their role towards nation building

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THEIR ROLE TOWARDS NATION BUILDING Stephanie Bschorr How the Association of German Women Entrepreneurs (Vdu) helps set the political agenda and why Germany needs them. Dr. Mien Uno Her view on the shortcomings of Indonesia’s education system and the importance of etiquette know-how today. THE MAGAZINE OF THE GERMAN-INDONESIAN CHAMBER OF INDUSTRY AND COMMERCE VOL. XXII / 2 / 2013

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Page 1: Their role Towards naTion building

Their role Towards naTion building

Stephanie BschorrHow the Association of German Women Entrepreneurs (Vdu) helps set the political agenda and why Germany needs them.

Dr. Mien UnoHer view on the shortcomings of Indonesia’s education system and the importance of etiquette know-how today.

the magazine of the geRman-inDoneSian chambeR of inDuStRy anD commeRce

VOL. XXII / 2 / 2013

Page 2: Their role Towards naTion building

CHICAGOTORONTO

NEW YORK

SAO PAULOBUENOS AIRES

WASHINGTON DC

LOS ANGELES

DUSSELDORF

DUBLIN

MUNICH

VALENCIA

PARIS

STOCKHOLMOSLO

RIGA

ODESSA

PRISTINAPODGORICA

SKOPJE

SARAJEVO

TIRANATHESSALONIKI

SOFIATOULOUSE

ROME

VENICE

ZAGREBTURIN

WARSAW

STUTTGART

ROSTOV

SOCHITBILISI

NURENBERG

PRAGUE

ZURICH

UFA

ST. PETERSBURG

VIENNASIMFEROPOL

NOVOSIBIRSK

NICE

NAPLES GANJA

LEIPZIG

MADRIDMALAGA

LISBON

MOSCOWMINSK

GOTHENBURG

LYON

KIEV

LEFKOSA

MILAN LJUBLJANA

LVIV

HAMBURG

HANNOVER

NAKHICHEVAN

LONDON

MANCHESTER

KAZAN

HELSINKI

GENOA

GENEVA

BILBAO

BREMEN

EDINBURGH

AALBORGBILLUND

BARCELONA

BUDAPEST DONETSK

BELGRADE

BOLOGNA

BERLIN

FRANKFURT

AMSTERDAM

BATUMI

BAKU

COLOGNE

BASEL

EKATERINBURG

COPENHAGENBIRMINGHAM

BRUSSELS

BUCHAREST

ATHENS

DNEPROPETROVSK

CHISINAU

ISTANBUL

SHARM

ULAN BATOR

ASTANA

ALMATYBISHKEK

OSH

TASHKENT

ASHGABAT DUSHANBE

KARACHIDHAKA

MUMBAI

NEW DELHI

HONG KONGGUANGZHOU

SHANGHAIOSAKA

TOKYOSEOUL

BEIJING

BANGKOK

SINGAPOREJAKARTA

HO CHI MINH CITY

KABULISLAMABAD

MALÉ

HOUSTON

NOUAKCHOTT

KIGALI

MOGADISHU

ALGIERS

CAIROALEXANDRIA

KHARTOUM

OUAGADOUGOUNIAMEY

YAOUNDÉ

ADDIS ABABALAGOS

ACCRA

DAKAR

NAIROBI

DAR ES SALAAM

CAPE TOWNJOHANNESBURG

ENTEBBE

TUNISTRIPOLI

MISRATABENGHAZI

CASABLANCA

ABIDJAN

KINSHASA

DJIBOUTI

SABHA EL-SHEIKH

HURGHADA

KILIMANJARO

MOMBASA

DOUALA

DUBAIBAHRAIN

YANBU

TAIF

TEL AVIV

SULAYMANIYAH

MOSUL TEHRANTABRIZ

MUSCAT

SHIRAZ

KUWAIT

RIYADH

SANAA

MADINAH

NAJAF

MASHADALEPPO

BEIRUT

AMMAN

ARBIL

ABU DHABI

JEDDAH

DOHADAMMAM

BAGHDADBASRA

DAMASCUS

ADEN

ISFAHAN

KERMANSHAH

turkishairlines.com | (021) 5795 7666 | [email protected]

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Jakarta_Sorotan Magazine.pdf 1 25.04.2013 14:04

Page 3: Their role Towards naTion building

CHICAGOTORONTO

NEW YORK

SAO PAULOBUENOS AIRES

WASHINGTON DC

LOS ANGELES

DUSSELDORF

DUBLIN

MUNICH

VALENCIA

PARIS

STOCKHOLMOSLO

RIGA

ODESSA

PRISTINAPODGORICA

SKOPJE

SARAJEVO

TIRANATHESSALONIKI

SOFIATOULOUSE

ROME

VENICE

ZAGREBTURIN

WARSAW

STUTTGART

ROSTOV

SOCHITBILISI

NURENBERG

PRAGUE

ZURICH

UFA

ST. PETERSBURG

VIENNASIMFEROPOL

NOVOSIBIRSK

NICE

NAPLES GANJA

LEIPZIG

MADRIDMALAGA

LISBON

MOSCOWMINSK

GOTHENBURG

LYON

KIEV

LEFKOSA

MILAN LJUBLJANA

LVIV

HAMBURG

HANNOVER

NAKHICHEVAN

LONDON

MANCHESTER

KAZAN

HELSINKI

GENOA

GENEVA

BILBAO

BREMEN

EDINBURGH

AALBORGBILLUND

BARCELONA

BUDAPEST DONETSK

BELGRADE

BOLOGNA

BERLIN

FRANKFURT

AMSTERDAM

BATUMI

BAKU

COLOGNE

BASEL

EKATERINBURG

COPENHAGENBIRMINGHAM

BRUSSELS

BUCHAREST

ATHENS

DNEPROPETROVSK

CHISINAU

ISTANBUL

SHARM

ULAN BATOR

ASTANA

ALMATYBISHKEK

OSH

TASHKENT

ASHGABAT DUSHANBE

KARACHIDHAKA

MUMBAI

NEW DELHI

HONG KONGGUANGZHOU

SHANGHAIOSAKA

TOKYOSEOUL

BEIJING

BANGKOK

SINGAPOREJAKARTA

HO CHI MINH CITY

KABULISLAMABAD

MALÉ

HOUSTON

NOUAKCHOTT

KIGALI

MOGADISHU

ALGIERS

CAIROALEXANDRIA

KHARTOUM

OUAGADOUGOUNIAMEY

YAOUNDÉ

ADDIS ABABALAGOS

ACCRA

DAKAR

NAIROBI

DAR ES SALAAM

CAPE TOWNJOHANNESBURG

ENTEBBE

TUNISTRIPOLI

MISRATABENGHAZI

CASABLANCA

ABIDJAN

KINSHASA

DJIBOUTI

SABHA EL-SHEIKH

HURGHADA

KILIMANJARO

MOMBASA

DOUALA

DUBAIBAHRAIN

YANBU

TAIF

TEL AVIV

SULAYMANIYAH

MOSUL TEHRANTABRIZ

MUSCAT

SHIRAZ

KUWAIT

RIYADH

SANAA

MADINAH

NAJAF

MASHADALEPPO

BEIRUT

AMMAN

ARBIL

ABU DHABI

JEDDAH

DOHADAMMAM

BAGHDADBASRA

DAMASCUS

ADEN

ISFAHAN

KERMANSHAH

turkishairlines.com | (021) 5795 7666 | [email protected]

Discover more than 220 destinationsworldwide with Turkish Airlines.

LIBREVILLE

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Jakarta_Sorotan Magazine.pdf 1 25.04.2013 14:04

Page 4: Their role Towards naTion building
Page 5: Their role Towards naTion building

Dear Reader,

this edition of SoRotan celebrates the role of women and their important contribution in the sectors of education, politics and business. in developing countries a lot of work remains to be done to eliminate gender discrimination and to provide women with equal access to jobs. nevertheless, indonesia has made lots of progress over the past half of a century.

the promoting of gender equality and women empowerment is goal number 3 of the eight mDgs and according to a 2012 World bank report, indonesian is on track to achieve its targets by 2015; the primary and secondary school enrollment ratio of girls to boys have achieved parity. minister of Women empowerment and child Protection, h.e. Linda gumelar gives us a clear picture of where indonesia stands in eliminating disparities, as well as in promoting women’s roles in key public and private organizations.

in our increasingly global business environment we get exposed to people from various cultural and ethnic backgrounds which demand that we consider differences in our dealings in every situation. indonesia’s leading expert on etiquette, Dr mien uno, gives us a look into her busy schedule and what indonesia’s education sector needs as we head into the second decade of this new millennium.

over in germany, Stephanie bschorr, the President of the association of Women’s entrepreneur association, talks about the stigma of working women in germany, on campaigning to achieve a better work-life balance and on being a women at the top of the organization al ladder.

in the fashion sector, two women share their unique stories with us. tumbu Ramelan, a batik observer who invites us to awareness and appreciation of batik, and fashion designer Lenny agustin. Dive into their colorful and artistic worlds and let them remind us all to follow our passion with great enthusiasm.

We hope that the articles and interviews we have collected for you in this issue will bring you up to date with what’s happening in the indonesian and german business scene. Let us hope that 2013 will bring another prosperous year for all of us

Jan H. Rönnfeld

Managing Director & Editor-in-Chief:

Jan H. Rönnfeld

Editor-At-Large: Maria Gracias

Reporter: Dennis Lischer, Iwan Sagi Nasution

Copy Editor: Dennis Lischer

Contributors: Adrian Nugraha, Annis Novianti, Citra Prameswari, Birgit Steffan, Daniela Gekle, Edo Yudanto, Kenzo Hadi Bangsa, Margareth Pohan, Natasha Kindangen, Prieta Perthantri, Rebecca Zimmermann, Silke Helmholz.

Translation: Dennis Lischer

Design & Layout: Bagus Ajie Mandiri

Illustration & Graphic: Bagus Ajie Mandiri

Digital Edition: Syafruddin Arief

Photography: Aam Muharam, Iwan Sagi Nasution

Advertisement: Anissa W. Kirana, Mei Tobing, Iwan Nasution

Production Supervisor: Andi A. Maulana

Print: PT Harapan Prima PrintingPublisher is not liable to any content printed in this magazine

Circulation: Iwan Nasution, Soebardji, Audya Christina

Digital Edition: http://indonesien.ahk.de/en/publications/media/sorotan/

Bank Details:Deutsche Bank, Jakarta000-5355-01-0 (Euro)CIMB Niaga BankJakarta, Menteng Branch202-01-00041-00-9 (Rp)

Next Issue: Next issue of SOROTAN will be published in September 2013.

THE MAGAZINE OF THE GERMAN-INDONESIAN CHAMBER OF INDUSTRY AND COMMERCE

F O R E W O R D

SOROTAN is published by EKONID (German-Indonesian Chamber of Industry & Commerce). © Copyright EKONID 2012. All rights reserved. SOROTAN is published quarter monthly, 4 times per year by the Publication together with Design & Communication Department of the German-Indonesian Chamber of Industry & Commerce. Copying for other than personal use or internal reference or of articles or columns not owned by SOROTAN without written permission of EKONID is expressly prohibited.Office: Jl. H. Agus Salim No. 115, Jakarta 10310 Indonesia.Tel. 6221-3154685, Fax. 6221-3155276E-Mail: [email protected], website: www.ekonid.comSubscription: If you wish to subscribe to the SOROTAN Magazine, please contact: [email protected]: [email protected] / [email protected]: The contributing writers to Sorotan magazine might be experts from various fields serving respective industry(ies) and/or sector(s) and providing opinion(s) and/or advice(s) to readers or users based on their individual specialties. The opinion(s) and/or advice(s) is/are the expert’s own opinion and/or advice and he/she is solely responsible for every single information, opinion and/or advice that he/she delivers to readers or users of Sorotan magazine. EKONID therefore does not accept any liability for and will not endorse and guarantee the accuracy and completeness of any material published herein.

Women Edition

Page 6: Their role Towards naTion building

C O N T E N T S

ECONOMY4 Room for Growth of Women SMEs

in Indonesia maRgaReth Pohan

EXCLUSIVE INTERVIEW12 h.e. Linda gumelar: Women Empowerment maRia gRaciaS

UP CLOSE & PERSONAL16 mien uno: Etiquette - A fundamental

ingredient to success DenniS LiScheR

NEWS IN BRIEF & HIGHLIGHTS20 News in Brief22 ASEAN Business Climate Survey

201323 2nd APEC Public Forum on

Services Sector in Surabaya24 Exploit 2015 ASEAN Market

26 Many ways to anti -macet28 Business delegations from

Germany

LEGAL30 Foreign Representative Offices

Under Indonesia’s Legal Framework

2

EKONID NEWS32 Human Capital Club34 Annual Members Meeting35 European Days36 Get Together37 Spargelessen38 Member News39 New Member

ENVIRONMENTAL40 Fish getting high from drug

waste?41 GIZ & Merck Waste Management

Project

CULTURE42 tumbu Ramelan: For The Love of Batik DenniS LiScheR46 EcoBatik Signature Collection48 The Story of Kartini50 Destination Indonesia52 Book Review

SoRotan eDition 2 / 2013

stephanie bschorr:

working Mothers, not a “rabenmutter”

8

The Rising Star Designer

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Suti

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COVERaam muhaRam

@ vDu

Page 7: Their role Towards naTion building

EKONID, the German-Indonesian Chamber of Industry and CommerceAs part of the network of German Chambers Abroad (AHKs), EKONID is officially mandated by the German Federal Government to promote trade and investment between Germany and Indonesia. EKONIDS’s corporate, institutional and private members are supported through a wide range of network and lobbying activities, especially towards ministries and other government authorities.

Founded in 1970, EKONID has today established itself as a reliable and competent provider of business services for its members and clients in both Germany and Indonesia. Its areas of expertise cover market entry, trade fair participation, event management, advertising and promotion.

EKONID is the official Partner of JERIN -Jerman dan Indonesia: www.jerin.or.id

Jl. H. Agus Salim No. 115 - Jakarta 10310 - P.O. Box 3151 - Jakarta 10031, IndonesiaTel.: +62-21 315 4685 - Fax. +62-21 315 5276 E-mail:[email protected] - http://indonesien.ahk.de - Find us on Facebook: AHK Indonesia

More than four decades of business networking in Indonesia

Page 8: Their role Towards naTion building

4SoRotan eDition 2 / 2013

Page 9: Their role Towards naTion building

and medium enterprises are now an icon in any

economy in the world. Why? according to recent oecD research, 95 percent of enterprises are Smes, which account for almost 60 percent of private sector employment. Smes played a remarkable role in the development of several countries, as they constitute a major part of industrial activity both in developed and developing economies. Looking briefly at Smes contribution in indonesia, the data points out that about 85 million or 96 percent of the total workforce in indonesia is employed by Smes. in terms of firm composition based on size, 99 percent of all enterprises in indonesia can be classified as Smes, contributing more than 50 percent to national gDP.

the same situation can be seen over in europe, where nine out of ten companies are Smes. they provide two out of three jobs, and they’re the driving force for growth, job creation and innovation. in germany, for example, Smes employ

rate also superseded the growth of Smes owned by males.

the rapid growth of the number of Smes owned by women is perhaps driven by the increasing level of education women have attained and by the economic pressures women face in their households. Due to poor employment opportunities for women, in indonesia, only 30 percent employment is available for female employees. yet the need to supplement family income or the desire to gain flexibility in their function as housewifes and breadwinners too, may have driven women to create their own source of livelihood. flexible working hours have encouraged women to take up an informal business while managing domestic duties such as supervising children, maintaining the home, etc.

in developing countries, including indonesia, women tend to take up business in a number of typical industries which have easy requirements in terms of capital, permits, and where

E C O N O M YD E V E L O P M E N T

SoRotan eDition 2 / 20135

Room foR gRoWthof Women SmeS in inDoneSia

“Limiting women’s economic potential is for every country like leaving money on the table. It doesn’t make sense, especially when we’re still struggling to grow our way out of the economic crisis.” - Hillary Clinton’s speech at 2nd APEC Women and the

Economy Forum, St. Petersburg, June 2012.

50,000,000 NATIONAL ENTREPRENEURS

98.9% MICRO ENTREPRENEURS

39 MILLION WOMEN ENTREPRENEURS

Source: BPS-Statistics Indonesia

m a R g a R e t h P o h a n

between one to 500 people with a turnover of up to € 50 million. in 2009, the figures were as follows: 3,585,000 Smes (12,500 large companies), 99.7 percent of all german companies, employ 60 percent of all german employees, train more than 80 percent of all apprentices, but produce only about a third of the german gDP.

behind the important part Smes play, the role of women is a major driving factor, as women-owned Smes make up a growing share of both formal and informal sector businesses worldwide. Within the asia Pacific region, in 2007, the growth of women Sme owners has become increasingly evident, with 35 percent of all Smes being headed by women. What’s particularly special, is that indonesia tops the list with the largest number of women Sme owners among asian countries; and the number keeps on growing at an incredible rate: from only 357,000 Smes in 2002 to over half-a-million Smes in 2007. this growth

SMALL

Page 10: Their role Towards naTion building

or as a means to survive. the micro businesses are driven by poverty. the indonesian ministry for Women empowerment is working together with the ministry for cooperative and Smes to promote various initiatives in women entrepreneurship empowerment, in particular women entrepreneurs in rural areas, as they may actually contribute significantly towards the alleviation of poverty.

Women, however, do not always set up Smes out of reasons of necessity, but often by choice. in urban areas, the establishment of Smes run by women can be quite various. a recent survey of 100 women entrepreneurs in some cities in indonesia revealed that the motivation of women for creating their own business is much more related to flexibility rather than poverty. the women surveyed appear to prefer to do business instead of earning wages as employees or as a positive activity in addition to traditional domestic work. yet the form of the business remains the same, namely as micro businesses.

PASSION DRIVEN ENTREPRENEURSHIPin terms of sectors, as mentioned above, Smes owned by women are frequently found in the area of f&b, handicraft, and clothing/leather. it can be seen from various awards given to indonesian women entrepreneurs recognized by their achievement. if it is not f&b, handicraft and clothing/leather, then it is most probably in the service sectors, such as communication firms or event organizing businesses.

the lack of variety in women’s businesses is due to the preference to do pick an easy entry business. these businesses

no complex technical know-how is needed. these include the sectors f&b, handicraft, and clothing. in f&b, women owned Smes make up more than 30 percent of all Smes, while the textile, garment and leather industries show similar figures.

CONNECTING THE MISSING LINKS IN IMPROVING THE ECONOMYWhen talking about Smes owned by women, we conjure up the idea of women as entrepreneurs. the idea is not just about gender-based ownership of a company, but also about how women may take very important roles in transforming the economy as a whole and in transforming lives. Why women? Women now represent 40 percent of the global labor force, 43 percent of the global agricultural workforce, and more than half of the world’s university students. the united nations estimates that the asia Pacific economy would earn uS$ 89 billion annually, if women were able to achieve their full economic potential. at the moment, there are nearly 6 million formal, women-owned small businesses in east asia, and in indonesia these business are increasing and growing at a fast rate.

the facts above connect the links, revealing how important it is to create initiatives that empower women, in particular in terms of Sme development. Women from low to middle income countries were more likely to enter early stage entrepreneurship to the fact they often seek an additional means of income to support themselves and their families. in developing countries, Smes run by women are mostly micro businesses run by poor households or individuals who are unable to find better job opportunities elsewhere,

E C O N O M YD E V E L O P M E N T

will provide additional income, require low capital, have flexibility in terms of time, and require no specific education or training. Some other reasons include the enormous population, a rising middle class, the expansion of major cities in indonesia, which are reasons for why more and more women are attracted to provide products/services for end user consumers. these opportunities allow women to combine their passion with market opportunities and demand.

Women entrepreneurial activities are motivated primarily by personal’s passion and the inclination to pursue something they enjoy. the encouragement usually comes from their own circle of acquaintences and networks, such as family and friends. they then lead the start up on a part time basis before considering to transform it into a more serious business.

A MOMENTUM FOR MORE ROLES IN THE CREATIVE INDUSTRIESPassion as primary motivation leads most women entrepreneurs to play important roles in the creative industry. the creative industry, globally, has experienced tremendous growth, with at least 5 percent annually. in 2007, a study by the indonesian ministry of trade found that the creative industry in indonesia can be classified into 14 subsectors, i.e. advertising, architecture, art goods market, crafts, design, fashion, video film photography, interactive games, music, performing arts, publishing and printing, computer services and software, television and radio, research and development. in 2012, the ministry of trade added an additional subsector, namely businesses related to culinary/cuisine.

With more than 1,000 ethnicities in indonesia, women shoud be inspired to explore business opportunities in the creative industry. unctaD data shows that the creative industry in indonesia contributed 4.7 percent to national gDP in 2006, which grew to reach 7.3 percent in 2008, creating almost 4 million job opportunities. Significant developments have been experienced by the fashion industry, which is the second largest contributor following culinary/cuisine business. Data from 2010 shows that the fashion industry grew by 5.6 percent in 2012. obviously, the fashion business can

6SoRotan eDition 2 / 2013

Backed by Gov’t, Indonesian women will have many new opportunities with the design of the “Indonesian Fashion Industry Blueprint”

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Page 11: Their role Towards naTion building

give more room for women to explore opportunities to create businesses.

in the fashion business, the indonesian government has set a roadmap aimed at making this country as one of the world’s leading fashion hubs by 2025 and as a springboard to accelerate economic growth. the growing middle class and positive economic growth is the backbone of this target. the plans were outlined by the indonesian fashion Designers association (aPPmi) and several ministries to coincide with the second indonesia fashion Week last february.

government initiatives have been implemented under coordination of the ministry of culture and tourism, ministry of trade, ministry of industry and ministry of cooperative & Smes, who are now in the midst of developing “indonesian fashion industry blueprint”. Soon, the blueprint will map the actions to be taken from all stakeholders in the fashion industry i.e. designers, manufacturers, raw material suppliers, retail associations, and fashion associations to achieve the dream of turning indonesia, in particular Jakarta, into a global fashion center as competitive as Paris or milan.

meanwhile, the cuisine/culinary subsector, as a new subsector within the creative industry, is regarded as being the most potential market for Smes, in particular in capturing women’s passion in f&b. business development of f&b in recent years has experienced significant growth, in particular due to indonesia’s growing population and its strengthening economy. a wide range of f&b products requires innovations and variations that create more and more market in this area. as many women have passions in the area of culinary arts, they should seek out opportunities in this subsector. indonesia’s culinary industry should really be paid attention to. for instance, Rendang Padang and fried Rice have been included as world’s best flavor cuisine, based on a survey conducted by cnn news. the culinary industry has a very important position that unfortunately, up to now indonesian culinary compared to Japanese, chinese, thai cuisines is still not that

SoRotan eDition 2 / 20137

popular overseas. there is more rooms for indonesian women to create business and develop Smes in culinary sectors.

CHALLENGES AHEADalthough there are enough rooms for growth and innovation, obstacles faced by women who own or run Smes are mostly competitiveness. in this terms government initiatives are still very lack if compared to best practices in other countries. Working capital and marketing difficulties kept the Smes as only a means for survival or in the forms of micro business without structured plans for expansion and growth. Working capital is related to access to finance for women. in indonesia, ownership rights such as property ownership are commonly males as head of family, and the culture/religious value give men rights as the owner and inheritor of family assets. meanwhile it is difficult for women to equip themselves with collateral in order to access financing programs/loans from the bank.

Women involvement in the creative industry requires a knowledge based economy in which human capital will determine the competitiveness of Smes in the market among other factors. creative industry brings working flexibility, where women will not necessarily work at the office or production sites, but also can be done from home. Women who want to develop Smes in the creative industries will face challenges such as human capital development, facility and financing. Smes who have experience in how to run a business should be given capacity building in modernization and scale up capability. in these areas of development, more and more initiatives

from government and private sectors (for instance banking and financing institutions) are needed.

We can find some awards given to women entrepreneurs each year for instance femina, ernst & young, etc, and it should be seen as a progress of awareness raising for appreciating women who are dare to be innovative. these kind of awards also have been done in many countries for instance in canada, the canadian Women entrepreneur of the year awards honors women in range of categories. but best practices are needed beyond awards and appreciation.

Some best Practices in initiatives programs in other countries may be a reference in making future programs. for instance, access to capital for women entrepreneurs initiated by Korea’s Sme Development fund and the u.S Small business administration’s Women Prequalification Loan Programs. access to training & education was initiated by australia’s national Women’s vocational education and training Strategy and the Philippines Department of trade and industry. access to network and market was provided by canada’s minister of trade while Korea as a result of its “act on assisting Women entrepreneurs” has established a Presidential commission on Women entrepreneurs. these initiatives must take place to support women’s entrepreneurial activities.

E C O N O M YD E V E L O P M E N T

The cuisine/culinary industry has the most potential market for SMEs, particularly in capturing women’s passion in F&B.

Margareth Pohan – is an Economist currently working at a global consulting firm. She has extensive experience in development projects, having previously worked in the areas of poverty & good governance. She’s also an associate at the Center of Election and Political Party (CEPP) University of Indonesia, where she pursued her Master’s of Economics in Planning and Public Policy and her Bachelor’s degree in Political Science. [email protected]

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Page 12: Their role Towards naTion building

tell us a little bit about your background?

i grew up in cologne, germany, and went to law school in Würzburg, munich and berlin. i have a master’s degree in Law and i’m certified as a tax adviser, specialized in international tax law. today, i am a partner and managing director of htg Wirtschaftsprüfung gmbh and htg Rechtsanwaltsgesellschaft mbh (auditing, tax consulting and law) in berlin with 70 employees. i have two children.

What is your life motto?

you only live once, but if you do it right, once is enough.

What’s it like to be a woman entrepreneur in Germany? Do you feel any discrimination from your male colleagues? What differences exist in comparison with other European countries?

We are still not many. Just because of this we are somehow special. With my international clients i do not feel any discrimination. it’s only with some very old-fashioned clients that i have the impression that in my still male-dominated business field some still prefer male advisers. in germany – as in europe as a whole - i sometimes observe a divide between the northern and the Southern regions. in the South, traditions seem to be a bit more long-lasting than in the north of germany.

You said there are no gender issues at your company (HTG Wirtschaftsprüfung), what does it mean?

in our company nobody is being treated or paid differently due to their sex, religion, ethnicity, or whether they come from the eastern or Western part of germany (which is truly and sadly still an issue in some companies).

How about your business? Did you have any unpleasant experience being a woman holding top position in the company? Any pros and contras?

as mentioned before, i sometimes experience that some clients prefer a male adviser. other than that, i haven’t personally experienced any unpleasant forms of prejudice or discrimination against myself as a female adviser. on the other hand, i have also worked with women entrepreneurs who specifically liked to work with a female consultant.

Speaking about VdU, why does Germany need an organization which caters specifically to women businesses / entrepreneurs?

vdu is the only business association for women entrepreneurs in germany. this has been the case ever since vdu was founded in 1954. especially whenever we are convinced that the opinion of female entrepreneurs needs to be heard on a specific topic, we speak up: for a quota for supervisory and

Not a “Rabenmutter”Stephanie Bschorr has been president of the Association of German Women Entrepreneurs since 2012. She campaigns for quotas to put women in the boardroom and for men to take over more of the task of raising children in the family. She also runs her own business, a Berlin auditing agency.

Stephanie Bschorr

CAN YOU

m a R i a g R a c i a S

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P E R S P E C T I V EE N T R E P R E N E U R

governing boards, on questions regarding company taxation or when it comes to the expansion of educational facilities in germany. We are proud to say that we are part of setting the political agenda in germany. oftentimes, the economic potential of women entrepreneurs is still being highly underestimated. the 1,600 women organized in vdu alone are responsible for an annual turnover of € 85 billion and are employers to half a million employees. We want to make this economic strength even more visible.

the fact that gender equality has not been fully installed in germany is also evident in the fact that our network is still growing. even 60 years after vdu has been founded, there are still parts of our society and economy in which women entrepreneurs are treated differently than their male counterparts. this ranges from getting a bank loan to getting a board position. as long as our members keep reporting these cases of inequality, vdu will be an active and necessary network.

more and more women realize that networking helps them to increase their companies’ success. in a network you readily get information that you usually would have to accumulate in a lengthy process or get information you would otherwise not have access to at all. from my experience, i would say that a women’s network does not differ much from mixed networks. the only difference i observe on a regular basis is that women also communicate what is not going so well in their businesses – when among themselves. that is something i have not experienced so openly in mixed networks.

Vdu set up a data base of more than 500 highly qualified woman entrepreneurs and managers. Why?

the percentage of women on german governing and advisory boards is still very low. Despite a voluntary commitment of the Dax companies in germany that has been effective for the past twelve years, not enough progress has been made in recruiting more women for board positions. one of the most frequently quoted reasons for this is: there simply are not enough qualified women in germany who could fill these important positions. therefore, vdu has installed a database to make highly qualified professional women more visible. We currently have more than 600 profiles of women in this database who would be willing to take on a board position. companies looking for a suitable female candidate can get in touch with us, tell us their requirements, and we’ll match their request with a woman entrepreneur or manager from our database.

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The parliament rejected the opposition bill which would have set a 40 percent quota for woman on corporate boards, starting un 2023. Any comments on this? Do you feel disappointed?

at this point the term disappointment does not exactly grasp how i feel about the quota in germany. vdu has been advocating a 40 percent quota for women on boards since 2008. We are convinced that in order to get more women in top positions in germany, drastic changes are necessary. the slow, yet steady, progress needs a jump start to finally reach at least the critical mass of 30 percent women on boards – and, of course, on all levels of the hierarchy in companies. therefore we need a quota. i do observe, however, that talking about a mandatory quota in germany has already sparked a lot of movement. not enough, that is for sure, but i am convinced that the next elections in germany will also bring about a positive decision in terms of a mandatory quota.

Regarding the rejection over the 40 women quota- which was shocking for many developing countries given the fact that Germany is one of the most advanced countries in the world. Does the decision have anything to do with the German culture or society?

on the one hand, there is a lot of resistance in germany against the fact that politics should dictate an entrepreneur’s decision in how to run his or her enterprise. overall, i would generally agree with this. however, when it comes to the representation of women in top positions, we are talking about a matter of gender equality and not mere

entrepreneurial freedom. What seems to be another hindrance is the still omnipresent corporate culture that the employee who spends as many hours at work as possible is the most productive employee. that this is, of course, not the case, has been proven by many case studies. the issue of managing to have a professional career and a family is still more difficult for women than for most men. We need to make a lot of progress in germany to ensure a better work-life-balance for women (and men).

What is the stigma of working woman over there?

Women are especially stigmatized when they’re working mothers – even worse if they’re also pursuing a career. the term “Rabenmutter” (uncaring mother) is unique in germany. therefore, our society needs to work towards a less stigmatizing way of treating working mothers (and fathers). it needs to be perfectly normal and acceptable to have children anD a career – for men and women alike. i think that a lot of the family values are deeply rooted in our german history and culture. thus, these changes do not happen overnight. We need a much better childcare system in germany with a better infrastructure and better conditions to help parents manage both: a fulfilling family life and a successful professional career.

“We need to make a lot of progress in Germany to ensure a better work-life-balance for women (and men).”

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SoRotan eDition 3 / 201211

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12SoRotan eDition 2 / 2013

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E X C L U S I V EI N T E R V I E W

SoRotan eDition 2 / 201313

h.e. LinDa amaLia SaRi gumeLaRMINISTER OF WOMEN EMPOWERMENT AND CHILD PROTECTION OF THE REPUBLIC OF INDONESIA

important is female leadership in business and

in government throughout the world? What about the gender gap issue?

During last year’s islamic organization conference (oKi), which happened to take place in indonesia, several participating countries were surprised to learn of indonesia’s openess in many aspects, including religious diversity. they saw indonesia as being synonymous with female indonesian migrant Workers (locally known as tenaga Kerja Wanita/tKW) – believing our nation’s long struggle towards independence would not allow our country to be the moderate and modern one that it is. in the agreement called the Jakarta Declaration the issue of gender equality is mentioned as well. gender equality appears to me to be a strong commitment shared among islamic countries. in Saudi arabia, too, they’re already starting to open up nowadays.

“Gender equality does not mean that men and women become the same. Each has its quadrant. People often see gender equality as being a novelty, something liberal, influenced by the West. This is a misunderstanding.”

the current state of gender equality is understood as an equal condition for men and women in that they‘re granted equal opportunity and access as individuals in their role and participation, in controlling, and in benefiting from advancement in all life areas. i feel indonesian women today have truly fathomed that their role is not limited to the domestic realm, but that it also extends to various areas related to developing and advancing our society and nation. thus, everything related to female leadership, whether in the world of business or government needs to be flexible, transparent and democratic. in other words, we’re fostering the creation of what’s referred to as “shared values”. everything is placed in its proper proportion, taking into account gender responsiveness. although the main task may differ, the aim and reference value stays equal.

What are the main character differences when comparing Indonesian women and their counterparts in other developed countries such as in Europe or the US?

When discussing the topic of indonesian women, we need to look back on indonesia’s history. the nation’s many heroines played a significant role in the struggle for independence from Dutch colonial power. they have courageously and steadfastly fought for self-empowerment and for empowering those around them. in this regard, indonesian women are much further ahead. indonesian women are individuals of strong character. they possess commitment, courage, independence and have a sense of mutual self-help. Women in other countries lack in this area. frequently, the gentleness of indonesian women becomes their weakness. i call it a cultural weakness. it has been observed to hamper female development at times; for instance, an inability for

EMPOWERMENT

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women to fully express hemselves when they should actually play the role of “partners” alongside the opposite sex. When comparing indonesian women with their counterparts in other countries, i feel the biggest difference lies in the competence of scientific knowledge. our friends in those countries already have access to better education opportunities.

“education and advancement in Science and technology is the fundamental asset indonesian women need. all character traits indonesian women possess should be augmented through education.”

There are many examples of successful SMEs run by women. How significant is the role of women in contributing towards the national economy?

Women play a significant role in contributing towards nation building. Statistics show that 60 percent of Smes are run by women. i think, as indonesian women become more aware of economic matters within the family domain, their chances of developing as seeds of

entrepreneurship grows. the economic crisis has had an indirect impact in igniting the spirit of entrepreneurship among women in their effort to achieve financial independence for themselves and for their families. it also needs to be stressed that from a creativity standpoint, women are seen as being more observant in recognizing business opportunities than men. What men consider as a non-promising business venture, later often turns out to become a profitable and successful one when run by women.

Welfare for women and children in several regions in Indonesia lack equity. There are still many children and women – especially those living in less developed or remote areas, who live with unhealthy conditions, poor education facilities, and security. What forms of social security can the Indonesian Government provide?

Social security which the government provides within the framework of the ministry of Women empowerment and child Protection is the implementation of gender mainstreaming in three

development issues, these are: improving the quality of living standards and the role of women in nation building, raising the protection of women through various preventive, empowerment, and public service efforts, as well as by expanding institutional capacities for gender mainstreaming, women empowerment and child protection.

one breakthrough in providing protection for children that is being done by the government is by establishing an integrated Women empowerment and child Protection center, which has become a reference for various working partners and a place to obtain services such as mentoring, counseling, legal advice, medical treatment, and a shelter for victims, all at no cost. currently, the maternal mortality rate in indonesia is 228 /100,000 births. Santiary problems also are a concern as it plays an important role in health and child development. We have sent medical staff and nurses to the medical centers within the network and we have also provided seminars on preventing immature marriages and on family planning. but we need to remember

“Not to aim for dominance, but rather to raise self-reliance and internal strength.”

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E X C L U S I V EI N T E R V I E W

that in today’s era of regional autonomy, regulations exists which say issues related to children and women are under the regional government. the central government’s focus lies more in facilitating and advocacy.

Are there plans to raise compulsory schooling from a minimum of 9 years to 12 years?

twenty percent of the state budget has been allocated to the education sector. compulsory 9 year schooling is a pro-people program which at this time is still reserved to primary education. in reality, the compulsory 12-year program has already been attempted this year. it has also been implemented to achieve the targets set in the millennium Development goals agenda by 2015. in fact, several regions such as Pontianak in West Kalimantan have commenced the 12-year compulsory education program. We’re looking forward to receiving good feedback on the positive impact of the program.

What about the problem of child labor?

of course, these children choose to work in order to meet their financial needs. concerning this problem, we’re working on the issue of poverty eradication. there are 30 million people who need to be taken out of poverty. but what needs to be noted is that alleviating poverty isn’t only the government’s responsibility, but each member of society plays an important role. it’s not always that the child wants to work, but rather that he or she has to work to support the family. Data shows that there are fewer boys at the secondary level, which means that there are still many within this age group who are working to earn money.

that in the disadvantaged regions education is still difficult to access. We are taking a pro-active approach in that we empower Smes and women organizations that care about education issues to monitor these things.

What about access to healthcare? It seems the Indonesian government still relies heavily on foreign donors working through a number of NGOs. What obstacles exist and are the funds from the central government not sufficient? How important is the role of foreign aid in supporting the welfare of Indonesian children?

it cannot be denied that health remains a challenging area for us. Several conditions are at the root of this: regional disparity in target achieving still occurs which reflects discrepancy in medical treatment, particularly in remote and poor areas; the lack of knowledge, attitude and awareness of communities in using medical treatment. for instance, there is very little information being received by poor women which causes them to have a poor understanding of the importance of health. this, of course, has a direct affect on the low awareness on reproduction. it is this knowledge on reproduction health that is taking a second place priority when women have to focus on working to support their livelihoods. moreover, we cannot deny that the limited budget and the issue of responsive gender also cause obstacles. We do not reject assistance from other countries because we do not want to be “bound” by the regulations that come with the aid. We are at a point where we must run these programs ourselves.

The German government, through GIZ, supports KPPPA and its programs including the promotion of gender equality. What type of cooperation is foreseen for the future?

the cooperation will definitely be intensified. We have proposed german-indonesian cooperation opportunities in 4 strategic areas; cooperation in the area of health, education, economy and social sciences, including women empowerment. the cooperation will, of course, not be limited to g2g, but

also involve partnerships with ngos. hence, innovative steps for stronger cooperation will be needed as well as breakthroughs to drive strategic and comprehensive partnerships of german-indonesian bilateral working cooperations.

How do you see Indonesian women developing 10 years from now?

in the future, indonesian women will become increasingly more independent in various areas of development. We also forsee that gender equality will be fully installed. indonesian women will need to empower themselves more, especially in terms of financally supporting themselves. the disappearance of the negative stigma, which sees women as an economic burden, is expected. our women will start to realize their potential to benefit from their efforts in advancing our society and they’ll become figures that are confident, aware of their roles, and independent in making decision.

i also hope that the role of women as economic practitioners will be augmented, and that their productivity will increase so that their self-confidence will improve and so that they’ll stand on equal grounds with men. as indonesian women become more aware of the importance of empowerment, the aim is not to achieve dominance between one gender over the other, but rather to raise self-reliance and internal strength. thefore, we hope that women’s rights in making important life decisions will be realized and will influence change with their ability to control resources in various areas related to nation building.

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to mien uno, indonesia’s foremost

expert on etiquette and six times bestselling author on the subject, action c would be the best solution to the dilemna. it seems like a trivial situation, however, mien believes that people who are observant of etiquette have a distinct advantage over those who don’t.

“etiquette, are a set of procedures on how to conduct ourselves gracefully in living peacefully with our fellow beings, whether in social situations or the workplace. not to be confused with ethics this is our philosophy as seen from a cultural, moral, and religious perspective. you can say that etiquette is the operating mechanism that is rooted in ethics,“ mien said.

mien believes that etiquette is still relevant today as it deals with three fundamental determinants of success in life: our personal image, the way we communicate and how we should carry ourselves in all kinds of situations.

“i’m quite sure it’s never obsolete because though times have changed. in today’s business world we are required to interact with people from every corner of the globe, many of them possess different ethnic, cultural and religious backgrounds. failure to recognize the unique customs of the people we’re doing business with can be detrimental. and etiquette can be our guide.”

“take the advantages of the technological features that come with mobile phones, use them wisely, and see how much time and energy you can save with them,” mien said. “in my book ‘etiket – Success membawa Diri di Segala Kesempatan’ (etiquette – Successfully carry yourself at all opportunities), i list the do’s and don’ts of using mobile phones in public areas. many people gossip or announce to the whole world private matters and then wonder why people have wrong perceptions of them.”

mien has written numbers of etiquette books including ‘etiquette hijau’ (green

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UP-CLOSE & PERSONALM I E N R . U N O

as the keynote speaker wraps up his presentation, the participants seated at the round-tables give in to the tempting aroma of the bread and butter appetizer. among them, a gentlemen is seen reaching for the bun on his right. as he starts buttering it, the lady sitting to his right is left with this dilemna: Should she, a let the gentlemen know he has taken her bun by mistake and risk embarrassing him in front of the other participants; b - take the bun on her right hoping its owner fails to notice; or c - sit calmly until the waiters bring out another serving?

Etiquettea fundamental ingredient to success

etiquette), listing 300 tips on being good to the environment and saving money doing it, as well as an etiquette book for teens. With more than 30 decades of experiences, mien has delivered trainings not only for individuals but also to government and numerous private organizations as well as indonesian embassies throughout the world including in australia, the uS, Russia, england, norway and the netherlands.

although she thinks proper etiquette know-how can be acquired later in life, she does believe learning to love order should start at home. “it has always been a priority for me to make sure things is being returned to their place. Just imagine a toothbrush being left in different places after use,” she says on being asked where her passion for etiquette came from.

born in indramayu, West Java on 23 may 1941, the sixth of eight siblings, mien came from a well-educated family. her father was a teacher, and her

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brother, arief Rahman is a well-known indonesian scholars. She credits much of her success to her parents whom she considered very open-minded. “my father pursued education in holland while my mother went to a women-only school in Salatiga. they taught me to love order, critical thinking, discipline and how to be independent.”

in her opinion, most of indonesian public schools have an unfocused curriculum made up of a wide range of subjects, which doesn’t identify the unique characters each individual student. on being asked what shortcomings the indonesia’s education sector has, she cites the system lack of focus as being a major problem.

“indonesia’s education sector is very unclear in determining the purpose of the education itself. the numbers of subjects in schools, especially at the elementary level, is just too many. it’s

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UP-CLOSE & PERSONALM I E N R . U N O

very different in developing countries like Japan and finland. also, our system doesn’t recognize that every child learns things a bit differently. Some learn faster through visual perception, others by experiencing, and still others from auditory perception. ’the one-Size-fits-all approach’ makes a lot of students frustrated in school. they start to hate school and their teachers. today’s problems, such as student brawls and involvement in motorcycle gangs, are the result of the students’ frustration and stress at school. School has not become the solution, but in a sense it has accelerated the problem.”

MIEN ALSO IDENTIFIES A MAjOR FLAW WITH THE COUNTRY’S EDUCATORS “first and foremost we have to increase the quality of living of indonesian teachers before we demand commitment and quality from them. the quality of our teachers is still very low in comparison to their counterparts in Singapore, malaysia, Korea, and finland. most of our teachers become teachers to make a living, not because of a passion to educate. this is the root problem that we have to address first. if they are not passionate about being educators, their students won’t learn

Give them a fish, and they’ll eat for a day. Give them a fishing rod, and they’ll eat for a longer time. Teach them how to make a fishing rod, and they’ll provide for the livelihood of many.tagline from MRUF Alumni Book

much from them and even hate their teachers. and the education process will fail,” said mien who held master’s degree in education administration from the institute of education and teaching Sciences faculty of education.

mien uno is taking a hands-on approach to solving the problems of the education sector in indonesia. She believes that higher education is an important phase in the process of creating qualified human resources. With support from family, she established the mien R. uno foundation (mRuf) which aimed to achieve a well-educated young generation and to create young indonesian entrepreneurs. through numbers of scholarship programs and trainings, mien hopes to give indonesia’s young generation the necessary help to get a good education that will be useful in the future.

“mRuf focuses on two main programs, namely mRuf entrepreneurial Student Scholarship Program called mien R. uno foundation entrepreneur Development Scholarship for youth (mRuf envoy), and micro finance and empowerment Program. its vision is to help realize indonesia’s aspiration of becoming a self-reliant society by investing in the younger generation. by enforcing education amongst the

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younger generation and by increasing the number of entrepreneurs from indonesia’s educated youth through scholarship program and trainings, and by facilitating early stage entrepreneurs in the category of micro and small enterprises to develop, through training, monitoring and funding.”

She also leads Duta bangsa institute of Learning as its President Director. Prompted by her vision to equip students with a positive self-image by developing their “global citizen image”, Duta bangsa institute of Learning was established as an education center focusing on personal development. the institute, which she currently heads with commissioner anita Ratnasari chairul, aims to give birth to and develop indonesia’s human resources who are able to compete on the world stage.

nevertheless, the 72-year-old admits that despite one success in career or education, family role and supports remains the most important thing.

“i feel sad when i my students say that they are not leaders, only housewives. When you are a housewife you are automatically a leader. you lead the children, the people working in your household. but first you must be a

leader for yourself, “mien shares about the poor self-image many housewives attending her trainings.

With full support from her husband, Razif halik uno-now a retired petroleum expert, mien proved that balancing career and family life is possible and passed on their values to their two sons, indra c. uno and Sandiaga uno. indeed, the grandmother of four can be proud of her success as a mother. her youngest son, Sandiaga uno is the raising businessman who doubt as one of the richest man in asia by forbes magazine.

in her 70s, mien uno is showing no sign of slowing down. She continues to work to promote education and etiquette through her foundations. She lectures to top-executives in private and state-owned enterprises on how to come out graceful in business networking events, gala dinners, public speaking situations and other kinds of tricky social and business situations. She is also active as a regular columnist for numbers of women magazines. She has been presented with various professional honors, most recently “Kartini award 2012”, “bakti Karya nusantara 2010” and “ernst & young entrepreneur of the year 2010 World Judge in monte carlo. She was also the winner of the “image

of indonesian Women 1994 award from Peraga indonesia.

Women in indonesian cultures, particularly those of Javanese and Sundanese cultures, are traditionally encouraged to practice gentleness and submission to males. although society accepts these character traits, mien has observed that this “cultural weakness” can also be counterproductive for indonesian women, as it prevents them to be assertive and to express themselves fully in the workplace. for this reason, mien uno is, perhaps, a well-needed role model of for indonesian women, because as she stated in her book ‘menjadi Wanita indonesia’, “the most important thing is how to control or handle yourself.”

“I feel sad when my students say they’re not leaders, just housewives. When you’re a housewife, you are automatically a leader. You lead the children, the people working in your household. But first you must be a leader for yourself.”

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has appointed its investment coordinating board chief, chatib basri as finance

minister, replacing agus martowardoyo, who now is named the new governor of central bank of indonesia.

experts say basri faces investor concerns over slowing economic growth, and sizeable current and capital deficits, as the government has repeatedly failed to deal with hiking fuel subsidies which are taking away money from desperately needed infrastructure projects to encourage long term investments.

Prior to basri’s election as finance minister of the Republic of indonesia, chief economics minister hatta Rajasa has been acting as finance minister in the interim. basri became chief of indonesia’s investment coordinating board in 2011, following gita Wirjawan’s appointment as indonesia’s minister of trade. earlier, basri served as a special adviser to finance minister Sri mulyani indrawati, who has since taken a top World bank post.

new finance ministerChatib Basri

in July 2013, the indonesian government will limit subsidized fuel sales to a

reasonable limit by utilizing information technology systems. according to Deputy minister of energy and mineral Resources, Susilo Siswoutomo, the restriction will be imposed in stages in accordance with progress of monitoring devices installations.

based on the ministry`s calculations, a motorcycle reasonably needs 0.7 liter of fuel per day, and a private car around three liters daily.

a vehicle owner is allowed to buy fuel during a certain period, for instance once a week. by imposing the restriction, the government hopes that subsidized fuel sales won’t exceed the quota which has been set by authorities.

as part of the limitation plan, state owned oil and gas company Pt Pertamina will install information technology-based devices called RfiD tags in approximately 100 million vehicles and 5,027 gas stations throughout indonesia. the installation will be carried out in stages and will take one year, from July 2013 to June 2014.

FUEL SUBSIDY LIMIT EFFECTIVE JULY 2013

Indonesia remains attractive to oil and gas investment

Sby has convinced industrialists that indonesia remains attractive

to oil and gas investment. the President made the statement during his opening remarks at the 37th indonesia Petroleum association (iPa) convention and exhibition at Jakarta convention center last month. “i’d like to convince you that indonesia remains an attractive country for both domestic and foreign investors to invest in oil and gas upstream sectors which are full of risk, solid in capital and technology,” President Sby said.

Sby noted that geopolitically, there has been a shift in the area of energy use, adding that europe was the biggest energy consumer in the past but now the statistics show that the asian region, whose economic growth continues to develop, has taken europe’s place. further, he added that the government in the long term has had a blueprint to speed up oil and gas industrial development through the implementation of the masterplan for acceleration and expansion of indonesia`s economic Development (mP3ei).  (mP3ei). [antaRa]

N E W S I N B R I E FG E R M A N Y - I N D O N E S I A

Indonesian aircraft goes to ASEAN

owned aircraft maker Dirgantara indonesia is promoting its latest line of aircraft six

aSean countries including brunei Darussalam, vietnam, myanmar, thailand, malaysia and the Philippines. among the aircrafts were the cn295, the cn235, and the n212i.

“We offered a number of military defense industry products including the cn295 model, which was produced through a collaborative effort between Dirgantara indonesia and airbus military,” said budiman Saleh, the Director of commercial and Restructuring Dirgantara indonesia.

During the so-called aSean Road-show, the West Java based aircraft maker is working closely together with the indonesian Defense ministry.

INDONESIA

PRESIDENT

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N E W S I N B R I E FG E R M A N Y - I N D O N E S I A

should possess a sense of pride when it comes

to domestic products,” says indonesian minister of trade, gita Wirjawan. Speaking at the opening of Pangan nusa (archipelago food) exhibition and the Regional Domestic Products exhibition on 10-13 may 2013 in Pontianak, West Kalimantan, the minister affirmed that indonesians must realize that consuming local products is a key to economic development, which will lead to welfare for the people of indonesia.

“When indonesian consumers are happier buying imported products, the ones that will reap the most benefits are foreign producers of the products aboard. our money will flow out of the country without any benefit to our local economy.”

the minister, however, disapproved cynical views that label domestic products as being of an inferior quality compared to their foreign counterparts. “that is a false perception due to lack of knowledge and awareness of the quality of indonesian products. the potential of our domestic products are extraordinary,” he asserted.

the 2013 Pangan nusa exhibition and Regional Domestic Products exhibition were held with the aim of fostering the domestic industry through market access facilitation, promotion of superior products made by Smes, expand the marketing network among participants and local trade missions. “in short, the government will help to make our products competitive in the domestic, regional and global markets,” the minister added.

minister Wirjawan believes that indonesia possesses immense potential which has yet to be cultivated to reach greater possibilities. “i hope we’ll see the emergence of local entrepreneurs who are going to create lots of jobs.”

SoRotan eDition 2 / 201321

“Loving Indonesian Products Key to Indonesian Welfare”Trade Minister Gita Wirjawan

new federal states are not on par in

internationalizing their industrial companies,” managing Director of DihK, martin Wansleben told the “Leipziger volkszeitung” daily as the latest DihK-survey on foreign investments of the industrial sector revealed.

only 24 percent of industrial companies in the new states have engaged in foreign investment. Despite this year’s figures again being higher than last year’s (by 20 percent), the new states have not made half as many foreign investments as the Western states (49 percent).

the industrial companies seem not to be as well established as in the West, DihK’s general manager said: “Particularly the growth regions china and north and South america are not as frequently listed as target regions.

instead, the east german companies appear to be more interested in dealing with the

traditional eu-15-states – “and with these markets, which for the most part have been closed, and from which at first little dynamic activity was expected.” these countries are ridding their cost disadvantages, Wansleben said, and are positioning themselves as more attractive investment destinations.

according to DihK-observations, the relocation of production facilities for companies from the newer states is, due to cost reasons, more frequently becoming a motive for foreign investment (east: 23 percent after 15 percent in 2012; West: 20 percent following 21 percent in the previous year).

“meaning the east german industrial sector with its increasing sensitivity toward cost, should be a warning signal,” Wansleben stressed: “While countries surrounding germany are conducting reform as quickly as possible, germany appears not to be making progress with regards to wages, taxes, and energy costs.

FOREIGN EXPOSURE OF EASTERN COMPANIES STILL LOW

DIHK- Despite increasing investment activity by East-German industrial companies, when it comes to foreign investment, East-German companies still lag - quantitatively as well as qualitatively - behind their Western counterparts according to German Chamber of Industry and Commerce (DIHK) data.

Wansleben: More active and wider establishment of Industry in West

old States new States

Percent of industrial sector Companies engaging in Foreign investment

“THE

“INDONESIANS

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developments over the past year and a

good current situation are met by a decrease in confidence on the growth expectations over the next 12 months, according to aSean business climate Survey 2013, conducted by five ahK’s in the Southeast asia region.

according to Jan Rönnfeld, executive Director of german-aSean chamber network, aSean is currently the most dynamic economic region in the world with a combined gDP of uS$ 2.3 trillion making it the 9th largest economy in the world.

“the ongoing integration leading up to aSean economic community 2015 and beyond will further spur development, a development that will create many opportunities for german businesses, especially the Sme sector.”

however, the dominating issues influencing the engagement of companies in the aSean region remain the availability of skilled labor and the absence of corruption. the top agenda item shows that the educational system and the perception of the overall economic competitiveness are seen as closely interlinked. these result show little change compared to the 2012 survey, which also holds true for other elements such as tax burden and inflation rate but to a lesser degree in terms of high importance

H I G H L I G H T S

with 36.6 respectively 26.3 percent. on the other hand, and that is good news, for a larger number of companies than in 2012, factors such as inflation rate, tax burden, or access to financing have become lesser important issues.

among the factors influenced by governments, economic policies have the highest potential to spur the attractiveness of the aSean region, or to stand in its way. other factors, such as trade barriers, red tape, access to public procurement, or tax incentives are seen as less important as in the 2012 survey. this can be attributed to improvements through more business friendly public policies.

Market Factorsthe results of the survey indicate that the importance of domestic and regional markets remain high, even though the significance of international markets has gained a little bit compared to the results of the 2012 survey. this corresponds with the strategies of german companies setting up entities in South-east asia to be closer to their customers or being able to provide them with faster service.

inconclusive are the perceptions on the importance of free trade agreements. While the number of companies who see benefits in such agreements for their business has increase, so has the

SoRotan eDition 2 / 2013 22

aSean business climate Survey 2013

number of firms which connect less importance to them.

other factors that more or less influence the market is the exchange rate fluctuations for currencies relevant to transactions for business relations with the aSean region, the importance is seen in the euro (66.7 percent) and the uS Dollar (45.8 percent). no or little influence is attributed to fluctuations in the british Pound (62.5 percent) and the Japanese yen and the chinese Rimimbi (41.7 percent each).

Launched in november 2012 by the five german chambers (ahKs) in the aSean region (indonesia, malaysia, Singapore, thailand and vietnam), gacn is a business platform across aSean for enterprises and policy-makers from aSean, germany and the eu. it provides a space to meet, network and exchange knowledge towards a sustainable trade and investment-friendly environment. gacn identifies future fields and business opportunities to foster the relationship between aSean and europe in general and to identify and to develop business opportunities for Smes in particular.

POSITIVE

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indonesian employers asso-ciation (aPinDo), the indone-

sian ministry of trade and the centre of Strategic and international Studies Jakarta (cSiS), the indonesian Services Dialogue was held in Surabaya on april 19th, 2013. the event provides a plat-form for stakeholders involved in the services sector.

according to the national Statistic agency of bPS, the indonesian services sector accounted for 53.8 percent of the indonesian gDP in 2011, with an annual average growth of 7.2 percent since 2001. this is faster than both the primary and the secondary sector. Whereas trade, hotel and restaurant are the largest sub-sectors, the most dynamic are transport and communications - with an annual growth of the communications sub-sector of 30 percent in 2008 alone.

During his opening speech, the indonesian minister of trade gita Wirjawan pointed out that the services sector in indonesia bears huge potential to increase indonesia’s competitiveness globally.

“to support the services sector with its sub-sectors tourism, retail, transport, media, telecommunications, finance and hospitality, there are three measures needs to be implemented. the first step is to facilitate the financial access for anyone willing to develop a business in the services sector, second is to create a more supportive trade policy. especially the regulations are a main obstacle for a sustainable development of the service sector and the third measure to be

introduced would finally be the increase of connectivity through developing the infrastructure which remains a constant restraint.“

the minister also stressed the urgency of constant improvement from the education sector as a must factor. “as we know, the services sector needs professionally educated human

the services sector is the most rapidly growing segment of the world economy, representing two-thirds of world production, two-thirds of world employment and nearly 50 percent of world trade. Which role does this sector play within the indonesian economic development? What steps could be undertaken to develop the services?

H I G H L I G H T S

sectors such as energy, transportation and telecommunications. Data by fDi Regulatory Restrictiveness index invented by the oecD reveals that indonesia was the third most restrictive fDi regime of 55 countries surveyed in 2012 after china and Saudi arabia.

nonetheless, chief of bKPm-now the newly appointed minister of finance, Dr. chatib basri, remains optimistic that the country will continue to be a target or the service sector. “indonesia as part of the most dynamic region worldwide, with its continuously growing consumer classes should be an attractive market for the services sector,” basri said.

indonesia must develop the services sector to avoid the middle-income trap, where the country would be confronted with a stagnating gross domestic product expansion due to soaring labor costs and decreasing productivity.

the 2nd iSD Public forum which was conducted in partnership with the indonesian trade and industry chamber (KaDin) and the aPec business advisory council (abac) was dedicated to the question which benefits could be achieved through opening the services sector and which strategies should be invented to further develop this sector.

Opening the services sector 2nd APEC Public Forum on Services Sector in Surabaya

resources and the commitment of the indonesian government to allocate 20 percent of the state budget for education is highly supportive.”

compared to other countries of the region, indonesia has a relatively low services content of 22 percent in its exports. here, manufacturing industries use less services inputs than in other east asian countries. obstacles for a sector development are relatively high restrictions towards foreign direct investment (fDi), especially in some of the services sub-

“WoRLD tRaDe iS not tRaDe in manufactuReS

any moRe, WoRLD tRaDe iS tRaDe in

SeRviceS.” -Dr. Sherry Stephenson of SeaDi and

international centre for trade and Sustainable Development (ictSD).

THE

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not be worried and in fact we should strive to reap maximum benefits from

the integration of the aSean economic region,” said the Secretary general of the ministry of trade, gunaryo, during his opening speech at the Public education Program about the aec 2015 for State-owned enterprises in Jakarta, may 16 2013.

Secretary general gunaryo was present to open the education forum that carried the theme ‘heading towards the aec 2015’. according to gunaryo, this type of forum is a valuable opportunity to discuss and share thoughts so that indonesia can reap optimum benefits from the aec 2015.

the holding of the event was aimed at increasing the leaders State-owned enterprises knowledge and understanding of the aSean economic commitment, the regions economic projections, and the national policy in facing the aec 2015. the event was also expected to stimulate the active role of State-owned enterprises to participate in taking advantage of business opportunities in the aSean market, and push the role of State-owned enterprises in creating a proportional public opinion that is expected to spur the people on to support the government’s effort to increase indonesia’s competitiveness.

Present expert sources in the event were, among others, the Director general of international trade cooperation of the

State-owned enterprises are expected to exploit the vast aSean service market and products opportunities that will come with the commencement of the aSean economic community (aec) in 2015.

EXPLOIT 2015 ASEAN MARKET

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H I G H L I G H T S

SoRotan eDition 2 / 201325

ministry of trade iman Pambagyo, representative the field of academics, Dr. Denni Puspa Purbarini; representatives from the indonesian young entrepreneurs association (hiPmi), ariful yaqin hidayat; the indonesian to myanmar, Sebastianus Sumarsono; and the indonesian ambassador to thailand, Lutfi Rauf. before the Public education event about the aec 2015 for State-owned enterprises was officially opened, the Director general of international trade cooperation, iman Pambagyo, took the initiative to launch the Public Service announcement ‘indonesia heading towards the aSean economic community (aec) 2015’. the Public Service announcement was made in collaboration with Pt. Kereta api indonesia (the indonesian Railway company) in the form of a 30 second ad that will be shown in 42 executive trains.

“this is one of the steps taken by the ministry of trade to instill awareness in stakeholders and the indonesian people in general, and a step to urge all elements of the indonesian nation to prepare together to face the aec 2015,” said iman. the board of directors of State-owned enterprises also present were, among others, high-level officials from the ministry of trade, the ministry of State-owned enterprises, the coordinating ministry for economic affairs, and the ministry of foreign affairs.

FOUR GLOBAL ECONOMIC ISSUES HAVE IMPACT ON INDONESIA

the asia-Pacific region that covers indonesia has at least four global economic issues that have an impact on indonesia, according to the World bank`s global economic Prospects report.

“the latest World bank`s global economic Prospects report have made us aware of both economic expectations and risks in the global economy,” said World bank vice President, Kaushik basu, in a written statement received here on friday.

according to the outlook report, economic growth in east asia and the Pacific region were strong in the first quarter of 2013, but it is slower than the same period last year, with estimation reaching to 7.3 percent in 2013.

While the four economic issues that could be at risk in the region, including indonesia is the gradual reduction in chinese investment, Japan`s quantitative easing monetary policy implementation, rapid growth of credit, and soaring asset prices such as housing.

While the prospects for developing countries are varied as in the asia-Pacific region is characterized by the faster

demand rising than supply which resulting an unbalanced economic growth that characterized such as inflation, asset price bubbles, and rising debt levels.

the report`s main authors andrew burns said that with a limited capacity in order to achieve higher growth developing countries have to once again prioritize on structural reforms.

“the structural reform priority such as lowering the cost conducting business activities, opening up to international trade flows and foreign investment, and invest in infrastructure and human resource development,” said andrew burns.

Previously, the indonesian chamber of commerce and industry (Kadin) stated that local entrepreneurs often complain about export barriers among others, in the form of additional costs that do not have a clear legal basis.

“We still often find complaints that local entrepreneurs for exporting their goods, they have to spend extra cost for the documents that are not needed,” said the chamber`s chairman of the Standing committee on venture capital and alternative funding Safari azis.

Safari said that based on information received by the chamber, it is related to government policies that are seeking to raise local revenue from commodity exports but it could reduce the region`s export commodities competitiveness.

therefore the chamber of commerce also wants the government to set up small and medium enterprises (Smes) in facing the global competition after the aSean economic community (aec) enactment by 2015.

vice chairman of the indonesian chamber of Smes and cooperatives Division erwin aksa said that indonesia should learn from the aSean-china free trade agreement / acfta case.

erwin said that indonesia is not quite ready in facing the acfta, then the business community must be frequently injected by various incentives from the indonesian government in preparation to face the free trade with china that lasts up to six years.

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the quality of the public transportation

service in the capital is at the top of the list on the Jakarta government’s agenda. among the success indicators for good transportation quality services are safety and comfort, punctual departure and arrival times, not to mention the quality of its service. Jakarta’s transportation problems include: limited road space, limited public transport vehicle fleets, lacking integration in connecting the multi-modal transportation networks, poor public transporation service quality, limited existence and access to infrastructure supporting seaports and airports, limited ocean-transport to thousand islands, unprofessional conduct by public transportation vehicle operators, and poor road discipline.

the development of Jakarta’s public transportation is stipulated in the gubernatorial Regulation no. 103/2007 on macro public transportation system, which comprises of increasing road space, traffic rules enforcement, and developing mass public transport systems through bus rapid transport of busway system, mass rapid transport (mRt)/subway and light rail train/monorail as the pilars of the transporation system.

traffic congestion in Jakarta is and the condition is worsening as time goes by due to the increasing number of private owned vehicles, imbalance between road capacity and the increasing number of vehicles and the poor discipline of road users in adhering to traffic rules, as well as disruptions from demonstrators using public roads, as well as inunduated roads due to high level of percipitation.

based on 2012 data the number of motor vehicles in Jakarta is up from 6.4 million units to 6.5 million units, (98.6 percent private owned vehicles) and 88.477 units (14 percent) public transportation vehicles). the increase in the number of motor vehicles in the past five years has been extraordinarily high, at 10 percent annually, while growth in new roads only occurs at a rate of 1 percent annually. as a result, 240 new motor vehicles are added to Jakarta’s streets on a daily basis; for motorcycles the figure is 890 new units per day. these numbers will continue to grow if the government does not impose limitation policies.

various efforts have been implemented to reduce traffic congestion in Jakarta, these include among others enhancing public transportation service quality, policies limiting the use of private vehicles, promoting road discipline, and

MANY WAYS TO ANTI-MACET

exPanD anD DeveLoPment of PubLic tRanSPoRtation moDeS to conqueR JaKaRta’S tRaffic WoeS

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i W a n n a S u t i o n

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to infrastructure development implemented to solve transportation problems are: Partnering with government offices in the surrounding regions, as bodetabek (bogor, Depok, tangerang, bekasi). expanding and developing road networks, including maintaining roads, in particular those that serve as network arteries, is equally essential. increasing the mobility and flow of goods and people, and raising road ratio which is currently only at approximately 6.28 percent, expanding public transportation fleets and exchanging outdated vehicles with new ones is also key. expediting public transportation infrastructure development has positive implications

the use of fines to curb the number of traffic violations. firm policies and breakthroughs are needed to reduce and manage the congestion. in 2004 transportation experts went so far as to predict that Jakarta’s city roads would soon come to a standstill. the mass transportation development policies which are busway, mRt and monorail is one attempt to reduce traffic with the aim of having private vehicle owners switch to mass public transport that are convenient, safe and faster, compared to using private vehicles. the benefit of operating public transportation systems such as busway, rail bus and subway are: bigger capacity loads, low public impact, eco-friendly, higher safety, encourages switching between different modes if transport, and proven technology, punctual, fast and obstacle free.

in an effort to raise public transportation services, the Jakarta government has taken the following steps: provision of 526 units of buses, construction of additional busway corridors (Pulogadung-bekasi, Kaliders-tangerang), busway separator construction work, improving busway shelters in corridor 2 and 3, expanding the busway feeder bus network, expanding fleet of the busway system, sterilization of busway lanes. to manage the traffic congestion in suburban areas of greater Jakarta, the DKi Jakarta must optimize the integration fort he development of busway lanes in bekasi, Depok, tangerang. the construction of Phase i of the north-South mRt lane is still being processed by the government. Jakarta monorail is a mass transportation railway system operating on a single, elevated railway, which is still in the final planning stages. the advantages of the monorail are as follows: maintaining the city’s aesthetics, compact and flexible, increased road ratio, does not overlap with existing road network.

expediting infrastructure development is vitally important for accelerating the transport of goods and people. the government’s policies related

H I G H L I G H T S

for Jakarta residents, giving them good reason to switch from using private owned vehicles to public transport. the Jakarta government hopes that all elements of the population get involved in supporting public transporation modes policies in an effort to solve one transportation problem at a time in Jakarta. the government must provide support in establishing regulations, while the private sector, namely domestic and international investors are expected to participate in realizing public transportation infrastructure development projects in Jakarta.

The dream of MRT

SoRotan eDition 2 / 201327

station under the ground where we

are standing right now will look like this,” he told local and foreign journalists as he gestured to a picture in his hand. the station design comprises of two platform levels, one for the concourse area and the other for the train line.

the first phase of the mRt track, to connect Lebak bulus in South Jakarta and the hotel indonesia traffic circle, would be ready by 2017. the line will have six underground stations, seven elevated stations and the ability to serve a capacity of 173,000 passengers per day. the construction of the first phase of the mRt track will be funded by a ¥125 billion (uS$ 1.27 million) soft loan from the Japan international cooperation agency.

the central government has agreed to repay 49 percent of the loan while the administration will pay the rest over a loan period of 40 years, a

grace period of 10 years and at an interest rate below 1 percent per year.

the construction will kick off immediately, with the governor urging that it should start before october of this year.

another ambitious monoRaiL project is also on going after being halt for more than 5 years due to lack of funds. following Sydney and Kuala Lumpur, Jakarta’s monorail will serve other routes that are not covered by the mRt. the first phase is expected to be done by 2015 serving Jakarta’s greater areas of bekasi – cawang – cibubur. it is expected that the construction of monorail will be done as early as in 2015, while the construction of mRt is target to be completed in 2017.

both mRt and monorail will be interconnected with transJakarta and KRL commuter Line Jabotabek.

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As part of EKONID’s support for German companies, the business delegation service generated increasingly more demand within the past years. So far in 2013, already four delegations have visited Indonesia – another four are already scheduled for the second half of 2013.

a business delegation, eKoniD introduces

german companies to indonesia in general and presents them possible indonesian business partners. this can include site visits, workshops, networking events or trade fair presentations. Supported by governmental funds or directly by the federal ministry of economics and technology (bmWi), german companies get the chance to explore export and cooperation opportunities with indonesia. in some cases, these delegations are also accompanied by german government officials, sector association representatives or sector consultants.

in order to ensure a concrete approach to business cooperation, the delegation

agenda generally involves a business matchmaking event, where german companies meet indonesian companies that could fit their portfolio, to function as a customer, a distributor, a supplier or a cooperation partner.

eKoniD’s delegation schedule for 2013 started with a delegation from the german state of thuringia from 2nd - 8th of march 2013. comprising not only 11 companies from different sectors but also thuringia’s State minister of economics, mathias machning, the delegation aimed at getting a broad picture of indonesian business, industry and politics in general. During the delegation, a briefing about indonesian industry by eKoniD and gtai, a reception with the head of mission of the german embassy,

heidrun tempel, various company visits and matchmaking meetings ensured a complete overall impression: investment possibilities, political framework and concrete business projects for the german companies.

for the german state of baden-Württemberg, eKoniD organized the presentation of the region’s green building businesses at the gReenRight – green building expo and conference in Jakarta. the team set up a booth at the exhibition halls, which functioned as the venue for an individual business matchmaking event as well as companies’ presentation space. three companies from baden-Württemberg, WiRSoL SoLaR, a manufacturer of solar panels, cofeLy Refrigerators, a provider of innovative

H I G H L I G H T S

viSiting neW maRKetS:

BUSINESS DELEGATIONS FROM GERMANY

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R e b e c c a z i m m e R m a n n

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H I G H L I G H T S

cooling solutions and Roto fRanK, a manufacturer for individual window solutions and two consultants for green building presented their contribution to green building solutions and shared their knowledge in 14 successful business matchmaking meetings. their presence at the trade fair also included company presentations and an expert discussion for invited indonesian participants from the sector and trade fair visitors. the combination of trade fair presentation, matchmaking and spontaneous networking at the fair booth proved to be a successful concept for all sides.

Site visits within indonesia are always of special interest for german delegates. here, they can both network and gain an authentic impression about their future business partners, their way of manufacturing, service or logistics. this authentic impression was especially important during the bremenports delegation from 20th - 27th of april 2013. the delegation comprised many distinguished stakeholders in the field of ports management: besides the five company delegates, three representatives from research institutes as well as bremen’s Senator for economic affairs, martin günthner, took part in the delegation’s program. their agenda ranged from visits to the indonesian ministry of transportation, to company presentations, an indonesian-german-Seminar on Logistics organized by PaS, aLi, iaSi, KaDin in Jakarta to a Seminar on “Logistic and Port Development in terms of business, Research and technology transfer between germany and indonesia” in makassar. Within one week, the delegation visited the ports of tanjung Priok, Jakarta, ujung Pandang, makassar and tanjung Perak, Surabaya.

in may, eKoniD organized a delegation for seven german companies related to the biomass and biogas sector, supported by the german federal ministry for economics and technology (bmWi). after eKoniD already

conducted a study about biomass and biogas from the agroindustry in indonesia and identified business potential for german companies, two workshops for german and indonesian companies were in Jakarta and germany, functioning as a preparation for the delegation visit in indonesia. in cooperation with giz, eKoniD hosted a technical workshop on the first day of the delegation. here, sector experts as well as the german companies presented their perspectives in four workshop sessions, namely “bio Waste to energy in indonesia”, “technology options and system requirements for waste-to-energy solutions,” “Project Development in indonesia” and “Performance and efficiency in biomass and biogas plants.” this in-depth technical workshop was followed by two days of business matchmaking events, where the german companies visited potential business partners. Due to this deeper approach and the

intense preparation, the business matchmaking meetings proved to be extremely successful. as a last leg of their delegation agenda, most of the german companies went to a field trip to the island of bangka (belitung) to visit one biomass power plant, Kencana agri biomass Power Plant and one biogas power plant aane biogas, Pom and PKS Syngas Power Plant, both located on the island of belitung

Delegates appreciate the detailed perspective they gain about indonesia, indonesian industries and culture. it is a first step to get to know indonesia as a partner country, and an attractive place to invest. eKoniD is looking forward to the next delegations, supporting german companies to enter the indonesian market and indonesian companies to find international business partners.

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L E G A LF O R E I G N R E P. O F F I C E S

developing country, indo-nesia has successfully

achieved economic stability. according to data of the indonesian Statistics agency, indonesia’s economic level, as indicated by gross Domestic Product (gDP), has gradually increased within the last 10 years. in addition, within the last 3 years indonesia has been successful in maintaining economic growth above 6%. Such achievement cannot be achieved without the existence of foreign investments.

under the investment Law number 25 of 2007, foreign investments must be undertaken by establishing an indonesian company having the status of foreign investment limited liability company (Pt Pma). considering the consequences of such requirement, some foreign investors decide not to establish new business so hastily. they require certain research on the market as well as the investment climate before finally setting up new business in indonesia. this can be done by establishing a foreign representative office.

to provide legal certainty for foreign investments, the indonesian government has issued several regulations related to the establishment of foreign representative office. under those regulations, (i) foreign Representative office (Kantor Perwakilan Perusahaan asing - “KPPa”), (ii) foreign trade Representative office (Kantor Perwakilan Perusahaan Perdagangan asing - “KP3a”) and (iii) Representative office for foreign construction company (Perwakilan badan usaha Jasa Konstruksi asing - “Rep. buJKa”), are the three types of representative office which allow foreign companies

to enter into the indonesian market without establishing a Pt Pma.

KPPAthe legal basis of the establishment of KPPa is Presidential Decree number 90 of 2000 and Regulation of the chairman of investment coordination board (“bKPm”) number 5 year 2013 (“bKPm Reg. 5/2013”). under those regulations, a foreign company or a group of foreign companies can set up a KPPa to manage its/their interest, or to prepare the establishment and development of its/their business in indonesia. in addition, KPPa shall have its address in office buildings. KPPa is led by one or more indonesian or foreign citizen considered as the chief of Representative office (“cRo”). the cRo is appointed by the said foreign company or groups of foreign companies.

the activities of KPPa are limited to the role of supervisor, intermediary, coordinator or manager. further, KPPas cannot participate in managing any company, subsidiary or branches in indonesia nor is it allowed to generate revenues in indonesia. KPPas also cannot engage in any agreement or sale purchase transaction of goods and services with any indonesian company

or national. in practice, to enter into any agreement, cRo signs agreements based on Power of attorney provided by the appointing foreign company(ies).

to conduct its activities, KPPa shall obtain KPPa business license from bKPm. Such permit is issued by bKPm in no later than 5 working days as of receiving a complete and correct application. KPPa business license is valid for 3 years and is extendable. KPPa business license can only be renewed if KPPa’s forthcoming activity is different with the previous.

KP3Aa foreign company or a group of foreign companies can also establish a KP3a to act as its/their representative in indonesia. KP3a can be established in the form of selling agent, manufactures agent and/or buying agent. KP3as are prohibited from engaging in trading and sales transactions activities. however, KP3as can conduct (i) introductory and promotional activities, (ii) market research and supervision of sale, (iii) market research on the required items and provide information concerning import and (iv) closing contracts for and on behalf of the appointing foreign company.

FOREIGNREPRESENTATIVE OFFICESUNDER INDONESIA’S LEGAL FRAMEWORK

KPPA KP3A Rep. BUjKA

Conducting Business (i.e., to enter into agreement, to trade, to claim, to participate in tender)

not permitted not permittedPermitted, by establishing a Joint operation

License-issuing Institution bKPm bKPm minister of Public Works

Scope of activities generalagent (selling, manufactures and buying)

construction services

Branch office allowed not regulated allowed not regulated

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AS A

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L E G A LF O R E I G N R E P. O F F I C E S

Messrs. Teguh Maramis, Partner at Corporate and Commercial Group, Kenzo Hadi Bangga and Edo Yudanto, Associates at Corporate and Commercial Group.

Lubis, Santosa & Maulana is one of the leading law firms in Indonesia. It was established in 1986 and has grown to become one of Indonesia’s law firms with comprehensive range of practice. Their practice encompasses nearly every major legal concentration which is divided into three major practice groups - Corporate and Commercial, Intellectual Property and Dispute Resolution. Further information, please log on to www.lsmlaw.co.id.

Silke Helmholz is Deputy Managing Director & General Counsel at EKONID, focusing on consulting in corporate and investment issues.

in order to conduct the above activities, KP3as shall secure a foreign trade Representative office business License/Surat izin usaha Perwakilan Perusahaan Perdagangan asing (“SiuP3a”) by filing an application to the bKPm, who will issue such SiuP3a in no later than 5 working days as of receiving a complete and correct application. Differ from the preceding regulation, under bKPm Reg. 5/2013, SiuP3a consists of (i) temporary SiuP3a, valid for 2 months, (ii) new/permanent SiuP3a, valid for 1 year, and (iii) extension SiuP3a which has the same period with the appointment period of KP3a, and (iv) amendment of SiuP3a, should any alteration to the relevant SiuP3a exists.

REP. BUjKAPursuant to minister of Public Works Regulation number 5 of 2011, a foreign construction business entity/badan usaha Jasa Konstruksi asing (“buJKa”)

may perform construction works in indonesia provided it has established a Rep. buJKa and obtained buJKa Representative office License (“Rep. buJKa License”) from the minister of Public Works.

buJKas can only perform construction works that are complex, high risk and require sophisticated technology. Rep. buJKa License will only be granted to foreign construction companies that are classified as “large-scale”, and after being “equated” on its classification and qualification, of which equation is stated

in a certificate issued by the national construction Services Development board (Lembaga Pengembangan Jasa Konstruksi - ”LPJK”). the Rep. buJKa License is valid for 3 years, and is extendable.

upon receiving the Rep. buJKa License, buJKas must establish a Joint operation with indonesian construction company(ies) in every construction work. in addition, buJKas must also transfer its knowledge to its partner in the joint operation.

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E K O N I D N E W SH U M A N C A P I T A L C L U B

business employs foreign nationals it’s a sure thing that someday you’re going to have your company’s

permit extended. the procedures for getting the permit extended requires that your company undergo several administrative and legal processes as described in indonesian Labor Law, and several ministerial and gubernatorial decrees at several levels of government. on 11 april 2013, Sri Wahyuni of the DKi Jakarta manpower and transmigration Department delivered a session titled “extending Permits for employing of foreign nationals” to shed light on how a company should best go about the application process and to point out problems commonly experienced by companies that employ foreigners. Sri’s session was enjoyed by

Extending Your Company’s Permit for Employing Foreign Nationals (IMTA)

hR managers of german and indonesian companies, as part of eKoniD’s human capital club (hcc) working group.

any indonesian business established in accordance with indonesian law, whether an educational, religious, or cultural institution, or any foreign trading house, or representative office of a private enterprise wanting to extend its permit for employing a foreign national, will need to apply for an extension at the ministry of manpower and transmigration office. getting a written permit from the ministry, paying a compensation fee for each foreign national hired, and ensuring that the foreign national is covered by work or life insurance are just some of the requirements the authorities demand. Due to the intricacies of the process, many companies delegate the process to formality services agents. although such professional services are not cheap, any business operating without the proper permits is looking for trouble.

Sri also elicited participants’ knowledge about the requirements a foreign national must meet in order to be eligible for work in indonesia. among these are, for instance, the requirement that the foreign national must possess a minimum of five years experience in his or her current field and be prepared to transfer expertise and technological know-how to a local staff. moreover, the foreign national also needs to be able to communicate in bahasa, something that surprisingly in many cases has no direct correlation to the number of years the foreigner has been in the country. the participants were much more well-informed and felt more confident about the process after this reviewing session.

Employment Termination According to Prevailing Labor Laws

world of business, the situation occasionally arises when, for whatever reason, one side wants to end

working relations with another side. frequently, the two sides are unable to end the working relations on mutually agreed terms. because of the various problematic issues that often arise in employment termination, on 16 may 2013 eKoniD ‘s hcc working group held a session titled “terminating employment in accordance with Prevailing Labor Laws” with Dr. Julius i.D. Singara and tagor Ricardo Sibarani, S.h. of the Lubis, Santosa and maramis Law firm as the event’s speakers. among the topic discussed were insights into the challenges and pitfalls of terminating employment in today’s increasingly volatile business world.

averaging 20-50 participants from hR departments of various companies, eKoniD’s human capital club (hcc) is a bi-monthly working group exclusively for hR managers. in each discussion session, expert speakers share their insights surrounding fundamental hR principles and the latest developments, with topics ranging as broad as networking, recruiting, and motivating employees. if you are interested in joining the next eKoniD hcc working group, please feel free to contact [email protected].

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E K O N I D N E W SJ O B M A R K E T

for this placing service we charge a handling fee in the amount of Rp. 50.000 per application profile (please name the box number). for the successful placement of higher managementpositions companies pay a unique fee in the amount of one brutto monthly salary (members of eKoniD), respectively 10% of the brutto annual salary (if are no member of eKoniD).

Job Market

Indonesians looking for work

candidates can apply by our website http://www.ekonid.com and send us his resume. for futher information please contact mr. iwan nasution, tel.: 6221-3154685, fax.: 6221-3155276, e-mail: [email protected]

Administration/Secretary, 26 y., f, uni. of indonesia, majoring in german Dept.; computer Literate: Languages L english, german is looking for a job in Jabodetabek.v1D/06/13

Administration, 33y., f.; 10 y. lived in germany; computer Literated; Languages : english, german, is looking for a job in Jabodetabek. v2f/06/13

Accoounting, 37 y., m, several years exp. in same filed; computer Literate;Languages : german, english, id looking for a job in Jabodetabek.f1a/06/13

Accounting/Financial/Taxation, 27 y., f.; uni. Darma Persada, bachelor of

accounting, 2 y exp.; computer: mS office, visual basic, myob accounting Software; Languages : english, german, is looking for a job in Jabodetabek.f2S/06/13

Eventmanagement, 34 y., m., 2,5 y. exp. in South africa, aSean Secretariat etc.; computer Literate; Languages : english, german is looking for a job in Jabodetabek.i1a/06/13

Export Import, 39 y., f., computer Literate, Language : english, exp. in several years in same field, is looking for a job in Jabodetabek. i2L/06/13

Electrical Engineering, 40 y., m.; itb bandung, majoring in electrical

engineering, 14 y. exp. as parts sales manager (now); computer Literate; Languages: english, is looking for a job in Jabodetabek/ bandung.i3e/06/13

Supervisor, 39 y., f., uni. hasanuddin, majoring in electro/telecommunication, 13 y. exp. in field; computer Literate; Language : english, is looking for job in Jabodetabek.i4y/06/13

Marketing Executive, 39 y., f., uni. indonesia, majoring ini german Literature; 8 y. exp. in same field, computer Literate; Languages : english, german, is looking for a job in Jabodetabek.i5D/06/13

Nationwide chemical distributor

With Branch offices in Indonesia :Medan, Padang, Pekanbaru, Lampung, Palembang, Jakarta, Bogor, Bandung, Karawang, Tasikmalaya, Sukabumi, Cirebon, Semarang, Tegal, Purwokerto,Kudus, Solo, Yogya, Surabaya, Sidoarjo, Kediri, Malang, Denpasar, Makassar.

We supply raw materials for :Dispensaries – Hospitals – PharmaceuticalIndustries – Cosmetical Industries – Food and Beverages Industries – Poultry – Feed – Other Industries – Water treatment – Bakery

Head Office :Jl. Cideng Barat 78 – Jakarta 10150 – IndonesiaTelp. (62-21) 3522733 – 3849166Fax. (62-21) 3522734 – 3501646E-mail : [email protected]

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E K O N I D N E W SA N N U A L M E M B E R S M E E T I N G

ANNUAL MEMBERS MEETINGintercontinental midPlaza hotel Jakarta

43rd annual members meeting was held on april 9th 2013. every two year, the annual members meeting elect the new board

of management. congratulations to ari h. Soemarno for being re-elected chairman of eKoniD; markus bamberger for being re-elected as treasurer; gunadi Sindhuwinata for being re-elected as the member of board of management. eKoniD also welcomed Josef Winter as the new vice chairman as well as Dr. thomas-Peter hausner and harjanto tjokrosetio for being elected as new members of the board of management.

We also bid farewell to three members of the board who have dedicated their time and loyalty to eKoniD in the past years. Special thanks to hans Peter haesslein, hanns J. hauptmann and mr. eduard eddy Sugiri.

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E K O N I D N E W SE U R O P E A N D A Y

EUROPEAN jOINT GATHERING(hosted by eKoniD)

MARCH 2013

EUROPE DAYSmay 2013Shangri-La hotel, Jakarta

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Get Together aprilintercontinental midPlaza hotel Jakarta

Get Together mayfront Page - Wine & Dine, Jakarta

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E K O N I D N E W SS P A R G E L E S S E N

new zealand has its kiwis, Dc its cherry blossoms, and Wimbledon its strawberries, germany is proud of its “Spargelzeit”. following

long-time tradition, eKoniD celebrated this annual german spring dinner, known as “Spargelessen” to locals, at the intercontinental midPlaza hotel Jakarta. among the dignitaries and distinguished guests who attended, eKoniD was also honored by the presence of h.e. ambassador of the federal Republic of germany to indonesia, Dr. georg Witschel. nearly 200 distinguished guests attended this “spring version of grünkohlessen” - another german dinner tradition where green cabbage is enjoyed instead of asparagus. chef garry Palm offered a delicious four-course dinner with fresh white asparagus—flown directly from germany− along with a wide selections of hams and wines.

Spargelessen Juneintercontinental midPlaza hotel Jakarta

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E K O N I D N E W SM E M B E R N E W S

indonesia held the global connection event at four

Seasons hotel Jakarta just recently. entitled, trade outlook” opportunities for international business indonesia, the event presented numerous highly respected speakers such as mr. ali Setiawan, head of global markets hSbc indonesia, ms. Su Sian Lim, hSbc-aSean economist, Simon P.constantinides, hSbc Regional head of global trade and Receivables finance as well as mr. gusmardi bustami, Director general of national export Development. the event was moderated by indonesian prominent journalist, Desi anwar.

During his presentation, Simon P. constantinides stressed that asia will continue to be the global indicator for economic growth adding that trade outlook is significantly brighter than 12 years ago. “indonesia is very well positioned; however the country has to look above and beyond its natural resources to look what is the opportunity,” said constantinides.

the seminar was attended by more than 200 people including hSbc representatives from 13 countries.

an official sponsors of the giant soccer club,

fc bayern muenchen, aside from giving indonesian teenagers the chance to participate in the 2nd program of its yearly program, this year also provided them a chance to experience an unforgettable time by joining other teenagers from around the world in a series of contests in munich, germany and Phuket, thailand.

three contestants visited allianz arena, germany while another six contestants visited Phuket, thailand. these contestants were able to beat an incredible 1,000 competing hopefuls from two cities, namely Jakarta and Surabaya. Prior to making it passed the final selection stage, the selected contestants still needed to face three days of fierce competition involving 24 other teenagers at the Jakarta champ, beginning on 31 march – 3 June 2013.

While in munich, germany and Phuket, thailand the contestants are able to expand their knowledge base and acquire experience about soccer, which now is no longer a mere hobby, but is now being regarded as an achievement and career in the future. During their stay in the two cities, they received soccer

instructions from fc bayern muenchen’s junior coach, learned about the two city’s culture, and had a chance to experience firsthand the stadium and club that is the pride of muenchen’s residents, furthermore that fc bayern muenchen has successfully demonstrated its dominance by achieving treble Winner within a single season in 2013. the same was pointed out in the meet and greet session held by the fc bayern fan indonesia community during one of their events during the quararantine period..

benyenuti amarul fathan, yusuf Ramdhani, bakti Laksono, Khoirul Romadhon, Rusli Kiang and Panggih Prio S. have been selected to depart for thailand, and the three selected to depart for munich, germany are Kusuma manggala Putra, dona Saputra and arief gunawan. these teenagers will encourage many other teenagers in indonesia to sharpen their soccer skills.

besides the presentation, they have also been given the chance to educate themselves regarding insurance and extend their relations to become soccer professionals

‘‘We‘re glad to see the enthusiasts that teen soccer enthusiasts have shown in competing for a chance to train with the coach of the fc bayern muenchen soccer team. Surely, it‘s a spezial opportunity to get experience fro ma team that has just become champions of europe. What’s more, this year we will add the number of contestants who will depart to Phuket and munich,“ Daniel neo, chief executive officer for allianz utama indonesia said.

together with Allianz

Opportunities for International Business INDONESIATrade Outlook

On Soccer and the Future

SoRotan eDition 2 / 2013 38

HSBC

ALLIANZ

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E K O N I D N E W SN E W M E M B E R

New MemberATEjA TRITUNGGAL, PT(PT ATEjA MULTI INDUSTRI)Mr. Stephen TjandraProject ExecutiveJl. Raya batujajar Km 2,8Desa Laksana mekar, Padalarangbandung 40561Phone : +62-022-6866322fax : +62-022- 6866320email : [email protected] [email protected] activity : manufacturing & exporting

GLOBAL PUTRA INTERNATIONAL GROUPMr. Kurt BreinlingerRegional Vice PresidentJl. ir. h.Juanda iii no.26 a-bJakarta 10120Phone : +62-021-3807882 +62-021-3803267fax : +62-021-3805701email : [email protected] [email protected] activity : Logistics international, freight

forwarding, Warehouse

THE DHARMAWANGSA jAKARTAMr. Alexander NayoanManaging DirectorJl. brawijaya Raya no. 26Kebayoran baruJakarta Selatan 12160Phone : +62-021-7258181fax : +62-021-7258383email : reservation@the-

dharmawangsa.com activity : hospitality (hotel) MULTI MAS PERKASA, PTMr. Tony WongManaging DirectorParamount centre blok ii no 15JL cbD gading Serpong Paramounttangerang 15810Phone : +62-021-29014789fax : +62-021-29014674 email : tonywong@multimasperkasa.

com activity : Solar Power Solution, System

integrator

INTERNATIONAL UNIVERSITY LIAISONINDONESIA (IULI)Mr. Prof Dr. Peter Al PscheidJl. masjid no.75Pd. Sentul ciaterSerpong tangerang 15317bantenPhone : +62-81511570040

email : [email protected] activity : education & Research EDELMAN INDONESIA, PTMr. Jacob Andrew DrakeHead of Corporate and Public AffairsRecapital building 3rd floorJl. adityawarman kav. 55Jakarta Selatan 12160Phone : +62-021-72159000fax : +62-021-72786980email : [email protected] : Public Relation consultancy

BETON PERKASA WIjAKSANA, PTMr. Halim SantosaDirekturJl. Penjernihan i no. 40, PejomponganJakarta 10210Phone : +62-021-5712644fax : +62-021-5712633 email : [email protected] halim.santosa@betonperkasa.

com activity : heavy equipment

manufacturing

IHK Bonn/Rhein-SiegMrs. Alina Paczkowskibonner talweg 1753113 bonn - germanyPhone : +49-228-2284 102 / 22840 fax : +49-228-2284 106 / 2284170 email : [email protected] [email protected] activity : chamber of commerce and

industry

Mrs. Paramita AnandaC/O ORACLE INDONESIA, PT Jl. Salak no. 4guntur, Jakarta Selatan 12980Phone : +62-021-8303723 email : [email protected] activity : it Solutions MAMAGREEN PACIFIC, PTMrs. Yulin PaulusLegal AffairsJl. Raya Semarang Kendal Km 11 no. 411tugu - Semarang 50185 - Jawa tengahPhone : +62-024-8665633fax : +62-024-8662476 email : [email protected] [email protected] activity : outdoor furniture exporter

EKONID Membership

Create your goal and enhance your business strategy. We will gladly provide the right network for you. As our special member you we will have previleged access to information and granted exclusive rights to EKONID’s entire range of services.

BE PART of the inDoneSian-geRman buSineSS community

For more information please contact:

Mei TobingHead of Membership & Events DivisionPhone: +62 21 3154685 Email: [email protected]

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are becoming fearless, gluttonous and asocial due to pharmaceutical waste, according to a new

study that links these behavioral changes to something as seemingly harmless as a person flushing a toilet. the reasoning is that many drugs are excreted from our bodies intact, so that the potent medicine residues wind up in wastewater where they can affect fish.

fish being exposed to human drugs may not seem like an ecological disaster, but it can be, according to the paper published in the latest issue of the Journal of Science. for example, “fish eat zooplanktons that in turn eat algae,” co-author michael Jonsson told Discovery news. “if the feeding rate of zooplankton increases because the fish become more efficient in feeding ... you get an increased amount of algae. this may lead to oxygen depletion of the aquatic system and a higher risk of algal blooms.”

Johnsson and his colleagues at umeå university focused on how perch behave when they’re exposed to the anxiety-moderating drug oxazepam. it’s a commonly prescribed drug, and they found traces of it in wild perch during a routine environmental screening at the River fyris, Sweden.

Residues of this drug and others are often found downstream from sewage treatment plants that fail to remove or make inactive the pharmaceutical waste. “fish bioconcentrate the drugs through their gills,” co-author Jerker fick told Discovery news. “you could say that fish are in equilibrium with the water concentration.”

in addition to eating more quickly, the oxazepam-exposed fish became braver and less social. they left their schools to look for food on their own, a behavior that can be risky, since school formation is a key defense against being eaten by a predator.

Waste from Oxazepam isn’t the only problem.“fish, being vertebrates, often have the same drug receptors as humans,” co-author Jonatan Klamander said. “it’s possible that many different kinds of human pharmaceuticals, or other chemical compounds for that matter, also have an effect on fish.”

other marine life could be affected as well, though the researchers point out that species in deeper water may be somewhat protected, since wastewater concentrations would be lower there.

“it’s a very elegant and convincing study, demonstrating that low concentrations of a pharmaceutical, found in the environment, can seriously affect the behavior of a wild fish,” said JoakimLarsson, an associate professor in the university of gothenburg’s institute of biomedicine.

neither Larsson, who was not involved with the project, or the study’s authors suggest banning or even switching out certain drugs, since that could hurt the people who need them.

“the main solution to deal with environmental exposure and effects of pharmaceuticals is to require and install more efficient sewage treatment (systems),” Larsson said. “there are, of course, costs involved with that, but more advanced treatment could help society to remove many potentially harmful contaminants in one go.

FISH GETTING HIGH FROM DRUG WASTE?

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3 may 2013, the Deutsche gesellschaft für internationale

zusammenarbeit (giz) gmbh and merck millipore, the Life Science division of the merck group, announced the conclusion of their three-year Strategic alliance in the seminar “Responsible chemical Waste management in Southeast asia: Results of Public-Private Partnership in indonesia, thailand, and the Philippines” in Jababeka industrial estate, cikarang, indonesia.

the alliance started in late 2009 when the giz on behalf of the german federal ministry for economic cooperation and Development (bmz) and the merck group joined forces to find a sustainable and environmentally friendly solution to the issue of chemical waste management, especially regarding packaging waste from chemicals used in laboratories. in many large cities in Southeast asia, empty chemical containers are being discarded improperly on illegal landfills where they are being scavenged and re-filled with various substances to be sold again. this creates health hazards on every level. the landfills pollute the area because of residuals of chemicals in the containers, the people scavenging these landfills expose themselves to toxic fumes and substances, and buyers of refilled containers do not know what they bought or how to use it, since the contents do not match the labels.

indonesia, thailand, and the Philippines were chosen as the countries that formed the Strategic alliance. the same objectives on

building capacities to manage chemical waste and establishing a system to safely process packaging waste known as retrologistics, based on merck’s Retrologistik® service in germany, were shared in all countries. the types of packaging waste covered in the project are used test kits and empty chemical glass containers which are generated from laboratory activities for various purposes from water and food analysis to the control of production process. in total, more than 3,000 people in the three collaborating countries are reached through the project – from government officials to hSe managers to university students. they are well-informed on how to safely handle, treat, and dispose chemical waste through hands-on trainings in the laboratories as well as interactive workshops.

on the same occasion, the cleaning facility of retrologistics service in indonesia was officially inaugurated by the ministry of environment. also involved in the inauguration were the head of Programme environment and climate change of giz indonesia Dieter brulez, President Director of merck indonesia markus bamberger, chemical Division Director of merck indonesia and the Philippines martin feulner, and Senior manager of Pt Jababeka infrastruktur mifti haris. the establishment of the cleaning facility is a joint effort of the giz, Pt. merck tbk, and Pt. Jababeka infrastruktur that was agreed in a cooperation agreement in october 2011. this facility processes empty glass containers

from washing the containers with the purpose of eliminating chemical residues to crushing the containers into glass chips that will be transported to glass-processing company for recycling. untreated, empty containers are considered as hazardous waste according to indonesian regulations. based on Pt. merck tbk’s survey in 2006-2007, merely 22 percent of indonesian chemical users (companies and laboratories) gave their empty containers to third parties that can manage this type of waste. What is worrisome was that only a quarter of this 22 percent disposes the empty containers to third parties who have license to treat hazardous waste. thus, the provision of the cleaning facility and subsequently the retrologistics service aims to provide an affordable alternative solution in chemical waste disposal.

During the initial operational phase, the retrologistics service only accepts empty chemical glass containers in 1, 2.5, and 4 liter size from the tenants of Jababeka industrial estate. empty means that the glass containers contain no more than few drops of chemical substances. Several examples of the substances are acetone, ethanol, methanol, and sulfuric acid. the packaging waste of these substances can be safely processed in the cleaning facility. it is planned that in the future the service will be available for chemical users in the areas surrounding Jababeka industrial estate.

all in all, the success stories of the three countries have generated more attention and are pushing discussions on waste management issues from polluter pays principle to extended producer responsibility to introducing more collaborative approaches for chemical waste management in developing countries through public-private partnership, which could effectively distribute responsibility along the whole value chain. there is a plan to launch a similar alliance in india. Details will be announced as they become available.

GIZ AND MERCK CELEBRATE SUCCESSFUL CHEMICAL WASTE MANAGEMENT PROjECT IN SOUTHEAST ASIA

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some people, tumbu Ramelan is only posing as

the wife of a former indonesian minister. others recognize her as a socialite from her appearances at high profile social events. few however know that tumbu, now at 72, is a batik lover, observer, and avid collector with a collection holding over one thousand batiks, which she has been reservedly keeping at her cimanggis residential compound in the greater Jakarta area.

growing up in a surrounding with strong Javanese influence, tumbu, even from an early age, recognized the dominant presence of batik all around her. She admits, however, that she has never really paid much attention to it. that was until she received several beautiful cloths at her wedding in 1969.

“i was so captivated by those batiks. i realized then that batik could be used for purposes other than table cloths or a baby sling. those gifts became the first pieces of my collection,” tumbu recalls.

following her husband’s pursuit of education in germany, tumbu met with some international batik collectors, one of whom she respected highly. the name was german Rudolf g. Smend. Smend has an enormous collection of astonishing batik masterpieces. She also got acquainted with a collector from Japan who owns thousands of the most beautiful of indonesian batiks. “i started thinking that since so many masterpiece collections belonged to people outside indonesia, that the day woud perhaps come when we’d have to to travel overseas to see our own batik heritage?” tumbu said.

that was the wake up call that made her decided to expand her collection, one piece at a time. today her over one-thousand 1,000-piece collection is fit to be displayed in a museum.

“there have been talks between the ministry of education and culture, indonesian batik association (ybi) and taman mini indonesia indah about the establishing a museum. i’m very involved in the plans; we’re hoping the construction will start as early as next year.”

tumbu, who pursued medical school in Russia and earned an anesthesiology specialist degree in germany, admits that her love for batik has become somewhat of an addiction. She said that she sometimes couldn’t sleep after seeing a nice piece of batik. her collection, consisting of mainly old and

foR the Love of batiK

TUMBU RAMELAN

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As batik is now enjoying a regained glory reminiscent of the Ali Sadikin days, Indonesia can keep this cultural heritage for future generations by encouraging batik fashion, changing our mindset towards batik, and building a batik museum right in the capital.

FOR

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D e n n i S L i S c h e R & i W a n n a S u t i o nP h o t o S : i W a n n a S u t i o n

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antique cloths from the 1900s, were all preserved well. “Preserving a cloth is much more difficult than preserving a process. Who has time in today’s fast-paced society to care about preserving such fragile cloths,” she said. “batik cloths last only about 200 years when stored properly. the oldest traditional cloth, according to one museum’s claim, is about 300 years old. in our collection the oldest batik cloth is from 1880,“ she added.

her passion of batik urged her to study batik. She learned how to hand-paint her own batik, a skill which she admits requires patience, diligence and creativity. tumbu explained that batik is not merely about boring old cloths with funny looking motifs and deep, mysterious meanings. “batik is a process. it is a process of hand-painting cloth using hot wax that can be taken up to create contemporary motifs of an unlimited variety. Whether the motifs are jet airplanes, soccer balls or three dimensional objects is up to the designer. “

on neighboring malaysia’s recent claim on batik ownership, she firmly says that no country in the world can prove that it is the birthplace of batik. “i do not agree to force the world to admit that batik is indonesian. Looking at the etymology: ‘tik’ in the word ‘batik’ is traced to the word ‘titik’, meaning point. but there’s no way to claim batik’s origin based on this word.” she said.

“indonesia has the best batik in the world, there’s no question about it. however, it may come as a surprise that the same wax resist dying techniques used in producing indonesian batik are commonly found in many other societies throughout history, some still being practiced today. Japan, for instance, has a unique form of batik named Jawa hokokai, while finland, africa, china, nigeria, egypt and turkey also own wax resist dying techniques,“ tumbu said.

nonetheless, tumbu sees the recent feud with neighboring malaysia as blessing in disguise as locals have come to appreciate batik again. many companies and government offices

urge their employees to wear batik on fridays, and more fashion designers have started to use batik in their design.

“During the ali Sadikin era (former Jakarta governor in the 60s - 70s), batik was widely accepted as a substitute for the suit and tie during formal occasions. but its status faded somewhat during the next decades and was only revived when malaysia claimed batik and other cultural heritage as its own. that sparked indonesian’s passion

batik. her husband, former indonesian minister of trade, Prof. Rahardi Ramelan photographed some of the images of her batik collections for the book.

“after more than 40 years of collecting i have the desire that my batiks should serve other purposes than merely for personal satisfaction and happiness.“

today, this grandmother of two is actively serving as head of the batik gallery at the textile museum in Jakarta.

C U L T U R EB A T I K

“WOMEN SHOULD NOT BE WITHOUT AN EDUCATION.

aLthough StiLL Living by eaSteRn PhiLoSoPhieS anD

conSeRvative vaLueS, anD unabLe

to eScaPe the quaDRant Society

WantS uS in, Women, by aLL meanS,

muSt PuRSue an eDucation.”

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to fervently promote batik as a local product,” she said.

according to tumbu, only three kinds of batik exist; batik tulis - the most artistic, yet skill-demanding technique; batik cap - a technique developed for larger production; and batik Kombinasi - a combination between tulis and cap. “everything else is not batik. Please don’t wear that imported stuff from china, because it wasn’t created using a wax resist dying technique. they should actually put labels to separate the printed commodity from batik. if you wear batik, at least wear batik cap. Later you can move up to batik tulis,” she suggested.

Deeply concerned with the future of batik, tumbu crafted the book “the 20th

century batik masterpieces”, a 300-page bilingual english-indonesian volume that documentats her rare antique collection as a dedication to the future of

She also keeps herself busy through her involvement in the indonesian batik foundation, where she actively promotes and educates others about the importance of preserving batik.

“We may not be able to prove that batik originated in indonesia or stop the billions of rupiah worth of printed batik imports saturating our textile and garment markets. i personally think there’s no need to claim batik’s origin and i have nothing against the imports as they are a commodity in demand. What we want is for people, when they think of batik, to think of indonesia. i really urge the government to take a more active role in preserving indonesian batik for future generations.” tumbu said.

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wood is a journey to tropical forests. the total 40-piece

collection offers Safari style mix matched with stylish girly dresses and skirts. the forest came through the batik motif of leaves, flowers, butterflies, wood fibers as well as natural earthy colors combined with tie-dye fabric, gradation and fading color techniques. color palette used for these collections were gradations of green, brown, dusty pink and purple. other colors like bright blue,

yellow and orange – colors which have become a trademark of Lenny agustin design—were also added. We’re using natural fabrics and natural dye from ecobatik such as hand-written cotton batik, stamp cotton batik, cotton sarong from mangga and tie-dye cotton.

this project undoubtedly helped preserve the natural dye batik technique. it’s a pity that the long standing traditional

heritage has been forgotten by many in the batik industry, which causes not only environmental damage but also diminishes our cultural heritage. i’m hopeful that through the cbi program at least two missions will be accomplished. that is the preservation of culture and helping to minimize environmental damage.

harajuku style influences my style and design a lot. there’s something about the spirit and creativity in their

out the many promising young designers in indonesia, she is the one that could be dubbed as the rising star. it’s her edgy design sense that’s getting her noticed. Lenny agustin is herself funky and colorful; so much a picture of her own brand, making her the perfect ambassador. her collaboration with uK-based cosmetic line the body Shop during the Jakarta fashion Week 2013 was praised by many. With the theme, “Paper garden”, bold

pallets make-up like red, purple, and green prettified the model quotient on the runway. the collections were a preview for the body Shop color collection which should be out by next year. however, it is her collaboration with the clean batik initiative that inspired her to create the green batik collection called “in the Wood!” Despite her huge domestic success, Lenny shows no interest of going international as other fashion designers have.

Lenny aguStin

C U L T U R EB A T I K

Tell us about “IN THE WOOD!” collection.

What made your collaboration with the Clean Batik Initiative program so special? Where do you get your inspiration?

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m a R i a g R a c i a S , P h o t o S : i W a n n a S u t i o n

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mix matching that really inspires me. i combined those with a slightly indonesian touch, for example through the use of batik, sarong, kurung, bodo and kebaya cutting. i play with cheerful colors quite a lot too. through my design, i want to introduce indonesian fabrics and traditional woven motifs to the younger generation. i want them to feel ‘the pride of being indonesian’ by wearing these designs.

it all started when i won the bridal dress design competition held by one of indonesia’s leading female magazines. it was a great promotion which later helped to open so many doors in my career. many people came and asked me to make their wedding kebaya or a wedding gown. they say my design is relatively affordable compared to those of other designers. you can get wedding gown set for only Rp 25 million (uS$ 2,500). i receive 40 – 60 set of kebaya orders in month at prices that are very cheap for designer standards.

Lenny agustin is the dedicated custom made clothing line. but currently i’m focused on my second brand - LenoR. today you can find these in numbers of department stores in Jakarta, such as at Debenhams and at alam Sutera Pendopo, as well as in trade fair events.

i have always dreamed of becoming a fashion designer. as kid, i made clothes for my dolls and sometimes my friends’ dolls. i like to draw as well. my drawing inspiration often came from the fairytale comics and the princesses. as the youngest in the family, i watched my sisters grew up wearing fashionable clothing so i often thought;”how about making those clothes myself?” unfortunately, none in my family master

the art of sewing. and when i express my interest of fashion i faced challenges and rejections from my family; they said, “Why do you want to be a tailor?” but i had made up my mind. Right after high school, i didn’t go the university—for two years-- until i convinced my parents to allow me to study fashion.

indonesia has a huge market for the fashion industry. a lot of international brands coming in and dominating the market, i think it is certainly our time to conquer the competition. of course i want to expand my products internationally but for now it is best to focus on getting an even greater market in indonesia.

Many people recognized you as a bridal kebaya specialist.

How many clothing lines do you have right now?

What attracts you to the fashion industry?

Any plans for going international?

the origami-like-folding technique she made dominated her 37 masterpieces

which were made through a special collaboration with the uK-based

cosmetics company, the body Shop during the Jakarta fashion Week 2013.

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enn

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EcoBatik Signature collection

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,the german indonesian chamber of industry

and commerce, has been successfully implemented the clean batik initiative (cbi) program. cbi highlights its four-year program by launching ecobatiK Signature collection-an exclusive 42-piece collection from indonesia’s top five designers.

according to martin Krummeck, Project coordinator of cbi, the objective of ecobatiK Signature collection goes beyond showcasing the cbi program and its achievements, but is also is a means for eco-friendly batik to penetrate the market.

“We strongly encourage Sme’s to produce environmentally-friendly batik products and at the same time we motivate indonesian designers to take advantage of it.”

Working together with numerous prominent indonesian designers, among them carmanita, Lenny agustin, musa Widyatmodjo, caterina hapsari, and batik factal, every piece of fabrics used in ecobatiK Signature collection is created by certified batik Sme’s from numerous regions across the archipelago.

“Since its introduction in 2010, the 4-year program has successfully implemented sustainable production and provided technical assistance to more than 500 Sme’s in six provinces in indonesia, including the Special Region of yogyakarta, central Java, West Java,

east Kalimantan, east Java and South Sulawesi,” says Krummeck.

many batik factories operate with excessive wax, chemical dyes and bleaching agents that are harmful to people and the environment. as result, water scarcity is a common issue during the dry season, which often prompts them to turn to water solutions that require even greater energy supplies and which lead to increased production costs.

Designer carmanita says, “through this project i supported batik crafters

to produce fabrics that are eco-friendly by providing pattern designs. this is not merely to support them in the recycling process, but also to help the earth become a place that’s comfortable to live in.”

in the future, it is hoped that the launch of ecobatiK will open doors of opportunity for many batik Sme’s in indonesia, further enhance their enterprise’s sustainability, and spread the knowledge to other batik crafters.

for the first phase, ecobatiK will be distributed in Java and bali, while ecobatiK Signature collection will be sold exclusively at each designer’s boutiques.

C U L T U R EB A T I K

EKONID

PhotoS: Dion KaSPaR PhotogRaPhy

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47 SoRotan eDition 2 / 2013

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Door nacht tot licht

Door storm tot rust

Door strijd tot eer

Door leed tot lust

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to a Javanese aristocratic family in mayong, central Java on april 21, 1879 Raden adjeng Kartini was

raised in a refined environment with spacious rooms, house servants, polite conversations in high Javanese and daily journal writing in quiet studies with private tutors at a level that was light years ahead compared to those of the toiling peasants of the hinterlands. as a member of noble family, Kartini was lucky enough to be enrolled in a Dutch School, a luxury only few could afford. no question, the school opened her eyes to western ideals that later became the seed of her activism.

following Javanese tradition, Kartini left school once she reached adolescence to be secluded at home, a common practice among the royalty to prepare young girls for marriage. During her isolation days, she read european magazines and newspapers. Kartini who spoke fluent Dutch, aslo corresponded regularly with her pan-pal in the netherland, ovink-Soer, where in many of her letters she protested against gender inequality in Javanese traditions such as arranged marriage at a young age. ironically, she couldn’t escape her destiny as a royal Javanese woman that forced her to accept a marriage proposal arranged by her father. Despite a scholarship to study abroad, she finally married a man 26 years her senior. her husband, the regent of Rembang Raden adipati Joyodiningrat, made her his fourth wife.

to deal with her frustration of being isolated, Kartini, with her husband ‘sapproval, decided to erect the first indonesian primary school for native girls which didn’t discriminate based on social status or religion. through her school, Kartini promoted education to young Javanese women while at the same time encourageing empowerment and enlightenment. With some help from the Dutch government, the school was opened in 1903 and taught according to a Western-based curriculum-a first of a dozen that were to follow suit across Java. to that end, she regularly corresponded with feminist Stella zeehandelaar and other Dutch officials with the authority to further the cause of Javanese women’s emancipation from oppressive laws and traditions. unfortunately, Kartini witnessed only little of her work as she died at a very young age after suffering from childbirth complications. She passed away only days after giving birth to her first and only son, Rm Soesalit Djojo adhiningrat in 1904.

Door Duisternis Tot LichtSeven years after her death, one of her correspondents, Jacques h. abendanon, published a collection of Kartini’s letters, entitled “from Darkness to Light: thoughts about and on behalf of the Javanese People” or “habis gelap terbitlah terang” in bahasa or “Door Duisternis tot Licht” in Dutch.

in her letters to her pen pals in europe, Kartini put her thoughts and nationalist sentiments in writing. Kartini’s concerns were not only in the area of the emancipation of women, but also concerned other problems of her society. Kartini saw that the struggle of women in obtaining their freedom, autonomy and legal equality was just part of a wider movement.

these letters have been recognized as one of the most influential literature in indonesia after anti-imperialist novel max havelaar-all were written in Dutch. Kartini’s original correspondences are now held in the Special collections of the Royal netherlands institute of Southeast asian and caribbean Studies (KitLv) in holland. Replicas of these letters are displayed today at the Kartini museum--her father’s house in Rembang, central Java.

the book was published in five editions with some additional letters included in the final edition. the book, nonetheless, attracted great interest in the netherlands given fact that it was well-written in Dutch by a native Javanese woman. this book also changed the way colonial government viewed native

women in Java.

Seven years after her passing, a Dutch family established the R.a Kartini foundation which initiated the development of “Kartini School” in Semarang in 1912 followed by other women schools throughout Java. indonesian first President Soekarno later declared her birthday, april 21, as “Kartini Day”-an indonesian national holiday.

C U L T U R ER . A . K A R T I N I

“I have been longing to make acquaintance with a ‘modern girl’ who is proud, independent, a girl who has all my sympathy! She who is happy and self-reliant, who

lightly and alertly walks through life, full of enthusiasm

and warm feelings; working not only for her own well-

being and happiness, but for the greater good of humanity as a whole.” –Raden Adjeng

Kartini

The Story of KartinimoRe than 100 yeaRS afteR heR Death, KaRtini RemainS an inSPiRation foR many inDoneSianS. fRom KinDeRgaRten StuDentS to high-RanKing officiaLS, moSt aDmit that KaRtini iS a heRoine Who haS changeD the face of Women in thiS moSt PoPuLouS muSLim countRy. heR StRuggLe anD fight foR genDeR equaLity haS been a Key SucceSS foR notabLe inDoneSian femaLeS, incLuDing buSineSS Women, eDucatoRS anD houSeWiveS.

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BORN

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C U L T U R ED E S T I N A T I O N I N D O N E S I A

tangkuban Perahu, a dormant volcano in

West Java, attracts tourists for its mysterious folklore and its beauty. the name tangkuban Perahu comes from the local Sundanese dialect and means turned-over or upside-down boat – a fitting description for the volcano’s distinctive shape.

according to ancient Sundanese folklore, however, tangkuban Perahu was created when a furious hunter by the name of Sangkuriang kicked over a gigantic boat. his anger was justified as legend has it the boat was an improbable challenge and last-minute request by a beautiful princess named Dayang Sambi. the princess challenged her groom in hopes that he would fail, as she learned she was about to marry her own son. unable to accept his failure and loss, Sangkuriang became furious tipped over the boat with one

Tangkuban Perahu

HOW TO GET THERE?

tangkuban Perahu is a 90 minutes drive from bandung, the capital city of West Java. if you lucky enough to ride a car, you can drive up to the rim. alternatively, you can walk from the gate at the main road. it’s 4,5km hike along the road or you can take the more interesting side trail that goes via Kawah Domas. it’s a very steep one-hour walk through the jungle and better tackled from the top down. it starts just behind the information centre and is easy to follow.

WHAT TO DO

Tangkuban Perahu

Walk around the rim of the main Kawah Ratu crater and in around 20 minutes you will come to the second crater, called Kawah upas. the trail here is steep and slippery in some parts; however, your special efforts wil be well rewarded when you notice the shade trees and breathtaking panoramic views on either side of the muddy land. this is the best time to freeze the moment through your camera. you can also head off to the third crater, the Kawah Domas.

Bandung

enjoy shopping for the family at the factory outlets in down-town, such as along the famous Jeans Street of ciamplas, or head north to Lembang, where you’ll satisfy your appetite with a local Sundanese meal on a hillside restaurant overlooking the lush countryside.

WHERE TO STAY

Sari ater hotel and Resort, also known as a hot Springs Water Park, is situated in the South of Subang Regency. the friendly staff and standard hotel amenities will pamper you during your stay and the natural healing qualities of the volcanic hot springs water, as well as the fresh air at 1,000 meters above sea level, will refresh you and get you ready for the next part of your indonesia trip.

• Located 30km north of bandung, the provincial capital of West Java, indonesia, it is the only crater in indonesia that you can drive up to its very rim.

• Last eruption in 1959

• the park’s entrance ticket is around Rp 20,000 per person

• Kawah Ratu is the huge “queen crater”

FACTS

kick. the legend is quite far-fetched indeed, but any visitor would excuse the wild imaginations of the Sundanese local’s ancestors as they witness for themselves the beautiful surroundings of the volcano’s crater.

tangkuban Perahu lies 30km to the north of bandung, the provincial capital of West Java, which is a city also worth experiencing, especially for those wanting to try the tempting Sundanese delicacies, the creative youth culture, and the many other attractions the city has to offer. the name bandung stems from the word bendungan, meaning dam. the legend of Sangkuriang says that the city of bandung came to existence when as a result of Sangkuriang’s anger, a dam broke and draining the water, thus leaving the plains to dry and to become what is now know as the city of bandung.

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MOUNT

@ guiDobacKeRRa

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literature masterpiece from the nobel literature prize nominee, Pramoedya ananta toer is a

must read publication. first published in bahasa indonesia as arok Dedes in 1981, arok of Java is the english version translated by max Lane in 2007. Set in 13th century Java, this is Pramoedya’s telling of indonesian history. Rebelliousness stirs among peasant farmers and brahmin priests alike. Slavery has returned and men, women and children labor to find gold for Java’s rulers. bearing the symbols of spiritual power, a young scholar-bandit and rebel appears, called arok-”he who upturns everything”.

the bare bones plot appears very simple, but there are enough episodes of political machinations and intrigue to keep the story satisfyingly multifaceted.

the plot is not the thing, though. it is the telling of the story that shows us Pramoedya’s genius. the richness of his descriptions of ancient Java is utterly compelling. one is drawn into the world and its rituals and beliefs so completely that reading the book is akin to being there.

the story sets out the beginning of the historical process that began on Java and gives the most vivid picture of political, cultural, and social forces which remain until today. it breaks the cultural rules related to castes of brahmin the intellectuals, the Ksatria the military, and the Shudra (the people, the farmers, the artisans, the laborers). in earlier time, people had been affected so much by those castes in society that made the people in the society acted differently towards people from different castes. the different attitudes shown by people from different castes had changed the mindset of most of the people in the society.

the brahmin with the absolute power never would accept people from the lower castes to n managing the government, even sharing the ideas for a better society degraded the brahmin, thus the death penalty, being caste away, and all the like were the right punishment. People in the century were really paying homage to their gods. the brahmin seen as holly people always cited sayings from Sanskrit to manage people in the society, thus the brahmin had really an important role in people’s lives.the Ksatria as the army had the responsibility to guard the Lady consort and the governor’s safety. While the Shudra, the lowest caste, would only have to dedicate themselves panning gold, making

weapons, farming for the sake of the lord governor for the tribute to the central government.

arok was a person with peasant background from the Ksatria caste emerged as an oppressor of the governor who possessed the power of ruling the government, managing people even by force. the governor in Java was not the same as the feudal lords of europe. in Java, a figure such as a governor was more like an appointed governor rather than hereditary lord. the governor would remain the government so long as he could pay tribute to the central government. the tribute was gathered by hard labor and slaveries.

arok’s origin usually described as a bandit or a brigand. his only target is the Lord governor of tumapel (a region on Java) who gains the absolute power and gives penalty with no mercy to those who rebel against him. he is also described as a brilliant young man who has had a hard life, yet has the great determination to learn new things. not only is he capable of fighting but also he is able to cite sayings in Sanskrit, which people believe only the brahmin caste has the ability to do it. his determination has opened his chance to receive an education of both at the feet of buddhist and hindu. he is Shudra, who by dint of talent and study becomes the brahmin the highest caste. he is Shudra, who by dint and talent and study, becomes the real Ksatria who has the ability to lead his army.

one of the reasons that Pramoedya wrote arok was to illustrate that the sophistication of politics in the distant past is no less complex than that of the present day. indonesia’s political awakening is not something that was birthed in the 20th or even 19th century but whose roots can be found hundreds of years ago. the philosophical and religious divide of arok’s world, where people ask suspiciously if a stranger is a worshipper of vishnu or Siva or if he or she is buddhist, has a resonance in a world where political ideologies have replaced the gods. it would be folly, however, to just read and examine the book in this light. it is a testament to Pramoedya’s skill that this tale is satisfying on many levels.

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by Pramudya Ananta Toer, 2007translation by max LanePublisher: Horizon Books, 387 pagesiSbn: 978-9810580452

AROK OF jAVAA NOVEL OF EARLY INDONESIA

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THIS

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