Indonesia - United World

Transcription

INDONESIA USAT ok lumimar.qxd
29/11/04
21:06
Página 1
Energy
Private
sector Page 9
Page 6
With Indonesia’s
vast natural
resources hopes
are high for mining
and energy
development
Businesses are
profiting from their
commitment to
serving small,
rural communities
Tourism
Page 12
From world-class
sports facilities to
sun-kissed beaches
and luxury hotels,
there’s something
for everyone
Our World
This supplement to USA TODAY was produced by United World Inc.: 3rd Avenue 350 PMB #244 New York N.Y. 10010 - Tel: 212.286.8117 - Fax: 212.286.1984 www.unitedworld-usa.com
MONDAY, DECEMBER 20, 2004
Indonesia
THE UNITED INDONESIA
CABINET 2004-2009
Popular president
shows the way to
regaining tiger status
The trouble-free elections gave a boost to the economic outlook
Indonesia’s new leader recognizes the challenges ahead but
is determined to live up to his nation’s expectations
■ INDONESIA’S first democratically-elected president is
more than a politician with a
strong popular mandate. He is
a scholar and a former soldier.
Popularly known by his initials, SBY, Susilo Bambang Yudhoyono is a 55-year-old former
four-star general. As Coordinating Minister for Political, Security and Social Affairs at the time
of the 2002 Bali bombing, he won
popularity for his determination
in fighting the war on terror and
tracking down the culprits. Yet
he also earned his PhD in Economics just a few days before taking office.
The son of a retired army lieutenant, he graduated from the
Indonesian military academy in
1973. His military career took
him to East Timor but he also
served as an observer in Bosnia
and held important territorial
commands in Sumatra and Jakarta. As Chief of the Armed Forces
in 1997, he won the epithet “the
thinking general” from the media, yet Mr. Yudhoyono was never part of the inner circle of
military and political power.
He was awarded four-star rank
only on retiring from the army
in 2000. President Abdurrahman
Wahid appointed him Coordinating Minister for Political, Security and Social Affairs, and in
that capacity he presided over reforms of the military including
its withdrawal from politics.
As a Minister he took some
brave positions, admitting that
Indonesia had home-grown terrorists when many of his colleagues denied it, and arguing
for talks with the separatists in
Aceh province at a time when
most politicians were agitating
for war.
President Wahid, facing the
threat of impeachment in April
2001, requested Mr. Yudhoyono
to declare a state of emergency
SUSILO BAMBANG YUDHOYONO President of Indonesia
promised to uphold democratic principles, but at the same
time he pledged to use firm meaand dismissed him from gov- sures to confront instability, inernment when he refused. This surrection, and international
crisis may have lost the former terrorism.
His election-winning manigeneral his job, but it confirmed
him as a man of principle in the festo, published in a “blue book”
eyes of the people. When Pres- during the campaign, was built
ident Megawati Soekarnoputri on four pillars: prosperity, peace,
took office in September that justice and democracy. Top of his
agenda was a plan for
year, she immediateThe new
ly reappointed him as
increasing economic
Coordinating Minis- president has prosperity, targeting
ter for Political, Sepromised to economic growth of at
curity and Social
least 7% and a revival
uphold
Affairs. The powerof small and mediumdemocratic
ful speech he gave on
sized enterprises. He
the first anniversary principles and also put forward poliof the Bali terrorist at- fight terrorism cies to offer better credtack proved he was
it lines, to cut red tape,
capable both of decisive action improve labor laws and to root
and of showing consideration.
out corruption from the top down.
In 1980, he studied at WebHe also proposed a vision for
ster University in St. Louis improving the political stability
where he received an MA in of Indonesia, with a promise to
Management. Recently, he de- end armed separatist movements
fended his dissertation in agri- in Aceh and Papua. “We need to
cultural economics at Bogor balance liberty with security.
Institute and was awarded his What is the point of having
PhD on October 3, two days be- democracy if there is no stabilfore his presidential victory was ity?” asked the new president.
announced.
After taking his oath of office,
He won the October elections President Yudhoyono told the
with 60.8% of the popular vote. people: “We have to remember
100 million Indonesians voted that we will have to weather a
in elections, which confirmed difficult period and face heavy
the country’s transition from au- challenges. All these complex
thoritarian state to lively democ- and difficult problems of our
racy in just six years.
nation cannot possibly be overHis victory was interpreted come in 100 days, with a flick
as strengthening democracy in of the wrist.”
the country and has raised hopes
Mr. Yudhoyono later spoke to
among the public for action on a gathering of business leaders
issues ranging from terrorism in Jakarta. He promised stronger
and corruption to the economy. economic growth and said he
On becoming Indonesia’s sixth would take measures to increase
president but its first directly- the level of legal certainty. This
elected leader, Mr. Yudhoyono is one of the main demands of
foreign investors. “I am convinced that the next five years
will be a beautiful period if we
can work together,” he said. “We
have to think big if we want to
become a big nation.”
The new President swore in
his cabinet, who are mostly established professionals and business-sector friendly officials,
on October 21 at the State
Palace. In his first cabinet meeting he urged his ministers to
prepare more rigorous anti-graft
programs. He then met with the
country’s 33 provincial governors in the Presidential Palace
and asked them to try to live up
to people’s expectations and to
regularly communicate with
their constituents.
Mr. Yudhoyono has set out to
represent the whole of his country. He has said he will meet laborers, farmers and fishermen
and find out the real problems
within the country. He also
promised to meet people in conflict areas.
He described the period after
the election as “a time of conciliation,” and said, “We have
to be more united to face our national challenge to build a better Indonesia. I ask all political
elites to continue our reforms
to secure our democracy.”
One of the biggest challenges
facing the new president will
be meeting people’s expectations, while achieving essential reforms. One of his most
powerful messages to the electorate was that he understood
what people felt. He also reminded them: “Change is necessary because if we continue
like this, Indonesia will descend into decay.”
● Coordinating Minister for Political,
Legal and Security Affairs
WIDODO ADI SUCIPTO
● Coordinating Minister for
the Economy
ABDURIZAL BAKRIE
● Minister of Energy and Mineral
Resources
PURNOMO YUSGIANTORO
● Minister of Finance
JUSUF ANWAR
● State Minister of State Enterprises
SUGIHARTO
● Minister of Transportation
HATTA RAJASA
● State Minister for Women's
Empowerment
MEUTIA FARIDA HATTA SWASONO
● Minister of Maritime Affairs and
Fisheries
FREDDY NUMBERI
● State Minister of Communication and
Information
SOFYAN A. DJALIL
● State Minister of Culture and Tourism
JERO WACIK
● Minister of Trade
MARIE PANGESTU
● State Minister of the Environment
RACHMAT WITOELAR
● Minister of Agriculture
ANTON APRIYANTO
● Minister of Industry
ANDUNG NITIMIHARJA
● State Minister of Communication and
Information
SOFYAN A. DJALIL
● Minister of Public Works
DJOKO KIRMANTO
● Minister for the Accelerated
Development of Disadvantaged Regions
SAIFULLAH YUSUF
● Minister of Defense
JUWONO SUDARSONO
● State Minister of Youth Affairs and
Sports
ADHYAKSA DAULT
● State Secretary
YUSRIL IHZA MAHENDRA
● Cabinet Secretary
SUDI SILALAHI
● State Minister of Small and Medium
Enterprises
SURYADARMA ALI
● State Minister of Public Housing
M. YUSUF ASY'ARI
● Minister of National Development
Planning
SRI MULYANI INDRAWATI
● Minister of Home Affairs
LT. GEN. (RET) M. MA'RUF
● Minister of Forestry
MALAM SAMBAT KABAN
● Minister of Justice and Human Rights
HAMID AWALUDDIN
● Minister of Research and Technology
KUSMAYANTO KADIMAN
● State Minister of Administrative
Reforms
TAUFIK EFFENDI
● Minister of Health
FADILAH SUPARI
● Minister of National Education
BAMBANG SUDIBYO
● Minister of Social Affairs
BACHTIAR CHAMSYAH
● Minister of Religious Affairs
MUHAMMAD MAFTUH BASYUNI
● Coordinating Minister for People's
Welfare
ALWI ABDURRAHMAN SHIHAB
● Minister of Manpower and
Transmigration
FAHMI IDRIS
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Website: www.kalbe.co.id
Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content
29/11/04
21:23
Página 2
Our World
Distributed by USA TODAY
Monday, December 20, 2004
2
INTRODUCTION / A trio of top ministers represent the wealth of commercial and governmental experience in the new United Indonesia Cabinet
Broad-based cabinet commands support
■ INDONESIA’S business sector has reacted positively to the
new cabinet of President Susilo
Bambang Yudhoyono. The United Indonesia Cabinet, as it is
known, is a mixture of familiar
faces, experienced bureaucrats,
and trusted professionals in crucial economic roles. It is also politically broad-based, meaning that
it should be able to command wide
support for the necessary reforms
that it is planning to implement.
One of the strongest parts of
the new cabinet is the trio of top
ministers in economic and financial roles who together represent a wealth of professional,
governmental and commercial
experience.
Mr. Sugiharto, the State Minister of State Enterprises is an
economist and businessman
with a Masters Degree from the
Amsterdam School of Management. He had a successful
business career first in the U.S.’s
Chemical Bank and Bankers
Trust Co. in New York before
becoming Chief Financial Officer of the publicly-listed Indonesian Oil company Medco
Energy International, where he
was known to have been behind
the company’s success.
Mr. Sugiharto brings a strong
long-term vision into the
process of economic restructuring, which is grounded in his
commercial experience. “Privatization should not be aimed
at raising cash to finance the
state budget, but more at creating good corporate governance
SUGIHARTO
State Minister of
State Enterprises
JUSUF ANWAR
Minister of
Finance
ABURIZAL BAKRIE
Coordinating Minister
for the Economy
and improving the companies’
performance.”
Minister of Finance Jusuf Anwar is a hands-on economist
with extensive governmental
experience, meaning that he understands the detailed issues facing the country from a financial
point of view. He knows not only what to do, but how to get it
done. In the past he has served
as Secretary General of the Ministry of Finance and was active
in the Ministry of Justice as a
legal expert. In addition to this
he is a former head of the Capital Market Supervisory Agency
and Executive Director of the
Manila-based Asian Development Bank.
The man with perhaps the
greatest business experience
in the cabinet is the Coordinating Minister for the Economy Aburizal Bakrie. Mr.
Bakrie is very prominent in
Indonesian business circles,
having built his own company Bakrie and Brothers into a
large enterprise and one of the
most successful companies in
the country.
Twice elected President of
the ASEAN Business Forum
from 1991 to 1995, Mr. Bakrie
served two mandates as Chairman of the Indonesian Chamber
of Commerce from 1994 to 2004
and founded the Indonesian
Young Entrepreneurs Organization back in 1972.
success of the country as a whole
will advance together. MSMEs
are now the main engine of the
economy and are expected to produce much of Indonesia’s growth
in the next period.
So, the economy in the future
will be a grassroots economy. This
means that it will become important to create a synergy between
the MSMEs and the big companies in order to improve their markets. “Their financial capability
will increase with the improvement of their trade,” says Mr.
Rudjito. “If they can achieve good
production and find good markets, the bank will follow them.”
The recent trouble-free presidential election reduced the risks
of uncertainty and improved expectations about the economy,
according to the Governor of the
Bank of Indonesia Burhanuddin
Abdullah. “Toward the end of
this year Indonesia’s economy
will return to its vigorous spirit,”
he predicts.
The central bank will play a
crucial role underpinning this recovery, according to its governor. “The Bank of Indonesia must
establish certainty, because its
main function is to maintain
macro-economic stability, especially in this transition period,”
says Mr. Burhanuddin. The bank
has been granted independence
from policy interference to enable
it to carry out this function properly, he adds.
In the past few months, the
Bank of Indonesia has taken steps
together with the government to
control inflationary pressures. “By
looking ahead, we have been successful in our efforts to reduce
the inflation pressures in 2003
and we have to be able to maintain it in the future. A reduction
in the interest rate has also been
achieved. This provides us with
the possibility of improving the
economic activities of society,”
says Mr. Burhanuddin.
Taken as a whole, the stability of the financial sector is an important basis for increased
international trade, especially
with the U.S. – one of Indonesia’s most important target markets. In recent years, the main
driver of the economy has been
domestic consumption. Stability
and a very low interest rate has
provided millions of ordinary Indonesians with improved purchasing power.
A sector that has benefited
greatly from this low inflation
environment has been the hugely important micro-, small- and
medium-sized
enterprise
(MSME) sector. Out of 43 million corporate entities more than
95% are MSMEs. “Everybody
agrees that now MSMEs are receiving the benefits of this low
interest rate and the economy is
moving again. Toward the end of
this year, I believe that GDP
growth will be at 5%. So banks
have to focus on that market.
There is still lots of room available for the banks in the MSME
market,” says Mr. Burhanuddin.
Banking has recently been one
of the best performing and fastest
growing sectors of the economy.
The government rescued the sector after the 1997 crisis by absorbing most of the major banks
and implementing a major restructuring process.
“We believe that ownership by
the government of our banking
sector has placed the risk solely on
the government, as it manages, supervises, and owns them. We have
to spread the risk to the private
sector and the public,” he says.
The privatization of the banks
was put on hold this year until after the elections. Now these have
passed, the prospects for investors
are substantial, as there are still
several banks to be divested.
“From our point of view this is
a good thing if it can improve the
performance of the sector,” says
Mr. Burhanuddin.
The Governor is also in charge
of bank supervision. “I can assure
the public and the banking industry that any bank will be closed
if its management is committing
illegal activities to gain personal benefits and thus jeopardizing
the bank’s business and putting
it in a difficult position,” says Mr.
Burhanuddin. “I am in the business of helping to maintain the
trust of the people in banks. It is
a serious matter.”
Small companies mean big business
for Indonesia’s financial sector
■ BANK RAKYAT Indonesia order to grab the market, we had
(BRI) is one of Indonesia’s old- to increase our technological caest banks, but also one of its most pability. That’s why we transmodern. The bank has enjoyed formed our technology from a
consistent success, even during decentralized system to a centimes of economic difficulty. Its tralized one,” says Mr. Rudjito.
business model is now regarded The bank has established a real
as the blueprint for the overall re- time on-line system in 325
generation of the country’s fi- branches, 148 sub-branches and
nancial sector.
more than 300 BRI units. AnThe bank has grown big by other 4000 units are already comthinking small. It is one of the puterized although not in the real
few banks in the country to focus time system yet.
its business on the micro, small,
“At least our people are aland medium-sized enterprise ready using computers in the rur(MSME) sector.
al areas, despite the fact that they
“BRI is and has always been are maybe using only simple
the bank of the people,” says Pres- ones,” says the CEO.
ident Director Rudjito. It is thanks
BRI was established in 1895
to this base that it did not suffer when money from the fund of a
the impact of the 1997 crisis as mosque was used to help small
severely as other
traders avoid moneyMicro,
banks that deal mainlenders. Since its cresmall, and
ly with large corpoation it has supported
medium-sized the agricultural, fishrate clients.
“In BRI we divide enterprises are ing, and handicrafts
the real sector into four the new engine sectors. It advanced
segments: the micro,
of economic through a combination
the small, the mediof teamwork and good
growth
um, and the corporate.
leadership to emerge,
The corporate was the locomo- more than a century later, as Intive of the economy before the donesia’s fourth-largest bank. It
crisis but suffered a decline. We manages $10.4 billion of assets,
are unable to revive the corporate has 4,000 branches and employs
capacity because a large number 31,000 people. The bank is 59.5%of the corporations are leaning on owned by the government and
debt and not leading on their eq- the remaining shares were floatuity,” explains Mr. Rudjito.
ed on the stock exchange in 2003.
“On the other hand, the micro
Earlier this year, BRI issued
and small enterprise sector is do- its first bond on the Jakarta Stock
ing very well. This is also the Market, which was seen as the
case with BRI because we focus first step towards a further flotaon this type of business. That’s tion of shares.
why during and after the crisis we
The first aim of the bond was
could maintain our economic to increase the bank’s capital adgrowth,” he says.
equacy ratio. Its secondary aim
Another reason for BRI’s suc- was to improve investor conficess has been its efficient imple- dence before stocks are issued on
mentation of information the market. “We were able to extechnology. “We realized that in ecute it very quickly and received
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The banking sector has provided financial
stability for an increase in international
trade, especially with the U.S.
Bank Rakyat Indonesia has 4,000 branches and employs
31,000 people across the archipelago
RUDJITO
President Director of Bank
Rakyat Indonesia
a good response,” says Mr. Rudjito. “The issue was oversubscribed five times from overseas.”
BRI increased its first quarter
net profit in 2004 by 46.6% to
$118.7 million from $82.6 million during the same period in
2003. The bank forecasts net
profits of $285 million for 2004.
Mr. Rudjito now plans an expansion of 18% to 20% on trade
and loans every year. “If we want
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Mr. Rudjito has a strong work
ethic and expects top results from
his employees.“We have to respect the intangible asset that we
have in our people by empowering and motivating them. Not
only do we have to make them
committed to their job, we have
to raise their commitment to their
job. The competition is getting
tougher and extra commitment
is important.”
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29/11/04
21:08
Página 3
Our World
BANKING / International interest in Indonesia’s financial sector is at an all-time high following the successful restructuring of the industry
Privatization process
attracts global buyers
looking for investment
opportunities
■ AWAVE OF foreign investor
interest in Indonesian banks is
just one indication of the growing credibility of the country’s
resurgent financial sector.
The past two years have seen
several successful bank sales
and there are more to come. One
of the most eagerly anticipated
opportunities is the government’s planned sale of the last
20% of Bank Internasional Indonesia, still in state hands. The
bank is already partially owned
by a consortium of foreign
banks.
Perusahaan Pengelola Aset
(PPA), the state-owned company responsible for managing the
sale of state-owned banks, is
aiming to divest the bank completely into private hands at
some time in the next 12 months,
says BII President Director Henry Ho. BII is already one of the
most actively traded shares on
the Jakarta Stock Exchange and
Mr. Ho says he would welcome
interest from U.S. investors.
BII is Indonesia’s sixth-largest
bank, with 250 national branches and four abroad. The bank
started a new chapter in its life
in December 2003 when the
PPA sold a controlling stake to
Sorak, an international consortium jointly owned by Singapore's Temasek Holdings,
Malaysia’s ICB, Korea’s Kookmin Bank, and the UK’s Barclay’s Bank.
“They are serious investors
with long-term views and a belief in Indonesia. They believe
that if you put strong and capable professional management
into the bank, you can turn it
around and make a good business out of it. That is exactly
what happened,” says Mr. Ho.
“We are on a roll,” he adds.
“We are very excited about the
opportunities in our business
and believe that if we carry our
work off well we should be able
to generate a sustainable rate of
return exceeding 20% for the
shareholders,” he says. “We
want to have a significant market share in key areas in the con-
sumer banking businesses,
namely credit cards, automobiles, motorcycles, and mortgages. I am also confident that
we will be able to create good
revenue momentum and at the
same time manage our loan losses,” says Mr. Ho.
BII has cleaned up its nonperforming loan portfolio and instituted international standards
in determining the quality of
loans, including vintage analysis work to continuously update
its front-end risk assessment cri-
HENRY HO
President Director of Bank
Internasional Indonesia
teria. “This discipline will help
to minimize and keep loan losses at acceptable levels,” says
Mr. Ho.
The President Director thinks
that Indonesia’s fortunes are
changing for the better too. “I
am very optimistic. I had the
chance to talk to a lot of business people and fund managers
on a recent trip to Washington
and New York. All of them have
Indonesia on their radar screen.
The investment opportunities in
Indonesia are just compelling.
It is a very large country with
240 million people and a huge
amount of resources have yet
to be exploited,” he says.
“I believe we will start to see
more foreign direct investment
coming into the country soon,”
he adds. “In anticipation we are
planning and realigning our
business strategy on the basis
that the Indonesian economy
will start to take off at a faster
and higher rate than we have
seen recently.”
For several years the economy has been ticking along on the
single engine of domestic consumption, which has generated
growth of 4% to 5%. However,
BII anticipates that as foreign investment begins to kick in,
growth will begin to take off in
an impressive fashion.
“We will gain strong traction
in the next year or so when investors start to put in serious
money across various industries. We are planning for that
scenario. Economic growth
should reach to 7% or 8% next
year, a level that the economy
needs to achieve to be able to
create adequate new employment,” says Mr. Ho.
With 40 million small- and
medium-sized enterprises in the
country, there is enough space
for every bank to get involved.
It is an under-served market.
Banks that will do well are those
that can deliver a quick response
in terms of credit processing,
in addition to excellent customer
care and service.
As if to prove the growing
competitiveness of the banking
system, Perusahaan Pengelola
Aset is also currently negotiating the sale of Bank Permata, Indonesia’s seventh-largest lender.
In early October, the UK’s Standard Chartered Plc and leading
Indonesian car manufacturer Astra International won the bid for
a 51% stake in the bank, valued
at $305 million.
Analysts say this could be one
of the most expensive acquisitions in Indonesia’s bank divestment history. It was the
London-based bank’s third attempt to buy an Indonesian
lender and competition was
fierce. PPA has received 32 expressions of interest in Permata. By contrast, one earlier bank
privatization only attracted two
bidders.
“It is a turning point. The question is now how we can take ad-
Pertamina
As state-owned banks go on sale competition is fierce and bids are
high from serious investors with long-term plans for growth
With 40 million small- and medium-sized firms, Indonesia’s business investment prospects are compelling
vantage of this situation,” says that there are investment opMohammad Syahrial, President portunities here. Hopefully inDirector of PPA, which took terest will continue to increase
over the management of now, because as long as we have
approximately $66 billion of the right procedure to dispose of
state assets after the closure of our assets many people will exthe Indonesian Bank Restruc- press their interest in them,” he
turing Agency (IBRA) in Feb- says.
But structural changes canruary 2004. The IBRA was
founded in January Reforming the not be done overnight.
The process of reform
1998 to prevent the
tax structure is a long-term one and
major banks from
collapse after the fi- and establishing extends much beyond
nancial crisis. Its consistent legal the task of simply stamain objective was
systems will blising the economy.
to restructure and pri- help to attract “If you look at our
vatize the country’s new investors economy it is basically driven by consumer
banking sector and to
further reduce the state budget spending, not by investment,”
says Mr. Syahrial. “There has
deficit.
Like Mr. Ho, at BII, Mr. not been enough investment beSyahrial is enthusiastic to en- cause no support has been procourage investors from the Unit- vided for investment policies
ed States to invest in the that creates a conducive climate,
Indonesian banking sector. such as policies for tax exemp“Starting in 2002, they began to tions, clear land regulation, lepick up Indonesia on their radar gal certainty, and consistency
once again, but it might take in regulations. We must be able
five years for people to realize to provide these things and pro-
mote them to investors, he adds.
“The PPA’s objective is to enhance value. Time is no longer
our enemy, because we have five
years ahead of us. Right now the
government must focus on providing sweeteners for investment. We have to set up a a good
tax structure, and most importantly a good legal enforcement,”
says Mr. Syahrial.
He continues, “These policies
will build on the successful financial stabilization achieved by
the former government.”
The PPA President Director
goes on to say that the whole
country has undergone a paradigm shift from the New Order
regime during the Soeharto period to the regime of civilians. So
a lot of policies and regulations
in the investment and financial
sector and in tax are changing.
For example, the amount of tax
revenue collected in the past 3.5
years is equivalent to the amount
collected over 32 years by the
Soeharto regime.
29/11/04
21:09
Página 4
Our World
PRIVATE SECTOR / Businesses drive to diversify into non-oil related industries
Coffee industry tailors its
taste to U.S. palate
PT Prasada Japa Pamudja
■ THE JAKARTA Tower is one of the
most ambitious projects ever undertaken in Indonesia. By the time it is completed, around 2010, the tower will be the
tallest in the world, soaring high above
the ground at approximately 1,830 feet.
The flagship project – located at Kemayoran – is being developed by a consortium of more than 100 companies and
individuals, known as PT Prasada Japa
Pamudja. Dr. Abraham Alex Tanuseputra, President Commissioner of the project team, one of the driving forces behind
the idea, says that there is a deep significance in the tower and that it will give
a unity to the people of Indonesia.
There is a meaning behind the name PT
Prasada Japa Pamudja. Prasada means
tower, Japa means prayer, and Pamudja
means worship.
Dr. Tanuseputra, otherwise known as
Pastor Alex, is the leader of the Gereja
Bethany Indonesia, or Bethany Church,
which he founded as a small provincial
church in with a congregation of just 300.
The Church now has about 800 branches, 40 of them overseas. It has become
one of the main organizations supporting the construction of the Jakarta tower project.
Continued on page 12
ABRAHAM ALEX TANUSEPUTRA
President Commissioner of
PT Prasada Japa Pamudja
coffee is that it is able to prepare different blends to suit
the tastes of many different
customers. “If a hotel has
many guests from Japan, we
will prepare a blend that suits
the Japanese taste. We blend
and roast only the very best
quality coffee beans and because we have been in the
coffee business for a long
time, we have a good understanding of how the markets
in other countries work,” says
Mr. Pranoto.
“We started with the corporate market because they
understand our quality, and it
is easy to persuade them to
buy our coffee,” he adds. “We
want people to know that our
brand of coffee is an excellent blend of coffee from all
over Indonesia. We also want
them to recognize that we
have a good understanding
of the quality and the taste of
each of the coffee varieties
that we are blending.
We are now in a position
to introduce our coffee to people outside the country. However, if most of the people in
Indonesia drank good coffee
such as ours we wouldn’t
need to worry about exporting any more,” he adds.
Indonesia has a competitive
advantage in growing arabica,
although it is a sort which can
only be grown in certain locations, depending on height
above sea level and type of
soil. Of all Sari Makmur’s export markets it is the U.S. has
the highest demand, and it increases its demand for Indonesian arabica every year.
Sari Makmur takes the
buyers from its international customers to its ‘Coffee
Room’. “From watching how
they drink their coffee we
learn what type of coffee they
prefer,” says Mr. Pranoto.
“Most Americans prefer the
arabic Mandheling from central Aceh, an area called
Gayo.”
KAPAL API
Family business sets out ambitions to introduce
its gourmet coffee throughout southeast Asia
■ THE HISTORICAL
fame of Indonesian coffee
in the United States can
be gauged from the fact
that ‘java’, the original
name applied only to arabica coffee from the island
of Java, has long been
American slang for any
sort of coffee. One of the
leading companies still
trading on this famous reputation is Kapal Api, which
has dominated the domestic coffee market ever
since it became the first
Indonesian company – in
any industry – to advertise its products on TV.
Kapal Api is a familyowned business that was
created in 1927 by Go Soe
Loet, a Chinese immigrant.
It soon began producing
coffee under the brand
name Kapal Api, which
means ‘steam ship’ in Indonesian. At the time, the
vessel was a symbol of
technological superiority
and a mark of luxury.
The company is still run
as a family business and the
firm’s most senior management is made up of the
founder’s three children, the
eldest of whom is the Chairman, Indra Boedijono.
Mr. Boedijono has brought
in professional management
to supplement the family
contribution. This has enabled the company to maintain its leading position in
the Indonesian coffee market. It regularly monitors
trends in the international
coffee business and launches new products, which led
it to win the 2003 Indonesian
Brand Award.
“We have engaged in
many promotions and advertisements to increase consumption. Our vision and
target is to become one of
the largest food and beverage companies in southeast
Asia. We will implement
our strategy slowly, step by
step, and perhaps it will take
us two or three years to do
it. It may take us another
generation to achieve all our
Kapal Api
Symbol for
the nation
SURYO PRANOTO
President of Sari Makmur
Kapal Api regularly launches
new products and promotions
targets,” says Mr. Boedijono.
Coffee in Indonesia is a growth
market. Indonesians consume on
average 500 grams of coffee per
person, per year while the Japanese probably consume 6 to 10
kilograms. However, as the economy grows, coffee consumption
will inevitably increase.
While it builds on this strong
U.S. business
people seize
opportunities
■ AT THE height of the oil and
Producers prepare special blends and roasts to suit the taste of their clients
The company is one of
■ THE U.S. is Indonesia’s
most important market for Indonesia’s leading coffee
coffee. It imports 50% of the exporters. Data from the Incountry’s production of ara- donesian Coffee Exporters
bica beans. This makes the Association shows that Sari
coffee-growing sector one of Makmur exported $1.5 milthe most important in the gov- lion worth of coffee to the
ernment’s drive to diversify in- U.S. in both 2002 and 2003.
to non-oil related industries. In addition to this it also exIn the past decade, the coun- ports, mostly green beans, to
try has slipped from its posi- Australia, Singapore, and
tion as one of the world’s some countries in Europe.
“We export a good share of
top-three coffee producesr. It
is now in fifth place. This is the total production and we
partly because of competition intend to keep on doing so.
from Vietnam but also due to Coffee is our first line of
business developthe long-term deSari Makmur ment, the second is
cline in world cofcocoa, and the third
fee prices, which
has formed
has driven some
partnerships is spices including
producers out of with corporate cinnamon, nutmeg,
mace, cardamom,
the market.
Sari Makmur is clients including cloves, and long
one of the compa- the Hilton and pepper,” explains
nies now leading Marriott hotels Mr. Pranoto.
Sari Makmur althe recovery of the
sector by shifting away from so blends its own coffee for
production of robusta coffee the domestic market. One of
– the sort mostly grown in its leading brands is sold unVietnam – to arabica coffee, der the name “Super Great”
which commands higher coffee. It has built partnerships with approximately 400
prices internationally.
“The price of arabica beans, corporate clients in the counespecially the arabica Mand- try, such as cafés, restaurants,
heling that we plant in Suma- and hotel chains including
tra, is still deemed suitable by Hilton and Marriott.
A demonstration of the
farmers,” says Sari Makmur’s
company’s understanding of
President Suryo Pranoto.
core business, Kapal Api has
become a diversified group with
coffee at its center. Candies account for 20% of sales. Its Dorino brand is a national bestseller.
The company is also licensed
to produce Sunkist fruit juices
in Indonesia.
Exports account for little more
than 1%. They are focused on
Shanghai, Myanmar, and
Malaysia. But Mr. Boedijono
is content to expand gradually.
“We will try to achieve our target slowly by ourselves, one
country at a time. But we are
open to partnerships,” he says.
One idea is to expand an
ongoing chain of gourmet
coffee shops into America by
making an acquisition on the
west coast.
rubber boom after the end of
the Second World War, Indonesia ranked third in terms of U.S.
total direct investment in Far
Eastern countries.
U.S. business had come to the
country for the first time in 1897
when the Standard Vacuum Oil
Company of New York (later
Mobil Oil) set up business in
Palembang.
But times have moved on since
then, according to Wayne Forrest,
Executive Director of the American Indonesian Chamber of
Commerce (AICC). “Although
the U.S. continues to consume
large quantities of Indonesian
rubber, oil, spices, wood products, and coffee, it has also become Indonesia’s largest market
for manufactured goods. Several hundred U.S. firms now do
business in the country over a
wide range of sectors,” he says.
Tourism is another area where
Indonesia would like to have
greater interest from America.
In fact this year the U.S. Travel & Leisure magazine gave Bali
the World’s Best Island Award
for the third year running. The
Consulate General of the Republic of Indonesia in New York,
Mr. Wahyono, who received
the award earlier this year, says
it confirms how Bali has
bounced back as one of the
world’s top tourist destinations.
“Bali has managed to recover,
now we have to maintain our
success,” says Mr. Wahyono.
Diversity is key
to success
■ HARVEST International is
Indonesia’s leading strategic advocacy firm. Harvey Goldstein,
its charismatic President Director, has over 35 years’ experience doing business in
Indonesia.
The company runs regular business forums, which in the past
have hosted presidents of the republic and senior cabinet ministers. It also runs networks in both
the public and private sectors. Harvest International’s strategic relationships extend well beyond
Jakarta and deep into the
provinces, regencies, and districts.
The firm also publishes
Indonesian Business Perspective, one of the country’s leading commercial publications. It
even has its own radio program,
a live business forum broadcast
weekly on Radio Republik Indonesia, the biggest broadcaster in the country.
Shipping our promises on time
Best value makes up our
award-winning business
PT Ramayana Lestari Sentosa Tbk
Jl. K. H. Wahid Hasyim 220 A-R
Jakarta Pusat 10250 – Indonesia
Tel: +62 21 392 0480, www.ramayana.co.id
4
PT Arpeni Pratama Ocean Line is Indonesia’s most customer-oriented shipping line, and has grown
to be a key player in the shipping industry domestically and internationally, linking the Indonesian
archipelago to major ports all over the world. The company’s vessels provide a wide range of
diversified maritime transportation services to export markets in Asia, Australia, and the U.S., with
100% customer satisfaction regarding delivery, timing, efficiency, and security.
PT ARPENI PRATAMA OCEAN LINE
Wisma BSG, 7th floor, Jl. Abdul Muis Nº 40, Jakarta 10160, Indonesia
Tel: +62 21 350 5350, Fax: +62 21 384 7683
e-mail: [email protected], www.apol.co.id
ISM
CODE
ISO 9001
Certificate Number : 32135
DOCUMENT OF COMPLIANCE
ISM CERTIFIED 1996
5
29/11/04
21:10
Página 5
Our World
SHIPPING / Industry is optimistic as public and private sector plans get under way to modernize the fleet and expand trade opportunities
Government’s master
plan gives long-term
support to shipping
National maritime objectives highlight need to increase fleet capacity
tion consisting of more than
17,000 large and small islands,
Indonesia relies on sea transportation for its economic
development.
For this reason, the future of
the national fleet and the right
of cabotage – the right of domestic vessels with local crews
to carry domestic cargo and
passengers – has become
a major policy issue for the
government.
During the ten years up
to 1998, the market share of
Indonesian flag carriers decreased from 35% to 3.5%.
“This has been a big problem for
Indonesia,” says Tjuk Sukardiman, Director General of Sea
Communications at the Ministry of Transport. “It is dangerous, because we are an
archipelago. But, in fact, we
don’t have the adequate capacity to handle the freight, which
is carried by foreign shipping
companies.”
Oentoro Surya, Founder and
President Director of PTArpeni
Pratama Ocean Line, one of the
TJUK SUKARDIMAN
Director General of
Sea Communications
OENTORO SURYA
President Director PT Arpeni
Pratama Ocean Line
largest and leading Indonesian
shipping companies, supports
the implementation of cabotage
rights. “We want to have legal
certainty, otherwise we cannot
focus. So we have to establish
a framework to provide fair
treatment for everyone,” he says.
Arpeni was founded in 1975
with a single vessel for carrying logs. It now operates 88 vessels and provides a wide range
of diversified maritime services
including the transportation of
products from the timber, mining, and oil industries.
Arpeni’s main export market
in the region is Australia. It also carries a lot of plywood for
the U.S. market where it has a
market share of 45%. But Japan,
where it has a 60% share of the
plywood market, is its biggest
export destination. Arpeni also
transports approximately half
the coal used by the domestic
power stations.
“Sea transportation plays a
The government has increased its budget for port construction
New maritime routes
will boost exports
■ HUMPUSS Intermoda Trans-
portasi has opened a new shipping route for Indonesian
exporters. It could become one
of the main channels of trade between the massive archipelago
and the United States.
The new route runs from
Bitung, on the north coast of
Sulawesi Island in central Indonesia, to General Santos in
the southern Philippines. This
will be a platform to transport
goods not only to the U.S. but
also to other major markets
across the Pacific.
“It has been a part of my
dream to transport products to
America,” says Budhi Halim,
the outgoing President Director of Humpuss. “We are looking for a partner to help
overcome the strict regulations
and complexity of the market,”
he explains.
“We are trying to work with one
of the local shipping companies
in the Philippines to develop other lines from Bitung-General
Santos to Taiwan and also to
Hong Kong. The route will serve
as a main gate for exports and will
receive full protection from the
Indonesian government. So, for
a certain number of years, no other shipping company will be able
to operate on it,” says Mr. Halim.
The company has opened up
the new shipping route thanks
to its pioneering work in developing export and import activities from the eastern part of
Indonesia.
In the past, cargoes from the
east had to pass through
Surabaya and Jakarta to be delivered to Singapore from where
they were later shipped to the
U.S. and Europe. “We have
shortened that course. By shipping cargoes to Bitung we are
able to save four days of shipping time and $400 to $600 per
container,” says Eddy Pranomo,
former Commissioner and now
newly-appointed President
Director of Humpuss Intermoda Transportasi.
The business operates 18 ves-
EDDY PRANOMO
President Director of
Humpuss Intermoda Transportasi
sels and specializes in the transportation of liquids, chemicals,
and also fish products, thanks to
the newly-opened route to the
U.S. and southern Philippines.
It was also the first company to
enter the liquid natural gas
(LNG) transportation business
and now ships LNG, LPG, oil,
and methanol to the U.S., Singapore, Asia, and Europe.
“Several of our vessels, in-
cluding the oil and LNG tankers,
are already chartered by the
state oil company, Pertamina, so
we were not really affected by
the economic crisis,” says Mr.
Pranomo.
The firm aims to gain new
business opportunities in light
of the gradual integration of
the ASEAN market and is
working with Japanese companies and discussing a partnership with the Canadian firm
Scan Asia.
The company has diversified
in the last five years into providing door-to-door services
and also offers ship management services. It already runs
three LNG ships for their
Japanese owners and supplies
Indonesian crews and engineers, mostly for Japanese vessels. Shore-side developments
include the recent acquisition
of 1,000 hectares of land for development into industrial
coastal-maritime zones and 500
hectares to expand existing
zones.
Humpuss Intermoda Transportasi is also expanding its
core business. It plans to double the number of its rural
transportation vessels to six,
each with capacity for 1,000
passengers and 200 cars, and
wants to operate its own port
facilities for them in Jakarta
and Sumatra.
“We recently acquired a vessel from Korea, a small chemical carrier with a fully
stainless steel tank,” says Mr.
Pranomo. “And we plan to acquire another.”
Arpeni
■ AS AN OCEAN block na-
Arpeni provides a wide range of diversified maritime services
very important role for Indone- ping and shows how financing
sian trade,” says Mr. Surya. “We problems can be overcome.
“Our biggest problem lies in
have plenty of natural resources.
However, we cannot carry these the fact that we don’t have
products by truck. We can only enough capital to provide the
necessary fleet capacity,” excarry them on ships.”
Arpeni is one of
A new policy plains Mr. Sukardiman. “We don’t have
the few national
allows the
the money because
shipping companies
to hold its own and private sector foreign shipping comgrow in spite of the to participate panies are carrying the
freight. We are caught
pressures from forin port
eign competition.
construction in a vicious circle.”
The Director Gener“We are customer- and operation
al of Sea Communicaoriented but also
market minded,” explains Mr. tions plans to break the cycle with
Surya. “Sometimes people man- a long-term government master
ufacture their products but they plan to be completed in 2024.
The government has launched
don’t know how to ship them
out and how to generate rev- Indonesian Sea Transportation
enues. That is why, based on Incorporated, which provides
our capacity and capability, our incentives for shipping compacompany creates value for its nies to obtain capital to build
new vessels. It is also developcustomers.”
The shipping line has a tight ing programs with Japan’s Incustomer base. Ten main clients ternational Cooperation Agency
form 64% of its portfolio. The and the World Bank.
In addition, there are plans to
company, which runs an integrated shipping transportation modernize and expand the transservice, also has competitive portation fleet. Indonesia has
advantages in the transporta- constructed eight pioneer vestion of bulk coals, forest prod- sels since 1991, which have
ucts, general cargoes, liquids, been given to local governments
and ship management. It issued to operate.
“We have involved every
a $43.8 million bond in
Surabaya last year to fund the sector and every department of
government to improve and impurchase of two ships.
The expansion of the Arpeni plement the cabotage princifleet is leading the way in the ple,” says Mr. Sukardiman. “For
recovery of Indonesian ship- example, to ship oil products
we have to coordinate with Pertamina, the state oil company.
To ship coal products we have
to coordinate with the mining
industry, and so on.”
The government has also increased its budget for port construction and a new policy
allows the private sector to participate in the construction and
operation of ports.
Hutchison Port Holdings has
invested over $400 million in
Jakarta’s container hub port.
Investors are being brought
into port projects at Bata and
East Kalimantan.
Sea transportation is a key
element of Indonesia’s economy
29/11/04
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Our World
6
MINING AND ENERGY / Streamlined processes for foreign investment will encourage investors and help
Resource rich and ready to show its
Hopes are high for
mining and energy
development, and
Indonesia is set
to become a major
world supplier in
years to come
■ BLESSED WITH a vast array of natural resources, including oil, Indonesia has
become a leading global player in the mining and energy sectors. The only Asian member
of the Organization of Petroleum Exporting Countries (Opec),
it is a strategically important
supplier of crude oil to the rest
of the region.
Increasingly, it is becoming a
key exporter of gas to energy-dependent countries such as Japan
and South Korea. Already the
world’s largest supplier of liquefied natural gas (LNG), Indonesia is eyeing up the U.S.
West Coast market, which is set
to open up in the coming years
as domestic reserves dwindle.
On the mining and minerals side,
Indonesia is again one of the richest territories on the planet, home
to a multitude of resources from
the exotic to the more mundane.
Despite falling oil production
in recent years, as a result of the
maturity of the major fields,
there is general optimism that the
PURNOMO YUSGIANTORO
Minister of Energy
and Mining
SIMON F. SEMBIRING
Director General of Geology
and Mineral Resources
country can continue to be a ma- for 2004. In a bid to ramp-up
jor supplier in the years to come. production, the government has
Purnomo Yusgiantoro, Minis- streamlined its processes and is
ter of Energy and Mining and starting to see an upturn in forcurrent President of OPEC, says eign investment in new explothat out of the counration and production
try’s 60 hydrocarbons
activities.
One reason
basins, around 15 to
As well as the geofor the surge
20 have not yet been
logical
potential – Inin energy
explored.
“The
donesia has a good
investment is track record in turning
prospects are there for
the shift to
exploration and proup oil discoveries – it
natural gas
duction,” he says.
is strategically locat“That’s the reason
ed between two
why we provide fiscal incen- oceans: the Pacific and Indian,
tives for companies to come in and between two continents:
Australia and Asia. This means
and sign contracts with us.”
During 2003 the ministry it is closer to major consuming
signed 15 production-sharing markets like China and Japan
contracts for exploration and than the oil-rich Middle East.
One of the reasons behind the
production. It is aiming at 27
B. N. WAHJU
Chairman of the Indonesian
Mining Association
surge in energy sector investment is the shift towards natural gas – an increasingly important
product in its own right – as well
as oil. Indonesia is a long established LNG supplier to the region but is looking to strengthen
its hold in emerging gas markets such as China and the U.S.
BP is developing the Tangguh
LNG export project to take advantage of these opportunities.
Mr. Yusgiantoro says China has
already agreed to buy Indonesian
LNG for one of its first import
terminals. Gas is also to be sent
to a receiving terminal in Baja
California, which could end up
in the U.S. market. “Gas is a
form of clean energy and we are
pushing for that market.”
ENERGY / Leading local energy company Energi Mega Persada has overtaken its rivals and still has prov
Committed to environmental protection,
PT ENERGI MEGA PERSADA Tbk is not
only one of Indonesia’s highest performers
but one of the country’s most
community-minded companies.
Energi MP recognizes that it benefits from social
development and is proud to fulfill its
responsibility to improve people’s living
standards. Through responsible environment
management, educational programs,
scholarships and job training, Indonesia’s most
rapidly expanding oil and gas enterprise is
ensuring that the company and the community
are growing together.
■ ONE OF Indonesia’s fastest
growing companies, Energi
Mega Persada (Energi MP) illustrates the new-found confidence among many private
sector firms in the country.
In the energy sector, Energi
MP has emerged as the leading
local player, overtaking its rivals and competing head on
with international heavyweights
such as BP and ChevronTexaco. The oil and gas company,
now the largest in the country,
owns and operates eight blocks
located throughout Indonesia. It
is the only local company to
have successfully developed a
gas field in Indonesia.
Last June, the company successfully launched its first share
offering to the public placing
30% of the stock in the hands
of investors. Strong returns and
a healthy outlook for the company and the energy sector overall have appealed to the
investment community, injecting fresh funds to boost further
upstream development.
President Director Rennier A.
R. Latief exemplifies the firm’s
growing ambitions. After guiding the company through the
recent initial public offering and
raising hydrocarbons production he is eager to take Energi
MP onto the next level. He sees
great potential in the energy
business in Indonesia given the
country’s substantial reserves
base and the growing regional
and domestic demand for resources.
Opportunity knocks for stra
player in the energy market
Delivering on oil and gas reserves that international multinationals can’t make pro
“We grew during the eco- and squeezing production volnomic crisis,” says Mr. Latief. umes ever higher. The high
“But we have grown slowly. We price of crude oil means the
could have grown faster if we company is confident of exhad been able to access the mon- ceeding its 2004 net profit tarey market back in 1995, because get by up to 30%. It has already
we would probably have three revised its net profit target for
of four times more capital than 2004 from $20 million to $22.2
million. It made a net profit of
we have at the present time.”
With a market capitalization $10.1 million during the first
of around $500 million, the half of the year.
Future plans focus on develcompany is already a significant player on the Jakarta Stock opment in the western part of
Indonesia. “We still
Exchange, but more
is to come. Mr. Latief Working closely have a lot of undevelsays, “We expect that with local groups oped potential in the
we will grow to twice to minimize the west. By redistributour current size.” He environmental ing energy from the
predicts finance for impact on host western to the eastern
part of the country we
this expansion will
communities will have contributed
come not just from
loans but also by further equi- to the improvement of industry
ty sales. Mr. Latief is equally there. Growth of industry will
keen to promote Energi MP to increase and with it the conforeign investors, another way sumption of energy,” explains
of attracting funds into In- President Director Latief.
The President Director says
donesia. About 85% of the company is owned by foreign that the company hopes to use its
considerable and growing cash
investors already.
Energi MP’s approach has reserves to finance capital exbeen centered on achieving in- penditure during 2005. “This is
cremental growth, slowly build- still under discussion, since we
ing up its upstream asset base, first have to get approval from
BP Migas, the organization responsible for regulating and restructuring in the energy industry.
“We will develop the plan in
November 2004. In 2005, it
might become 2.5 to 3 times
higher than that in 2004. This
is because we have found quite
a significant amount of gas and
oil reserves” adds Mr. Latief.
The company plans to drill 39
wells at the Strait Malacca Block
and Brantas Block. Both blocks
consisted of 19 exploration wells
and 20 developing wells. Earli-
RENNIER A. R. LATIEF
President Director
PT Energi Mega Persada
Wisma Mulia, 33rd Floor
Jl. Jenderal Gatot Subroto Kav 42
Jakarta 12710- Indonesia
Tel: + 62 21 5290 6250, Fax: + 62 21 5290 6254
www.energi-mp.com
The high price of crude oil means that Energi MP is confident of exceeding its 2004 net profit target by up to 30%
7
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Our World
vestors and help ramp-up production
At home, the demand for gas
is growing with state firm PT
Perusahaan Gas Negara (PGN)
rolling out new pipelines to supply more areas. “During the last
decade, natural gas emerged to
become a very promising alternative energy in Indonesia,”
says President and CEO of PGN
WMP Simandjuntak.
The mining sector also holds
significant potential given the
country’s substantial mineral
wealth but has suffered through
lack of investment in recent years.
One of the companies turning
this trend around is International Nickel Indonesia (INCO).
CEO Bing R. Tobing says, “INCO’s mission “is to become a
reliable and profitable company.
We have three goals. Goal number one is bout business. Goal
number two is about safety and
health. Goal number three is to
work with the community and the
government.” INCO works hard
to communicate these goals to its
employees. “Clarity is very important I am very proud that we
are working as a team,” says Mr.
Tobing. “We also work with
many expatriates. We don’t see
white, yellow or brown. People
who come to Indonesia need to
understand how people work
here,” he adds.
The Director General for Geology and Mineral Resources
at the Ministry of Energy, Simon
F. Sembiring, says that the industry can be revived through
clear planning and greater transparency and through streamlining procedures and lowering
the cost of doing business.
Mr Sembiring is committed
to the development of a Master
Plan for the development of the
sector. The plan includes a
mechanism for attracting investment, to help reverse the
decline in the industry in the
wake of the economic recession. One of its main points is
the reduction in the royalty tax,
which is expected to deliver an
increase in revenue. It also lays
the basis for more cooperation
between the Ministry of Forestry
and the Ministry of Mining, and
provides a clear and sound legal system for investors.
Attracting investment is one of
the sector’s greatest priorities.
About $30 billion is needed by
2010 to improve the energy sector infrastructure, to increase efficiency and to connect supply
and demand points. Since mining commodities continue to play
a key role in Indonesia’s economy, earning much needed foreign exchange revenues, the
sector has huge potential.
“The role of foreign companies is crucial,” says Mr. Sembiring. “We must find a way to
invite foreign investment to
come into Indonesia.”
Pertmina
ow its full potential
Of the country’s 60 hydrocarbon basis, 15 to 20 are yet to be explored
The Indonesian Mining Association – a key link between the
government and the mining companies themselves – is at the heart
of plans to revitalize the industry.
Its Chairman B. N. Wahju says Indonesia’s major competitive advantages include its mineral
resources and proximity to major
markets.
The challenge ahead, according to Mr. Wahju, is for existing
producers to feel that their in-
vestments are safe. “Mining is a
type of investment that takes a
long period of time to attain profit, commence exploitation,” he
says. “That is why it is important
that the government has said it
will recognize all existing contracts of work and that it will always honor every agreement that
has been signed in the past. This
is one of the significant pluses of
the past as well as the current government,” concludes Mr. Wahju.
and still has proven resources ready for development to meet regional and domestic demand
or strategic
market
ENERGI MP
er this year, Energi MP, discovered oil deposits in the
Makassar Straits block in Riau
and the Brantas block in East Java. The firm said it had "accidentally" discovered the Brantas
block deposit in while testing the
size of a gas deposit in the Tanggulangin-3 well. "While our
drilling targeted the delineation
of gas reserves in the deeper
horizon, the Tanggulangin-3
well struck an oil accumulation
in the shallower region," the
company reported.
Energi MP was founded in
1995 when it acquired its first
working interest and operational
production sharing contract for
the Malacca Strait from Lasmo
Oil. It was formed from the
merger of two separate entities,
Energi Mega Persada and Energi Timur Jauh. The combined
group holds interests in some
of Indonesia’s most prospective hydrocarbons territories.
Three Energi Mega Persada subsidiaries operate the Malacca
Straits block in Sumatra and
the Kangean and Brantas blocks
in East Java. Five Energi Timur
Jauh subsidiaries operate the
Gelam field, the Gebang block,
and the Bentu and Korinci-Br
blocks and the Semberah fields
in Kalimantan.
There is an aggressive development schedule in place
for all of these areas, with substantial new gas production set
to come on stream by next year.
The Kangean field – acquired
from BP recently – has the
largest proven gas reserves in
East Java. It is already supplying gas to the nearby Surabaya
region, one of the core demand
centers. Gas production will either start or be increased in all
of the company’s geographical
areas over the next 12 months.
One of Energi MP’s strategies
is to tap into proven oil and gas
fields discovered by the multinationals but subsequently
deemed uneconomic by them.
While major international corporations might not be able to
make the maths work, given the
scale of their business and the
demands of shareholders,
Energi MPis able to deliver these
Continued on page 8
Enegrgi Mega Persada
s can’t make profitable
Currently 80% of Energi MP’s production output is natural gas
Development of small liquefied
natural gas plants will make
remote gas fields economic
■ENERGI MP has established a large increase in the exports
a leading position in the do- of its Liquefied Natural Gas,
mestic gas business at a time of particularly as more LNG comes
growing demand in the local on stream from Tangguh, Bonmarket. It has built this position tang and Arun in North Sumapartly in a bid to diversify away tra. “They are going to be
from oil, the more expensive classified as large opportunities
fuel alternative and also to take and will require huge transadvantage of a growing export portation for 22 million tons of
market. Currently, 80% of En- LNG per year. I think that this
ergi MP’s total hydrocarbons will open up an opportunity to
production is natural gas, com- sell the LNG to the West Coast
of the USA,” says Mr. Latief.
pared to 20% crude oil.
The are also big plans to step
Although the development of
the gas market is regulated and up gas production from the comrequires substantial investment pany’s portfolio of upstream
in transport infrastructure such blocks in the coming year. The
aim is to access the
as pipelines, the company’s strategic focus The gas market growing domestic
requires
market for gas which
has paid off with desubstantial
is slowly unfolding
mand for its products
strong and rising. It is investment in among industrial
users in the major urthe company’s early
transport
investments in gas pro- infrastructure ban areas. At the
Kangean field, Enerduction that have put
it in such a strong position today gi MP plans to raise gas production next year from 108,000
to supply the local market.
President Director Rennier A. million cubic feet per day (cf/d)
R. Latief says the decision has to 150,000 million cf/d. At Branhelped the country to eliminate tas, gas production will rise from
some of its over dependence on 75,000 million cf/d to 120 miloil. “If we had not developed our lion cf/d in 2005, while output
production back in 1999, we at Gebang will climb from 6,000
would probably not have million cf/d to 50 million cf/d.
Mr. Latief says that if all of
reached our production figures
today – and that means we the country’s smaller gas fields
would have been unable to re- are put together they would ofplace gasoline with gas,” he fer some 75 trillion cf in total,
says. “The government would a substantial but so far untapped
have lost the opportunity to have energy source. In a bid to mon187 million cf/d and then they etize more remote gas fields,
would be paying four times what Energi MP is also helping to pioneer the development of smallthey are paying right now.”
Energi MP is also looking at scale liquefied natural gas
(LNG) schemes. Traditionally,
these have been billion dollar export projects – such as Tangguh
LNG - led by multinational energy companies.
According to Mr. Latief, this
may well be the best option when
building a conventional pipeline
becomes unprofitable. There are
plans to locate mini LNG plants
– to liquefy gas through cooling,
making it easier to transport the
product by ship or even truck –
at some of its fields throughout
the country. Initially, the company is looking to establish three
plants, but there are hopes this
could increase to 18 over the
next five years.
The aim is to supply the local
market rather than export the gas.
Mr. Latief elaborates, “All of the
western part of Indonesia is going to be generating LNG that
can be easily carried via containers at low cost. We can carry it using a carrier with a capacity
of 35,000 tons every day to the
eastern part of Indonesia.”
This transfer will, in time,
stimulate both demand and supply for energy, bringing more resources into play and making
the sector more efficient, explains Mr. Latief. “You will no
longer need the subsidy. The industry in that part of Indonesia
will be able to use the energy at
a low price. Then it will continue
to grow and everyone will start
to carry out exploration activities in the eastern part of Indonesia. So they will trigger
each other.”
PT ENERGI MEGA PERSADA Tbk
is setting an
astonishing pace. Already the
largest oil and
gas enterprise in Indonesia,
it is the fastest growing
company in its sector and
committed to delivering
value. Energi MP’s shareholders
are already realizing
the benefits of the company’s
rapid progress publicly owned shares in the
company are now
worth 300 percent of their initial
price of just a few months ago.
Furthermore, Energi MP’s
success seems destined to
continue, offering investors a
bright future.
With a clear growth strategy,
the enterprise is
set to become a highly
important energy
provider on the global stage.
Wisma Mulia, 33rd Floor
Jl. Jenderal Gatot Subroto Kav 42
Jakarta 12710- Indonesia
Tel: + 62 21 5290 6250, Fax: + 62 21 5290 6254
www.energi-mp.com
29/11/04
21:14
Página 8
Our World
8
PRIVATE SECTOR / Restoring economic momentum is vital
KOBA TIN
Joint
venture
goes from
strength
to strength
The market price of tin is currently twice as high as it was in 2002
MOHAMMED ANUAR SIDEK
President Director
PT Koba Tin
have turned a corner. The current
market for tin, which has recently
lifted prices to double 2002 levels, has naturally helped PT Koba Tin’s financial profile.
Established in 1972, the company’s annual tin production now
stands at around 18,000 tons a
year. Overall, Indonesia’s tin
mining industry is thought to be
the second largest in the world,
with a total capacity of some
90,000 tons a year, slightly be-
hind regional heavyweight China. Unfortunately, since mining
is an extremely capital intensive
business, there is a shortage of
funds to take the industry to the
next stage. Investment from the
private sector is being targeted
by the government to fulfill Indonesia’s obvious promise. Mr.
Sidek believes that American
investors should take a closer
look at what the country has to
offer, especially in the mining
sector. “The negative publicity
in the international media only
clouds the true picture,” he says.
“There are a lot of advantages
here in Indonesia. You just need
to understand that the country is
going through some changes but
that these are doing nothing except making Indonesia better,”
concludes Mr. Sidek. As a major mining company, PT Koba
Tin is also acutely aware of its
social and environmental responsibilities. Community development programs around core
mining areas are an important
part of the firm’s overall growth
strategy.
Opportunity knocks for energy firm
MP are looking to work closely
fields in a smaller and more cost- with local residents on various soeffective way. BP, for example, cio-economic programs in the
is eager to focus on its Tangguh best interests of the country. Mr.
gas export plant. Mr. Latief de- Latief insists on the importance
scribes it as win-win situation for of Energi MPs contribution to
all, including the departing oil the development of surrounding
major. “Rather than making the communities. Representatives
government force them to de- from villages around the Branvelop the field, we just offer to tas and Kangean blocks are
purchase the field. If we optimize pleased to have a responsible
the field it is going to be in their firm like Energi MP as their
interest. They will get the mon- neighbor. The company also proey, the government will be hap- vides assistance to improve
py because the field is going to public facilities for the local community such as the conbe developed, and we
Core
struction of places
are also happy because we will make responsibility of worship, schools,
is to create a health centers, bridges,
money.”
fresh water facilities
As well as being acfavorable
tive in oil production
environment and also provides free
electricity in Kangean.
the company hopes to
for energy
The regulator which
become a significant
investment
oversees Energi MP’s
gas player in the
evolving Indonesian market. Pro- business in Indonesia is BP Miduction levels during 2004 in- gas, which was established a litcreased to 12,000 barrels per day tle over a year ago. Previously
(b/d) of crude oil from 11,000 b/d. regulation had been in the hands
Gas production is expected to in- of state energy firm Pertamina.
crease to 88million cf/d of natur- The new agency is leading the
al gas from 70 million cf/d in way in securing contracts with
2003, considerably more than the foreign and local oil players in
forecast target of 80 million cf/d. the country’s upstream sector. One
During its initial growth spurt, of its core responsibilities is to
Energi MP has been careful to help create a more favorable ennurture relations with the com- vironment to stimulate energy
munities in which it works. Al- sector investment.
Since its formation, the
though most oil companies are
obliged to minimize the envi- agency has signed a raft of new
ronmental impact on host com- exploration and production conmunities, management at Energi tracts with international and doContinued from page 7
mestic oil companies, both large
and small.
Rachmat Sudibjo, Chairman
of BP Migas, says the transitional phase is now at an end.
“We have been very successful,”
he says. “Within a period of one
year – during 2003 – we signed
more than 30 agreements. I think
that this indicates that we work
very hard and that we want to
speed up all of the processes.”
In the past, Indonesia was criticized by oil companies for delays in the permitting process.
Things are very different today,
and Mr. Sudibjo wants to see
more improvements. “One of
the most important things for us
is to accelerate the approvals
process. We deal with hundreds
of production sharing contracts
and we have to approve their
work programs as well as budgets. So I think that timing is essential. We are working to
become more efficient – the ultimate goal is to reduce the cost
in order to increase the revenue.”
The new streamlined agency’s
staff know the business inside
out, around 80% originally working for Pertamina. BPMigas currently oversees more than 140
production sharing contracts
throughout the country. It is also helping to make sure that regional authorities are able to
communicate effectively with
oil companies in line with the decentralization process.
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www.askrindo.co.id
■ THE REVITALIZATION of
industry in the economy and the
attraction of fresh investment from
overseas are high on the agenda
for Indonesia’s top business leaders. The country continues to suffer from an investment slump
following the prolonged recession. The National Investment
Coordinating Board (BKPM) reported a 34% year-on-year drop
in approved foreign direct investment (FDI) during the first
half of 2004. Total FDI inflows
stood at just over $3 billion during the period. Although political
jitters may have been one of the
reasons behind the fall, locals recognize the need to reverse the
trend as early as possible. Investment is crucial for the country to restore growth rates to
former levels. FDI now accounts
for about 10% of Indonesia’s gross
domestic product.
Mohamad S. Hidayat, Chairman of KADIN, the Indonesian
Chamber of Commerce and Industry, has helped to draw up a
road map that will help get the
country back on its feet. Compiled with the help of numerous
other business associations and
stakeholders, the strategic blueprint, entitled Revitalizing Industry and Investment, consists of
a strategy and recommendations
on how to improve the competitiveness of local industries and
boost investment over the coming five years. The document focuses on several core issues – law
enforcement, taxation, labor, infrastructure and regional autonomy. It was presented to the new
President in his second week in
office. Indonesia hopes to see
growth rates of up to 7% during
the period as a result of new economic measures.
Mr. Hidayat says he expects
Pertamina
Koba Tin
■ A KEY ELEMENT of Indonesia’s prosperous mining sector, tin has become a major
national export commodity. The
country is home to the world’s
largest tin producer, PT Timah,
owned by the Indonesian government. It is also home to the second biggest producer in the world,
PT Koba Tin, a joint venture between PT Timah and the
Malaysian Smelting Corporation.
The Malaysian partner, which
owns a majority 75% interest
with the Indonesian company
holding the remaining equity, is
truly committed to its local investment. The company has gone
from strength to strength. Mohammed. Anuar Sidek, PT Koba Tin’s President Director, is an
enthusiastic promoter of the tin
industry and of the commodity’s
huge potential role in the global
economy. He believes that if investments are placed in the local
mining sector and the new government implements a more
proactive and transparent policy, coupled with a clear legal
framework, the potential is almost unlimited. “There are so
many opportunities here,” says
Mr. Sidek. “We believe firmly
in the future of Indonesia.” Indeed, the country is ranked as the
sixth largest nation in the world
in terms of its overall mineral resources. “A lot of people do not
realize that Indonesia has one of
the most established mining infrastructures,” he adds.
After a long and bleak period
marked by historical low prices,
stagnant demand and massive
mine closures worldwide, the
global tin industry appears to
Road map will help
raise Indonesia’s
investment profile
Foreign investment is crucial to
all business sectors to restore
growth rates to former levels
the government to respond positively to the needs of the business
community. He thinks the country needs a trade and industry
minister who can sell Indonesia
effectively to the outside world.
“We don’t want economic ministers who are only good at economic theory – we want
experienced people.” says Mr.
Hidayat. KADIN, regarded as
one of the country’s most influ-
ential business voices, has close
links to the American Chambers
of Commerce. The two organizations have developed various
awareness programs over the
years, including Opportunity Indonesia and the Scholastic Ambassador Program for the
promotion of Indonesia’s bilateral
trade relations. In 1977, a joint
committee was also set up between the two sides, known as
KADIN Indonesia Komite
Amerika Serikat (KIKAS). Mr.
Hidayat believes that one of the
major obstacles faced by people
interested in investing in Indonesia
is the laborforce. He plans to coordinate a regular forum with labor unions to maintain the
employment rates, inform people regarding minimum wages
and create a formula to overcome
other labor-related problems.
As well as labor reform, there
is massive scope for investment
in the country’s infrastructure,
from transport to energy. Demand
for electricity is expected to grow
at around 10% yearly over the
next decade, which means additional capacity must be brought
online in advance.
Investment in the natural gas
sector – to fuel the demand for
power – is another major opportunity area. The lead player in this
area is PTPerusahaan Gas Negara,
the state company responsible for
gas transmission and distribution
activities. It is working on several major initiatives to increase the
use of gas in the economy, including the construction of major new pipelines traversing the
country. Although the reforms are
still underway, sentiment is positive following the peaceful election process. The task ahead is to
build on the gains and restore
momentum to the economy.
KALBE FARMA
Pharmaceutical company seeks
partner to co-develop products
■ A GRADUATE of San Francisco University, Boenjamin Setiawan started his own business
in a small garage with his brother in 1966. “I never thought
about becoming the leading
pharmaceutical company in Indonesia. I had no mission at the
time,” he says.
That business, Kalbe Farma,
now achieves annual sales of
more than $300 million and Dr.
Setiawan, Chairman of the company, has certainly set himself
a mission. He aims to make his
business a world-class pharmaceutical company.
It is an ambition that is shared
by Johannes Setijono, President
Director of the company, who
says the company wants to get
products into international markets by establishing partnerships with laboratories
worldwide.
“Investments in research and
development are crucial because
we want to transform the company internationally,” says Mr.
Setijono. “We are investing a
lot to expand our market and
cooperating with foreign institutes to generate new products.
We are also conducting international trials for the products.”
He hopes to strengthen the company’s presence in southeast Asia
and enter the European and
African markets. “If we can produce original products we can access more opportunities to go
beyond the ASEAN and African
countries to penetrate developed
countries,” he says.
Kalbe Farma currently exports
approximately 10% of its sales
to ten countries. “It is still a small
figure. But we are trying hard to
become more available to every
company,” says Dr. Setiawan.
The company spends just under
2% of its sales revenue, or $4.5
million, on research. This is more
than any other Indonesian company. However, says Dr. Setiawan, it is still far too little.
“Our total sales revenue is too
small, so we cannot afford research, but we are trying to refocus and achieve more
innovations. We are trying to establish cooperation with a German company and we already
work closely with the Pharmacology Department at the University of Indonesia, since I used
BOENJAMIN SETIAWAN
Chairman of Kalbe Farma
to work there and so have a close
relationship with them. Right
now our research mainly revolves around transdermal and
transfusal delivery. We are experimenting with stem cells,” he
explains.
The vast American pharmaceutical sector is Kalbe Farma’s
biggest challenge, and one that
the management is determined
to meet.
“We are cooperating with
many U.S. companies but just
as a marketing partner or a licensee. We have relationships
with Pfizer, Bristol Myer
Squibb, Schering-Plough, and
Baxter,” says Mr. Setijono.
“We would like to establish a
relationship where we become
a co-developer of new products.
We wish to develop new products with another institute and
obtain the rights to market the
product all over Asia.” He continues, “It is a challenging market, because it is a new for us.
The company is used to working
only with generic, over-thecounter drugs and health food
products, but now the aim is to
manufacture its own original
products in order to become a
global company.”
The economic crisis six years
ago was a difficult time for the firm
as all its loan financing for the
construction of new factories was
denominated in dollars. “You can
imagine the difficulty we faced
when our revenues were in rupiah and all our loans were in U.S.
dollars, which had increased in
value by five or six times,” says
Mr. Setijono.
Many companies might not
have survived this shock. However, Kalbe Farma weathered
the storm by focusing on its core
business of over-the-counter and
ethical drugs. It has succeeded
in repaying two-thirds of the loan
plus interest, making it one of only two companies in the country
classified with an excellent performance in debt repayment.
Thanks to this performance the
company is now in a position to
start investing again.
Kalbe Farma was named by
Forbes as one of the world’s
200 best companies outside
the U.S. with a revenue below
$1 billion. It was also awarded
for being one of the most transparent companies on the Jakarta Stock Exchange.
9
29/11/04
21:15
Página 9
Our World
Ramayana
PRIVATE SECTOR / Commitment to small communities brings financial rewards
Pioneering spirit keeps retailer
one step ahead of its competitors
By targeting low and middle income earners in rural areas, one retailer is grasping the
business opportunities outside the most exploited markets and reaping the benefits
■ RAMAYANALestari Sentosa
is extending its reach as one of
Indonesia’s most profitable retail companies with an expansion plan that has put it beyond
the reach of competitive rivals.
The company’s strategy, devised by Founder and President Commissioner Paulus
Tumewu, has been to open up
virgin markets in rural areas
outside Java, which is the most
exploited market.
In the past few years it has
led the way into Kalimantan,
Sumatra, and Sulawesi. This
pioneering spirit has led it to
open a shop in Banda Aceh, the
separatist province in the west
of the country.
“We plan to open more stores
in Jambi, Aceh, and Padang next
year,” says Mr. Tumewu. “We
are considering Bengkulu too.
Aceh is a good market. It is not
very safe but we tend to perform
better in areas that are deemed
to pose security risks because
there is no competition.
“Next year we plan to open
ten new stores, mostly outside hold items, stationery, and food.
“After we determined that
the island of Java,” he adds.
“The good markets are usually Ramayana would be targeting
located in areas that possess nat- the lower segment, we decided
ural resources. The more natural that we would not sell our goods
resources, the better it is for us, at the lowest price because that
as they will be able to spend is an action that is difficult to
follow through.”
more. We tend to foMr. Tumewu elabocus on those areas The key to the
company’s
rates, “We opted for
because we are
success has clothes that are good
businessmen and
we never pass up been to offer value for people in the
any opportunity that quality at very lower segment in
is given to us. More- low prices on a terms of their design,
quality, and pricing,
over, Indonesia is
full of them, as it is massive scale but which cannot easa country with a population of ily be imitated by our competitors. We are doing it on a
nearly 240 million people.”
Ramayana’s other defining large scale so it is difficult to
strategy has been to make low- compete with us.”
The policy is paying off. First
er and middle income earners
its commercial target. This is a quarter net profits for this year
complex market, but because of were up by 26% to $4.6 milthis competition is low. The key lion. The company currently
to success has been to offer has 82 stores in 37 cities and
quality for money, but at very employs 19,000 people. Steady
low prices and on a massive growth with continuous develscale. The business sells t-shirts, opment has positioned it far
jeans, and shoes to ordinary better than competitors and it
workers alongside toys, house- was able to recover much more
quickly after the crisis, which
hit the country in 1997.
This approach has won the
company many awards. Asia
Money Magazine voted it Best
Managed Company for three
years running. Forbes twice
nominated it as the best small
company in the world.
In 1996, 30.8% of its shares
were floated on the Jakarta Stock
Exchange and since that time it
has been one of the best performing stocks. The company’s
market capitalization is now approximately $692 million.
“Becoming a public company
was a way for us to expand the
business,” says Mr. Tumewu. “If
we wanted to become a big company, we had to go public.” Ramayana’s continuous growth
makes it appealing to foreign
overseas investors.
Mr. Tumewu concludes, “We
need to operate as a public company to obtain additional funds
and grow. It also provides us
with the opportunity to cooperate with foreign companies.”
NESTLÉ
Nestlé mixes global thinking with local action
Mr. Nandkishore enjoys a
significant indirect benefits, both
in the transfer of technology and high degree of independence
in the creation of jobs in the fac- thanks to Nestlé’s policy of decentralizing management and
tories concerned.
Nestlé helps the farmers encouraging global thinking and
through an agricultural techni- strategy with local action and
cal assistance program that commitment. He has been able
to devise his own cormanages an annual
fund of $250,000. Nestlé has an porate strategy for Inimportant
donesia and says that
The program finances
so far, the company
the cooperatives in
role in the
the form of loans redevelopment has only tapped the
payable over a one to of rural areas top 15% of the consumer market.
two year period, by
and the
He stresses the inwithholding part of
the company’s pay- creation of jobs credible potential of
ment for milk. Loans cover the the country as its GDPgrows and
buying or repairing of cooling the population’s purchasing powinstallations, tankers for trans- er increases. According to one
porting the fresh milk, and loans study, volume sales of dairy prodto individual farmers to build or ucts will more than double their
1998 levels by 2007. Increased
improve their cowsheds.
consumption of milk will drive
most of this growth in demand.
This will soon open a new segment of the market for the company’s contemporary products.
Mr. Nandkishore says that the
potential of Indonesia is underestimated in America, but Nestlé
continues to invest. During 2003
the company expanded the capacity of its milk production unit
by 88.9% to 255,000 tons and it
is interested in increasing its investment further.
This year, Nestlé created
a 50/50 joint venture with
Coca-Cola called Waters Partners Bottling. They jointly acquired a 60% share of the
second-largest bottled water
company, which owns seven
plants in Indonesia.
Nestlé
■ NEXT YEAR one of the
world’s biggest multinational companies and a group of
local farm cooperatives on
the island of Java will celebrate the 30th anniversary of
their unique partnership.
In 1975, Nestlé Indonesia
made a deal with the 400 families in the Pujon dairy cooperative in East Java Province
to supply it with milk. It was
the beginning of a partnership that has expanded steadily ever since.
Today, Nestlé purchases
50% of total milk production
on Java from approximately
24,000 farmers who belong to
45 cooperatives. Of these
19,000 are farmers working
on a small scale.
One of Nestlé’s two factories in the country now works
exclusively on the basis of locally produced fresh milk.
Four-fifths of the 150,000 tons
of milk supplied by local farmers is sent to this factory at Kejayan. The remainder is
processed into sterilized condensed milk.
The company plays an important role in supporting the
development of rural areas
and in creating employment,
says Nestlé Indonesia’s President Director Nandu Nandkishore. Afarmer with 32,000
square feet to 54,000 square
feet and a herd of six to 12
cattle is considered a big
landowner.
The substitution of local
fresh milk for imported milk
products as raw material for
the factories has also brought
Nestlé expanded the capacity of its milk production unit by 88.9% to 255,000 tons last year
29/11/04
21:16
Página 10
Our World
10
STATE ENTERPRISE / A government strategy of expansion and diversification will inject fresh life into established companies
Natural gas has
huge potential
able to the local market.
PGN is currently engaged in a
number of high-profile projects
to tap into major gas reservoirs and
supply energy to major demand
centers throughout the country.
One flagship project, costing an
■ THE PROMOTION of In- estimated $1.7 billion, seeks to
donesia’s natural gas market is take gas from remote East Kalia crucial step in the country’s en- mantan to the island of Java, one
ergy sector development. A of the major areas of consumpknown oil producer and gas ex- tion. It comprises approximately
porter, Indonesia is seeking to 620 miles of onshore pipeline and
expand gas use throughout the a 186-mile pipeline offshore link
country through a series of ma- to Java. A separate $550 million
jor pipeline projects.
initiative will carry gas from South
The government is eager to re- Sumatra to North Sumatra and
duce the country’s traditional re- East Java. This is scheduled for
liance on expensive fuel oil which completion in 2006.
still dominates energy conWhen these projects are up and
sumption. Natural gas, a cleaner running gas will play a signifiand more environmentally- cant role in the economy. At the
friendly alternative, is the obvi- moment, oil accounts for over
ous solution to shift the balance. 50% of energy consumption,
Traditionally, Indonesia has with gas taking 25% at the most.
Indonesia is following a globbeen known as a gas exporter
through its liquefied natural gas al trend which has seen natural gas
emerge as the fastest
(LNG) facilities. It has
PGN has a
growing primary enlong supplied Japan
monopoly on ergy in the last decade.
and South Korea with
the gas
The problem, as alLNG to fuel power
generation and industransmission ways, is financing
trial manufacturing. and distribution these major projects.
President and CEO
The development of
business in
WMP Simandjuntak
the BP-led Tangguh
Indonesia
says American and
LNG initiative will further reinforce the country’s po- other international oil companies
sition as a major gas supplier to are slowly turning their attention
the Asian market, and possibly in to gas as the new energy of
the long-term to the U.S. market. choice. The Tangguh LNG proOn the home front, PT ject underlines the desire of maPerusahaan Gas Negara (PGN) jor firms to back gas projects.
is the organization that holds a In the past, U.S. energy investors
monopoly on the gas transmis- only targeted Indonesian oil.
sion and distribution business in
“The paradigm is totally difIndonesia. It is playing a key ferent,” says Dr. Simandjuntak.
role in making more gas avail- “They are not only supporting
oil projects but they are also financing gas projects, because
gas has become the new global energy commodity as it can
be transported by other means
and not only via pipeline.”
PGN’s recent stock market
listing has helped to change attitudes within the organization.
“The process of going public
has had an impact on our internal corporate culture,” says Dr.
Simandjuntak.
He sees it as a step forward in
the opening of the Indonesian
economy to the world. “Whether
WMP SIMANDJUNTAK
we like it or not, we have to acPresident and CEO
cept globalization, and be ready
of PGN
to seize the opportunity,” he says.
Askrindo
The U.S. and other
global investors are
turning their attention
to the gas market
Help for small firms
■ ASKRINDO is one of the
most important organizations
helping the growing small- and
medium-sized enterprise (SME)
sector.“We are different from insurance companies,” says Jati L.
Mangunsong, the company’s
President.
Askrindo is a reliable and stable financial insurance and risk
guarantee institution that cares
for assists and helps small- and
medium-sized enterprises
throughout Indonesia. It provides services and products such
as banking and trade credit insurance, surety and custom
bonds, letters of credit, and reinsurance. It also provides capital credits for export purposes.
Specially incorporated by the
Ministry of Finance and Bank of
Indonesia in 1971, for over 30
years it has supported government polices and programs for
national economic development.
Although Askrindo comprises a
group of insurance companies,
it is not a life or non-life insurance company. Instead it focuses solely on financial risk.
The company says that its mission is “To assist the government
with their program in the economic field in creating small- and
medium-scale enterprises through
the insurance of their shares.”
“We do not need to make great
profits but we have to be selfsufficient as the government will
no longer subsidize Askrindo,”
says Mr. Mangunsong.
JATI L. MANGUNSONG
President of Askrindo
“We need additional capital to
increase our capacity. And we
also need information technology (IT) because this is one of the
most important variables which
will allow this company to increase its profits and become
more successful in the future. If
we don’t adopt IT then Askrindo
will not progress. We need to enter the market with new products,
new services and new people.”
These pressures have caused
the company to broaden its business. “The question is how we can
diversify our products to increase
demand,” says its President.
In recent years, it has expanded
along with the market trend into the retail sector, which has
seen massive growth in Indonesia in recent years. At the
same time, the company has
maintained its position in the
corporate market. It has started providing guarantees for the
construction industry, for example to contractors with respect to the performance of a
certain job. “The construction
industry is still market driven,
especially in the regional area
outside Java where we need to
build roads, bridges and harbors. Therefore the construction
industry still has first priority
and we are happy to support it
by providing guarantees,” says
Mr. Mangunsong.
He says that because Indonesia is a big country and thus a
big market, the potential to do
business is enormous. “ We need
to expand our network. Next
year we expect to open new
branches in Kalimantan because
it is a huge island with vast resources, for example, forestry,
coal mining, oil and gold. We
need to be there,” he says.
Askrindo has also become a
member of the Asian Credit
Supplementary Institution Confederation and entered the overseas market by establishing
cooperation in reinsurance business with Swiss Re, and others.
The company also has Chinese,
Korean and European partners.
These links mean that it can help
its clients develop their businesses to export to these markets. “We can achieve a win-win
solution with this development,”
says Mr. Mangunsong.
STEEL INDUSTRY
Steel producer shows its mettle
■PT KRAKATAU Steel, one of
Indonesia’s most respected public companies because of its extensive community programs, is
aiming big. Based on the strong
demand for steel in the domestic market, the company aims to
increase production significantly in the coming years from the
current 2.5 million tons. Internal
efficiencies and productivity
gains will make this possible.
Established over 30 years ago,
the company’s output has remained fairly static while other regional steel producers have
seen production figures soar.
But according to Daenul Hay,
Krakatau Steel’s President
Director, this is about to change
thanks to the implementation of
a long-term turnaround strategy designed to overhaul obsolete facilities and inject funds
into additional capacity.
After 2006, the company
hopes to step up annual pro-
duction of steel products to approximately 3.5 million tons as
a result of new investments at
existing facilities. A local bond
issue is set to raise the funds for
the developments. “I think that
everybody will welcome
Krakatau Steel due to our good
image,” he says.
In the longer term, there are
more ambitious plans. By 2013,
the company hopes to build a
new state-of-the-art steel mill
with a capacity of 5 million tons
a year. Mr. Hay says there is
plenty of potential given the
growth of the local market.
Despite strong global prices
Krakatau Steel remains focused on
the domestic market simply because of the strength of demand.
Recently, a memorandum of understanding was agreed to supply
the Indonesian Navy with steel to
build ships and tanks. Exports account for only 2% of output.
“Customers recognize the qual-
ity of our products,” says Mr.
Hay. “We use iron ore and scrap.
Steel industries in Indonesia, except for Krakatau Steel, only use
scrap. The content of scrap varies
from time to time, unlike iron
ore, which results in our products
having a longer life compared
with those of our competitors. In
terms of quality, for example, if
we say that our product is 12 feet
long it means exactly 12 feet
long. However, other steel makers may not match our high standards. Our customers know that
Krakatau Steel means quality.
Everyone in Indonesia is very
proud of our company.”
The company hopes that privatization will unlock the door
to fresh investment and the establishment of the new steel
mill. It is certainly open to dialogue with foreign partners.
“We have a plan to privatize
Krakatau Steel because we need
money to expand the compa-
DAENUL HAY
PT Krakatau Steel
ny’s business,” says Mr. Hay.
The President Director is proud
of the firm’s policy on employee
relations. Every three months, a
briefing is conducted between the
management and employees on
the sports field. “We want the employees to know that we depend
upon them to do their jobs properly. Every chance I get to meet
our people I remind them that the
steel industry is the backbone of
industrialization of our country.”
JAKARTA MONORAIL / Projects will reduce traffic in Jakarta’s congested streets and create employment
Public transport is key
to city’s renaissance
Residents of the Indonesian capital are being urged to leave their
cars at home and use public transport
■ JAKARTA, Indonesia’s
bustling capital city and home
to nearly 10 million people, is
undergoing a transformation.
The municipal authorities are
taking action to restore glory to
the urban sprawl, cleaning up
buildings and investing in new
transport infrastructure to unblock the congested streets. The
plan is to put Jakarta back on
the map as one of Southeast
Asia’s leading capitals.
Already home to numerous
dazzling glass skyscrapers and
five-star hotels, the city will
soon be home to the world’s
tallest building as work on the
Jakarta Tower accelerates. It
will identify Jakarta in the eyes
of people around the world
when it is completed in 2010.
In the headlines for all the
wrong reasons in recent years,
officials are determined to turn
things around to reflect an improved political and economic
outlook in the country. As the
national capital, Jakarta is looking to play a leading role in
putting Indonesia back on its
own two feet.
Mr. Sutiyoso, Jakarta’s Gov-
ernor, is the man behind many of and investors to encourage them
the latest initiatives to improve to start putting money into new
the city’s congestion. It has not projects and taking risks.
Infrastructure is a major pribeen easy. After taking office in
1997, just as the economy be- ority. Among Mr. Sutiyoso’s
gan to nose-dive, many plans achievements is the promotion
were put on hold as investors left of various metro transit projects
and money dried up. Now, the designed to ease congestion and
reduce pollution. He has been
picture is very different.
A key task in those early days influential in driving forward
public transport ideas
was simply to restore
Ambitious
such as the subway and
order to the streets
projects are monorail. One of the
and put an end to lootunder way
first initiatives was the
ing and rioting. This
in
the capital creation of the city’s
meant visiting slum
busway, to encourage
areas to appease the
to reduce
city’s poorest people. congestion and people to leave their
cars at home and use
“I visited those areas
pollution
public transport inintensively. I provided food for them in the form of stead. “If a person wishes to conrice but I also communicated to tinue to be faced with traffic
them in words they could easi- jams, then by all means they can
ly understand – do not loot again. use their personal vehicle, howBoth the law and religion do not ever, don’t blame us,” he says.
The development of the Jakarcondone such behavior.”
The Governor describes the ta monorail project is another
results as nothing short of mirac- visible indicator of how the city
ulous, after people starting re- is changing. The $630 million
turning looted goods. With the project involves the creation of
restoration of law and order, two lines – green and blue – to
came the next big step in putting ease traffic flow across the city.
the city back together again. It is expected to carry up to
This meant talking to businesses 30,000 passengers per hour
SUTIYOSO
Governor of
Jakarta
SAIFUL IMAN
Chairman of the Jakarta
Monorail Project
RUSLAN DIWIRYO
President Director of the
Jakarta Monorail Project
across the city.
The first line will surround the
golden triangle of inner central
Jakarta, while the second will
stretch from east to west, passing through the center. The project, which will incorporate 30
stations, is expected to be completed in 2006.
The development company is
Indonesia Transit Central (ITC)
- Jakarta Monorail Project, headed by Chairman Saiful Iman.
Working closely with the local
administration, his vision is to
see the two lines integrate with
other modes of transport in the
city, such as buses and commuter services, and ultimately
a subway system.
The initiative groups are Indonesian companies PT Adhi
Karya, Global Profex Synergy,
and Radiant Utama with Omnico Singapore. The Omnico
group includes Japanese giant
Hitachi, Singapore MRT Engineering, Singapore Technolo-
gies Electronics, and Temasek
Holdings. Ruslan Diwiryo, President Director of the consortium,
says the monorail, which will
complement the busway system, was selected ahead of the
other transport options because
of its cost and the limited amount
of land needed to build it.
“It serves a means to solve
Jakarta’s traffic problem. Traffic continues to increase so
building a toll road was not a
solution. The subway system is
more expensive, so this is the
suitable solution for a city like
Jakarta,” says Mr. Diwiryo. At
various locations, there are plans
to build park and ride facilities,
enabling residents to drive to
the station, park their car, and
then ride the monorail.
In addition to unblocking the
streets, the project is good for
the local economy, creating at
least 10,000 new jobs. When
the system is up and running,
the service will require 2,000
workers to operate it. There are
plans to roll out the service later after the initial two lines have
been constructed.
The Project Director of the
Jakarta Monorail, Dr. Gordon S.
Crighton, has had previous experience on large infrastructure
projects like the Channel Tunnel rail link, between Britain and
France, and the Taiwan High
Speed Rail. “It’s the first public
rail transport system for Jakarta, a major city, and it’s probably the last major city, certainly
in the Far East, that doesn’t have
a railway public transport system, so it’s that important for
Jakarta,” Dr. Crighton says.
“The investment people are
enthusiastically talking about this
monorail system. Their enthusiasm is huge and the momentum
is there. The government wants
it and the people want it,” he
adds. Visit Jakarta in a couple of
years’ time and things will look
very different.
11
29/11/04
21:17
Página 11
Our World
InterContinental Resort Bali
TOURISM / Great value vacations in terms of accommodation, dining and shopping
■Tourist numbers are climbing
again as foreigners seek out Indonesia for its unique cultural
heritage, natural beauty, and
amazing value. While security
ranks high on the minds of travelers, locals in the tourism trade
are eager to stress that the country is no more risky than anywhere else in the world.
The message is filtering
through as the tourist figures
go up and businessmen return.
The number of tourists visiting
the country increased by 28%
up to September 2004, showing
that visitors had been reassured
by the country’s firm response
to the bombing in Bali.
Indonesia’s traditional tourism
market is the Asian-Pacific, especially Japanese, Taiwanese,
and Australian visitors, although
Europeans are also important.
Amadeo Zarzosa, General Manager of the five-star InterContinental Resort Bali, says he
would like to welcome many
more guests from America. The
perfect time for visitors will be
in February and March 2005,
when winter is just coming to
an end in the U.S., while in Bali
it is beautifully warm, he says.
“For New Yorkers and other
East Coast Americans, the climate is another obvious draw,”
adds Mr. Zarzosa. “The imagery
of Bali is sipping cocktails on a
white sand beach, while the folks
back home are gathered around
the fire.”
Mr. Zarzosa believes that people will come back based on
what they hear first-hand from
friends and fellow travelers, not
what they read in the press. “I
think it will happen, it’s just a
matter of time,” he says.
Certainly Bali itself – like the
rest of the country – offers visitors from abroad superb value
in terms of accommodation, dining, and shopping. The main attraction of Indonesia, however,
is the Indonesian people themselves. Mr. Zarzosa says that the
Balinese people simply love to
The Jakarta Tower
will be a positive
emblem of what the
Indonesian people
are capable of
■ AT OVER 1,800 feet Indonesia’s tower of unity will
change the face of the country in
many different ways, not just
through its dramatic influence
on the sky-line. “You can imagine the numerous businesses that
can be generated from this tower,” says Roesdiman Soegiarso,
Project Director of PT Prasada
Japa Pamudja, the development
consortium. “So if American investors want to get in, this is the
place to be. We would welcome
anyone from the U.S. who
wished to join us. We are offering leases from 25 to 45 years and
are open for any cooperation,”
he adds.
Dr. Roesdiman says another objective is to use the tower’s network and multimedia capacity to
reach out to ordinary people
through learning and skills programs, another element of the social agenda. “That’s our dream.
Instead of only providing people
with jobs through the construction
of this project, we will also provide them with the tools to find
work through education,” says Dr.
Roesdiman. The tower hosts TV,
radio, IT, multimedia and entertainment complexes and has re-
Island resort offers
the ultimate in comfort
and hospitality
Tourist figures are increasing again as security issues are addressed
and travelers discover the beauty of Bali’s sun-kissed white beaches
AMADEO ZARZOSA
General Manager of the
InterContinental Resort Bali
serve, to make sure that their
guests feel welcomed, and enjoy
the island. “They do it from their
hearts,” he says, “it’s not put on.”
This is certainly true on the
small, sun-kissed paradise island
of Bali. The InterContinental Resort Bali is one of the island’s
premier destinations and a prominent landmark. The five-star diamond resort is located on the
gorgeous Jimabaran Bay and
covers 35 acres of land. Although
there are other deluxe hotels on
the island, it is the waterfront
setting in the bay that makes it a
cut above the rest. Mr. Zarzosa
says it is like having a Fifth Avenue address. “You have arrived
when you come to Jimbaran Bay.
You are not going to get waterfront like this anywhere else in
Bali. You are going to have a
stunning white sandy stretch that
is accessed only from the hotel processes. “By helping you, I
grounds. This automatically mean that you sit down in a luxurious lounge, the only one on
gives us semi-private status.”
The beach at the resort has the air-side of the customs. We
massage tents at the Uluwatu give you a massage and reprivate retreat spa. You can al- freshments while we pick up
so ride horses along the beach your luggage for you and finalfrom the InterContinental’s pri- ize your passport,” he says.
Guests at Club InterContinenvate stable.
The other unique aspect of the tal stay at a private wing of the
hotel is its position in and rela- hotel containing all its own amenities. “We want to make
tionship with the vilIndonesia’s
sure that your room
lage at Jimbaran,
which visitors must main attraction makes you feel like
is its people: you are in heaven. So
drive through to reach
the hotel. “This
the Balinese it is very white, very
makes us special belove to serve light. But it has a lot
cause we are not in an and make you of warm touches of
Bali that people can
artificial environfeel welcome really enjoy. We have
ment. All the time we
hear from people who come here just put the finishing touches to
how great it is to go through the it,” says the General Manager.
The hotel resort offers busiindigenous style village, to see
everything that is going on and ness travelers and tourists alike
all of a sudden the car stops and a combination of pure luxury
they are at the InterContinental. and Balinese splendor, with its
It is like having a mansion in 500 guestrooms, apartments,
the middle of a village commu- and suites of all shapes and sizes.
The complex is part of the Six
nity,” says Mr. Zarzosa.
The managing director is ea- Continents Hotel Group, which
ger to lure American visitors currently owns six properties
through a mix of traditional hos- across Indonesia. In 2002, it
pitality and ultimate comfort added the InterContinental in
and the promise of a unique ex- Jakarta to the portfolio, a flagship
perience. Security is taken very venue in the bustling capital city.
So far, the luxury hotel – loseriously. Visitors to Club InterContinental – a new concept cated in Jakarta’s central business
devised by Mr. Zarzosa – are district – is the first and only homet as close to their plane as pos- tel in Jakarta to provide Wi-Fi fasible by a butler and hostess cilities for guests, a measure of
who help them to get through the investment pouring into the
the immigration and customs group’s facilities.
The tower of unity
volving restaurants, an observation deck, tourist attractions, a
concert dome, universities, cyber
universities, distance learning education and religious education
universities. In addition, there are
spaces that are donated to the regional chambers of commerce
where each of the provinces of
Indonesia can promote and trade
their local products.
The tower can house exhibitions, a museum and art galleries
that will display artworks from
places such as Bali, Lombok,
and other artistic centers in Indonesia. “These elements will
educate and promote our culture to local and foreign visitors,” says Dr. Roesdiman.
The main idea behind the tower project is to give something
back to Indonesia, both to the
media-entertainment businesses and the general public. “Digital broadcasting will give more
chances for TV stations and advertising companies in terms of
business competition since the
digital system will provide more
frequencies, and stations will
have more channels to carry advertisements. On the other hand,
viewers will see higher quality
pictures and have more channel
options,” says Dr. Roesdiman.
On the construction side there
are at least 20,000-30,000 peo-
ple working on the project. Once
finished, it will provide more than
20,000 employment opportunities. In the tower itself, employees will be needed to operate the
antennas and carry out the maintenance work for the building.
Dr. Roesdiman is optimistic
about the level of technical expertise needed for the project.
“We have received many expression of interest from state
contractors. Our knowledge and
the knowledge of people who
have constructed other towers
will blend,” he says.
The project can be divided into two phases: the podium and
the tower, which comprises the
three legs and the antennas. “We
have two large contractors who
promise to start construction 34 months from now and the
structure of the main tower
should be completed within a period of 40 months. However,
they will be able to complete
the podium within a period of
20 months. Alongside the local
state contractors, we are in partnership with a high tower specialist from abroad.”
Of course, the time taken to
construct the tower depends on
the system that is adopted to
build the three legs and the antennas. “We have explored several possibilities with many
parties who carried out projects
such as the KL tower and the
Shanghai tower to determine the
fastest system,” says Dr. Roesdiman. “The people who worked
on the Shanghai Tower, one of
the most profitable towers ever
built, designed this one and they
are looking for the opportunity
to work and invest here.”
Dr. Roesdiman has also had
contract discussions with companies from Europe, Canada and
from other countries. “Many
technicians from Europe have
built all of our TV Radio Station
antennas. They have contacted
us because they like the idea of
building the highest antenna ever
erected in Indonesia. They want
to build analog and digital antennas; after all this is a huge
market with 220 million people
and there is a growing number
of television stations in Indonesia.”
Dr. Roesdiman says that the
TV Stations in Indonesia need
to improve their programming
content and include more educational and religious programs,
rather than focusing on commercial programs. He admits
that one reason for this is that the
stations operate under very high
operational costs. “In the tower
all of the operational costs will
be shared and reduced,” he says.
29/11/04
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Página 12
Our World
12
TOURISM / Indonesia is gradually getting back into the global media spotlight for the right reasons: its beauty, diversity, and heritage
EMERALDA GOLF COURSE
Golf club designed by
pros wins over visitors
UTOMO SANTOSO
Emeralda Golf Club
it is more to do with the quality
of the experience. “People play
golf because they want to enjoy
themselves,” he says.
Although the more competitive might disagree, the Emeralda is certainly easy on the eye,
a place where it is effortless to
while away a few hours. “Our
landscape is something that
cannot be found in America.”
The Club has become a key outlet for visiting businessmen. “I
Emeralda Golf Club
■ DESIGNED BY legendary
golfers Arnold Palmer and Jack
Nicklaus, the Emeralda Golf
Club is one of Indonesia’s bestkept secrets. Located next to
rice paddies and surrounded by
coconut trees, it is an immaculately-kept, lush, and green tropical paradise. The championship
complex – which comprises an
18-hole course and one ninehole course – has hosted international tournaments such as
the Alfred Dunhill Masters, the
Volvo Asian Matchplay, and the
Johnnie Walker Super Tour.
With the facilities to match, including a restaurant, ballroom,
and driving range, it sits comfortably among the elite golfing
destinations in the country, a magnet for visiting pros and amateurs
alike. With the country’s varied
natural landscape, a round on the
Emeralda is a stunning experience. Utomo Santoso, the club’s
President Director, believes that
golf can become a major tourist
attraction given Indonesia’s inherent beauty. After all, it is not
just about what your handicap is,
The Emeralda Golf Club has hosted big-name international
tournaments such as the Alfred Dunhill Masters
think the social activity among
the business players is very important,” says Mr. Utomo.
The Emeralda project was initiated in 1992 as a part of a larger real estate development,
something that took place across
much of the country at that time.
“The reason we built the golf
course first was to attract people
to the real estate here,” he says.
“Once you have built the golf
course the value of the real estate will automatically go up.”
The golf club was completed
in 1997, a year before the economic downturn, which stalled
further development on the
housing front. During this period the Emeralda concentrated on
making sure it was one of Indonesia’s top golfing venues.
Now, with improvements in the
economy, things are starting to
roll again. “I believe that due to
the success of the election, the
situation looks very promising.
I will not be surprised if investment in Indonesia, especially foreign investment, will
increase within the next five
years,” says Mr. Utomo.
“There is a big opportunity
for Indonesian golf courses to
become one of the international players. Indonesia will definitely capitalize on that. We offer
opportunities for the international associations to play here
and we will provide them with
the best that we can give, namely the service, hospitality, because such a big event will not
only help the Emeralda Golf
Course but also Indonesia in
general.” Mr. Utomo thinks investors – like golfers – will be
won over by what they see.
New symbol
for the nation
Continued from page 4
Pastor Alex says: “I started
serving the Lord in 1995 in a
small city and then I moved
here. My congregation has
grown ever since. I did it step
by step and not all at once and
now I am contributing through
the Bethany Church to a project that will give Indonesia
unity; the Menara (tower) Jakarta project.”
He adds that PT Prasada Japa
Pamudja is building the Jakarta Tower to provide a clear example of how a religious
organization can work together with the government and with
private organizations to help
contribute to the welfare of Indonesia. “The project has won
government support and we
welcome interest from media
broadcasting groups and retailers to join us,” he says.
The government gave PT
Prasada Japa Pamudja the task
of putting all the TV and radio
stations in one place. At the
moment the broadcast stations
are spread around Jakarta; the
analog bandwidth availability
is limited and reception is poor.
On completion of the project the
TV and radio stations will move
to the tower, housing all of
Jakarta’s multimedia companies in a state-of-the-art building. Over the next 10 years there
will be further TV stations, and
PT Prasada Japa Pamudja hopes
to develop partnerships with
them through the provision of
digital solutions.
The tower will serve several
purposes. “It will act as national symbol for Indonesia and contribute to the transition to the new
era of digital broadcasting,” says
Pastor Alex. “Most importantly,
the tower project will create jobs
for the local community and
Finished in 2000, the Gereja Bethany’s building at Nginden Intan
Timur can accommodate more than 20,000 people
broadcast quality educational and
religious programs for around
200 million people. We are building the tower for all Indonesians
of all religious backgrounds and
it will be a symbol for the nation:
the tower of unity,” he says.
To make a donation
please contact:
www.bethanygraha.org
TEAM IN INDONESIA
Project Management:
Sara Perrella and Manuel Bellocq
Club InterContinental
an experience like no other
A heavenly holiday wouldn’t be the same without luxurious
accommodation or unprecedented levels of service. Offering
complete privacy and true comfort, Club InterContinental at
InterContinental Resort Bali promises to be an experience
suspended between heaven and earth. We know what it takes.
On track,
one track to the future
Indonesian firms and international companies are working hand in
hand in the building one of the landmarks of Jakarta’s new urban
image: the monorail. PT Jakarta Monorail is the consortium in
charge of carrying out the project, which will achieve a cleaner
and more efficient urban transportation by the year 2007 as a part
of an integrated transport strategy.
Two lines will join up Jakarta: the green line, surrounding the
central Jakarta’s golden triangle, and the blue line, stretching
from east to west. The project will improve the lives of millions of
people in Indonesia’s buzzing capital.
PT Jakarta Monorail provides a smooth track for foreign investors
wishing to take part in an expanding public services scene.
INDONESIA TRANSIT CENTRAL
Jakarta Monorail Project Office
Gedung Perfilman Haji Usmar Ismail, Jl. H. R. Rasuna Said Kav. C-22, Jakarta 12940
Te l : + 6 2 21 5 2 7 8 8 3 5 , F a x : + 6 2 21 5 2 7 8 8 4 3 , E m a i l : g l o b s y n @ i n d o s a t . n e t . i d
www.bali.intercontinental.com
001 803 657 532
Jalan Uluwatu 45, Jimbaran, Bali 80361, Indonesia
Tel: +62 361 701888 ● Fax: +62361 701777 ● [email protected]

Indonesia - United World

Transcription

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