The President PostT H E S P I R I T O F I N D O N E S I A www.thepresidentpost.com

October 2012No. 37

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ENERGYThe Return ofLarge Hydro Power?Andritz Indonesia CEO, Josef M. Ullmer, shares his views on the increasing development of hydro power all over the world. – Page A6

PROFILEHonda Motor Company:To Share Joys with PeopleAround The World – Page B4

LIVING'Himalayan Viagra'Taking Its Toll on NepalYarsagumba, also known by the scientific name Cordyceps sinesis, has been prescribed by traditional healers in Asia for centuries to treat lung and kidney diseases, build up bone marrow and stop hemorrhaging. But it is prized for its reputation as a powerful aphrodisiac that boosts men’s sexual prowess.– Page C1

JAKARTA (TPP) – Inasmuch as labor demonstrations are a nuisance to the public at large and the business community in particular, one must above all recognize the legitimate right of workers to state their case.

However, problems arise when angry workers do not differen-tiate members of the business community that fully comply with what the government, la-bor organizations and the Asso-ciation of Indonesian Employers (APINDO) have agreed on, from those who do not.

A case in point is the business community at Jababeka Indus-trial Estate at Bekasi, south of here. The majority are foreign investors, some of which are re-spectable FORTUNE 500 com-panies—it would be unthinkable for them to shortchange their workers. However, the workers are members of labor organisa-tions and as such are obliged to take part in demonstrations al-though they have little to com-plain about in terms of wages and general working conditions.

This year alone we have seen labor organisation stage two large-scale demonstrations. As I see it, at the core of the issue is the current legislation on labor, Law No. 13/2003, which many agree is heavily partial towards workers. It was put in force by the post-reform House of Repre-sentatives (DPR-RI) to offset la-bor repression in the past, and contains ridiculous articles such as obligating companies to pay compensation to workers who are fired because they had com-mitted theft.

On the other hand, labor or-ganizations must take note that outsourcing is allowed by the law. That it is now a contentious issue between employers and workers is generally acknowl-edged as the fault of government

officials who have exercised lit-tle control over companies which supply the workers.

Another issue is mutual dis-trust: labor organizations feel that the government and the business community conspire to hold down wages as that is an el-ement that makes Indonesia at-tractive to foreign investors. On the other hand, the business community suspects that the government, for political rea-sons, is on the side of the work-ers.

cade yet have offer its workers low wages.

The current situation is also exacerbated by the outrageous behavior of some of our officials and business people: they tend to show off their wealth, are out of touch with reality and have little idea on the hardship the poor have to endure on a daily business. This causes the peo-ple to lose respect of our lead-ers and business people, pre-cisely at a time when we need to take a pro-poor stance. And

Is it Not High Time for Our Leaders to be Pro-Poor?

ment’s highest development pri-ority.

Indonesia’s poverty line is de-termined by what the poor spend on different kinds of food to reach 2,100 calories per day, as well as costs associated with dozens of non-food goods, including hous-ing, clothing, education and health care, amounting to Rp 233,740 per capita per month, or around $25. The poverty line is established as an average, as prices vary widely from urban to rural areas, and from more pros-

By SD Darmono Australian Government s Aid (AusAID) program. It has made a commitment to provide A$215 million over five years to the Na-tional Community Empower-ment Program (PNPM), support-ing the government s effort to lift its people out of poverty.

Australia supported the build-ing of 149 schools across the province, creating an estimated 26,000 school places and signif-icantly increasing access to ed-ucation in a bid to help reduce poverty in Indonesia.

We as fellow Indonesian citi-zens too can contribute in alle-viating the plight of the poor. The following is my pro-poor action plan:

The Family Planning program •must be re-invigorated so that families shall have no more than two children and as such enjoy a better level of welfare Boost Industrializaion as the •manufacturing sector absorbs large numbers of labor. The Accelerated and Expanded Indonesian Economic Devel-opment Master Plan (MP3EI) should be made into a law and its implementation accelerat-ed. This allows regions to de-velop faster and as such at-tract investorsPromote a simple lifestyle and •issue pro-people regulations in ways that would prevent the small people from holding pro-test demonstrationsThe curriculum of higher •learning institutions must be improved so that graduates can immediately be employed It’s high time that we turn pro-

poor rhetoric into deeds as the current situation has not shown much improvement.

The writer is the president director of PT Jababeka, the largest industrial estate (in Bekasi, West Java) in Southeast Asia. He is currently developing tourism sites in Banten in western Java and Morotai in eastern Indonesia.

As the government hopes to cut the poverty rate by 8 to 10% by 2014,

the implementation of the Accelerated

and Expanded Indonesian Economic Development Master

Plan (MP3EI) and the National Plan of

Action for Poverty Eradication Program

(RAN-PPK) should be expedited. It will

certainly create employment, which in turn will reduce

the national poverty rate.

To President Susilo Bambang Yudhoyono’s credit, the latest official statistics showed that 950,000 of the 1 million Indonesians who are no longer classified as poor now live in rural areas. For the record, the President has declared poverty alleviation to be his

government’s highest development priority.

It’s high time that we turn pro-poor rhetoric into deeds as the current situation has not shown much improvement.

The bottom-line is that if the government wishes to see more foreign investment coming in, la-bor seeks better wages, and the business community operates uninterrupted, the current law needs to be revamped. If these three elements can come to-gether in harmony, the gener-al welfare of society will rise as the number of poor people will go substantially down.

Admittedly, the minimum monthly wage today is the rupi-ah equivalent to $120, far below the figure of $300 or about Rp. 700,000 before the country was hit by the Asian financial crisis of 1997-98. This means we first need to raise the current level to the pre-crisis level before even thinking of raising current wag-es. So in a way it is understand-able if lately labor demonstra-tions are prevalent: the disparity is simply very, if not too, wide. Bear in mind that this country is a G20 member whose GDP has risen four times in the past de-

one way to show our sympathy for the poor is to narrow the prevailing income disparity.

Let’s look at the figures be-fore we go any further: the Pov-erty Rate in 2012 is predict-ed to be at 11.7%, while in the past three years it showed a downward trend from 14.2% in 2009, 13.3% in 2010, and 12.5% in 2011, the state statis-tics agency BPS said last year. In absolute terms, in 2011 the number of the poor in Indone-sia is just over 30 million, down from 31 million in 2010. Re-markably, the figure decreased despite the government’s rais-ing the poverty line by about $2.60 last year.

To President Susilo Bam-bang Yudhoyono’s credit, the latest official statistics showed that 950,000 of the 1 million Indonesians who are no longer classified as poor now live in rural areas. For the record, the President has declared pover-ty alleviation to be his govern-

perous regions such as Jakarta to poorer remote ones, like the is-lands of Nusa Tenggara.

As the government hopes to cut the poverty rate by 8 to 10% by 2014, the implementation of the Accelerated and Expanded Indonesian Economic Develop-ment Master Plan (MP3EI) and the National Plan of Action for Poverty Eradication Program (RAN-PPK) should be expedited. It will certainly create employ-ment, which in turn will reduce the national poverty rate.

The unemployment rate in the past three years showed a down-ward trend from 8.0% in 2009, 7.3% in 2010, 6.7% in 2011, but the decline did not equal to eco-nomic growth achievement over 6.0% in 2010 and 2011.

Fortunately, there are oth-ers like Australia, which has shown an interest in addressing the poverty situation here, par-ticularily in West Nusa Tengga-ra (NTB) province, through the

Josef M. Ullmer

A2

Opinionwww.thepresidentpost.comOctober 2012

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ENGLISH EDITION

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

Labor and Politics:an International Perspective

By Muchtar Pakpahan

This article is useful not only for workers but also for others, including business-people. If the labor union is strong, po-

litical stability built by the labor union is maintained, and en-trepreneurs will be able to keep their businesses running and generate profits. And this will eventually lead to a strong econ-omy that will enable the country to provide justice and prosperity for its workers.

In the international communi-ty there are three models of la-bor-politics relationships:

Labor unions associated with •to political parties as seen in authoritarian countries such as communist states and In-donesia during the New OrderLabor union that runs a po-•litical party as seen in welfare states such as Brazil, Germa-ny, New Zealand and Great BritainLabor unions that develop •mutual symbiotic relationship with political parties as in the case with the AFL-CIO (Amer-ican Federation of Labor and Confederation Industries Or-ganization) and the Democrat-ic Party in the United States.

In other words, a Model 1 re-lationship can be found in com-munist countries and Indone-sia during the New Order, where workers are treated as a politi-cal object. But labor movements such as ITUC and ILO wanted to do away with the practice and are popularly fighting for Models 2 and 3.

When I was the vice presi-dent of World Confederation of Labour (WCL) 2001-2005, and member of ILO’s Governing Body 1999-2005, I had the opportuni-ty to visit all developed countries whose people and workers lived in prosperity. Countries with prosperous citizens have strong

ous life and each year New Zea-land is chosen as one of the cor-rupt-free countries in the world alongside Singapore, Sweden, Norway, Finland, and Denmark.

Germany. In 1949, all Ger-man labor unions joined DGB (Deutscher Gewershaft Bun). DGB, which is dominated by metal workers, became the um-brella especially in matters relat-ed to politics for all labor unions. In politics, DGB controlled the Social Democrat Party (SDP), which used to be called the So-cial Democrat Labour Party. The chairman of SDP usually be-comes a chancellor when SDP wins the general elections. When the chancellor comes from SDP, they would impose a welfare state. Germany is known as the country that adopts the stron-gest welfare state in the world as well as the promoter of the wel-fare state. There are two major political parties in Germany, So-cial Democrat Party and Chris-tian Democrat.

Great Britain. Britain has a long history of labor union. Since 1868, Britain only has one um-brella for labor unions, the TUC (Trade Union Congress), com-prising 58 labor unions. TUC has a strong connection with the Labor Party because if the par-ty wins the general elections, the party’s president automatically becomes the prime minister. In Britain there are two major polit-ical parties, the Labor Party and the Conservative Party. Since Britain is the country where the history of labor union started and where the founding father of labor union, Karl Marx, lived and died, Britain is naturally the oldest welfare state in the world.

Poland. When Lech Walesa fought to advocate laborers, Po-land was a communist country with labor unions being under the control of the state and the communist party. In a condition where workers were treated only as a political object, Lech Wale-sa took charge of NSZZ (Nieza-

Industries Organization). In the early 20th century, both unions merged into AFL-CIO. AFL-CIO always signed a political contract with the Democrats in every gen-eral election and the Democrats also always kept its commitment with the labor union. My expe-rience with President Bill Clin-ton was that he was very com-mitted with AFL-CIO’s concerns. Since John Sweeney, the pres-ident of AFL-CIO, was a friend of mine, I also became friends with President Bill Clinton. The three of us along with four for-mer heads of states (Peter of Bul-garia, Wim Kok from the Nether-lands, Mario of Costa Rica, see www.muchtarpakpahan.com) became the founders of Global Fairness Initiative Foundation (GFI) based in New York. AFL-CIO is the strongest labor union in the world.

Now let’s go back to Indonesia with its MPBI (Indonesian Labor Council), which was declared during May Day at the Gelora Bung Karno stadium. MPBI has been given the mandate to: erad-icate outsourcing & contract-based work, to realize a decent wage, to stop union busting, and to assure that social, health and labor security is implemented by January 2014.

All those hopes are part of the government’s political poli-cies. Eradicating outsourcing is the constitutional job of the law-makers. Protecting workers from union busting is the task of the government. If MPBI wants to successfully realize the hopes pinned by the workers that it represents, it must enter politics. It can study one of the models explained above. But it should be based on this order: workers unite, Labor Party wins. If Labor Party wins, civil servants’ sala-ry will be more than just decent, law will be enforced, graft will be eradicated, and the people/work-ers live in prosperity. Eventually, entrepreneurs will be able to run their businesses peacefully due to legal certainty.

The choice now is to partici-pate in the 2014 general election or to remain as an observer and wait for 2019. Or do we still pre-fer the rhetoric of being indepen-dent? All of the examples above showed how strong the indepen-dence of a labor union is because labor unions determined the po-litical parties’ policies and not the other way around.

Entering politics in Indonesia requires a huge amount of cap-ital. This is exactly the problem faced by the Labor Party when it failed to get a seat in the par-liament. Professional business-people who are longing for law enforcement should join hands with workers to run the labor party. The slogan is, Labor Par-ty wins, entrepreneurs benefit, country’s economy grows stron-ger, and workers live prosperous-ly. Long live MPBI!

The writer is a labor activist and is a lecturer at the Law Faculty of the Indonesian Catholic Univ ersity (UKI)

lezny Samorzadny Zwiazek Za-wodowy) or Solidarnosc. When the reformation took place in late 1980s, the general election also took place. Solidarnosc, a labor union which also served as a political party, nominated Lech Walesa, who was later elected as president. Since then Poland is a democratic party that imple-mented a welfare state. Poland is the only country whose labor union became a Labor Party. This condition was initially crit-icized by the world’s labor lead-ers.

Brazil. There are four labor unions in Brazil, namely CUT (Central Unica dos Trabalha-dores); CNPL (Confederacao Na-cional dos Profissoes Liberaes); FS (Forca Sindical) and UGT (Un-iao Gerald dos Trabalhadores). The biggest is CUT, which is un-der the leadership of Luis Inacio Lula da Silva, who is popularly known as Lula. CUT set up the Labor Party in the late 1980s. Lula failed to run as president three times in 1990, 1994, and 1998. He was eventually elected as the president in his fourth at-tempt, in 2002, after three oth-er labor unions (CNPL, FS and UGT) gave their support to the Labor Party. In 2001, Brazil saw high unemployment and crimi-nal rates and many of the peo-ple’s lands were seized by con-glomerates. After Lula became the president of Brazil and the welfare state was implemented, the jobless and criminal rates dropped low and lands that were seized from the people by con-glomerates were returned to the owners. The people of Brazil chose someone from the Labor Party to replace Lula. The same was also experienced by South Korea and South Africa.

Now I would like to explain the symbiosis-mutualism pattern adopted by the United States between the AFL-CIO and the Democratic Party. There were two major labor unions in the US, AFL (American Federation of Labour) and CIO (Confederation

labor unions. A strong labor union would have a strong influ-ence in a political party, which is generally called the Labor Party. A party backed by a labor union is a party that adopts the mid-dle-left, social democrat ideology and is grouped under Socialist International (SI) or an associa-tion of world labor parties.

If SI is an organization com-prising members from parties backed up by labor unions that adopt the social democrat (mid-dle left) ideology, the ITUC (Inter-national Trade Union Confeder-ation) is the mother organization of the national labor unions. In Indonesia, members of ITUC are KSBSI (Confederation of Pros-perous Indonesian Labor Union) and KSPI (Confederation of Indo-nesian Labor Unions). ITUC is a merger between WCL and ICF-TU (International Confederation of Free Trade Union) in 2006.

The following are in brief Mod-el 2 relationship between labors and political parties in several countries that I visited:

New Zealand. It used to have two major labor unions, NZFL (New Zealand Federa-tion of Labour) and CSU (Com-bined States Union) in addition to smaller ones. In 1987, NZFL and CSU merged to form NZC-TU (New Zealand Confederation Trade Union). Today, NZCTU has 39 affiliated labor unions. NZC-TU, which represents workers, officially controls the Labor Par-ty. The president of the Labor Party is always a functionary from NZCTU, but he/she is not allowed to take a political posi-tion in the government, become a parliament member, minister or a prime minister. The party’s president’s job is to represent the labor unions, oversee and con-trolling political officials from the Labor Party. The president of the Labor party for 2009-2011 period was Andrew Little, who was also the secretary general of NZCTU. With such relationship, workers in New Zealand were able to enjoy the most prosper-

Entering politics in Indonesia requires a huge amount of capital. This is exactly the problem faced by the Labor Party when it failed to get a seat in the parliament. Professional businesspeople who are longing for law enforcement should join hands with workers to run the labor party.

www.beritafoto.net

In the international

community there are three models of labor-politics

relationships: Labor unions

associated with to political parties;

Labor union that runs a political

party; andLabor unions that develop

mutual symbiotic relationship with political parties.

A3

Opinionwww.thepresidentpost.com October 2012

The center of the world economy has been moving to Asia even faster than anticipat-ed. As a result of the

world financial crisis, this pro-cess accelerated. Rather than 1989 to 1991 at the end of the Cold War marking the criti-cal point, as many in the west-ern countries has decided, some eyeing the emergence of the G-20 with eight states from the enlarged 18 nation of east asian states (EAS) consider this to be the actual turning point. As the Cold War ended, Asia Pacif-ic Economic Caucus was formed in 1989 in Canberra, Australia, bringing together states from four main continents (Asia, Aus-tralia, America, and Europe) on both sides of the Pacific region.

Backers of exclusive Asia re-gionalism had anticipated mile-stones to boost ties significantly, especially economic integration. Indonesian government through the state foreign ministry should seriously consider the impor-tance of economic diplomacy that is ongoing and long term. However, the trend so far, Indo-nesia's economic diplomacy is still reactive and sporadic. For-eign policy inability to generate the whole economic diplomacy, comprehensive, and long term will only produce a limited range of export output. Conversely, if state foreign minister can opti-mize the economic diplomacy, it will impact very significantly to the enhancement of national ca-pacities and capabilities of Indo-nesia's economy is now sinking.

Economic diplomacy current-ly is facing at least three impor-

from Japan. Regarding technol-ogy transfer opportunities, giv-en the attitude of Japanese in-vestors who had been impressed by stingy to transfer technolo-gy, the Economic Partnership Agreement (EPA) agreement that regulates the manufacturing In-dustrial Development Centre Ini-tiative is “a strategic opportu-nity” for Indonesia to improve utilized standard and the qual-ity of export products.

The relations between Indone-sia and Japan which has been running up to 54 years that a lot of impact for the Indonesian economy. Both positive and neg-ative impacts, the development is expected in the future could be more tightly. As given the same circumstances and some of the positive factors that can help the expansion of relations with these two countries. Indonesia and Ja-pan are both peace-loving coun-try, a country that always up-hold human rights democracy and appreciate toward good gov-ernance.

Indonesia and Japan relation-ship is mutually beneficial be-cause Indonesia needs not only in the Japanese economy but also in the field of educational technology and so on, while Ja-pan takes Indonesia in terms of natural resources availabili-ty (SDA).

With holding of this Econom-ic Partnership Agreement (EPA) agreement can be concluded that the government has done in re-sponse to competitive challenges facing Indonesia as a partner in maintaining the position of the Japanese economy, abn mean-while maintaining the compet-itiveness of national economy. The initiative is a manifestation

Indonesia Economic Diplomacy Strategy

By Hendra Manurung US$ 2.2 billions (Rp 22 T), Pap-ua region US$ 1.3 billions (Rp 13 T), and East Java region US$ 1.3 billions (Rp 13 T). The follow-ing sequence of five of the coun-tries that put the investment in Indonesia in the first quar-ter of 2011: (1) Singapore, an in-vestment of US$ 1,138.7 billions with 142 projects; (2) America, an investment of US$ 359.1 bil-lions with 24 projects; (3) Japan, an investment of US$ 345.2 bil-lions with 78 projects; (4) British Virgin Islands, an investment of US$ 198.3 billions with 30 proj-ects; (5) British investment of US$ 163.0 billion with 36 proj-ects. Moreover other investment of US$ 2,191.4 billion with 592 projects. Afterall for the overall investment of US$ 4,395.7 bil-lion, with 902 projects (BKPM Data 2011).

Indonesia Minister of Foreign Affairs, Mr. Marty Natalegawa stated that, Indonesia's foreign policy can not be separated from changes in the strategic environ-ment of the global and region-al level, as an order to provide a challenge and an opportunity for the national interest achieve-ment. In actualize the imple-mentation of foreign policy in-dependent and active, therefore achievement of Indonesia's na-tional interest is the contribution of diplomacy and foreign policy in creating an international en-vironment-friendly and condu-cive to Indonesia (Foreign Affairs Ministerial Meeting 24 February 2012).

Jababeka Infrastructure, as a subsidiary of PT. Jababeka Corporation has signed a coop-eration agreement with PT Sig-ma Cipta Caraka, who is also a subsidiary of PT. Telkom Indone-sia Tbk in the field of Data Cen-

ter services are held on May 4, 2012 at the German Center Building Indonesia of BSD Ser-pong. This cooperation agree-ment was signed by Mr. Hyanto Wihadhi, as Director of Busi-ness Operations PT Jababeka and Mr. Rizkan Chandra, as President Director of PT. Sigma Notices Caraka.

The Memorandum of un-derstanding (MOU) is aimed at building a data center which will be the answer to the quali-ty standards for safety and high technology service needs in the field of Information Technology (IT) for foreign investment com-panies in Jababeka industrial estate, and its surrounding ar-eas, the service will integrate this data center, that can be a solution for other companies outside the Cikarang region, who need services in the field of data provision, considering the location is easily accessible, quickly, which is one advantage to have data center. Data cen-ter itself is a place used for the placement of a collection of serv-ers or computer systems and data storage systems (storage) that is conditioned by the avail-ability of power supply arrange-ments of certain standards, the setting temperature, humidity and air circulation, preventing fire hazard and is also equipped with a layered physical securi-ty systems. Establishment of data center plan in cooperation with PT Sigma Cipta Caraka with Jababeka Infrastructure is a form of strategic telecommu-nication agreement which is al-ways evolving to make it easy, link and match, and comple-ment the needs of telecommuni-cation sectors in the City of Ja-babeka, whether for industrial, commercial, education, bank-

ing in conducting its activities to improve performance and the re-liability of industry and business in general.

Significant growth in the num-ber of small and medium entre-prises (SME) in Indonesia has grown continuously, shows the percentage of total growth of 10% with the initial growth of 7.9% to 17.9% in 2006-2008. Based on data from the State Minis-ter of Cooperatives and SMEs, the number of SMEs in Indone-sia continues to rise significant-ly because in 2006 the number of SMEs ranges from 48,611,233 units in 2007 rose to 49,824,123 units in 2008 while drastically increased to 51,257,537 units. From these data can be seen the growth of SMEs increased significantly by 5.4% seen from the growth of SMEs in 2006 and compared with the growth of SMEs in 2008, the contribution of SMEs to the economy is signif-icant. Because it proves the exis-tence of rapid development that requires good organization and management in order to enter the market the ASEAN Econom-ic Community by 2015.

Finally, to be concluded that, expected quality and competi-tiveness of SMEs in Jababeka in-dustrial estate will be able to be maintained shaft driving force of the Indonesian economy and contribute to economic growth by fostering the skills and man-agement of SMEs in improving human resources quality.

Hendra Manurung, is currently Full Time Lecturer of International Relations, Faculty of Business & International Relations (FBI) at President University, Kota Jababeka Cikarang

tant issues, namely: First, The relationship between econom-ics and politics; Second, The re-lationship between the environ-ment with a variety of domestic and international pressure; and Third, The relationship between state actors and non-state (pri-vate industrial actor / private in-dustrial sector). Moreover, this combination of three relation-ships that ultimately became one of the main colors of the environ-mental dynamics of contempo-rary international relations.

The formation of Indone-sia and Japan Economic Part-nership Agreement (EPA), was signed on 20 August 2007, as an agreement which is expect-ed to increase the flow of trade between the two countries, and to facilitate Japanese investment into Indonesia. For Indonesia, the Indonesia and Japan Eco-nomic Partnership Agreement is one of the very significant agree-ment because, it is an Indone-sia's first bilateral legal trade agreement with other countries. By signing this agreement the Indonesia industrial sectors is expected to gain some benefit, such as: First, for easier access to Japanese markets for manu-facturing products of Indonesia; Second, access for Indonesian workers who had previously en-tered the Japanese market tend to be closed; Third, maintain-ing the competitiveness of Indo-nesian products in the Japanese market compared to products from other countries considering the reduction of tariff barriers; Fourth, consumers in Indonesia will benefit from the increasing number of alternative Japanese products entering the Indonesia market; Fifth, opening further opportunities to encourage the process of technology transfer

Indonesian government through the state foreign ministry should seriously consider the importance of economic diplomacy that is ongoing and long term. However, the trend so far, Indonesia's economic

diplomacy is still reactive and sporadic. Foreign policy inability to generate the whole economic diplomacy, comprehensive, and long term will only produce a limited range of export output.

of economic diplomacy in adapt-ing to external challenges faced especially in the context of eco-nomic competition in the region.

For Indonesia’s interest, which is more important is how to make Indonesia and Japan econom-ic diplomacy as a springboard to make corrections in the country is fundamentally and thorough-ly for the greatest welfare of the people. In order for Indonesia to compete with other countries and Indonesia could also make cooperation with other coun-tries. Therefore, hopefully it will lead to new awareness and add impetus to host a regional coun-tries to realize economic inte-gration in East Asia region are seen as more realistic than co-operation within the framework of Asia Pacific Economic Coop-eration (APEC). By involving Ko-rea and China, so that East Asia region will potentially be a bal-ancing force against the domi-nation of the United States and Europe.

According to the Indonesia’s Investment Coordinating Board State Minister (BKPM), Mr. Gita Wirjawan, Japanese investment in 2011, for transportation, stor-age, and telecommunications in-dustrial sectors were approxi-mately US$ 3.8 billion, US$ 3.6 billion in mining, electricity, gas, and water itself around the US$ 1.9 billion. Meanwhile, industry base metals, goods, metal and electronic machinery around US$ 1.8 billion, and basic chem-ical industry, pharmaceutical and chemical goods around US$ 1.5 billion. While the foreign in-vestment (PMA) is based on the realization of the project site es-tablisment is DKI Jakarta re-gion US$ 4.8 billions (Rp 48 T), West Java region US$ 3.8 bil-lions (Rp 38 T), Banten region

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Focuswww.thepresidentpost.comOctober 2012

IMPORTANCE OF GDP GROWTH

In terms of GDP growth Indonesia has shown a remarkable achievement. With its growth rate of higher than 6% during

the years 2000-2010, the coun-try has reached the list of top growth countries, trailing only behind China and India.

It has reached far above the average rate of the high-income countries in Europe and the United States (which is around 2%) and even above the world average growth (of around 2.8%). It has reached an even higher growth than Brazil, which is one of the top ten emerging countries belonging to the BRIC countries.

A DECADE OF ROBUST GROWTH

In the years to come Indonesia has to deal with quite a number of transitions and development policies to continue to be on the right track. This should among others include:

The intensification of growth •for a large number of econom-

dle class amounted to 81 mil-lion in 2003 rising to 131 million in 2010. Every year more than 7 million people jump from the low-income bracket to the mid-dle class during that period.

In an article appearing in The Economist in July last year, Bank Nomura reckoned that in 2004 Indonesia’s “newly rich” people numbered 1.6 million. It expanded to about 50 million in 2011 and could reach to almost 150 million by 2014.

Among Southeast Asian coun-tries Indonesia has the the larg-est number of Middle Class. Even in terms of world develop-ment Indonesia is rated among the largest pool of the Middle Class. This is quite an achieve-ment, as presently most people only know about the many poor who are indeed still lagging be-hind. Every year, however, mil-

lions of them will slowly enter the Middle Class.

The rise of the Middle Class (at a rate of 7 million a year) is di-rectly linked with the increase in consumption. This trend is not only happening in Indonesia but also in other emerging countries in Asia such as India.

As a result thereof Indonesia is considered as one of the world’s most enticing markets. Coun-tries around the world are look-ing at Indonesia as a big eco-nomic partner among others because of Indonesia’s expand-ing markets.

But such an image must be changed. Indonesia should not be seen as a dumping ground for the bulk of international goods. It should be seen as an effective economic powerhouse, with rich natural resources and effective and productive human capital.

ECONOMIC OVERVIEW

Indonesia’s Growing Middle Class

By Atmono Suryo

COMPOSITION AND ACTIVITIESThe Middle class is com-

posed of three categories: name-ly the upper category – the mid-dle and the low category. The low and middle strata form by far the largest grouping. The high class is still in the minority but in terms of assets and spend-ing they are the most fortunate ones.

As a whole, the Middle Class in Indonesia are big spenders and big consumers. According to data appearing in the media, last year car sales neared the 1 million mark, causing big traf-fic congestions in Jakarta and in many other cities. About 8 mil-lion motor-cycles/scooters were sold compared to 1.7 million in Thailand.

It is said that in the area of mobile or smart phones and oth-er devices Indonesia is becom-

ing the second-largest number of Facebook members and inter-net users in the world, plus the third-largest number of twitter users.

In the area of computers mil-lions are reaching almost every corner on the island of Java. It is claimed that many internet us-ers in far away villages start to export their goods to Europe and other regions.

Peter Drysdale of the East Asia Forum last year stated that Asia is predicted to add 2.5 bil-lion people to the world’s mid-dle class in the next 20 years. It is also stated that the emerg-ing middle class is already a key driver of Asia’s economic growth because of its demand for goods and services. It is also the prima-ry source of savings and entre-preneurship.

STRENGTHENING THE MIDDLE CLASS

The recent discussion at the Financial Club together with Sampurna reveals that in Indo-nesia not much is known about this growing part of Indonesia’s human capital. In addition very little studies have been made about its development, let alone the right notions what the gov-ernment and the private sector should do to strengthen Indone-sia’s Middle Class.

As is the case with India, In-donesia’s Middle class is well-ed-ucated and more demanding of better services, better products and better life styles. It is expect-ed that in Indonesia they should also be more enterprising, inno-vative and creative as the players in South Korea, India and Chi-na..

Engine of growthIndonesia will have the chance

to seize the opportunity to make the Middle Class another en-gine of growth. This opportunity should not be lost. Otherwise the country would become a country of misery and a center of millions of unemployed Middle Class peo-ple.

It is of immense importance to underline and support World Bank’s suggestion that Indone-sia would need the critical mass of skilled professionals to ensure the robust development of the Middle Class.

So far, however, no special ef-forts have been made to assist the Middle Class and to strengthen their position. The growth of the Middle Class has been left en-tirely to the interplay of market forces but seemingly with suc-cess. The growth of small or me-dium-scale enterprises in many areas has been enormous, often with the assistance or in part-nership with their partners from other neighboring countries.

In order to further strength-en the Middle Class, special ef-forts and special programs have to be initiated as early as pos-sible to beef up their education, entrepreneurial and skill devel-opment in various potential ar-eas and regions. Not only in Java and Sumatra but also in the out-er-islands, which have now to be developed in the fastest and ef-fective way yo take the country into the 10 largest economies of the world as predicted by the in-ternational community.

The writer is former ambassador to the EU

ic sectors including the indus-trial and agriculture & fisher-ies sectors;The strengthening of the grow-•ing Middle Class to become another engine of growth not only in the area of consump-tion but in particular in the area of production.

THE RISE OF THE MIDDLE CLASS

Indonesia with its high GDP growth is experiencing new waves of the younger generation climbing up the social-economic ladder to enter the Middle Class.

There are different estimates about the size of the Middle Class, ranging from about 30 million to more than 100 million people, depending on the criteria or yardsticks used.

According to some earlier data from the World Bank the mid-

Figure 1. Cumulative GDP growth (%): 2000 to 2010

Source World Bank

200

180

160

140

120

100

80

60

40

20

0

Figure 2. Middle Class SpreadAmong Southeast Asian countries Indonesia has the the largest number of Middle Class. Even in terms of world development Indonesia is rated among the largest pool of the Middle Class.

Source: Nomura; World Bank; CEIC *) $3,000 annual household disposable income**) Forecast

Chi

na

Indi

a

Indo

nesi

a

Mal

aysi

a

Philip

pine

s

Thai

land

Braz

il

Wor

ld

Hig

h-in

com

e

Size of middle class*, m

Indonesia

Philippines

Thailand

Vietnam

Malaysia

1000 50 150

2004

2009

2014**

A brand plays an important

role during the marketing process

of the product. If a consumer is satisfied with a certain product

and want to buy it again, he/

she could easily get the product again by simply mentioning the

name of the brand.

A5

Law & Regulationwww.thepresidentpost.com October 2012

Business is about trading activities that speaks about the process of pro-duction and distribu-

tion of goods or services. Build-ing a business is not an easy job. There are many factors that con-tribute to the success of a busi-ness, beginning from capital, management, marketing, hu-man resources and more.

When we talk about sales ac-tivities of a product, there is one important and interesting factor that we cannot ignore as it plays an important role to make the business or sales of the product successful and it’s called brand. This article will discuss the com-mercial, and the legal aspects of a brand as an asset of a business that needs to be protected.

What is brand?Brand is an intellectual prop-

erty right (IPR) protected under Indonesia’s legal system. Intel-lectual property is invented by humans and they deserve legal protections due to their econom-ic value as they can generate economic profits for the parties that own them.

Brand is regulated under Law No. 15/2001 on Brand. Article 1 clauses 1 and 2 define brand as follow:

Brand is a sign that comes in 1. the form of graphics, name, words, alphabets, numbers, colors, or combination of those elements that have a differen-tiating ability and is used in trading activities of goods or services.Trade mark is a brand used 2. on goods traded by a person or several people simultaneously or a legal entity to differentiate it with other similar products.

Based on the definition above, we can see that the characteris-tic of a brand is that: it’s a com-position that serves as an iden-tity of the product, because the composition for brand A can dif-ferentiate product A from prod-uct B and from other products.

Why is brand important and needs to be protected?

Brand is the identity of a prod-uct. The specific composition that makes up the brand is an inseparable part of the product’s image. They carry a product’s image, a brand plays an impor-tant role during the marketing process of the product. If a con-sumer is satisfied with a certain product and want to buy it again, he/she could easily get the prod-uct again by simply mentioning the name of the brand. A brand represents the reputation of the product that in our daily life we often find very popular brands that have become so close to the public because the public trust-ed the products’ quality.

Brand is an Identity of a Product andan Asset That Needs to be Protected

What are the elements of a brand?

The law on brand in Indone-sia still regulates the conven-tional two-dimension brands that are made up from graphics, names, words, alphabets, num-bers, colors or combination of those elements. But in line with the people’s growing creativity, discussions on three-dimension brand protection have also start-ed to evolve. The discussions re-sulted in the “Singapore Treaty”, an international agreement that paves the way for three dimen-sion, hologram and non-conven-tional brands to be registered.

How to protect the brandBrand protection is given ex-

clusively to the first person that registered it. The exclusive right means that the first person that registered the brand is entitled to use the brand for trading activi-ties and that only he/she is enti-tled to the right. No other parties can use a brand the same as the one that has been registered.

The system used in the brand law is the first to file. The first person to file the brand will get the protection, not the first user. That’s why the process to file the brand is very important.

The brand can be registered at the directorate general of in-tellectual property rights by sub-mitting all necessary documents and meeting all the require-ments as stipulated under Law No. 15/2001 and Government Regulation No. 23/1993 on how to file a brand.

Since a brand is equal to identity, then…

A brand is the identity of a product and therefore it’s most important that it should not confuse people. It would pose a problem/dispute if a brand bears some similarities to an-other brand.

Article 5 (b) of the brand law read: A brand cannot be regis-tered if the brand does not have one of the elements as follow: (b) it has no differentiating ability;

Article 6 clause 1 of the brand law: “The directorate general must reject the filing of a brand should it:a. has basic similarity or total-

ly the same as a brand owned by another party that have al-ready been registered for the same goods and/or services;

b. has basic similarity or totally the same as a popular brand owned by another party for the same goods and/or servic-es.

c. has basic similarity or totally the same with an already pop-ular geographic indications.”

One of the examples of a dis-pute over the basic similarity between two trademarks is the dispute between Cap Kaki Tiga brand and Cap Badak brand.

The dispute involved PT Sinde Budi Sentosa, the owner of the Cap Badak brand that uses graphics/ picture of a rhinoceros and a “Cap Badak” label and PT Kinocare Era Kosmetindo, the li-cense holder of Cap Kaki Tiga. The problem emerged because Cap Kaki Tiga uses the same rhinoceros picture with the one used by Cap Badak that it’s con-sidered to have a basic similar-ity with the Cap Badak brand. This will confuse consumers be-cause it eliminates the function of the product’s identity. As a re-sult, the Supreme Court ordered in its ruling No. 595 K /Pdt.Sus/ 2011 dated 17 October 2011 that the directorate general of intel-lectual property rights annul the trade mark certificate for Cap Kaki Tiga and the picture of the rhinoceros according to the reg-ulation about the revocation of a filed trademark.

Steps to avoid brand disputesWhen a businessman wants

to start a business, start produc-ing a certain product and then decides to give the product an identity, there are several things that need to be considered in or-der to avoid any future dispute:

Check brands that have al-1. ready been registered to pre-vent the brand that you want to register is the same as a brand that is already exclu-sively owned by other par-ties. Registered brands can be checked from the website of the directorate general of in-tellectual property rights at http://www.dgip.go.id/merek and then click “layanan on-line”/data merek Indonesia.Study the specification of the 2. goods/services. One brand can be registered for more than one specification of goods/ser-vices. This will have an impact on the cost aspect.Be a creative businessperson 3. with a good intention. Cre-ate a specific brand composi-tion for the product’s identi-ty which describes the quality of the product that will be put on the market. Don’t take ad-vantage of an already popular brand for your own benefit.

By Paulus Khierawan

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The system used in the brand law is the first to file. The first person to file the brand will get the protection, not the first user. That’s why the process to file the brand is very important.

A6

Energywww.thepresidentpost.comOctober 2012

maintenance. Hence, invest-ments in new automation devic-es, supervisory control and data acquisition (SCADA) system, turbinegovernors and protec-tion devices are highly beneficial to the Utility Company. Unfortu-nately, such practices are rare-ly considered in a usual mainte-nance concept. Many companies follow “change as it breaks” prac-tice which is no longer accept-able in the modern world where the availability of continous pow-er is the norm.

I hope that PLN will apply the “fleetcare concept” to meet the need for rehabilitation and mod-ernization of their assets to as-sure that they are maintained properly and in the most cost ef-fective manner.

R.: How would you see the further roles of hydropower over the next decades in se-curing the national energy mix in countries where the re-sources are available like In-donesia? In particular, do you see any future for large hydro-power plants with capacity be-yond “run off/ofriver” tech-nology?

JU: As already mentioned be-fore, most countries embark on the full utilization of their tech-nically and commercially feasi-ble hydro resources to become more energy self-sufficient and to make a non-tradable com-

modity tradable. Therefore,I see many more initiatives to utilize renewable energy use also in In-donesia.

The recent move by the Indo-nesian government to require the processing of minerals with-in the country will also spur the demand for cheap electric-ity. Hydro power is, I beleive, a

The Return of LargeHydro Power?

good solution to meet the pow-er needs of the mining operators to process their mining outputs. The existence of hydro power in scarcely populated areas, where most mining operations are lo-cated, could also spur local eco-nomic development, which other-wise will not happen. In addition it will also help break the cur-rent dilemma of the supply and demand situation in rural and underdeveloped areas where re-sources are abundantly avail-able but no power development is happening because of the lack of adequate demand. The existence of power will attract more invest-ments in the area which will ben-efit the local people and also at-tract skilled transmigrants from the densely populated areas like Java.

R: If the world is still shun-ning “large hydro”, how do you (Andritz) respond this chal-lenge strategically?

JU: The fact is the develop-ment of large hydro was, and is always, complicated due to the need for careful evaluation of all stakeholders’ concerns about the impact on livelihoods in the area affected by the project. Howev-er, we have seen during the last decade, that generally the proj-ect activities from the planning phase to the project implementa-tion are much better coordinated and communicated than in the past. As such, we still very much

see a considerable demand for large hydro projects in the fu-ture. As for really large but man-ageable hydro projects we have to look more at Brazil which has developed hydro power capacity in the range of 1000-3000 MW, rather than at China, where the capacity built there is extraordi-narily big.

What the Chinese have ac-complished with the Three Gorg-es Hydro Power Plant was of course admirable, but this gar-gantuan project has raised se-rious questions among environ-mentalists about its enormous impacts on the ecology over such a huge area along the Yang Tse River system. This, I believe, has contributed to the growing criti-cism of large hydro power devel-opment seen from environmental point of view. By the way, I was informed that the real plan de-veloped by the Chinese govern-ment to build such huge dams in the first place was to control flooding in the provinces, and utilizing the reservoir to generate enormous power in the process. If this was true, the Chinese gov-ernment presumably saw the de-velopment of the hydro power as an enormous bonus.

R: The International Hydro-power Association (IHA) is-sued a protocol for large hydro power development last year. Do you think it would help

Andritz Indonesia CEO, Josef M. Ullmer, shares his views on the increasing development of hydro power all over the world, even large hydro power developments which so far have been “discouraged” by some influential organisations like Friend of Rivers for their apparent negative impact on ecology and environment. Here are his answers to questions put by RESPECTS on the issues around the large hydro power developments.

R.: There are signs across the globe that hydro power de-velopment is getting more at-tention from governments and developers. This could be due to the persistenthigh price of oils, and increasing price of coal recently. From Andritz and your personal perspec-tives, how would you respond to this?

JU: I think itshould be seen as a general trend in the world in the development of renewables to reduce dependence on, or entire-ly replace, fossil energy for the reasons we know, like the ever increasing oil and coal prices or wanting to convert resources which are otherwise non-trad-able to be tradable as electricity. Also some countries like Malay-sia, Laos and Ethiopia see the de-velopment of hydro power plants as the possibility for exporting the electricity to their neighbor-ing countries to earn foreign ex-change income and use the large amount of power available for lo-cal development and to reduce or alleviate poverty.

This trend is evidence of the coming of age of renewable ener-gy resources like wind and solar, which are becoming increasing-ly competitive against fossil ener-gy. Even an advanced industrial country like Germany is relying heavily on wind and solar in its new energy policy, after it decid-ed to discontinue its use of nu-clear power in the aftermath of Fukushima nuclear meltdown in March 2011 (see Main Story of this Edition).

Actually hydro has a long-standing reputation of being re-liable and relatively cheap, if not the cheapest, energy resourc-es in the world for over a centu-ry. If Germany had ample hydro power resources, I guess it would develop it first to replace nuclear. But the concept of hydro pow-er has recently been extended by including the kinetic power of the ocean like waves and cur-rents and also the ocean thermal energy conversion (OTEC) tech-nology. (Discussed in the previ-ous issue of RESPECTS).

This broadening definition of hydro power is a major step for-ward in utilizing hydro power without needing the large dams so heavily critized by environ-mentalists. Many energy ex-perts in the world are consider-ing ocean energy as the future hydro power resource, especial-ly where the resources found on land are limited. I see also that an increasing number of govern-ments around the globe are pay-ing more attention and are eager to embark into developing ocean energy

R.: There are also urgent needs for refurbishment of older hydro power plants in the world, as many plants are over 30 years old. How would you respond to this prospect, and as far as Indonesia is con-cerned, which plants do you think need a major overhaul. Should PLN and the govern-ment decide to do the ma-jor overhaul, what will the ef-fect be on the national energy mix in the short and medium term

JU: I see there is a growing worldwide demand for rehabil-itation and modernization, not only to maintain the availabil-ity of the power-generating as-sets but also to make use of to-day’s new hydraulic shapes and possibilities. In this industry, it is generally assumed that af-ter 20-25 years of operation, a hydropowerplant would bene-fit greatly from rehabilitation, modernization and upgrading of

its essential components.Hence for a utility company like PLN, a structured and planned fleet care routinewould have the ben-efit of handling the maintenance operation in the most cost effec-tive way. Not only can the devel-opment spending be focused on the actions and the plants most needing the maintenance, but also the most economical solu-tion for the utility can be estab-lished to extend its economic life and avoid forced outages which will increase exponentially af-ter 20-25years of operation if no proper actions are taken.

Furthermore, it must be un-derstood that with the increas-ing additions of fossil-based base load generation in Indonesia, the existing hydro power plants will get a more dynamic role in the system.

Key issues are not only power generation but also the so-called “network ancillary services”, like frequency mode, phase shift-ing or line charging. All of that can be best done with the flexi-bility of hydro power plants but requires a very different operat-ing regime. That means that as a hydro base load plant, you have 2 start/stops a day. But now, with the dynamic requirement, you have maybe 25 start/stops a day, which will cause morewear and tear on the equipment and require more monitoring and

Josef M. Ullmer

As already mentioned before, most countries embark on the full utilization of their technically and commercially feasible hydro resources to become more energy self-sufficient and to make a non-tradable commodity tradable. Therefore,I see many more initiatives to utilize renewable energy use also in Indonesia.

change the world public opin-ion about the large hydro pow-er?

JU: The so-called “protocol on sustainable hydro power plants for operation and development” issued by IHAhas been endorsed by major Development Funding Agencies like the World Bank, the Asian Development Bank (ADB) and the European Bank for Reconstruction and Devel-opment (EBRD). Major devel-opers, including Andritz, and manyutilities companies around the globe are now guided by the protocol in their development and operational activities.The es-tablishment of such a protocol or guidline developed by the hydro industry specialist and involving governments and groups of envi-romentalists, is definitely a step in the right direction to prove to the world that the best available international standard is be-ing used to ensure hydropower plants’ sustainability. Therefore I believe that this will also help recover the public acceptance of hydro power plants as sustain-able and environmentallly sound power solution.

By the way, you know that IHA has discussed this protocol with members in their regional meet-ing in Kuching, Sarawak, Ma-laysia recently (RESPECTS was at that meeting as an observ-er), and this will definitely boost the investments in large hydro power by countries in the region which have large hydro resourc-es like Malaysia, in the northern part of Borneo, and surely Indo-nesia which has even larger po-tential in the eastern provincies like Kalimantan, Sulawesi and Papua.

I look forward to discussing the issues of sustainable hydro-power in the next available fo-rum in Indonesia, and I hope IHA will also be involved in such dis-cussion. Overall, I am confident that larger hydro power will re-turn and this country will reach its envisioned energy mix in the future with reasonable amount of power contributed by renew-ables, including hydro power.

*This article has been published in RESPECTS magazine 3rd edition vol.2

Three Gorges Hydro Power Plant, China. The world's largest hydropower project and most notorious dam

www.chinatraveltips.net

What the Chinese have accomplished with the Three Gorges Hydro Power Plant was of course admirable, but this gargantuan project has raised serious questions among environmentalists about its enormous impacts on the ecology over such a huge area along the Yang Tse River system. This, I believe, has contributed to the growing criticism of large hydro power development seen from environmental point of view.

A7

Internationalwww.thepresidentpost.com October 2012

Indonesia warmly wel-comes the statement by President Benigno Aqui-no III of the Philippines on Sunday (October 7) on the

preliminary agreement reached between the Government of the Philippines and the Moro Islam-ic Liberation Front (MILF).

The agreement reached be-tween the Government of the Philippines and the MILF, as well as the previous peace agreement between the Government of the Philippines and the Moro Na-tional Liberation Front (MNLF) agreed in 1996, reflects the strong commitment of the Gov-ernment of the Philippines to create comprehensive peace in the Southern Philippines. In this regard, Indonesia stands ready to provide support and assis-tance including in exchange of experiences.

Peace that involves both the MNLF and the MILF from the Moro community and the Gov-ernment of the Philippines

would provide a comprehensive solution to the conflict that over the past four decades have taken many lives and material loss.

Indonesia is strongly commit-ted to the establishment of peace, particularly in the Southeast Asia region. As a close neighbor of the Philippines, Indonesia al-ways supports the efforts by the Government of the Philippines to create and to achieve peace with the Moro community in South-ern Philippines.

In this connection, in the past two decades Indonesia has been facilitating the peace process be-tween the Government of the Philippines and the MNLF, and between 1994 and 2002 has sent the Garuda Contingent (Konga XVII) under the frame-work of the Organization of the Islamic Cooperation (OIC) peace process. An Indonesian observer team is also participating in the International Monitoring Team which has been agreed by the Government of the Philippines and the MILF.

RI Welcomes the Agreement between the Government of the Philippines and MILF

The Indonesian Embassy in Madrid (KBRI Madrid) published a of book Indonesian food reci-pe written in Spanish language. The launching of the book enti-tled La Exotica Cocina de Indo-nesia was in conjunction with the 67th Indonesian Indepen-dence Day reception in Madrid, last week. “We believed that the launching of the book will be one approach to familiarize Span-ish taste with Indonesian fla-vor,” said Ambassador Adiyatwi-di Adiwoso Asmady.

“The book contains 40 Indo-nesia culinary recipes, ranging from snacks, main course until dessert,” said Adiyatwidi.

He also added that the reci-pe book made by the Indonesian Embassy in Madrid constitut-ed a series of effort in promoting Indonesian Cuisine in Spanish which has been started in 2010.

“In collaboration with two ho-tel groups, Intercontinental Ho-tel and Melia Hotel Internation-al, since 2010, KBRI Madrid has been organizing 4 gastronomy week in Madrid and Seville. A number of Indonesian chefs were invited to present the culinary of Indonesia in the hotel’s menu for one week,” stated Adiyatwidi.

He noted that in the last few years the relationship between the people of both countries has grown rapidly. This is charac-terized by the increasing level of Spanish investment to Indo-nesia.

“There have been many Span-ish companies opening their of-fices in Indonesia. In addition, there has been growing recog-nition towards Indonesian tour-isms and culture among the Spanish,” conveyed Adiyatwidi.

In 2012, two Indonesia - Spain associations were established, namely “Nusantara”, which fo-cuses on the cultural affairs, and “Spaindo”, which focuses on the economic cooperation be-tween the two countries.

The foundation of the two as-sociations was pioneered by the Spanish people who have deep affection to Indonesia and saw big opportunities for the bilateral cooperation between the coun-tries.

“Of course, the Spanish rec-ognition to Indonesia cannot be separated from the Embassy’s effort in promoting Indonesia in various numbers of occassions,” he said.

In promoting business oppor-tunities in Indonesia, Adiyatwidi explained that the Embassy has conducted investment promotion in several cities in Spain.

The promotion related to In-donesia’s development was con-ducted through Festival Indone-sia held in Madrid and Barcelona this year by presenting dance performances, fashion show, cu-linary, and photography exhibi-tion.

The diplomatic reception or-ganized by the Indonesian Em-bassy in Madrid was also attend-ed by 300 invitees consisting of ambassadors, foreign diplomats, and counterparts within KBRI Madrid.

In the diplomatic reception, in addition to enjoying Indonesian culinary dish and the Gandrung and Srikandi dance, each invitee were also given a set of souvenirs containing one Indonesian reci-pe book, wooden plate with ba-tik pattern, and one pack of nasi goreng ingredient.

Indonesian Embassy in Madrid Publishes Indonesian Food Recipe Book in Spanish

"Geothermal cooperation be-tween Indonesia and New Zea-land has actually been conduct-ed for long. However, considering global development today where there is more demand on alter-native energy, we find it impor-tant to strengthen cooperation

with new Zealand," Indonesian Foreign Affairs Minister Marty Natalegawa said after meeting with visiting new Zealand For-eign Affairs Minister Murray Mc-Cully.

Marty added currently there are two geothermal energy proj-ects in Indonesia that are sup-ported by New Zealand and the World Bank. The New Zealand government provides a $ 6.95 million grant for technical sup-port while the World Bank allo-cates $ 300 million to support 150 Megawatt power plant proj-

RI – New Zealand Committed to Strengthen Geothermal Cooperation

In his speech, Andrew Hsia stated, “Within three years in Indonesia, I was able to wit-ness the remarkable prog-ress of the relations between Taiwan and Indonesia. As the leading nation of ASEAN and a member of G20, Indo-nesia’s economic growth rate is applauded by the world in recent years. Two-way Trade between Taiwan and Indo-nesia reached $ 12.2 billion in 2011. Though listed as the 9th largest investor in In-donesia, Taiwan business-es continuously come to In-donesia, including many IT companies which have lately been all over the news. Tai-wanese investments not only create millions of jobs in In-donesia, but will also redraw the industrial landscape of Indonesia as well.”

According to Andrew, in terms of labor, until July 2012, Indonesian migrant workers in Taiwan reached a number of 186,000 people. Similar to the local Taiwan-ese, they enjoy minimum wages and health insurance as provided by the Taiwan government. Thus, Taiwan became the most favorable country for Indonesian mi-grant workers. In terms of tourism, Indonesia is one of the most favorite destina-

tions for Taiwanese tourists. Garuda Airlines has resumed its route to Taipei since this May, therefore almost 100 di-rect flights between Indone-sia and Taiwan operate per week. As many as 230,000 Taiwanese tourists visited In-donesia each year.

Taiwan allocated its tech-nical missions based in Java and Bali to actively promote joint agricultural programs and received positive feed-backs. In educational terms, there are currently 3,000 In-donesian students in Taiwan. “We hope that more of our In-donesian friends would go to Taiwan for an excellent-qual-ity education at a reasonable tuition rate. On the future outlook, Taiwan seeks to fur-ther expand and deepen its cooperation with Indonesia, and develop a mutually ben-eficial partnership,” Andrew said.

The Taipei Economic and Trade Office (TETO) Jakarta, Indonesia is the representa-tive office of the Government of the Republic of China (Tai-wan) in Indonesia. The mis-sion of TETO is to take care of the interests of Taiwan and to promote bilateral relations between Taiwan and Indone-sia.

Republic of China 101th Anniversary

Indonesia is strongly committed to the establishment of peace, particularly in the Southeast Asia region. As a close neighbor of the Philippines, Indonesia always supports the efforts by the Government of the Philippines to create and to achieve peace with the Moro community in Southern Philippines.

Philippine President Benigno Aquino III, right, receives a gong from Moro Islamic Liberation Front (MILF) Chairman Al Haj Murad, center, and MILF Peace Panel chief Mohagher Iqbal, left, before the historic signing of the framework agreement between the Philippine government and the MILF at the Malacanang Presidential Palace in Manila, Philippines, on Monday Oct. 15, 2012. Muslim rebels and the Philippine government overcame decades of bitter hostilities and took their first tentative step toward ending one of Asia's longest-running insurgencies with the ceremonial signing of a preliminary peace pact Monday that both sides said presented both a hope and a challenge.

www.boston.com/AP Photo/Rouelle Umali, Pool

ect in Sumatra and Sulawesi is-lands.

Meanwhile, Minister McCully stated New Zealand has the ca-pacity to assist Indonesia in de-veloping geothermal energy.

"We have experts in this field and we are willing to cooperate with Indonesia in developing al-ternative energy," McCully said.

Apart from discussing new energy projects, both ministers during the Tuesday meeting also discussed the progress of bilater-al cooperation in such sectors as trade, investment, agriculture, enhancement of people to people

contact, education and regional challenges.

In enhancement of people to people contact, the Tuesday meeting discussed about Air New Zealand which has served direct flights from Auckland to Denpasar (Bali) starting last June 2012 while Garuda Indo-nesia is also planning to open di-rect flight from Jakarta to Auck-land next year.

The opening of direct flight is expected to improve economic and people to people relation be-tween Indonesia and New Zea-land.

In the past two decades Indonesia has been facilitating the

peace process between the Government

of the Philippines and the MNLF, and between 1994 and 2002 has sent the Garuda Contingent (Konga XVII) under the framework of the Organization of the Islamic Cooperation (OIC) peace process.

The President Post/Rians Rivco

Indonesia and New Zealand determine to strengthen geothermal cooperation in order to meet alternative energy demand.

Apart from discussing new energy projects, Indonesian Foreign Affairs Minister Marty Natalegawa (right) and New Zealand Foreign Affairs Minister Murray McCully, during the Tuesday meeting also discussed the progress of bilateral cooperation in such sectors as trade, investment, agriculture, enhancement of people to people contact, education and regional challenges.

The President Post/Reza Ganesha

The celebration of the Republic of China 101th Anniversary was held at Hotel Borobudur Jakarta. The event was attended by prominent figures from Taiwan and Indonesia.

Andrew Hsia

A8

Educationwww.thepresidentpost.comOctober 2012

As the new Rector of President University, Chandra has a vision to improve the quali-ty of education service

in order to make President Uni-versity the best in teaching, re-search and publication and also in community service.

“I will cooperate with the local government, especially in com-munity service. We have more than 4,000 students who can contribute to improving the qual-ity of the environment or accel-erate not only economic growth but also the welfare of the com-munity,” said Chandra.

Chandra further added, "What I'm going to do is to direct the lec-turers of President University to balance teaching with their abil-ity to conduct research. Up to now, this may be still somewhat less because the teaching load is relatively high. "

According to Chandra, Pres-ident University has a clear vi-sion to be a world-class univer-sity: to produce graduates with entrepreneurial, multicultural, and global insight.

Chandra is also concerned with for the development of SMEs. He plans to synergize JIC and ICT training centers for the region since Jababeka has a business incubator that pro-vides opportunities for SMEs’ development. For prospective entrepreneurs who should have basic knowledge of marketing, accounting, inventory, business plan and others, Chandra is will-ing to provide the basic knowl-edge of the topics.

He added, “I am also ready to support the idea of establishing a library in the community. We must stimulate our culture of

reading since currently the read-ing culture of our nation is very low as it has been eroded by tele-vision shows.”

Chandra Setiawan is not new among academics as he previ-ously served as Rector at IBII (In-stitute of Business and Informa-tion Indonesia) for six years from 2000-2006.

In the same period, Chandra served as a commissioner on the National Commission on Hu-man Rights (Komnas HAM) in 2002-2007.

Chandra Setiawan has two doctorate degrees. He got his first doctorate degree in the field of Management Education at Uni-versitas Negeri Jakarta in 2001. He then decided to take his sec-ond doctorate degree in Islamic Finance at the Graduate School of Management, Universitas Pu-tra Malaysia, in 2006.

Chandra is widely known for his social and humanitarian ac-tivities, particularly in promot-ing inter-religious harmony. He has been appointed as Ambas-sador of Peace by the Interreli-gious and International Federa-tion for World Peace in Bangkok, Thailand, in 2001.

Chandra has also served as the representative of Indonesia in various international forums to raise the issue of pluralism and inter-religious dialogue for the world peace. He is also active

President UniversityAppoints New Rector

in the Global Peace Festival In-donesian Foundation.

President University is known as an educational institution ca-pable of providing skilled human resources who are ready to work. Located in the Jababeka indus-trial area, President University is surrounded by more than 1,500 multinational companies such as Unilever, Samsung, Mat-tel, ICI Paints, Kraft, and many more.

This situation allows Pres-ident University graduates to work immediately after gradua-tion. Besides, President Univer-sity has a two-semester program of fieldwork practice (internship) as a graduation requirement for all students.

President University has always been a place of skilled

human resources management, and is adjacent to Jababeka

that provides employment and

direct training places."

Prof. Juwono Sudarsono

The President Post/Heros Barasakti

ADB Supports Vocational Education in Indonesia

The Asian Development Bank (ADB) has been sup-porting vocational educa-tion in Indonesia by provid-ing a soft loan worth $80 million in order to finance Indonesia Vocational Edu-cation Strengthening Proj-ects (INVEST) for the 2008-13 period.

"We finance projects for 90 vocational schools across 33 provinces in Indonesia. So far, the projects have been running efficiently thanks to good cooperation between

project managers at the Min-istry of National Education and the officers from ADB," said Jon D Lindborg, the Country Director for ADB`s Indonesia Resident Mission, here on Friday.

He stated that each school receives between $300,000 and $600,000 to finance projects involving renova-tion of classrooms, labora-tories, libraries and office buildings. A part of the fund is also allocated for training teachers and students.

The Indonesian Computers Olympic Team 2012 that com-peted in the 24th Internation-al Olympiad in Informatics (IOI) in Milan, Italy, 23-30 September 2012, has won one silver medal and three bronze medals.

The silver medal was garnered by Nathan Azaria (SMAN 2 Pur-wokerto) while bronze medals by by Jonathan Irvin Gunawan (SMAK 1 BPK Penabur Band-ung), Chakra Wishnu Wardhana (SMAN 8 Yogyakarta) and Mu-hammad Aji Muharrom (MAN Insan Cendekia Serpong).

Fauzan Joko, the public rela-tions official of the Indonesian team, said the achievement is

significant as it is better than the one that the team recorded in the previous IOI, in Pattaya, Thailand. At that time, the In-donesian team won two bronze medals.

This year the IOI was followed by 317 participants from 81 countries. The highest score in this competition (absolute win-ner) was made won by Johnny Ho from the United States, who accumulated a perfect score of 600 on the two-day match.

The overall winners were the teams from the People's Repub-lic of China and Russia, both of which won four gold medals. However, on the basis of points, China fared better.

Indonesian Team Won Silver and Bronze Medals at IOI

Fauzan added that the Indo-nesian team has participated 17 times in the IOI, from 1995 to 2012, and have won 34 med-als consisting of two golds, 14 sil-vers, and 21 bronzes. In 1996 and 1999, however, Indonesia failed to win a medal. In 2003, Indonesia failed to compete when the IOI was held in Kenosha, the United States, due to visa prob-lems.

"We should be proud and give the highest appreciation for the passion, struggle, and sacrifice showed by the students, coach-es, and the Ministry of Educa-tion and Culture, all of whom worked hard to achieve the best results," says Fauzan.

Prof Juwono Sudarsono, who is one of the founding fathers of President University, said: "Pres-ident University has always been a place of skilled human re-sources management, and is ad-jacent to Jababeka that provides employment and direct training places."

Internship is an opportuni-ty to build connections to facil-itate future career. Internship students can develop profession-al skills, including interperson-al skills, and time management skills that can only be obtained in the real professional world.

President University, which was officially opened in 2001, has the best teachers and edu-cators who are experts in the in-

dustry and were recruited from leading universities to improve the quality of education.

As an international university, President University is equipped with international-standard curriculum which created and developed by world-class aca-demics. All programs, including compulsory subjects as outlined by the government, are taught in English.

President University continues to grow by increasing the num-ber of its faculties; it now offers 12 different majors. Students of President University also can utilize world-class facilities such as the Jababeka Golf & Coun-try Club and the Executive Club President.

President University, a world-class educational institution that has produced the best graduates for the nation, has appointed a new Rector, Chandra Setiawan PhD, to replace Prof Ermaya Suradinata.

BUSINESSwww.thepresidentpost.com

October 2012No. 37

SECTION B

The President Post

Garuda Profits Up by 187%The net profit of the nation`s flag carrier PT Garuda Indonesia Tbk (GIAA), shot up 187% to $30.7 million on-year in the first seven months of the year.

Pertamina Hulu Ener-gi West Madura Offshore (PHE WMO) plans to oper-ate three new oil and gas drilling platforms in the West Madura block.

The operation of the three platforms PHE-38B, PHE-39 and PHE-54 is expect-ed to contribute to increas-ing the oil production of the subsidiary of PT Pertami-na PHE, which is owned by state oil and gas company PT Pertamina.

PHE President Salis April-ian said construction of the three platforms are now in the final phase of comple-tion. Based on construc-tion contract, they are to be ready for operation by Sep-tember this year, Salis said.

“By the end of this year, the oil production target of PHE WMO is set at 21,000 barrels per day,” he said in a

statement issued here on Mon-day.

Currently oil production from the WMO block averages 10,500 barrels per day. Salis said PHE WMO will drill 21 wells this year including 9 explorations wells and 12 development wells and 15 work over wells.

Gde Pradnyana, the depu-ty for the operation control of the Upstream Oil and Gas Ex-ecutive Board (BPMIGAS), said PHE will also put again into op-eration PHE-40 offshore plat-form. The platform has been re-paired and is ready to resume operation after being hit by car-go ship in 2010.

The reactivation ceremony was marked with the launch of the platform in Jakarta s Tan-jung Priok port on Monday. It will be sent to the WMO block 70 miles off shore of the coast of Sampang, Madura. The plat-form produced 1,600 barrels of

Pertamina to OperateThree New Platforms

oil and 15 million cubic feet of gas per day before it was hit and damaged by the cargo ship.

The WMO block began production in 2005 with peak production at 9,500 barrels of oil and 38 million cubic feet of gas per day in 2007.

Senior Executive Vice President & General Man-ager of PHE WMO Imron Asjhari said PHE WMO tar-gets to produce 40,000 bar-rels of oil and 210 million cubic feet of gas per day in 2016 or equivalent to 75,000 barrels of oil per day.

In order to achieve the production targets, PHE WMO will drill more than 25 exploration wells, 75 de-velopment wells and more than 10 work-over wells, and installed more than 10 new platforms until 2016.

Angkasa Pura II Mulls IPOState owned air port operator PT Angkasa Pura (AP) II is considering

to launch initial public offering (IPO) to raise fund to finance the expan-sion of Terminal 3 of Jakarta`s Soekarno Hatta International airport.

Vice President of AP II Rinaldo J. Aziz said funds for the first phase of expansion of the terminal will be in internal cash or by raising bond fund or IPO fund. The first phase of expansion will cost around Rp6.5 trillion and work to be completed in two or three years, Rinadlo said. “We well need both internal and external funds to finance the first phase of ex-pansion,” he said here on Friday.

The fund of around Rp6.5 trillion will include for the expansion of the apron, he said, adding the terminal alone will need only Rp4.5 trillion.

If in three years the project is not yet completed and additional cost would be needed, the company would either issue bond or launch IPO, he said. “In two to three years we could manage the financing with in-ternal cash, but if work will continue we could choose between issuing

bond, share sales or bank loans,” he said.The management is still studying the options, he said, adding if bank

loan or bond fund is the option, the management hopes to have ones with low interest.

Earlier, Chief Economics Minister Hatta Rajasa said the airport has an annual capacity to handle 22 million passengers but capacity utiliza-tion already reached 51.5 million passengers.

After the completion of the expansion plan, Terminal 1 will have a ca-pacity of 18 million, Terminal 2 around 19 million and Terminal 3 around 25 million and Terminal 4 to be built later to have a capacity of around 25 million or a total of 87 million passenger a year after the completion of the expansion plan.

Terminal 3 will be expanded from 333,000 sq. meters to 367,000 sq. meters . The budget for the airport expansion until 2014 is set around Rp4.75 trillion. In 2012 alone the budget is Rp100 billion.

Eximbank’s Financing Grows 42.51%Indonesia Eximbank has recorded growth in its financing by 42.51%

from Rp17.38 trillion in August 2011 to Rp24.77 trillion in August this year.

“Although the country`s export performance in the first semester this

BUSINESS BRIEFSyear was not quite good, export financing however still grew quite well,” the export financing institution`s executive director, I Made Gde Erata, said in a business meeting with customers here on Thursday.

He said Eximbank`s various facilities to increase national export per-formance include working capital financing for domestic corporations and small and medium businesses and investment financing for mod-ernizing machinery and several projects financing.

Financing composition consists of 47% in foreign currencies and 53% in the local rupiah currency spreading in various industrial sec-tors, he said.

With the financing growth Indonesia Eximbank has recorded a total asset of Rp30.99 trillion by August 2012, up by 35.6% from Rp22.85 tril-lion in August last year. “We are optimistic the asset target of Rp31.83 trillion would be met by December 2012,” he said.

The positive financial performance has made the state-owned spe-cial financial institution has won an “AAA” rating with a stable outlook from rating agency PT Pefindo and “BB+” S&P.

The financing target set for Indonesia Eximbank by December this year at Rp24.5 trillion has been achieved. “We are projecting the financ-ing by the end of 2012 to reach around Rp25 trillion, bit higher than the target,” he said.

Garuda President Emirsyah Satar de-scribed the perfor-mance of the publicly trade airline as pos-

itive when many other interna-tional airlines suffered a decline amid the global economic woes.

“We recorded good perfor-mance although the global econ-omy is not conducive,” Emirsyah said here on Tuesday. He attrib-uted the improved performance to growing number of passen-gers that reached 10.01 million in the January-July period or an increase of 16% from the same period last year.

The airline recorded a 13.7% rise in income to $1.7 billion from $1.49 billion in the same period. “The income was contri-butions from Garuda and its air-line subsidiary Citilink, which serves domestic flights, not in-cluding from other subsidiaries,” Emirsyah said.

Its operating profit surged to $408 million from only $1.9 mil-lion.

Garuda also recorded a strong growth of 13.9% in availability seat kilometer (ASK) to 17.78 bil-lion on-year with load factor ris-ing 75.76% from 74.98%.

Garuda Indonesia rated as best international airline: Survey

Garuda Indonesia has been

rated as the Best Internation-al Airline from the period of Au-gust 2011 through July 2012, according to a survey conducted by Australian market research company Roy Morgan.

Garuda Indonesia Vice Presi-dent for Corporate Communica-tions Pujobroto stated on Mon-day that the research involved 4,530 respondents who were asked to give their opinions on the products and services pro-vided by various global airlines.

“In the survey, Garuda Indo-nesia scored the highest, with 90%, along with Singapore Air-lines. Our score was higher than

ident director Arif Wibowo said.The airline company will con-

duct an IPO only if its profit has doubled and its performance has grown, he said on the sidelines of a national meeting of the Indo-nesian Chamber and Commerce and Industry (Kadin) for invest-ment and transportation here on Tuesday.

“If the profit and growth tar-gets have been met we will con-duct an IPO,” he said.

One of the requirements to conduct the IPO is the ade-quate number of pilots. By Oc-tober 2012, Citilink will have 12

Publicly traded coal pro-ducer PT Perusahaan Batu-bara Bukit Asam Tbk (PTBA) said it plans to export more coal to India on growing de-mand from the Hindustani state of that country.

Milawarman, the pres-ident director of the state company, said here on Mon-day that demand for coal grew from India offsetting the declining demand from China. Milawarman said the company will produce coal just to meet the market de-mand. “Currently most or 65% of the company s coal production is disposed of on the domestic market with 35% for exports,” he said.

The company s largest buyer in the country is the state electricity company PT Perusahaan Listrik Nega-ra (PLN) that uses the coal to feed its coal fired pow-er plants. Around 80% of the sales are on contract in-cluding 60% in contract with PLN, Milawarman said.

He said the sales tar-get of 16 million tons this year could be reached but it would depend much on the readiness of the railway as the main transport means from its largest coal mine in Tanjung Enim in South Su-matra.

The company has said it could not boost production because of transport prob-lem from the mine to the market especially between the mine and the seaports .

The company, there, has two railway projects in south-ern Sumatra. It has a proj-ect to build a 270-kilometer rail tract for coal transport between Tanjung Enim and

Tanjung Siapi Api port town in South Sumatra. The railway project will be built jointly with Adani Global from India.

Bukit Asam will also build a coal terminal in Tanjung Siapi Api to facilitate shipment of coal to other area or for exports.

Last year, the company pro-duced only 12.5 million tons from Tanjung Enim and this year it hopes to raise the produc-tion to 16.3 million tons. The op-eration of the railway would al-low it to boost production up to 35 million tons a year.

Bukit Asam also takes part in the project to build a 307-kilo-meter double tract linking Tan-jung Enim and the Srengsem port in Lampung.

Bukit Asam holds a 10% stake in the 307-kilometers rail-way project, which is 80 percent owned by the Rajawali Group and 10% by China Railway Group Ltd.

In the first half of the year, the company reported Rp1.56 tril-lion in net profit, down 3% from Rp1.61 trillion in the same peri-od last year. Sales rose 14% to 7.08 million tons from 6.19 mil-lion tons with prices rising 0.5% to Rp785,040 per ton on-year.

PT BA Redirects Coal Exports to India

those of other airline companies such as Air New Zealand, Emir-ates and Thai Airways,” he said.

Earlier in July, Garuda Indo-nesia was named “The World`s Best Airline” and “The Best Re-gional Airline in Asia” by Lon-don-based airline rating agency Skytrax.

Citilink Set to Conduct IPO in 2015

Low-cost airline Citilink, a subsidiary of national flag car-rier Garuda Indonesia, intends to conduct an initial public offer-ing of its shares in 2015, its pres-

planes, he said. He said the com-pany had no plan to issue bonds because the financing of its ac-tivities is borne by Garuda. “We will not issue bonds. We still rely on Garuda,” he said.

Citilink carried 1.84 million passengers in the first semester of this year, a 62% increase com-pared to 1.14 million in the same period last year. The airline post-ed an income of almost Rp1 tril-lion in the first half of 2012. The income is projected to reach Rp2 trillion throughout this year. The budget carrier expects to carry 4 million passengers this year.

www.viva.co.id

Garuda Indonesia President Emirsyah Satar. The airline recorded a 13.7% rise in income to $1.7 billion from $1.49 billion in the same period.

PTBA President Director Milawarman

The Ministry of Transportation has approved the principle stock purchase plan proposed by Bat-avia Air owner PT Metro Batavia, which will be conducted by AirA-sia Berhad and PT Fersindo Nu-saperkasa, a statement from the ministry said on Thursday.

The statement pointed out that the Minister of Transpor-tation has approved in principle a planned expenditure on the buying and selling of shares be-longing to PT Metro Batavia, to the relevant local or foreign cor-porate client.

The statement further elab-orated that the composition of share ownership between na-

tional and foreign capital should refer to the Regulation of the President of the Republic of Indo-nesia Number 39 of 2010, which requires the owner of national or domestic capital to maintain a greater share in the overall ownership of capital amount-ing to 51%, and allow a maxi-

mum ownership of 49% for for-eign capital owners.

Earlier, the AirAsia Berhad and AirAsia airlines had an-nounced that they have decided to acquire through PT Fersindo Nusaperkasa, which is the ma-jority shareholder of PT Indone-

sia AirAsia, Batavia Air for $80 million.

“After months of negotia-tions, we have finally reached an agreement to establish a re-lationship between AirAsia and Batavia Air,” AirAsia Berhad CEO Tony Fernandes said in Ja-karta on July 26.

Meanwhile, President Di-rector Fersindo Dharmadi ex-plained that AirAsia Berhad will hold a 49% stake in Batavia and Dharmadi will be the majority shareholder with a 51% stake. Dharmadi, who also serves as Indonesia AirAsia’s president di-rector said that Batavia Air’s ac-quisition will be conducted in two stages, with the first stage involving the takeover of 76.95% of the company’s stake.

The second stage will revolve around the acquisition of 23.05% of the airline’s shares and is ex-pected to be completed in the second quarter of 2013, based on regulatory approvals granted by the government of Indonesia.

Batavia Air Stock Purchase Plan Gets Government Approval

Batavia Air’s acquisition will be conducted in two stages and is expected to be completed in the second quarter of 2013

AirAsia Chief Executive Officer Tony Fernandez (left) and Batavia Air President Director Yudiawan Tansari during a joint press conference in Jakarta, Indonesia, July, 2012. AirAsia Berhad and AirAsia airlines had announced that they have decided to acquire through PT Fersindo Nusaperkasa, Batavia Air for $80 million.

www.washingtonexaminer.com

B2

Businesswww.thepresidentpost.comOctober 2012

PT DI Gets Rp7t ProjectsThe projects include making 65 CN-212 helicopters and aircraft components for Airbus A320, A330, A340, A380 and A350.

State toll road operator PT Jasa Marga Tbk (JSMR) plans to issue bonds worth Rp1 trillion next year to fi-nance its maturing bonds.

The old bonds will become due in the first semester of 2013, Jasa Marga President Director Adityawarman said on Friday. “Proceeds from the issuance of bonds will be used to settle maturing bonds,” he said.

He said the company also has set aside Rp7.9 trillion in funds to develop toll roads.

In 2014, Jasa Marga will focus on building a 50-km turnpike, he said. Current-ly Jasa Marga operates 545 km of toll roads. The length of toll roads is expected to in-crease to 738 km in 2014, a 39.1% increase compared to 2012.

Commenting on the con-struction of trans Sumatra

highway, he said the government is in the processing of calling a tender for the construction of 60-km Medan-Kualanamu-Tebing Tinggi and 126-km Pekanbaru-Kandis-Dumai turnpikes.

“Although traffic on the two turnpikes still falls short of Jasa Marga s traffic standard we will continue to build them,” he said.

The tender process which will start in October this year will last for 6-8 months and a ten-der winner will be made known probably in October 2013, he said. “Then, we will clear land for the construction of the proj-ect which is expected to start early in 2014,” he said.

He said Jasa Marga will co-operate with local govern-ments in constructing 29-km Padang-Sicincin, 37-km Kayu Agung-Palembang and 70-km Palembang-Tanjung Api-Api turnpikes.

Jasa Marga to IssueRp1t Bonds

Wika Jabar to Build Geothermal Power Plant

Aircraft manufacturer PT Dirgantara Indone-sia (DI) has won proj-ects worth up to Rp7 trillion that should be

finished in three years, state en-terprises minister Dahlan Iskan said here on Friday.

The projects include mak-ing 65 CN-212 helicopters and aircraft components for Airbus A320, A330, A340, A380 and A350.

He said PT DI admitted that it had never received orders so many in its history so far, add-ing orders came from abroad. “So if we see an A380, parts of its wings are made in Bandung based on a lifetime contract,” he said at his office.

So long as Airbus is still ac-tive it will continue to order air-craft components or planes from PT DI while the value of contracts for making com-ponents have now already reached 25% of PT DI`s turn-over, he said.

Besides serving Airbus PT DI also acts as a sub-contractor for Boeing. Boeing has ordered components from South Ko-rea and South Korean suppli-ers demand components made by PT DI. Right now there are thousands of smaller aircraft components, he said.

Dahlan said PT DI would re-ceive an order to make aircraft from Spain, which will send

several of its aircraft compo-nents to PT DI. Right now 25 to 50 engineers from PT DI are in Spain to study the technology of CN-295 manufacturing.

Regarding additional capi-tal from the government for the company the minister said the government had injected around Rp1 trillion last year. Right now the company s finance is good and credit worthy.

PT DI has also received or-ders from the country s defense ministry but the ministry still has yet to wait for the disbur-seemnt of the budget for it. For the project PT DI has been ap-proved to seek loans up to Rp1 trillion.

PT Wika Jabar Power, a sub-sidiary of state construction company Wijaya Karya, will build a 40-megawatt geother-mal power plant, (PLTP) Gunung Tampomas, in Sumedang, West Java.

Wijaya Karya corporate sec-retary Natal Argawan Pardede said Wika Jabar is looking for a partner to build the power plant as the company has no expe-rience in building geothermal power plant.

PT Jasa Sarana, which is owned by the West Java regional administration, having a stake

The ferro-nickel project be-ing built by PT Aneka Tam-bang (Antam) in East Hal-mahera, North Maluku, will help boost development of re-gional economy.

The project will provide many jobs and will indirect-ly draw other investors to the region, the head of the re-gional manpower and trans-migration office, Abuhari Hamzah, said here on Sat-urday.

The $1.6 billion project

At least $100 million is need-ed to build a geothermal power plant with a capacity of 50MW or about three times more expen-sive than a coal or oil-fired pow-er plant with the same capacity, he said. “We hope to have a part-ner among oil and gas compa-nies having good reputation like Pertamina or Chevron,” he said.

Antam Project BoostsMaluku’s Economy

has been in the process of con-struction since last year to be completed in 2014. The project will process all nickel ores into ferro-nickel, produced in this re-gion, Abuhari said.

New jobs will be created not only in the factory but also in other related business and in-dustrial units expected to grow in the region, he said. He said trade will expand, new restau-rants will be opened and trans-port business will be brisker all needing new workers. The proj-ect will also contribute to in-

creasing the regional income in tax , he added.

He said in recruiting work-ers the state mining compa-ny has pledged to give prior-ity to local people although skilled workers may have to bring in from other regions. A number of high education institutes in North Malu-ku such as Muhammadi-yah University have from the beginning prepared skilled workers to work in mining sector, he said.

Regarding additional capital from the government for the company, state enterprises minister Dahlan Iskan said the government had injected around Rp1 trillion last year. Right now the company`s finance is good and credit worthy.

in Wika Jabar Power, also has never built a geothermal power plant,” Natal said.

“We need a partner not only having the technology but also fund to carry out the project,” he said here on Thursday, add-ing geothermal power project is more expensive than coal fired power project.

Earlier, Wika Jabar Power planned to drill two explorations wells in Gunung Tampomas to cost $10 million.

Natal said the selling price of the company`s geothermal pow-er is yet to be negotiated with the buyer state electric compa-ny PT Perusahaan Listrik Nega-ra (PLN). The government has set the selling price range for geo-thermal power at 9-16 US cents per kilowatt hour.

PLN is required to buy all power generated by independent power producers (IPP) at a pre-set price.

At least $100 million is needed to build a geothermal power plant with a capacity of 50MW or about three times more expensive than a coal or oil-fired power plant with the same capacity

B3

Investmentwww.thepresidentpost.com October 2012

PT Indonusa Dwitama and Chalco Hong-kong Limited signed the memorandum of understanding on the

cooperation in the presence of the ambassador here on Thurs-day night. With the agreement, the Aluminum Corp of China Ltd (Chalco) Hongkong will in-vest $1.1 billion to build a met-al processing and purification smelter, alumina grade, in West Kalimantan.

The ambassador who wit-nessed the signing of the MoU said that the deal was a concrete form of the increasingly good co-operation between the two coun-tries in the field of investment.

“Indonesia with its stable gov-ernment and an average eco-nomic growth of six to seven percent is a conducive place for would-be investors, including in-

vestors from China,” Imron said.

He said the cooperation is part of the realization of the strategic partnership cooperation of the two countries signed in 2005. “We hope the signing of the MoU would further strengthen and expand the good relations of both nations.”

Chinese Ambassador to Indo-nesia Liu Jianchao who also wit-nessed the signing of the MoU said Indonesia was one of the biggest destinations of the Chi-nese investors, after the United States and Europe experienced economic crisis.

“If Indonesia happens to be the fourth largest destination for Chinese investment, its positive development in the past several years could make it the second biggest destination for Chinese investment ahead,” the Chinese ambassador said.

President of Chalco Hongkong Limited Luo Jianchuan said his firm was committed to support-ing the strategic partnership of the two governments, particu-larly in the investment sector.

“With this cooperation, we hope we can help boost Indonesia s economic growth. We have no doubts to invest our capital in Indonesia,” he said.

Chalco Hongkong Limited is one of the biggest aluminum producer in China. So far Chi-na is the biggest aluminum pro-ducer and at the same time the biggest consumer in the world, namely about 40% of the world market.

Up to the end of 2011, China is the biggest aluminum importer. The ministry of industry record-ed that Indonesia has supplied 25.42 million tons of bauxite to China.

Indonesian Trade Attache in Washington DC Ni Made Ayu Marthini said Indonesia has be-come a potential investment des-tination for investors in the tex-tile and apparel sector.

Ni Made said Indonesia has been named a leading country in “Sourcing at Magic 2012” ex-hibition, the largest ever textile exhibition in the United States held in Las Vegas, Nevada, this month.

“Perry Ellis, a popular brand in the United States, plans to open a branch office in Indone-sia to support their sourcing ac-tivities,” she said.

She said Indonesia gained from being named a “leading country” representing ASEAN , which is the main focus at the Sourcing at Magic 2012 exhibi-tion.

The Sourcing at Magic 2012 exhibition ending on Thursday was participated in by 43 coun-tries with 8,000 buyers repre-senting popular brands in the United States.

Indonesian participants with pavilion, “Trade with Remark-able Indonesia”, included yarn, garment, fabric, textile, sweater/knitted fabric , apparel, leather goods, batik, bag, and ornament producers.

In this year Sourcing at Magic 2012 exhibition, Indonesia was represented by 20 companies or larger than in previous years.

In 2011, US import of tex-tiles and apparel from all over the world were worth $100 bil-lion and Indonesia is the fourth largest supplier of textile to that country after China, Vietnam and India. Indonesia s exports of textiles and garments to the United States were valued at $5.2 billion in 2011.

In the first five months of the year the Indonesian textile ex-ports to the United States al-ready reached $2.16 billion.

RI, China to Jointly Produce Alumina

Official: Foreign CompaniesInvest $11.8m in Batam

A number of foreign companies invested $11.8 million in the free trade zone of Batam last month, the Management Agency of Batam (BP Batam) said.

BP Batam`s chief spokesman Ilham Eka Hartawan said the projects, owned by 12 investors, will provide 1,119 jobs for Indonesians. “The largest investment is in the shipbuilding and repair industry which will need many workers,” Ilham said here on Wednesday.

Most of investors come from Singapore and Malaysia and some of them established joint venture companies with Indonesian investors, he said.

There are also joint venture companies between Indonesian, Indian and Australian investors, he added. Many investors still are interested in doing business in Batam, which is a few miles south of Singapore.

According to BP Batam, in the first half of 2012, new foreign invest-

ment projects implemented in Batam were worth $112 million or an in-crease of 61% from the same period last year. Most of the investment project are located in the port and trading areas, Dwi Djoko Wiwoho, a director of BP Batam said.

Expansion projects are recorded only in April and June all worth $182.6 million. “Trade, electronic manufacturing industry, shipyard are the most attractive for foreign investors in Batam,” he said.

BKPM: RI Upbeat Over 2013 Investment TargetCapital Investment Coordinating Board (BKPM) Head Chatib Basri

said Indonesia would benefit from the push and pull factors in its efforts to achieve its investment target of Rp390 trillion in 2013.

“Even though the world economy, in Europe in particular, is still un-stable, we can benefit from a number of factors that will enable us to achieve the investment target in 2013,” the BKPM chief said here on Tuesday.

The first factor is the push factor. Now the biggest investor country in Indonesia is Japan. In the latest condition in Japan, the yen currency is appreciating so that the production cost in Japan is very high.

Chatib said such a condition pushed Japan to seek other countries for ts investment and to cooperate in the production of goods. One of

INVESTMENT BRIEFSits target is Indonesia.

“Indonesia is the fifth destination country for Japan so that many Jap-anese companies considered Indonesia as a potential market and a po-tential country for investment. If the appreciation of yen continued to take place it will cause high production costs and many Japanese com-panies will make investment in Indonesia next year,” he said.

The second factor is the pull factor where the number of middle-class people in Indonesia continues to increase. This condition is promising for companies to market their products because the people`s purchas-ing power is high.

“A family who in the past could only buy one television set is now able to purchase two or three TV sets. This does not only happen with only one family but also with the average families across the country. This will be promising for companies to produce goods so that many Japa-nese firms will make investment in Indonesia,” he said.

Regarding the realization of the investment target in 2012, Chatib ex-press optimism that at the end of the year the domestic and foreign in-vestment realization would reach Rp300 trillion.

“We are upbeat that the realization of the investment at the end of the year would be over Rp300 trillion, because we are convinced after see-ing the realization of investment in the first half of the year which has reached Rp76.9 trillion. This is the highest ever,” Chotib said.

RI Attractive to Foreign Textile Investors

Indonesia and China have agreed to jointly produce alumina, a raw material in the form of aluminum ingot for upstream aluminum industry, Indonesian Ambassador to China Imron Cotan said.

A Chalco employee places certification stickers on aluminum ingots. Chalco Hongkong Limited is one of the biggest aluminum producer in China. So far China is the biggest aluminum producer and at the same time the biggest consumer in the world, namely about 40% of the world market.

www.wantchinatimes.com/Xinhua

South Korea s investment in Indonesia this year is expected to reach $12 billion, according to Industry Minister MS Hidayat.

“If Honam Petrochemical Cor-poration realizes its investment target of around $6 billion in petrochemicals, total investment from South Korea in Indonesia is expected to reach $12 billion this year,” said the minister here on Friday.

Giving an update on the prog-ress of Indonesia and South Korea s Comprehensive Eco-nomic Partnership Agreement (CEPA), for which negotiations started in July 2012, Hidayat added that Indonesian govern-ment officials will meet South Korean entrepreneurs next month to discuss investment po-tential in Indonesia after CEPA s implementation.

The minister informed that negotiations over CEPA will take about two years to complete. In-donesia and South Korea have

agreed to increase trade between the two countries to $50 billion by 2015. The agreement was an-nounced by President Susilo Bambang Yudhoyono on the fi-nal day of his state visit to South Korea in March 2012.

“Indonesia has huge potential,

but not all of it has been exploit-ed. Indonesia certainly needs re-sources and partnerships to de-velop its economy,” he noted.

President Yudhoyono said that this potential had been used as the foundation for the strategic partnership between Indone-sia and South Korea, making it possible to target the $50 billion trade target by 2015. “The stra-tegic partnership has developed well so far. For example, trade in 2009 was around $10 billion and the figure rose to $30 billion in 2011,” he added.

President Yudhoyono added that Indonesia had specifically invited South Korea to invest in the steel and infrastructure sec-tors. Apart from discussing co-operation opportunities in trade and investment, President Yud-hoyono and South Korean Pres-ident Lee Myung-bak also re-viewed possible cooperation in the fields of defense, energy and manpower.

S. Korea Investment Set to Reach $12b in 2012

If Honam Petrochemical Corporation realizes its investment target of around $6 billion in petrochemicals, total investment from South Korea in Indonesia is expected to reach $12 billion this year.”Industry Minister MS Hidayat

B4

Profilewww.thepresidentpost.comOctober 2012

Honda Motor Com-pany, Ltd. is a Japanese pub-lic multination-al corporation pri-marily known as

a manufacturer of automobiles and motorcycles. The Company has grown to become the world’s largest motorcycle manufactur-er and one of the leading auto-makers. With a global network of 466 subsidiaries and affili-ates accounted for under the eq-uity method, Honda develops, manufactures and markets a wide variety of products, rang-ing from small general-purpose engines and scooters to special-ty sports cars, to earn the Com-pany an outstanding reputation from customers worldwide.

Honda is headquartered in Mi-nato, Tokyo, Japan. Their shares trade on the Tokyo Stock Ex-change and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo, Kyo-to, Fukuoka, London, Paris and Switzerland.

The company has assembly plants around the globe. These plants are located in China, the United States, Pakistan, Cana-da, England, Japan, Belgium, Brazil, México, New Zealand, Malaysia, Indonesia, India, Thai-land, Turkey, Taiwan and Perú.

Honda Motor Co., Ltd. oper-ates under the basic principles of “Respect for the Individual” and “The Three Joys” - common-ly expressed as The Joy of Buy-ing, The Joy of Selling and The Joy of Creating. “Respect for the Individual” reflects the desire to respect the unique charac-ter and ability of each individu-al person, trusting each other as equal partners in order to do the best in every situation.

Based on this, “The Three Joys” expresses their belief and desire that each person working in, or coming into contact with the company, directly or through or products, should share a sense of joy through that experience. In line with these basic princi-ples, since its establishment in

1948, Honda has remained on the leading edge by creating new value and providing products of the highest quality at a reason-able price, for worldwide cus-tomer satisfaction. In addition, the Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile so-ciety.

AutomobilesIn 1963, Honda, the last ma-

jor domestic automaker entered the Japanese automotive mar-ket, chose to make its debut in the passenger car market with the S500 sports car. It was the essence of technical prowess The following year Honda took up the Formula One challenge with the intent of honing Honda’s leading edge in technology at the pinna-cle of racing. Since then, Hon-da has consistently pushed the state of the art in the automobile business, in technology and in production, with the challenging spirit for creating new value.

Honda’s global lineup con-sists of the Fit, Civic, Accord, In-sight, CR-V, CR-Z, Legend and two versions of the Odyssey, one for North America, and a smaller vehicle sold internationally. An early proponent of developing ve-hicles to cater to different needs and markets worldwide, Honda’s lineup varies by country and may feature vehicles exclusive to that region. A few examples are the latest Honda Odyssey mini-van and the Ridgeline, Honda’s first light-duty uni-body pickup truck. Both were designed and engineered primarily in North America and are produced there. Other example of exclusive mod-els includes the Honda Civic five-door hatchback sold in Europe.

Honda produces Civic hybrid, a hybrid electric vehicle that competes with the Toyota Prius, and also produces the Insight and CR-Z.

In 2008, Honda increased global production to meet de-mand for small cars and hy-brids in the U.S. and emerging markets. The company shuffled U.S. production to keep facto-ries busy and boost car output, while building fewer minivans and sport utility vehicles as light truck sales fell.

As of April 2012, Honda had a total of 27 production opera-tions in 17 countries and regions across the globe.

Motorcycles1949, Honda began produc-

tion and sales of its first mass-production motorcycle model, the Dream D-Type. Ever since, Honda has consistently of-fered motorcycles with new val-ues ahead of the times, launch-ing products that have gone on to set new standards. In 1958, the company launched the Su-per Cub, giving life to the con-cept of “enabling anyone to ride

a motorcycle as a more casual daily tool.” Now sold in countries around the world and reaching 73 million units in cumulative sales, the Super Cub went on to become the standard in com-muter models.

Honda continues to create models that exemplify every mo-torcycle category, running the gamut from scooters to large touring bikes to off-road vehi-cles. Honda envision motorcy-cles to meet a diversity of cus-tomer needs that extend from a convenient means of transporta-tion used in people’s daily lives to recreational products for enjoy-ing an exhilarating ride. To help every single customer live a more fulfilling lifestyle, Honda contin-ues to offer the “joy of riding” in a multitude of ways.

Honda’s annual motorcycle production capacity in the entire Asia & Oceania region has now reached approximately 12.7 mil-lion units. Against a backdrop of rapid economic growth, vigorous motorcycle demand in the region has been a driving force for glob-al markets, and Honda plants in the region also fulfill a signif-icant role as export bases for ad-vanced countries. In Thailand, in addition to production of motor-cycles for the domestic market, Honda has established a cross-border supply system to provide motorcycles and parts to neigh-boring countries and other re-gions such as Europe and North America. In India, construc-tion of a new plant is under way along with expansion of produc-tion capacity at existing plants, as we put in place a production system that will more efficiently cover this vast country. In Indo-nesia, a new plant dedicated to the production of scooter mod-els will bring total annual ca-pacity including existing plants to about 5.3 million units, and in Vietnam, construction of a new plant is also planned. In the growing African market, Hon-da has launched the Ace CB125 and Ace CB125-D—two afford-able, strategic small motorcy-cles—in 2011 in Nigeria. Hon-da will also launch these models in other African countries where growth in demand is expected and will work toward increasing their sales.

Power ProductsBesides producing automo-

biles and motorcycles, Honda also desire to create “things use-ful for people’s lives” underlies all of Honda’s work and serves as a pillar of support for the compa-ny’s business operations. Honda power products business grew out of the vision to “help people enjoy happier lives through tech-nology” in light of the hard work endured by people in farming, fishing and other areas. The pro-duction started in 1953 with H-type engine (prior to motorcycle).

Honda power equipment

reached record sales in 2007 with 6,4 million units. By 2010 (Fiscal year ended 31 March) this figure had decreased to 4,7 mil-lion units. As of April 2012, Hon-da has 11 production bases for power products in 9 countries.

Honda power equipment in-cludes: Engine, Tiller, Lawn mower, Riding mower, Trim-mer, Mower, Blower, Sprayer, Hedge trimmer, Snowthrower, Generator, welding power sup-ply, Pumps, Outboard engine, Inflatable boat, Electric 4-wheel Scooter, Compact Household Co-generation Unit.

RobotsASIMO is the part of Honda’s

Research & Development robot-ics program. It is the eleventh in a line of successive builds start-ing in 1986 with Honda E0 mov-ing through the ensuing Honda E series and the Honda P se-ries. Weighing 54 kilograms and standing 130 centimeters tall, ASIMO resembles a small astro-naut wearing a backpack, and can walk on two feet in a man-ner resembling human locomo-tion, at up to 6 km/h (3.7 mph). ASIMO is the world’s only hu-manoid robot able to ascend and descend stairs indepen-dently. However, human motions such as climbing stairs are dif-ficult to mimic with a machine, which ASIMO has demonstrated by taking two plunges off a stair-case.

Honda’s robot ASIMO as an R&D project brings together ex-pertise to create a robot that walks, dances and navigates steps. 2010 marks the year Hon-da has developed a machine ca-pable of reading a user’s brain-waves to move ASIMO. The system uses a helmet covered with electroencephalography and near-infrared spectroscopy sensors that monitor electrical brainwaves and cerebral blood flow—signal that alter slightly during the human thought pro-cess. The user thinks of one of a limited number of gestures it wants from the robot, which has been fitted with a Brain Machine Interface.

AircraftThe company began its re-

search on a light jet as early as 1986 and has been engaged since then in the research and development of a turbofan en-gine and fuselage as well. These efforts have led to the develop-ment of the HondaJet, a propri-etary light business jet boasting high performance, high fuel ef-ficiency, and comfort. The 2010 maiden flight of the U.S.-based HondaJet, the first production-conforming model, proved suc-cessful. Now, a series of test flights and ground tests for ob-taining certification from the U.S. Federal Aviation Adminis-tration (FAA) are underway and, in 2012, HondaJet plans to start deliveries to customers.

Honda Motor Company:To Share Joys with People

Around The World Honda Motor Co., Ltd. operates under the basic principles of “Respect for the

Individual” and “The Three Joys” - commonly expressed as The Joy of Buying, The Joy of Selling and The Joy of Creating. “Respect for the Individual” reflects the desire

to respect the unique character and ability of each individual person, trusting each other as equal partners in order to do the best in every situation.

ASIMO. The world’s only humanoid robot able to ascend and descend stairs independently. ASIMO is the part of Honda’s Research & Development robotics program. It is the eleventh in a line of successive builds starting in 1986 with Honda E0 moving through the ensuing Honda E series and the Honda P series.

www,barrettsk

ent.co.uk

Civic Hybrid 2012. Honda produces Civic hybrid, a hybrid electric vehicle that competes with the Toyota Prius, and also produces the Insight and CR-Z.

www.intellichoice.com

Dream D-Type. Honda began production and sales of its first mass-

production motorcycle model. Ever since, Honda has consistently offered motorcycles with new values ahead of

the times, launching products that have gone on to set new standards.

Honda envision motorcycles to meet a diversity of customer needs that extend from a convenient means of transportation used in people’s daily lives to recreational products for enjoying an exhilarating ride. To help every single customer live a more fulfilling lifestyle, Honda continues to offer the “joy of riding” in a multitude of ways.

www.ovelhanegra.com.br

B5

Pictorial Eventwww.thepresidentpost.com October 2012

The 20th Indonesia International Motor

Show (IIMS) 2012 is the largest automotive

exhibition in Indonesia. IIMS 2012, which themed “Eco-Mobility”, promotes environmentally-friendly

activities along with energy conservation.

PT Astra Daihatsu Motor booked record sales of

478 units, PT Suzuki Indomobil Sales scored

476 units while Indonesia BMW Group 260 units.

The 20th Indonesia International Motor Show 2012 The President Post/Rians Rivco & Heros Barasakti

The cooperation between Tai-wan and Indonesia to develop Morotai island has resulted new advances. The government rep-resentatives of both parties on September 13 signed a Letter of Intent (LOI), which plans to build special economic zones, ports and international airports in or-der to make Morotai as regional transportation hub.

Taiwan’s experiences and technological capabilities in the field of fisheries, especially aqua-culture, coupled with the stra-tegic location of Morotai and its natural wealth will become the new land for Taiwan fisheries.

On the other side, investment and technology from Taiwan will help to promote the agriculture and fisheries of Morotai and the surrounding areas, with the ex-pectation that employment op-portunity for the residents of Mo-rotai will increase and the local economy will moving forward.

Indonesia-Taiwan Signed LOI to Build Morotai The President Post/Heros Barasakti

The soft launching of Senior Living at D’Kahyangan was held in Jakarta on October 3. The event was attended by Japan ambassador HE Yoshinori Katori. He said, “the presence of Senior Living at D’Kahyangan is able to bring a new atmosphere and needs fulfillment through world-class facilities and services for the elders to enjoy their old age.”

The development of D’Kahyangan has begun in mid 2012 and will be operational in 2014. The first phase with an area of 8 acres with possible expansion to 24 acres in the next phase, Senior Living at D’Kahyangan will be built as much as 210 units of Senior Care, 102 units of Senior Village and 4 oth-er facilities such as Function Building.

Soft launching Senior Livingat D’Kahyangan

The President Post/Heros Barasakti

B6

Pictorial Eventwww.thepresidentpost.comOctober 2012

The President Post/Rians Rivco

The celebration of Malaysia’s National Day was held at Shangri-la Hotel. The event was attended by senior government officials and prominent members of society, including MPR Chairman MPR Taufiq Kiemas and foreign ambassadors.

Malaysia’s National Day

The Ukrainian Embassy in Indonesia held a cocktail party to commemorate the independence of the country on August 24 at the Grand Hyatt Hotel. Present at the celebration were ambassadors from various countries as well as community leaders in Indonesia.

Ukraine’s National Day Celebration in Indonesia

The President Post/Rians Rivco

Minister of Tourism and CreativeIndustry Visits JapanIn an effort to accelerate the development of the Creative Economy in Indonesia, Minister of Tourism and Creative Economy Mari Pangestu recently visited Japan and conducted bilateral meetings with Yukio Edano, Minister of Economy, Trade and Industry (Ministry of Economy, Trade and Industry - METI) of Japan to explore cooperation in the field of the creative economy.

PT Banten West Java, as developer of Tanjung Lesung, also took part in the visit to promote Tanjung Lesung tourism’s potentials.

The President Post/Reza Ganesha

B7

Pictorial Eventwww.thepresidentpost.com October 2012

The Indonesia Australia Business Council (IABC) held a regular meeting for its members at the official residence of the Australian Ambassador to Indonesia, Greg Moriarty. The gathering was attended by about 30 members from several countries. Present at the event was IABC’s President, S.D. Darmono.

IABC Gathering at the Australian Ambassador Residence

The President Post/Rians Rivco

Mercantile Athletic Club 20th Anniversary

The prestigious busi-ness and social club Mercantile Athlet-ic Club (MAC) Jakar-ta celebrated its 20th

Anniversary on September 12, 2012. The event was a joyful oc-casion as its members, who are Indonesians and expatriates holding prominent positions in major companies, attended it. Members Gathering and Golf Gathering were also held as part of the 20th Anniversary celebra-tion.

Since its establishment in 1992, Mercantile Athletic Club has positioned itself as a high quality business and social club of choice for senior Indonesian and foreign members of the busi-ness community. It puts a premi-um on personalized service and first class amenities to improve the health, recreation and enter-tainment lifestyle pursuits of its members.

Mercantile Athletic Club offers the “City Athletic Club” concept, which is the first of its kind in Ja-karta. It combines business, so-cial and athletic opportunities in one single convenient location. It is located in the heart of Jakar-ta’s central business district at the World Trade Center on Jalan Jenderal Sudirman to provide easy access for its members.

The club activities are focused on valuable business forums and interesting speakers, creat-ing natural networking opportu-nities which enrich the members business and personal life. Mer-cantile Athletic Club promotes a “Home Away From Home” feel-ing, as each member is personal-ly taken care of by one of its ded-icated Member Relations team – the Club knows each Member’s needs and interests and can serve them personally to meet their expectations.

Mercantile Athletic Club has a variety of international cuisines offered by the Club’s dining ar-eas: the Wimbledon Grill, the Miyabi Japanese Dining Room and the Shutters Bar. The Ban-dahara Ballroom, plus 14 pri-vate meeting rooms to provide its members with the opportunity to entertain their business and so-cial guests in style. The Shutters Bar is a favorite among local and foreign business people for infor-mal lunches, networking and a relaxing drink with friends.

FOTO: Mercantile Athletic Club

As a City Athletic Club, it has two rooftop tennis courts, two air-conditioned squash courts, a 20-meter lap pool with adjoining whirlpool and a fully equipped modern gymnasium accessi-ble to members only. Profession-al fitness trainers and massage services are also provided for Club Members, including body treatments and aromatherapy.

Being a member of the MAC means enjoying several exclu-sive benefits as they have access to 65 reciprocal club globally. These clubs vary from fitness, country clubs to fine business clubs. Members also have spe-cial opportunities to build busi-ness & social networking with other members from every ma-jor industry in Indonesia. More-over, organizations such as Britcham, Amcham, IABC, Ro-tary and others often hold their events in the club. The member-ship experience is enriched as one takes part in special inter-est clubs-within-a-club to cre-ate networking with other mem-bers.

Members are also able to ar-range receptions, dinners or luncheons in private rooms up to 800 guests. A personal event manager is available to help members’ plan special occasion gatherings like weddings, family celebrations and business meet-ings.

Mercantile Athletic Club offers the “City Athletic Club” concept, which is the first of its kind in Jakarta. It combines business, social and athletic opportunities in one single convenient location.

The club activities are focused on valuable business forums and interesting speakers, creating natural networking opportunities which enrich the members business and personal life.

B8

Pictorial Eventwww.thepresidentpost.comOctober 2012

Deputy Trade Minister Bayu Krisnamurthi recently visited Cikarang Dry Port (CDP) in Jababeka Industrial Estate and was greeted by Hadi Rahardja, Director of CDP.

The visit was in the framework of a dialogue between CDP, Ministry of Transportation, Customs, and Ministry of Agriculture concerning the regular activities in CDP.

The Deputy Trade Minister said that the CDP helps to reduce the load of containers at Tanjung Priok port and sees it as a sound storage container site.

At the end of the visit, Bayu conducted direct observation of activities at CDP.

Deputy Trade Minister’s Visit to Cikarang Dry PortThe President Post/Heros Barasakti

National Batik Dayby IndosatTo celebrate the annually-held National Batik Day, on October 2 PT Indosat released balloons into the air and installed a batik-patterned ornament at their headquarters building measuring 160m by 10m.

The President Post/Rians Rivco

The President Post/Heros Barasakti

Tree House Inauguration of President Special Need CenterMedical City Jababeka donated a tree house for students at the President Special Need Center (PSNC). PSNC also organized art performances by its students.

GB Jababeka Residence Club in cooperation with Djarum Mild Talk held a talk show at the Hollywood Plaza Jababeka, Cikarang. The talk show was themed “From Blogger to Entrepreneur” and was presented by Raditya Dika, a writer, comedian and entrepreneur.

In this event participants were invited to hold a profession without having to work in office.

“Basically, we strongly support the creativity of young people and respond to diverse communities in the Jababeka City and Cikarang as a whole. Through the community and young people, the future of a city can be built,” said Eric Limansantoso, GM Marketing & Promotion, PT Graha Buana Cikarang.

GB Jababeka Residence Club Presents Mild Talk

The President Post/Heros Barasakti

Japan Education Fair 2012 was held at the Jakarta Convention Center. 47 Public and private universities from Japan took part. This event was open to the public and was a source of information for visitors who wish to continue studying in Japan.

Japan Education Fair 2012The President Post/Heros Barasakti

LIVINGwww.thepresidentpost.com

October 2012No. 37

SECTION C

The President Post

‘Himalayan Viagra’ Taking Its Toll on NepalRam Bahadur Jafra and his two brothers crouch on a field, picking through blades of grass and staring at the soil. They have traveled five days by foot to a Himalayan meadow at a 4,300 meter elevation deep inside Nepal’s Dolpa district. They came, as tens of thousands do each year, to harvest a highly valuable commodity from the high-altitude soil: the Himalayan caterpillar fungus – also known as Himalayan Viagra.

Caterpillar fungus, or as it’s called in Tibetan, “yartsa gunbu,” meaning “summer grass, winter worm,” is a

specimen created when a para-sitic fungus infects caterpillars underground which, were they not forestalled by the fungus, would produce ghost moths.

After the fungus mummifies the caterpillar underground, it thrusts out of the soil. It’s this tiny protuberance that the har-vesters spend weeks each spring searching for.

A hundred or so people crawl across the field in a mulled si-lence until a sole searcher lets out an excited cry. Dozens rush over to witness, Jafra is the first to arrive.

The woman who has discov-ered the specimen uses an ice pick to prod the earth and dig a hole about six inches in diam-eter. She then lifts a clump of earth up and sifts out the speci-men. The crowd gossips about its value – “it’s small, only 300 ru-pees!” (about $3). A middle man will offer her that amount, then walk it to a market in Tibet and sell it for three times the price.

Like many others, Ram and his brothers traveled for the har-vest betting on hope alone. “Peo-ple in our village talked about the money to be earned, so we came,” he says.

The rumors of riches are not baseless. According to experts, the market value of yartsa gun-bu has increased by 900% be-tween 1997 and 2008.

One study says 500 grams of top quality yartsa gunbu can sell for up to $13,000 in Lhasa, Ti-bet, or up to $26,000 in Shang-hai. Average annual income in Nepal’s rural mid-and-far-west-ern hills, where many harvest-ers live, is just $283, according to the government.

Police in Dolpa expect 40,000 people to migrate to the district this year. The influx of migrant harvesters speaks volumes to the increasing global commodi-fication of yartsa gunbu. Prized in traditional Tibetan and Chi-nese medicinal practices for its power as an elixir or an aphrodi-siac, in recent years commercial dubbing of the product as “Hi-malayan Viagra” has driven up both demand and market value around the world.

But the unprecedented flood of harvesters has observers con-cerned about the environmen-tal impacts of this informal eco-nomic boom. “Look at the hills,” says Gyalpo Thandin, a stu-dent in Dolpa, “they’re all torn up from people digging. By next year they’ll be deserts.”

Thandin, who was visiting home for the harvest, remem-bers when the yartsa gunbu season meant local bounty, not

commercial competition. “Just five years ago the numbers were lower,” he says. “Every year we see more people come and more grasslands get damaged. People who come hack at the land with tools and leave it to dry out.”

He says his family’s yaks have died in recent winters due to de-pleted grass caused by the har-vest.

Six years ago, a committee of community leaders in Dolpa in-stituted a taxation system on harvesters in an effort to control numbers and ensure the local community remained resilient amidst environmental changes. The committee charges locals 1,000 rupees ($11) and outsiders 3,000 rupees ($33) to join the harvest. The system is intended to spend the money on environ-mental protection measures and to subsidize food for villages in the district.

Similar systems exist in har-vest areas across the Himalayas. However, some worry the mea-sure is ineffective.

A former committee member who spoke on the condition of anonymity suggests that charg-ing admission to the harvest has only made it seem even more valuable, and as a result, drawn more harvesters. “The goal of the system was to charge people and therefore limit the number who would want to come for the har-vest, but putting a price on the

Do you want to love what you do for a living? Follow your pas-sion. This piece of advice pro-vides the foundation for modern thinking on career satisfaction. And this is a problem.

I’ve spent the past sever-al years researching and writ-ing about the different strategies we use to pursue happiness in our work. It became clear early in this process that the sugges-tion to “follow your passion” was flawed.

The first strike against this advice is the lack of scientific ev-idence. Motivation and satisfac-tion in the workplace is a major research topic, as happy employ-ees are better employees.

It’s difficult, however, to find studies that argue the impor-tance of matching a work envi-ronment to a pre-existing pas-sion. Most studies instead point to the importance of more gen-eral traits, like autonomy or a sense of competence.

These traits are agnostic to the specific type of work performed, contradicting the idea that you must find the exact right job to be happy.

The second strike against this advice comes from the anecdot-al evidence. If you study the ca-reer paths of people who end up loving their work, you’ll find that clearly identified pre-existing passions are rare.

Just because “follow your pas-sion” is bad advice, however, doesn’t mean that you should abandon the goal of feeling pas-sionate about your work. This reality instead emphasizes that

Why ‘Follow Your Passion’is Bad Advice

the strategies that work are more complicated. Below are three ideas that came up often in my study of how people actually end up loving what they do.

I’ve watched too many of my peers fall into anxiety and chron-ic job-hopping due to this flawed advice. The problem, of course, is that these traits are rare and valuable. Just because you really want a job that allows you to au-tonomously tackle respected cre-ative projects doesn’t mean that someone will hand it to you.

These rare and valuable traits require that you have rare and valuable skills to offer in re-turn, and building these skills requires time and deliberate ef-fort. If you’re unfulfilled in your current position, therefore, start by asking how you can become more valuable.

As you become increasingly valuable, for example, your boss

might push you toward tradi-tional promotions that come with more pay and more responsibili-ty -- as this is what is most use-ful to your company -- whereas you might find more passion by leveraging your value to gain au-tonomy in your schedule or proj-ect selection. Getting good, in other words, is not enough by it-self. You have to use your abili-ty wisely.

This pattern is common in the stories of people who end up lov-ing their work: after they devel-op rare and valuable skills they then use these skills as lever-age to take control of their ca-reer path, often veering far off the standard trajectory. This act of leverage requires courage, but can return great rewards.

Some argue that “follow your passion” is harmless advice. If it can help even a small number of people realize that they don’t have to settle, what’s the prob-lem?

I disagree. I’ve watched too many of my peers fall into anxi-ety and chronic job-hopping due to this flawed advice. The issue is expectations. If you believe that we all have a pre-existing pas-sion, and that matching this to a job will lead to instant work-place bliss, then reality will al-ways pale in comparison.

Don’t set out to discover pas-sion. Instead, set out to devel-op it. This path might be lon-ger and more complicated than what most upbeat career guides might preach, but it’s a path much more likely to lead you somewhere worth going. CNN

entry might actually be encour-aging more people,” he says.

As communities in Nepal, one of the world’s poorest coun-tries, cope with the econom-ic need and the increasing de-sire for high-value commodities like yartsa gunbu, conservation efforts will require cooperation between leaders at village, dis-trict, and national levels. There is no question this Himalayan “gold rush” buoys rural econo-mies. Keeping it around for fu-ture generations will be the chal-lenge. CNN

Yarsagumba, also known by the scientific name Cordyceps

sinesis, has been prescribed by traditional healers in Asia

for centuries to treat lung and kidney diseases, build up bone

marrow and stop hemorrhaging. But it is prized for its reputation

as a powerful aphrodisiac that boosts men’s sexual prowess.

www.cironline.org/Thomas L. Kelly

Don’t set out to discover passion. Instead, set out to develop it. This path might be longer and more complicated than what most upbeat career guides might preach, but it’s a path much more likely to lead you somewhere worth going.

C2

Healthwww.thepresidentpost.comOctober 2012

Men who have been treated for prostate cancer, either with surgery or radiation, could ben-efit from taking aspirin regular-ly, according to a U.S. study pub-lished this week in the Journal of Clinical Oncology.

Taking aspirin is associated with a lower risk of death from prostate cancer, especially for men with high-risk prostate can-cer, according to the study. Kevin Choe, assistant professor of radi-ation oncology at the Universi-ty of Texas Southwestern Medi-cal Center, is first author of the paper.

Preclinical studies have shown that aspirin and other anticoag-ulation medications may inhibit cancer growth and metastasis, but clinical data have been lim-ited previously. The new study looked at almost 6,000 men who had prostate cancer treated with surgery or radiotherapy. About 2,200 of the men involved, or 37

percent, were receiving antico-agulants ( warfarin, clopidogrel, enoxaparin, and/or aspirin).

The findings demonstrat-ed that 10-year mortality from prostate cancer was significant-ly lower in the group taking an-ticoagulants, compared to the non-anticoagulant group, or three percent versus eight per-cent. The risks of cancer recur-rence and bone metastasis also

were significantly lower. Further analysis suggested that this ben-efit primarily derived from tak-ing aspirin, as opposed to other types of anticoagulants.

“The results from this study suggest that aspirin prevents the growth of tumor cells in prostate cancer, especially in high-risk prostate cancer, for which we do not have a very good treatment currently,” Choe said in a state-ment. LATimes

Aspirin May Help Men withProstate Cancer Live Longer

www.wikipedia.org

An inexpensive arthritis drug called auranofin has been shown in lab and animal tests to kill the parasites that cause amoebic dysentery and giardiasis, and human trials are expected to start soon. The gold-containing drug, marketed under the trade name Ridaura, has already been demonstrated to be safe in hu-mans, is much more powerful than existing treatments, and could be provided in developing countries for as little as $2.50 per dose, researchers said. If the results hold up in clinical trials, the drug could provide a new way to reduce suffering in both children and adults.

Amoebic dysentery, caused by the protozoa Entamoeba his-

tolytica, passed through con-taminated food or water, strikes an estimated 50 million peo-ple around the world each year. It kills 70,000 people annual-ly, most of them children in de-veloping countries. The simi-lar parasite giardia strikes 6% to 8% of children in developing countries, causing diarrhea, ab-dominal cramps and dehydra-tion. The current treatment for both is the antibiotic metronida-zole, which has side effects that include nausea, vomiting, dizzi-ness and headache.

A team headed by Dr. James McKerrow, a pathologist at UC San Diego, and parasitologist Anjan Debnath of UC San Fran-

Inexpensive Arthritis Drug May Treat Dysentery, Giardiasis

cisco, developed an anaerobic screening process to test poten-tial drugs against the amoeba in the laboratory.

The team reported Sunday in the journal Nature Medicine that auranofin successfully killed the parasite in laboratory dishes and that it was about 10 times more effective than metronidazole, suggesting that it could be used at very low doses. “Importantly, it was a drug that has been giv-en to people since 1985,” McKer-row said. “So we knew it could be taken orally and was safer than the current drug for amoebas.” A single dose might be sufficient to clear an infection, the team said. LATimes

PREVENTIVE & CARE HEALTHCARE:

To Enhance Quality of Life by Living Healthier for Longer Period

Most people say that it is better to pre-vent than to cure, particularly when medical costs are

soaring nowadays. Therefore The Prevention & Care (P&C) Healthcare exists as a pioneer of preventive-based healthcare in Indonesia that brings integrated and comprehensive healthcare services by prioritizing preven-tion and health maintenance. By knowing your current health status, it may determine preven-tive phases and acts.

The P&C Healthcare, since its inception in 2010, puts forward the concept of Preventive Health Management which extends lon-ger period of health status as well as preventing illness.

Preventive Health Manage-ment manages your health with a series of five integrated basic elements to obtain a better un-derstanding on the essence of healthcare management and develop further awareness to fi-nally perform an act of integrat-ed health preservation and pre-vention.

In line with these basic ele-ments, P&C Healthcare presents five stages of integrated health-care management:

Health Education –• P&C Healthcare presents regular health classes that provide a thorough education about the

The P&C Healthcare, since its inception in 2010, puts forward the concept of Preventive Health Management which extends longer period of health status as well as preventing illness.

human health harmony in a comfortable and pleasant at-mosphere. It provides a se-ries of education of integrated health care and management systems, such as information about various types of chronic diseases, disease’s symptoms, treatment and prevention measures and daily health management.Preliminary Identification• - at this stage, P&C Health-care will ask you to fill a ques-tionnaire to get a preview on your current health condition, risk factors and body system. Proper health management program will be determined by these results, as well as re-ferral for a further examina-tionAdvanced Identification• - at this stage, you may get spe-cific laboratory identification and advanced consultation with Preventive Health Con-sultants who are qualified and experienced General Practitio-ners, Therapists, and Nutri-tionists with a fine reputationPreventive Health Program• – it provides a series of pro-gram that consist of risk fac-tor counseling, physiotherapy treatment, and holistic phar-maceutical services. There are also nutrition and detoxi-fication programs. Its Physio-therapy treatment is equipped with Japanese Quality Stan-dard devices as well as ex-

perienced therapists to ca-ter post-stroke patients and other related ailments. There are Nebulizer, Infrared, Ultra-sound, TENS 21, Curesonic, massage, and other advanced medical devices.Continuous Monitoring• – provides quality services and continuous health monitor-ing. P&C Healthcare monitor-ing officers will continuously monitor a customer’s health condition, update post-visits as well as remind customers to do a preventive program

All general practitioners, therapists and staff members are very caring and helpful as they understand the needs of patients to get more attention in order to be healthier. All skilled and competence staff members are always available to treat all customers as if they were having a personal health assistant.

The P&C Healthcare is located at The Belleza Shopping Arcade, which provides a comfortable and enjoyable ambience very dif-ferent from any other clinics nor hospitals. All general practitio-ners, therapists and staff mem-

bers are very caring and helpful as they understand the needs of patients to get more attention in order to be healthier. All skilled and competence staff members are always available to treat all customers as if they were having

a personal health assistant.The P&C Healthcare has ac-

curate a laboratory and phar-maceutical facility which provide both prescription and non pre-scription medicines as well as nutrition products.

C3

Tourismwww.thepresidentpost.com October 2012

Approximately 5,000 guests, including for-eign sailors, attend-ed the internation-al maritime event.

President Susilo Bambang Yud-hoyono inaugurated the Sail Morotai peak event at Daruba beach, Morotai island, on Sep-tember 15.

Earlier, Coordinating Minister for People s Welfare Agung Lak-sono held a coordination meeting on Sail Morotai`s final prepara-tions in Jakarta on September 4. Among the several ministers at-tending the meeting were Youth and Sports Minister Andi A Mal-larangeng, Education and Cul-ture Minister M Nuh, Tourism and Creative Economic Minis-ter Mari Pangestu and Maritime Affairs and Fisheries Minister Sharif C Sutardjo.

At the meeting, Agung ex-pressed hope that Sail Indone-sia 2012 would help speed up economic development in North Maluku, particularly in the tour-ism and fisheries sectors. “The fisheries sector in North Malu-ku has the potential to contrib-ute foreign exchange worth tril-lions of rupiahs to the nation if it is well managed,” the minis-ter said.

“The waters of Morotai island are home to some 191 species of fish, with a production capacity of 148,473.8 tonnes annually,” he added.

“Such maritime potential is expected to attract investors from Japan, South Korea, China and Taiwan. In fact, a memoran-dum of understanding (MOU) on investment in the fisheries sector was signed by a Taiwanese com-pany and a local partner called Jababeka,” Agung stated.

The natural beauty of Morotai island, which is situated in the middle of the Pacific Ocean, is also expected to attract tourists. Agung, Sharif, and Public Hous-ing Minister Djan Faridz visited Morotai Islands on September 2 to oversee the final prepara-tions, particularly with regard to transportation and accommoda-tion for the event s participants and guests.

The Sail Morotai organizing committee and the Morotai Is-land administration have joint-ly developed the necessary infra-structure and facilities in order to ensure the event s success. In addition to the several hotels in Ternate, the capital of North Maluku, hundreds of houses of local inhabitants have been ren-ovated to provide home-stays for participants and guests of the event.

Well-equipped tents will also be set up by Indonesian military officers to accommodate guests and participants, because of the limited number of hotels on the island.

Accommodation arrange-ments in Tobelo, a neighbouring

city in North Halmahera district, have also been made in anticipa-tion of increased demand during the event. Transportation will be provided from Tobelo to Morotai.

Earlier, Sail Morotai organiz-ing committee chairman Muh-adjir Albar said in Ternate that a ship of state-owned shipping line PT Pelni was available to accom-modate some of the race partici-pants in Daruba. “The Pelni ship can accommodate up to 1,000

people, so this will help solve the hotel problem,” he stated.

A special resort has been con-structed for President Susi-lo Bambang Yudhoyono, who stayed overnight in the island. “All infrastructure projects have been completed and the orga-nizing committee is now focus-ing on the event s activities,” Al-bar noted.

Sriwijaya Air and Express Air offered flights between Babul-

Sail Morotai Expected to Boost N. Maluku’s Tourism and Fisheries

lah Airport in Ternate and Pit-tu Trip airport in Daruba dur-ing the event. Besides, according to a report from Taiwan news agency CNA, Indonesia has al-lowed chartered flights from Tai-wan to Morotai during the sail-ing event. A non-stop flight from Taipei to Morotai will take about three hours.

The Indonesian government suggested in 2010 that Taiwan take charge of the overall de-velopment of Morotai. The two countries have held talks on the issue several times since then. Andrew Hsia, Taiwan s repre-sentative to Indonesia, said the establishment of direct charter flights to Indonesia was neces-sary for Taiwan to develop Moro-tai island.

Meanwhile, North Maluku Governor Thaib Armiyn recent-ly said: “North Maluku will use the Sail Morotai event to pro-mote tourism in the region and also highlight the province’s nat-ural resources. Hopefully after this event, the number of tour-ists visiting North Maluku will increase.”

“The province has various tourist attractions, such as the World War II heritage sites on Morotai Island, its maritime re-sort, as well as the beautiful scenery in North Halmahera,” he added.

“We now have flights connect-ing Tokyo, Morotai and Bali in order to attract Japanese tour-ists. There is also an investor in-terested in constructing a five-star hotel in Morotai because he believes in the province s tour-ism potential,” the governor pointed out.

At least 100 World War II vet-erans, who were stationed in Mo-rotai and other neighbouring is-lands during the War, attended the opening ceremony. The war veterans from the United States, Australia, New Zealand and Ja-pan, are expected to help pro-mote the island as a tourist des-tination.

Morotai was used as a mili-tary base by the Allied forces in their battle against the Japanese in Asia-Pacific during the war.

The North Maluku provin-cial administration has built a World War II Museum in Moro-tai, which will be inaugurated during the Sail Morotai event. “There are a number of tour-ist attractions in Morotai, many of which are World War II heri-tage sites, such as the islands of Sum-Sum and Dodola. We will develop them with better in-frastructure facilities to attract more visitors,” Thaib said.

“The island of Sum-Sum was used as a resting place by Gen. Mac Arthur, the chief of the Al-lied forces in Asia-Pacific. The island also has a water spring, named Glass Water, where Gen. MacArthur liked to bathe,” he added.

A total of 133 yachts from 22 countries took part in Sail Mo-rotai set sail from Darwin, Aus-tralia, on July 28. There were 47 yachts from Australia, 20 from the US, nine from Canada, eight from New Zealand, seven from the Netherlands, and six from England, among others.

The rally participants were divided into two teams, which would take two different routes to Indonesia. The eastern route

would pass through Saumlaki, Banda, Buru, Ternate, Wakato-bi and Takabonerate, while the western route would be through Kupang, Alor, Lembata, Ende, and Riung.

The guests and participants were entertained with Soya-Soya dance on September 15. “The Soya-soya dance was per-formed below the sea level by around 100 divers from the In-donesian Diving Sports Asso-ciation (POSI) branch of North Maluku,” he stated. “The dance was performed besides a wel-coming dance involving about 1,000 dancers in the presence of President Yudhoyono,” Umar said.

The Soya-Soya dance depicts the heroic struggle of a Babul-lah Empire soldier, named Soya, who led an attack against Por-tuguese soldiers during the co-lonial era in order to retrieve the remains of Sultan Babullah.

“In Sail Belitung, there was a chess game under the sea. In Sail Bunaken, a red-and-white flag was hoisted below the sea level. And now in Sail Morotai, we will present the underwater Soya-Soya dance,” he added.

Sail Morotai 2012 is the latest in the series of annual interna-tional sailing events held by the Indonesian government since 2000, with different islands be-ing selected each year as the venue of the race.

Sail Bunaken was held in North Sulawesi in 2009, while Sail Banda was organised in Maluku in 2010. Last year, Be-litung island hosted Sail Waka-tobi.

Sail Indonesia 2012, or Sail Morotai, was held in Indonesia’s northernmost island of Morotai from September 12-15.

The President Post/Rians Rivco

Sail Morotai 2012 is the latest in the series of annual international sailing events held by the Indonesian government since 2000, with different islands being selected each year as the venue of the race.

C4

Travelwww.thepresidentpost.comOctober 2012

Suddenly the blue skies turned cloudy and dark and I thought it was going to rain. I automatically looked to the water surface and I was extremely shocked to see a 10-meter long whale shark crossing over my head gracefully and formed a silhouette of a large shark!

Indonesia’s flora and fauna is diversely rich. It is home to, among others, the big-gest shark in the world, which is called the whale shark.

To reach the habitat of this gi-ant marine creature, we have to go to Nabire, which is located in the Papua province, and then travel to Kwatisore village with a 200hp speed boat for about two hours.

There are actually many flight options to Nabire. You can take Lion Air and stopover in Am-bon and Kaimana or take Garu-da Indonesia or Merpati Indone-sia to Biak. From Biak, you can take Susi Air or Express Air to reach Nabire.

Kwatisore is a quiet coastal vil-lage inhabited by friendly villag-ers who would display red teeth when they smile or laugh. The lo-

cals get their red teeth from their habit of hewing betel nut and therefore it would be a nice ges-ture if you bring them betel nut from Nabire.

The whale sharks can usu-ally be found swimming un-der fish nets. The whale sharks are attracted by the ancho-vies that managed to escape or those that are freed by the fish-ermen. Although they’re sharks, the whale sharks only eat plank-tons, shrimps and small fish.

I took a speed boat to look for a fish net that was being visited by the giant fish or what the lo-cals call ‘gurano babintang’. The boat’s captain immediately ap-proached a fish net when he re-ceived a signal from one of the fishermen that a ‘gurano’ was swimming nearby.

cided to put on my scuba div-ing gear, mask and fins. I had my underwater camera ready. I looked around while my thumb was ready to press the REC but-ton, but the object somehow dis-appeared. The sun light went through the water and formed long rays into the deep water. I tried to look deeper from the cen-ter of the fish net.

Suddenly the blue skies turned cloudy and dark and I thought it was going to rain. I automatically looked to the wa-ter surface and I was extremely shocked to see a 10-meter long whale shark crossing over my head gracefully and formed a sil-houette of a large shark!

I was so stunned that I forgot to record the moment and let the ‘gurano’ went by. It was amaz-

From there I could see a 10-meter long giant fish emerging to the surface, which gave me a mixed feeling of being curious and scared.

“Is it true that this shark doesn’t eat meat? Is it not going to knock me off? Will it hit me with its tail?” There were many other questions and doubts that ran across my mind.

I felt like my heart was go-ing to leap out when the ‘gura-no’ opened its mouth and sucked small fish and gallons of water around it. That’s how the ‘gura-no’ eat its meal—by widely open-ing its mouth and sucking them all in.

“But what if my foot got sucked into its mouth?”

Despite my insecurity, I de-

By Iqbal Alaik

ing! Luckily I managed to snap out and quickly took pictures. It turned out that the ‘gurano’ didn’t go far; it just swam around the bagan.

Shortly later, a second ‘gurano’ came but this time it’s smaller than the first one, at about eight meters long. Before I knew it, came the third, fourth and fifth ‘gurano’ with sizes ranging from 6 meters to 12 meters long. I kept my distance at least 3 meters away from the guranos because I was worried they would knock me off but it was also meant to make them feel safe and undis-turbed by my presence. However, it was them that tried to get near to me with our distance at only about half a meter away! Amaz-ingly, none of them touched me. It seems like the guranos are al-

ready accustomed to having hu-mans around them.

Time went by so quickly and I had already swam with these sharks for almost three hours but I still didn’t want to go yet. I knew I had to return to Kwatisore village eventually. I still have to-morrow and the fish will still be there, I consoled myself. Whale sharks actually like to migrate to other countries to find warm waters but here they seemed to have found home due to the vast food supplies.

This is such a special treat for Nabire because it cannot be found in other waters. Let’s not waste this gift and let’s manage this tourism potential wisely and with calculated measures be-cause any wrong move will scare the whale sharks away.

Diving with Whale Sharks in Indonesia

I was so stunned that I forgot to record the moment and let the ‘gurano’ went by. It was amazing! Luckily I managed to snap out and quickly took pictures.

PHOTOS: Iqbal Alaik & Adita Alaik

C5

Culturewww.thepresidentpost.com October 2012

The event is the fi-nal series of the in-troduction program to welcome new in-ternational students who will study at the

technology university at the un-dergraduate and master levels.

Indonesian students who are members of the Indonesian Stu-dents Association (PPI) Delft per-formed traditional dance Jali-ja-li from Betawi (another name of Jakarta) and Sipatokaan from North Sulawesi which were car-ried by Indonesian children.

Meanwhile some typical snacks and drinks provided by the event organizer includ-ed lemper (Indonesian snack of chicken wrapped in sticky rice), fried bananas, fried tempe (soya bean), kelepon (sweet rice balls stuffed with coconut sugar), bakwan (fried meal consisting of vegetables and batter) and cen-dol ice (a traditional Indonesian desert made from shaved ice, co-conut milk, starch noodles and palm sugar).

According to Chairman of PPI Delft Sayuta who is currently studying for a master degree in Engineering Policy Analysis pro-gram, the event was an oppor-tunity to introduce Indonesia in front of the international com-munity.

“TU Delft is a great university

of technology in Europe even in the world with tens of thousands of students coming from differ-ent countries. This is our chance to show our existence and poten-tials of Indonesia which is rich in cultures to the international community,” Sayuta said here Friday.

AppreciationJali-jali dance performed by

five Indonesian students who are now studying in a master program at Institute for Water Education (Unesco-IHE), Delft, amused the audience although the preparation was limited.

“We are not professional danc-ers and the time for exercise was short as we had to adjust our-selves to a tight class schedule. To be honest, I was a bit nervous

but once I saw the festive atmo-sphere stage was crowded with excited audience, I became re-laxed and cheerful,” dancer Kun-tarini Rahsilawati said.

The enthusiasm of the audi-ence increased few moments fol-lowing the appearance of sev-en little girls dressed in typical Makassar (South Sulawesi) cloth with fans in heir hands, while stomping their feet following the music rhythm. The audience spontaneously applauded just to hear the Sipatokaan song.

The fifteen minute perfor-mance of Jali-jali and Sipato-kaan dances quite amazed the audience and even some people lauded the show.

“They are so wonderful,” an

event organizer of the introduc-tion program for TU Delft in-ternational students 2012 Val-ia Gkeredaki said, hoping that next year PPI Delft would show the traditional Indonesian danc-es again.

The typical Indonesian snacks also got positive comments. Of some snacks available at the PPI stand, bakwan was the most popular foods for the visitors. “All the foods ran out and the most demanded is bakwan,” a member of PPI Delft Louis Mar-cel said.

Two students from Iran Sa-maneh and Dena expressed ap-preciation to the Indonesian stu-dents? performances and the foods provided. “Indonesian peo-ple are perfect. The food is deli-

Indonesian Students Introduce National Culture Through Dances, Foods

Indonesia has a population of over 237.6 million, comprising 1,120 ethnic groups, each with its own art and culture, which could be used to develop the country s creative economy for the welfare of the people.

Indonesia s rich culture often inspire other countries to imitate it, or even claim some of its as-pects to be their own, as seen in the recent issue regarding North Sumatra s Tor-Tor dance and Gordang Sambilan music.

Rais Yatim, Malaysia s minis-ter of communication and cul-ture, was quoted by Malaysian state news agency Bernama re-cently as saying that Tor-Tor dance and Gordang Sambilan music would be added to the country`s National Heritage Law. In the past, Malaysia had even claimed the “pendet” dance, paintings (Batik designs), and even the copyrights of several national songs, according to me-dia reports.

A “Visit Malaysia Year” com-mercial, developed to boost the country s attractiveness to the world, had featured the pendet dance as if the dance was indig-enously Malaysian. The ad was broadcast by a number of local and overseas television stations. This shows the economic poten-tial of the arts.

Other nations envy the plural-ity and richness of Indonesia s art and traditional culture, be-cause it can be preserved while being exploited as a source of creative economy that could im-prove the welfare of the people.

Therefore, Tourism and Cre-

ative Economic Minister Mari Elka Pangestu said the govern-ment would continue to promote the nation’s arts in the form of products, such as handicrafts, as part of the country s creative economic development.

The government will develop cultural parks in at least 25 lo-cations in various provinces, in-cluding in West Nusa Tengga-ra (NTT), to revive the nation’s arts and creative economic pro-duction.

“The cultural parks will be re-stored in 25 locations. They can be used as places to carry out training programmes on pearl ornamental design or as centres of creative economic develop-ment,” the minister stated.

Indonesia s arts potential was also proven when about 25 arts teachers from Thailand visit-ed the Indonesia Arts Insti-tute (ISI) in Bali last week to ob-serve the teaching and learning methods of the institute. Bali is Indonesia s most popular tour-ist destination, which has its unique local dances and other traditional cultures.

“ISI rector I Wayan Rai re-ceived them and the guests were served Balinese tradition-al foods,” ISI spokesperson Ni Ketut Dewi Yulianti said. The Thai teachers were also enter-tained with a Balinese tradition-al “gambus” dance music show, which has recently been revived.

The Thai delegates were in Bali for five days, during which they also attended the 34th Bali Arts Festival and visited the mu-seums and other tourist attrac-

tions in Denpasar, Ubud and Gi-anyar.

Earlier, about 26 students from the Singapore River Side Secondary School participated in the Balinese dance workshops, which were held by ISI stu-dents and lecturers. All of this explains why Indo-nesia must promote its art and culture as part of its creative economic development. Therefore, Minister of Tourism and Creative Economy Mari Elka Pangestu is plan-ning to develop cul-tural parks and art galleries through-out the country.

The minister revealed the plan to restore 25 cultural parks across the coun-try during a meeting with entre-p r e n e u r s and pearl handicrafts-men in West Nusa Tenggara on Sunday. Mari also called on the regional gov-ernment to en-courage cre-ative schools to get in-volved in the developing pearl orna-ment de-signs. “I

RI to Use Arts to Boost Creative Economy

The Java and Wales music sensation Gamelan Cardiff celebrated their fifteen year anniversary at the yearly Gamelan Cardiff Prom, held at St David’s Hall Cardiff, Wales on Sunday.

Program Director of People Service of PPI United King-dom, M Fauzan Adziman, told ANTARA that the Cul-tural Olympiad event held in Wales was a series sched-uled prior to Olympiad 2012 in London.

Indonesian Ambassador of Education and Cultural in London, TA Fauzi Soelaiman, also attended the 15th anni-versary of Gamelan Cardiff in England. Soelaiman ad-mitted that music groups of Indonesian culture such as Gamelan Cardiff were unique and should be pro-tected by Indonesians.

Gamelan Cardiff is a Javanese gamelan music group which is made up of 15 musicians from Wales. Gamelan Cardiff was started in 1998, said Helen Woods, chief of the music group as well as its music composer.

Last year, those attending the Gamelan Cardiff Prom an-niversary heard more Javanese songs. Meanwhile, this year Ja-vanese songs were only per-formed at the beginning of the show. “The Wales contemporary songs combined with Javanese gamelan were so stunning,” said a member of the audience, Elly Mills, who said she has enjoyed gamelan in Wales for the last four years,

The event closed with the playing of Elemental, a combi-nation of gamelan and an adap-tation of David Woods, from the folklore of Wales which told the story of a princess. “Apart from the performance, we introduce

Java and Wales Music Combined for 15th Year by Gamelan Cardiff

Indonesian students in Delft, the Netherlands, introduced national culture by performing two traditional dances and Indonesian foods at a multicultural event organized by Delft University of Technology (TU Delft), the Netherlands, on 30 August 2012.

PHOTOS: www.ppidelft.net

Jali-jali dance performed by five Indonesian students who are now studying in a master program at Institute for Water Education (Unesco-IHE), Delft, amused the audience although the preparation was limited.

TOP: Some typical Indonesian snacks and drinks provided by the event organizer. BOTTOM: “Indonesian Fear Factor” challenge.

TU Delft is a great university of technology in Europe even in the world with tens of thousands of students coming from different countries. This is our chance to show our existence and potentials of Indonesia which is rich in cultures to the international community.”SayutaChairman of PPI Delft

cious. I like the fried bean (tem-pe),” said Samaneh who was of the same opinion with Dena.

In addition to these snacks, Indonesian students also make a sort of challenge for visitors to eat two pieces of Maicih crispy chips (cassava chips from Band-ung (West Java) with a super-spicy flavor.

According to Marcel, the chal-lenge was called `Indonesian Fear Factor and it attracted vis-itors because not only the burn-ing tongue-spicy taste which made it interesting but also a gift for those were able to eat two pieces of chip.

“If one could eat just two piec-es of Maicih chip he or she de-serves typical Indonesian key-

chain in the form of wayang (traditional puppet) or batik. It also promotes Indonesian cul-tures,” Marcel said, adding that western people who tried to taste the chips could not bear the spicy taste

Meanwhile the dance coach who is also a doctoral student at TU Delft, Ida Nurhamidah, said the children were very excited to bring the traditional dance at the TU Delft campus, although they only conducted dance ex-ercise three times, they looked pretty good and even won prais-es from the audience.

“This is a way for the children to know their culture and raise the confidence to perform in front of people,” she said. Antara

The government will develop cultural parks in at least 25 locations in various provinces, including in West Nusa Tenggara (NTT), to revive the nation’s arts and creative economic production.

gamelan to children in the Gamelan Gang program, and also offered workshop programs at the student col-lege,” said Rhian Workman, one of Gamelan Cardiff mu-sicians.

Gamelan Cardiff began due to the presence of the Halle Gamelan group from the Manchester Orches-tra. Helen learned the mu-sic from Maria Mendonza, a member of Halle Gamelan. One of Helen’s colleagues, as well as founder of Gamelan Cardiff, Betty Griffith, has traveled to Yogyakarta to observe gamelan being per-formed.

The collecting of original Indonesian gamelan instru-ments has been supported by St David’s Hall and New Theater Trust (now Art Ac-tive Trust), Cardiff.

Gamelan Cardiff is a Javanese gamelan music group which is made up of 15 musicians from Wales.

www.artsactive.org.uk

agree that pearl ornament de-signing should not just be a self-teaching exercise. Training is needed, which could be done in the cultural parks,” she said.

Mari Elka PangestuTourism and Creative Economic Minister

C6

Propertywww.thepresidentpost.comOctober 2012

Indonesia property mar-ket is influenced by the positive economic growth which was expected to reach 6.4% in 2012.

Cushman & Wakefield on its re-search publication recorded that Indonesia property market is showing positive escalation in which the supply and demand continued to increase from year to year. Despite the landed resi-dential market sector experienc-ing slow demand due to several factors, as explained in the fol-lowing report:

Landed Residential MarketA new mortgage regulation in

H1 2012 gave bigger impact on lower middle to upper middle segment housings. 2011 was a golden year for landed residential market as shown by outstanding overall sales performance. The increasing sales activities were then followed by the rising mort-gage financing requests to banks since it’s the most preferred pay-ment method. Indonesian Cen-tral Bank released a new nation-al regulation that set maximum loan to value (LTV) for mortgage at 70% effectively implemented since June 2012. How the regu-lation will affect landed residen-tial market during H1 2012 is yet to see.

Slower supply growth in low-er middle and middle segment and slower demand growth in lower middle, middle and upper middle segments were observed during the semester. However, developers were still confident in launching their new hous-ing units and the overall sup-ply growth was even stronger every semester. In contrast, over-all demand experienced slower growth, whilst banks and devel-opers actively offered attractive mortgage rates and longer in-stallment period of the down payment to maintain purchas-ing motivation during H1 2012.

As land in Jakarta has been very limited and expensive, landed residential developments

balanced growth of demand and supply.

The implementation of the Central Bank’s Circular Letter No.14/10/DPNP regarding reg-ulation of loan to value ratio of mortgage, is likely to cause de-lay of several mortgage transac-tions as buyers need to accumu-late more cash to pay the higher down payment. This had chal-lenged both developer and bank to cooperate and create more at-tractive marketing strategy in order to improve purchasing mo-tivation. Banks maintained their mortgage rates in H1 2012 rela-tively stable, whilst some devel-opers offered longer period of down payment installment even over 12 months.

The overall supply experienced a stronger growth of 1.86% HoH in H1 2012. The highest supply growth in H1 2012 was achieved by lower segment housing by 5.5% HoH. Meanwhile, slower growths recorded in the lower middle and middle segments.

CBD Office SnapshotLeasing inquiries and trans-

action activity remained posi-tive for the three month period, again coming from expansion by sitting tenants. Similar to the

previous quarter, most inquiries were of the 300 to 400 sqm size range.

Overall occupancy increased further to 92.4%, a rise of 0.46% since the end of in June and rep-resenting the highest occupancy level since before the Asia finan-cial crisis in 1997.

Total net take-up of 70,100 sqm was recorded during Q3, a decrease of 18.3% over the pre-vious quarter and attributable to some delayed occupation by tenants and owner occupiers in those recently completed build-ings, particularly the strata-ti-tle office projects. Grade-A offic-es continued to enjoy the highest net take-up of 49,300 sqm (or 70% of the total) within the CBD office market.

The completion of WTC 2 in Jl. Jendral Sudirman added a further 54,000 sqm of Grade-A office space to the CBD office stock, bringing total cumulative supply to 4.43 million sqm as of the end of Q3 2012.

Some 95,000 sqm of further supply is scheduled to be com-pleted over the balance of the year, together with an addition-al 370,000 sqm in 2013, which will be the highest annual sup-ply since 1996.

Industrial Estate SnapshotDue to limited readily avail-

able supply, the third quarter saw slower net demand of only 146.7 Ha, fell by 21% QoQ and lower by 18% YoY.

Despite the lower demand, the lack of new supply caused the cumulative sales rate to reach a record of 81% increased from 79.9% in the previous quarter.

Similar to in the previous quarters, the Industrial estates (IE’s) in Bekasi and Karawang & Purwakarta areas continued to enjoy significant portion of the overall demand of about 90%. The remaining demand was ab-sorbed by IE’s in Serang and Bo-gor areas.

Major demand and inquiries in this quarter were still domi-nated by foreign industrialists especially those from automotive related sector.

Additional supply during the third quarter of approximately 50 Ha came from IE’s in Bekasi/Purwakarta areas, bringing the total cumulative supply of indus-trial land in the Greater Jakarta area to 9,362 Ha.

Retail SnapshotLeasing activities within the

Jakarta retail market were very active during the 3rd quarter

2012, with the new record of quarterly net take-up of 161,600 sm. Most of this take-up was contributed by the occupation of tenants in the newly complet-ed centers, such as Grand Para-gon, Kota Kasablanka and Lippo Mall Kemang. In the more estab-lished centers, the occupancy rate remained relatively stable. Anchor and big tenants, such as super/hypermarkets, depart-ment stores, home appliances, electronics, fitness, and cinema dominated leasing transactions during the quarter.

With the completion of three prominent retail centers in Ja-karta, where many of their spe-cialty tenants are still doing the fitting out, the average occupan-cy rate of the Jakarta retail mar-ket slightly decreased by 0.5% over the previous quarter’s fig-ure to 80.9%, leaving approxi-mately 729,100 sqm of vacant re-tail space as of September 2012.

By district, South Jakarta surpassed the Jakarta CBD and contributes the largest portion of supply at 844,800 sqm (or 22.1% of the total). CBD Jakarta follows at 801,900 sqm (21.0%). Mean-while, North and West Jakarta contribute 758,900 sqm (19.9%) and 660,300 sqm (17.3%) of

space, respectively. Central and East Jakarta make up the re-mainder at 431,000 sqm (11.3%), and 317,700 sqm (8.3%).

Rental Apartment SnapshotThe overall performance dur-

ing 3Q 2012 was mainly affected by the Ramadhan festive season in August, as shown by the slight decline of the occupancy rates during that period, especially in the Serviced Apartments sub-sector. The Condominium-For-Lease and Purpose-Built Rent-al Apartments, however, did not suffer as much, as their tenan-cy mainly consists of long-stay tenants.

Being a yearly event, the Ra-madhan festive season occupan-cy decrease was anticipated by the majority of Serviced Apart-ments operators, and it was con-sidered as a cyclical decline that is expected to stabilize over the upcoming months.

As of 3Q 2012, the total cumu-lative demand for rental apart-ment was recorded at 29,660 units, a 2.2% increase from the previous quarter’s figure, which is also a 12.4% YoY growth. How-ever, compared to the previous quarter, the occupancy rate had experienced a slight decrease; and reached 62.94%, a 3.2% QoQ and 1.7% YoY decrease. Tenancy profile remains the same with local tenants domi-nating the market by 54%.

Condominium SnapshotThe strain of Jakarta’s gov-

ernor election during the past months did not distress the Greater Jakarta’s condominium sales activities. During the 3rd quarter of 2012, the sales activi-ties remained active within both the existing and proposed proj-ects. Deceleration only occurred at near the end of Ramadhan month and Idul Fitri celebration, in August 2012.

Over the review quarter, mid-dle segment condominium still led the sales activities, as it con-tributed for about 60% of the total sales. 7,559 units of new proposed condominiums were launched to the market during July-September, from 14 newly launched projects.

As of September 2012, the sales rate of existing condomini-ums in the Greater Jakarta area was recorded at 95.9%, grew by 1.2% YoY and 0.6% QoQ. The oc-cupancy rate was recorded at 59.9%, dropped by 6.3% from that in the 2nd quarter of 2012.

Cushman & Wakefield Property Market Report:

Slowing Demand of Residential Market in First Semester 2012

CUSHMAN & WAKEFIELD’SGlobal Property Investment Outlook

Slower supply growth in lower middle and middle segment and slower demand growth in lower middle, middle and upper middle segments were observed during the semester. However, developers were still confident in launching their new housing units and the overall supply growth was even stronger every semester.

Banks and developers actively offered attractive mortgage rates and longer installment period of the down payment to maintain purchasing motivation during H1 2012.

www.lensaindonesia.com

have been more actively devel-oped in other areas surround-ing the capital city. The Jakarta landed residential market ex-perienced significant drop of its take-up unit by 13.0% HoH to 7.2 units per month in H1 2012. In contrast, its take-up value in-creased by 17.5% HoH to 9.9 bil-lion IDR due to the increasing sales price.

Despite the drop of aver-age monthly take-up unit in Tangerang by 5.9% HoH, its av-erage take-up value experienced significant increase. The aver-age monthly take-up value per estate in Tangerang was noted at 81.2 billion IDR, reflecting a 37.3% HoH growth and a 37.6% YoY growth. Several prominent estates vigorously launched their new clusters which were fast-ly absorbed in the market. This showed that the landed residen-tial market in Tangerang, espe-cially in Serpong area, was the most sought-after among oth-er areas within the Greater Ja-karta.

The landed residential mar-ket in Bogor-Depok was relative-ly stable with modest decline in both monthly take-up unit and value by 0.6% and 1.5% on semi-annually basis, respectively.

During H1 2012, estates in Bekasi mostly focused on their infrastructure and facilities de-velopment, with one estate was seen concentrating on develop-ment of its industrial area. This resulted in limited addition new supply during H1 2012 and dragged down the take-up unit and take-up value significantly.

Overall sales rate in Great-er Jakarta experienced a pos-itive growth by 0.8% HoH and 1.9% YoY, indicating the higher demand growth than the sup-ply growth. The highest growth occurred in Bogor-Depok by 2.5% HoH, taking its sales rate to 86.4% in H1 2012. Tangerang had the highest sales rate of 96.3%, relatively stable from the previous semester, reflecting a

Jababeka Residence is the newest residential and commer-cial area in Jababeka city, which includes the development of ap-proximately 500 acres of Jababe-ka City. The 500 acres develop-ment covers Movieland, Medical City, Golf, Jababeka Housing (d’Java, Simprug Garden, Tropi-cana Garden) and the commer-cial areas (Simprug Plaza, Sen-tra Niaga Square, Sunter Niaga Mas).

Jababeka Residence is in-tended for the occupants to have closer access to their workplace in the industrial area. Howev-er, Jababeka Residence is apart from the industrial area and is separated by a river, a clear nat-ural border.

It supports health factors so occupants are not too close to

Jababeka Residence, Your Home to Be

the pollution produced by facto-ries. Jababeka’s development is life-industry with minimal pol-lution.

In addition, Jababeka has a gas-powered power plant that does not cause pollution. The Ja-babeka Residence environment is also surrounded with beauti-ful greenery; there are also the Jababeka botanical garden, golf course, outbound, which yield excellent air quality.

Basic facilities such as elec-tricity and water in Jababe-ka City can be said to be better than in other regions. Accord-ing to Suteja, “We have Bekasi Power for electricity source, and there are also wastewater treat-ment plant and water treatment plant whose quality is better

The increasing demand for industrial areas from year to year in Indone-sia has been growing with some regions identified as ‘congested industrial areas’. These areas have increased employment both in the in-dustry itself and also oth-er related sectors. As a re-sult the areas are crowded with immigrants who need housing, infrastructure, and other facilities.

Jababeka industrial area, as the largest indus-trial area in Southeast Asia with more than 1,500 ten-ants, is aware of the need of workers for complete hous-ing with best facilities that have direct and faster ac-cess to the workplace.

than PAM’s. Fiber optic has also been installed properly. “

Concerning the security of the area, there is a security guard for each cluster, CCTV facility (in Sunter Niaga Mas), street pa-trols, Makorem, Police, LPPM (a

group of citizens empowerment managed in Cikarang), all work-ing together to preserve security.

In the future, Jababeka will be an upper class area with the presence of golf courses, shop-ping malls, luxury homes, etc.

Furthermore, Suteja ex-plained, by 2013, there will be direct access to the Ja-babeka Residence at KM 34.7. There will also be a train access that passes through Jababeka.

Jababeka Residence is the newest residential and commercial area in Jababeka city, which includes the development of approximately 500 acres of Jababeka City.

According to Suteja Sidarta, Vice President of Business De-velopment Jababeka, “the exis-tence of housing to support in-dustry is very important. Without housing, industrial areas can-not be realized. Industrial work-ers should have accommodation and for certain levels this accom-modation is very necessary. “

Jababeka Residence is be-lieved to meet the demands of comfortable and safe housing with international standards. Jababeka Residence is an inte-grated residential area with ex-cellent amenities, ranging from education and sports to enter-tainment and others.

“For executives who wish to live close to their jobs and close to our facilities, Jababeka Resi-dence is your home to be,” said Suteja.

Jababeka City

Canon EOS 6D is one of the most awaited camera by loyal fans of Can-on’s high-end se-ries that are not

sold at affordable prices. Un-like the Canon EOS 5D Mark II, the camera is smaller and has a shape similar to the proportion of the Canon EOS 60D. Even so, this camera looks quite strong among the ranks of other Can-on DSLR.

Canon EOS 6D is a member of the EOS family of the lightest, smallest, and the price is not as expensive as a full-frame DSLR camera other companies re-leased this Canon.

Canon EOS 6D, as with the Nikon D600, is facilitated by the full-frame sensor. But Can-on added other features beside these sensors. There are actual-ly two other key features of the main advantages of this 6D se-ries, which are WiFi and GPS.

The camera is equipped with a mini-joystick multi-controller to select the AF point, not on the navigation pad which is usually located on the back of the cam-era.

The menu system looks a little different from other Canon cam-eras, with a long list of options at the top of the screen. All the fea-tures are presented on this cam-era with one or two additional new features.

There is autofocus customiza-tion menu that makes the Can-on EOS 6D more flexible than the Canon EOS 60D to capture sporting events. Shutter speed

continuous image is 4.5 fps. In addition, there is no button M.Fn, which is usually located next to the shutter release as an option to adjust focus.

There is one interesting fea-ture in Playback menu that al-lows you to create a photo book directly from the camera. This feature is an attractive option and a great project to do with the building Canon Cloud storage servers. As cloud computing you can store, retrieve, and print im-ages whenever and wherever you want via the Internet.

Although it has 11 AF points, they spread out well in the frame shooting. This autofocus system is very responsive and in line with the expectations of most professional photographers. Al-though the shutter is released, the Canon EOS 6D smart fea-tures can still focuses the object, even in dim lighting conditions though.

Despite its HDR mode such as the EOS 5D Mark II, Canon EOS 6D can only save in JPEG format only, so it does not quite appeal to photographers who are already familiar with the EOS 5D Mark III.

Wireless Wi-Fi network is the new key feature in the Can-on EOS 6D. This feature can help you transfer photos direct-ly without using a cable.

Unlike the Canon EOS 650D, Canon EOS 6D is equipped with a 3-inch screen but not touch screen technology. Even so the screen displays images that are quite good even under direct sunlight.

iPhone 5 was officially released in the U.S. on 12 September. Pre-orders will begin on 14 Septem-ber and its debut was in United States, Britain and France on September 21.

There are some changes on iPhone 5 from its previous gen-eration. iPhone 5 has a bigger screen, apart from that iPhone 5 has a body that is 18% thinner than the previous generation. This smart phone is equipped with A6 processor that is twice “faster” than in previous gener-ations. The difference with the iPhone 4s is that iPhone 5 has thinner connector docks.

iPhone 5 runs with iOS 6 such as a detailed 3-dimensional maps and deep integration with Facebook. There is also a feature called Passbook, the application to organize electronic tickets or electronic coupons easily.

As expected by most of Apple’s product lovers, the iPhone 5 has a larger screen size of 4 inches wide, larger than its predeces-sor, the iPhone 4, which only has a 3.5 inch screen. The dis-play technology is still the same, namely Retina Display with a resolution of 1136 x 640 pixels and an aspect ratio of 16 x 9. The pixel density is 326ppi (pixels per inch). With a larger screen, the display on the iPhone 5 applica-tions menu consists of five lines.

Apple also claims that the old applications that are designed for 3.5-inch screen on the old iP-hone will be able to run smooth-ly on the iPhone 5.

The A6 processor is the ‘new brain’ in the iPhone 5. Apple claims that the A6 processor has a two times faster CPU and the graphics capability is two times more intense than the A5 pro-cessor. Even though it has dou-ble capabilities than the older one, it is 22% smaller.

This processor is also claimed to make the battery of the iPhone 5 to be more durable than the iP-hone 4S. Apple claims the iP-hone 5 battery lasts longer than its elder brother, the iPhone 4S. The handset is otherwise able to survive 8 hours of talk and ac-cess the web via the 3G network. Later in the 4G network, iPhone 5 can last about 8 hours to surf the internet. In WiFi connectiv-ity, it can be used for about 10 hours.

Although iPhone 5 has a larg-er body, it is very thin, only 7.6 mm thick, and weighs 112 grams. The moisture content is 20% lighter and 18% thinner than the iPhone 4S, while the material used is aluminum and glass. Overall, the design of the iPhone 5 is not so much differ-ent from the iPhone 4S. Even the

Canon EOS 6D:The Cheapest Full-FrameCamera EverUnlike the Canon EOS 5D Mark II, the camera is smaller and has a shape similar to the proportion of the Canon EOS 60D. Even so, this camera looks quite strong among the ranks of other Canon DSLR.

placement of the buttons looks the same. It comes with a thin-ner body and a larger screen.

iPhone 5 uses an 8-megapix-el resolution camera, like the iP-hone 4S. However, some new ca-pabilities are included, as it can take panoramic 28 megapixel resolution pics. iPhone 5 camera is also capable of shooting pho-tos with better quality in low-light situations. The front cam-era of iPhone 5 is also upgraded. Now, users can make video calls via 720 high-definitions through FaceTime service.

As predicted before, iPhone 5 uses 4G connectivity LTE (Long Term Evolution) for the first time. With LTE, users can enjoy down-load speeds of up to hundreds of Mbps depending on the services provided by telecom operators.

The striking difference be-tween iPhone 4s and iPhone 5 is the dock connector which is much thinner. For the first time in the history of the iPhone, Apple redesigned the connector. Now, they use what is called “Light-ning” with a size 80% smaller than before. Lightning can syn-chronize to your computer fast-er than its 30 pin connector pre-decessor.

The iPhone 5 will come in two colors, namely black and white. iPhone 5 went on on sale on Sep-tember 21 in the United States.

iPhone 5 Officially Released

C7

Technologywww.thepresidentpost.com October 2012

PHOTO: www.hitechreview.com

Although iPhone 5 has a larger body, it is very thin, only 7.6 mm thick, and

weighs 112 grams. The moisture content

is 20% lighter and 18% thinner than

the iPhone 4S, while the material used is

aluminum and glass.

Wireless Wi-Fi network is the new key feature in the Canon EOS 6D. This feature can help you transfer photos directly without using a cable.

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The International Sports Promotion Society (ISPS) has renewed its sponsor-ship of the Faldo Series until 2015. Since 2010, ISPS has become global partner with Sir Nick Faldo’s golf develop-ment program in Asia.

“Sir Nick and I both share a commitment to growing golf at all levels so I am excit-ed to build on three success-ful years working together in Asia and expand our efforts worldwide,” said ISPS chair-man Haruhisa Handa.

“We are pleased to sup-port the Faldo Series. At the same time this is an oppor-tunity for ISPS to showcase

blind and disabled golf and fur-ther our wider mission for blind and disabled golf to become a Paralympic sport.”

“It is the support of partners like ISPS which enables the Fal-do Series to bring opportunity through golf to more than 7,000 young people each year in 30 countries worldwide,” added Fal-do.

“I am grateful to Handa for sharing my vision and I applaud his efforts to grow the game for blind and disabled golfers.”

ISPS was founded in 2006 by the Japanese philanthropist to support charitable causes throughout the sporting world.

ISPS Renewed Sponsorshipwith Faldo Series

The construction of this golf course was started in the same year when Jagorawi Toll Road was officially opened.

The first 9 nine were complet-ed in 1979 upon which the club opened for play, and in 1981 the second nine holes were com-pleted of what was then called the Garden Course but is now known as the Old Course.

The Old Course was also the first course in the country that was designed by a world re-nowned golf course designer team, Thomson & Wolveridge, a feat that was unprecedented at the time. The Old Course, which is located in the former jungle-land known as the Cikeas Riv-er valley, was the first “new-era” layout in the country, and be-came the prime example for the further development of the golf sport in Indonesia.

The Jagorawi Old course is the dame of all courses in Indonesia and clearly it is a course that be-longs to Asia’s top ten. The Old Course matured over a period

of more than three decades into one of Asia’s most challenging courses.

The opening hole is a real eye opener. Standing on the tee box, some 40 meters down below, a fairway awaits that needs to be dealt with diligence and pa-tience. The Cikeas River to the right has caught many a ball that was meant to land on the right side of the fairway, the ide-al place to be on this demanding par 5.

Hole 1 definitely may intim-idate first time visitors, but at the same time it sets the tone for a course that you certainly will enjoy playing tremendous-ly. Once the venue of the Indone-sian Open, each and every hole is different and will be engraved in your memory forever. You haven’t played golf in Indonesia if you haven’t played the Jagorawi Old Course.

To provide more choice for members a second 18-hole course was built, the New Course. Although designed by the same designer, it proves to be

C8

Golfwww.thepresidentpost.comOctober 2012

ISPS has since fostered part-nerships with golfing bodies across the globe to help de-velop the game at every lev-el, including blind and dis-abled golf. Its wider mission is for golf to become a Para-lympic sport.

ISPS joins The R&A as a global partner of the Faldo Series which was launched by the six-time Major Cham-pion in 1996 and now ben-efits young people across the UK, Europe, the Mid-dle East, South America and Asia. Past winners in-clude current world number ones Rory McIlroy and Yani Tseng.

The JagorawiGolf Course

a complete different challenge for the golfer. The latest addition is a 9-hole layout designed by Jago-rawi’s founder and owner, Zakir.

The Jagorawi New course is said to be long and difficult. And maybe it is. However, with a choice of four tee boxes, players of every level of skill can find en-joyment in playing it. Twice the venue of the Indonesian Open, the new course is more open and wide. Long hitters can grip it and rip it here. The front nine is a nice exercise for what is to come on the back nine. Holes 11, 12 and 13 are definitely the score kill-ers where accuracy plays a more important role than distance. Thomson and Wolveridge creat-ed the new course with equally interesting but yet different lay-out than the Old course.

Next to the golf course, The Lodge at Jagorawi was built to accommodate golfers looking for quality accommodation in the vicinity of the golf course, as well as a stylish venue for functions of all sizes.

The Jagorawi New course is said to be

long and difficult. And maybe it is. However,

with a choice of four tee boxes, players

of every level of skill can find enjoyment in playing it. Twice

the venue of the Indonesian Open, the

new course is more open and wide.

The Jagorawi Old course is the dame of all courses in Indonesia and clearly it is a course that belongs to Asia’s top ten. The Old Course matured over a period of more than three decades into one of Asia’s most challenging courses.

www.jagorawi.com