesia on “super premium service” for premium customers of the two state companies. The MoU will be elaborated in a special co-operation agreement for premium customers which will include spe-cial pre-flight and post-flight ser-vices in both domestic and inter-national flights. Under the MoU, BNI Premium customers and Platinum Garuda customers who want to take domestic and inter-national flights may use a heli-copter service from Jakarta and its surrounding areas to go to the Soekarno-Hatta airport.

To support the super premi-um service program, the coopera-tion will include other special pro-grams such as joint promotions, point rewards, development of tourism packages, and other pro-grams for BNI Emerald, BNI Plat-inum Card and Garuda Frequent Flyer Platinum card holders.

Next year Garuda Indonesia will add five more small jets. It will also open new routes, 16 domes-tic routes and three internation-al routes (Taipei, India, and Hane-da, Japan).

Emirsyah Satar SoaringWith Garuda Indonesia

The President Post/Nandi Nanti

JAKARTA (TPP) – Industry players and the general public agree that Emirsyah Satar has been successful in improving the performance and service quality of Garuda Indonesia since he took the helm and turned the flag carrier into an airline that makes Indonesians proud of.

CEO & President of Garuda Indonesia Emirsyah Satar. In 2001, Emirsyah was Garuda Indonesia’s finance director. With his rich experience in the financial sector which he gained from several companies like Price&Waterhouse, Bank Niaga and Bank Danamon, he successfully restructured Garuda Indonesia’s $1.8 billion debt, thus rescuing the flag carrier from going bankrupt. His success in restructuring Garuda’s finance in 2001 landed him the “Financial Restructuring of the Year” title by New York-based “Travel Finance” magazine.

as Chairman of INACA (Indone-sian National Air Carrier Associa-tion) since 2008 and as a member of Board of Governors IATA (Inter-national Air Transport Associa-tion) since 2010.

Garuda Indonesia current-ly has around 1,000 pilots, both local and foreign, the number of which will be increased by 400 more pilots by 2015.

The airline launched Garuda Indonesia Experience program at the end of 2009 as a form of service quality that offers Indonesian characteristics derived from Indonesian culture, which adopts five senses: sight, sound, taste, scent, touch.

“Right now we have around 200 young pilots undergoing training and they will be ready next year,” Emirsyah explained. Pilot short-ages can be overcome with open-ing aviation schools such as the one in Jababeka. “I think that’s a positive thing, so why not?”, he said.

The airline launched Garuda Indonesia Experience program at the end of 2009 as a form of ser-vice quality that offers Indonesian characteristics derived from Indo-nesian culture, which adopts five senses: sight, sound, taste, scent, touch.

The aim of Garuda Indonesia Experience is to offer foreign pas-sengers a taste of Indonesia while still on board of Garuda Indone-sia airplane before they even en-tered the country, and for Indone-sians going abroad to make them feel still at home until they really get off the plane. There is also the “Quantum Leap 2015” program in which Garuda Indonesia is ex-pected to operate 154 aircraft by 2015, up from a total of 88 aircraft currently.

Another breakthrough that Garuda Indonesia will make in 2012 is to collaborate with various parties as part of its commitments to improve services for its custom-ers, especially its premium cus-tomers.

One of the examples is the re-cent signing of MoU between Gar-uda Indonesia and Bank Nega-

Indonesia s Composite Stock Price Index (CSPI) is expected to be in the range of 3,830-3,850 points at the end 2011, stock market an-alyst David Nathanael said Friday, as “funds manag-ers would still be engaged in window-dressing activities.”

"We are optimistic that the Indonesian Stock Ex-change index (BEI) will be able to achieve that range, if

CSPI to be in 3,830-3,850 Range by Year End

fund managers continue buying shares, thereby pushing up stock prices," he said.

Nathanael said fund manag-ers window-dressing activity was already pushing stock prices up-ward although the share transac-tions in the IDX were still relative-ly low.

Nathanael said market activ-ity had been sluggish and only showed a relatively small volume of transactions of 640 million

dise, but they had trouble in fly-ing there, a tourist guide, Made Putrawan, said in Denpasar Fri-day, Antara reported.

Most of the Russian tourists had to fly to Bali by chartered planes.

The Bali tourism office said

that almost every month the number of Russian tourists to Bali increased, especial-ly in the past 11 months. Un-til November the number had reached 63,916, or 2.55% of the total number of foreign tourists reaching 2.5 million.

shares with a value of Rp430 billion, far less than the usu-al average of Rp3,.6 trillion to Rp4 trillion.

The IDX opened 0.23% or eight points higher at 3,817 but still had the opportunity to reach 3,830. Foreign par-ticipants on Thursday (Dec 29) had made share pur-chases amounting to Rp280 billion which pushed the in-dex to the 3,800 point level.

OpinionThe President Post www.thepresidentpost.comDecember 12, 2011A2

The President PostOFFICEMenara Batavia 25th Fl. Jl. K.H. Mas Mansyur Kav. 126Jakarta 10220, IndonesiaPhone : (021) 572 7337Fax : (021) 572 7338Email : ceo@thepresidentpost.comWeb : www.thepresidentpost.com

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“Economic Concentric Circles”In terms of economic “concen-

tric circles” Indonesia belongs in the first place in the South-East Asia region, composed of ten ASE-AN countries which have been do-ing quite well. ASEAN is on the road to establish its Economic Community by 2015. It is expect-ed that this will further strength-en the region’s economy. The region is has the potential to be-come an important powerhouse in the regional economy.

Secondly, Indonesia is fortu-nate to be counted as a prominent member in the fast moving East Asian region, with the two giants in the lead, China and India.

The East Asia region has still to design and agree on its regional architecture. The responsible in-stitution, the East Asia Summit, covers some 20 countries com-posed of developed countries such as Japan, Australia and New Zea-land as well as developing coun-tries which includes China, In-dia, South Korea and the ASEAN

countries. Russia and the United States are participating countries in the East Asia Summit. There is no inkling, however, where the East Asia region intends to go.

Meanwhile, active market forc-es are pushing towards closer in-tegration among the countries in the East Asian region. This trend is expected to continue in the de-cades to come.

Thirdly, Indonesia is also part of the very large Asia-Pacific region which covers Asian economies, including Russia, USA, Canada and Mexico, Chile and Peru.

As the United States is anxious to forge closer ties with Asia, the Pacific region could be back again on the screen of the Asian coun-tries.

As can be seen from the map, the East Asia-Pacific region occu-pies a very significant part of the world, in terms of population but also in terms of economics.

According to the World Bank robust domestic consumption in

Indonesia’s Strategic and Economic Position

By Atmono Suryo

ADVISORAli Basyah Suryo

CEO & EDITOR IN CHIEFRachmat Wirasena

CONTRIBUTORSAtmono SuryoCyrillus Harinowo HadiwerdoyoThomas W. ShreveJeannifer Filly SumaykuEka Putri

EDITORIAL & CIRCULATION DEPARTMENTSrimay Noviani

LAYOUT & DESIGNMohamad Akmal

PHOTOGRAPHERNandi Nanti

HEAD OF MARKETINGDetia H. Rais

HEAD OF SALESErni Imansyah

WEB DEPARTMENTReza Ganesha Partakusuma

Indonesia is most fortunate to be

strategically located in East Asia, a dynamic

regional economic and business environment. The region is presently

attracting world attention and is becoming an

important driving force of the global economy.

Strategic Location

IIndonesia’s internal situ-ation is caught in a mis-erable situation because of such sensitive issues as rampant corruption, poor rule of law, no good

governance, weak leadership, de-clining morals etc. However, Indo-nesia’s external economics is in a much better situation. The coun-try’s overall international stand-ing is quite high, and its position in the regional and global econo-my is remarkably on the rise.

On account of its econom-ic performance Indonesia is rat-ed among the Top Ten Emerging countries, together with Brazil, China, India, South Korea, Tur-key, Mexico and others. They are among the ones reshaping the global economy, in the sense that developing countries are now in a better position and occupying a much bigger share of the world economy.

pabilitiesVery low “doing business” rat-•ing – 121th out of 183 countries compared to Singapore (1); Ma-laysia (21); Thailand (19); Phill-ippines (134)Low human development in-•dex, 124th out of 187 countries (compared to Singapore 26; Ma-laysia 61; Thailand 103; Phillip-pines 112)Still overall low international •confidence in Indonesia’s busi-ness, though many recognize very well the country’s good po-tentialsNot enough strong national •confidence and forceful spirit needed to spur the country to much higher rates of economic development and growth

It is becoming urgent to bring improvements to those weak eco-nomic areas, as they have become big economic obstacles and a de-terring factor to achieve further progress.

The writer is former ambasaador to the EU

tries in the regionThere is the impression, howev-•er, that Indonesia is not quite at ease yet in this highly competi-tive region.For the years ahead it would •be sensible to give high priori-ty to the entire region on the ba-sis of economic “concentric cir-cles”, in particular to secure the implementation and well-func-tioning of the ASEAN Economic Community by 2015.To promote East Asia”s closer •integration and to strengthen the Asian region to be on a par with Europe and North Amer-ica, and wherever possible to develop the larger Asia-Pacific Economic Cooperation at a lat-er stage.

It must be stressed, however, that in many areas Indonesia has its weak spots, including in such areas as:

Very low competitive edge – ex-•tremely weak infrastructure -- low productivity – low capacity building activities – no strong private sector position and ca-

the region (in particular in the East Asia region) has been a key factor for the region to lead glob-al economic growth. In addition, intra-regional trade has also sup-ported this momentum factor.

The developing economies in the region have recovered well in 2010. Three countries in East Asia, China, India and Indonesia became the models of solid recov-ery, by achieving high economic growth.

As to the year 2011, the United Nations and its agencies forecast that the region is set to grow by 7.3% in 2011, much higher than the growth of the global economy. However, this growth is accom-panied by fresh challenges: high food and fuel prices and volatile capital inflows.

SOME IMPORTANT POINTS TO NOTE

Being located quite well in such •a dynamic and potential region, it is of extreme importance for Indonesia to continue to boost its good relations with the coun-

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The President PostT H E S P I R I T O F I N D O N E S I A

Indonesia’s PositionAn important factor to note

on Indonesia’s position is that in terms of geo-economics the coun-try is very well-located. Indonesia is most fortunate to be strategical-ly located in East Asia, a dynamic regional economic and business environment. The region is pres-ently attracting world attention and is becoming an important driving force of the global econo-my.

In terms of geography Indone-sia is part of the South East Asia region; part of East Asia and is lo-cated in the larger Asia-Pacific region. A region stretching from Asia to the America’s which hosts a number of high-income ad-vanced economies with high tech-nologies.

In this vast East Asia–Pacif-ic region Indonesia has become one of the key leading and well-re-spected countries. This is quite a big accomplishment for the coun-try which is internally still caught in a muddling process as indicat-ed before.

The East Asia-Pacific region occupies a very significant part of the world, in terms of population but also in terms of economics.

In this vast East Asia–Pacific region Indonesia has become one of the key leading and well-respected countries. This is quite a big accomplishment for the country which is internally still caught in a muddling process as indicated before.

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The President Postwww.thepresidentpost.com December 12, 2011 A3

The Region

Turbulent Times

AAs we are leaving the four crucial years be-hind us, the years 2008/9 up to 2011, and enter the new year of 2012, we will

undoubtedly note that dark clouds are still in the air. This means that the world might continue to face turbulent times, at least for the coming months ahead. It will all depend upon the steps taken by the advanced countries to deal with the Euro-zone debt crisis.

The global recession is taking longer than predicted before. The road to recovery also appears to be a long, rocky and windy one, lon-ger than estimated before. They are clouding the economies of the whole world, stretching even not only to Asia but also Latin Amer-ica and Africa.

Global WeaknessesWeak global growth and declin-

ing confidence were dominating factors throughout the year 2011. There are still different projections for the year 2012, but it appears

na, India and Brazil. An impor-tant factor in the economy of the developing countries is domes-tic demand. Developing coun-tries have also led the recovery of international trade. Building on ties among developing countries which are moving up quite sig-nificantly, this South-South rela-tions should be encouraged and promoted.

Regional Grouping Regional grouping among de-

veloping countries appears to be

a must to strengthen their econ-omies and position in the global economy. In this connection one should refer to the regional group-ing among the countries in South East Asia which now covers 10 countries. It will soon become 11 with the addition of Timor Leste.

This regional grouping called ASEAN has the pontential to be-come another powerhouse in East Asia aside from China and India. ASEAN has a population of ap-proximately 600 million people, 8% of the world population.

CIMB Niaga ASEAN, with its $1.8 trillion GDP, is following China and Brazil as one the three larg-est emerging economies in the world. It will be most surprising for many of the Indonesian com-munity (which includes a large number of pessimistic observers) that the combined ASEAN econo-my is larger than many developed countries such as Canada, Rus-sia, Spain, Australia and many other developed countries in the Euro-zone, including the Nether-lands.

To be among the ten largest economy in the global economy ASEAN could and should play a leading role in the world with the understanding that economical-ly and politically ASEAN would strengthen its unity and cohe-siveness. To that end, one would greatly respect ASEAN’s strate-gic decision to adopt the ASEAN Community grand design.

In terms of GDP and among the ASEAN countries, Indonesia is the largest country, almost twice as big as Thailand and three times bigger than Malaysia. But in tems of GDP per capita Indonesia is among the six lowest countries, surpassed by Singapore, Brunei Darussalam, Malaysia and Thai-land (Figure 3).

Being by far the largest econo-my in ASEAN and its tremendous international experiences, Indo-nesia is called upon to think big and be pro-active and to contin-ue to be in the lead within ASE-AN. It has done very well during its chairmanship, and it should aim further to strengthen ASEAN as an economic as well as a po-litical powerhouse in the regional and global setting.

The writer is former ambassador to the EU

Turbulent Times Cloudthe Global Economy

In 2010 its combined nominal GDP has grown to $1.8 trillion. It is rightly being observed that if ASEAN were a single country, it would rank as the ninth larg-est economy in the world and the third largest in Asia in terms of nominal GDP. These two factors, large GDP combined with grow-ing domestic demand and pur-chasing power plus its natural re-sources give ASEAN another edge in the global economy.

According to data compiled by

The global recession is taking longer than predicted before. The road to recovery also appears to be a long, rocky and windy one, longer than estimated before. They are clouding the economies of the whole world, stretching even not only to Asia but also Latin America and Africa.

By Atmono Suryo that the many uncertainties in major developed countries will continue to drag global recovery.

The following IMF chart shows that global weaknesses are pro-jected to persist for the year 2012, affecting the world GDP growth, the Euro area, the US and even Russia, China and APEC (Asia-Pacific) countries (Figure 1).

As times goes on during the first half of 2012, we will see more clearly how the global economy will develop with the hope that re-covery will finally be on a better footing.

Main Drivers of Global Recovery A brighter part looming on the

horizon is that developing coun-tries are the ones which continue to gain strength, especially since the third quarter of 2009. In fact, developing countries growth has been the main driver of the glob-al recovery. They have been con-tributing more than half of the ex-pansion of the world economy.

According to the World Bank the rebound has been led by large emerging countries in Asia and Latin America, in particular Chi-

Figure 1. Weakness is Projected to Persist

WEO Real GDP Growth Projections (percent change from a year earlier)

World Euro area Adv. APEC

U.S. Japan Emg. APEC

China Russia Mexico

2011 (Sep 2011) 4.0 1.6 1.6 1.5 -0.5 7.6 9.5 4.3 3.8

2011 (Apr 2011) 4.4 1.6 2.8 2.8 1.4 7.8 9.6 4.8 4.6

2012 (Sep 2011) 4.0 1.1 2.3 1.8 2.3 7.3 9.0 4.1 3.6

2012 (Apr 2011) 4.5 1.8 2.9 2.9 2.1 7.7 9.5 4.5 4.0

Source: IMF

Figure 2. World Economies

Source: CIMB Niaga

14.62

5.75 5.39

3.302.56 2.26 2.04 2.02 1.8 1.56 1.52 1.48 1.43 1.37 1.22 1.00

USA China Japan Germany France UnitedKingdom

Italy Brazil ASEAN Canada ASEAN-5 Russia India Spanish Australia Mexico

USD Trillion, GDP

Figure 3. GDP ASEAN countries

Source: CIMB Niaga

GDP ASEAN Countries, USDb, 2010

695.1

312.6

219.0217.4189.1

102.035.612.011.46.3

Lao PDR

Cambodia

Brunei Daruss

alam

Myanmar

Vietnam

Philippines

Singapore

Malaysia

Thaila

nd

Indonesia

Aerofood ACSAerowisata Park

Jl. Prof. Dr. Soepomo No. 45

Tel. +62 21 8370 5076Fax.+62 21 8370 5012

Hospitals,Oil Mining & Gas industries and Townsite catering

The EconomyThe President Post www.thepresidentpost.comDecember 12, 2011A4

RI Enjoys First-ever Surplus in Trade with China

Indonesia for the first time ever en-joyed a surplus of $106.9 million in its non-oil/non-gas trade with China in Oc-tober 2011, the Central Statistics Agency (BPS) said.

In October 2011, Indonesia`s exports to China were valued at $2.24 billion while its imports from the Asian eco-nomic giant reached $2.13 billion, BPS Deputy Head for Distribution and Ser-vice Statistics Djamal said on Thursday.

Director General of Foreign Trade at the Trade Ministry Deddy Saleh said the surplus was fueled by an increase in the export of crude palm oil, industrial goods, coal and other mining products.

Since 2008 Indonesia had recorded a deficit in its trade with China. BPS re-corded a decline in the deficit of Indonesia`s trade with China only in June 2011 when it fell to $365.2 million from an average of $500 million previously. The defi-cit rose again to $384 million in July 2011, plunged to $61 million in August 2011 and moved up again to $125.5 million in September 2011.

Indonesia`s exports to China mainly include crude palm oil, oil and gas to China while its imports from the latter cover electronic goods, synthetic fiber and tur-bine.

Ten Consortiums Pass Jakarta MRT Project Prequalification BidA total of 10 consortiums or joint operation contractors have passed the

prequalification tender for the construction of the first phase of the Jakarta Mass Rapid Transport (MRT) project, an official said.

"The MRT project will link Lebak Bulus in South Jakarta with the Hotel Indonesia Traffic Circle in Central Jakarta (the north-south phase)," PT MRT Jakarta President Director Tribudi Rahardjo said here recently.

Based on data at PT MRT, 13 consortium bidders took part in the prequalifi-cation tender. Of the 13 bidders, five were said to be qualified for the next MRT elevated project tender and five others for the MRT`s underground section, while the other three failed the prequalification.

Tribudi said the ten consortiums were expected to follow the next tender which would be called for the physical construction of the project in January next month. Five consortiums which passed the tender for the construction of the un-derground segment were Kajima-Waskita Joint Operation (JO), Obayashi-Shimizu-Jaya Konstruksi-Wijaya Karya JO, SMCC-HK JO, Taisei-PP JO and Tokyo-Adhi JO.

"The five consortiums for the elevated section of the MRT incude Hazama-Murinda Iron Steel JO, SMCC-NK JO, Sunitomo-Adhi JO, Tekken-Hutama-Marube-ni JO and Tokyo-Wika JO," Tribudi said.

"The 10 consortiums have the right to take part in the tender of the MRT physi-cal projects. They will compete to win 6 packages of the MRT physical construc-tion," he said.

ECONOMIC UPDATES

President Susilo Bam-bang Yudhoyono, Home Af-fairs Minister Gamawan Fauzi and Central Kaliman-tan Governor Teras Narang on Friday discussed the planned construction of a railway system in Central Kalimantan.

Following the meet-ing at the presidential of-fice, Gamawan Fauzi said the discussion among oth-er things touched on the question in which direction the railway system should be built, whether it was to-ward the east or toward the south.

The president asked that the railway construction concept be finalized. "Next month, we will present the concept in greater detail in-cluding a concrete plan, the financing source and tim-ing," the minister said.

For his part, Governor Teras Narang said he had given the president relevant information on the railway system construction plan, "I explained there are now four lead participants in the auction we have initiated on the project. They will sub-mit their proposals in May and the winners will be de-cided later," he said.

Teras said he did not re-member the names of the bidders but added that they came from China, Japan and a number of European countries. "The value of the project is about Rp26 tril-lion," he said.

PresidentHolds Talks onC. Kalimantan Railway Project

The growth of the non-oil/non-gas commodity processing industry was higher than that of the gross domestic product(GDP) which reached 6.54% in the same period.

Industry Minister MS Hi-dayat said on Wednesday the national industry s performance in the third quarter of 2011 was quite

promising, with the non-oil/non-gas commodity processing indus-try growing 6.98%.

The growth of the non-oil/non-gas commodity processing in-dustry was higher than that of the gross domestic product(GDP) which reached 6.54% in the same period, he said.

"Cumulatively, the non-oil/non-gas commodity processing industry in the third quarter of

2011 grew by 6.49%, well above the growth of the non-oil/non-gas commodity processing industry in 2010 which only reached 5.09%. The 6.49% growth rate was the highest since 2005," he said.

Until the third quarter of 2011 the base metal and steel indus-try recorded the highest growth of 15.03% among those grouped in the non-oil/non-gas commodity processing industry, he said.

"The textile product and foot-wear industry expanded by 8.63% and the food, beverage and tobac-co industry grew by 7.29%," he said.

National Industry Figuresin Q3 Promising: Minister

Meanwhile, the non-oil/non-gas commodity processing industry s export performance also contin-ued to show a positive trend, with non-oil/non gas exports in the January-September 2011 peri-od growing 33.4% to $91.8 billion compared with the same period last year, he said.

Likewise, investment in the in-dustrial sector until the third quarter of 2011 also rose signifi-cantly. "Domestic investment to-taled Rp52.98 trillion, far higher than Rp25.61 trillion throughout 2010, while foreign investment reached $14.34 billion, far higher than throughout 2010," he said.

Industry Minister MS Hidayat said the government would build around 120 industries in 2012 to support the implementation of Indonesia s Economic Develop-ment Acceleration and Expansion Master Plan (MP3EI), especially in Java.

"In the Java corridor, the focus will be on toll road and industrial center development. All programs are downstream and I myself will lead development in the second corridor of Java. More than 120 industries are ready for ground-breaking in 2012," he said here on Tuesday.

Investment meanwhile was es-timated to be higher than initial-ly predicted and the government had admitted the rise in the need for investment for the development of the six economic corridors. "In-deed it is higher than initially pre-dicted, far higher," the chief of the Task Force for the Java Corridor of the MP3EI, Dedy Priatna said not long ago.

Dedi said investment in the Java corridor would be needed for the development of food and beverage industries, motor vehi-cle and car industries and ship building industries.

Govt to Build 120 Industries to Support MP3EIIn connection with that he

would re-confirm and ask again the commitment of busi-nesses or private sectors with regard to seek clear informa-tion about their investment.

Infrastructure development projects in the 2012 MP3EI would cost Rp350.1 trillion and ground breaking would be done on 73 of them. From May in 2011 the MP3EI program has cost Rp461.6 trillion involving a total of 91 infrastructure and economic development proj-ects.

The funds to be used for de-velopment projects in one would reach Rp1000 trillion in addi-tion to funds from the national budget.The funds for infrastruc-ture development in 2011 from the national budget reach around Rp20.6 trillion. For 2012 they will reach Rp36.7 trillion.

For 2013 to 2014 the funds from the national budget for the MP3EI projects will reach Rp300 trillion. So, from 2011 to 2014 total nation-al budget funds for the MP3EI in-frastructure projects would reach Rp363.5 trillion.

"Domestic investment totaled Rp52.98 trillion, far higher than Rp25.61 trillion throughout 2010, while foreign investment reached $14.34 billion, far higher than throughout 2010."

Industry Minister MS Hidayat

The President Postwww.thepresidentpost.com December 12, 2011 A5

The Economy

President Susilo Bam-bang Yudhoyono held a meeting with represen-tatives of Asia s Hak-ka Chinese communi-

ty and asked them to participate in MP3EI (Economic Development Acceleration and Expansion Mas-ter Plan) projects.

"I invite you first as business players in Indonesia who certain-ly wish to serve your own country in an exemplary way by investing in areas you yourselves choose and think are the best for you," the president said at the meeting with the Association of Prosper-ous Hakka Indonesians (PHIS) at Hall D of the Jakarta Exhibition Arena here on Wednesday.

He said foreign investors were

expected to come to Indonesia in larger numbers in the days ahead but before that happened he wished to offer existing invest-ment opportunities to domestic business players first.

President Yudhoyono asked around 5,000 invitees who attend-ed the gathering not to miss the momentum to create various new opportunities. Through economic mechanisms, he said, businesses could also help improve the wel-fare of the Indonesian people by reducing poverty and unemploy-ment.

"Do not wait. To those who can invest, mobilize businesses, let us cooperate to invest, develop the economy so that all people can enjoy the benefits," he said.

President Invites Hakka Chinese Bizmen to Invest in MP3EI Projects

PHIS`s chief patron Murda-ya Poo in his speech called on the Hakka Chinese community numbering around six million to invest in the country. "Hakka community as economic play-ers, please hurry, use your sav-ings to invest in Indonesia. Do not worry about the imperfect regulations or bureaucrats," he said.

President Yudhoyono in the company of First Lady Ani Yud-hoyono said Hakka Chinese had the same rights and obligations as other Indonesian citizens. He called on them to participate in maintaining security and order as well as political and social stability for the sake of a better life for the nation.

President Yudhoyono asked around 5,000 invitees who attended the gathering not to miss the momentum to create various new opportunities.

The amount of Indonesian migrant workers remittances up to October this year was re-corded at $5.6 billion or about Rp51.07 trillion, a manpower official said.

Deputy chief of the Indo-nesian Agency for Manpower

Protection and Placement Over-seas (BNP2TKI) Lisna Y Poeloen-gan said here on Thursday the amount of migrant workers re-mittances was recorded by the Bank Indonesia (BI/the central bank).

The remittances came from In-

RI Migrant Workers Sent Home $5.6b up to Octoberdonesian migrant workers in var-ious regions in the Middle East, Asia - Pacific, Europe and the United States, Lisna said. "Most of the funds were transferred by mi-grant workers who worked in the informal sector," she said.

Of the total amount, $2.2 bil-

A finance ministry official said government capital spending in 2012 would be directed mostly for basic infrastructure development projects.

"Especially infrastructure proj-ects of the ministry of public works such as road, bridge, irriga-tion network, airport and seaport development projects," the direc-tor general of budget affairs, Her-ry Purnomo, said here on Mon-day.

He said allocation of capital spending would also be done to eradicate obstacles and improve domestic connectivity. "It also in-cludes projects in the MP3EI, proj-ects financed by the government

to increase inter-regional connec-tivity," he said.

He said the capital spending would also be aimed at improving the capability of national defense with regard to building a nation-al defense system and supporting funding for multi-year activities. Other targets include increasing the capacity of mitigation and ad-aptation to the negative impact of climate change and readiness for dealing with natural disasters, he said.

The allocation of capital spend-ing in the 2012 budget is expect-ed to reach Rp168.1 trillion or 2.1% of the country s gross do-mestic product, he said. The total

Capital Spending to Focuson Infrastructure

is an increase of Rp27.2 trillion or 19.3% from this year which was set at Rp141 trillion or 2.0% of the GDP. Until December 1, 2011 how-ever capital spending had reached only 51.3% or Rp72.3 trillion.

Finance Minister Agus Mar-towardojo has ordered ministries to increase their quality of plan-ning and budgeting as well as competency in absorbing capi-tal so that they would not be eas-ily involved in conflict of inter-ests. "Our challenge is increasing competency because the volume of capital is increasing. Careless-ness could make officials involved in a conflict of interest be used," he said.

lion dollars came from workers in the Middle East, $3.2 bil-lion dollars from those in the Asia-Pacific region, $111.7 mil-lion dollars from those in the American region, $19.5 million from those in Europe and Aus-tralia.

The government will gradual-ly reduce the import of sugar to meet domestic need, Trade Minis-ter Gita Wirjawan said.

"The government will gradually reduce sugar imports while at the same time trying to boost domes-tic sugar production," he said here on Saturday.

While the government would gradually cut sugar imports, the people would hopefully reduce their sugar consumption, he said. "The import of sugar is made be-cause of high demand. Therefore, we have no other choice but to im-port white sugar," he said.

"I appeal to the public to re-duce their sugar need. Moreover, consuming too much sugar could give rise to health problem, such as diabetes," he said.

Govt Set to Curtail Sugar Imports Quoting the results of a study,

he said per capita sugar consump-tion in Indonesia was higher than that of many other countries. "If the matter can be resolved I think it will change our sugar consump-tion pattern. We can reduce sugar consumption or will never import sugar," he said.

"All parties need to think of re-ducing or abolishing sugar im-ports. Only recently, I discussed domestic sugar production with the agriculture minister. There-fore, the commodity can be pro-duced in large quantities to meet domestic need," he said.

President Susilo Bambang Yudhoyono held a meeting with representatives of Asia`s Hakka Chinese community and asked them to participate in MP3EI (Economic Development Acceleration and Expansion Master Plan) projects.

Finance Minister Agus Mar-towardojo said three problems had to be solved to enable the economy to grow faster.

"The economy can grow faster if we can overcome the obstacles that hinder growth," he said in his speech at the introduction of pro-people programs under the 2012 State Budget here on Wednesday.

He said the three problems were corruption, lack of infrastructure facilities and bureaucratic red tape. With regard to corruption he cited the President s statement that eradicating it was the task of all government officials at all lev-els as well as law enforcement of-ficers.

On the lack of infrastructure fa-cilities, he said the President had asked all offices at national and regional levels to mobilize all ex-isting potentials.

"The central and regional gov-

ernments have been asked to in-crease budget efficiency and re-duce routine spendings, and to allocate the resulting savings for infrastructure development," he said.

Meanwhile, the minister said, fundamental reform was needed to improve the bureaucracy. "Ef-forts to improve the quality of bu-reaucratic services must not stop at better action plans and the granting of remunerations but also look at results and achieve-

Minister Cites Three Economic Growth Problems

ments," he said.He said all of the problems had

to be overcome in three years time in line with the President s order. "To achieve the goal, our roles must be improved so that we will not become problems but supporters of development and economic growth," he said.

The minister said the economy could still grow despite the cur-rent uncertainties in the world economy.

He predicted the country s economy would grow 6.6% in 2011 based on the assumption that growth would reach more than 6.5% in the fourth quarter.

"Our assumption is a minimum growth of 6.5% but it could be more than that. As we have seen all sectors have grown well such as manufacturing, trade and communication. They remain the main growth drivers," he said.

www.presidensby.info/Abror

Finance Minister Agus Martowardojo

Trade Minister Gita Wirjawan

NationalThe President Post www.thepresidentpost.comDecember 12, 2011A6

Segway IndonesiaJl. Teratai 14A Blok N-9Jakarta Selatan 12530, IndonesiaPhone : 021.7818309 Fax : 021.7800329

www.segwayindonesia.com

President Susilo Bam-bang Yudhoyono ad-mitted here Friday that corruption and com-plicated bureaucratic

procedures were still obstructing Indonesia s economic growth.

Speaking at a service confer-ence of top government officials at the Bogor Palace, the president said another problem hampering economic growth was inadequate infrastructure facilities.

Present at the government working meeting were also Vice President Boediono, all cabinet

ministers, deputy ministers and the Bank Indonesia (central bank) governor.

"In the past, economic growth was constrained by unfavorable security conditions but now com-plicated bureaucratic procedures, corruption and inadequate infra-structure facilities are the stum-bling blocks to economic growth," the president said.

According to the head of state, red tape hampering econom-ic growth existed not only in cen-tral government offices but also

President: Corruption, Red Tape Hamper Economic Growth

in provincial government agen-cies. "The bureaucracy is pos-ing complicated problems but we have no other choice but to make serious efforts to fundamentally change this situation," the presi-dent said at the meeting to evalu-ate the government s performance in 2011.

The President said , if the three problems he had mentioned were overcome comprehensively, he was optimistic that investment in the country would surge and thus drive the economy to reach a higher level of growth.

Complicated bureaucratic procedures, corruption and inadequate infrastructure facilities are the stumbling blocks to economic growth.

The Indonesian and Chi-nese governments agreed to promote and enrich strate-gic partnership in the Sixth Meeting of Indonesia-Chi-na Technical Committee on Maritime Cooperation which was held recently in in Bali.

They also agreed to fur-ther develop the institution-

al building of maritime cooper-ation between the two countries and improve plans for coopera-tion, the Indonesian foreign min-istry said in a press statement here, Wednesday.

Both sides gave positive assess-ment on the achievement on the maritime cooperation as one of

RI, China Agree on Maritime Cooperationthe significant component in en-riching the Strategic Partnership, which receive high attention from both leaders.

The Technical Committee re-viewed the progress made since the 5th Meeting and expressed satisfaction about the achieve-ments of cooperation in safety of navigation, maritime security, na-

A Dutch historian and re-searcher is waiting for the result of a DNA test on the remains of a man buried on a hill in Selopang-gung village in Kediri district, East Java, to ascertain whether they really belonged to Tan Malaka, a legendary figure in Indonesia s struggle for independence.

Although officially listed as a national hero, the location of Tan Malaka s grave has re-mained a mystery and Harry A Poeze, a Dutch academic who has been studying the Indone-sian revolutionary s role in the country`s pre-independence his-tory, is hoping the DNA test being conducted in a laboratory in Ko-rea will finally solve the riddle.

The DNA test result would be available in January 2012, Po-eze told reporters in Jember on Thursday after giving a general lecture titled "Tan Malaka, a Case Study" at Jember University`s Faculty of Letters.

"The DNA test outcome will hopefully answer the decades-old question of where Tan Mala-ka was buried after his execution and thereby provide further proof of my research findings," he said.

Poeze, who is director of the Royal Dutch Institute for Carib-bean and Southeast Asian Stud-ies, had spent 20 years searching for Tan Malaka s grave and final-ly come to a spot on a hill in Sel-opanggung village, Semen sub-district, Kediri district, East Java, strongly believed to be the grave of the author of the epic literary work titled Madilog (Materialism, Dialectics, Logic).

"According to Zulfikar Kama-

Dutch Historian Seeks Answer to Tan Malaka Grave Mystery

rudin, one of Tan Malaka s rela-tives, the result of the second DNA test at the laboratory in Korea will be announced next January and I am looking forward to it," he said.

But if the DNA test reslt was positive, the Indonesian govern-ment would have to decide wheth-er the remains on the hill in Sel-opanggung village would be moved to the Kalibata Heroes Cemetery in Jakarta or a monu-ment be built at Selopanggung, Poeze said.

He said an Indonesian team had previously examined the re-mains at Selopanggung and in a report issued in March 2010 de-scribed them as those of a male of the Minang Mongoloid tribe who was 160-155 cm tall and was bur-ied according to the Islamic faith.

An interesting thing the team had found, he said, was that the mans two arms were in cross-wise position behind his back, an indication he was shot to death as a prisoner.

The Dutch academic is also the writer of a book titled "Tan Mala-ka, the Leftist Movement and In-donesian Revolution."

val exchanges, as well as ma-rine scientific research and environmental protection.

They agreed that while continuing to implement the existing maritime coopera-tion projects, the two sides would further expand the scope and tap the potentials of cooperation.

Indonesia s opposition par-ties failed to fulfill their po-litical function optimally in 2011, a political affairs ob-server said.

"The parties outside the government were still un-able to effectively function as a force exerting pressures on the government," M Alfian, a political observer, said in an evaluation of the country`s economic and political per-formance in 2011 at the Ak-bar Tanjung Institute here Friday.

The Indonesian Democra-cy Party-Struggle (PDIP) as the largest opposition party failed to perform as an effec-tive opposition force, he said. "I don t understand why this happened whereas they ac-tually had great potential to deliver," he added.

But he believed PDIP`s fail-ure as an opposition par-ty had something to do with the existence of an internal conflict between Taufik Ki-emas who tended to adopt a moderate stance towards the government, and his wife, Megawati Soekarnoputri, the party leader.

The two other parties out-side the government - the Gerindra (Greater Indone-sia) Party and the Hanura

(People s Conscience) Party - also showed lack-luster performance, Alfian said. "Gerindra lacked can-did drive and did not even call it-self an opposition party, was very moderate, occasionally critical but appeared to be very careful not to upset the government," he said. The Hanura Party was more con-sistent in its opposition but un-fortunately did not have enough

Opposition Parties Fail to Function Optimally: Observer

seats in the parliament.

Alfian said if the opposi-tion parties continued to fail functioning effectively in ab-sorbing popular discontent and experting pressures on the government, opposition in the streets would flourish and become an increasing phenomenon.

The DNA test outcome will hopefully answer the decades-old question of where Tan Malaka was buried after his execution and thereby provide further proof of my research findings."

Harry A PoezeDirector of the Royal Dutch Institute for Caribbean and Southeast Asian Studies

The Hanura Party was more consistent in its opposition but unfortunately did not have enough seats in the parliament.

www.pasarkreasi.com

Speaking at a service conference of top government officials at the Bogor Palace, the president said another problem hampering economic growth was inadequate infrastructure facilities.

www.presidensby.info/Haryanto

The President Postwww.thepresidentpost.com December 12, 2011 A7

Around Jababeka

The Borobudur Movie Project -Currently in Postproduction

One of the most for-midable interactive multimedia projects ever undertaken, bringing the legacy of Indonesia s World

Cultural Heritage site Borobudur to cyberspace, is now approaching its final stage after eight months of post-production.

Working away with a small team of handpicked program-mers, editors and graphic artists in a multimedia post-production facility especially set up for this purpose in Indonesia Movieland, Jababeka, the author and cre-ator of the project, Dr. Titus Leb-er, supervises the smallest de-tails of this incredibly complex production: the editing of over 40,000 still pictures, some 80 hours of video footage, and some 120,000 digital files, all of which were created over a period of two years, into narrative sequences which will make the stone char-acters depicted on the Borobu-dur virtually alive. The program-ming of some 400 QTVR (virtual reality) panorama shots give fu-

ture users of the program random instant access to any part of the temple; additional sophisticat-ed 3D animation sequences; and the integration of a lavish sound-track composed by internation-ally-known film composer Bruno Brugnano.

The objective of this ambitious enterprise is to make the rich symbolism of the Borobudur s ar-chitecture and narrative content of its over 1,400 bas-reliefs ac-

cessible for a worldwide audience through all forms of digital me-dia, from Iphones and IPads to Blu-Ray discs and a 20-part mini TV series, and to make people all over the world appreciate the rich messages encoded in this ancient building, depicting the quintes-sence of Buddhist teaching under its various aspects.

Dr. Leber, a multiple award winning film director trained in Hollywood s American Film In-

“Borobudur- Paths to Enlightenment” approaching completion!

Text & Photos by Dr. Titus Leber

stitute (AFI) and at MIT s Cen-ter for Advanced Visual Studies, has rich experience in this field: since the late eighties, when dig-ital media such as CD ROM or DVD did not even existed, and when the Internet had barely be-gun to make its appearance, he pioneered large scale, highly in-

teractive multimedia projects, such as the in-depth virtual vis-it of his hometown Vienna/Aus-tria, the life and works of W.A. Mozart and a 3D visit of the Lou-vre Museum in Paris. An explora-tion of the world of Louis Pasteur earned him an award for best sci-entific CD ROM of the year. Late-

INDONESIA MOVIELAND:

The Author: Dr. Titus Leber. Translating storyboard into animation

ly, Dr. Leber, whose works have been translated into 11 languag-es, spent several years to create a comprehensive interactive explo-ration of the life and teachings of Lord Buddha, commissioned by the Mae Fah Luang Foundation under the royal patronage of the government of Thailand. The lat-

ter project enabled him to move with ease through the intricacies of Buddhist iconography, a knowl-edge which he could now greatly expand on the Borobudur, exhib-iting one of the world s largest leg-acies of visualized content from all schools of Buddhism.

“What fascinates me,” explains the author, “is the way in which our ancestors had managed to ex-press complex philosophical and spiritual content through visuals, very much in the same way we do it today with our digital imagery, with the only difference that they expressed themselves in stone, while we do it in pixels.

“I see my role in translating these ancient messages of wisdom and compassion, so crucially im-portant for our time, into the mod-ern message of multimedia so that anyone anywhere in the world can appreciate it easily. Our ambition is to integrate the ancient, poetic shapes by which ancient sculp-tors immortalized man s close-ness to the divine into a form of new, unique mental images which are able to convey emotionally and intellectually this message of eter-nal wisdom.”

Dancing scene at Siddhartha’s court

Economic HighlightsThe President Post www.thepresidentpost.comDecember 12, 2011A8

December CPI head-line inflation was announced at 0.57% mom or 3.79% yoy, which is higher than our

forecast, but lower than consen-sus. Similar with the previous month’s inflation, this Decem-ber inflation was driven mostly by some raw food price increases (es-pecially: rice and chili).

The rise of rice price season-ally happens in December when production declines. It seems that Bulog did not do much mar-ket rice intervention in Decem-ber, despite the fact that their rice stock is relatively high at 1.7 mil-lion tonnes (Kontan, 22 December 2011), so that food inflation pres-sure was bigger than the previous month.

Meanwhile, monthly core in-flation rate slowed moderately to 0.28% mom in December, thus the YoY core inflation declined slightly to 4.34% vs 4.44% in No-vember due to a high base effect. The holiday season effect was rela-tively small to the inflation rate in the month of December, as trans-port services and recreation pric-es only increased slightly. Howev-er, the significant decline in the price of gold jewelries reduced the pressure on core inflation.

Overall, the 2011 inflation rate looks better than everybody’s ex-pectation, including Bank Indone-sia and the government’s; slightly outside the range of the inflation target (4% - 6%). Food (raw and processed) inflation continue to become the main contributors of inflation in 2011, at around 43% of the total headline inflation, and housing inflation comes next at 21.6%, while surprisingly cloth-ing (gold included) inflation was at only 12.9%.

Trade Highlights: “Slowing November International Trade”

Separately, the state-run sta-tistics agency (BPS) also released international trade data for the month of November, showing that there was slight monthly declines in exports (-0.20% mom) and im-ports (-0.88% mom). This resulted in a small increase of trade sur-plus in November to $1.53bn from $1.42bn in October.

This slight decrease in exports value was due to a slight decline in the values of non-oil & gas ex-ports, by $0.16bn or 1,1% mom. Meanwhile, the oil & gas ex-ports values increased slightly (by +4.0% mom) despite the fact that oil prices declined in November.

In line with the increase of palm oil prices, exports values of palm

oil and products increased signif-icantly by $0.87bn. Exports val-ues of coal was relatively stable, despite the rather sharp decline in other non-oil & gas commodi-ties exports.

Despite a significant slowdown of EU’s economic growth in the 2H11, Indonesia’s non oil & gas ex-ports values to EU increased sig-nificantly (by $0.14bn). However, Indonesia’s non-oil & gas values to ASEAN and the US declined.

The decrease in total imports value was caused by 2.5% mom decrease in the non-oil & gas im-ports, while oil & gas imports in-creased by 5.18% mom. A rather big rise in the imports of cereals (mostly rice, by 12.9% mom) re-flected the government intention to stabilize the economy by low-ering down the inflationary pres-sures during the seasonally low production of rice.

Overall, up to November, trade surplus in 2011 has increased to $25.1bn vs $18.4bn in 2010 with increasing share of oil & gas con-tribution, as oil & gas trade sur-plus share has risen to 2.39% (2011) vs 0.06% (2010) or in terms of value it was up $0.6bn vs $0.01bn (2010).

The European Union (EU-27) as

a whole has consistently become a main source of non-oil and gas trade surplus, by 31% of total non-oil & gas trade surplus. On the other hand, Indonesia’s non oil & gas trade deficit with China remains big, at $3.7bn in the first eleven months of the year.

Policy Implications: “Expect 50bps Rate Cut This Year”

We expect Bank Indonesia to cut its policy rate by 50bps to 5.50% this year (most probably in 1H12), as the current and fu-ture headline and core inflation still looks relatively benign, al-though the timing of the cuts (twice) still looks uncertain. BI seems to focus more on support-ing economic growth to antici-pate global economic slowdown, reducing their costs of monetary operations, and improving inter-mediary function of the banking sector.

We think that either Janu-ary or February would proba-bly be the best time for BI to cut the rate by 25bps when the pres-sure of non-core inflation (which may have influenced the rising consumer expectations) will not be as big as in March and April, when the government will raise the electricity price rate and start to implement the subsidized fuel rationing program. The govern-

ment seems ready to tackle the problem of food price (especial-ly rice price) inflation, by raising the stock of rice at Bulog. On the other hand, we have to be a little cautious to the inflation pressure coming from processed food, as the Ministry of Finance just re-moved the tax exemption on sev-eral raw materials importation, including wheat and flour.

Despite, the continuing EU’s debt and banking crises and the long-term fiscal outlook problems in the US, the rating upgrade (to investment grade) by two oth-er major rating agencies (S&P’s and Moody’s) may give a positive push for the Indonesia’s finan-cial (stocks, bonds and currency) markets. A combination of a rat-ing upgrade by Moody’s (expect-ed to be released in January) and relatively calm Euro area driv-en world financial markets, may trigger a relatively sizable Janu-ary effect to happen, and thus a 25bps rate cut to be done by BI.

Overall this year, financial markets may have been very vol-atile and investors may become more risk aversed due to EU’s debt and banking sector prob-lems. However, we expect IDR/USD appreciate slightly to 8,950 at year-end (2012) from 9,068 in the previous year.

2011: Inflation Better, but International Trade Slowing in November

By Anton Hendranata and Anton Gunawan

Despite, the continuing EU’s debt and banking

crises and the long-term fiscal outlook problems

in the US, the rating upgrade (to investment

grade) by two other major rating agencies

(S&P’s and Moody’s) may give a positive push for

the Indonesia’s financial (stocks, bonds and currency) markets.

Overall this year, financial markets may have been very volatile and investors may become more risk aversed due to EU’s debt and banking sector problems. However, we expect IDR/USD appreciate slightly to 8,950 at year-end (2012) from 9,068 in the previous year.

The President Postwww.thepresidentpost.com

Display until January 12, 2012 /// N0. 30Business B

Wanandi Slams Demonstratorsas Threat to Investment

Mandiri Channels Rp36t Credits to Palm Oil Sector

State-owned Bank Mandiri in the nine months through September channeled Rp36.16 trillion in loans to the palm oil sector, up 20% from Rp30.16

trillion in the same period last year.“Bank Mandiri is looking forward to giving positive contributions to the

development of the plantation sector, particularly the palm oil industry including derivative products,” the bank`s executive vice president for corporate banking Rafjon Yahya said here on Sunday.

He said the well-planned and efficient development of the national palm oil industry would make it strong and sound.

Bank Mandiri had a long history in financing the oil palm plantation. It started from four legacy banks which eventually merged into Bank Mandiri, he said.

With the long experience, coupled with a good knowledge of the palm oil industry`s characteristics, Bank Mandiri had played a great role in encouraging the development of the palm oil sector, he said.

Krakatau Steel Posts Rp1.04t in Net Profit

State steel producer PT Krakatau Steel Tbk (KRAS) in the nine months through September posted a net profit of Rp1.04 trillion, up slightly from the same period last year.

The increase in net profit was fueled by net income which grew 6.67% to Rp12.65 trillion in the year ended September 30, 2011 from Rp11.87 trillion a year earlier, PT Krakatau Steel President

Director Fazwar Bujang said here on Thursday. He said total operating expenses in the third quarter of 2011 rose to

Rp960.59 billion from Rp900.44 billion a quarter earlier. This year the company allocated an estimated Rp3 trillion to Rp5 trillion for capital expenditures including routine investment. The fund originated from banking loans and internal cash.

Telkom Buys Back Shares Worth Rp2 t

State telecommunications operator PT Telkom Tbk (TLKM) said it had bought back nearly 30% of its shares held by the public for Rp1.5 trillion to Rp2 trillion.

“The number of shares we have bought back from the public reaches about 30%,” Telkom President Director Rinaldi Firmansyah said here on Thursday night.

The fund represents around 40%percent of Rp5 trillion needed for the share buyback expected to end in June 2012. The company will buy back the shares held by the public through the Indonesia Stock Exchange (BEI) and the New York Stock Exchange (NYSE).

Telkom shareholders have agreed on the planned share buyback with a portion of 3.2%. The share buyback will cost the company an estimated Rp5 trillion. The figure is higher than 2% of shares held by the public as originally planned at a total cost of Rp3 trillion.

The planned share buyback will cover 645,161,290 shares with the price of shares estimated at Rp7,750 each.

MASA Set to Make RightsIssue with 3.06b Shares

Publicly-listed tire maker PT Multistrada Arah Sarana (MASA) Tbk said on Tuesday its shareholders had approved the company`s plan to make a rights issue with 3.06 billion shares worth a total of Rp1.53 trillion.

The proceeds of the rights issue will be used to finance the company`s business expansion, MASA President Director Pieter Tanuri said in a press statement.

He said nearly 44% of the funds would be used to buy machines/production equipment, 26% to develop timber estate including rubber process industry and 30% to strengthen working capital.

“Now was the proper time for the company to make a rights issue particularly after MASA shares had been put on the list of blue chips according to the Morgan Stanley Composite Index (MSCI) for Small Caps since November 15, 2011”, he said.

Every old shareholder who is put on the company`s list of shareholders and holds two shares as of 04.00 p.m. on December 29, 2011 is entitled to receive preemptive rights to buy one new share for Rp500.

MASA is a motor vehicle tire producer with an annual production capacity of 7 million units of car tires and 4.7 million units of motorcycle tire.

BUSINESS BRIEFS

A business leader ex-pressed concern here on Tuesday over dem-onstrations against investment, say-ing that unless they

were stopped they could erode the country`s image as an attrac-tive and secure foreign investment destination.

Sofyan Wanandi, the chief of the Association of Indonesian Em-ployers (Apindo), said Indonesia s image as an investment desti-nation would be compromised and damaged if demonstrations against private investment by some groups were allowed to con-tinue.

He called on the police and oth-er agencies concerned to take the necessary measures to curb the

Sofyan Wanandi, the chief of the Association of Indonesian Employers (Apindo), said Indonesia`s image as an investment destination would be compromised and damaged if demonstrations against private investment by some groups were allowed to continue.

tors,” he said. He said business-men in principle could no longer be influenced by such actions.

House Commission IV deputy chairman Firman Subagio said he would protect the tradition-al community members who had documents and evidence showing that their land had been grabbed. “We will protect traditional com-munity members whose lands were taken by private investors. But if the situation is the other way round, meaning they are the ones who had grabbed the land, they must be given harsh sanc-tions,” he said.

He said the forestry minis-try may not issue licenses at will without recommendations from the regional governments. “We however will still ask for an expla-nation from the parties concerned and hope the demonstrators will introspect,” he said. Firman also asked all parties to introspect to settle the alleged grabbing of land in Pulau Padang.

The executive director of the Association of Indonesian Forest-ry Businessmen (APHI), Nanang Rohandi, said there were a lot of cases in the forestry industry and a lot of demonstrators did not un-derstand what they actually were demanding. “Usually demonstra-

tors are mere pawns who are sac-rificed by certain groups who have bigger interests,” he said.

Nanang said a Industrial Forest Concession (HTI) given to a com-pany is actually a permit for leas-ing state land but some people claim the land is theirs. “Worse still is people seem to be on the losing side while the fact is they are the encroachers,” he said.

Commission II chairman of the legislative assembly of Meranti Is-lands, Riau, Ruby Handoko, said the action has actually been done several times in various occasions in Riau but it has never been sup-ported by the people. “They do not have legal evidence to sup-port their demand and have only forced their will,” he said. Ruby suspected the action against the development of industrial forests by the Riau Andalan Pulp and Pa-per (RAPP) in Pulau Padang was used by certain parties.

Teguh, a youth leader in Pu-lau Padang said those who re-ject RAPP number only 540 out of 35,975,00 people of Pulau Padang. “And they are all newcomers. A check could be made on their IDs showing that most of them came from Java Island. They have given no real contribution to the devel-opment here,” he said.

in the past few days demonstrated at the parliament building to pro-test against the foreign minister s decision on industrial forest devel-opment in Pulau Padang, Riau. Some of the demonstrators had sewn their mouths to dramatize their protest.

Sofyan said actually the pub-lic was not impressed by such ac-tions because it was understood that the demonstrators were paid by certain quarters. “I understand the game well because I used to lead thousands of demonstra-

Fazwar BujangPT Krakatau Steel President Director

anti-investment activism. He add-ed too many demonstrations had happened, creating the impres-sion as if the people were being oppressed while in reality the ral-lies were just expressions of anar-chism.

“They want to present them-selves as heroic fighters for hu-manitarian causes while in fact they are mere anarchists,” he said.

A group of people from the Com-munication Forum of Pulau Pa-dang Community (FKMP3) have

Chief of the Association of Indonesian Employers (Apindo) Sofyan Wanandi

www.kppu.go.id

RISING GAS NEEDS. Domestic demand for gas is expected to rise in 2012 due to the government policy to convert use of oil fuel to gas. While the country produces abundant gas, most of it are exported as overseas prices are better than domestic prices. The President Post/Nandi Nanti

BusinessThe President Post www.thepresidentpost.comDecember 12, 2011B2

Toyota sales in Indone-sia is expected to ex-ceed that in Thailand following the flood di-saster that hit the

country of late, a Toyota execu-tive said.

“We have predicted that the sales up to December 2011 will reach 310 thousand units,” Pres-ident Director of PT Toyota Astra Motor (TAM) Johnny Darmawan said here on Saturday.

With that figure, the Toyota sales in Indonesia could exceed that in Thailand, a county where Toyota sales so far is the biggest

in Southeast Asia. “It is likely that the sales in Indonesia will exceed that in Thailand because that country is being hit by a flood di-saster,” Johnny said.

Based on data at the Indone-sian Motor Vehicle Industry As-sociation (Gaikindo), Toyota sales up to November this year has reached 285,034 units, exceeding

Toyota Indonesia Sales To Exceed Thailand’s

the 2010 figure of 280,989 units.He predicted that the sales in

December would be better than that in November which reached 15,256 in line with spare parts stock recovery and import from Thailand. “The impact of the sales in Thailand turned out to be bigger than that of the earth-quake and tsunami in Japan,” he said.

State construction firm PT Waskita Karya plans to issue rupi-ah-denominated bonds of Rp750 billion in the second quarter of 2012 to restructure its debts.

“True, the bonds will serve as our starting point to be able to conduct IPO (initial public offer-ing),” Waskita Karya President Di-rector M. Choliq said on the side-lines of a coordination meeting of the State Enterprises Ministry at the Pertamina Head Office here on Monday.

He said local credit rating agen-cy PT Pefindo was in the process

“If the bonds receive adequate rating from the rating agency, we will sound out (the plan to issue the bonds) to the market,” he said. He said proceeds from the issu-ance of the bonds would be used to restructure the company`s debts.

Waskita Karya has set the target of its net profit for 2012 at Rp200 billion, a 25% increase compared with the target for 2011. The com-pany also has set the target of its income for 2012 at Rp9 trillion, up by Rp2 trillion from the target of Rp7 billion for this year.

Waskita to Issue Bonds Worth Rp750b in 2012

of rating the bonds. The company would later explore the possibility of signing a contract with bond is-sue underwriters.

The sales in Indonesia will exceed that in Thailand because that country is being hit by a flood disaster

The Indonesian Stock Ex-change (BEI) is optimistic that it will achieve its target to have 25 companies float-ing their shares through the initial public offering (IPO) mechanism in 2012.

“At present, we acknowl-edge that only 22 new share issuers have been recorded. We have another one which will soon be on listing name-ly Pt Erajaya Swasembada,” Eddy Sugito, BEI director for assessment and stock-stak-ing affairs, said during the share listing of PT ABM In-

vestama (ABMM) on Tuesday.He said that actually there were

two other firms which had been ready to go IPO at the end of this year. Information on their plans to float shares could be obtained from the Capital Market and Fi-nancial Institutions Supervisory Board (Bapepam-LK) in the com-ing two weeks.

“We can still expect that they are listing this year. If that hap-pen, our target to have 25 issu-ers this year could be achieved,” he said.

He said that two companies which were ready to list their

BEI Upbeat on 25 Share Issuers in 2012shares to the stock exchange were PT Saranacentral Bajatama and PT Greenwood Sejahtera. Since early this year, 22 firms have been listed to go IPO in the stock exchange, and PT ABM Investma was the 22nd to be listed.

In the first trade, ABM Investa-ma was able to raise the price of its share to the Rp4,100 posi-tion with a transaction volume of 2,557 shares worth Rp6.72 bil-lion. The company floated a to-tal of 55,633,000 shares (20%) to the public at a price of Rp3,750 per share with total IPO value of

Rp2.065 billion.Of the funds obtained

through the IPO, 70 percent will be used for business ex-pansion, 24% for mining ac-quisition debt financing and the remaining one is for working capital.

ABM Investama Strategic Director Yovie Priadi said his company had set a net prof-it growth target this year of 359-400%. The growth was expected to be boosted by the company s income which in-crease by about 40 to 50%.

www.vibizdaily.com

President Director of PT Toyota Astra Motor (TAM) Johnny Darmawan

M. CholiqWaskita Karya President Director

RICE PRODUCTION. The government has set a production target of 74 million tons in 2012, 3.5 million tons of which come from local farmers. The President Post/Nandi Nanti

The President Postwww.thepresidentpost.com December 12, 2011 B3

Investment

PT Pertamina will invest Rp52.8 trillion which will be divided into 80% for upstream and 20% for downstream projects.

“The projects are part of the MP3EI (master plan for accelera-tion and expansion of Indonesian economic development) projects for supporting energy infrastruc-ture development across Indone-sia,” Pertamina president direc-tor Karen Agustiawan said here on Monday.

She said several of the projects include a Floating Storage Re-gassification Unit (FSRU) in West Java which is expected to start operating in April 2012 with a ca-pacity of three million metric tons a year or 400 million cubic feet per day (MMSCFD).

Another project is the Residual Fluid Catalytic Cracking (RFCC) Refinery in Cilacap, Central Java, that will increase the capacity of the refinery to 411,000 barrels a day.

Pertamina together with Exx-onMobil has also carried out the development of a production facil-ity in Cepu Block which is expect-ed to be operational in 2014 with a production capacity of 165,000 barrels of oil per day (BOPD).

Pertamina has set a sales tar-get of 596,000 kilo liters in 2012 which is increasing by 5.4% com-pared to the 2011 sales prognosis that reached 565,430 kilo liters.

ident Director Karen Agustiawan said here on Monday following a general meeting of the company s shareholders discussing its busi-ness plan for 2012.

“We will be more optimistic in 2012,” she said.

Although Pertamina suffered losses of Rp640 billion from the sale of subsidized fuel oils and Rp4.9 trillion from the sale of non-subsidized liquefied petroleum gas (LPG), this year the 2011 prof-it prognosis rose 23.4% to Rp16.78 trillion the year before, she said. Pertamina has set the target of operating income for 2012 at Rp527 trillion, a 15.6% increase from Rp456.5 trillion in 2010, she said.

She further said the company s oil and gas production in 2012 was projected to reach 532.7 thousand barrels consisting of 244 thousand barrels per day and gas production 1,672 million metric standard cubic feet per day (mmscfd).

The 2012 oil and gas produc-tion target represented a 14.5% increase compared to the tar-get of 465.3 thousand barrels per day, an equivalent of 196.8 thou-sand barrels of oils per day. The figures accounted for 103% of oil production for 2010 or 107 per-cent increase compared with the gas production of 1,555 mmscfd for this year.

Pertamina Set to Invest Rp52.8t

The Solo city administration has since early this year received 19 applications for new permits to build star-rated hotels worth tril-lions of rupiahs, its mayor said.

“I don t know the exact amount of the investment. But in total, the investment may reach trillions of rupiahs. One of the hotels to be built will be a five-star hotel con-sisting of 25 floors. We only allow investors to build at least two-star hotels in Solo,” Joko Widodo said here on Tuesday.

He said the city administration had issued building construc-tion permits to 17 of the 19 inves-tors, while the other two investors still had to complete their applica-tions. “So the two investors ap-plications for new permits are not rejected but they still lack require-

have asked them to build the ho-tels shortly after receiving the building construction permits,” he said.

He expressed hope the con-struction of the new hotels would boost the economies of the city and environs. “We are convinced that the presence of the hotels will increase money supply in Solo and give greater benefit to all lay-ers of the community than the presence of a mall,” he said.

He said since he was elected Solo mayor he had only issued a permit for the construction of a mall. The mall was related to the construction of apartment. “It is not me but my predecessor who is-sued permits for the construction of the existing malls,” he said.

Solo Gets 19 Applications for Building Star-rated Hotels

Investment Grade Status Boosts Govt ConfidenceChief economic minis-

ter Hatta Rajasa welcomed the raising of Indonesia s debt rating to an investment grade by Fitch ratings agen-cy saying it had boosted the government s confidence.

“Our optimism for 2012 is increasing because we ini-tially thought it would be achieved in 2012, not this year, so that the 2012 out-look will change, more confi-dent, better as certain coun-

mistic,” he said. He said the capi-tal inflows had been more positive meaning more of them had gone to foreign direct investment (FDI) and less to portfolios.

“In 2011 the FDI has risen sharply to US$18-19 billion from merely $12-13 billion in 2010. In-vestment in portfolios has dropped and shifted to FDI. The funds that go to MP3EI projects are clear,” he said.

Hatta hoped in 2012 oth-

er ratings agencies such as Moody s would follow suit. “Moody s is ready, perhaps next year (to raise Indonesia s debt rating),” he said.

Fitch ratings agency has raised Indonesia s long term foreign and local currency issuer default rating (IDR) from BB+ to BBB- with a sta-ble outlook. The agency says with the new rating Indone-sia had attained investment grade status.

Pertamina has set the target of net profit for 2012 at Rp23.5 trillion, up 32% from the net profit forecast of Rp20.7 trillion for this year.

tries would use it as a reference for their investment,” he said at his office here on Friday.

He said with the new rating In-donesia would certainly become the destination of investors and so more capital would come into the country. He said people need not worry about the capital inflows because the government would manage them well.

“What is dangerous is if no cap-ital inflow happens. So, we will manage them. We must be opti-

The sales prognosis for 2011 is an increase of 13% compared to the 2010 sales and part of it is contri-bution from a rise in Pertamina exports of lubricating oils.

The sales of Non-PSO retail fuel oils in 2012 is expected to reach 1.7 million kilo liters or to increase by 21% compared to the sales prognosis of 2011 at 1.4 mil-lion kilo liters.

Pertamina aims for Rp23t profit in 2012

Pertamina has set the target of net profit for 2012 at Rp23.5 tril-lion, up 32% from the net prof-it forecast of Rp20.7 trillion for this year. The 2011 net profit fore-cast of Rp20.7 trillion represented 116.9% of the target of Rp17.7 tril-lion for that year, Pertamina Pres-

ments. We are waiting for the in-vestors to complete the applica-tions soon,” he said.

He said the investors who had secured building construction permits would start construct-ing the hotels in 2012. “True, we

Solo mayor Joko Widodo

Karen AgustiawanPertamina president director

LOW ELECTRICITY CONSUMPTION. The National Energy Council (DEN) disclosed that Indonesia’s electricity consumption is among the lowest in ASEAN, with Brunei Darussalam at the top (8,308KWh per capita) followed by Singapore (8,185Kwh), Malaysia (3,490 KWh), Thailand (2,079Kwh) and Vietnam (799KWh). The figures for Indonesia are about 591KWh, above the Philippines, Myanmar and Cambodia.The President Post/Nandi Nanti

Pictorial Events

The President Post www.thepresidentpost.comDecember 12, 2011B4

D ino Patti Djalal, Ambassador of Indonesia to the United States, has launched a book containing President Susilo Bambang Yudhoyono’s (SBY) international speeches entitled “The Transformational Decade”.

This book contains 16 speeches of SBY, including at Harvard University in the U.S. and the World Economic Forum 2011in Davos, Switzerland.

Attending the book launch were Cabinet ministers and business leaders, among others Taufiq Kiemas, Chairul Tanjung, MS Hidayat, Mohammad Nuh, Franky Wijaya, Emirsyah Satar, Dien Syamsudin, Peter F. Gontha and others.

Dino Patti Djalal Launches Book on SBY’s Speeches

Pictorial Events

The President Postwww.thepresidentpost.com December 12, 2011 B5

The Financial Club and The President Post held a Breakfast Dialogue themed “Navigating Turbulence, Sustaining Growth: The World Bank’s East Asia Pacific Economic Update” with Ekaterina Vostroknutova, Senior Economist World Bank for East Asia Pacific, as speaker.

Economic Update

PT Jababeka Tbk, held an event themed “Indonesian Automotive Industry-Current and Future Growth by Identifyng Market Opportunities and Explore Demand” at President Executive Club, in Kota Jababeka, Cikarang. The event featured A.K Hadi, Director of PT. Astra Otoparts Tbk and James Gwee, author of a bestseller book, and it was attended by businessmen such as Paul Prieston and Suteja Sidarta.

CEO Business Forum of Automotive Industry

USAID EventThe U.S. Embassy in Jakarta held Forum Jaringan Kemitraan

Universitas (University Partnership Network Forum) to discuss activities of the U.S. Agency for International Development in education and to promote partnerships among high education institutions.

Established in 20019, the USAID program has provided grants to 11 universities in Indonesia and six in the U.S.

Garuda Indonesia President Director Emirsyah Satar, accompanied by HR Director Arif Wibowo, signed an MOU on cooperation of super premium services and joint promotions with BNI President Director Gatot M. Suwondo, who was accompanied by Consumer and Retail Director Darmadi Sutanto at Wisma BNI 46, Jakarta.

Garuda Indonesia, BNIJoint Promotion

Chairman of PATA Indonesia SD Darmono and PATA Japan have agreed to promote tourism in both countries.

Back (left to right): Rick Vogel (President PATA Japan Chapter), Shigeo Adachi (Director of Toptour Corporation), Takako Koseki (Secretary General).

Front (left to right): T. Arimoto, SD Darmono (PATA Indonesia Chairman), Marlin Marpaung.

PATA Indonesia and PATA Japan Coop

Vice Presdent Boediono and his familyspent a three-day holiday (Dec 24-26, 2011) at the Tanjung Lesung resort, Banten, west Java, admiring its potentials as a major tourist destination.

Vice President SpendsHoliday at Tanjung Lesung

A NovNov-10 Dec J-11 Feb M Apr

2010 2011

JulMay J Sep O

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2,500

2,750

3,000

3,250

3,500

3,750

4,000

4,250

73

78

83

88

93

98

103

108

113

68

$99.79

M$3,000

$95

$85.7

M$3,506

AOct10

N Dec J-11 Feb M Apr

2010 2011

JulMay J Sep Oct

18,000

A NovNov-10 Dec J-11 Feb M Apr

2010 2011

JulMay J Sep O

108

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104.4

104.2

Executive HighlightsThe President Post www.thepresidentpost.comDecember 12, 2011B6

BI left its benchmark rate unchanged at 6% this December

BANK INDONESIA (BI) LEFT ITS BENCHMARK RATE UN-CHANGED AT 6% THIS DECEM-BER. The decision comes follow-ing rate cuts totaling 75 basis points combined in October and November to anticipate weaken-ing economic growth next year. The bank said inflation pressures were moderating in the near and mid-term. It noted that despite the rise in the price of rice, the price of food staples such as chili and poultry were on the decline, while the price of administered prices remained relatively sta-ble. With inflation easing to 4.2% y-o-y in November from 4.4% a month earlier, inflation expecta-tions trending down and global commodity prices on the decline, BI is projecting 2011 full year in-flation to fall below 4% to a multi-year low. The bank is forecasting 2012 inflation of 3.5-5.5%. On economic growth, BI is project-ing 2011 full year GDP expansion of 6.5%. The bank said economic prospects remained solid despite global uncertainties on the back of strong domestic demand. How-ever, the bank lowered its growth forecast for 2012 to 6.3-6.7% from 6.5-6.7% due to slower global eco-nomic growth.

Minister for Development Planning Armida Alisjahbana expressed confidence the long-awaited land clearing law would be passed this monthMINISTER FOR DEVELOP-MENT PLANNING ARMIDA AL-ISJAHBANA EXPRESSED CON-FIDENCE THE LONG-AWAITED LAND CLEARING LAW WOULD BE PASSED THIS MONTH. She said the government’s working committee with parliament has fi-nalized most elements of the leg-islation. The minister added that the government has already draft-ed key implementing regulations for the law, which she said would allow the law to go into effect at the start of next year. Indonesian laws often don’t go into effect un-til months and sometimes years after passage because of the time spent on drafting the implement-ing regulations. The law aims to provide regulatory certain-ty and expedite the land acquisi-tion process for public infrastruc-ture projects, which includes toll roads, railways, airports as well as refineries, power plants and telecommunication facilities. Ar-mida expressed confidence more projects under the government’s public-private partnership (PPP) initiative and the broader develop-ment master plan (MP3EI) would be able to move forward once the land clearing law is passed.

Boeing has secured a preliminary agreement to sell 230 aircraft to local low cost budget carrier Lion Air at a list price totaling US$21.7 billion

BOEING HAS SECURED A PRE-LIMINARY AGREEMENT TO SELL 230 AIRCRAFT TO LOCAL LOW COST BUDGET CARRIER LION AIR AT A LIST PRICE TO-TALING US$21.7 BILLION. The deal also includes options for an-other 150 aircraft valued at US$14 billion. It is the largest single avi-ation sale ever for the U.S. plane maker both in terms of value and number of planes. The deal was personally announced by U.S. President Barack Obama during the summit of East Asia nations in Bali recently. It includes an or-der for 201 of Boeing’s 737 MAX single-aisle jets and 29 of its ex-tended range 737-900ERs. Lion Air president director Rusdy Kira-na said the deal would help the airliner meet passenger growth and allow it to implement its ex-pansion plans over the long-term. The firm currently operates 92 planes with a load factor of more than 80%. Lion Air also has an earlier deal with Boeing, signed in

2008, for 178 737-900s to be de-livered in stages by 2016. The lat-est purchase, meanwhile, calls for delivery of the planes from 2017-2025.

Public Works Minister Djoko Kirmanto said the government has recently issued key regulations to fast track construction of the Rp100 trillion Sunda Strait bridge

PUBLIC WORKS MINISTER DJOKO KIRMANTO SAID THE GOVERNMENT HAS RECENTLY ISSUED KEY REGULATIONS TO FAST TRACK CONSTRUCTION OF THE RP100 TRILLION SUN-DA STRAIT BRIDGE. The bridge is slated to be the world’s longest suspension bridge, spanning the 26-km Sunda Strait linking Java and Sumatra. The government regulations calls for an inter-de-partmental team to be set up to-gether with representatives from the Lampung and Banten provin-cial governments to provide a de-tailed plan for the bridge design and structure. The government regulations also call for an envi-ronmental assessment and re-gional planning work to support the bridge’s development. Djoko said the he hoped construction could begin in 2014 once the nec-essary studies and tenders have been conducted, with commercial operations targeted for 2025. It is not clear who will construct and operate the bridge, though Djoko said he expected significant pri-vate sector participation. The gov-ernment envisions a bridge carry-ing a six lane highway, bus lanes and a double track railway to sig-nificantly reduce travelling time between the country’s two larg-est islands.

BHP has started work on its US$1.3 billion Indomet Coal project in Kalimantan BHP HAS STARTED WORK ON ITS US$1.3 BILLION INDOM-ET COAL PROJECT IN KALIM-ANTAN. The project is one of the largest green field coal deposits in the world. It comprises seven coal contracts of work (CCoWs) in Cen-tral and East Kalimantan, and has reserves estimated at more than 770 million tons of metallur-gical and thermal coal. The proj-ect is a joint-venture with local miner Adaro Energy. BHP said access roads, water dams, ad-ministrative buildings and other supporting infrastructure would be constructed this quarter, fol-lowed by the mine’s development. Development costs are estimated at up to US$2 billion. The proj-ect is slated to produce five mil-lion tons of coal per year by 2017, with further expansion potential-ly raising output to 10 million tons per year. Indomet was initially scheduled for production in 2009, but was put on hold by BHP. De-velopment was resumed follow-ing Adaro Energy’s purchase of a 25% stake in the project in March 2010. The decision to move for-ward with Indomet comes despite the regulatory risks and mount-ing labor challenges in Indone-sia’s mining sector, highlighting the project’s value.

Lintas Marga Sedaya has begun construction of the Rp12.5 trillion, 116-km Cikampek-Palimanan toll road in West JavaLINTAS MARGA SEDAYA HAS BEGUN CONSTRUCTION OF THE RP12.5 TRILLION, 116-KM CIKAMPEK-PALIMANAN TOLL ROAD IN WEST JAVA. Compa-ny president director Muham-mad Fadzil said the project’s im-plementation after several years of delays reflected the success of the government’s public-private part-nership (PPP) initiative. He ac-knowledged the government’s key role in acquiring more than 90% of the land needed for the toll road,

which was essential for the proj-ect to move forward. The toll road is scheduled to start commercial operations in 2014. Muhammad said the Cikampek-Palimanan project was a crucial component of the trans-Java toll road and would help improve the distribu-tion of goods from western Java to eastern Java and vice versa. The project will be 30% funded by eq-uity and the remainder by bank loans. Lintas Marga Sedaya has a 35-year concession to operate the toll road. The firm is 55% owned by Malaysia’s Plus Expressways Berhad and 45% owned by local firm Baskhara Utama Sedaya.

The government raised US$1 billion in its recent sale of islamic bonds

THE GOVERNMENT RAISED US$1 BILLION IN ITS RECENT SALE OF ISLAMIC BONDS. De-spite global financial uncer-tainties, the seven-year bonds were sold at a yield of 4%. This is around 2% lower than a sim-ilar bond sale by Italy recently,

and half the yield of the govern-ment’s previous Islamic bond deal in 2009. It reflects investor confi-dence in Indonesia’s economic out-look and prospects for the coun-try to receive an investment grade rating within the next 12 months. The top rating agencies Standard & Poor’s, Moody’s and Fitch all have Indonesia’s sovereign cred-it rating at one level below invest-ment grade. Rahmat Waluyanto, director general for debt manage-ment, expects an upgrade in the first half of next year. The latest deal, managed by HSBC, Citi-group and Standard Chartered, was more than six times oversub-scribed. Investors from Asia pur-chased 32% of the issue, the Mid-dle East 30%, Europe 18% and the U.S. 8%. Domestic investors purchased the remaining 12%.

State power utility PLN has raised US$1 billion in its recent 10-year bond offering

STATE POWER UTILITY PLN HAS RAISED US$1 BILLION IN ITS RECENT 10-YEAR BOND OF-

FERING. The bonds were sold at a yield of 5.5%. The issue is part of the firm’s US$2 billion global medium-term notes (GMTN) pro-gram it is currently implementing to secure funds to increase gen-eration capacity under its phase I and II acceleration program. The deal, managed by Barclays and Citigroup, was more than five times oversubscribed, highlight-ing strong investor interest in PLN debt. International ratings agen-cy Fitch assigned a BB+ rating to the bonds, which it said reflected the strong support PLN received from the government in the form of subsidies, public service obliga-tion margins, and state guaran-tees for certain bank loans. Geo-graphically, the bonds were 44% allocated to Asian investors, 35% to the U.S. and 21% to Europe. Around 64% were sold to invest-ment funds, 19% to insurance and pension funds and the re-mainder to banks.

Toyota announced plans to build a second manufacturing facility in Indonesia worth US$384 million AUTOMAKER TOYOTA AN-NOUNCED PLANS TO BUILD A SECOND MANUFACTURING FA-CILITY IN INDONESIA WORTH US$384 MILLION TO BOOST CAR PRODUCTION. The new plant will have a production ca-pacity of 70,000 units per year and be operated by company sub-sidiary Toyota Motor Manufac-turing Indonesia. The new plant will be built adjacent to the ex-isting facility, which has a pro-duction capacity of 110,000 units and is located at Karawang, West Java. The new plant is scheduled to start commercial operations by 2013 and will be used to produce new models Toyota plans to intro-duce to Indonesian consumers. The new models will include a multipurpose vehicle and a com-pact sedan for use in urban areas. Toyota currently dominates Indo-nesia’s automobile market with a 36% share. Domestic car sales for the January-October period totaled 746,200 units, with Toyo-ta vehicles accounting for 269,700 units.

Telkom announced plans to invest US$223 million to develop a high speed fiber optic network over the next four yearsSTATE TELECOMMUNICATIONS GIANT TELKOM ANNOUNCED PLANS TO INVEST US$223 MILLION TO DEVELOP A HIGH

SPEED FIBER OPTIC NETWORK OVER THE NEXT FOUR YEARS. Company president director Rinaldi Firmansyah said the firm aimed to have 13 million homes passed with true broadband ac-cess of 20-100 Mbps by 2015. The project is part of Telkom’s keystone “Nusantara Super High-way” built around fiber optic technology, comprising six rings covering Sumatra, Java, Kalim-antan, Sulawesi, Bali and Nusa Tenggara as well as Maluku and Papua. Rinaldi said the project underscored Telkom’s new strate-gic emphasis towards data-based telecom, information, media and edutainment (TIME) services and away from its current fixed, mo-bile and multimedia (FMM) port-folio. He said the contribution of the firm’s TIME services was pro-jected rise to 15% of total compa-ny revenues by 2015 from 9% cur-rently.

Coal miner ABM Investama raised Rp2 trillion in its recent initial public offering

COAL MINER ABM INVESTAMA RAISED RP2 TRILLION IN ITS RECENT INITIAL PUBLIC OF-FERING. The firm floated 20% of its shares in the third largest pub-lic offering this year. The offering was oversubscribed four times de-spite current uncertainties in the local financial markets. Morgan Stanley, Macquarie Group and Mandiri Sekuritas helped man-age the deal. Company director Andi Djajanegara said around two-thirds of the proceeds would be used to fund expansion, with the remainder to be used to refi-nance debt. The miner is project-ed to produce three million tons of coal this year, and is looking to boost coal production to 10 mil-lion tons per year by 2015. The firm has coal reserves estimated at more than 220 million tons in concession areas in South Kalim-antan and Aceh. It reported rev-enues and net profits of Rp2.8 trillion and Rp208 billion respec-tively for the January-July period. ABM Investama is a subsidiary of Achmad Hamami’s Tiara Marga Trakindo Group.

Chandra Asri Petrochemical has secured a US$150 million loan from a bank syndicate to support its expansion plans

CHANDRA ASRI PETROCHEM-ICAL HAS SECURED A US$150 MILLION LOAN FROM A BANK SYNDICATE TO SUPPORT ITS EXPANSION PLANS. Members of the syndicate included DBS

Selected Instant Indicators

Business Highlights are contributed to The President Post by CASTLEASIA/PT Jasa Cita from information supplied to members of their CEO Forum, the Indonesia Country Program. They are reprinted here with permission. For more information about CASTLEASIA programs, please contact Juliette or Wijayanti at 62 21 572 7321 or email castle@castleasia.com subject CEO Forum

Bank, Bank Danamon, Bank DBS Indonesia, Standard Char-tered Bank and HSBC. Chandra Asri corporate secretary Suryan-di said the funds would be used to finance ongoing capital expen-ditures. The firm currently has an annual production capacity of 600,000 tons of ethylene, 320,000 tons each of propylene and poly-ethylene, 480,000 tons of poly-propylene and 340,000 tons of styrene monomer. It is current-ly implementing plans to double the production capacity of its pet-rochemicals over the next several years to meet growing industrial demand in Indonesia. Chandra Asri is 65% owned by Barito Pa-cific, 30% by Thailand conglom-erate SCG Chemicals and 5% by the public. SCG Chemicals ac-quired its stake earlier this Sep-tember from Singapore’s Temasek and Barito.

The energy ministry awarded a series of oil, gas and coalbed methane blocks in its latest tender

THE ENERGY MINISTRY AWARD-ED A SERIES OF OIL, GAS AND COALBED METHANE BLOCKS IN ITS LATEST TENDER. The blocks included the West Aru I and II offshore projects awarded to BP; the Timor Sea I offshore project awarded to Hess Corp.; the Babar Selaru offshore project awarded to Inpex; the Halmahera II project – a frontier basin in eastern Indone-sia – awarded to Niko Resources and Statoil; and the Tanjung Aru offshore project awarded to Serica Energy; Neon Energy and Natuna Ventures. Other onshore blocks in Sumatra and Kalimantan were awarded to local companies in-cluding Terra Global Vestal, Men-tari Abdi Pertiwi and Anugerah Mutiara Sentosa. The ministry, meanwhile, awarded seven coal-bed methane blocks in Kalim-antan to local contractors Sugi-co Graha, Sumber Daya Energi and Citra Pita Niagatama. Direc-tor general for oil and gas Evita Legowo said investment commit-ments for three years of initial ex-ploration for the blocks awarded totaled US$65 million.

GDP GROWTH (&)By Quarter

165

175

10

2011

5.5

6.36.0

4.5

6.1 6.16.7 6.7

5.96.2 6.2

5.34.6

4.2 4.2

5.45.66.1

5.8

6.96.56.56.56.3

The President Postwww.thepresidentpost.com December 12, 2011 B7

Property

Indonesia’s economy has continued to strength-en in 2011 and full year GDP growth is expected to reach 6.5% (from 6.0% in 2010). Other general

economic indicators also showed very positive trends during the year, with inflation within govern-ment targets and a relatively sta-ble currency exchange rate. An-nual inflation for 2011 is expected to be below 5%, lower than the 6.96% recorded in 2010. The Ru-piah exchange rate remained rel-atively stable at around Rp.9,000 per $1.00, an appreciation of 0.2% over the full year. The stock mar-ket also continued its positive per-formance through the first ten months as evidenced by the com-posite index which closed at 3,791, an increase of 2.4% over that pe-riod.

CBD OFFICE MARKETLeasing transactions remained

active during the fourth quar-ter but at lower levels than dur-ing Q3. Most transactions were expansions by existing tenants resulting from business growth during 2011 and an expectation for this to continue into 2012. Oil & mining related companies, IT, and the banking industry were among the most active sectors for office expansions.

Larger inquiries of between 400 and 1,000 sqm (compared to only 100–300sqm seen earlier in the year) were observed during the last quarter of 2011. This is a pos-itive sign that office demand will likely continue at higher levels in 2012 despite potential slower eco-nomic growth due to the treat of a worsening of the Europe econom-ic recession.

Net take-up of 74,700sqm was recorded in the fourth quar-ter, bringing the cumulative de-mand to 3.85 million sqm as at December 2011, representing growth of 9.5% YoY. Occupancy levels rose significantly over the year, by 5.5% to 90.7%, with to-tal net take-up of 332,600sqm for the full year, some 63% higher than that recorded in 2010. This net take-up represents the high-est annual take-up achieved since the last peak in the office market cycle in 1997.

Throughout 2011, Grade A of-fices continued to enjoy the largest positive take-up of 251,300sqm or 76% of the total CBD office de-mand, followed Grade B and C buildings, which saw net take-up of 71,900 sqm (21%) and 9,500sqm

(3%), respectively. By business sector, 2011 demand was largely driven by oil-gas and mining com-panies, as well as the banking and insurance industries.

The total cumulative supply of the Jakarta office market in-creased during the fourth quarter of 2011, with the addition of Mul-tivision Tower of 21,000sqm in the Kuningan Persada complex in Jl. H.R Rasuna Said. This brought the total CBD supply to 4.24 mil-lion sqm, as at the end of Decem-ber, an increase of 2.8%, YoY.

Office 8 @ Senopati (Jl. Senop-ati), The H Tower (Jl. HR. Rasuna Said), and SCBD Lot 18 (SCBD, Jl. Jend. Sudirman) are currently in their advanced finishing stage, and will be ready for occupation in the first quarter of 2012. These projects will add approximately 81,200sqm of new office space to the market. In addition, a further 336,300sqm of new supply is ex-pected to be completed by the end of 2012. This future supply will be dominated by Grade-A office buildings, accounting for approxi-mately 93% of the total.

The average gross rental (base rental plus service charge) in Ru-piah terms increased by 2.2% over the fourth quarter to Rp.157,500 per sqm per month. In $ terms, this average gross rental in-creased by 1.1% to $14.95 per sqm per month during the same peri-od. YoY, Rupiah gross rentals in-creased by 8.6%, whilst in $ terms they increased by 8.1%.

A number of landlords in-creased their base rental rates during the fourth quarter and others are expected do so during 2012, given the continued positive outlook for the rental office mar-ket. Service charge levels are like-ly to see adjustment in the near term as landlords react to expect-ed government announcements regarding utility cost increments, especially electricity, as well as new Regional Minimum Wage (UMR) levels.

CONDOMINIUMGreater Jakarta’s condomini-

um sales activity remained sta-ble throughout the 4th quarter of 2011. Both the sales rate of com-pleted projects and pre-sales of fu-ture projects increased, by 0.5% and 0.6% over the last quarter.

A significant number of proj-ects totaling approximately 9,800 units were launched to the mar-ket during 2011. Some of these were offered with a distinctive

concept, such as Kubikahomy with strata title apartment con-cept as a student dormitory, Sky Terrace with an eco-green lagoon concept, Green Bay Pluit with a green nautical living concept, and Ciputra World 2 (Tower Cedar) with a “walk-to-work” concept, whilst others were offered based on their strategic location and ex-tensive support facilities. At the end of this year, the pre-sales rate of these newly launched projects

reached 41%, with total net take-up of 4,000 units.

For existing low-cost condo-miniums, the sales rate rose by 1.8% from the 3rd quarter’s figure of 92.5%, an increase of 3.3% over the prior year’s figure of 91.1%. In contrast, the pre-sales rate for this segment fell to 66.7%, a decline of 9.8% over 2010 and 17% below the earlier quarter. This sharp fall was correlated to the completion

of 12 projects and the launching of 6 new projects during 2011.

From a location perspective, most of the existing projects were situated in South Jakarta (28.1% of the total), followed by West Ja-karta with 22.6%. For the pro-posed projects, the majority are also planned to be built in South Jakarta (39.5%), followed by North Jakarta (27.3%).

Looking forward, the Great-er Jakarta condominium market

will see 18,140 units completed in 2012, assuming no major delivery delays.

INDUSTRIAL ESTATENet demand of some 268 Ha

of prepared industrial land plots rounded off an extremely strong year for the Greater Jakarta in-dustrial market. These 4Q land sales represented a net demand increase of over 50% QoQ and on a year-on-year basis, the quarter-ly demand was over 100% high-er than the 131 Ha sold in the same quarter last year. Despite this year-end demand surge, the significant amount of new sup-ply entering the market in the last quarter, caused the cumula-tive sales rate to remain virtual-ly unchanged at 77.6% compared to 77.9% in the previous quarter. Following the trend of strong per-formance in industrial land sales, demand for SFB’s & Warehouses for lease was also positive during the review quarter.

Industrial estates (IE’s) in Beka-si and in the Karawang & Purwa-karta areas remained as the pre-ferred locations, enjoying about 84% of total transaction activi-ty in the quarter. Increasing de-mand was also seen in IE’s in Se-rang and the Cilegon areas due to relatively higher availability of land stock ready-for-construction in these areas.

With a significant amount of ‘pent-up’ demand awaiting new supply delivery, the overall indus-trial market in 2012 is expected to remain strong, with continuing upwards pressure on land prices to be expected for the foreseeable future.

RENTAL APARTMENTDespite a slight seasonal de-

cline in expatriate tenants during the 4th quarter 2011 due to year-end holidays, the Jakarta rent-al apartment market ended the year successfully with high levels of leasing activity, evidenced by an increase in the overall occupan-cy rate within each of the rent-al apartment sub-sectors during 4Q.

The cumulative demand for rental apartments stood at 28,268 units by the end of 2011, repre-senting 7.1% growth from the pre-vious quarter and 10.6% growth on a year-on-year basis. An in-crease in occupancy levels was seen in each sub-sector of the rental apartment market.

In the year ahead, some 5,400 condominium units are estimated

to be completed in the condomin-ium-for-lease sub-sector, which is expected to trigger tougher com-petition within the market. In contrast, the serviced apartment and purpose-built apartment sub-sectors will experience slow-er supply growth.

RETAIL MARKETIt was a very active leasing mar-

ket throughout the year, especial-ly in the under-construction cen-ters. These pre-commitments did not however, impact on the 2011 annual take-up figures, as this will only be reflected following completion of those centers and the opening of the stores.

During the 4th quarter, several new international fashion brands opened their first stores in Jakar-ta, including Staccato and Mango Touch in Pondok Indah Mall, and New Look in Central Park. New openings by anchors and larg-er tenants were seen in the newly completed Kuningan City, includ-ing LotteMart, Best Denki, Cin-ema XXI, and the Kawan Lama group.

As of the end of December 2011, the average occupancy rate of the Jakarta retail market had in-creased by 1.4% (YoY) and stood at 81.0%, leaving approximate-ly 676,000 sqm of vacant retail space. On a quarterly compari-son, the completion of one prom-inent retail center in mid-De-cember (which did not achieve immediate high physical occu-pancy), caused a slight decrease in the occupancy level by 0.7%, over the 3rd quarter’s figure.

As of December 2011, the to-tal Jakarta retail supply was re-corded at 3,559,600 sqm (+1.6% YoY), comprising 2,435,700 sqm (or 68.4%) within retail centers for lease and 1,123,900 sqm (31.6%) in strata-title centers.

As of December 2011, average base rentals for specialty shop units on the ground floor in pre-mium locations were recorded at Rp.615,600 per sqm per month, an increase of 0.1% (QoQ) or 3.0% (YoY).

70.5% of new retail supply in 2012 will be dominated by one-stop retail centers within mixed-use developments. Supporting retail facilities and strata-title cen-ters will only contribute 27.9% and 1.6%, respectively. With projected additional supply of 336,800 sqm, cumulative supply is forecast to grow 9.5% by the end of 2012.

As Economy Strengthens,Property Market Enjoys Boom in 2011

KUNINGAN CITY, JAKARTA. 70.5% of new retail supply in 2012 will be dominated by one-stop retail centers within mixed-use developments.

www.kuningancity.com

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During the 4th quarter, several new international fashion brands opened their first stores in Jakarta, including Staccato and Mango Touch in Pondok Indah

Mall, and New Look in Central Park. New openings by anchors and larger tenants were seen in the nearly completed Kuningan City, including LotteMart,

Best Denki, Cinema XXI, and the Kawan Lama group.

MarketingThe President Post www.thepresidentpost.comDecember 12, 2011B8

Piaggio & C. Spa. is one of the lead-ing manufactur-ers of two-wheels and commercial ve-hicles based in Eu-

rope. Founded in 1884 by Rinaldo Piaggio, the inventor of scooters, the company is a leader in the world market through a variety of brands such as Vespa, Piaggio, and Gilera.

Vespa and Piaggio have many fans in Indonesia. Although to-day’s customers have more choic-es of brands, Piaggio maintains an emotional connection with fans in the scooter market.

Thanks to modern factories in Italy, Spain, China, and Vietnam, Piaggio scooters offer excellent quality and comprehensive after-sales service.

Last year, Piaggio established PT Piaggio Indonesia as proof of its full commitment to its loyal customers in Indonesia.

“Piaggio products have been present in Indonesia for many years and successfully stole the hearts of scooter lovers with its unique design and reliability of Italian-made motorcycle engines. With the presence of PT Piaggio Indonesia, we provide stylish ve-

hicles supported with after-sales service and the availability of spare parts & accessories,” said Sergio Mosca, Managing Director of PT Piaggio Indonesia.

It offers three products with complete variants, namely Vespa LX 125 & Vespa LX 150; Piaggio Liberty 150; and Piaggio Zip 100.

Piaggio Group is the largest manufacturer of two-wheelers and one of Europe’s market lead-ers in its class. Piaggio Group’s range of products include scoot-ers, mopeds and motorcycles with engine capacity between 50 to 1,200 cc, with brands Piaggio, Vespa, Gilera, Aprilia, Moto Guzzi, Derbi and Scarabeo.

Piaggio Group also produc-es light vehicle segments of three and four wheels under brands Ape, Porter and Quargo, which is a series of commercial vehicles.

Since the completion of the fac-tory in Vietnam on June 2009 with a total investment of $30 mil-lion, Piaggio has expanded its ac-tivity dramatically.

With a total investment of $40 million in production and R & D (Research & Development) which was announced by Piaggio Group Chairman & CEO, Robert Colan-

inno, the company has strengthened its posi-tion as Italy’s largest eco-nomic player in the re-gion.

With a factory cov-ering 20,000m2, the company will be able to increase production from 100,000 units per year to 300,000 units per year in mid-2012. An important step was made to re-spond to the mar-ket demand in South-east Asia that continues to develop a premium brand with unique style, combined with the advantages of the latest technol-ogy.

The factory at Vietnam allows Piaggio to seek opportunities to expand and open other factories in the ASEAN region.

“We are considering to open our production plant in Indonesia,” said Sergio Mosca.

“In Indonesia we have the stron-gest competitors in the world, but I believe that Piaggio has a different market segment. So our strategy is to be different in the market. Oth-er products are simple utility: they can take you from A to B, very low

c o s t , very efficient. So for the people who want something different and be distinguished from the crowd, Piaggio is the right product,” explained Mosca.

By the end of 2011, PT Piaggio Indonesia has set a target to have about 35 dealers spread in most parts of Indonesia such as Great-er Jakarta, Java, Bali and Suma-tra.

Mosca added, “At the moment our main target is not sales of the unit but to establish a good net-work. 100 outlets throughout In-donesia will be opened gradually. First step is to open outlets, be-

Piaggio Leads ScooterMarket in Indonesia

Piaggio Group is the largest manufacturer of two-wheelers and one of Europe’s market leaders in its class. Piaggio Group’s range of products include scooters, mopeds and motorcycles with engine capacity between 50 to 1,200 cc, with brands Piaggio, Vespa, Gilera, Aprilia, Moto Guzzi, Derbi and Scarabeo.

cause it is the best way to reach consumers.”

For premium brand, service is one key to success. For that entire Piaggio outlets will be equipped with a garage that is able to guar-antee the availability of spare parts. Furthermore, Piaggio will control the supply chain from pro-duction plants to warehouses in Indonesia, in order to deliver vehi-cles to customers on time.

Mosca concluded, “Indonesia is a good market. It’s growing econ-omy increases public mobility, so the spending power is there. Mo-

bility is a need in this country. Vespa is the good solution of two-wheels. Two-wheel vehicle is the present and the future, as long as the economy is growing and pub-lic transportation is still not suit-able.”

Vespa LX 125 & Vespa LX 150

Piaggio Liberty 150

Piaggio Zip 100

So for the people who want something different and be distinguished from the crowd, Piaggio is the right product.”

The President Post

WHAT’S ON 2012 CSECTION

www.thepresidentpost.comDisplay until January 12, 2012 /// N0. 30

What will happen in

2012? People said that 2012 is a very mysterious year.

Nobody knows for sure what will happen in year 2012. But, the year 2012 has been included in many

prophecies and is considered to be very important spiritually. But we’re

not talking about any spiritual events or prophecies right now;

here are scheduled sensible events that deserve out

attention.

Simple Plan ConcertSimple Plan will

perform not only in Ja-karta (Jan 17) but also in Sura-baya (Jan 18). Concert series enti-tled Get Your Heart On! Indonesia Tour 2012 is expected to satisfy its fans at two points at once.

Katy Perry ConcertFrom a series of names that will

perform a concert in Indonesia this year, Katy Perry’s concert on 19 January 2012 is the most ea-gerly awaited by Indonesians. Her success in recent years makes it a great base of fans in Indonesia.

JAVA JAZZ Festival The much-awaited jazz festival

is set to be held (March 2-4) at Ja-karta’s Kemayoran Fair Grounds, featuring international and na-tional musicians. Arguably the biggest jazz festival in the world, or at least on a par with The Hague’s North Sea Jazz Festival and Mon-treaux’s Jazz Festival, JJF is set to fascinate jazz lovers: Her-bie Hancock and Pat Metheney, among others, will be on hand to make the musical event even more exciting than before.

Jababeka Job FairIndustrial estate Jababeka will

hold a job fair on April. Jababeka has more than 1,500 tenants in the industrial area and is expect-ed to involve at the job fair. The event is intended to facilitate fresh graduates to get jobs and work at Jababeka’s tenants.

NKOTBBSB June 1, 2012 Mata Elang Inter-

national Stadium (MEIS), Ancol, Jakarta will be filled with the female fans of the two large boybands, New Kids on the Block and Back-street Boys.

NKOTB gained popularity in the early 1990s with sev-eral hits, like ‘Step by Step’ and ‘Tonight’. While the Backstreet Boys successfully kicked off the world music with the song ‘I’ll Never Break Your Heart’ and ‘Get Down (You’re the One for Me)’. Now, these two groups are collaborating and re-leased a single entitled ‘Do not Turn Out the Lights’.

EURO 2012Euro 2012, will be the 14th Eu-

ropean Championship for nation-al football teams sanctioned by UEFA. The final tournament will be hosted by Poland and Ukraine between 8 June and 1 July 2012. The finals will fea-ture sixteen national teams, as has been the format since 1996.

The sixteen finalists who will participate in the final tourna-ment are Croatia, Czech Re-public, Denmark, England, France, Germany, Greece, Italy, Netherlands, Poland (co-hosts), Portugal, Republic of Ireland, Rus-sia, Spain (title holders), Sweden, Ukraine (co-hosts, first appearance).

The obligatory improvement of the football infrastructure includes the build-ing of new stadium. Six of the eight venues are brand new stadia currently being con-structed and ready to open in advance of the tournament; the remaining two (in Poznań andKharkiv) have undergone major renovations.

The 9th Indonesia Cellular Show & the 14th Indonesia Computer Festival

Indonesia International Communication Expo & Conference (ICC) 2012 is an integration of B2C & B2B exhibition focusing on Cellular Operator infrastructures business. At the same time, the 14th Indone-

CALENDAROF EVENTS

2012

sia Computer Festival will be held. It is one of the biggest exhibitions for the computer and IT industry in Indonesia.

The event will show a wide range of products from related industries. For five days, both events will be held on 06-

10 June 2012.

The 2012 Summer Olympic GamesThe 2012 Summer Olympic Games will take place in London, England from 27 July

to 12 August 2012. The 2012 Summer Olympic program features 26 sports

and a total of 39 disciplines.The Olympics have prompted a

redevelopment of areas of London in which the games will be held. The Games will make use of ven-ues including Wembley Stadium, Wembley Arena, Wimbledon, Lord’s Cricket Ground, The O2 Arena, Earls Court Exhibition Centre, Weymouth and Port-land National Sailing Academy and the Excel Centre.

The 20th Indonesia International Motor Show

Indonesia International Motor Show (IIMS) is one of the annual

and biggest exhibitions in Indone-sia. The event will showcase a wide

range of products and accessories for the automotive industry which

will attract many visitors from the re-gion and abroad. Profile for exhibit include Luxury Lim-

ousines, Sedans, Coupes, Vintage Cars, 4WDs, Dune Buggies, Go Karts, Commercial

Vehicles, Heavy Duty Equipment, Garage Equip-ment & Tools, Automotive Spears, Car Accessories,

Car Hi-Fi Equipment and Lubricants.

DKI Jakarta Governor ElectionOn October 2012, the term of Fauzi Bowo as Governor of Jakar-

ta will be over. As the center of government, the Jakarta Election 2012 will be the focus of Indonesians, especially Jakartans. The elections will also be a competition for leading candidates to nominate themselves as

governor—so far there are 14 can-didates.

Facing enormous complexi-ties, Jakarta needs a leader with a vision for the future to human-ize its citizens. Besides, the lead-ers should have a strong charac-ter and dare to take risks. In this case Jakarta needs a leader who thinks “out of the box”, “crazy and brave”.

Major problems in Jakarta are floods, traffic, and crime. Jakar-ta needs to find a leader who can address the source of the prob-lem and apply the solutions effec-tively.

The 4th Jababeka International Cultural Festival

Jababeka’s annual event JICF will be held on November. The company still gives more attention on cultural issues since Jababeka houses expatriates from several countries and foreign students at-tending President University who interact with each other.

The US Presidential ElectionThe United States presidential

election of 2012 will be held on Tuesday, November 6. It will be the 57th quadrennial presiden-tial election in which presidential electors, who will actually elect the President and the Vice Presi-dent of the United States on De-cember 17, 2012, will be chosen. Barack Obama, who is eligible for a second and final term as Presi-dent, has announced that he will seek nomination to be the Dem-ocratic Party’s candidate in this election.

SIMPLE PLAN CONCERT KATY PERRY CONCERT JAVA JAZZ

FESTIVAL JABABEKA JOB FAIR NKOTBBSB TRANSIT OF VENUS THE 9TH INDONESIA

CELLULAR SHOW & THE 14TH INDONESIA COMPUTER FESTIVAL THE 2012 SUMMER OLYMPIC GAMES THE 20TH INDONESIA INTERNATIONAL MOTOR SHOW DKI JAKARTA

GOVERNOR ELECTION THE 4TH JABABEKA

INTERNATIONAL CULTURAL FESTIVAL THE US

PRESIDENTIAL ELECTION

What’s on 2012The President Post www.thepresidentpost.comDecember 12, 2011C2

www.moviedeskback.com

JANUARY

Underworld: AwakeningKate Beckinsale, star of the

first two films, returns in her lead role as the vampire warrioress Se-lene, who escapes imprisonment to find herself in a world where humans have discovered the exis-tence of both Vampire and Lycan clans, and are conducting an all-out war to eradicate both immor-tal species.

Cast: Kate Beckinsale, Michael Ealy, Scott Speedman, Charles Dance

Beauty and The Beast 3D“Walt Disney Pictures’ magical

animated classic “Beauty and the Beast” returns to the big screen in Disney Digital 3D™, introduc-ing a whole new generation to the Disney classic with stunning new 3D imagery. The film captures the fantastic journey of Belle, a bright and beautiful young woman who’s taken prisoner by a hideous beast in his castle. Despite her precari-ous situation, Belle befriends the castle’s enchanted staff -- a tea-pot, a candelabra and a mantel clock, among others -- and ulti-mately learns to see beneath the Beast’s exterior to discover the heart and soul of a prince.

Cast: Robby Benson, Rich-ard White, Jerry Orbach, David Ogden Stiers

FEBRUARY

Ghost Rider: Spirit of VengeanceThe story sees Johnny Blaze,

aka Ghost Rider (Nicholas Cage), hiding out in remote Eastern Eu-rope and struggling to repress his curse. Blaze is recruited by a sect to take on The Devil (Cia-ran Hinds), who wants to take over his mortal son’s body on the kid’s birthday. Idris Elba plays an alcoholic warrior monk tasked with finding Ghost Rider. Johnny

Whitworth plays a criminal who is recruited by The Devil to find the boy and is later turned into a demonic creature.

Cast: Nicolas Cage, Johnny Whitworth, Ciaran Hinds, Violan-te Placido, Fergus Riordan.

MARCH

21 Jump StreetAn undercover police unit con-

sisting of young-looking officers infiltrate high schools to control youth crime.

Cast: Jonah Hill, Channing Tatum, Ice Cube, Brie Larson, Rob Riggle, Dave Franco

Wrath of The TitansA decade after his heroic defeat

of the monstrous Kraken, Per-seus—the demigod son of Zeus—is attempting to live a quieter life as a village fisherman and the sole parent to his 10-year old son, Helius. Meanwhile, a struggle for supremacy rages between the gods and the Titans. Dangerous-ly weakened by humanity’s lack of devotion, the gods are losing con-trol of the imprisoned Titans and their ferocious leader, Kronos, fa-ther of the long-ruling brothers Zeus, Hades and Poseidon. The triumvirate had overthrown their powerful father long ago, leaving him to rot in the gloomy abyss of Tartarus, a dungeon that lies deep within the cavernous under-world. Perseus cannot ignore his true calling when Hades, along with Zeus’ godly son, Ares (Ed-gar Ramírez), switch loyalty and make a deal with Kronos to cap-ture Zeus. The Titans’ strength grows stronger as Zeus’ remain-ing godly powers are siphoned, and hell is unleashed on earth. Enlisting the help of the warrior Queen Andromeda (Rosamund Pike), Poseidon’s demigod son, Argenor (Toby Kebbell), and fallen god Hephaestus (Bill Nighy), Per-seus bravely embarks on a treach-erous quest into the underworld to rescue Zeus, overthrow the Ti-tans and save mankind.

Cast: Sam Worthington, Ralph Fiennes, Liam Neeson, Edgar Ramirez, Toby Kebbell, Bill Nighy.

APRIL

The Three Stooges Set in modern day and centers

on the slapstick adventures of Larry, Moe and Curly.”

Cast: Will Sasso, Sean P. Hayes, Sofia Vergara, Chris Diamanto-poulos, Jane Lynch, Larry David.

MAY

The AvengersThe Avengers will bring togeth-

er the super hero team of Mar-vel Comics characters for the first time ever, including Iron Man, Captain America, Thor, The Hulk and more, as they are forced to band together to battle the biggest foe they’ve ever faced.

Cast: Robert Downey, Scar-lett Johansson, Samuel L. Jack-son, Jeremy Renner, Chris Evans, Chris Hemsworth

Men in Black IIIThe MIB duo of Agent Jay (Will

Smith) and Agent Kay (Tommy Lee Jones) are back in action. When the world is threatened by an evil alien, Agent Jay travels back in time to 1969, where he teams up with the younger Agent Kay to stop an evil villain named Boris (Jemaine Clement) from destroy-ing the world in the future. Emma Thompson will play take-charge MIB operative Agent Oh, who is monitoring a prison breakout.

Cast: Will Smith, Tommy Lee Jones, Josh Brolin, Jemaine Clem-ent, Rip Torn, Emma Thompson.

JUNE

GI Joe: Retaliation After grossing nearly $300 mil-

lion worldwide, it’s no surprise that “GI Joe: The Rise of Cobra” is getting a sequel. No plot details have been announced.

Cast: Channing Tatum, Byung-hun Lee, Dwayne Johnson, Elodie Yung, D.J. Cotrona,Ray Park

Madagascar 3: Europe’s Most Wanted

Alex the Lion, Marty the Ze-bra, Gloria the Hippo, and Mel-man the Giraffe are still fighting

UPCOMING MOVIES 2012

The President Postwww.thepresidentpost.com December 12, 2011 C3

to get home to their beloved Big Apple; King Julien, Maurice and the Penguins are along for the ad-venture. This time the road takes them through Europe where they find the perfect cover: a traveling circus, which they reinvent Mad-agascar style.

Cast: Ben Stiller, Chris Rock, David Schwimmer, Jada Pinkett-Smith, Sacha Baron Cohen, Fran-ces McDormand.

JULY

The Amazing Spider-ManPeter Parker (Andrew Garfield)

is going back to high school when the next “Spider-Man” hits the-aters in the summer of 2012. The film will focus on a teenager grap-pling with both contemporary hu-man problems and amazing su-per-human crises.

Cast: Andrew Garfield, Emma Stone, Rhys Ifans, Martin Sheen, Sally Field, Denis Leary

Ice Age: Continental DriftThe 4th installment of the “Ice

Age” franchise sees Manny, Sid, Diego, Ellie and Scrat frozen sol-

id and accidentally defrosted in a museum in present day.

Cast: Ray Romano, Queen Lat-ifah, Denis Leary, John Leguiza-mo, J.B. Smoove, Jeremy Renner

The Dark Knight RisesEight years after the events of

The Dark Knight, Batman faces challenges from the brutal Bane and the stealthy Catwoman.

Cast: Christian Bale, Michael Caine, Gary Oldman, Tom Har-dy, Anne Hathaway, Joseph Gor-don-Levit.

AUGUST

The Bourne Legacy Fourth installment of the

Bourne franchise based on an original story. As writer/direc-tor Tony Gilroy explains, “This is not a reboot or a recast or a pre-quel. No one’s replacing Matt Da-mon. There will be a whole new hero, a whole new chapter…this is a stand-alone project.” Jason Bourne will not be featured in the film; Jeremy Renner will play another assassin trained in the same program as Bourne.

Cast: Jeremy Renner, Rachel Weisz, Edward Norton, Oscar Isaac, Joan Allen, Albert Finney

Total RecallBased on a Philip K. Dick sto-

ry in which people can buy literal dream vacation. Unlike the 1990 version with Arnold Schwarzeneg-ger, the movie takes place entirely on one planet.

Cast: Colin Farrell, Jessica Biel, Bryan Cranston, Kate Beck-insale, Ethan Hawke, John Cho

The Expendables 2Sylvester Stallone told the LA

Times that if The Expendables does well, investors would like-ly fund a sequel for which he has “an idea ready to go. He did not re-veal any plot details though.

Cast: Sylvester Stallone, Bruce Willis, Arnold Schwarzenegger, Dolph Lundgren, Mickey Rourke, Terry Crews.

SEPTEMBER

Resident Evil: RetributionA sequel to “Resident Evil: Af-

terlife 3D”, which had an opening of $73.2 million worldwide in just three days.

Cast: Milla Jovovich, Michelle Rodriguez, Johann Urb, Boris Kodjoe, Shawn Roberts, Sienna Guillory.

OCTOBER

Taken 2Liam Neeson returns as Bry-

an Mills, the retired CIA agent with a particular set of skills who stopped at nothing to save his

daughter Kim from Albanian kid-nappers. When the father of one of the kidnappers swears revenge, and takes Bryan and his wife hos-tage during their family vacation in Istanbul, Bryan enlists Kim to help them escape, and uses the same advanced level of special forces tactics to get his family to safety and systematically take out the kidnappers one by one.

Cast: Maggie Grace, Liam Neeson, Rade Sherbedgia, Famke Janssen, Luke Grimes

The Texas Chainsaw Massacre 3D

Based on the 1974 film, “The Texas Chainsaw Massacre,” di-rected by Tobe Hooper. The sto-ry will pick up immediately where Tobe Hooper’s original left off be-fore flashing forward 35 years.

Cast: Tania Raymonde, Scott Eastwood, Trey Songz, Dan Yea-ger, Alexandra Daddario

FrankenweenieAfter being hit by a car, a pet

dog is brought back to life by his loyal owner, a young boy, who cre-

ates elaborate machines which bring down a bolt of lightning that revives the animal.

Cast: Winona Ryder, Martin Landau, Martin Short, Catherine O’Hara.

NOVEMBER

The Twilight Saga: Breaking Dawn Part II

After the birth of Renesmee, the Cullens gather other vampire clans in order to protect the child from a false allegation that puts the family in front of the Volturi.”

Cast: Robert Pattinson, Tay-lor Lautner, Kristen Stewart, Pe-ter Facinelli, Billy Burke, Kellan Lutz.

DECEMBER

The Hobbit: An Unexpected Journey

This prequel to The Lord of the Rings trilogy follows Bilbo Bag-gins, an upstanding member of the “little people,” on the haz-ardous journey with Gandalf the Grey. Together with 13 fortune-seeking dwarves, Bilbo Baggins will be swept out his door and into a dangerous but grand adventure through the Lonely Mountains, where he must contend against all manner of enemies, from drag-ons, to giant spiders, hostile elves, ravenous wolves, and – perhaps the most perilous of all – a subter-ranean creature named Gollum from whom Bilbo wins a magical ring (the ring that rules them all) in a riddling contest.

Cast: Ian McKellen, Hugo Weaving, Andy Serkis, Martin Freeman, Richard Armitage, Aid-an Turner

TourismThe President Post www.thepresidentpost.comDecember 12, 2011C4

Bandung, West Java s provin-cial capital, hosted a Road to In-donesia Coffee Festival on Decem-ber 23, 2011, as a precursor to an Indonesian Coffee Festival in Bali next year, the event s initia-tor said.

“Bandung which was the first region in Indonesia to host ?coffee plantations will have the honor of hosting the Road to Indonesia Coffee festival,” Yanthi Tambunan said here Wednesday. Meanwhile, the Indonesian Coffee Festival will be held in Bali in early 2012. The festival was expected to be a ha-ven for coffee lovers in Indonesia.

According to Yanthi, Bandung was chosen to host the Indone-sian Coffee Festival`s pre-event because of its history in coffee

Bandung Hosts Coffee Festivalworld`s biggest coffee produc-er after Brazil and Vietnam. Indonesia s current coffee pro-duction stands at 200 thousand tons per year. Ideally with this high production Indonesia no lon-ger needed to import coffee. With growth of 10 percent of the local production, it would be sufficient to meet the domestic needs, Yan-thi said.

“Indonesia s coffee export po-tential is still large including to Japan, Germany, Italy, UK and U.S. However, usually the cof-fee exported comes back to Indo-nesia under a foreign label,” she said. The current upswing in the coffee price was related from the rainy season. The coffee price in the market was now around Rp80,000 per kilogram.

W W a k a t o b i district s tour-ism and creative economy office needs Rp5 bil-lion in funds

from the 2012 regional budget to develop the region s tourism, a spokesman said.

“We need the funds to finance the management of various tour-ism objects, including the main-tenance of the traditional culture of the local people, and conduct promotions in Australia and oth-

er countries in Asia,” the head of the district s tourism and creative economic office, Tawakal, said on Friday.

According to Tawakal, Austra-lia and Asian countries were the main targets of Wakatobi`s tour-ism promotions in a bid to attract as many tourists as possible from there. “We hope tourists from Australia and Asian countries will make Wakatobi their destination,” Tawakal said.

He said that the number of both domestic and foreign tourists who visit Wakatobi at present had reached 15,000 to 20,000 people per year.

Tawakal said most of the for-eign tourists who visited Waka-tobi came from the United States, England, the Netherlands, and Switzerland but only a few of them were from Australia and Asia. “Therefore we are going to intensify Wakatobi tourism pro-

motions in Australia and Asia to attract more tourists from there,” Tawakal said.

In Wakatobi, a tourism infor-mation center has been set up for tourists to obtain information about places to visit, accommoda-tions, restaurants, and transpor-tation facilities.

“Wakatobi is offering tourists its natural beauty, marine parks with attractive coral reefs and schools of ornamental fishes, and histor-ic sites such as Liya Togo Fort and Liya old mosque,” Tawakal said.

In an effort to support the tourism industry in Wakatobi, Tawakal added, his office would in 2012 build a culinary market in the district town of Wangi-wan-gi. “The construction of the cu-linary market in Wangi-wangi next year is to meet the demand of both domestic and foreign tour-ists for typical Wakatobi cuisine,” Tawakal said.

Wakatobi Seeks Rp5 billionfor Tourism Development

Tourism and Creative Economy Minister Mari Elka Pangestu said the tourism sector and domestic market had the potentials to serve as a safety belt for national econ-omy in the face of global econom-ic meltdown.

“Indonesian tourism is not vul-nerable to economic crisis so that the tourism sector and domestic market can serve as a safety belt for national economy,” the minis-ter said here on Wednesday.

“Tourism as Economic Safety Belt”

In an effort to support the tourism industry in Wakatobi, the district’s tourism and creative economy office would in 2012 build a culinary market in the district town of Wangi-wangi.

cultivation and trade that had brought it high prestige.

Bandung also played a signif-icance role in the development of coffee in Indonesia because the first coffee plantations in Indone-sia were established in the Band-ung region by Peter Eugelhard during the Dutch colonial period, Coffee grown in the Bandung re-gion later became known world-wide as Java Coffee, she said.

Based on this history, Band-ung which has a cold climate, had a great potentials for coffee busi-ness both packaged coffee and coffee treats in cafes. “The Road to Indonesia Coffee Festival ed-ucates the public about coffee,” Yanthi said.

Indonesia is currently the

The Tourism and Creative Economy Ministry has set the target of tourist arrivals for 2012 at 8 million, with for-eign exchange earnings pro-jected to reach $8.98 billion.

The figure represented a 7.35% increase compared to this year s, the director of the ministry s market devel-opment, Sadar Pakarti Budi said here on Friday.

The government has set it-self the target of attracting 7.7 million tourists for 2011. “The tourism sector is pro-jected to grow 6.42% this year,” he said.

In anticipation of unex-pected thing next year, the ministry had set three ver-sions of tourist arrival tar-gets, namely a pessimistic target of 7.8 million, a mod-erate target of 7.9 million and optimistic target of 8 million, he said.

He expressed his optimism the tourism industry would grow positively according to the target thanks to the im-proving competitive edge of

Govt Sets 2012 Tourists Arrival Target at 8m

the Indonesian tourism.The competitive edge of the

Indonesian tourism would become increasingly stron-ger in terms of budget, tour-ist arrivals, foreign exchange earnings, representative of-fices and direct flight seats which currently stood at 15 million. “So far we have pro-vided visa-free facilities to 12 countries and visa-on-arriv-al (VOA) facilities to 64 coun-tries,” he said.

Looking ahead, he said the development of tourism in-dustry would be focused on ecotourism, meeting, incen-tive, convention and exhi-bition (MICE), sports event, heritage, shopping, honey-moon, cruise, culture and arts show, spa and health-care.

To achieve the tourist ar-rival target of 8 million, the ministry would apply an in-tegrated strategy by among others disseminating tagline Wonderful Indonesia, eying special segments and inten-sifying marketing activities.

She was speaking to a seminar on “Tourism Outlook 2012” orga-nized by ANTARA National News Agency with a theme of optimiz-ing the creative economic sector for the tourism industry in Indo-nesia.

“We do not have to be worried about our tourism because we have huge tourism potentials. In-donesia is the largest archipelag-ic country and has the world`s fourth largest population of 237 million,” the minister said.

TANJUNG LESUNG. Vice Presdent Boediono and his family spent a three-day holiday (Dec 24-26, 2011) at the Tanjung Lesung resort, Banten, west Java, admiring its potentials as a major tourist destination.

The development of tourism industry would be focused on ecotourism, meeting, incentive, convention and exhibition (MICE), sports event, heritage, shopping, honeymoon, cruise, culture and arts show, spa and healthcare.

She said that Indonesia stretched 5,120 km from the east to the west and 1,760 km from the north to the south.

“We have eight World Cultural Heritage Sites which has the po-tentials to serve as host for inter-national festivals and exhibitions, as well as strong creative indus-tries,” the minister said.

The tourism and creative econ-omy ministry has set a target of 8 million foreign tourist arrivals up to the end of this year.

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The President Postwww.thepresidentpost.com December 12, 2011 C5

Travel

Two Rafflesia arnoldi flowers are in bloom at the Taba Penan-jung natural sanctuary in Cen-tral Bengkulu District, Bengku-lu Province.

The two flowers, located only 15 meters from each other, bloomed at the same time, Anggi, a local resident, said here.

“We found three flowers within a radius of 20 meters, but one has withered, and two are now in full bloom,” he said.

The giant flowers were found in an area located around 100 me-ters from a road connecting Beng-kulu city and Kepahiang district. Last week, a Rafflesia flower was in bloom in the Bukit Daun pro-tected forest, Kepahiang District.

Coordinator of Tebat Monok Rare Flower Lovers Holidin said 13 Rafflesia arnoldii flowers had been found this year. Six flow-er buds are currently waiting to bloom.

“We predict one flower bud will bloom this week,” he said. Holi-din said the Bukit Daun protect-

Bengkulu Showcases Two Blooming Rafflesia Flowers

est area in order to preserve the habitat of Rafflesia arnoldii.

Rafflesia is the largest, heaviest, rarest and one of the most smelly flowers in the world. In full bloom, its crown can reach a diameter of 1 meter and weigh about 10 kgs. Rafflesia is a parasitic plant with-out any leaves, stems and roots.

Samosir District toHave Geopark

Five unique species of cats had been discovered in Indonesian Riau s forests after a recent re-search by the World Wildlife Fund (WWF).

Indonesian WWF Tiger Re-search Team coordinator Karmila Parakkasi said here on Wednes-day that the five species of wild cats are the Sumatran tiger (Pan-thera tigris sumatrae), clouded leopard (Neofelis diardi), stone cat (Pardofelis marmorata), golden cat (Catopuma temmincki) , and the leopard cat (Prionailurus ben-galensis).

These five endangered cat spe-cies are found in Bukit Tigapu-luh National Park and Rimbang Baling Wildlife Reserve, Province of Riau, after WWF cameras had been mounted in a number of ar-

Riau Forests Offer Unique Wild Cats

The geopark would be built around a location that was formed by earth formation processes thousands of years ago and it would eventually be managed as a nature conservation and tourism area.

ed forest and the Taba Penanjung I and Taba Penanjung II natural sanctuaries were the habitats of Rafflesia arnoldii.

However, some parts of the for-est area have been converted into coffee plantation. Holidin urged the government to protect the for-

East Nusa Tenggara (NTT) Governor Frans Lebu Raya said a Sail Komodo event will be organized in 2013 to draw foreign tourists to the province s isles.

Foreign tourists should vis-it the small islands with their beautiful natural and cultur-al attractions, get to know the local people and understand their traditions, the governor said here on Thursday.

“Currently the provincial administration is initiating a Sail Komodo 2013. We hope this event will also encourage its participants to visit the re-mote isles in NTT Province and thereby enable them to tell others in their countries about the isles,” he told the press.

Over the past several years, participants of Sail In-donesia, had used NTT as an entry gate by making tran-sits in Kupang, Alor, Flores Timur, Maumere, Ende and Manggarai.

The Sail Komodo 2013 is expected to attract foreign tourists to stay for few days in NTT`s isles, and make them as touristic destina-tions in the future, accord-ing to the governor. The NTT administration has proposed the organization of Sail Ko-modo 2013 to the central government and hoped that the NTT regional legislative council would give their po-litical support.

The proposed internation-

Governor:E. Nusa Tenggara Attracts Foreign Tourists Through Sail Komodo

al marine event would be called Sail Komodo because Komodo has become globally known by its inclusion as a fi-nalist in the New7Wonders of Nature competition, he said. Whether Komodo would win or lose in the New7Wonder competition, the NTT govern-ment would continue to pro-mote Komodo internationally, he said. The Komodo dragon is the world`s only surviving giant lizard living in Komodo National Park in NTT.

The number of foreign tour-ists visiting Komodo Nation-al Park has increased since Komodo became a finalist in the New7Wonders of Nature competition, East Nusateng-gara (NTT) Deputy Governor Esthon Foenay said.

“Up to August 2011, some 32,354 foreign tourists visit-ed the Komodo national park while the number of domes-tic tourists who came to the island was 4,145, up from 2,955 in 2010,” the deputy governor said recently.

eas to record clearly their exis-tence.

“The activities of these wildcats had been recorded clearly on the research team`s cameras on their regular route,” she said.

Locations of the wild cats were known as the wildlife corridor that connects the conservation areas Rimbang Baling Wildlife Reserve and Bukit Tigapuluh Na-tional Park . “Both areas are cur-rently threatened by degradation due to serious encroachment and logging,” said Karmila.

According to Law No.7/1999 on the plants & animals, the wild cats are state protected animals. Karmila added that based on the criteria of International Union for Conservation of Nature (IUCN), four other wild cat species apart

from the leopard cats had also been declared as critically endan-gered species.

Therefore the findings of the five species Sumatran cats proved that they are unique in Bukit Ti-gapuluh and the surrounding connective corridor still exists. “These findings also indicate the importance of serious efforts to immediately protect the region from the threat of large scale nat-ural forest encroachment and ille-gal logging,” said Karmila.

During the three months of systematic surveys with automat-ic monitoring cameras in 2011, WWF-Indonesia has successfully found a total of 404 images of wild cats including 226 photographs of the Sumatran tiger, 77 of clouded leopards, 70 of golden cats, four of stone cats, and 27 Leopard cats.

www.bagpeker.com

Rafflesia arnoldii

www.indonesia-ottawa.org

The Samosir dis-trict administration in North Sumatra will build a geopark worth Rp20 billion to add to the Lake

Toba region s marine tourism po-tentials, a local official said here Thursday.

“The geopark project to show-case Lake Toba is expected to be implemented beginning in mid-2012,” Samosir district adminis-tration spokesman, Gomgom Nai-baho, said.

He said the geopark would be built around a location that was formed by earth formation pro-cesses thousands of years ago and it would eventually be man-aged as a nature conservation

and tourism area. To realise the geopark project , the Samosir dis-trict administration had signed a cooperation agreement with the Agency for the Asseement and Ap-plication of Technology (BPPT) in Jakarta, Gomgom said.

“Samosir is now considered so important for geological research that it has been proposed for in-corporation into the world geo park network,” he said.

Gomgom added the agreement signed with BPPT includes the as-sessment and implementation as well as socialization of the tech-nology to support regional devel-opment. The goal was to develop the exploitation of the potentials owned by the region through in-

creasing the capacity of the local people and institutions.

The scope of the agreement would be in the form of the de-velopment of regional innovation systems and technology policy as-sessment that cover innovation, diffusion, competitiveness and technology audits. In addition. the assessment and application of agro-technology and biotechnol-ogy, technology assessment and application of environmental as well as natural resource exploi-tation.

“The application of industrial design and engineering informa-tion technology, energy and min-erals will also included in the co-operation,” Gomgom said.

The geopark project to showcase Lake Toba is expected to be implemented beginning in mid-2012.”

Frans Lebu RayaEast Nusa Tenggara (NTT) Governor

LivingThe President Post www.thepresidentpost.comDecember 12, 2011C6

A Social Media Addict Tries to Disconnect

I ’m a tweeting fiend. Wheth-er it’s quoting Herman Cain or issuing citations for the fashion police – clear heels to work, really? – I’m al-ways thumb-typing away.

As a journalist who tweets pro-lifically, I’m acutely aware of the benefits of social media. My Twit-ter is connected to my Facebook, I carry two BlackBerrys and when I’m out of the office I’m of-

ten obsessing over work e-mail or checking my Twitter and Face-book news feeds.

This can make me an obnox-ious dining companion, as my best friend noted resignedly dur-ing a recent visit. “I know you only hear half of what I say,” she said, looking at her lunch menu. “But it’s your job, that’s how you stay plugged in.” Another friend, a fel-low journalist, said he was used to social-media addicts but that I took it “to a whole new level.”

So on a recent five-day va-cation trip to Antigua,

I decided to discon-nect from all elec-tronic commu-nications and actually expe-

rience what was in front of me in-

stead of

tweet ing about it. (I know,

I know – unplug-ging doesn’t sound

particularly diffi-cult when you’re on a beach in the Carib-

bean. But you’re looking at some-one who tweet-ed everything

Disconnect is moving full speed ahead.

At dinner, the woman at the ta-ble next to mine looks unfazed as her male companion checks his phone. I stop myself in mid-judg-ment, realizing that guy was me at every meal I’ve had for the past few years. Resisting the urge to cheat – it’s daunting dining alone, without an electronic companion – I take out my journal and start writing about my day. So far, so good, I think.

Day 2Breakfast is croissants, fruit

and the kind of coffee that’s so good it turns you into one of those cranky people who’s always la-menting the scarcity of a decent cup of coffee. Perfect, yes? No. I have no idea what the world is tweeting this morning. And that’s not the only problem. I’m restless.

In the seconds after I an-nounced my moratorium on Day 1, a Facebook friend wrote on my wall: “It’s awkward at first, but you’ll start to enjoy being discon-nected fairly quickly.”

I had wondered: Why awk-ward? Now I knew. I’m without a social crutch – one that allows me to engage with the world, even when I’m alone. In a place known for its pristine beaches, I con-stantly feel the impulse to share my surroundings with my friends and family.

But it’s not an altruistic im-pulse. I begin to realize it’s the re-actions to my observations that I find engaging and that I miss. Ev-ery time I go for a swim, come back and lie in the warm sun, I reach for my BlackBerry that’s not there – it’s become second nature.

That night, I take the hotel man-

ager’s advice and take a taxi to a huge reggae party. As a precau-tion, I take my BlackBerry with me. The whole time the taxi driver is describing the landmarks and vistas we’re passing on the 45-minute drive, I’m distracted by a BlackBerry that’s essentially off. I’ve disconnected the phone’s In-ternet, but I catch myself reading old e-mails. Really? When did I become this person?

Day 3Without my BlackBerry as an

alarm clock, I awake to waves crashing. It’s 9:45 a.m. I take my phone to breakfast with me out of habit. During a chat with the ho-tel’s owner I become distracted by my BlackBerry’s blinking red light, meaning I have new e-mail.

The old me would pick up the phone and read away without any regard to the person speak-ing. Rude but necessary, I often reasoned: “It could be work.” This time I resist the urge and make a silent observation: “You are ob-noxious. But at least you’re self-aware.”

At midday I move to a differ-ent hotel, the Hermitage Bay Re-sort on another part of the island. Upon arriving I am so over-whelmed by its luxury and lush surroundings, I immediately feel it warrants a massive Facebook up-date. This would create the moth-er of all threads. But I can’t.

So I cheat, sort of. I opt to e-mail a group of close friends to let them know about this life-altering upgrade, you know, in case they went looking for me at the wrong resort. One friend immediately re-plies, “Aren’t you supposed to be off the computer?!”

Not exactly, I protest. This is a

social media embargo, to which I threw in abstinence from my CrackBerry on account of me be-ing socially retarded. What? It was one e-mail!

Day 4What a difference a day makes!

The urge to Facebook or tweet has all but dissipated. Really, it has.

People used to describe me as a good listener before my BlackBer-ry addiction took over.

The guilt I felt for faltering on Day 3 has strengthened my re-solve to recommit myself to dis-connecting. For now, at least. It seems the longer I go without so-cial media, the less I feel the in-clination. In its place, is a sense of calm. I had expected to have symptoms of withdrawal by being disconnected.

If only my friends back home, the ones disgusted by my addic-tion, could see me now. I am the epitome of willpower. The sensa-tion is akin to eating a healthy meal – you feel satisfied, though not exactly satiated.

Day 5OK, so that whole “I don’t miss

social media” stuff isn’t true. It’s been four days since I logged onto my accounts and I’m anxious to see what my friends are up to and fill them in on my reclamation-of-sanity tour here in Antigua.

Why the sudden shift? May-be I have island fever, due to in-formation underload. Yes, it is too such a thing. You’ve heard of TMI? This is TLI – too little information. I have no idea what’s happening outside of this serene place I’ve se-lected as my respite. It’s driving me crazy.

Giving in, I head down to break-

fast with my laptop. I log on to my CNN e-mail and start devouring the recent developments of the Penn State abuse scandal – a sto-ry that I had covered prior to my departure. Soon I’m replying to e-mails and reaching out to sourc-es regarding other stories in devel-opment.

Day 6I’m leaving this afternoon. I feel

rested, and despite all my e-mail-ing the day before, I do think there has been a beneficial disconnect. En route to the airport, I savor views of the ocean and the rolling hills. Already I feel I’m learning to appreciate fleeting moments like these instead of being buried in my BlackBerry.

My two phones stay off through my journey until I touch down back at JFK. Then ... I immediate-ly turn both on and start check-ing my Twitter and Facebook ac-counts.

And I tweet: “What I missed dur-ing my social media moratorium: egypt unrest, haqqani resigna-tion, new syracuse and sandusky accusers and DWTS winner.”

What have I accomplished in this short foray into freedom from Facebook? I’m relearning how to connect. People used to describe me as a good listener before my BlackBerry addiction took over. I realize that by severing my Black-Berry dependence for five days, I removed a hurdle in my face-to-face conversations.

The flashing red light I used respond to in seconds no longer competes so urgently for my atten-tion. I feel like I’m back to normal. I’m giving those I choose to spend time with what they deserve – my undivided attention. For now.

from sunsets to sloths from Cos-ta Rica in July.)

This time, I vowed, I would rid myself of my appalling addiction – not an easy task for a New York-er who may have adult ADD – and chronicle the experience. Here’s how it went:

Day 1I start the day by announcing

– on Twitter, of course – my in-tention to unplug for the week: “As soon as they make me turn my phone off, I begin my journey which entails disconnecting from social media and my bberry for the next 5 days. I will be chron-icling my withdrawal for your amusement ...”

I get a dozen responses express-ing surprise and support. Beyond that, there isn’t a major outcry to keep tweeting – my first clue that the Twitterverse will survive with-out me.

I land at Antigua’s airport, where I’m greeted by warm sun-shine, a long customs line and a man playing Bob Marley’s “Three Little Birds” on a tin drum. All of these observations are ones I ache to tweet. When traveling alone, that’s what I do. Even with a com-panion, I still tweet, then proudly chuckle when a witty friend takes my sarcasm ball and runs with it. Not this time. I am painfully aware of my self-imposed mora-torium.

I share a taxi to my hotel with a Brooklyn woman who says with annoyance, “I’m disconnected because my iPhone gets no sig-nal here.” I arrive at the Keyonna Beach hotel to find my room help-fully has no TV, phone or clock. I immediately lock my BlackBer-rys away in the safe. Operation

By Kiran Khalid, CNN

Can a cup of coffee motivate you to relish your trips to the gym

this winter? That question is at the heart

of a notable study of caffeine and exercise,

one of several new experiments suggesting

that, whatever your sport, caffeine may

allow you to perform better and enjoy

yourself more.

The President Postwww.thepresidentpost.com December 12, 2011 C7

Health

S cientists and many athletes have known for years, of course, that a cup of coffee before a workout jolts athletic performance,

especially in endurance sports like distance running and cy-cling. Caffeine has been proven to increase the number of fatty acids circulating in the bloodstream, which enables people to run or pedal longer (since their mus-cles can absorb and burn that fat for fuel and save the body’s lim-ited stores of carbohydrates until later in the workout). As a result, caffeine, which is legal under In-ternational Olympic Committee rules, is the most popular drug in sports. More than two-thirds of about 20,680 Olympic athletes studied for a recent report had caffeine in their urine, with use highest among triathletes, cyclists and rowers.

But whether and how caffeine affects other, less-aerobic activi-ties, like weight training or play-ing a stop-and-go team sport like soccer or basketball, has been less clear.

So researchers at Coventry University in England recently recruited 13 fit young men and asked them to repeat a standard weight-training gym regimen on several occasions. An hour before one workout, the men consumed

a sugar-free energy drink contain-ing caffeine. An hour before an-other, they drank the same bever-age, minus the caffeine. Then the men lifted, pressed and squatted, performing each exercise until they were exhausted.

Exhaustion arrived much later for those who’d had caffeine first. After swallowing the caffeinated beverage, the men completed sig-nificantly more repetitions of the exercises than after the placebo. They also reported feeling subjec-tively less tired during the entire bout and, in perhaps the most in-teresting finding, said that they were eager to repeat the whole workout again soon.

“Essentially, we found that with the caffeinated drink, the person felt more able to invest effort,” says Michael Duncan, a senior lectur-er in sports science at the Univer-sity of Exeter in England and lead author of the study. “They would put more work into the training session, and when the session was finished, in the presence of the caffeinated drink, they were more psychologically ready to go again.”

How caffeine influences the physiology and psychology of weight trainers isn’t fully under-stood, Dr. Duncan says. In con-trast to endurance sports, an in-crease in fats in the blood wouldn’t provide much benefit in this kind of exercise.

Instead, Dr. Duncan says, he

How Coffee Can GalvanizeYour Workout

believes that caffeine “antago-nizes adenosine,” a substance in muscles that builds up during ex-ercise and blunts the force of con-tractions. The more adenosine in a muscle, the less force it generates. Caffeine reduces adenosine levels, “which then enables more forceful muscular contractions and delays fatigue,” Dr. Duncan says. “That’s the theory, anyway,” he adds.

Additional mechanisms may also be at work, other research suggests. For an experiment pub-lished last month in The Jour-nal of Applied Physiology, re-searchers asked a group of volunteers who regu-larly play team sports to complete a gruel-ing workout designed to simulate the phys-ical exertion of a soc-cer or basketball game. Such sports commonly involve repeated bouts of intense sprinting, but lit-tle prolonged slower run-ning. Most of the effort is an-aerobic.

In the test, the volun-teers performed about 16 percent better if they had ingested a caffeine capsule 70 minutes be-forehand. They also, as it turned out, had far less potas-sium in the fluid between their mus-cles afterward. “We believe that potassium buildup is involved” in the kind

of fatigue that occurs during an-aerobic activities, like team sports and weight training, says one of the study’s authors, Magni Mohr, an exercise physiologist affiliated with both the University of Exeter and the University of Copenhagen in Denmark.

At the same time, caffeine, while affecting muscles, seems also to have a striking effect on the cen-tral nervous system and on those parts of the brain involved in mood,

a ler t-

ness and fine motor coordination during exercise. In a study pub-lished last month in The British Journal of Sports Medicine, soc-cer players dribbled, headed and kicked the ball more accurately if they’d had caffeine than if they hadn’t.

Similarly, it’s not known wheth-er people who swill cappuccinos and green tea all day get the same benefits from dosing themselves just before a workout as people who only occasionally drink caf-feine, or whether the hour before

a workout is the

ideal moment to imbibe. Dr. Mohr suspects “it’s likely that you get more effect” if you’re not habitu-ated to the drug, but he and oth-ers are currently studying those and similar issues and expect re-sults soon.

In the meantime, “probably ev-eryone can get some” fatigue-de-laying and mood-enhancing ben-efits from caffeine, Dr. Mohr says — meaning that your gym gear should probably include a travel mug. NYT

By Gretchen Reynolds

www.sky-wallpaper.com

Photo EssayThe President Post www.thepresidentpost.comDecember 12, 2011C8

Yayasan Galuh which is located in Rawa Lumbu, Bekasi is founded in 1982. The place is better known as a rehabilita-

tion center for the mentally unfit. The patients here come from vari-ous areas. Most of them had been transferred from mental institu-tions or sent by police after they were picked up wandering the streets. The foundation sits on a 3,200-meter plot of land and has patients of up to 280 people with 60 staff, of which some are former patients that have recovered plus Gendu’s grandchildren.

Yayasan Galuh was found-ed by Gendu Mulatip who is now 96 years old. He did not have the heart to see mentally unfit peo-ple being teased at by children in his neighborhood in Bekasi. One day, a boy threw a stone at a crazy man and the man threw it back at him and hurt the child. This inci-dent upset the parent who wanted to get back at the crazy man. But Gendu stopped the parent after explaining the situation. He lat-er took the man to his house and cared for him until he recovered.

Since then, Gendu became pop-ular as a person who could cure people with mental problems. Pa-tients started to come and his house could no longer accommo-date them. This is when he decid-ed to set up Yayasan Galuh, which means ôan idea from ancestorsö, a rehabilitation center for people with mental illness, aimed to de-liberate man from psychosomatic disease. The rehabilitation center is located in Rawa Lumbu, Kam-pung Sepatan Gg. Bambu Kun-ing, Sepanjang, Bekasi. It used to be located in Kampung Pon-col Margahayu Bekasi, but was moved to the current location in 2007 because state electricity company PLN wanted to build an electrical substation on the land.

The center currently accom-modates 279 patients, consist-ing of 178 male patients, includ-ing four children plus women. Hartono and his colleagues who work here, happily accept patients who are often sent by police after picking them up from the streets or those sent by Bekasi General Hospital or brought by their fam-ily members

TEXT AND PHOTOS BY NANDI NANTI

“Happiness is Medication”

Not all patients are homeless people, many come from families with money, some are even pub-lic figures. Their problems usual-ly derive from the pressure of life such as losing a job, losing a lover, unfulfilled dreams, genetic and drug problems. Hartono said that the foundation does not set any tariff for treatments, it all depends on the patientsÆ financial capa-bility. They even welcome patients whose families could not afford to pay for free of charge.

Gendu and his staff adopt a five-step method to heal the pa-tients which comprise prayers, advices, potions, massage. Har-tono and his colleagues also often invite the patients to sing togeth-er or do daily duties and to en-gage in community activities such as cleaning up the neighborhood. The method has helped many pa-tients to recover and return to the community ôWitnessing the pa-tients recover and return to their families is a great joy for us. Once in a while they would visit us here just to say thank you,ö said Har-tono.

The foundation covers the op-erational cost from the donations it receive from women Koran rec-itation groups and biker commu-nities. They also get financial as-sistance from the government, mainly from the Social Affairs Agency of the Bekasi Municipal-ity.

The foundation cooks about 150kg of rice per day and vegeta-bles of the size of a small truck. There are 60 people to help around, 15 of them are former pa-tients. They all work voluntari-ly with little financial compensa-tion. ôI could get a much bigger salary if I work elsewhere, but no money could ever replace the joy that I get from working here,ö said one of the cooks and other staff when asked why they chose to work among people with men-tal illness.

The staff here, such as Hartono, may not have a degree in psychi-atry, but because of their long ex-perience, they were once invited to a national-scale seminar on men-tal illness to speak in front of psy-chiatrists.

We always remember Pak Gen-du’s advice and we use it to help in the healing process of our pa-tients: “Happiness is medication”.

“Make others happy to make yourself happy”- Gendu Mulatip, Yayasan Galuh Founder -

Witnessing the patients recover and

return to their families is a great joy for us.

Once in a while they would visit us here

just to say thank you.”