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Ilthabi Rekatama to Develop Plane Factory in Batam: Official
Investor Daily | March 25, 2013


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Aircraft manufacturing site owned by PT Dirgantara Indonesia, Bandung-West Java.

Indonesian company Ilthabi Rekatama is conducting a feasibility study on building an airplane factory in Batam city on Riau Island, a city government spokesman told reporters.

Ilham Eka Hartawan, a spokesman for Batam, said on Friday that Ilthabi was planning to build the factory on a 100-hectare plot within grounds of Hang Nadim International Airport.

Ilthabi is affiliated with Ilham Habibie, the son of former president and technology enthusiast B.J. Habibie. Ilham serves as president director at the company.

“They are serious about building a plane factory in Batam. The signing with BP Batam [Batam’s development authority agency] is expected to take place in June 2013,” he said.

Ilham had initially said that Ilthabi was only planning to build a maintenance, repair and overhaul center at Hang Nadim.

However, after further discussions with Batam, Ilthabi expressed an interest in building an airplane factory.

Batam, Ilham said, was a strategic place to develop Indonesia’s aviation industry.

“The market in the Asia Pacific has experienced a fast rising growth in the number of air passengers. It is a prospective business,” Ilham said.

B.J. Habibie was known as a technology enthusiast who pushed the development of a local aircraft industry. The engineer was key in the development of Dirgantara Indonesia, an aircraft maker that was previously known as Industri Pesawat Terbang Nusantara.

The company was a pioneer in Indonesia in the manufacture of airplanes.

Ilham said the company needed $500 million to build facilities that would enable it to produce the “Regio Prop” plane, similar in desogn to the Indonesian-made N-250, which was his father’s brainchild.

The Regio is a propeller plane designed to accommodate 90 passengers, and has a bigger capacity than the N-250, which can only accommodate 50.


Ilthabi Rekatama to Develop Plane Factory in Batam: Official | The Jakarta Globe




RI, Liberia agree to boost ties in historical visit
Bagus BT Saragih, The Jakarta Post, Jakarta | National | Mon, March 25 2013, 1:31 PM

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Liberian President Ellen Johnson Sirleaf (second from left) inspects the Guard of Honor at the Merdeka Palace during her state visit on Monday. She will follow up several agreements that aim to strengthen partnership in various fields — including trade, investment and capacity enhancement training — between the two countries following President Susilo Bambang Yudhoyono’s visit to Monrovia, Liberia. (JP/Jerry Adiguna)



President Susilo Bambang Yudhoyono and Liberian President Ellen Johnson Sirleaf agreed to enhance cooperation in various sectors during bilateral discussions at the Merdeka Palace on Monday.

Sirleaf is the first-ever Liberian President to visit the country since the two countries established diplomatic ties in 1965.

Foreign Minister Marty Natalegawa had informed the President that cooperation between the two countries had significantly improved following Yudhoyono and Sirleaf’s first meeting in Monrovia, Liberia, in February.

Marty, State Secretary Sudi Silalahi, Health Minister Nafsiah Mboi, Cabinet Secretary Dipo Alam, Liberian Foreign Minister Augustine Ngafuan and Liberian Agriculture Minister Florence Chenoweth also attended the meeting.

After the meeting, Yudhoyono and Sirleaf signed two Memorandum of Understanding (MoU) on trade promotion and industry capacity enhancement.

Sirleaf’s is in Indonesia to attend the fourth High Level Panel of Eminent Persons on the Post-2015 Development Agenda (HLP) meeting of which she, President Yudhoyono and British Prime Minister David Cameron are the panel’s co-chairs.

Yudhoyono and Sirleaf are scheduled to leave Jakarta for Bali later on Monday to attend the meeting.(ebf)
 
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Norway’s Seafood Industry Swims Its Way to Indonesia
Christi Hang | March, 2013

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A Norwegian Atlantic Salmon. (Photo courtesy of Norwegian Seafood Council/Tom Haga)



Norwegian salmon is migrating to Indonesia. And it’s not just the salmon, it’s the country’s king crab, scallops and cod, too.
The world’s second-largest seafood exporter has been shipping fresh and frozen seafood into Indonesia since 1988, and is making an aggressive push to be better known in the region.


“The demand in Southeast Asia is growing and it is inspiring to see,” said Christian Chramer, regional director of the Norwegian Seafood Council in Southeast Asia. “The economy is growing, there is increased infrastructure and retail growth.”

According to the council, Indonesia imports 79 tons of Norwegian seafood a week on average, 40 tons of which is salmon.

In total last year, Indonesia imported more than 4,000 tons of Norwegian seafood, 2,067 tons of it salmon.

With frequent deliveries to the capital, it has become easy to taste the quality of Norwegian seafood from Jakarta’s many fine hotels, restaurants and grocery stores.

As part of an initiative to familiarize Indonesia with Norway’s second-biggest export, the council sponsored a media trip to Norway, bringing journalists from Indonesia face-to-face with its fisheries industry.

It has also brought in Norwegian chefs for master classes in Jakarta, including one attended by Crown Prince Haakon Magnus and his wife, Crown Princess Mette-Marit, who were passing through on an official state visit.

The most recent was a master class led by Culinary Olympics gold medalist Sven Erik Renaa for some of Jakarta’s best chefs and culinary students.

Renaa showed attendees some of his innovative dishes, featuring prime examples of Norwegian seafood such as his lightly smoked Norwegian halibut, Norwegian king crab and oyster “linguini,” and his Norwegian salmon tartar with avocado “flying carpet” and vendace roe.

But beyond taste, the council wants to promote the health benefits of a diet including seafood. Renaa began his presentation with a briefing about food safety and how to handle the imported seafood.

Norway sends both frozen and fresh seafood to Indonesia. Fresh seafood can arrive in Jakarta within 48 hours, but if not handled correctly and preserved at the right temperatures, it can go bad.

Health benefits were also part of the media trip to Norway. The trip included a presentation from Livar Froyland, director of the National Institute of Nutrition and Seafood Research, who explained the science behind Norway’s seafood industry and the benefits of fish as part of a daily diet.

Froyland said after years of seafood research that it was now well-established that a diet featuring fish can protect against cardiovascular diseases, while there is also emerging evidence that fish can help with mental health, brain development and depression.

He encouraged people to actually eat seafood instead of taking supplements, in view of the added health benefits.

Replacing a red meat main protein with fish not only boosts Omega-3, iodine and protein intake, but also cuts out saturated fat.

Froyland addressed the fears associated with eating too much salmon or herring — namely mercury poisoning or ingesting other undesirables.

“Negative news is much more interesting,” he said, adding that the media had blown the “bad stuff” out of proportion.

“You would need to eat 1 kilogram to 1.2 kilograms every week to go over the [tolerable weekly intake],” he said. “And no one is eating that much.”

Froyland also covered the specific factors that made Norway’s farmed fish of particularly high quality.

Although considered inferior to wild salmon, Froyland argued that farmed salmon could actually be healthier, as it is easier to monitor the health of farmed fish or catch other wellness-related issues compared with their wild brethren.

Farmed fish are fed pellets that can be adjusted to provide optimal nutrients to the fish.

Norway has the second-largest farmed fish industry after China, and it takes its industry seriously.

Chramer said the Norwegian government observed strict regulations on salmon pens at farms: Each pen can only have a maximum of 2 percent fish, so the rest of the space, at least 98 percent, is open water for humane reasons.

Every farm must be licensed by the government and they are routinely inspected to ensure they are up to code. Even the number of harvests is regulated to ensure that the industry stays responsible.

But it is not just regulations and rules that make Norway a seafood expert.

Chramer said the country has three major, interconnected advantages in the seafood industry: its nature, history and sustainable management.

Norway’s location far to the north makes it ideal. The seas are cold, clear and can be very rough, which salmon prefer.

“Norwegians have been fishing and producing fish for hundreds of generations,” Chramer said.

This long history of working with and understanding the environment has made Norwegians experts in the fishing industry, he added. Building on a deep relationship with and understanding of their environment, Norwegians have placed a strong emphasis on sustainablity.

“It is becoming more and more important and can even be stronger with more awareness,” Chramer said.

Norway?s Seafood Industry Swims Its Way to Indonesia | The Jakarta Globe
 
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Megawati Departs to South Korea to Boost Cooperation
Jakarta Globe


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Indonesian Party of Struggle (PDI-P) Chairwoman Megawati Sukarnoputri on Monday embarked on a five-day visit to South Korea to address the Asian Leadership Conference.

The former president during the conference on Tuesday and Wednesday will emphasize the need for a new global institution that takes into consideration the uniqueness of each country in achieving more growth and improved welfare for their citizens, a press statement from the PDI-P said.

The statement added that current global institutions only support market mechanisms and fail to alleviate crises in Europe and the United States.

Megawati’s visit is aimed at enhancing cooperation and friendship between Indonesia and South Korea, the statement said, adding that South Korea plays a central role in economic growth and political stability throughout Asia and the rest of the world.

Former US Secretary of Sate Colin Powell, former Japanese Prime Minister Yasuo Fukuda, former Australian Prime Minister Kevin Rudd and former Finnish President Tarja Halonen will also speak at the Asian Leadership Conference, which is organized by South Korean newspaper Chosun Ilbo.

During Megawati’s stay in South Korea, she will also meet with South Korean President Park Geun-hye at the Blue House, as well as the Chairman of the ruling Saenuri Party, Hwang Woo-yea, and Jeju Governor Woo Keun-min.

Megawati will be accompanied by a number of PDI-P members, including deputy secretary general Hasto Kristiyanto, head of the PDI-P’s defense and security relations department Adreas Pareira, head of the PDI-P’s maritime and marine department Rokhmin Dahuri, and Nusyirwan, who heads the party’s small and medium enterprise department.

Also taking part in the delegations are Hasanuddin, chairman of the party’s West Java chapter, former Minister of Trade Rini Soemarno and academic Cornelis Lay.

Megawati Departs to South Korea to Boost Cooperation | The Jakarta Globe
 
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Sinar Mas firm to invest $1.6 billion in Liberian palm oil
Mariel Grazella, The Jakarta Post, Jakarta | Business | Tue, March 26 2013, 12:26 PM


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Palm oil refinery, owned by Sinar Mas Group

Sinar Mas Group will invest US$1.6 billion in the Liberian palm oil business to expand operations overseas.

Franky Oesman Widjaja, the CEO of Golden-Agri Resources Ltd. (GAR), a key Sinar Mas Group business unit, said that the company would disburse the funds over eight to 10 years.

Golden-Agri Resources has been seeking to become a virtual king in the market as it attempts to acquire to 40,000 hectares of new concessions, mostly in Kalimantan.

GAR, the world’s second-largest palm oil plantation operator, aims to operate 503,400 hectares of plantations in 2013, which would be up 8.6 percent from 2012 and would include areas developed in partnership with local farmers.

In 2010, the company invested in the Verdant Fund LP, a private equity fund that has a stake in Golden Veroleum (Liberia) Inc., which the Liberian government granted a concession of 220,000 hectares of palm oil plantations and 40,000 hectares in partnership with local farmers.

As of 2012, GAR has invested $70 million in Verdant Fund to develop palm oil plantations, while Veroleum has planted in 2,000 hectares of the concessions.

Franky added that, depending on conditions such as soil, the company would plant up to 10 hectares this year, an investment which could reach $100 million.

“We are getting 5 to 6 tons of yield per hectare. Thus, of all the planted land produces results, we could have a yield of 1.5 tons on our hands,” he added.

GAR is targeting a 5 percent to 10 percent increase in palm-product output this year. The company’s unaudited 2012 financial report said that GAR’s crude palm oil (CPO) production volume rose by 9 percent to 2.36 million tons, while palm kernels were up 14 percent to 554,000 tons last year.

The company earned $6.05 billion in revenue from operations, registering a 1.7 percent year-on-year accretion. Indonesia contributed 78.7 percent, or $4.76 billion, to revenue while China brought in 21.3 percent

In terms of products, CPO comprised 44 percent of revenue, while unbranded refined palm products brought in another 29 percent. Branded products, soybean meal and soybean oil contributed 8 percent, 8 percent and 4 percent
respectively.

Sirleaf said that Liberia might grant the company additional
concessions.

However, Sirleaf said that it was essential that the company work closely with communities. “We look forward to that and we look forward to them moving even further than that to start processing once the operations have come into full
maturity.”

Liberia has been rebuilding after a long civil war. The country held democratic elections in 2005, which Sirleaf, a Harvard-trained economist, won.
 
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Indonesia to burn $80 million on Myanmar coal
MONDAY, 25 MARCH 2013 15:26

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The Jakarta Globe has reported that Bukit Asam, an Indonesian state-owned coal mining company, plans to invest US $80 million in a mine-mouth coal-fired power plant in Myanmar.

The proposed plant will be the biggest of its kind in the country. It has not yet been announced where the mine will be located.

Speaking to The Jakarta Globe on Friday, Joko Pramono, Bukit Asam’s corporate secretary, said, “This energy project has a capacity of 2x200 megawatts. There is already a research team that has done a study on it.”

There are currently 15 Indonesian state-owned firms eyeing Myanmar for business expansion, said Indonesian Minister Dahlan Iskan, according to the report.

Last November, Indonesian Foreign Minister Marty Natalegawa visited Myanmar on a fact-finding visit for ASEAN.

Indonesia to burn $80 million on Myanmar coal




Invest U.S. $ 1 Billion in Upstream, PGN Ready to be Representative of Government in Upstream Reply


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PT Perusahaan Gas Negara, Tbk (PGN) has allocated up to U.S. $ 1 billion to make acquisitions Ketapang Block in Madura and Block Bengkanai in Central Kalimantan.

President Director of PGN, Hendi Prio Santoso said that investment fund of U.S. $ 1 billion, it is used as an investment fund to acquire two oil and gas blocks. Funding does not include the capital expenditure of U.S. $ 250 million to build infrastructure in both block.

Since year 2009 PGN has repositioned the company’s long-term business development. Through PT Saka energi Indonesia, by investing in Block Ketapang that produces about 25,000 barrels of oil per day and 50 MMscfd of natural gas, Hendi added (March 25, 2013).

Saka Energi today has also invested in Block Bengkanai which has gas reserves of 250 bcf. In addition, the company has now also exploring the possibility to invest in the other five oil and gas blocks in the country.

Hendi said by this investment, it is ready to represent the national interest as an integrated gas operating company from upstream to downstream.

Saka Energi is a subsidiary of PGN, in the areas of oil and gas exploration which was formed in June 2011. Saka Energi was established to secure PGN’s gas supply.

Source : Navigasi bisnis, market, finansial & berita politik terkini dari Bisnis Indonesia - Bisnis.com, March 26, 2013

Invest U.S. $ 1 Billion in Upstream, PGN Ready to be Representative of Government in Upstream « Energy Way

Indonesia to burn $80 million on Myanmar coal
MONDAY, 25 MARCH 2013 15:26

Bukit-Asam-coal-mine.jpg


The Jakarta Globe has reported that Bukit Asam, an Indonesian state-owned coal mining company, plans to invest US $80 million in a mine-mouth coal-fired power plant in Myanmar.

The proposed plant will be the biggest of its kind in the country. It has not yet been announced where the mine will be located.

Speaking to The Jakarta Globe on Friday, Joko Pramono, Bukit Asam’s corporate secretary, said, “This energy project has a capacity of 2x200 megawatts. There is already a research team that has done a study on it.”

There are currently 15 Indonesian state-owned firms eyeing Myanmar for business expansion, said Indonesian Minister Dahlan Iskan, according to the report.

Last November, Indonesian Foreign Minister Marty Natalegawa visited Myanmar on a fact-finding visit for ASEAN.

http://www.bnionline.net/index.php/...nesia-to-burn-80-million-on-myanmar-coal.html
 
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Driving the Asian Century Beyond Clans, Cliques, Clones in Indonesia
Michael L. Bak | March 27, 2013


Dynamic Asia. Amazing Asia. Rising Asia. Wherever you turn, wherever you read, wherever you tweet, facebook or youtube, nothing could be as clear; Asia is where it’s at. Action. Growth. Change. If Asia is the future, then welcome to the mothership: Indonesia.

China is dominating the world’s headlines and cover pages; are we now witnessing the fall of the West and the rise of the rest, or as The Economist most recently put it: “is America ready to be Number 2”? We’d be forgiven for instantly gazing China-ward. Even the OECD says China will become the number one economy in 2016; but there’s a whole lot of Asia out there that’s not the Middle Kingdom. It’s the Asian Century after all, and Indonesia is leading the charge.

Indonesia’s democratic credentials bolster its confidence in regional security and economic matters, from Myanmar’s transition to a more engaged and engaging Association of Southeast Asian Nations. Growing economically by leaps and bounds — many predict the land of the mystic Garuda will outpace China and India in 2013, barreling along at 6.3 percent this year. But the story of the Asian Century goes well beyond markets, per capitas, and growing middle classes.

Crucial to our story, Indonesia brings a seriously democratic (if not messy) government, fiercely independent (and wildly free) press, one of the world’s most diverse countries (in so many aspects), and a super-active civil society (masters of multi-platform activism). Malaysia may have staked a claim to “Truly Asia,” but Indonesia definitely gets the Oscar for animating the Asian Century.

With Indonesia’s colorful democracy leading, the Asian Century will tell the story of Southeast Asia breaking the bonds of socio-economic imperialism, ditching patronage and growing through enlightened governance.

Southeast Asia may look north for investment from China, and west for entrepreneurial inspiration from India, but it will look to its core, to Indonesia, to inspire it. Indonesia has led the way through a home-grown democratic experience, tried and failed and tried again approaches to audaciously blaze a new path. Transparency and accountability the mantra; cultural traditions of mutual cooperation, or gotong royong, the background.

Take note Myanmar. You’re facing many of the same challenges stared down and overcome by your southern neighbor: military dominance, poorly developed political traditions prior to an impressive transformation from authoritarianism, realizing an unlikely nation carved from colonial boundaries, frighteningly violent intergroup relations, and even excessively inward-looking religious fanatics.

Indonesia’s stunning achievements demonstrate that the Asian Century can move beyond the troika of woes: clans, cliques and clones.

Of clans: Inspired by direct elections, increasing Internet accessibility, Facebook fanaticism and the smart-phone revolution, Indonesians increasingly reject rule or advantage based upon clan allegiance. Family fiefdoms have lost their luster. We see more and more state agencies, at all levels, seeking the best and brightest of today’s generation to reform and build the institutions propelling the world’s fourth-most populous country onward to the heart of the Asian Century.

Of cliques: Indonesia has successfully shown that an Asian-grown democracy can eschew governance based on religious, social or political cliques. Governance is now about driving growth, inspiring youth and expanding social capital. Religious cliques — rejected. Business-party cliques — been there, done that. Military cliques — the way of the past, not the future. Where the reigns of policymaking remain in the hands of a few — call them religious super-elites, party elites, military school graduating classes or the old boy network — policymaking fails.

Cliques are fragile associations that wither and collapse under the weight of their own hubris and lack of innovation. Diversity — in the workplace, in the community and in the nation — proves crucial again and again to bolster economic and social capital.

Indonesia’s history of unity in diversity no longer remains the hollow rhetoric of a dictator’s cliquish regime. Overcoming socio-economic strife together, while at the same time building vibrant democratic institutions and unprecedented personal freedom, is today’s Indonesia. Indonesians have proven that diversity — of people and opinion — serves the nation the best.

Of Clones: Post-1997 Asian Financial Crisis, Indonesia opened the flood gates of foreign aid. But remade in the image of Western benefactors? No. Enlightened Indonesian officials smartly ensured adherence to the Paris Declaration (an Indonesian deputy interior minister handed me a highlighted copy) ensuring national ownership, south-south collaboration and equal partnership to a development agenda that benefits Indonesians. Period. Indonesians are not in the business of reshaping themselves in the image of any Western “advanced industrial” or democratic country. They’re building their own home and, you know, it looks pretty good.

While critics remain, enlightenment has prevailed. Indonesian democracy allows all civil society to flourish, and the messy politics of demonstrations and activist NGOs and clerics have all lent themselves to strengthening — not abandoning — the Indonesian dream of a democracy built upon the bedrock of ethno-religious and political diversity.

Political and civil leaders have eschewed any attempts by foreign powers to remake them in a foreign image; they have refused to be cloned, by whomever and for whatever reason. A powerful, home-grown example of how to benefit from globalization, maintain unique characteristics of a nation and its people, and build strong foundations that propel the country into the heart of the Asian Century.

Indonesians push beyond clans, cliques and clones, crucially developing their own independent system and path. A path that rejects conventionally held wisdom. A path that rejects the politics of cliques, rejects the primacy of clans and guards against foreign cloning — ensuring independence from all quarters, be they friendly governments, big business or international civil society.

Indonesia’s experience — for all its faults and bumpy potholes and the progress yet to be made — can and should become a beacon for ASEAN policymakers, business people and civil leaders to explore.

Indonesia is showing Asia how to cut its own path forward, and lead the triumphant charge of the Asian Century.


Michael L. Bak is creative and collaboration director at Strategic Asia, a consultancy promoting cooperation among Asian nations. A former longtime resident of Indonesia, he now lives in Bangkok and Hong Kong and can be contacted at michael.bak@strategic-asia.com.
 
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Indonesia island seeks clean energy future
Sumba Island, with little electricity only last year, now plans to use only renewable energy by the year 2025.

Indonesian island aims to be clean energy model - YouTube
A quiet corner of Indonesia is trying to turn itself into a model of clean energy use.

Sumba Island is aiming to function completely on renewable energy sources by 2025.

Only one year ago, most people the island had no electricity at all.

Today, however, hyrdopower and solar panels have brought simple advances to the daily lives of the residents.

Al Jazeera's Step Vaessen reports from Sumba Island, Indonesia.
 
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Indonesian flag carrier airline firm earns int'l awards
Source: XINHUA | 2013-3-30

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JAKARTA, March 30 (Xinhua)-- Indonesia's state-run airline firm Garuda Indonesia earned two awards for its service excellence awarded by two international consulting agencies, local media reported Saturday.

Garuda earned "2012 Domestic Airline of the Year" as 93.3 percent of 28,000 consumers in Indonesia responded of satisfied flying with the airline throughout last year in a survey carried out by an Australia-based Roy Morgan Research.

The award was handed over on Thursday night to Garuda Indonesia President Director Emirsyah Satar here. "The consumers' assessment for Garuda's service excellence was far higher than their assessments for the other airlines operating in Indonesia,"Roy Morgan International Director Ira Soekirman was quoted by the tempo online as saying in the handing over ceremony.

The nation's flag carrier airline also received another award titled "ASEAN Premium Airline of the Year"on the same day, awarded by Frost & Sullivan, a U.S.-based international business research and consulting agency.

The award was resulted from the agency's research on airline firms providing regular and full service flights that transport at least 20 million passengers per year, airports and plane maintenance service firms.

Learning from the survey results, the agency assessed that Garuda Indonesia has demonstrated significant improvements in various operation aspects throughout last year. It made the agency give the award in airline category.

Garuda earned "The Best International Airline" award mid last year, awarded by Roy Morgan. It brushed aside Singapore Airlines, Air New Zealand, Emirates and Cathay Pacific airlines to earn the title. The award was resulted from a survey on airlines serving flights to Australia.
 
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Indonesian flag carrier airline firm earns int'l awards
Source: XINHUA | 2013-3-30

Garuda earned "The Best International Airline" award mid last year, awarded by Roy Morgan. It brushed aside Singapore Airlines, Air New Zealand, Emirates and Cathay Pacific airlines to earn the title. The award was resulted from a survey on airlines serving flights to Australia.
Congrat! You even beat Singapore Airline? Unbelieveable.
 
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Health-Care Spending to Double by 2018
Damiana N. Simanjuntak | March 30, 2013

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The private sector is tipped to soon bear a greater burden of health-care spending. (JG Photo/Yudhi Sukma Wijaya)

Business research group Frost & Sullivan predicts Indonesia’s health-care spending will reach $60.6 billion in 2018, more than double last year’s estimate of $26.4 billion.

Nitin Dixit, a senior health-care industry analyst at Frost & Sullivan, said in Jakarta on Wednesday that health care spending in
Asia-Pacific countries was expected to double in line with increasing demand for quality health-care services and better life expectancies.

Dixit said the Indonesian market would be supported by government programs and policies resulting in increased spending and access to health services.

“In Indonesia, health care spending will reach $60.6 billion in 2018, assuming the average growth rate is 14.9 percent per annum from 2012 to 2018,” Dixit was quoted as saying by Investor Daily.

During the same period, Dixit said per capita spending on health care would grow 13.8 percent a year, from $108.90 last year to $237.10 in 2018.

Frost & Sullivan also forecast that the private sector would play a greater role in the country’s health-care sector and overtake spending sourced from the government. It estimated the private sector will account for 53 percent of health-care spending in 2018, up from 49 percent now.

Sutoto, the chairman of Indonesian Hospital Association, agreed with the assessment, adding that Indonesia’s health-care industry would produce abundant opportunities for growth, particularly after the full implementation of universal health care in 2014.

The universal health-care scheme, written into law by the House of Representatives in 2011, aims to provide health insurance for 117 million Indonesian workers starting next year.

The current scheme, managed by state-owned insurer Jamsostek, only provides coverage to 11.5 million workers.

President Susilo Bambang Yudhoyono has called for an initial fund of Rp 25 trillion ($2.6 billion) for the program.

“Hospitals will be full when universal health care comes into effect due to the ease of access to health-care services. On the other hand, there will be more people demanding better-quality services,” Sutoto added.

Hannah Nawi, associate director of health-care practice for the Asia Pacific at Frost & Sullivan, said the shift in people’s lifestyles would also boost growth in health care.

http://www.thejakartaglobe.com/business/health-care-spending-to-double-by-2018/582570

Indonesia’s healthcare spending set to expand
The Jakarta Post, Jakarta | National | Sat, March 30 2013, 10:30 AM


Indonesia’s healthcare expenditure is predicted to reach US$60.6 billion in 2018 with a growth of 14.9 percent over the 2012-2018 period on account of faster growth in age groups above 35 years, urbanization and an increase of lifestyle-related diseases such as cancer and diabetes, says research and consulting firm Frost & Sullivan.

Hannah Nawi, Frost & Sullivan’s Healthcare Practice Associate Director for Asia Pacific, said Indonesia’s median age was 28 years and that age groups beyond 35 years were projected to grow faster than the average from 2010 to 2014.

“Urbanization and a slowly aging population will the drive demand for healthcare in Indonesia,” Hannah said recently.

She added that increasing chronic and lifestyle-related diseases, including cancer and diabetes, especially in big cities in the country, would also play a large role in the increasing public demand for healthcare services in the next few years.

“In terms of the healthcare burden, once you are a cancer patient, you’ll be in treatment for life. The same goes for diabetes,” Hannah said, adding that it could put a strain on healthcare institutions.

Separately, the head of the Indonesian Hospital Association (PERSI), Sutoto said that the national healthcare system under the Social Security Providers (BPJS) Law would also play a significant role in increasing the country’s total healthcare expenditure.

The health insurance, which will cover 121.6 million people as of Jan. 1, 2014, will be made available in stages for all eligible Indonesians through 2019.

“Many hospitals questioned their readiness ahead of the implementation of the BPJS next year, when in fact it actually opens more opportunities for the healthcare industry, especially for private hospitals,” Sutoto said. “Around 86 million low-income people who have no access to healthcare services, will be able to receive hospital services by the time it is implemented, and the government will pay their premiums,” he added.

The country, however, still faced a lot of challenges in fulfilling the increasing demand for healthcare services, Nitin Dixit, Frost & Sullivan’s healthcare senior industry analyst, said.

“The first challenge is the uneven distribution of resources. The hospital, the doctors, the entire healthcare infrastructure is unevenly distributed,” Nitin said.

Sutoto said that the country’s doctor-to-people ratio was only 3 doctors per 10,000 people, much less than Malaysia, which has 9 doctors for every 10,000 people and Cuba, which has 64 doctors for 10,000 people.

“We have a total of 73 medical faculties across the country, but yet we are still lacking doctors, especially specialist doctors,” he said.

He also said that hospitals should start recalculating their service costs and make it more efficient ahead of the BPJS, as the government would apply an equal healthcare tariff across all healthcare institutions to ease insurance claims.

“We urge all hospitals to reduce their costs and make it more efficient ahead of the BPJS,” Sutoto said. “At the same time, we hope the government assists us and lowers taxes, as well as electricity and water tariffs for hospitals, as we will have to provide more third class rooms for low-income people,” he said. (nad)

Indonesia
 
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Bank Indonesia wants to become 'hawkish'

Satria Sambijantoro
The Jakarta Post/Asia News Network
Sunday, Mar 31, 2013
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INDONESIA - Bank Indonesia (BI) will focus on maintaining economic stability, not economic growth, this year.

"For BI, the theme of 2011 was to propel economic growth, but for 2012 the focus is on stability and the sustainability of our economic expansion," BI Deputy Governor Perry Warjiyo said on Thursday at the release of BI's 2012 annual economic report, "Maintaining Stability to Support Sustainable Economic Growth".

His statement signals that the central bank is preparing to adopt a hawkish stance and tighten up the economy, having been seen as being monetarily loose for a long time.

The central bank will focus on Indonesia's deteriorating external imbalances, and managing recent inflation blips, he said. Monetary tightening will prioritize macro-prudential measures, not interest rate adjustments.

After imposing down payment limits of 20 to 30 per cent on housing and automotive loans last year, BI is mulling stricter loan-to-value (LTV) requirements for industries such as automotive and construction, whose products suck in high levels of imports.

"We are examining the possibility of macro-prudential regulations for producers, having previously applied them only to their customers," said Perry.

He explained that LTV regulations for industry "are not intended to impede credit growth, but improve the risk management of the industries".

The newly appointed deputy governor argued that macro-prudential measures were necessary since the central bank forecast only modest improvement in Indonesia's external imbalances, which became the major worry for investors and policymakers throughout 2012.

By the end of 2013, Indonesia's current account deficit is expected to decline slightly to 2.5 per cent of gross domestic product (GDP), from 2.7 per cent last year, mainly caused by stalling economic recovery reducing exports, coupled with high imports of oil for subsidized fuel.

The central bank also forecast the consumption of subsidized fuel to top 50 gigaliters this year, higher than the allocated quota - a situation that, if no immediate resolution is agreed, would prompt "negative sentiment to fiscal sustainability that in turn will apply further pressure to the rupiah", according to BI's annual economic report.

BI also vowed to maintain its independence ahead of the 2014 elections, especially as recent developments show that many central banks - notably the Bank of Japan, the Federal Reserve and the European Central Bank - have started issued quantitative easing and other monetary policies whose implementation was attributed to a strong push from politicians.

With Indonesia recently subject to rising inflation and a widening current account deficit, calls have mounted for BI to switch to a hawkish monetary footing - a term for an inflation-focused central bank that prioritizes monetary tightening to maintain economic stability, which usually comes at the expense of economic growth.

BI was widely perceived as pro-growth and monetarily loose under Governor Darmin Nasution. The central bank has kept its benchmark rate at an historic low of 5.75 per cent since February last year.

The central bank will keep the benchmark rate unchanged at least until the end of this year, not making any adjustment "unless there is a severe shock in price level", such as a sudden increase of price of subsidized fuel, said Perry.

Bank Indonesia wants to become 'hawkish'
 
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Indonesian Batik Takes Berlin by Storm
Sylviana Hamdani | April 01, 2013

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At this month\ At this month\'s Internationale Tourismus Borse Berlin 2013, batik designs formed a prominent part of the pavilion operated by Indonesia, a partner country of the event aimed at boosting tourism. (JG Photo/Sylviana Hamdani)

Batik from Solo, Central Java, is renowned for its delicate intricacy. The hand-drawn textiles are traditionally the result of meditation, fasting and years of training. Their repeated geometric designs are actually philosophical symbols that represent ancient Javanese beliefs and local wisdom.

These batiks were highlighted at the recent Internationale Tourismus Borse Berlin 2013. Participants from the Solo Batik Carnival presented these traditional textiles as fabulous costumes that drew the attention of many international visitors attending the tourism fair in Germany.

“[The visitors] are all very enthusiastic,” said SBC secretary and coordinator Quinta Rizqino. “Many complimented us on our costumes and took pictures with us.”

That day in Berlin, Quinta was wearing a grand batik costume with a sekar jagad (a floral patchwork motif) design, which was embellished with outspread wings and a golden crown. Traditional Panji masks, in various colors and designs, were attached to his crown and sleeves.

Panji is a traditional Javanese mask that represents a gentleman of noble character.

The sekar jagad motif represents Indonesia’s rich natural and cultural diversity.

Indonesia was the official partner country of ITB Berlin 2013. Four SBC instructors and one SBC participant were selected to perform at the tourism fair and escort guests at the Indonesian pavilion in the Messe Berlin fairgrounds.

“After taking pictures with us, many of the visitors asked about Indonesia,” said SBC instructor Ika Noviani. “It’s an opportunity for us to promote Indonesia’s tourism, as well as introduce them to our hometown Solo.”

Ika was wearing a beautiful royal blue ball gown made of batik with an intricate parang (knives) design. Silver masks of Dewi Sekartaji, the spouse of Panji, embellished her dress and wings.

SBC is a street carnival held in Solo every year. At the carnival, participants present fabulous costumes made of batik. Each year, a few carnival participants are selected to represent Indonesia at various international events, including ITB Berlin 2013.

While the task may seem glamorous and exciting, it is definitely not an easy one.

“The person selected [to represent Indonesia abroad] has to be perfectly fit and healthy,” Ika said. “He or she should be physically strong, independent and able to take care of themselves during the trip.”

Each person has to carry costumes weighing 15 to 18 kilograms to their performance venues. On location, they have to be able to assemble their costumes, which consist of dozens of small parts, and put them on without any help.

They should also be able to apply their own makeup and do their hair by themselves in a limited amount of time.

There are not any assistants, hairstylists or makeup artists assigned to help them.

Take Tisia Bernanti Windansari, for example. Tisia, a petite 21-year-old student, dragged her bulky duffel bag containing her costume for hundreds of meters from the Messe Berlin parking lot to the Indonesian pavilion at the center of the gigantic building, all on her own.

The bag weighed about 17 kilograms. Sweat was pouring down her face, even on that chilly morning.

But if she was tired, Tisia didn’t show it. When she and her SBC colleagues were welcoming the guests to the Indonesian pavilion, she was beaming with a pretty smile. The student looked like a royal Javanese princess in her terra-cotta gown, made of batik ceplokan (batik with a circular floral design and silk satin), and a tall golden crown on her head.

“When I’m wearing my costume and the people see me, all the fatigue is gone,” Tisia said. “I feel so proud and appreciated by their attention.”

Tisia, who is studying psychology at Universitas Sebelas Maret in Solo, has been participating in SBC for five years. She first joined SBC in 2008 because she was interested in the traditionally themed carnival.

“It’s so unique,” she said. “I think it’s the only carnival in the world featuring batik. And as a citizen of Solo, I really want to perpetuate our traditional heritage, especially batik.”

SBC was proposed by a group of textile businesspeople in Solo in early 2008.

“They wanted to have an annual event that highlights Solo’s cultural heritage, especially its textiles,” Quinta said.

These businesspeople then met with Dinan Fariz, the founder of the popular Jember Fashion Carnival in Jember, East Java. Together with Dinan, they conceptualized the Solo Batik Carnival for their city.

The concept was then presented to Joko Widodo, the mayor of Solo at the time.

Joko approved of the concept, and the carnival has been held on the major streets of Solo in June every year since.

“We always pick a day in June in order to allow schoolchildren [who are usually on holiday at the time] to participate in SBC,” Quinta said.

The sixth edition of SBC is scheduled to take place on June 29.

About 100,000 people, consisting of Solo inhabitants and domestic and international tourists, usually overflow the major streets of the city to attend the carnival.

“It’s the most awaited event of the year,” Quinta said. “It’s also a major item in the national tourism agenda.”

More than 300 participants will partake in the carnival this year.

Each participant will design their own costumes according to that year’s theme and present them during the carnival. They will also dance and perform theatrical acts during the event.

Beginning in April, all participants are expected to attend workshops, held every weekend in the Solo municipal office.

“We’ll help them to choose the right, yet inexpensive, materials for their costumes,” said Ika, the instructor.

All the batik used during SBC should be hand-drawn or hand-stamped pieces from Solo. But to economize, participants are recommended to use old batik or batik scraps from local tailors.

The costumes may be embellished with other fabrics and materials, such as sequins and crystals, to make them more stunning. The participants are expected to design and create the costumes themselves.

But if participants don’t know how to make a pattern or sew, they needn’t worry. The instructors will teach them all they need to know about how to make carnival costumes from scratch.

All SBC workshops are free of charge.

“It’s been an enriching experience for me,” Tisia said. “From SBC, I’ve learned how to make costumes, do stage makeup, dancing and modeling.”

SBC participants come from all walks of life, from schoolchildren to retirees, aged 7 to 60.

Parents are allowed to accompany their young children participating in the carnival during the workshops and help them in creating the costumes. “I think it’ll be very good for young participants to learn about their culture, as well as some useful practical skills,” Ika said.

Ika teaches basic Javanese dance movements to the participants. “I have to be very patient and understanding,” she said. “The participants come from many different backgrounds. Many of them have never danced in their lives at all.”

Their tireless efforts are not in vain. SBC’s presence attracted many visitors at ITB Berlin 2013 to the Indonesia stall.

“Their costumes are so pretty and colorful,” said Rainer Gutwirth, a travel consultant based in Berlin.

Gutwirth said SBC’s colorful costumes represented the cultural diversity of Indonesia. “I think it’s a very, very interesting country, very different from us,” he said. “[My wife and I] would like to go to visit Indonesia someday.”

In January, SBC also won the President’s Trophy in the Tournament of Roses Parade in Pasadena, California.

“It’s unforgettable,” said Tisia, who participated in the Tournament of Roses Parade this year. “We walked over 10 miles [16 kilometers] in the freezing weather during the tournament. It was very tiring, but the audience cheered for us.”

Ten SBC participants took part in the Tournament of Roses Parade this year, dressed in bright batik costumes with elaborate headpieces. They paraded alongside Indonesia’s float, titled “Wonderful Indonesia,” in the Jan. 1 event.

“We’re so proud to have become Indonesia’s cultural ambassadors abroad through our involvement with SBC,” Quinta said.


The Jakarta Globe attended ITB Berlin 2013 as a guest of the Indonesian government.
Solo Batik Carnival


For more information, contact sbc@solobatikcarnival.com or quinta_craft@rocketmail.com

Indonesian Batik Takes Berlin by Storm | The Jakarta Globe



Indonesia Grabs the Spotlight at Berlin Tourist Fair
Sylvania Hamdani | March 16, 2013

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Indonesia occupied more than 500 square meters in the exhibition grounds of Messe Berlin at last week\'s ITB 2013 event, which it used to showcase the country\'s arts, culture, cuisine and hospitality. (JG Photo/Sylviana Hamdani)


Visitors to the world’s largest tourism fair in Berlin are used to seeing the cultures of exotic locales put on display as those places strive to establish themselves as the must-go tourist destinations.

So when Indonesia took the spotlight last week at the 5,500-guest gala opening ceremony for the Internationale Tourismus Borse 2013 in Berlin, it pulled out all stops to make an impact.

The virtual tour guide for guests was none other than President Susilo Bambang Yudhoyono. “Indonesia is a complete destination,” he explained, “from family recreations to international comforts, from water sports to volcanic mountains, from exotic traditional villages to modern shopping and entertainment centers in Indonesia’s big cities, and much more.”

Following the president on stage was Indonesian conductor Aminoto Kosin, who led both the classical Berlin String Construction ensemble and a group of traditional Indonesian musicians from across the archipelago in a cross-cultural, multi-instrumental concert titled “Indonesia, the World’s Heart of Wonders.”

With the eyes and ears sated, it was time for the taste buds. After the show, Indonesian celebrity chef Vindex Tengker served 30 iconic Indonesian dishes to guests, showcasing the country’s cuisine.

Reaching the point where Indonesian culture took such a prominent place at the global event was the product of much laboring — and spending — on the part of the nation’s tourism authorities, who are keen to develop the sector.

Indonesia has participated in ITB Berlin since 1967, but this year it became the first Association of Southeast Asian Nations member selected as an official partner country.

Sapta Nirwandar, vice minister of tourism and creative economy, had two years ago proposed that Indonesia become an official partner country of the event.

“It’s such a prestigious position,” Sapta said. “We struggled very hard to get it.”

Indonesia had to convince the board of directors of Messe Berlin, the organizer of ITB Berlin, of the country’s expertise, experience and seriousness in organizing such events.

To help make the case, the vice minister invited some of the Messe Berlin directors to attend the Asean Tourism Forum held in Manado, North Sulawesi, in January 2012.

“There they saw that we’re accustomed to organizing such international events,” Sapta said.

To become an official partner country, Indonesia invested about $5 million.

“The amount includes the license fee [to become an official partner country] of around 600,000 to 700,000 euros [$778,000 to $908,000],” Sapta said.

The March 5 gala show, conducted at the opening ceremony of ITB Berlin 2013 in the Internationales Congress Centrum, was one of the perks of Indonesia’s elevated status. The country also received strategically positioned advertisements in ICC Berlin, Messe Berlin and all printed materials during the five-day tourism fair.

During his speech at the opening, Yudhoyono said that during the ongoing economic crisis, tourism has become “a critical engine that drives investments and stimulates economic growth.”

“Tourism and international travel creates over 285 million jobs worldwide,” the president said. “Tourism accounts for 9 percent of the world’s GDP.”

In Indonesia, around 9.2 million people, or about 8.4 percent of the Indonesian labor market, are employed in tourism, and the value of the sector totaled $33.8 billion, or about 3.9 percent of the nation’s gross domestic product.

Yudhoyono presided over the ceremony along with German Chancellor Angela Merkel and Berlin Mayor Klaus Wowereit.

Prior to the opening ceremony, a group held a peaceful demonstration in front of the ICC. About 20 activists from international nongovernmental organization Watch Indonesia! held placards that read “Justice,” “Save Our Environment” and “No Forest Destruction.”

They held a small exhibition in front of the ICC, showcasing pictures of the 2006 mudflow in Sidoarjo, East Java, polluted streets in Jakarta and forest destruction in Kalimantan. “Indonesia is beautiful, but you have to do something to solve these issues,” said Marianne Klute, an activist with the group.

Klute, who previously lived in Indonesia for 15 years, wanted to remind Yudhoyono to take immediate action on these issues. She also hoped the demonstration would prompt high-ranking German officials to raise their voice on these issues when dealing with their Indonesian counterparts.

“This is a global society,” Marianne said. “So, this is also our [Germany’s] responsibilities. We want a good world for our children and grandchildren.”

Sapta was accepting of the demonstration. “It’s OK,” he said. “It’s part of democracy. The people can say anything. And what they say will become precious input for us.”

Sapta said that the government is already taking action to solve the issues raised. “We’re now a champion for climate change programs,” he said. “President SBY also talks about climate change issues everywhere he goes.”

In addition, Sapta said he believed that tourism was key to the environment.

“Sustainability is a must for the tourism industry,” Sapta said. “No tourists will come if our forests are gone or our beaches are dirty.”

ITB Berlin was open for trade visitors from March 6 to 8, and open to the public for the two days that followed.

Indonesia occupied more than 500 square meters in the gigantic exhibition grounds of Messe Berlin.

Indonesia’s main exhibition area was a two-tiered wooden deck, accentuated with a life-sized, red-and-white hull of a phinisi , the traditional ship of the Bugis people in Makassar in South Sulawesi.

“We’re focusing on marine tourism this year,” Sapta said.

Indonesia is the world’s largest marine country with over 81,000 kilometers of coastline, 28,000 marine flora and 350 marine fauna species. About 12 percent of the world’s coral reefs are in Indonesia.

About 118,000 people arrived in Indonesian on cruise ships last year, and the government aims to increase that number to 500,000 people by 2016.

“We’ve launched a seaport development program,” Tourism and Creative Economy Minister Mari Elka Pangestu said. Ten seaports, including Benoa port in Bali, will be renovated this year or next. They will be ready to receive large luxury passenger liners by the end of 2014.

At the ITB event, Indonesia highlighted 16 tourist destinations that Mari’s ministry is making the focus of its efforts to develop infrastructure over the next three years.

The destinations include the Borobudur Temple in Central Java, Lake Toba in North Sumatra, Komodo Island in East Nusa Tenggara and Raja Ampat in West Papua.

“First, we aim to extend international direct flights to Indonesia, with the new airport in Bali scheduled to be completed by the middle of this year and the new airport in Lombok now ready,” the minister said.

Second, Mari aims to boost tourism investment in Indonesia in a bid to improve facilities for international visitors.

According to TripAdvisor’s 2012 Industry Index, Indonesia is the most profitable investment market for the hospitality industry, ahead of Brazil, Russia and United States.

Direct foreign investment in the hotel and catering sectors hit a record high of $786 million last year. Domestic investment in the same sectors has more than doubled from $39 million in 2011 to $101.5 million in 2012. International tourist arrivals in Indonesia last year stood at 8.04 million, up 5.2 percent on a year earlier.

The ministry aims to increase international tourist arrivals to between 8.6 million and 9 million this year and 10 million in 2014. Today, most tourists coming to Indonesia are from neighboring countries Singapore, Malaysia and Australia.

On average, these tourists stay about 7.7 days and spend approximately $2,148 on their visits to the country.

Tourism authorities are seeking to broaden the country’s appeal, seeking to attract more visitors from Central and Eastern Europe, and the Middle East.

“That’s why ITB Berlin becomes very crucial for us,” Sapta said. “Germany is located in the heart of Europe. Thousands of visitors will come to this event and learn about Indonesia. Some of them will surely be interested to visit our country.”

The ministry predicts an increase in visitor numbers of between 10 percent and 15 percent following the tourism fair.

Last year, 156,000 German tourists traveled to Indonesia, up 10 percent from a year earlier. The number is expected to reach between 170,000 and 200,000 this year.

The vice minister argued that promotions were necessary to keep international tourists coming to Indonesia.

“Let’s not forget that we’re up against very ambitious competitors,” he said. “If we’re not careful, they might take away our share [of international tourists].”

A total of 10,086 exhibitors from 188 countries presented their products and services during ITB Berlin 2013.

The vice minister said that Indonesia was “relatively” ready to receive more international tourists. “We’ve increased and improved the facilities and infrastructure to accommodate more tourists,” he said.

Many local communities are also ready to welcome more international visitors to their regions.

“Indonesia consists of people from many different ethnic groups, and they’re mostly hospitable to visitors,” Sapta said. “We [the Tourism and Creative Economy Ministry] are also conducting many tourism campaigns and education and training programs to encourage local people to be more open and friendly to tourists.”

In the two-tiered Indonesian exhibition area in Berlin, about 120 exhibitors promoted the country’s destinations, hotels, spas, convention centers and catering services.

Last year, total transactions for Indonesia at the annual tourism event reached about Rp 2.14 trillion. This year, transactions were expected by the government to reach around Rp 2.6 trillion.

One of the busiest of Indonesia’s exhibition areas was that devoted to health care and wellness tourism. The 66-square-meter corner offered free traditional foot and back massages, as well as a free flow of Indonesian premium coffees and canapes.

“Indonesian snacks are all very tasty,” said Rainer Gutwirth, who visited ITB Berlin with his wife on the first day.

Gutwirth, who works for a travel agent in Berlin, said he was fascinated by the rich variety of traditional costumes of the Indonesian dancers. “I think it’s a very, very interesting country, very different from us,” he said. “We’d like to go to visit Indonesia someday.”

There were dozens of cultural performances in Indonesia’s exhibition area each day, attracting large crowds.

Eberhardt Mieth, who came with his wife on the second day of ITB Berlin, said he was very impressed with Indonesia’s cultural performances.

“We come to ITB Berlin each year,” Mieth said. “And we’ve always enjoyed visiting your [Indonesia’s] booth. You have a lot of performances. But each year, it’s different. We never see the same thing twice. And it gives a good impression of your cultures, of what you have to offer.”

Mieth, a travel consultant based in Frankfurt, has already visited Indonesia twice and is keen for a third visit. “We’re planning to come in autumn or winter, to escape the cold weather,” he said.

ITB Berlin 2013 closed on Sunday. More than 110,000 trade visitors and 60,000 members of the public attended.

The Jakarta Globe attended ITB Berlin as a guest of the Indonesian government.



For more info, visit www.itb-berlin.de/en

http://www.thejakartaglobe.com/lifeandtimes/indonesia-grabs-the-spotlight-at-berlin-tourist-fair/579794
 
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Amid US-China Competition, What Are Indonesia’s Strategic Options?
Brad Nelson | April 02, 2013

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(JG Graphic)

The superpower competition for power and influence between the United States and China will likely profoundly impact Asian politics and security in the 21st century. Already, while Chinese economic and military might are on the rise, emboldening its policymaking on issues like the South China Sea, the US has taken countermeasures to protect its regional interests. Washington has put into motion its so-called “pivot to Asia,” which has enhanced America’s economic, military and diplomatic investment to the region.

This is the regional environment that Indonesia is situated in nowadays and likely for the foreseeable future. Caught in the middle of this superpower competition, however, doesn’t mean that Indonesia is in a hopeless or unpredictable situation. It has a number of strategic options at its disposal.

This reality, let’s call it strategic flexibility, is the result of two things. First, over the last two decades, Jakarta has fairly consistently pursued a foreign policy of “friends with no enemies.” And second, Indonesia’s history isn’t marred by heated regional rivalries and enmity. As a result, Indonesia hasn’t strategically backed itself into a corner, limiting its options and choices. More to the point, it doesn’t have the foreign policy obstacles that countries like Japan and South Korea currently face.

Instead, at this point, Indonesia has relative freedom to make and implement the foreign policies it wants. In this sense, Indonesia’s comity and friendliness with foreign countries has served it well.

As it stands right now, to cope with the superpower competition while protecting its national interests, Indonesia has five broad strategic options.

Indonesia can remain neutral and on the sidelines, preferring to stay out of any confrontation between Beijing and Washington. Indonesia can choose sides, opting for either China or America. Or it can act as a mediator or troubleshooter between China and the US, actively attempting to keep superpower relations smooth and conflict-free. Also, by working to write the rules of the road in Asia, thereby shaping the regional environment in which China and America interact, Indonesia can serve as an indirect conduit between both powers. And finally, Indonesia can try to play the superpowers off each other as a way to maximize the economic, security, political and diplomatic concessions it receives from both Washington and Beijing.

Picking sides and playing China and America off each other are, by far, the two riskiest options. Should Jakarta decide to align itself with Washington or Beijing, the side that Indonesia didn’t pick will be angry, causing fraying and disruptions in relations with that side.

Moreover, if Indonesia does choose sides, this may have serious long-term consequences.

For instance, if Indonesia picks the side that eventually loses the superpower struggle in the region, its position and prestige within Asia will be severely compromised. Additionally, Indonesia could select a side that breaks mutually agreed upon deals, including security ones, or even turns aggressive toward it — something that’s not preposterous given the history of superpower behavior. To protect the country’s interests, Indonesia would likely have to cozy up to the power it once scorned, and that power, under these circumstances, would have enormous leverage over it.

For now, Indonesia has decided to act as an indirect conduit between China and the US. It has focused on working through and strengthening Association of Southeast Asian Nations agreements and bodies, all of which provide a framework to standardize and regulate the behavior of countries residing in and engaging with Southeast Asia. Most notably, Indonesia, under the leadership of Foreign Minister Marty Natalegawa, has been very active in attempting to craft a code of conduct to manage the various disputes and conflicts in the South China Sea.

Such an approach is good, in that it allows Indonesia to play a low-cost productive role in Asian security affairs. But it is also safe and too conservative. It doesn’t allow Indonesia to exert directly a peaceful influence on Sino-American relations — relations that are reasonably fine right now, but could quickly turn hostile and bloody. To do so, Jakarta would have to take on a more active leadership role in the region. Given that officials in Jakarta see Indonesia as an emerging leader and power in the region, why not begin the process of shouldering more regional responsibilities?

In my view, one way to do this is to transition toward serving as a regional mediator and peace broker, an unbiased independent party striving to diffuse conflicts and settle disputes. This would be a time and labor-intensive responsibility, one that includes, among other things, frequent shuttle diplomacy, brainstorming sessions, ego massaging and communication-strengthening between countries.

As a regional peace broker, Indonesia could attempt to work on all outstanding disputes and conflicts in Asia, including delving into the knotty Korean hostilities, but place special attention on Sino-American ties. The payoff for such a role for Indonesia would likely be very big.

In particular, it would enhance worldwide respect for Indonesia. It would cultivate an image of Indonesia as an effective diplomatic problem solver. It would firmly place the country on the road to regional leadership, perhaps to the point that others begin to see Indonesia as the indispensable actor in the region. And keep in mind all of these things, in turn, could very well create economic, security, and political benefits.



Brad Nelson is president and co-founder of Center for World Conflict and Peace, a research organization specializing in international politics and security.

Amid US-China Competition, What Are Indonesia?s Strategic Options? | The Jakarta Globe
 
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Iran Makes Offer to Sell Indonesia Cheap Crude Oil
ID/Agustiyanti | April 04, 2013

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The Iranian government on Thursday offered to sell Indonesia cheap crude oil, State-Owned Enterprises Minister Dahlan Iskan said.

Dahlan said the Iranian ambassador to Indonesia, Mahmoud Farazandeh, made the offer on Thursday while he accompanied a special envoy from Iran's Energy Ministry.


“They said that they had crude oil that was appropriate for Indonesian oil refineries and that the prices of their crude oil was much cheaper.” Dahlan explained.

The minister said that he referred the Iranian group to state oil firm Pertamina, as he said they had the authority to respond to the offer.

Last month, Dahlan said that Indonesia would continue cooperating with Iran despite the West's embargo against Tehran over its nuclear energy program.

Iran Makes Offer to Sell Indonesia Cheap Crude Oil | The Jakarta Globe





Indonesia Tops Asean 3 with Best Q4 Earnings Beat
Viparat Jantraprap | April 04, 2013

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A man looks on the electronic board that is showing the Jakarta Composite Index (JCI) at Indonesia Stock Exchange (BEI) in Jakarta. (JG Photo/Jurnasyanto Sukarno)

Bangkok. Morgan Stanley Research maintained its country preference for Indonesia over Thailand and Singapore saying Indonesian companies have had the best earnings performance for the October-December quarter on strong growth in financials.

Thirteen out of 24 Indonesian companies in the Morgan Stanley MSCI list beat consensus expectations, the broker said in its Asean Equity Strategy report, dated April 3.

Financials beat consensus expectations by 17 percent, led by Bank Rakyat Indonesia Persero, it said. In comparison, MSCI Singapore companies beat consensus expectations by 3.6 percent while MSCI Thailand companies missed the expectations by 7.7 percent, the report said.

Indonesia has been the only ASEAN 3 country to have seen positive upward revisions in forecast 2013 earnings per share by 60 basis points over the last four weeks, it said.

Consensus has revised down forecast 2013 earnings per share for MSCI Singapore companies by 60 basis points in the last four weeks and for MSCI Thai companies by 30 basis points in the same period, the report said.

“We reiterate our country preference of Indonesia ... We would use any macro headwind-driven correction, particularly in the Indo market, as another interesting entry opportunity,” the broker said.

MSCI’s index of Indonesia has risen 14.1 percent so far this year, outperforming a 4.5 percent gain of MSCI’s index of Singapore and a 2 percent gain of MSCI’s index of Thailand.

Reuters


Itochu, Kyushu Electronic Indonesia Venture to Sell Geothermal Power
Chisaki Watanabe | April 04, 2013

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Geothermal Power Plant

A venture formed by Kyushu Electric Power, Itochu, Medco Power Indonesia, and Ormat Technologies signed a 30-year contract to sell geothermal power to Perusahaan Listrik Negara of Indonesia (Indonesian State's Electric Company).

The venture will build a 330-megawatt geothermal power station in Sarulla on the island of Sumatra, Kyushu Electric said in a statement on Thursday.

Kyushu Electric and Itochu hold a 25 percent stake each in the venture, according to the statement. Medco Power Indonesia has 37.25 percent and Ormat Technologies, an American developer of geothermal plants, holds 12.75 percent.

Construction will start in 2014, according to the utility.

The Nikkei newspaper reported earlier today that the project is worth more than 100 billion yen ($1.1 billion).

The venture may seek project financing from Japan Bank for International Cooperation and Asian Development Bank, according to the statement.


Bloomberg



Palm Oil Exports From Indonesia Climb to Highest in Five Years
Yoga Rusmana & Eko Listiyorini | April 04, 2013

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Palm oil exports from Indonesia, the world’s largest producer, jumped to the highest level in at least five years in February after China and Pakistan boosted purchases to benefit from a slump in prices.

Shipments, including palm and kernel oils, gained 9.1 percent to 2.04 million metric tons from 1.87 million tons in January, according to data from the Indonesian Palm Oil Association e-mailed on Thursday. That’s the most in a month at least since 2008, according to the earliest available data from the association compiled by Bloomberg, and it beat the median estimate in a Bloomberg survey of 1.51 million tons.

Rising exports may help trim Indonesian stockpiles and halt a 34 percent decline in prices in Kuala Lumpur in the past year. Indonesia’s inventories of the tropical oil used in everything from noodles to biofuels dropped 14 percent to 3 million tons in February from a month earlier, according to a Bloomberg survey published on February 14.

“It seems that exporters were able to adapt to the new imports rule in China that had caused some concern in January,” said Fadhil Hasan, executive director at the growers’ group, known as Gapki. Demand for Lunar new year festival in February also boosted shipments, he said.

China imposed more stringent rules on edible oil imports to improve food-safety standards with effect from January 1 and Indonesia’s exports to the Asian country fell 15 percent in January. Shipments jumped 108 percent to 370,110 tons in February and sales to Pakistan surged 80 percent to 149,850 tons, Gapki data showed. Exports to India, the world’s largest buyer, fell 13 percent to 699,770 tons and sales to European Union dropped 22 percent to 305,120 tons, the data showed.

Futures in Kuala Lumpur, the global benchmark, fell 6.3 percent in February, the most since September. The contract for delivery in June fell as much as 1.5 percent to 2,360 ringgit ($767) a ton on the Malaysia Derivatives Exchange on Thursday.

Palm oil and its by-products accounted for 93 percent of Indonesia’s total February shipments, or 1.9 million tons, and the remainder was palm kernel oils, the data showed. Exports in the first two months of the year rose 29 percent to 3.9 million tons from a year earlier, Gapki data showed.


Bloomberg
 
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Ukraine latest junket destination
The Jakarta Post, Jakarta | National | April 2013, 7:33 PM

House of Representatives' Commission I on foreign affairs, defense and intelligence will go to Ukraine, one of the former Soviet Union’s defense industry hubs, to seek cooperation on the defense industry, a lawmaker said.

“The Ukrainian parliament has invited us to visit the country to see their military industry. We will invite PT Pindad management and Defense Ministry representatives to go with us,” Commission chief Mahfudz Siddiq said on Wednesday as quoted by Antara.com.

He said they had also planned to seek insights on the main weaponry system procurement as stipulated by the draft defense industry bylaw.

House visit abroad have often been criticized by the public since they generate no results. Indonesians living overseas often spot lawmakers prioritizing leisure over duties.

Many public figures have asked the House for stricter regulations regarding these visits and to oblige lawmakers to be transparent on their results. (nai/dic)

Ukraine latest junket destination | The Jakarta Post



04 APR 2013 | PROPERTY
Jakarta: Asia Pacific’s Development City
BY AKMAL HIDAYAT

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JAKARTA – Jakarta ranks the first as a city for investment and development destination across Asia Pacific, according to two global research firms’ studies. Jakarta obtains the predicate following Indonesia’s increased economic growth in the past few years.

The research gives 6.10 scores for Jakarta’s city development prospect. Below Jakarta is China’s second-tier city with 5.79 scores. Followed then by Singapore with 5.66 scores and fourth to seventh ranks is occupied by Shanghai, Kuala Lumpur, Bangkok and Beijing respectively.

Jakarta: Asia Pacific?s Development City - Indonesia Finance Today



Transportation Companies’ Net Profit Jump 101.82%
Lavinda, Elok Ani Riani
April 2013


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JAKARTA—Sluggish commodities trading was not significant impact to marine transportation companies during 2012 period. In fact, 8 of 18 companies average net profit growth posted 101.82% higher.

The growth most derived from revenue, although some companies obtained profit from assets sales. In fact, two ship dealers booked highest net profit growth and turnover.

The Companies are PT Pelayaran Tempuran Emas Tbk (Temas) posted 350.75% higher net profit and PT Tanah Laut Tbk booked 304.98% higher turnover. While average net profit growth of three airline companies by 46.98%.

Airline Company PT Garuda Indonesia Tbk and logistic service provider PT Cardig Aero Services Tbk booked highest net profit, grew above 60%, but their performance were corrected due to PT Indonesia Air Transport Tbk loss.

While average net profit four transportation services by 40.8%. Car rental Company, PT Adi Sarana Armada booked 198.7% higher net profit. On the other hand, PT Mitra International Resources net profit fell by 99%.

In detail, Temas pocketed IDR119.99 billion net profit in 2012, skyrocketed by 350.75% from IDR26.62 billion in 2011. Most of net profit derived from fixed assets sale as much as IDR65.38 billion.

Other marine transportation companies, Tanah Laut booked 304.9% higher revenue growth to IDR81.24 billion. However, cost of revenue jumped to IDR57.91 billion from IDR16.88 billion. As a result, the Company’s net profit only grew by 58.6% to IDR12.16 billion.

E-Trading Securities Analyst, Grady Wijaya said sluggish commodities trading don’t significantly impact to shipping companies’ performance. Because their performance depend on lease achieved in 2012.

“Although lower commodities price, the Company still produce and distribute the goods. Shipping companies’ performance depend on contract, especially coal companies,’ he told Bisnis, Monday (4/1).

For airline companies, Gardy projected the revenue growth will stable but not too drastic, around 10%. This is based on additional passengers target by15% of national airline companies.

While for land transportation companies, he assessed lower net profit growth compared to shipping companies due to limited range of the Company’s expansion because geographical issues.

“Actually, land transportation companies still better because higher income per capita and increase consumption. But it become complicated due to regional issues so the expansion is limited.” He said.

PT AM Capital Analyst, Akhmad Nurcahyadu projected land transportation companies prospect still good with significant profit growth this year, because consumers’ demand for land transportations still high.

“The people traffic and mobility level still quite high, so the transportation needs still large. In addition, people also need facility with high vehicle volume,” said Akhmad. (msw)
 
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