Professional Documents
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INFRASTRUCTURE
INFRASTRUCTURE
Baroness Margaret Thatcher 1925 - 2013
Apersonal account of her visits to Indonesia - page 44
page 18-19
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TABLE OF CONTENTS
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EVENTS
4 8 9 10 12 13 14 15 16 17 18 Message from HE Mark Canning, British Ambassador - As spoken at BritCham's AGM Professional Women's Group Being the Change: Women Empowerment Luncheon with Iain Wright MP and all Party Parliamentary Group for Trade & Investment Highlights of the Foreign Secretary's speech at the BCC AGM - William Hague European Business Partners Professional Women's Group March - Your Professional Image & Spirit of Entrepreneurship Business & Social Gathering - March Young Professional's Group Unleashing Indonesia's Potential, McKinsey Global Institute Early Afternoon Brieng Flight or Mediate? BritCham's Annual General Meeting BritCham's 'Giving Kids a Sporting Chance'- In partnership with OBI, TOPI & Cricket Indonesia
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SECTOR GROUPS
30 Infrastructure Update - contributed by Dr. Scott Younger / Glendale Partners
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LIFESTYLE & HEALTH
41 Summer Camps For Teenagers - Attending The School Of Life contributed by Outward Bound Indonesia 42 Ovarian Cancer - The Silent Killer contributed by Raes Hospital 44 How I Was Handbagged; Wet Feet and Other Memories of Baroness Thatcher - contributed by John Arnold 46 The Pillars Of The Earth, Ken Follet Book Review 47 This Month In History 48 May Day History & Folklore - Myth
32 Without Infrastructure, Economic Growth Rests On Feet Of Clay contributed by KADIN 34 Infrastructure Spending- contributed by KPMG 36 Managing Infrastructure Investment Risk In A Shifting Lending Environment - contributed by Aziz Adam Sattar 38 Cement Consumption - A Good Indicator Of Growth - contributed by Malcolm Llewellyn 40 Planning For A Disaster - Data Backup And Recovery - contributed by Poonam Sagar
MEMBER'S ANNOUNCEMENTS
Our patron:
20 The Language Compliance Conundrum Continues - contributed by Makarim & Taira S. 22 A Legal Primer On Joint Venture Agreements In Indonesia - contributed by SSEK 24 Introduction And Regional Optimisation Of The OJK - contributed by BritCham's Young professionals Goup
26 Indonesian Manufacturing PMI contributed by HSBC 28 Is There Any Safe Place For Our Savings? - contributed by PPi
This publication is not for sale. It is distributed free to members of the British Chamber of Commerce in Indonesia (BritCham). The articles selected for this publication represent a range of views on signicant current issues in Indonesia. The views expressed in this journal cannot be assumed to represent the ocial views of BritCham as a whole nor of its Board of Management and Executive Oce. Any errors of fact that occur in the articles are the responsibility of the contributing author or publisher. The articles are not intended as formal advice and should not be relied upon as such.
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CHAIRMAN'S MESSAGE
Haslam Preeston
T
For those of us who were not in the UK back then, or are too young to remember, it may be hard to understand just why views are so polarized. However, we must judge her actions in the context of the situation of the time; high unemployment, high inflation, large state-owned enterprises operating at the expense of private enterprise, powerful unions and deep sympathy for both socialist and market interventionist policies. Todays Labour party is unrecognisable. In such an environment, it was no wonder the economy was in a mess and the Argentine military junta felt able to take advantage of an enfeebled British government. Sound familiar? I have heard on several occasions, commentators such as Jim Castle noting how we may be heading down the same path here. As Indonesia lurches towards an election next year, we are seeing unions ever more ready to take on a government they perceive as vulnerable, whether over fuel subsidies or the minimum wage. Though part and parcel of this vibrant democracy, these actions create diculties for businesses, both in terms of unbudgeted increases
he passing of Lady Thatcher has been a catalyst for a great deal of worldwide debate and discussion on her legacy. Interestingly, by far the majority of negative comment emanated from the UK, where emotions are still raw amongst those who felt wronged by her policies. Some of the worst examples of this outpouring of hatred, have been several well publicised (though poorly attended) street parties, held to celebrate her death. As is the nature of media and human nature, there has perhaps been a disproportionate amount of coverage given to such negative views. Certainly, she was a divisive gure in many ways, but history (and intelligent opinion) will likely judge in her favour. in wage costs, increasingly rigid labour regulations and disruptive union practices. At the same time, government ministries are rolling out well-meaning, though protectionist policies, whilst interfering ever more deeply in areas formerly left to the private sector. Thus, Indonesias economic policies seem to be following the Beijing Consensus, with a dirigiste preference for state capitalism, protection of domestic markets and heavy regulation of foreign enterprises. However, private sector investment in infrastructure is being crowded out by the state sector, whilst investment in oil & gas exploration and production is declining. The latter is especially worrying, as Indonesian oil production is now at its lowest in many years (though due to a number of factors), whilst there is a paucity of investment. This exacerbates the fuel subsidy problem, as Indonesia is a net importer of oil and needs to make up for this through purchasing on the open market. Meanwhile, ination is beginning to tick upwards. Ben Bland of the Financial Times recently published an amusing piece on protectionist measures for nearly non-existent garlic producers (96% of the 400,000 tonne annual demand is imported) which resulted in a 30% increase in prices as well as garlic shortages good for vampires but bad for consumers. We have seen other shortages for mundane items such as beef, lemons and so on. Price ination for basic necessities creates upwards pressure on the minimum wage, which in turn discourages employers from hiring and hitting the poor disproportionately. But, to steal another line from Jim Castle (though he freely confesses he was not the author!), the fact remains that the pain of not being in Indonesia still outweighs the pain of being here. Put another way, Indonesia is still a great market to invest in. We are all committed to making our businesses work here, condent the there are increasing numbers of able technocrats at senior levels guiding the economy. But whilst I dont think we will be seeing an Indonesian Margaret Thatcher at the helm any time soon, we hope the government remains mindful that the private sector, not the state sector, should be paramount.
Wisma Metropolitan I, 15th Floor Jl. Jend. Sudirman Kav. 29-31 Jakarta 12920 Indonesia PHONE +62 21 522 9453 FAX +62 21 527 9135 EMAIL bisnis@britcham.or.id www.britcham.or.id
OFFICERS CHAIRMAN Haslam Preeston VICE CHAIRMAN Maxi Gunawan HONORARY SECRETARY ACTING James Bryson HONORARY TREASURER Daniel Hankinson SECTOR GROUPS CHAIRMAN OF ENERGY SECTOR David Braithwaite MBE CHAIRMAN OF HUMAN RESOURCES David Knowles CHAIRMAN OF INFRASTRUCTURE Scott Younger OBE CHAIRMAN OF FOOD, FORESTRY, FISHERIES & AGRICULTURE Roger Pinder SECTOR COMMITTEES CHAIRMAN OF MEMBERSHIP SECTOR COMMITTEE Aziz Adam Sattar CHAIRMAN OF SME SECTOR COMMITTEE Cynthia Wihardja CHAIRMAN OF YOUNG PROFESSIONALS GROUP Jay Singgih CHAIRMAN OF PROFESSIONAL WOMEN
COMMITTEE Juliette Williams BOARD MEMBERS Tom Aaker, John Arnold OBE (Former Chairman), James Bryson, David Burke, Rob Daniel, John Galvin, Colin Harvey, Malcolm Llewellyn OBE (Former Chairman), Tonny Pranatadjaja, Harun Reksodiputro, John Slack, Darwin Silalahi, Adrian Short, Juliette Williams, Aziz Adam Sattar EX OFFICIO Debbie Clarke Director of UKTI, Keith Davies OBE Director of British Council, Heru Dewanto IABA (CORRESPONDENCE FOR BOARD MEMBERS may be addressed to: info@britcham. or.id EXECUTIVE OFFICE EXECUTIVE DIRECTOR Chris Wren (chriswren@britcham.or.id) EXECUTIVE ASST Irawati Nataadidjaja (administration@britcham.or.id) SALES & MARKETING COORDINATOR Shinta Permatasari (salesmkt@britcham.or.id) EVENT COORDINATOR Dhini Puspitasari (events@britcham.or.id) FINANCE OFFICER Daliana Tiono (nance@britcham.or.id) PUBLICATIONS Robbie Stone (publications@britcham.or.id) BUSINESS DEVELOPMENT Hans Mohammad (busdev@britcham.or.id)
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AMBASSADOR'S ADDRESS
BRITAIN AND INDONESIA Since I last spoke to you, we have seen a signicant picking up in the pace of high level contacts, most recently the visit to Indonesia by the Defence and Development Secretaries. But the highlights of course were the Prime Ministers visit to Jakarta last April the rst at that level since 2006 - and the State Visit of President Yudhoyono to London in October. These were about ceremony and symbolism, but rst and foremost they were about taking a hard look at the relationship and identifying those areas on which we are going to place real emphasis in the years ahead. At the heart of this is the trade and investment relationship. Both leaders have committed themselves to doubling trade volumes by 2015. They also committed the two sides to expanding defence links, cooperation in education, joint working in areas of foreign and security policy and to confronting the challenge of climate change. There are many other important areas of cooperation but these are where we are going to focus most carefully. The State Visit was a powerful mix of ceremony and business. It was the highest honour that the British Government can bestow on a foreign head of state and was designed to full two objectives.
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ensure the certication for legality of all timber exports from this country. We have launched a fund to support Public-Private Partnerships (PPPs) into alternative energy projects, for example the new waste to energy project in Yogyakarta. In partnership with the French Development Agency, we are accelerating the mobilisation of investment in low carbon projects and unlocking the ow of nance through state-owned banks to the private sector. Were working with the provincial authorities in Papua to help preserve the rich forest reserves there and encourage the private sector to pursue low carbon development opportunities in the province. But trade and investment has been at the centre of the eort. With the economic challenges to our own economy mounting, and the Eurozone still in trouble, it is vital that we expand and develop our trading relationship with dynamic economies such as this. Our strategy is to support with your strong help British companies coming into this market but also to address what we see as the barriers to entry. The past year has seen many notable successes. Let me share a few with you. The visit of David Cameron saw the signing of a major deal for 11 Airbus A330s, the UK content of which was around 20% Rolls-Royce announced in July 2012 that these aircraft will carry their Trent 700 engines. There has been a subsequent order for 200 A320s (value around $24 Billion) from Lion Air. During the visit of the President to London, BP announced a $12 billion expansion for their investment in Papua. We saw a range of companies establish, or extend their presence: New Looks brand launch took place on 31 May last year. The company now has a number of stores in Jakarta and Bandung. Arup re-opened its Jakarta office in September 2012 Diageo opened their representative oce last month. Prudential launched its asset management business, Eastspring Investments, in Jakarta in October 2012. Green Fuels Ltd announced in January of this year that the installation of its
biodiesel processors in Balis rst biodiesel plant We are working with a range of other British companies, in sectors as diverse as aerospace, nancial services and ICT, which I hope I shall soon be able to tell you more about. Overall, were seeing broad-based interest among British exporters including all the consumer driven sectors: retail, food and drink and education, for example. But also in the supply of goods and services to Indonesian airlines and airports, and the number of British architectural rms winning commissions here continues to grow. But at the same time we have also been working to address the sort of obstacles and challenges that were highlighted so clearly in BritChams recent member attitudes survey. We have now instituted regular rounds of bilateral trade talks (the second in the margins of the State Visit), which is a way systematically to address market entry issues. We have takenup many of these with the government direct. We have launched a series of energy dialogues too, and are working with partners here and around the region to help combat corruption. We have had some successes, but there is a great deal more to do. So overall and despite the poor global environment - its been a strong year for companies entering the market. But doubling trade - to which the President and Prime Minister have committed themselves - is going to be a tall order. The Prime Minister has therefore also appointed, Richard Graham MP as his Trade Envoy for Indonesia. Richard, who knows Indonesia well, and has worked here, has hit the ground running, and will be back again in Jakarta this month to ensure that we are focused as well as we can be on the major opportunities. We have also proposed to the Indonesians the formation of what we call a Vision Group, of senior business gures on both sides to provide strategic input to this task. THE YEAR AHEAD This has given you a avour of the broad front on which we have been engaged since the last AGM, particularly on the trade front. Much has been achieved, but there is an awful lot to be done. Knowledge of the opportunities this country presents remains low in the UK. The global trading
environment, including for this country, is dicult. And with elections approaching next year we can expect the climate for foreign investors here to become more challenging. But the priority the British government is placing on the relationship with Indonesia is not a passing fad. It is a long-term strategic bet on the future of this nation, and it is one that I and indeed Im sure all of you believe to be well placed. So you will nd us in the coming year, pushing our trade, investment and other interests hard, and looking beyond the challenges that may well appear in our path. Indeed in the next few weeks we will be launching a major campaign to promote the Great in Great Britain. Its a huge drive to promote Britain abroad as a place to visit and do business. It will focus on everything the UK has to oer including our technology, education, heritage, innovation, sport, fashion and design. It will allow Britain to speak with one voice about the opportunities to invest in the UK and to promote British goods and services. Its a campaign that we want to involve as many of you as we can. And with Garuda set to soon start direct ights to and from the UK its ideally timed. We look forward to continuing our work with you, and with the Chamber, as we take all this forward. IN CONCLUSION I have expressed on many occasions, and do so again, my gratitude and admiration for all BritCham has achieved. Indeed so effective has been the collaboration between us, that we are now working with the Board to extend it in a signicant way, which will see BritCham gradually taking on the provision of a range of services to UK companies in this market. This is a long-term project, but it is one that carries real benets: in allowing the Chamber to develop a new stream of business: in allowing British companies to benet from your insights: and in allowing our own trade team to focus on major project opportunities. I conclude by thanking the Board and members for their help and support over the past year. We look forward to working with you in 2013 and beyond.
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EXECUTIVE UPDATE
Chris Wren
EXECUTIVE DIRECTOR
In this issue, I am giving up my overview to provide members with the new Board listings as below. For more detailed information about each Board member, please go to www.britcham.or.id/aboutbritcham (About BritCham)
Maxi Gunawan, James Bryson, HB Daniel Hankinson, KADIN Komite Inggris Capital HSBC & Eropa Barat Honorary Secretary Honorary Treasurer Vice Chairman
EX-OFFICIO
EDITORIAL TEAM The Executive Oce: Chris Wren (chriswren@britcham.or.id), Robbie Stone (publications@britcham.or.id) DESIGN, LAYOUT AND PRINTING PT. PHOENIX Communications. Jl. Benda Raya No. 98 A-B Cilandak 12560 T:+62-21 781 3212 | F: +62-21 781 2476 | E: creativeservice@phoenix.co.id | www.phoenix.co.id/csd UP.DATE is published by BritCham (British Chamber of Commerce in Indonesia). This publication may not, in whole or part, be lent, copied, photocopied, reproduced, translated or
reduced to any electronic medium or machine readable form without the express written permission of the publisher.
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Poonam Sagar
Certied Project Management Professional, Technology and Online Media Consultant at PT Infotech Solutions (www.infotech.co.id) an international IT rm empowering media broadcasters, content providers and distributors to optimize business processes with integrated, scalable and optimized IT solutions.
Corine and her colleagues experience with the Danone WWW program points to some key actions that empower women executives: Get clarity and develop your career path Communicate with your network Align your support network Look for role models and be one yourself
Its all about being a leader and supporting and encouraging women in your organisations to dream big, forge a path through the obstacles, and achieve their full potential.
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Guests enjoying the chance to talk with Debbie Clarke (UKTI) left, Iain Wright MP, third from left and Haslam Preeston (BritCham Chairman) fourth from left.
Luncheon with Iain Wright MP and UK All Party Parliamentary Group for Trade & Investment
Wednesday, 13th March 2013 | 12.00 14.00 | Shangri-La | Kalimantan & Maluku (1st Floor) The delegation was sponsored by :
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William Hague
UK Foreign Secretary.
Highlights of the Foreign Secretarys speech at the British Chambers of Commerce AGM, London, March 13th 2013.
...Your campaign theme this year is business is good for Britain. And our Government could not agree more strongly. Business is not only good for Britain, it is part of what makes our country great. And when British companies succeed, Britain prospers. And it will be the enterprise, the ingenuity and the innovation of companies like yours here today that help to power our country out of dicult economic times. Now as a Government we are exerting every sinew at home and abroad to create the conditions for that success. First and foremost this means, as you know, having the political courage to tackle our countrys problems head-on. Thats the only way to lay the foundations for real growth, not a mirage of growth. That mirage was the idea that growth can be built on consumption fuelled by debt and on government spending built on debt, and together with problems in our nancial sector it dragged our country to the brink. Sustainable growth will only come from our country expanding its trade with the world, and being a magnet for inward investment from across the globe. At home, we have to strengthen the ability of UK business to compete by dealing with
debts to safeguard low interest rates, rebalance our economy, cut business taxes and burdensome regulation, reform education so we turn out the brightest graduates and school leavers, reform welfare so it pays to work, and implement a modern industrial strategy to get behind the high growth industries of the future. We have to do all of that at home. But overseas, we have to equip business to take full advantage of these reforms by connecting them and the British people with the fastest-growing parts of the world: opening new Embassies, striking new relationships beyond our traditional alliances, seeking ambitious Free Trade Agreements that unlock billions of pounds of new commerce. We have to ght protectionism, we have to press for international regulation that is fair and evenly applied, and we have to tackle immense threats to our competitiveness such as those stemming from cyberspace. In all these areas our diplomats and sta are working as hard to support the British economy, they work as hard to do that as they do to defend Britains security in a turbulent world. Today I want to emphasise the areas where this government is equipping and strengthening Britain to succeed in the 21st century: building stability, increasing UK competitiveness, boosting trade and investment, ghting for a global market that is fair and open, and investing in international security, including for business.
Ensuring stability is a necessary precondition to growth and competing in the global race. That stability comes from international condence in our countrys ability to pay its way in the world. Of course, the scale of the global economic challenges that we face means that the task is more dicult than we thought. But the Moodys downgrade was a stark reminder that we have to stay the course. By dealing decisively with our debt problem, we will increase overseas condence in the UK economy and attract greater foreign investment to our shores. Second to this, we need to make Britain fit to thrive in a far more competitive international marketplace. ...That is why we have cut small business taxes to encourage future entrepreneurs and support existing companies by reducing the burden of taxation. ...Weve cut the main rate of corporation tax from 28 per cent to 24 per cent, and it is set to fall further to 21 per cent in 2014 the lowest rate of any major western economy. And as Foreign Secretary I see repeatedly in meetings with business communities abroad just how important they are to perceptions of this country as a place to start a business and to invest. That increased competitiveness is shown in the result of the recent KPMG survey, where in just two years the UK has gone from near the bottom to one of the most competitive corporate tax systems in the
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world; as well as the World Economic Forum competitiveness rankings, where we are up from 12th to 8th since 2010. Third, we need to convert this increased competitiveness into actual results by increasing our exports and overseas trade and taking advantage of immense opportunities in new markets. Of the $20 trillion of growth that the IMF forecasts in the world economy over the next ve years, almost $13 trillion will be in emerging markets. And while long term forecasts are often wrong, as we all know, in a generation, Chinas middle class is on course to be over three times the size of Western Europes, and by 2030, on current trends Central and Latin Americas middle class will be as big as North Americas. By 2015 we will have opened up to 20 new Embassies, consulates and trade oces, and deployed 300 extra sta in more than 20 countries, particularly in Asia, Latin America and parts of Africa, so that Britain is linked up to the worlds fastest growing economies. We have increased training in economics and commercial diplomacy for Foreign Office staff, and are using programme fund investments to build stronger ties with government and societies in emerging markets, so that we strengthen our inuence where it really counts. This changing culture in the Foreign Oce is helping to achieve results for British companies. Our engagement with Brazil on the back-to-back London and Rio Olympics, and their hosting of the 2014 FIFA World Cup, has already helped UK companies to win Olympics and World Cup contracts worth over 100 million; and successful lobbying from Foreign Oce Ministers and ocials led to Russia lifting and I was celebrating this yesterday with the Russian Foreign Minister - a 17-year ban on imports of British beef, lamb and mutton. Our goods exports to the major emerging economies have also doubled since 2009 and, for the rst time since the UK joined the Common Market in the 1970s, we now export more goods to countries outside the European Union than to countries inside it. Our bilateral trade with China is
set to double to US$100bn by 2015, and is growing faster than our EU competitors, at 40 per cent a year over the past 2 years. So, we are moving in the right direction on these things, but we have a great deal more to do. British SMEs are currently less likely to export than their European competitors. Our ambition is to see as many as 100,000 more exporters by the year 2020. But we know that this will not happen unless SMEs have greater support from government, as well as from business organisations. That is why Lord Green is leading a new Chambers Initiative to increase that support signicantly in 20 high growth and emerging markets. A stronger domestic network of business support organisations, matched by an effective overseas network working closely with our Embassies, will oer UK business a genuinely attractive mechanism for increasing export led growth in our economy. In addition to this, we need to work constantly to ensure an open international environment that supports increased and more transparent trade. This starts in Europe, where we are working hard in the EU to complete the single market, address the crisis in competitiveness, and conclude ambitious Free Trade Agreements with the US, Japan, Canada and India that will bring billions of pounds and millions of jobs potentially into the European economy. The Single Market is the core of the EU, but when it remains incomplete in services, energy and digital the very sectors that are the engines of a modern economy it is only half the success it could be. So we are pressing for completion of that, as well as urging the EU as a whole to address excessive and unnecessary regulation that holds back innovation. And our diplomatic network will continue to fight other barriers to trade such as corruption, disregard for intellectual property rights, and creeping protectionism, all of which threaten investment. We have to promote a rules-based system so that our companies can compete in foreign markets on an equal basis, and not with one arm tied behind their backs.
That is why we are also using our G8 presidency to ght for freer trade, fairer taxes and greater transparency. We want the G8 to accelerate progress on ghting the evasion and aggressive avoidance of taxes that deprives governments of the revenue they need to provide public services, to ensure the rule of law, and stimulate investment and private sector growth. We also want the G8 to agree to ambitious new transparency standards for business, so that all companies play by the same rules. Finally, we are investing in international security to help combat threats to security which undermine trade and commerce, including terrorism, piracy and conict. ...Our diplomatic efforts to support a politically open and economically prospering Middle East and North Africa, to head o threats to security particularly business security - in cyberspace, and to combat terrorism from Asia to the Sahel, all underpin a more secure environment for business and trade. So we are tackling our problems at home and using foreign policy to seek out new economic opportunity for our country. We have all the attributes for success as a nation. The openness, the inventiveness and the daring that is hard-wired into us in Britain helps to explain why we are still the sixth largest economy in the world when we only make up 1 per cent of its population. And as Lord Green often reminds the Government, we export cheese to France, sushi to Japan, caviar to Russia, sand to Saudi Arabia and potato chips to America. Now this requires enormous ingenuity on behalf of British businesses involved. It will be talented and hardworking British people and companies who propel our country towards a prosperous future, and our government as you can gather from what I have briey described - will give them every support and assistance. We welcome your ideas: challenge us, criticise us and tell us how we can do more.
All the latest news is available on the Foreign Oce page of the gov.uk website at: www.gov.uk/fco
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Haslam Preeston (BritCham Chairman), Jan Rnnfeld (Managing Director, Ekonid), Elmar Bouma (Director, INA), Tiku Menon (Endress + Hauser), Setiadi Partadiredja (BNP Paribas)
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Sony Jethnani
Life Coach - Mindfulness, Values & Well-being www.sonyjethnani wordpress.com Email: sonyjethnani@gmail.com
vana Atmojo, editor in chief of OK! Magazine and style director for Metro TV, is well known as a professional image consultant for both personal and corporate clients. Ivana led us through an exercise of answering a series of questions that revealed our fashion personality type. There are seven style personalities : Romantic, Eclectic, Classic Elegant, Urban Cool, Foxy, Maverick and Glamorous. The key to looking ravishing and feeling condent begins with identifying our style personality and we can then tap into our instincts and natural choices to cultivate and develop our personal and distinct fashion sense and signature style. The interactive exercise was great fun and many of the participants expressed how enjoyable it was to do a fashion and style personality test.
etty S Fatimah is chief editor of Femina Magazine, the largest women magazine in Indonesia and she is leading Feminas Women Entrepreneurial initiative drive. Through conducting a survey, Femina identied the four issues faced by women entrepreneurs : - lack of condence & knowledge - network between entrepreneurs - lack of support from family & friends - access to funding Femina then launched a series of Women Entrepreneurial Initiative drives and organised networking events targeting nine dierent women communities to help women overcome these issues by learning and sharing. As of end 2012, Femina had reached out to and engaged over 13,000 women in 13 cities around Indonesia, inspired 22.5 million people through multiplatform medias (print, online, digital & social) and presented 220 women with
Juliette Williams (Castle Asia), Petty Fatimah (Femina), Sonny Jethnani (JAC)
entrepreneurs awards. The three mantras Femina has adopted and is spreading to all women through these communities and drives are : 1. To Play - we are most enthusiastic and engaged when we are playing. 2. To Participate - it is more fun to learn new ideas and engage in activities when we participate in a group or network. 3. To Pass On - By nding our PASSION and sharing it with others through playing and participation, we are able to inspire, motivate, share and PASS ON our knowledge and experience with others. This is a truly eective method for women empowerment and training as the women who choose to learn by joining these communities are encouraged to
"pay it forward" by sharing their knowledge and experience with others. Femina's mantras are what I believe all of us at Britcham Professional Women's Group - the committee, members, participants and guests - are practicing each month when we get together for our networking events. Learning becomes fun and easy through group encouragement. Women communities are our "energy, source of information and support", as we know we are not alone in our journey and everything we do is much more valuable when we have the intention of sharing with others.
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M.T. Rajah (Kellys Express), guest, Ian McGlashan (Spirax Sarco), Chris Wren (BritCham Executive Director)
Heykal (The Government of Riau Islands), Debbie Clarke (UKTI / BritCham Board Member), James Bryson (HB Capital / BritCham Board Member), Mugi S (The Government of Riau Islands)
Sponsored by :
DOOR PRIZES 1. One voucher from Maroush 2. One voucher from Front Page 3. One voucher from Anatolia 4. One voucher from Anatolia 5. One Wine 6. One voucher for Brunch at Lyon Mandarin Oriental Jakarta 7. 2 goodie bags from The Government of Riau Islands
1. Kresna Panggabean Susandarini & Partners 2. Christopher Benz Kemana Services 3. Paul Bravin PT Endura Indonesia 4. Elin Murakami Goemon 5. Sonja Tomasowa Intercontinental Midplaza 6. Ursinus Tampubolon Intercontinental Midplaza 7. Yasmin Alves Oxford Business Group 8. Frida Hasbullah Paint Art
Chris Wren (BritCham Executive Director), Mugi S (The Government of Riau Islands), Haslam Preeston (BritCham Chairman)
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Jay Singgih
Director at Stellar Capital, Head of Business Development & Strategic Investments at Bumi Laut Group, Vice Chairman of Permanent Committee on Venture Capital & Alternative Financing at Indonesian Chamber of Commerce & Industry (KADIN Indonesia), Chairman of Young Professionals Group at British Chamber of Commerce in Indonesia (BritCham Indonesia), Chairman of Department for Europe & US Relations at Indonesia Young Entrepreneurs Association Jakarta (HIPMI Jaya).
BritChams Young Professionals Group McKinsey Global Institute McKinsey & Company Indonesia The Archipelago Economy: Unleashing Indonesias Potential
Wednesday, 27th March 2013 | 18.30 20.30 |Financial Club Jakarta, 27th Floor
Raoul Oberman, Chairman of McKinsey & Company Indonesia, delivering his presentation.
n 27th March 2013, the BritCham Young Professionals Group launched the Groups first event of the year. BritCham YPG discussed the theme from the above Report by the business and economics research arm of McKinsey & Company, the McKinsey Global Institute (MGI). This Report was also presented to the President and the Government of the Republic of Indonesia, with the theme of The Archipelago Economy: Unleashing Indonesias Potential. The above Report was led by Raoul Oberman, the Chairman of McKinsey & Company Indonesia, Richard Dobbs, a Director of MGI, Arief Budiman, a Partner and the President Director of McKinsey & Company Jakarta Office, and Fraser Thompson, a Senior MGI Fellow.
The Keynote Speaker for the event was Raoul Oberman. Raoul gave a thorough and in-depth presentation on the MGI Report which was followed by an interactive Q&A session, both of which were moderated by Chris Wren, Executive Director of BritCham. By leading this Report, McKinsey & Company Indonesia really sees the potential and opportunities in Indonesia despite its challenges, which really makes this country a land of limitless opportunities. In the Report, MGI discusses the recent record of the Indonesian economy, looks at its future prospects, suggests priorities for government and businesses that might best maintain the economys momentum, and discusses the potential size of the
private business opportunities in Indonesia up to 2030. BritCham YPG would like to convey thanks and appreciation to Raoul Oberman and McKinsey & Company for the very insightful presentation. We would also like to thank Haslam Preeston the Chairman of BritCham, the BritCham Board of Management, Chris Wren the Excutive Director of BritCham, and friends of BritCham's YPG for the continuous support, and we very much look forward to welcoming you at our next event. For further information on BritCham's Young Professionals Group Please visit: www.britcham.or.id
EV EN TS
Danny McFadden (Managing Director, CEDR Asia pacic), Raymond Lee (Pusat Mediasi Nasional)
Danny McFadden (Managing Director, CEDR Asia pacic), Chris Wren (BritCham Executive Director)
Danny McFadden (Managing Director, CEDR Asia pacic), Chris Wren (BritCham Executive Director)
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James Bryson (HB Capital / BritCham Board Member), Haslam Preeston (Jakarta Land / BritCham Chairman), Daniel Hankinson (HSBC / BritCham Hon. Treasurer), Chris Wren (BritCham Executive Director)
Suresh Marcandan (PT. People Power International), Stephen Chambers (AGS Four Winds), Cowan Finch (Synergy Carbon), Tonny Pranatadjaja (Protocol One / BritCham Board Member), Juliette Williams (CastleAsia / BritCham Board Member)
Richard Michael (PT. Indonesia Infrastructure Finance / New BritCham Board Member)
Kim Ulrich (PT. Serasi Shipping Indonesia), Adrian Short (Rolls-Royce), Rob Carmichael (RBS)
James Bryson (HB Capital / BritCham Board Member), David Burke (Wellington Capital Advisory Service / BritCham Board Member)
Edmund Edwards McKinnon, Alistair Speirs (Phoenix Communications), Aziz Adam Sattar (Marsh / BritCham Board Member)
Rob Daniel (PricewaterhouseCoopers Indonesia / BritCham Chairman), Chris Wren (BritCham Executive Director)
A
H.E Mark Canning CMG (British Ambassador) H.E Mark Canning CMG (British Ambassador), Haslam Preeston (BritCham Chairman)
t a full house 2013 AGM, BritCham thanked and said farewell to retiring Board member, David Braithwaite. Although David has stepped down, he will continue to head up the Chambers Energy & Natural Resource sector group. Under the BritCham Indonesia by-laws, incumbent Board members, Tom Aaker, James Bryson, Colin Harvey, Malcolm Llewellyn, Harun Reksodiputro, Aziz Adam Sattar and Juliette Williams were reelected for a further 2-year term.
Members voted to accept the new Board nominations of Adrian Short of Rolls-Royce and Richard Michael of Indonesia Infrastructure Finance.
Haslam Preeston (BritCham Chairman) Herwidyatmo (Permata Bank), Haslam Preeston (BritCham Chairman), Rob Carmichael (RBS) Adrian Short (Rolls-Royce / BritCham Board Member)
The AGM and lunch was topped by the annual review of Chairman, Haslam Preeston together with a nancial statement by Honorary Treasurer, Daniel Hankinson. The lunch was tailed by a stake of the UK address from British Ambassador, Mark Canning. (see page 4)
www.britcham.or.id | 17
H.E Mark Canning CMG (British Ambassador) , Haslam Preeston (Jakarta Land / BritCham Chairman)
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April 13th kick-started this years 'Giving Kids a Sporting Chance' activities. The BritCham team were joined by TOPI and Cricket Indonesia for an 'Introduction to Cricket" and Outward Bound Indonesia for 'Team Building Games'. All was in aid of offering underprivileged children the chance to turn their hand at organised sports. 90 children attended the Saturday morning affairs and 90 very red, but smiley faces left with souvenirs, in the form of educational books on the Human body, to take home and share with friends. This is one of a handful of events planned for the year. For more details, please visit www.britcham.or.id/community
www.britcham.or.id | 19
is a Foreign Legal Consultant with the law rm Makarim & Taira S. He has lived in Indonesia for 20 years and is a former member of Britchams. richard.cornwallis@makarim.com
Richard Cornwallis
The following provisions in Law No. 24/2009 on the use of the Indonesian language will likely be of most relevance to foreign and local businesses which are still using foreign language documents and contracts: Indonesian must be used in a memorandum of understanding or an agreement which involves a state or government institution, a private Indonesian entity or Indonesian citizen. If such contracts involve foreign parties, they shall also be drafted in the language of the foreign parties and/or English. Note the use of the word shall and not may! Indonesian must be used in government or private working environments as the official language. This includes Indonesian or foreign companies carrying out activities in Indonesia. Moreover, employees who do not speak and/or write in Indonesian are obliged to learn. Indonesian must also be used for information provided through the mass media and for information regarding local or imported goods and services distributed in Indonesia (although, for
some purposes, a foreign language can accompany the Indonesian text). Interestingly, Law No. 24/2009 (unlike its draft bill) does not provide any sanctions for violation of the above obligations to use Indonesian. One development back in 2009 was a letter from the Ministry of Law and Human Rights (Letter) in which the Ministry claried that in their view, at least until the implementing regulation(s) have been issued, contracts in English only should continue to be valid and not void or voidable and that the implementing regulations for Law No. 24/2009, when issued (and like Law No. 24/2009 itself) will not be retroactive. The Ministry did subsequently backtrack somewhat on these views and the Letter would not of course be binding on a court. There is also an argument that failure to use Indonesian in an agreement entered into by an Indonesian party is more a failure to meet the formal aspects of the agreement and therefore should not aect the validity of the agreement as long as the contract satisfies the substantive requirements
for contract validity provided in the Indonesian Civil Code. Also, unless by law an agreement must be in Indonesian, it should still be possible to agree that the English agreement will prevail in a dispute. A clause clearly conrming this should be inserted in the contract. Of course, if a contractual dispute is brought to the Indonesian courts, any foreign language document submitted as evidence will need to be translated into Indonesian. Despite the above arguments and the continuing uncertainties as to implementation (the implementing regulation as to language should have been issued by 9 July 2011), it is only a matter of time before the validity of an agreement to which an Indonesian individual/entity is a party and which is only in English is challenged, if indeed this has not already occurred. Litigators will likely invoke provisions of the Civil Code and/or public policy principles to challenge the agreements validity. However, there still appears to be an absence of reported jurisprudence detailing any such cases. Of course, some specific contracts (eg franchise agreements, fixed term
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employment contracts, articles of association) must by law or regulation be made in Indonesian. Indeed, an increasing number of laws and regulations are imposing Indonesian language requirements. Under Government Regulation No. 82 of 2012, for
Litigators will likely invoke provisions of the Civil Code and/or public policy principles to challenge the agreements validity. However, there still appears to be an absence of reported jurisprudence detailing any such cases.
example, electronic contracts intended for the Indonesian population must be in Indonesian. So what should you do? The prevailing practice at the moment, so far as this can be determined, appears to be: In important transactions and/or documents, parties (especially banks and nancial institutions) will require agreements to be translated into Indonesian prior to execution whilst, given the uncertainties and potential risks of non-compliance, law rms may well qualify legal opinions and advices if documents are not translated into Indonesian. Some parties are taking a commercial attitude and will not translate agreements and other documents until more certainty is forthcoming. In such cases, relevant provisions should be inserted into agreements to allow for future translation. Other parties will make a case-by-case decision on translation taking into account risk management principles, weighing the cost of translation, the contents of the Letter and possible delays in nalizing a transaction against the risks of an unfavourable judgment or a future legal challenge.
Finally, many international businesses are, quite rightly, translating their standard commercial documentation used in Indonesia, such as terms and conditions of sale (or purchase), invoices, sale (or purchase) orders, warranties and guarantees, permanent employment contracts and such like, into Indonesian. More parties should follow this example. Law No. 24/2009 is just one of a number of laws and regulations which have been introduced but which then create uncertainties and/or confusion as a result of failure of implementation, partial or delayed implementation, subsequent revocation or amendment, not to mention judicial challenge and the common occurrence of the absence of or inadequate enforcement of the law or regulation by the relevant authorities. In addition, full compliance by businesses with certain laws or regulations may be
either almost impossible or commercially impractical the new labour outsourcing regulation comes to mind here. This can then lead to issues and concerns of corporate governance and compliance. As if the above was not enough, translation itself is an art and not a science and it is very dicult to translate complex English language documents, especially where the vocabulary used is technical, idiomatic or legalistic. Ideally, all translations should be carefully checked to ensure that they are as accurate as possible and that the full meaning of the wording is adequately expressed in the Indonesian version. Indonesian translations can often be at least 25% longer than their corresponding English versions. And nally, those readers who are tired of the language requirements of Law No. 24/2009 detailed above should also be aware of a provision in Law No. 24/2009 regarding the national ag. If you wear the BritCham lapel pin showing both the Union and Indonesian ags, then Article 23 of Law No. 24/2009 requires the pin to be worn only on the left and not on the right side of your chest. You have been warned!
Ira is a founding partner of Soewito Suhardiman Eddymurthy Kardono. She specializes in capital markets and banking law, nance, including project nance, insurance and tax law. She has been recognized as one of the top corporate, commercial and mergers and acquisitions lawyers in Indonesia by Chambers Global, and is acknowledged as a leading capital markets lawyer by the International Financial Law Review, Legal 500, Chambers Asia and Who's Who Legal. Douglas is a foreign advisor at Soewito Suhardiman Eddymurthy Kardono. He has more than 30 years of experience in Asia, North America, Europe and the Middle East. His main areas of practice include corporate law, M&A, private equity, nance, including Shariah-compliant nancings, corporate restructurings, joint ventures and other commercial arrangements. He has been recognized for his corporate-commercial and M&A expertise on numerous occasions by Whos Who Legal and Legal 500.
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These are intended as examples only and the types of such clauses that can be inserted are limited only by the creativity of those framing the agreement. Finally, note that the roles of company director and commissioner are not to be taken lightly. By virtue of Articles 97 and 108 of the Company Law, each member of the board may be held personally liable for losses suered by the company occasioned by negligent errors in management. A director or a commissioner may be excused from this liability where they can prove that the losses were not caused by their mistakes or negligence; that they have managed in good faith in the interests of the company; that there were no direct or indirect conicts of interest in respect of the act of management causing the losses; and they acted to prevent the said losses from occurring and continuing. Matters relating to shares generally The joint venture agreement should contain basic representations and warranties by the parties, including regarding the ownership of their shares in the capital of the company. There should be a general prohibition on share transfer without the consent of the other parties, subject to the terms of the joint venture agreement. There may be a provision to the eect that an individual shareholder can transfer all or any shares in the capital of the company to an entity controlled by him or her subject to terms, such as prohibitions on future transfers. There should be a general prohibition against pledges or mortgages of or charges upon shares. The agreement should provide that no registration of any transfer of shares will be made unless it is made in accordance with the terms of the shareholders agreement. Disposition and acquisition of shares The agreement should specify designated representatives of the shareholders entitled to make oers and receive notices with respect to share transfers and to execute documentation in connection therewith. The agreement may contain a shot-gun buy-sell provision and set out its terms. The agreement may also contain
rights of rst refusal and set out terms under which a party can compel a sale. Pre-emptive rights Existing shareholders may be given a contractual prior right to purchase new equity in the company. Restrictive covenants The agreement should provide for a requirement for shareholders to refrain from engaging in activities competitive with the business of the company. There should be general condentiality covenants regarding confidential information received by the parties in their capacity as shareholders. It is also typical for such agreements to provide for so called non-solicitation clauses, prohibiting shareholders from soliciting for their own purposes or enticing away employees or clients of the company. Dispute resolution There are a variety of dispute resolution mechanisms including litigation or arbitration. A reasonable choice for foreign companies with operations in Indonesia, depending upon the circumstances, would be to stipulate for arbitration in a neutral arbitration forum such as the Singapore International Arbitration Centre (SIAC), under SIAC Rules or other applicable rules. Indonesia became a signatory party to the New York Convention (the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards) in 1981 and enforcement of such awards can be eected here through the Indonesian courts, subject to public policy concerns. There are circumstances under which the parties may wish to forego the arbitration process altogether and have immediate recourse to the courts of Indonesia or another jurisdiction, such as for intellectual property rights disputes or interlocutory seizure. In such a case, the parties should specically contractually submit to the exclusive or non-exclusive jurisdiction of the courts, again dependent upon the circumstances. In practice it is not possible to have a foreign judgement enforced in Indonesia. A foreign party would find itself having to commence a new and separate action before the Indonesian
courts in order to enforce its rights. While a foreign judgement may be introduced in court, at the courts discretion, it may be of evidentiary value only. Indonesia is not a party to any reciprocal enforcement of judgements treaty with any other country. Termination Typically the parties will wish their agreement to include a waiver of Articles 1266 and 1267 of the Civil Code. This waiver is commonly found in most contracts governed by Indonesian law. Parties traditionally waive these articles to allow termination of their agreement on its existing terms, without intervention by the Indonesian courts. General provisions The joint venture agreement will contain a number of general provisions, including those relating to the binding effect of the agreement upon the parties; an indemnity by the company of its directors and shareholders for certain acts; the term of the agreement; provisions regarding notices and delivery of the same; and similar general contractual terms. Conclusion This is simply an outline of some of the key issues that your joint venture agreement will need to address. There are certain to be additional matters based upon the subject matter of the joint venture and the nature and relation of the parties. Some advance planning and prior discussion with your professional advisors can go a long way toward circumventing or minimising problems as the joint venture proceeds.
Head of Business Development & Strategic Investments at Bumi Laut Group, Chairman of Department for Europe & US Relations at Indonesia Young Entrepreneurs Association Jakarta (HIPMI Jakarta), Chairman of Young Professionals Group at British Chamber of Commerce in Indonesia (BritCham), Executive Committee Member at the Indonesian Chamber of Commerce & Industry (KADIN Indonesia), President of Durham University (UK) Indonesia Alumni Association Twitter: @JaySinggih E-Mail: Singgih.Jay@googlemail.com
Introduction and Regional Optimisation of the Indonesian Financial Services Authority (OJK)
On 9th April 2013, the Indonesian Chamber of Commerce & Industry (KADIN Indonesia) collaborated with the Indonesian Financial Services Authority (OJK) to launch a programme to introduce, socialise as well as optimise the roles and functions of OJK regionally throughout Indonesia. The programme was headed by the Vice Chairman of KADIN Indonesia for Banking and Financial Sectors, Rosan Roeslani, and the Chairman of the Board of Commissioners of OJK, Muliaman Hadad.
The OJK will not only be overtaking microprudential regulation on the banking industry from the Central Bank of the Republic of Indonesia (Bank Indonesia or BI), but will mandate the authority and responsibilities to coordinate and supervise the nancial services, capital market and non-bank nancial industry, making OJK the primary financial supervisory institution. The OJK is an independent institution with the authority to regulate, supervise, examine and investigate the Financial Services sectors in Indonesia with the objective to promote and organise a system of regulations and supervisions that is integrated into the overall activities in the nancial services sector. The main functions of OJK are: (1). To ensure that the overall activities within the nancial services sector are implemented in an organised, fair, transparent and accountable manner. (2). To promote a nancial system that grows in a sustainable and stable manner. (3). To protect the interest of consumers in the nancial market. The main regulatory mandates of OJK are: (1). Implementation of OJK Law. (2). Establish rules and regulations on: -Supervision. -Institutional. -Enforcement and Sanctions. The main supervisory mandates of OJK are: (1). Institutional and Market Oversight Policy and Supervisory Activities. (2). Governance and Oversight of CEOs from Banking, Capital Market and Non-Bank Financial Institutions (Pension, Insurance, Finance Companies, Venture Capital, Guarantee Companies, etc). (3). Conduct supervision, inspection, investigation, consumer protection and other supervisory actions. (4). Impose administrative sanctions on any party violating the laws and regulations in the nancial services sector. (5). To issue and/or revoke business licenses, individual licenses, eective registration statements, approval of business activities and validation. Institutional governance of OJK: (1). OJK is led by Board of Commissioners. (2). Board of Commissioners is collective and collegial. (3). Board of Commissioners consists of 9 (nine) members and appointed by Presidential Decree. In the coming years, one of the most fundamental challenges of the OJK is to develop an ecient and fully-functioning banking industry which are in compliance with good governance and regulations, which supports the countrys economy with a stable financial and monetary environment. 2013 is the rst year where the OJK will be an active regulatory and supervisory institution, and therefore these coming years are very fundamental for OJK to develop a strong foundation centrally and regionally as well as progress on its impact on the nancial sector as well as the Indonesian economy. The OJK and KADIN Indonesia will collaborate further in introducing and socialising OJK regionally throughout Indonesia, and in additional to coordination and cooperation with KADIN Indonesia (Central Board). The OJK will also develop a comprehensive partnership with KADIN Indonesias Regional Boards, in its eorts to supervise regional nancial institutions, especially during these initial years of transition period/transfer of authority to the OJK, where the OJK really has to strengthen coordination and cooperation with their partner government institutions and the private sectors. This is with specic attention to the nancial sectors, so as to develop a more cohesive and comprehensive supervisory framework. For further information on Indonesian Chamber of Commerce & Industry (KADIN) Please visit: www.kadin-indonesia.or.id For further information on the Indonesian Financial Services Authority (OJK) Please visit: www.ojk.go.id
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HEADSTART
Indonesian Market Access, Country Information & Intelligence Made Easy.
For all enquiries and a complimentary conference call with an experienced business development adviser contact:
uksme@britcham.or.id
F R E E
F O R
M E M B E R S
www.britcham.or.id | 25
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The HSBC Indonesian Purchasing Managers Index (PMI) is a composite indicator designed to provide an overall view of activity in the manufacturing sector and acts as a leading indicator for the whole economy. The indicator is derived from individual diusion indices which measure changes in output, new orders, employment, suppliers delivery times and stocks of goods purchased. A reading of the PMI below 50.0 indicates that the manufacturing economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change. The greater the divergence from 50.0, the greater the rate of change signalled by the index. Purchasing Managers Index and PMI are trade marks of Markit Economics Limited, HSBC use the above marks under licence. Markit and the Markit logo are registered trade marks of Markit Group Limited.
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Output Index Q. Please compare your production/output this month with the situation one month ago.
50.0 = no change on previous month
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% Lo w er
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% Sam e
March data signalled increasing output in the Indonesian manufacturing sector. The seasonally adjusted Output Index posted above the 50.0 no-change mark for the rst time since December last year, but indicated that production expanded only slightly. Approximately 21% of survey respondents reported higher output, citing increased order book volumes. New Orders Index Q. Please compare the level of new orders received (Indonesia and export) this month with the situation one month ago.
50.0 = no change on previous month
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New orders at manufacturing companies in Indonesia rose during March, extending the current sequence of growth to ten months. The overall rate of expansion was solid and the quickest since November last year. Just over one-fth of rms reported higher volumes of incoming new work, while 14% saw a fall. Anecdotal evidence suggested that demand from both domestic and export clients had strengthened over the month. New Export Orders Index Q. Please compare the level of new export orders received this month with the situation of one month ago.
50.0 = no change on previous month
Warning
The intellectual property rights to the HSBC Indonesian Manufacturing PMI provided herein is owned by Markit Economics Limited. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markits prior consent. Markit shall not have any liability, duty or obligation for or relating to the content or information (data) contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon. In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. Purchasing Managers Index and PMI are trade marks of Markit Economics Limited, HSBC use the above marks under licence. Markit and the Markit logo are registered trade marks of Markit Group Limited.
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In contrast to a decrease registered in February, new export orders expanded during March. That said, total export business rose only slightly as indicated by the seasonally adjusted New Export Orders Index. Where a rise in foreign sales was reported, this was frequently attributed by panel members to new contract wins in Asian countries. Backlogs of Work Index Q. Please compare the level of outstanding business in your company this month with the situation one month ago.
50.0 = no change on previous month
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Increasing rate of contraction
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Companies operating in the Indonesian manufacturing sector signalled higher levels of unnished business during March, mentioning lower payroll numbers and increased new business. Backlogs of work were accumulated for the fourth consecutive month, but the rate of increase was only slight and eased to a three-month low.
Indonesia
Colin Bloodworth
has worked as a nancial consultant in Indonesia since 1992. He is Director of PPI Indonesia and can be contacted at colin.bloodworth@ppi-advisory.com or +62 21 3004 8024
PERSONAL FINANCE
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as has been the case many times in history, the pension scheme risks becoming underfunded. The bonds may lose their purchasing value as ination bites but that is not their concern. return after a number of years of the original investment plus a possible additional return usually linked to a stock market index. The additional return is invariably inferior to any actual rise in the index but it does offer the comfort of the guarantee. It is important to understand that these products also are only as safe as the institution providing the guarantee. As Benjamin Franklin, one of the Founding Fathers of the United States said: The only things certain in life are death and taxes. Corporate bonds are relatively safe but even these could become worthless if the company that issues them should go under. A number of investments pay relatively high regular returns with little risk of any negative years. Examples are assetbacked lending, property funds, student accommodation funds and so on. These are very popular during periods when stock markets are doing badly. After all, people are still paying their rents irrespective of what is happening in the markets. The funds can work well but problems arise when a lot of people want to exit at the same time. Since the bulk of the fund is invested in long term assets, it is not possible to raise cash in a hurry and so the fund has to shut its door to redemptions until it becomes liquid again. There have been a number of such cases recently. So while the returns may be good you may have a long wait for your money.
dont be easily inuenced by higher interest rates. They are likely to be a reection of higher risk.
It would also be wise to hold more than one currency. The accepted wisdom is to hold most of your money in the currency you expect to spend, particularly where retirement is concerned. If you plan to retire in Indonesia, it would be advisable to hold plenty of dollars or pounds as they are more likely to hold their value over time against the Rupiah. This may be less noticeable in the short term but the historical gures are compelling. When I first came to Indonesia in 1983 the exchange rate was Rp600 to the US Dollar. Today it is approaching Rp10,000. Where will it be in another 30 years? Who knows, but my guess is it will be much higher than 10,000!
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Infrastructure UPDATE
While the pace of infrastructure development remains slow and there is continuing pressure to try to accelerate the necessary build out, the last year has seen some movement towards how some of this may be achieved, although the promotion of PPP as a means of improved delivery of projects has eectively stalled and needs stimulation and a revised direction. Within the city of Jakarta itself the appointment in 2012 of a new governor, Bp Joko Widodo, has raised some anticipation that an eort is going to be made to try to alleviate some of the citys horrendous transportation problems, while the greater conurbation reached the position of being the second largest in the world with a population of 27.2 million and growing.
MP3EI
In May 2011 the Government launched a framework document for the development of the country, the MP3EI, based on 6 economic growth corridors from Sumatra in the west (Corridor 1) to Maluku/Papua (Corridor 6) in the east. The document recognises the dierent characteristics and population distribution of each area and species 22 areas (e g agriculture, education, mining, tourism and infrastructure) where effort and investment will be required to ensure sustainable and equitable economic growth. Not surprisingly one of the most important areas emphasised for investment is infrastructure, with the continued recognition of the need for the private sector to be fully engaged in the delivery of key projects. There is a growing realisation also that delivery of necessary infrastructure across the country will very signicantly depend on each of the regional governments taking a leading role in identifying and prioritising projects, ensuring fair and workable terms and conditions where the private sector is to be involved, and having projects professionally set out to attract funding. This will be dicult since the human skills capacity level currently available countrywide is, in overall terms, not in place and can be seen as a brake on the rate of development required. Hence, apart from the capital needed for hard infrastructure development, there is a parallel requirement for funding to be made available, whether from direct government budget or supplemented through aid packages, for upgrading the skills and competence in the regions to allow successful implementation of the necessary projects, even where the approach means these to be totally outsourced to the private sector. Internal and ASEAN regional connectivity is highlighted in planning agendas. Apart from telecommunication links, there is a shortage of suitable and good quality land links and ports and airports. Along with lack of electrical power in many areas, this overall lack of hard infrastructure has been measured as causing a national underperformance in GDP terms of some 3-4% with more than half of this attributable to the shortage of good quality roads and ports.
SECTORS
Most road infrastructure, over 90%, falls under the jurisdiction of local governments, primarily regencies. While there is still a very large shortfall in overall
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sponsored high speed line to Bandung and coal railway links in Kalimantan. A general overhaul and upgrading of the sector is also required. In the electricity eld, apart from projects for large coal red power stations, e.g. expansion at Paiton, some movement towards setting up encouraging feed-in taris for solar projects took place, but legislation was still awaited at time of writing. Improved terms for geothermal investors were also under discussion and are urgently required. The countrys investment in geothermal generated power still lags well behind the countrys potential; Indonesia holds some 40% of world resources.
JAKARTA
network capacity, the other concern relates to the quality of the existing links, with some 50% of the network in poor or worse condition, this despite many local governments having adequate funding available for improvement. A closer look is now being taken seriously at central government level at the construction factors in this regard with performancebased contracts receiving increasing attention. For more than two decades investment in Indonesian ports was neglected. The impact of this has been increasingly brought to bear in the past decade as the economy recovered from the 1998 Asian Economic Crisis and, in particular, to take advantage of the fast-moving changes in containerisation. It is encouraging that positive steps have been taken over the past two years to upgrade Indonesias prime port of Tanjung Priok to try to meet the countrys main container shipping needs in the years ahead, before new facilities can be brought on line. The rst new container terminal was recently awarded with construction geared to commence in the fairly near future, and the next two terminals are expected to be awarded to successful bidders in the near future. Other main port developments, e.g. Sorong, Batam, Cilamaya, are also in development stages as pressure grows to provide for fast-expanding domestic as well as regional/international sea-trade. Domestic and international air trac has been exhibiting double digit growth for the past several years, such that airport capacity has fallen well behind demand. The government has identified more than 200 locations across the country for upgrading existing or putting in new basic facilities. Even new airports, such as Makassar which was opened in 2008, have already reached capacity long before the design date. Extensions to capcaity are ongoing for Jakarta and Bali, but these can only be seen as short-term albeit necessary measures. New airports are required. In terms of private sector involvement the parameters of passenger demand and return on investment indicate that only a relatively few of the the overall number of airport locations will be attractive to funding from this source. But demand for expansion is strong. In the rail sector the airport connection remains a high priority as well as other Jakarta urban connections, a Japanese Although the immediate attention to flooding and the short to long term improvements to water supply issues have to be addressed, Jakartas traffic problems continue to dominate the main headlines at this time. Considerable progress towards activating the longstalled MRT and monorail projects has been made since the turn of the year and it is expected that work on these projects will become manifest during the course of 2013. The signing with the new investor for the monorail is expected in May 2013. In the not-so-longer run, Jakarta will have to address the defence of the city with an oshore dyke and preserve the many billions of dollars of assets that the city entails. Cities and megacities such as Jakarta, in particular, need to pay more serious attention to developing a long-term plan for supply of water to its residents, including adoption of modern practices towards water re-use, several viable applications for which have been evolving in the past decade. As the second largest conurbation worldwide, Greater Jakarta has much to do to make the city into one t for the 21st century. The challenge is there, but it can be done.
Lena Herliana
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that the government must settle to ensure equality in economic development. Many parts of the country are still lagging behind, not being integrated within the main system and experiencing low growth and relatively high unemployment and poverty levels. Urban and rural areas do not cooperate as agents of mutual symbiosis. Rather, urban centers have a parasitic symbiosis with rural areas. As a result, a development bias towards urban centres occurs and more than half of our population lives in urban areas, leaving rural areas undeveloped and unattractive to investment. improved its ranking from previous years, its score still only is 2.54 out of 5 points. Under-developed infrastructure adds to costs Further analysis reveals that within the transport-related infrastructure (e.g. ports, roads, airports, and information technology) roads, rails and ports stand out as the areas that are under-performing. This factor is the main contributing reason for the low score awarded. Poor road quality across Java, not to mention the rest of the archipelago, the lack of the trans-Java expressways and alternating railways add to the cost of moving goods by land. Outside Java, connections between ports and the related hinterland are so poor that they inhibit not only exports, but also domestic trade: Shipping a 40-foot container from many regional ports to Jakarta is more expensive than shipping the same container from Jakarta to Singapore. Our main international sea freight gateway, Tanjung Priok, is also close to full capacity. It handled almost 6.3 million 20-foot equivalent units (TEUs) containers last year while it was originally designed to accommodate only 5 million TEUs. Average dwell time of container ships is now six days compared to three days for major regional ports. Moreover, road access to the port has become increasingly congested. On the other hand, the planned railway to shift freight from road to rail has made little, or no progress.
Many parts of the country are still lagging behind, not being integrated within the main system and experiencing low growth and relatively high unemployment and poverty levels.
According to data from the Indonesian Coordinating Ministry of Economy, Indonesian companies spend at least 14.08% of their average production costs on logistics adding to 27.02% of the national GDP. This is much higher than in other Asian countries, such as South Korea where companies only spend around 12.5% of their production costs on logistics. From these costs, Indonesian companies spent most on physical transportation, accounting for 66.8% (the rest is on administration as well as for procurement). These are the reasons why transport infrastructure and transport-related services play a major role for the outcome of Indonesias economic performance. If Indonesia could improve its infrastructure, for sure the desired two-digit economic growth would become more than a dream. Geographical Challenges Spanning nearly two million square kilometers and consisting of five main islands and about 30 small archipelagoes, with 17,508 islands and a population of over 234 million people, Indonesia obviously faces a mammoth challenge
Of course, improving infrastructure in disadvantaged regions will not in itself guarantee speedy economic growth because of their weak demand and economic agglomeration. Rather, connecting less developed regions and growth centres can increase rural demand and promote economic clustering, such as in agro-processing and labour-intensive manufacturing. This would also lead to a signicant increase in employment in the regions. Moreover, greater integration between islands will reduce the impact of sudden shocks in production or demand-reducing price volatility. Cheaper and more reliable transportation means will increase market access as well as increase the competitiveness of our goods, as they can reach markets at a more competitive price. With improved connectivity we will have greater diversification in production and exports as it helps businesses develop competitive advantages in higher value-added goods, both in terms of manufactured and processed commodities. In the upcoming month Indonesia will host the APEC Summit, with Regional Connectivity being very high on the agenda. We must ensure that we have prepared ourselves for this, since Indonesia plans to generate billions of dollars in investment - aiming for its gross domestic product (GDP) to reach US$4.5 trillion by 2025, a move that will prompt it to join the worlds top 10 economies.
www.britcham.or.id | 33
Graham Brooke
Graham Brooke is the Asia-Pacic Regional Head of KPMGs Infrastructure & Projects Group, and President Director of PT KPMG Infrastructure Advisory. Graham is a specialist in complex infrastructure projects with more than 20 years experience in the UK, South Africa, Asia and Australia. He is currently working on several signicant projects in Australia and Indonesia in the transport, housing, defence and telecommunications sectors. Graham is a Board Member of Infrastructure Partnerships Australia, a Member of the NSW Housing Minister's Community Housing Advisory Committee and an Adjunct Professor of Bond Universitys Department of Sustainability. PT KPMG Infrastructure Advisory is a joint venture of KPMG Indonesia and KPMG Australia established to bring together the resources, experience and expertise in Infrastructure of both rms, to deliver nancial and commercial advice on infrastructure projects to the Indonesian market.
Infrastructure spending
In 2012, the Government of Indonesia (GoI) allocated US$20 billion (2.4% of GDP) in its budget for capital expenditure, predominantly on infrastructure development. Coupled with private sector investment, this amount brings total capital expenditure on infrastructure to 4.7% of GDP, but this remains low compared to its peers, as shown in the graph below.
Investment gap
The National Development Planning Agency (Bappenas) has estimated that Indonesia needs to spend approximately US$ 200 billion on infrastructure development over 2010-2014. Despite being the largest economy in South East Asia, the GoI is only able to provide up to US$ 58 billion (29% of the nancing needs). It is therefore seeking other sources of infrastructure funding, including aid, multilateral agencies and private sector funding in the form of PPPs.
Market overview
Total Infrastructure spending is expected to rise to 5.9% in 2015 in order to achieve the GoIs 2015 real GDP growth rate target of 7.2%. Infrastructure continues to be a key area of focus for the Government for the next few years in Indonesia. Bappenas publishes an annual list of priority projects. The 2012 list contains 58 projects worth about US$ 51.2 billion, of which 9 projects are new. Those projects have been selected through a screening process and consolidated to be in line with the Government Working Plan 2012. 16 projects that were in the 2011 PPP Book have been eliminated due to the introduction of more rigorous screening of projects. As of 2013, the Government is ready to offer 14 major infrastructure projects valued at approximately $6.1 billion, including a $1.56 billion coal-red power plant and a $780 million mine-mouth coal-fired plant in South Sumatra, a $1.33 billion municipal water supply in West Semarang, and an $870 million project to revitalize the Malioboro rail station in Yogyakarta. The Government is under increasing pressure to develop basic infrastructure due to recent high prole failures water shortfalls, collapse of a flyover bridge, rolling electricity blackouts, dam collapses and traffic congestion. The Government is seeking funding support from multilateral and bilateral aid initiatives such as AusAid, USAID, ERIA, World Bank, ADB, and KfW. In addition, the Master Plan for Acceleration and Expansion of Indonesia Economic Development 20112025 was introduced as the development guideline of the GoI,
Quality of Infrastructure
Indonesia is ranked number 76 in the world in 2012 in terms of quality of infrastructure, lower than several neighbouring countries. However, the quality of Indonesias infrastructure has improved from the previous rank of 84 in 2010. The symptoms of more than a decade of low infrastructure investment include increasing congestion in urban areas, high inter-island cargo transport costs, electricity blackouts, and low access to improved sanitation.
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encouraging participation of private investors in infrastructure through nancing and investment. On October 6th 2011, the Indonesia Infrastructure Guarantee Fund signed a Guarantee Agreement (co-guaranteed by the Ministry of Finance) for the Central Java Power Plant (CJPP) project. This signing has proved that PPP projects based on an open, competitive, transparent, and accountable process can be conducted in Indonesia. CJPP is currently awaiting Financial Close.
The PPP and general infrastructure procurement systems have been subject to many reforms and revisions to improve the procurement procedures and to accommodate the enhanced scal authority of the regional governments under regional autonomy laws. Despite the supporting law and regulations, PPPs in Indonesia have been hampered by both technical and practical issues. Technical issues are mostly caused by the time required for the remaining laws and regulations to agree with each other and the allocation of roles in institutions. The main practical issue has been the land acquisition problem, which has caused failure and delay of a number of infrastructure projects. The Government has been enacting laws and regulations to address these issues through allocation of responsibility to acquire land to the relevant Government Contracting Agency prior to tender and the provisions of government guarantees from IIGF and government support in the form of Viability Gap Funding (through Minister of Finance Regulation 223/PMK.011/2012 regarding Granting Feasibility Support for Part of Construction Costs for a Cooperation Project by the Government and a Business Entity for the Provision of Infrastructure.
Land acquisition
After months of consideration, Governor Joko Widodo has conrmed that his administration will proceed with the construction of the Mass Rapid Transit (MRT) network, and approved the construction of the Monorail.
However, over the last decade, the Indonesian Parliament also has been passing new laws for specic infrastructure sectors aimed at streamlining and providing clarity on the procurement and private sector development process.
Land acquisition issues have been one of the main obstacles for infrastructure projects in Indonesia. The GoI has enacted Law No.2/2012 concerning Land Procurement for Development Purposes in Public Interest to improve and put clarity around the land acquisition framework, supported by Presidential Regulation No.71/2012 concerning Administration of Land Procurement for Development Purposes in Public Interest and Regulation of BPN No.5/2012, which sets out technical implementation guidelines and rules. These regulatory developments are anticipated to improve progress in infrastructure development and the availability of private nance funding through the removal of impediments to acquiring land in the old regulatory environment.
Aziz has been located in Indonesia since 2002. He currently serves as a BritCham Board member and is the Marine Practice Leader at Marsh & McLennan Companies' for their Indonesian oce, PT. Marsh Indonesia.
Energy
Total
Annual growth rate in investment in spending, 2008-18, % Infrastructure (global) Infrastructure (Asia-Pacic) Clean energy (global) Clean energy (Asia-Pacic) 6.0 8.2 10.9 18. 2.3x
Source: Asian Development Bank; Clean Edge; World Bank Private Participation in Infrastructure (PPI) Database: McKinsey analysis
Infrastructure projects are seen to be vulnerable to these risks, which can potentially unfold without warning, at any point during the lengthy planning and construction period of a project. If these risks are not adequately managed, the eect can mean costly, unproductive delays at best, or project abandonment at worst. While these types of real risks have lessened the attractiveness for some investors and lenders creating a substantial nancing gap, the need for infrastructure investment is not diminished.
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project nance, whether from the public or private sector, is to mitigate any risk which may potentially devalue the assets or endanger the project revenues. The importance of this lies in the fact that a project nance lenders only security of repayment resides in the assets and revenues of an infrastructure project. Insurance plays a major role in reducing the risks to which the assets and revenues are exposed.
insuring challenging risks, especially those in the most volatile regions of the world. This market should not be overlooked, as it can broaden the range and availability of insurance products available to an organisation.
USD in million
150
100
50
2007
2008
2009
2010
2011
a project throughout the life cycle of the project. In fact, according to a report by Oliver Wyman, governments and companies can reduce cost overruns and delays by in excess of 20%, by developing greater transparency and more sophisticated management of the risks involved and tracking mitigation eorts. Oliver Wyman estimates this can potentially free up more than US$5 trillion of public nances globally by 2030 for use in other purposes.
Political risk insurance has become increasingly vital as a risk management instrument for major infrastructure projects, including helping to secure nance.
in response to the challenging lending environment, insure against non-payment risk which can be caused by political risk events or company specic issues, covering exporters, commodity traders, and the nancial institutions that support them.
Malcolm Llewellyn
Malcolm was, until very recently, Chairman of the British Chamber for over three years. During that that time he was also a member of the EuroCham board. He is President Director of PT Boral Indonesia, currently working on a new fully-integrated cement project in Java and consults on cement plant projects.
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Tonnes
20,934,888
23,979,563
5,605,531 8,272,966 6,352,084 6,804,777 8,122,225 9,043,410 9,738,405 10,574,214 12,501,249 13,574,120
54,307,620
new entry into cement, has also acquired a plant in Vietnam and is preparing their market launch here by bringing clinker (an intermediate step) to a new grinding plant, and also cement into a starving market, in advance of commissioning their own plant production at Bayah/Lebak where they will be ghting with Siam Cement (SCG) who bought the Boral project for space and the port. SCG also plan a plant at Sukabumi. The Infrastructure plan will be undersupplied and so there are fears that the long awaited progress will be slowed and the price of expansion will be even higher.
The governments should force higher targets but have no personal incentives to aim for the fantastic levels achieved by internationals in Europe.
I joined Blue Circle as a trainee manager in 1960. Within a few weeks I had been taken o my 6 month training schedule and put in charge of a shift with 140 employees with four kilns producing a mere 60mtph between them and factory covering about 40 acres with quarries some miles away. Promoted to Assistant Manager and on to General Manager within 7 years we
60s trainees moved on to run the biggest cement group in the world. We were not educated per se but my pre-war mentors were full of experience and motivation. We managers were backed by some brilliant scientists and achieved quantum leaps in development through my 50 years in the industry. The smallest kilns I have personally worked with were rated at 18 tons per day (tpd). The largest in the world now are 10,000 tpd! Ratio of clinker output to fuel used to be 23% it is now 9% and then another 20% saving can be made by adding volume enhancers such as yash, pozzolan, limestone etc. thus saving fossil fuels. The use of secondary fuels such as oil sludge, palm oil, jatifur and other oil wastes, rice and coconut husks, household refuse, sewerage etc. further shows how far the worlds worst polluting companies have moved to improve their lot. We still have a huge job to do out there and few are doing more than the bare minimum. The governments should force higher targets but have no personal incentives to aim for the fantastic levels achieved by internationals in Europe. Indonesia has a very large uneducated population. UK government and Universities are working hard with Indonesia on this. We all need to help with the following priorities: Produce and personally mentor the best young engineering prospects and get real technical training done here in Indonesia
Slim down extravagances and extras in our buildings to save materials Press Governments to make quick decisions and cut red tape on land and permits to allow new projects to proceed legally Lobby for greater long term investment in infrastructure.
Malcolm (center) at the opening of the rst independent plant in Indonesia 1982 . The largest nonoil project at that time. British investment.
Poonam Sagar
Certied Project Management Professional, Technology and Online Media Consultant at PT Infotech Solutions (www.infotech.co.id) an international IT rm empowering media broadcasters, content providers and distributors to optimize business processes with integrated, scalable and optimized IT solutions.
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Wendy Kusumowidagdo
She is the Senior Consultant for Outward Bound Indonesia. An international licensed organisation for outdoor learning, focuses on maximizing businesses performance by empowering leadership, developing winning attitude and building teams. To learn how we can help you accelerate your teams, visit www.OutwardBoundIndo.org
Attending School of
Balanced Lifestyle = Holistic tness This morning when I turned on the TV, there was a feature news report on the alarming and heartbreaking rate of obesity in America being more than 30 percent. They say that more kids and teenagers are in icted with obesity, versus more adults 15 to 20 years ago. It concluded that tness was not only a diet issue or how little or how healthy people ate, but more importantly it comes from a holistic lifestyle and wellness. Like adults, teenagers who lead a balanced lifestyle, are active and have a positive self-image are more likely to be physically t also.
When talking about youth development, Im a rm believer of the importance of school of formal education, as it cements ones basis of knowledge and skills. However, at the same time, teenagers must learn to balance book smarts and street smarts. I personally believe that in the grand scheme of things in life, with ample book smarts someone will get further in life with the right attitude. There are many ways and channels to get teenagers to attend the school of life, while being active and having fun. canoeing, rock climbing, orienteering, pitching a tent, cooking etc. will teach them a multi-faceted life lessons. By going back to basics, teenagers will learn to adapt in an environment that is quite foreign and uncomfortable for them. By giving them basic tools, teenagers will learn about craftsmanship. By doing activities in nature, teenagers will develop physical tness. By doing things together in a team, teenagers will learn about leadership and teamwork. By interacting with local communities, teenagers will learn about service and how to be humble. By doing adventurous activities, teenagers will learn to break away from their comfort zone and expand creativity. By exploring new things, teenagers will get to be young and courageous. There are many avenues to explore when it comes to Youth character development. Formal education is great, but done alone will not sustain. Informal character education certainly can be a ne complement. It has many shapes and forms, and adventure camps are one of them. Essentially, a good adventure camp can provide a host of benets for teenagers to learn about life, develop their attitude while staying active and having fun.
Teenagers today live in a cyber world, which means they interact with people through gadgets more than they do in person. This reality can pose advantages and disadvantages. Advantages being speedy communication and access to information. On the flip side, disadvantages of technology on teenagers can be lack of inter-personal and social skills. When we interact with other people in person, we exercise and balance our minds and our bodies. For example, when we talk to somebody in person, not only do we hear their voice, but also listen to them through their body language. Also, when we are listening to a person talking, we must use our senses effectively to be able to gain a more complete understanding.
Dr Lynette Ngo
MBBS (s'pore), M Med (int Med), MRCP (UK), Dip Palliative Med Raes Cancer Centre Medical Oncology Dr Ngos areas of interest are in breast and gynaecologic cancers, psychosocial oncology and palliative medicine, in addition to general medical oncology
OVARIAN CANCER -
Ovarian cancer is the most lethal gynaecologic malignancy. Worldwide, more than 140,000 cases are diagnosed annually, representing more than 4 percent of all cancer cases in women. As these ovarian tumours cannot be detected early in their development, they account for a disproportionate number of fatal cancers, being responsible for almost half of the deaths from cancer of the female genital tract.
Risk Factors:
Older women are more likely to develop ovarian cancer than younger women. About 90% of women who get ovarian cancer are older than 40 years of age, with the greatest number aged 55 years or older. Although it is not known exactly what causes ovarian cancer, certain traits make some women more susceptible than others to develop ovarian cancer. Inherited genetic mutations, including mutations in the BRCA1, BRCA2, MLH1, MSH2 or MSH6 genes. A rst degree relative (mother, sister or daughter) with ovarian cancer. A personal history of breast cancer prior to age 40. A personal history of breast cancer prior to 50 and one or more close relatives with breast or ovarian cancer at any age. Two of more close relatives with breast cancer prior to age 50 or with ovarian cancer diagnosed at any age. Lesser risk factors include the following: A history of infertility and/or use of assisted reproductive therapies, such as in vitro fertilization (IVF). A history of endometriosis (a condition in which tissue from the lining of the uterus grows outside of the uterus). A history of hormone replacement use for the management of symptoms related to menopause. A personal history of breast cancer diagnosed after age 40 with no family history of breast or ovarian cancer. Obesity. Women who have never been pregnant.
the following ways: - Intravenous: Where drugs are infused directly into the veins - Intraperitoneal: Where drugs are infused directly into the abdominal cavity Targeted Therapy Eorts to improve survival in ovarian cancer have increasingly been focused on targeted drug therapies that interfere with specic molecules and pathways involved in tumour growth and progression. Targeted cancer therapies hold the promise of being more selective for cancer cells than normal cells, thus harming fewer normal cells, reducing side eects, and improving quality of life.
Treatment:
Ovarian cancer is a disease best managed by a multi-disciplinary team in a tertiary hospital with a combination of surgery, chemotherapy and in some cases, targeted therapy. Surgery Approximately 70% of patients with ovarian cancer are diagnosed at stages 3 or 4. Even in the advanced stages, surgery is the mainstay of treatment, in combination with chemotherapy. Aggressive surgical resection has been shown to be a strong predictor for survival in advanced disease. Women with early stage ovarian cancer have excellent survival, with more than 85% living beyond 5 years. Chemotherapy Chemotherapy after surgery is indicated in patients with a high risk of relapse after primary surgical treatment. Chemotherapy uses anticancer drugs to kill cancer cells which may be present after surgery. Usually, a combination of drugs is given. Drugs for ovarian cancer can be given in
Prevention:
Because ovarian cancers often remain undiagnosed until they are large, or present on the ovarian surface from where they readily spread to the pelvis or abdominal cavity, many patients are rst seen when the cancer is no longer conned to the ovary. Close monitoring of high risk women, genetic testing and employing prophylactic surgical removal of the ovaries and drug prevention for women with inherited genetic mutations are some preventive measures.
Raes Medika Indonesia Menara Anugrah 1st Floor, Kantor Taman E3.3. Jl. DR Ide Agung Gede Agung Lot. 8.6 - 8.7 Kawasan Mega Kuningan, Jakarta 12950 Phone : (021) 5785 3979 Fax : (021) 5785 3977 24 Hour Hotline: (65) 6311 1111 Email: enquiries_indonesia@raeshospital.com
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Join Us!
For further information : www.jkthighlandgathering.org/2013 or email : jhg@phoenix.co.id
The Jakarta Highland Gathering is an annual event which combines a traditional Scottish Highland Games with a fun family festival. Theres a dedicated Kids Area, a Food Festival with over twenty restaurants (and all day live music), a dance stage featuring everything from Highland dancing to Salsa and a host of sporting competitions.
Team Sports
Great Fun for Kids
www.britcham.or.id | 43
John Arnold
John Arnold currently serves on the BritCham Board of Management and is a Partner at Arghajata Consulting. He has been located in Indonesia since 1983. He has served variously as rst vice-chairman of the International Business Chamber and as a board member of Eurocham. From 2002-04 he was chairman of Britain in Asia Pacic, the regional association of British chambers of commerce and business associations. He is a member of the Council of Trustees of the British International School in Jakarta.
How I was hand bagged; wet feet and other memories of Baroness Thatcher
I am not sure whether I can accurately recall my rst awareness of the then Margaret Thatcher MP. It is probably of her speaking at a Conservative party conference during the late 1960s. While at that time almost certainly not agreeing with her politics, I couldnt fail to be impressed by the directness and clarity of her arguments. I would not have given a thought to her ultimately becoming Prime Minister, never mind her now being regarded by many as one of the worlds most inuential post World War Two politicians and statesmen. I am not sure whether I can accurately recall my rst awareness of the then Margaret Thatcher MP. It is probably of her speaking at a Conservative party conference during the late 1960s. While at that time almost certainly not agreeing with her politics, I couldnt fail to be impressed by the directness and clarity of her arguments. I would not have given a thought to her ultimately becoming Prime Minister, never mind her now being regarded by many as one of the worlds most influential post World War Two politicians and statesmen. Nevertheless, few people expected Mrs. Thatcher to usurp Ted Heath as Tory leader and thus also as leader of the opposition in 1975. I was still in the UK in May 1979, when she became Britains rst and so far only woman Prime Minister. However, individuals may have voted, I believe the vast majority of the electorate wanted change and a new approach to solving Britains chronic economic crises. That autumn I accepted a welcome transfer to Singapore and left Mrs. Thatcher to save Britain without me. I am not sorry I was away during the early period of the first Thatcher government. Those were very tough years to have been in the UK. Many, even among her own party, doubted whether Thatcherism would restore Britains economic competiveness. Despite all the ensuing economic turmoil, the winning of the Falklands War in 1982 re-united a much-divided nation. I was on home leave when many of the ships returned and the victory parades took place. You could not fail to feel pride at the bravery and brilliance of our armed forces. A new sense of national hope prevailed. Even so, when I was asked by my rm either to return to the UK or pursue the rest of my career in Asia, it was an easy decision to remain here. I could not have known then that even in Indonesia I would eventually meet Mrs. Thatcher and as she later became, Baroness Thatcher, on several occasions during the years that followed. By 1985, Margaret Thatcher had been reelected with an increased majority. She had survived an assassination attempt in 1984, and with her economic policies now nally reaping dividends, she was at the height of her power. Her visit to Indonesia in April of that year, the rst and still the longest ever visit by a British Prime Minister, was an exciting event for both Indonesian and British residents alike. We had then only been in Jakarta 18 months. The day of Lady Thatchers death marked the 28th anniversary of that visit. My most vivid recollection is of attending the reception at the Mandarin Hotel on the evening of the rst day of the visit. We did our best to arrive early as our invitation instructed, but the elements had a conicting agenda. A downpour had transformed Jalan Thamrin into a lake. After water had seeped into the oor of our car, we struggled to the ballroom ustered and somewhat disheveled and more than 10 minutes late. We need not have worried. The rst sight to greet us was of a senior cabinet minister; his trousers rolled up while he rang out his saturated socks! The ballroom was almost empty as both the guest of honour and most other guests were still on their way. The Prime Minister and husband Denis nally arrived 45 minutes later. Mrs. Thatcher strode immediately to the front of the room just in front of us, grabbed a microphone and began by apologizing for keeping us all waiting. Barely pausing for breath, she then proceeded to congratulate President Suharto (who was not present) on the excellent job he was doing running Malaysia! The alert Denis, whispered into her ear: Wrong country, my dear. Try Indonesia. She smiled broadly and began again to the laughter of all. The ice was broken and she went on to deliver an otherwise faultless unscripted speech. She later mingled freely among the guests, listening intently to stories of the numerous challenges being faced by those British businessmen present. The highlight of her visit was undoubtedly her tip to Bandung where huge crowds of ordinary Indonesians turned out to greet her. She was to comment subsequently in her memoirs that this made her appreciate that she had by then become not just the leader of the UKs government but was also an international leader. The by then Baroness Thatcher next visited Indonesia in late 1992, shortly after she had ceased to be an MP and two years after her resignation as Prime Minister. She may no longer have held
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oce but her opinion was still eagerly sought-after by the international community. She was accorded just as an enthusiastic a welcome by Indonesia as many incumbent heads of government enjoy. During this visit, BritChams predecessor organization, the Indonesia British Association was able to secure her to address the general membership. I was then vice-chairman and RM Hadjiwibowo chairman. It was almost certainly the largest event the old IBA ever organized, with well over 450 in attendance at the Mandarin. With Hadji and me seated either side of her, Lady Thatcher held court at the top table. As she listened and ate, she also scribbled notes on a card for the basis of her speech to follow, selecting her themes from the table banter. During the conversation, Lady Thatcher conveyed to us her personal admiration for the achievements of Dr BJ Habibie, then the Minister for Technology. She and he were old friends, fellow scientists and mutual admirers. As the conversation owed, and the mood lightened, I dared to comment that despite Dr Habibies achievements, some questioned the appropriateness of all his policies. That was a mistake. No sooner were my words uttered than Lady Thatchers stare was xed on me as she told me in no uncertain terms that should I ever again encounter anyone holding such opinions, I would be sure to immediately counter and correct them. There was no more to be said. I had been hand bagged and understood, just a little, what it must have been like attempting to argue against her over policy during a cabinet meeting. Hadji went on to deliver what Lady Thatcher then said was one of the nest introductions she had ever received. Her own speech was wide ranging and held everyone enthralled. Q&A followed. The inimitable late John Read put the rst question, as was usual at many of our events. Lady Thatcher demanded he stand up and be seen, and thus better
heard. John tried his best but could not do her bidding quickly enough. She asked him again and told John that she didnt answer questions put by people she couldnt see. It was then that someone at Johns table shouted aloud: He cant stand up, his legs are broken! Very well, she responded, I can now see you. You may sit down. The brief exchange brought down the house. Later that evening, I attended a ceremony at which Lady Thatcher received a special award presented by Dr Habibie on behalf of the Indonesian Academy of Science. It was a very
Several cabinet ministers attended. There was no repeat of the hand bagging incident. John Read, his legs by then recovered, distinguished himself once again. As I escorted Lady Thatcher out through doors of the Mandarin ballroom following the lunch, John had the temerity to run round through another door to be standing in front of us both with three open copies of the just published Downing Street Years. Lady Thatcher, would you be kind enough to sign these copies for my children? pleaded, John. Without missing a beat Lady Thatcher obliged. I like to think that Johns daughters still have their copies. Lady Thatcher was noticeably more relaxed and I found her to be excellent company. I sensed that by then she had become reconciled to being no longer in government, which had not been the case in 1992. I can readily understand how many people who knew her well recalled her personal kindnesses on her death. I last saw her for the last time later that day. Ironically we finished as we had begun ten years earlier. The British Council was to host an early evening event for Lady Thatcher at the Hotel Shangrila. I had promised her at lunch that we would only then say our goodbyes. She had also wanted to meet Gillian. Yet again the heavens conspired to intervene. Jakarta was once more awash. I arrived for the 5pm start together with Gillian just before 6pm when the event was scheduled to end. We were almost the rst to arrive. Lady Thatcher was just about to leave after waiting in vain for the arrival of her guests. On seeing us, she stopped and told her minders to wait while she gave us both time and particularly Gillian. It was a small but very personal kindness and one I shall not forget. She was a very remarkable individual that few will ever emulate. I was glad and privileged to have known her, however briey.
Indonesian occasion and I think Lady Thatcher and I may have been the only Brits present. Lady Thatchers third and last visit was in 1995. It was part of a Citibank sponsored world speaking tour. At her insistence Lady Thatchers contract provided for her to have an event wherever she spoke with the local British community. The old IBA by then had become the Indonesian British Business Association. I was chairman and again we were given the opportunity to host a lunch. It was another spectacular success with literally standing room only for many guests.
www.britcham.or.id | 45
Plot Summary
The central plot element of The Pillars of the Earth is the construction of a new cathedral in the fictional English town of Kingsbridge during the 12th century. But the story is really about the conicts between the people building the cathedral and those who want to destroy it. It is the early 12th century and England is about to erupt into civil war. The new prior of the monastery at Kingsbridge is determined to rebuild the current run down cathedral into one that will glorify God. He finds a young master builder who shares his vision of building the most beautiful cathedral in England. Unfortunately, the local bishop is a power hungry man with other plans. He works to disrupt the prior's eorts at every turn. His frequent ally in this is a cruel and vengeful earl consumed by his own greed.
The book is divided into six parts with a drawing of the cathedral in its current state for the start of each part. The drawings are well done and a nice touch. It was interesting to learn more about medieval life while reading this book. Little everyday practices like people walking right into someone's house unannounced or bringing your horse and other livestock inside the house added avor to the story.
This is one of those books that so engrossed me in the story, it made me want to play a computer game related to the storyline. In this case, it was Lords of the Realm II where you compete against other nobles (including an untrustworthy Bishop) to control the realm.
Source: http://www.squidoo.com/the-pillars-of-theearth-book-review
Thoughts
The story kept my interest and owed well. The book is 970 pages but doesn't feel long at all. With a story spanning over 50 years (1123-1174) those pages are all needed to weave this multi-generational story together eectively. It's like a medieval emotional roller coaster. There are moments of love, joy and happiness mixed in with scenes of greed, cruelty, violence and tragedy.
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8
M 1937 12 May
George VI was crowned at G Westminster
June 1898
Britain signed a 99-year lease for Hong Kong
M May 1611
King Jamess Bible K was rst published w
15
M 1859 22 May
June 1215
King John set his seal to Magna Carta
M May 1945
N Nazi Germany surrendered to the Allies
21 10 M May 1940
Winston Churchill becomes Prime Minister
June 1982
Prince William (William Arthur Philip Louis) was born
28 1
May 1979
William Pitt the Younger was born and went on to become Britains youngest Prime Minister
June 1946
Television liscences were introduced for the rst time
May 1812 11 M
June 1944
D-Day invasion of Normandy by Allied troops
30
June
Tower Bridge was ocially opened by the Prince of Wales
In Germany, it was the tradition that a r tree was cut down on May Eve by young unmarried men. The branches were removed and it was decorated and set up in village square. The tree was guarded
all night to prevent it being stolen by the men of a neighbouring village. If the guard was foolish enough to fall asleep the going ransom rate for a maypole was a good meal and a barrel of beer. A similar festival existed in ancient Rome called Floralia, which took place at around the end of April and was dedicated to the Flower Goddess Flora. On May 1, oerings were made the goddess Maia, after which the month of May is named. Pagan groups call the fertility festival by its Celtic name of Beltane. The church in the middle ages tolerated the May Day celebrations but the Protestant Reformation of the 17th century soon put a stop to them. The Puritans were outraged at the immorality that often accompanied the drinking and dancing - and Parliament banned maypoles altogether in 1644. But when Charles II was restored to the throne a few years later, people all over the country put up maypoles as a celebration and a sign of loyalty to the crown. May Day had a boost in popularity again in the 19th century when the Victorians seized on it as a "rustic delight". But many of the signicant pagan aspects of the day were ignored by our strait-laced ancestors and instead of a fertility rite, dancing around the maypole became a children's game. For traditionalists other things to do on May Day include getting up before dawn and going outside to wash your face in dew - according to folklore this keeps the complexion beautiful. "Bringing in the May" also involves getting up very early, gathering owers, making them into garlands and then giving them to your friends to wear. If you are feeling particularly charitable, folklore advises that it is good time to make up a "May basket" of owers to take to someone who needs cheering up.
http://news.bbc.co.uk/2/hi/special_ report/86133.stm
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Etihad Airways, which this year celebrates its 10th anniversary of operations, has recorded its strongest ever passenger and cargo results for a rst quarter. The Abu Dhabi-based airline posted Q1 2013 passenger revenues of US$900 million (2012: US$758 million), an increase of 19 per cent; and cargo revenues of US$193 million (2012: US$165 million), an increase of 17 per cent. Passenger numbers in Q1 2013 grew by 18 per cent, rising from 2.3 million to a record 2.8 million. Revenue from codeshare and equity partners jumped by 34 per cent from US$136 million to US$182 million in the rst three months of the year and represented 20 per cent of total revenue in the quarter. Another Etihad Airways highlight during its 2013 rst quarter is the launch of its daily ights from Abu Dhabi to Washington D.C., the fourth North American destination for Etihad Airways after New York, Chicago and Toronto.
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www.gms-nancial.com markblackwell@gms-nancial.com
Founded in 1996, GMS Global Management Services is one of Asia's leading professional Financial Advisors with well over 100 years of combined experience in the wealth management arena. With emphasis on strong long term relationships with clients, consultants at GMS are qualied and trained to international standards to ensure clients are provided with the best advice.
info.jakarta@kempinski.com
Located in the Central Business and Embassy District, Hotel Indonesia Kempinski Jakarta balances sophistication and elegance. Directly facing the famous landmark Bundaran HI, which features the iconic Fountain and the Welcome Statue, this fullyrestored historical building marks the revival of the rst ve-star hotel in Southeast Asia. Mix business with pleasure as it is adjacent to the luxurious Grand Indonesia Shopping Town, a mixed-used complex with premium facilities, one-stop solution for staying, working, meeting, shopping, dining and entertainment, Hotel Indonesia Kempinski Jakarta will be the best option for visitors who look for rst class service and facility.
www.kpiconsultancy.com info@kpiconsultancy.com
KPI help companies and individuals to achieve better results from their business communications. After attending our in-house or public training workshops and seminars, delegates are equipped with the skills they need to help them achieve their goals. Participants learn proven techniques to get more time, improve their bottom line, increase sales or reduce stress. Professionals of all levels can learn simple, functional ways to communicate better and make a positive dierence at work.
Mr. Nick Blake Director
www.mri-group.com shanti.dewi@mri-group.com
MRI Group is the worlds 3rd largest independent non-ferrous concentrates and bulk commodities trader with 2.1 million tons traded in 2011. With CWT Singapore-listed logistics group as our parent company, MRI has expanded into the energy sector, trading Coal, Gasoline, Naptha and Biomass. PT MRI Trading is also actively involved in the Domestic coal trade. The Group has a global presence in more than 20 countries worldwide with main oces in Singapore and Zug. MRIs business model are Low-risk physical commodity arbitrage, sourcing and delivering products to our buyer; Active hedging of all index price exposure for the trade while protecting protability; Strong emphasis on active management of all credit and operational risks
Mr. Kirk Evans Director Mr. Winston Bonawi Tan Mr. Rendy Soenarso V.P. Domestic Trading V.P. Biomass Trading
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www.britcham.or.id | 51
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In our Primary School the pupil teacher relationship is crucial and we consciously offer a happy, safe, caring and practical environment to learn in. We focus on independence and skills development, with a balance between adult led and child initiated activities. Oh, and we have fun too!
For 2012/2013 enrollments, please contact Admissions today. www.britcham.or.id | 51 Tel: (62-21) 745-1670 Fax: (62-21) 745-1671 E-mail: admissions@bis.or.id www.bis.or.id
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