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VOL. XXI / 1 / 2012
the magazine of the german-indonesiaN chamber of industry and commerce
S O FJ A N W A N A N D I
Legal
System
has been defeated
by Politics
RAHARDI RAMELAN:
INDONESIA MUST
RETURN TO THE SEA
GITA WIRJAWAN
BUREAUCRATIC
REFORM HAS BEEN A
KEY PRIORITY
PUTERA SAMPOERNA
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FOREWORD
THE MAGAZINE OF THE GERMAN-INDONESIAN
CHAMBER OF INDUSTRY AND COMMERCE
Managing Director & Editor-in-Chief:
Jan H. Rönnfeld
Optimism & Growth
Indonesia, the only G20 member from the Southeast-Asia region
set to join the trillion-dollar-economy club, is undoubtedly The
Rising Star of Southeast Asia and The Flavor of the Moment of the
international business and investment community. And rightly can
the country be proud of its achievements in politics, finance and the
macro economy. But we want to know, what actually has changed in
the business environment that justifies this hype, addressing this to
Gita Wirjawan, the Trade Minister of the Republic of Indonesia and at
the same time still Chairman of BKPM, the Investment Coordinating
Board Agency.
In our cover story, Chairman of the Employers Association (APINDO),
Sofjan Wanandi talks about the recent labor strike and its impact
on the investment climate in Indonesia, where he points at legal
uncertainty and lack of security as the biggest challenges of doing
business in the country. We also profile Rahardi Ramelan, Former
Trade Minister and Former Research & Technology Minister of the
Republic of Indonesia, who talks about Indonesia’s current situation
and his ties to Germany.
The success of Sampoerna Foundation is about the visionary
entrepreneur: Putera Sampoerna, who took a few years back an
extreme maneuver by selling the old-aged cigarette family business
- notably one of the biggest in the world - to America’s Philip Morris,
and swift it to the so called social business. As part of its Prominent
Entrepreneur Series, SOROTAN had the opportunity to take a closer
look at this visionary entrepreneur who believes everyone can strive
to leave the world a better place than the one he or she was born
into.
To boost the development of international trade and investment
EKONID signed two important MoUs with National Chamber of
Commerce (KADIN) and the Employers Association (APINDO), the
two most important institutions of the private sector in Indonesia.
In the cultural section of SOROTAN you will find a profile of Indonesian’
master painter, Raden Saleh, who interestingly, never displayed any
of his pieces in Indonesia in his time. The exhibition, organized by the
Goethe Institut within the JERIN event series, is honoring with this
painting exhibition, the work of this master.
We hope you enjoy this edition of SOROTAN
Jan H. Rönnfeld
Delegate of the German Industry in Indonesia
Managing Director of EKONID
Editor-At-Large: Maria Gracias
Reporter: Iwan Sagi Nasution
Copywriter: Dennis Lischer
Contributors: Bettina Wasener, Daniela Gekle,
Necip Bagoglu, Prieta Perthantri, Ranggi
Pramesti, Rofiuddin, Werner Kraus.
Translation: Dennis Lischer
Design & Layout: Bagus Ajie Mandiri
Illustration & Graphic: Bagus Ajie Mandiri
Photography: Aam Muharam, Iwan Sagi Nasution
Advertisement: Mei Tobing, Annisa Rizkia
Production Supervisor: Andi A. Maulana
Print:
PT Persada Utama Tirta Lestari
Publisher is not liable to any content printed in
this magazine
Circulation: Iwan Nasution, Soebardji, Audy
Tabimanyu, Annisa Rizkia
Digital Edition: http://indonesien.ahk.de/en/
publications/media/sorotan/
Bank Details:
Deutsche Bank, Jakarta
000-5355-01-0 (Euro)
CIMB Niaga Bank
Jakarta, Menteng Branch
202-01-00041-00-9 (Rp)
Next Issue: Next issue of SOROTAN will be
published in June 2012.
* All opinion expressed in articles do not necessarily
reflect the views of EKONID.
SOROTAN is published by EKONID (German-Indonesian Chamber
of Industry & Commerce). © Copyright EKONID 2012. All rights
reserved. SOROTAN is published quarter monthly, 4 times per
year by the Publication together with Design & Communication
Department of the German-Indonesian Chamber of Industry
& Commerce. Copying for other than personal use or internal
reference or of articles or columns not owned by SOROTAN
without written permission of EKONID is expressly prohibited.
Office: Jl. H. Agus Salim No. 115, Jakarta 10310 Indonesia.
Tel.  6221-3154685, Fax. 6221-3155276
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Subscription: If you wish to subscribe to the SOROTAN Magazine,
please contact: [email protected]
Contribution: If you wish to contribute your article or if you want
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SOROTAN EDITION 1 / 2012
CONTENTS
22
Legal System
has been defeated
by Politics
@ Iwan Nasution
-Sofyan Wanandi, Chairman APINDOBY IWAN SAGI NASUTION
ECONOMY
EKONID NEWS
12 Across Asia an Engine of Growth
40 Human Capital Club
for Luxury Firms
41 European Joint Gathering
BY BETTINA WASSENER
42 Get Together
@ TEMPOPHOTO.COM
16 Indonesia’s Automotive Market
46 Member News
BY NECIP BAGOGLU-GTAI
48 Member Profile
20 Tender for Jakarta MRT Project
Exclusive
04 Bureaucratic Reform has
been a key priority of the
Government - an interview
with Gita Wirjawan
BY MARIA GRACIAS
COVER PHOTOGRAPH: AAM MUHARAM
44 Premium Partner
Keeps Rising
to Begin
TRADE FAIRS
BY NECIP BAGOGLU-GTAI
52 IMM Cologne
UP CLOSE & PERSONAL
BY PRIETA PERTHANTRI
56 BAUMA
28 Rahardi Ramelan: Back to the Sea
60 ToyFair
BY MARIA GRACIAS & IWAN SAGI NASUTION
PROMINENT
ENTREPRENEUR
32 Putera Sampoerna
BY DENNIS LISCHER & MARIA GRACIAS
BY DANIELA GEKLE
61 IFFINA
62 IndoIntex
64 Calendar Trade Fairs
CULTURE
66 Destination Indonesia
HIGHLIGHTS
68 Destination Europe
37 KADIN Outlook
70 German Cinema
38 EKONID & APINDO signing MOU
71 Batik the Living Heritage
74 Raden Saleh’s Homecoming
2
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that last for the world of tomorrow.
siemens.com /answers
has been a key priority
of the
government
The Trade Minister of the Republic of Indonesia, H.E Gita Wirjawan.
@ Nickmatulhuda/tempophoto.com
BY MARIA GRACIAS
EXCLUSIVE
I N T E R V I E W
@ Aditia Noviansyah/tempophoto.com
“Free trade facilitation must be
backed by a clear and positive
investment thesis.”
the meeting with business leaders in
Frankfurt last month, you mentioned
Indonesia as one of the most attractive havens in the world?
How so?
DURING
Indonesia is one of the most attractive investment havens
in the world based on its landscape of potential. On the
backdrop of global economic challenges, as a trillion dollar
economy Indonesia managed to grow at 6.5 percent in 2011,
kept a low inflation rate to 3.79 percent, and exceeded the
target of US$ 200 billion of total trade. Its 2012 economic
projection continues to be positive, supported by 60 percent
domestic consumption and a robust and dynamic domestic
market. Indonesia’s population of 240 million is growing in
purchasing power with per capita income of over US$ 3,000
while an estimated 50 million middle class in urban areas now
reaches US$ 10,000. Indonesia has also been endowed by a
demographic dividend with more than half of our population
is below 30 years old, which maintains ratio of productive
population compared with dependents higher in the next 15
years. Our growth is also guided by a national master plan
(MP3EI) that seeks to expand and accelerate our economy
at an average page of at least 7 percent per year to reach
US$ 4 trillion in GDP and US$ 15,000 per capita income by
2025.
What about the recent labor strike in Bekasi, will this not
create a domino effect and hurt Indonesia’s investment
sector as many investors would relocate to other countries?
Allegedly more than 100 South Korean investors are set to
relocate their business from Indonesia.
In a democratic environment, differing opinion is part of the
process. As part of such process, the referred labor strike
had been resolved amicably. The premise is clear. Indonesia
upholds pro-job, pro-poor, pro-growth, and pro-environment
strategies. Those strategies need to be sensibly balanced for
the required context.
Do you see the urgency of revising the labor law because
many say that the current labor law, which dates back to
2003, is too favorable to workers?
Yes – revising the labor law is one of key priorities of the
government. This is required to balance and support our projob, pro-poor, pro-growth, and pro-environment stance.
Infrastructure remains a big challenge for Indonesia. Are
you expecting investors to help improve infrastructure
development in the country by building new projects?
We acknowledge that Indonesia only spends 3 percent of
GDP on infrastructure. Therefore, the Government has
launched the Master Plan for Acceleration and Expansion of
Indonesia’s Economic Development (MP3EI) to integrate the
country and connect it to the global economy. It will guide
6
EXCLUSIVE
I N T E R V I E W
investment, particularly in infrastructure, concentrated along
six economic corridors with high competitive advantage. With
the MP3EI, Indonesia’s infrastructure development program
for the next 5 years will cost approximately US$ 150 - 160
billion, of which US$ 50 - 60 billion will be supported through
public funds. The remaining US$ 90 - 100 billion will be
coming from private participation, including under PrivatePublic-Partnership arrangements.
Bureaucracy also poses a major challenge to prospective
investors?
Bureaucratic reform has been a key priority of the
Government. The national single window had been
established to support a more conducive environment for
investment. We have also offered key facilitation such as tax
allowance for 129 business sectors ranging from plantation,
mining, real estate, electronics and pharmacy to food, tax
holiday that will give five to 10 year tax breaks in 5 industrial
sectors with an investment of at least Rp. 1 trillion, as well as
the issuance of the Land Law that will expedite road, port and
power-plant construction projects that are so far impeded by
land ownership issues.
What about Government’s plan to cut subsidies in April 2012,
to what extend will this affect investment in the country?
Government’s plan to cut fuel subsidy in April 2012 will
positively affect the economic profile. This should further
entice far reaching investment.
You are taking over Ibu Mari Pangestu’s position following
the reshuffle of the cabinet in October last year. She was
criticized over the free-trade policy which many saw to
be hurting domestic industries, as local manufactured
products could not compete with cheaper products from
China. Are you likely to continue her policy?
Free trade facilitation must be backed by a clear and positive
investment thesis. This will particularly ensure Indonesia’s
ability to compete globally and to climb up the value chain.
Indonesia needs to expand its trade portfolio from being
dependent on natural resources to a knowledge economy.
This can be achieved through investments that are committed
to technological and knowledge sharing. With a strong
commitment and realization of investment, trade facilitation
can be much more of a win-win proposition.
What are your hopes for investments and the bilateral trade
between Indonesia and the German?
I am pleased to see that trade activities between Indonesia
7
and Germany are on the rise. Trade with Germany is
accounted for 2.04 percent of Indonesia’s global trade, making
Germany as our 12th largest trading partner in the world and
Indonesia’s largest in the European Union. While our bilateral
trade reached its peak in 2010 at US$ 5.99 billion, in 2011 our
total trade reached US$ 5.62 billion for period of January –
October 2011 alone. Germany is also an important investor
for Indonesia. In terms of cumulative investment approved,
German’s investment in Indonesia reached the value of US$
157.6 million in 2010 with realization of 51 projects, making
Germany the 12th biggest investment source for Indonesia.
Up to the 3rd quarter of 2011, German’s total investment in
Indonesia reached US$ 148.6 million.
What sectors would you want to highlight for investors?
Guided by MP3EI, we invite investments in six key corridors.
Sumatra island, for example, has been tapped as a production
and processing center of natural resources; Java, a driver for
industrialization and services; Kalimantan, a production and
processing center for mining and energy reserves; Sulawesi,
a production and processing center for agriculture, fisheries,
plantations, and oil and gas; Bali and Nusa Tenggara, a
gateway for tourism; and Papua and Maluku, a development
center of food, fisheries, energy and mining. Provided good
infrastructure programs, some sectors having high potential
this year, such as toll roads, electricity, ports and tap water.
How is the status of the planned CEPA between Indonesia
and Europe? How would you judge the progress or chances
to start with the negotiations?
CEPA between EU and Indonesia is progressing positively.
Learning from other similar processes, we will need to spend
time on socializing the planned comprehensive economic
partnership to assure a wide reaching understanding and
support. Indonesia has received and analyzed EU’s draft
proposal on scoping exercise. The Ministry of Trade will
soon prepare a counter draft, taking into account Indonesia’s
recent development and the distinct characteristics of the two
parties. A proposal for the counter draft, addressing the real
impact and benefit of the economic players on the ground,
has been well received by relevant Indonesian government
agencies as well as by the public. We believe that in the best
interest of the two parties, the dissemination of information
and findings with relevant stakeholder is an important prestep before launching CEPA negotiation.
Indonesia is joining the “trillion-dollar economies”, very
prestigious indeed. The question is, despite its success on
the global stage, how can Indonesia manage its domestic
economy problems?
EXCLUSIVE
I N T E R V I E W
and Eastern Europe. While acknowledging natural resources
as Indonesia’s key strength, we are also committed in making
sure that we can climb the value chain. Raw rattan export
was banned to do exactly that. Related industries had been
asked to absorb local raw rattans to produce more enhanced
end products. We fully support exports of value-added rattan
products to consumers around the world.
@ ARCHIVE
Do you have an annual target set yet? What is on your top
list of priorities?
“Indonesia upholds pro-job,
pro-poor, pro-growth, and proenvironment strategies.”
Indonesia’s trillion-dollar economy is closely linked to our
strong domestic profile. As evidenced in the 2011 economic
accomplishments, with 60 percent domestic consumption,
rising middle class, and a considerably young population
Indonesia is more resilient in responding to external
pressures. In 2012 we will focus our effort to improve the
domestic market by aiming for 95 percent of the national
household consumption to be supplied from the domestic
production, prize variation of 10 main commodities to be
below national target and no more than 7 percent, and
wholesalers and retailers’ contribution to GDP to be at a
minimum of 7 percent.
Former Trade Minister Mari Pangestu said that exports
could grow between 18 and 20 percent this year, but in
reality the number of exports continues to decline. And now
you impose a ban on raw rattan export, why?
Actually, the ban on raw rattan export material has shown
terrific results of 84 percent increase compared to 2011 of
raw rattan export. In 1 month and 19 days, to be exact after
the impose the ban, the export value of rattan finished
product reached US$ 27 million, comparing to the export
value in 2011 for the whole year of around US$ 32 million.
2012 target is comprised of three areas; stabilization of
domestic market, improving export and international
cooperation, and lastly on bureaucratic reform and good
governance. Domestically, 95 percent of the national
household consumption is to be supplied from the domestic
production, prize variation of 10 main commodities to be
below the national target and no more than 7 percent, and
wholesalers and retailers’ contribution to GDP to be at a
minimum of 7 percent. Our annual target export is US$ 230
billion, which include a 25 percent increase of trade coming
from non-traditional market. We also aim to be a leading
institution in many good governance indicators. Our key
priorities also includes reducing dependencies to imported
products that can be supplied domestically e.g. through a
more responsible consumption of basic food commodities as
well as in increasing human resource quality of civil servants
in the Ministry of Trade.
We learned that there are plans at the National Coordinating
Investment Board Agency (BKPM) to increase the minimum
equity requirement for foreign investment to US$ 1 million.
How does that fit with the GOI policy to support UKMdevelopment?
Law No. 20/2008 regarding Small and Medium Enterprise
(SMEs) stipulates that foreign investment is categorized as
big or large companies with minimum net asset value of
Rp 10 billion or approximately US$ 1 million. This regulation
is aimed to create conducive environment for domestic SME
business sector, the backbone of Indonesian economy. There
are currently around 52 million SMEs in all sectors around the
country that contribute 60 percent to the GDP and 97 percent
of employment. In addition to that, we need foreign capital
for much larger scale and transferring technologies (‘smart
capital’), providing energy or infrastructure and strategic to
the national economy.
In 2011, we were able to reach US$ 203.6 billion of trade
value, 29.1 percent increase from the year before. In 2012, we
aim to reach US$ 230 billion of trade value by carving more of
non-traditional market in Latin America, Middle East, Africa
8
BILATERAL TRADE
between Indonesia-Germany
Indonesian Trade Minister and entourage held a
meeting with numerous German companies in
Frankfurt, Germany earlier this year.
Trade Balance
Indonesia with Germany 2010-2011
6,129
2010
Total Trade
Export
3,109
2,710
3,020
2011
2,654
5,365
(Mill. Thousand US$)
@ ARCHIVE
statistical data, the bilateral trade in
from
2010 between Indonesia and Germany
amounted to US$ 5.99 billion. Indonesia’s export
to Germany between January-October 2011 was
recorded at a level of US$ 2.78 billion, or increasing
by 14.84 percent compared to last year’s level in 2010
amounting to US$ 2.42 billion. Meanwhile Indonesia’s
import between January-October 2011 was noted
at a volume of US$ 2.84 billion or increasing by
17.04 percent from a level of US$ 2.42 billion in the
previous year. The trade balance between Indonesia
and Germany in the past three years (2008-2010)
was a deficit for Indonesia, with a balance of
US$ -21.98 million in 2010. The main export
commodity from Indonesia to Germany among
others are palm oil, copper, natural rubber, printing
machines, and footwear. Meanwhile the main
import commodities to Indonesia from Germany are
electronics and equipment, motor spare parts and
accessories, home appliances. From the investment
aspect, Germany is ranked number 12 as one of the
investor country in Indonesia. In the fourth quarter
in 2011, the investment from Germany in Indonesia
was worth US$ 158,1 million with 68 projects.
Import
Source: Ministry of Trade
Trade Performance
Indonesia with Germany 2006-2010
(Mill. Thousand US$)
4,298
3,482
2,025
4,700
5,533
2,984
2,326
2,316
2,465
2,373
2008
2009
3,006
1,456
2006
2007
Source: Ministry of Trade
Total Trade
Export
Import
3,068
1,982
5,991
10
2010
@ WWW.ISTOCKPHOTO.COM
Luxury brand store Cartier next to the
entrance of ION Orchard shopping mall
on Orchard Road, Singapore.
ECONOMY
M A R K E T
Across
Asia
an Engine of Growth
for Luxury Firms
Europe is struggling to contain a spiraling debt crisis;
the U.S. economy is beset with high unemployment; and
emerging Asian economies are growing less rapidly. But
none of this is killing off the appetite Asian shoppers have
for luxury goods. Companies like Burberry, Hugo Boss and
Prada have continued to strike an upbeat tone on Asia in
recent weeks, despite the havoc that debt woes in the euro
zone have wreaked on investor sentiment.
B E T T I N A W A S S E N E R / T h e I n t e r n a t i o n a l H e r a l d Tr i b u n e
luxury
retailer
Prada, for example, which had an initial public offering
in Hong Kong in June, reported last
week that sales in Asia excluding
Japan had climbed 45 percent in the
quarter ended October 31 from the
year-earlier period. Even in Japan,
where an already feeble economy
was weakened by the earthquake and
tsunami of March 2011, Prada sales
grew nearly 20 percent. Based on
incoming orders, the company said,
the next couple of months, which
span the crucial shopping seasons of
Christmas and the Lunar New Year, are
expected to be as dynamic as ever.
the italian
With Western economies languishing,
emerging countries in Asia have
become a primary engine of global
growth generally — and the luxury
market in particular — in recent
years. As a result, what happens in
the region has important implications
for Western luxury companies. The
Asia-Pacific region, including Japan,
now accounts for about 45 percent
of sales at Prada and Richemont, for
example. The fundamental drivers of
this growth, analysts say, are unlikely
to be derailed, even in the event the
economic troubles of Europe and the
United States were to worsen.
If the Chinese economy were to grow by
only 7 percent per year in the long term
— compared with more than 9 percent
this year — consumption could still be
expected to swell as wages rise and
13
ECONOMY
M A R K E T
more people move from rural areas to
the country’s rapidly expanding cities,
said Pradeep Rao, Head of Asia-Pacific
consumer and health care investment
banking at Citigroup in Hong Kong.
“People will have more and more
cash to spend on discretionary items,
including luxury goods”, he said.
The sheer size of some of Asia’s
emerging economies also comes into
play. “If you have a population of 1.4
billion, even 1 percent of that is a very
large number”, Mr. Rao said.
To be sure, growth is not as strong in
some markets today as it was earlier
in the year. Slumping stock markets,
slowing exports and less bank lending
have taken some of the shine off the
market for high-end goods in Asia in
recent weeks. Buyers at a Christie’s
auction in Hong Kong last month paid
nearly 46.6 million Hong Kong dollars,
or nearly US$ 6 million, for a rare blue
and copper meiping vase, and a set
of paintings of lotus flowers by the
contemporary artist Cui Ruzhou sold
for US$ 124 million. But other items
fetched less than expected, and others
still went unsold.
“High-end consumers here read the
papers, and they see that the world is
in a difficult situation — so they might
delay the purchase of, say, a new
watch”, said Erwan Rambourg, Head of
Consumer and Retail Equity Research
at HSBC in Hong Kong. “So some
retailers are reporting a slowdown in
sales in November.”
But in Asia, it is a moderation, not a
collapse. And analysts believe that the
region’s love affair with luxury goods
still has a long way to run.
“We have been seeing sales increases
of 35 or 40 percent in the Asian luxury
“If you have a population of 1.4 billion,
even 1 percent of that is a very large number”,
Pradeep Rao - Citigroup Hongkong
goods market in Asia ex-Japan”,
Mr. Rambourg said. “That is just not
sustainable.”
Over the next year, he estimated,
growth will be closer to 20 percent,
but even that would exceed expansion
rates in other parts of the world.
Industry executives concur and
are racing to position themselves
accordingly. Chow Tai Fook Jewellery
Group, which is almost exclusively
focused on mainland China, Hong
Kong and Taiwan, is set to raise up to
US$ 2.8 billion in a stock market listing
in Hong Kong this month.
Little known in the West, the familyowned Chow Tai Fook is a major player
in what it calls the mass luxury market,
which focuses on items that are within
the reach not just of the superrich,
but also of the swelling ranks of the
Chinese middle-class. The company
has more than 1,500 points of sale and
plans to add about 500 more by 2016.
Meanwhile, Graff, which sells ultraexclusive jewels and watches and
is based in London, is considering a
listing next year in Hong Kong rather
than in London, further underlining
the growing importance of Asia to the
luxury sector. “Hong Kong and Asia is a
very important center for the diamond
and jewelry business, especially
today”, Francois Graff, managing
director of the company, said in a recent
interview in Hong Kong. “Hong Kong is
at the doorstep of China; it would be a
14
natural location for us.” Asia currently
accounts for about one-third of the
company’s business, Mr. Graff said, but
the region is poised to overtake Europe
and the United States to become the
company’s most important market.
This is no surprise given that the
luxury market in mainland China alone
is expected to swell to €12.9 billion, or
US$ 17.3 billion, this year, according to
a recent study by Bain & Co. That is still
less than 15 percent of the total value
of luxury goods worldwide, whose
demand continues to be dominated
by the United States, Europe and
Japan. But the 35 percent growth that
Bain forecasts for China this year far
outstrips the growth rate in traditional,
mature markets. For the greater China
region, which includes Hong Kong,
Macao and Taiwan, sales are expected
to grow 29 percent in 2011, to about
€23.5 billion.
If one adds the amount that Chinese
shoppers spend annually while
traveling abroad — an estimated €12
billion to €15 billion, according to
Bain — Chinese consumers account
for more than one-fifth of global
consumption of luxury goods. Much
of that overseas spending happens in
Europe and contributes to sales growth
there. Looking further out, the value of
the Chinese luxury market could reach
about 180 billion renminbi, or US$ 28
billion, in 2015 — roughly double the
2009 figure, McKinsey estimated in a
report released in March. To be sure,
French high fashion brand Louis Vuitton
store on Canton Road, Hong Kong still
attracts many Asian shoppers.
vast swaths of the population in fastgrowing countries like China, India or
Indonesia will never be able to afford
a pair of Jimmy Choo shoes or a
Gucci handbag. But at the upper end
of the wealth pyramid, the number of
millionaires in the Asia-Pacific region
has already reached critical mass.
Cap Gemini and Merrill Lynch Wealth
Management estimated this year that
there were 3.3 million millionaires in
the Asia-Pacific region in 2010 — more
than in Europe and not far short of
the 3.4 million millionaires in North
America. Cultural and social factors
also play a role in Asians’ willingness
to splurge on high-end goods. The
tradition of giving expensive gifts
at weddings, births and traditional
festivals is more deeply ingrained
in the region than in many Western
cultures. Gold bangles are a must-give
item at Chinese weddings, for example.
Moreover, the upwardly mobile, newly
affluent Chinese are often eager
to display their wealth. In modern
Chinese society, an individual’s place
on the social ladder may depend on
how much money he or she earns, and
luxury goods help to advertise that,
said Mr. Rambourg, the HSBC analyst.
All this is likely to help cushion the
luxury sector in Asia from the impact
of any renewed global financial crisis.
“Even in the teeth of the global
recession of 2009, luxury goods saw 16
percent sales growth”, the McKinsey
report noted. That was down from the
20 percent levels of the preceding few
years, but still far better than in many
major luxury markets.
Efforts
by
international
luxury
companies to bring their goods to
shoppers in Asia, meanwhile, have led
to a large increase in glitzy high-end
shops across the region in the past few
years. Despite this, store penetration
15
is still low, Mr. Rambourg said, and in
many parts of Asia — outside major
cities like Hong Kong, Shanghai or
Singapore — it is still in its infancy.
“There is definitely still room to grow”,
he said.
And while Western companies continue
to move toward the East, Chow Tai
Fook, the Hong Kong company, shows
no desire to move toward the West. The
planned expansion of the company’s
retail network, its managing director,
Kent Wong, said, will be focused on
greater China. And the proceeds from
its Hong Kong initial public offering will
go a long way toward financing that.
A version of this article appeared in print on
December 9, 2011, in The International Herald
Tribune with the headline: Across Asia, an Engine
of Growth for Luxury Firms.
An estimated 1.2 million
vehicles will be sold in 2016.
@ IWAN NASUTION
Indonesia’s automotive industry is enjoying a
sweet moment thanks to the return of a large
consumer base and strong consumer spending.
16
ECONOMY
I N V E S T M E N T
Indonesia’s Automotive Market
Keeps Rising
Jakarta (gtai) – In 2011 Indonesia’s automotive sector recorded a sales increase of 17 percent
with 894,180 vehicles being sold. The sector grew despite bottlenecks in the supply of parts and
components caused by the natural disasters in Japan and Thailand. The automotive association
Gaikindo expects that in 2012 sales will reach at least 920,000 units, while the 1-million units
mark is expected to be reached in 2013. With the positive market outlook, manufacturers are
expanding their capacities.
N E C I P B A G O G LU / GTA I
Indonesian automotive market is continuing to flourish.
Despite the industry’s problems related
to the supply of components as a result
of the earthquakes in Japan and the
flooding disaster in Thailand, data from
the Indonesian Automotive Association
reveals that in 2011 sales in the market
was up 16.9 percent from 2010, with
894,180 vehicles being sold. Experts had
expected more subtle market growth
due to the aforementioned bottlenecks.
With the lastest numbers coming in,
a new sales record was set. Year 2012
market development forecasts reveal
that the Association made a rather
cautious forecast, expecting this year’s
sales volume to be between 910,000
and 930,000 units.
THE
Despite the slowing down of the
market’s growth, the achievement of
the 1-million-unit sales target initially
predicted for 2015, with current
projections taken into consideration,
may very well be achieved as early as
2013. Analysts from HIS Automotive
are predicting that 1.2 million vehicles
will be sold in 2016. Strong GDPgrowth of approx. 6.5 percent, everincreasing income and the growing
number of offers in consumer credit
for making motor vehicle purchases,
are driving the increase in demand for
motor vehicles. This demand is not only
attributed to the expanding commercial
vehilce segment of consumers,
driven thanks to reduced inflation and
currency stability resulting in increased
purchasing power. Apparent investment
growth in the industrial sector and the
nation’s buoyant economy are also
contributors for this strong demand
in commercial vehicles. An increase
in orders for heavy equipment trucks
is correlated to the huge construction
projects and mining investment in
the country. Current stock of heavy
trucks and busses is outdated. A high
replacement demand exists.
The supply in the motor vehicle
market is met mostly through local
production and assembly plants, which
are operating under the supervision
of international manufacturers. This
market is dominated by Japanese
producers. The motor vehicle producers
Toyota, Daihatsu, Mitsubishi, Suzuki,
Isuzu, Nissan and Honda colelctivley
represented
a
marketshare
of
90.6 percent. In the MPV-segment
(“Multi
Purpose
Vehicles”)
the
most popular models are “Toyota
17
Avanza”, “Daihatsu Xenia”, “Suzuki
APV” and Mitsubishi Maven”. Other
manufacturers are attempting to
penetrate the market. In the beginning
of 2012, PT Proton Edar Indonesia
(PEI), a sister company of Malaysian
manufacturer Proton, introduced its
newest MPV-Model “Proton Exora
Star”.
In the upper and luxury vehicle
segments, car maker Mercedes-Benz
and BMW are establishing assembly
plants. Following the success of the
3-Series BMW, with a marketshare of
25 percent in Indonesia’s PremiumSegment, is investing approx €8 million
for the assembly of 5-Series in the
country. The locally assembled models
520i, 528i and 520d and the imported
535i model, the Bavarian carmaker
want to strengthen its presence. The
total share of German manufacturers
in the Indonesian car market remains
small, although profits are being made
due to the relatively high prices in the
Premium class.
Indonesia’s foreign motor vehicle trade
remains a relatively minor contributor.
Indonesia’s total export of completely
built up (CBU) vehicles in 2011 (2010)
ECONOMY
I N V E S T M E N T
Indonesia’s Motor Vehicle Market
listed by most important manufacturers
(in units)
894,180
764,710
486,061
2009
2010
2011
according to Gaikindo was 107,932
(85,796) units. At the same time a
total of 83,709 (55,624) completely
knocked down (CKD-Sets) vehilces
were delivered to foreign buyers. The
CBU-imports recorded 76,173 (76,520)
vehicles.
In 2011 commercial vehicles constituted
the biggest share of local motor vehicle
production totaling 837,948 cars, up 19,3
percent compared to 2010. Moreover,
according to Gaikindo in 2011 271,943
trucks and pick-ups as well as 4,142
busses were manufactured. About
63 percent of the 530,762 commercial
vehicles produced comprised of the
popular MPV with three seatig rows.
Gaikindo forecasts an above average
sales increase for the mini-MPV
segment. For the “low-cost-car” being
planned and prepared good sales
opportunities are expected as well. The
major manufacturing companies Astra
International (Toyota/Daihatsu/Isuzu)
and Indomobil (Nissan) are trying, by
2013, to design an affordable car with
a selling price of US$ 10,000 on the
market. Astra International with a
marketshare of approx. 54 percent is
the biggest manufacturing company in
the motor vehicle segment in Indonesia.
Based on the overall positive market
developments, motor vehicle manufactures and component producing
companies are intensifying their
business activities. The market
dominating Toyota Motor Corporation
(TMC) with a marketshare of 34,8
Manufacturer/
Brand
2009
2010
2011
186,922
280,989
311,136
Daihatsu
77,513
118,591
139,544
Mitsubishi
61,735
106,483
134,416
Suzuki
44,689
71,210
94,569
Honda
39,570
61,336
45,416
Nissan
21,440
37,542
56,137
Isuzu
15,236
24,012
28,746
Toyota
Source: GAIKINDO
percent in 2011 announced in the
beginning of 2012 several new projects.
The Japanese manufacturer wants to
add to the already planned invesetments
of US$ 311 million for the expansion
of annual production capacity from
110,000 to 180,000 cars now to another
US$ 144 million to reach a capacity
increase of 230,000 cars at the end of
2013. At the same time Toyota Astra
Motor (TAM) is expanding its network of
sales partners and service shops.
Project activities are also very
buoyant in the area of motor vehicle
supply
industry.
The
Japanese
Denso Corporation, manufacturer of
sparkplugs, air-conditioning units,
heaters and motor vehicle filters
want to establish another plant in
Indonesia. Similarly, the Chief of Denso,
Nobuaki Katoh said in Jakarta the new
production plant will be errected in
Citibung, Bekasi covering an area of
20,000 sqm. Construction is planned
for 2012. Denso already operates three
factories in Indonesia, two in Bekasi
and one in Sunter (North Jakarta). The
company produces 14 types of motor
vehicle components for an annual
800,000 cars.
Meanwhile, Nippon Steel Trading
company, the sister company of
Japanese Steel producer Nippon Steel,
announced the forming of a Joint
Venture with three local companies.
Nippon Steel has a 30 percent ownership
of the holding company PT IndoJapan
Steel Center. In remaining investors
18
include PT Adyawinsa Dinamika (30
percent), PT Dwijaya Sentosa Abadi
(30 percent) and PT Krakatau Steel (10
percent). PT Dyawinsa delivers various
parts for prominent car manufacturers
in Indonesia, such as Toyota, Daihatsu,
Nissan and General Motors. In the first
phases of the project, the Joint Venture
aims to invest US$ 38 million for the
construction of a plant covering an area
of 4, 8 hectares in the Industrial Zone of
Karawang (West-Java). The plant, with
a production capacity of 120,000 tons of
steel plates should go into operation in
2013.
In early 2012, Indonesian airconditioning manufacturer PT. Selamat
Sempurna and Japanese Tokyo Radiator
Mig. Company sealed a Joint Venture to
produce and market car air-conditioning
units and other heat transfer
components. The Japanese company
wants to be known under the name
PT Tokyo Radiator Selamat Sempurna
67 percent. The new plant should be
constructed through an investment of
IDR 24,7 billion (€ 2,1 million; 1 € =
IDR 11,640) in Tangerang, the northern
part of Jakarta. The plant is expected
to produce 80,000 air-conditioning
units. PT Selamat Sempuran produces
a diverse range of motor vehicle
components under the brandname ADR
Radiator, Sakura Filter, Donaldson Filter
and Acap Filter.
MRT project financed by Japan
but opportunities for other
suppliers exist
An MRT servicing Indonesia’s capital is
hoped to solve traffic woes. The project’st
expected completion is October 2018.
ECONOMY
I N F R A S T R U CT U R E
Tender for Jakarta
MRT Project
to begin
Jakarta (gtai) – Information from the Jakarta city administration states that the tender of
the long-awaited MRT project will take place in the near future. Budgeted at around € 1,3
billion, the project’s objective is to reduce traffic bottlenecks by privately owned vehicles in the
10-million-people metropolitan. Through the Japan International Cooperation Agency (JICA),
the Japanese Government is providing credit on favorable terms of 120 billion Yen.
N E C I P B A G O G LU / GTA I
realization of the megaproject
for
developing
an MRT system in the Indonesian
capital of Jakarta is coming ever
closer. According to data from the city
administration, the project carrying
organization PT Mass Rapid Transit
Jakarta (PT MRT Jakarta) is soon to
tender the budgeted IDR 15,5 trillion
(approx. € 1.3 billion; 1 € = IDR 11,550)
project, after the list of the qualified
bidding companies at 2011 year end
was made public. The successful
companies included the consortia
Hazama-Murinda Iron Steel, SMCCNK, Sumitomo-Adhi, Tekken-HutamaMarubeni, Tokyu-Wika, Taisei-PP, and
Abayashi-Shimizu-Jaya
Konstruksi.
The website of PT MRT Jakarta has
published the complete list of qualified
bidding companies responsible for
both above-ground and under-ground
construction work.
addressed about procedural issues.
Moreover, attending the event was
also representatives of the Indonesian
Anti-Korruption Commission (KPK),
the Institute for the Procurement
of Government Goods and Services
(LKPP) and the State Development and
Finance Surveillance Agency (BPKP). It
is hoped that inviting these institutions
since the early phases of the project,
will allow them to oversee that all
parties follow the rules and to avoid
irregularities during the awarding of
contracts.
As MRT-President Tribudi Rahadjo
Ende explained at end Januar
2012 in Jakarta, an information
event inviting the bidders was
recently held in preparation for the
tender auction, in which the tender
committee elaborated the details of
the construction work. Additionally,
the attending companies also were
The Jakarta city administration plans
to start preparation work for the
megaproject in April. Included in the
preparation work is the widening of
Jl. Fatmawati (Fatmawati Road) in
South Jakarta, through which the
MRT would pass, and the relocation
of utility networks (phone lines,
electricity cables, water pipes, sewers
THE
The financing of the megaproject
will in large part be made possible
through an affordable loan by the
Japanese Government in the amount
of 120 billion Yen through the JICA.
The tender auction for the project is
targeted to result in a contract signing
between October and November.
21
and fiber-optic lines). The purpose is
to clear out the areas through which
the MRT would pass and to avoid utility
networks from being affected by the
construction.
Phase One of the project, comprising
of an MRT central station, a depot and
a 15.7-kilometer line running from
Lebak Bulus in South Jakarta to the
Hotel Indonesia roundabout in Central
Jakarta, will be completed by Nov.
2016. The MRT will during its initial
operation period have a passenger
capacity of 212,000 people per day. This
figure will eventually rise to 960,000
per day. Phase Two of the MRT project
will comprise of developing a second
8.1-kilometer MRT line from the Hotel
Indonesia roundabout to Kampung
Bandan in North Jakarta by 2018.
In view of the generous financing
from the Japanese Government it is
expected, that most of the contracts
will be awarded to Japanese bidding
companies. Other companies, however,
may still have opportunities to bid, as
the project will require various supply
needs of equipment, technology and
services.
POLITIC
I N - D E P T H
Legal System
has been
Defeated
by Politics
Legal Certainty and Security Effect on
Country’s Investment and Business Climate
Industry wanted cheap labor and efficiency, whereas labor
wanted employment and fair wages. January’s labor unrest
that culminated in the paralyzing of economic activities in the
industrial estates of Bekasi, West Java Province took many by
surprise as it marked the awakening of the labor movement
after years of slumber.
BY: IWAN NASUTION / PHOTOS: AAM MUHARAM
POLITIC
I N - D E P T H
is rather unimaginable, if
the closing of factories and
industrial zones are the result of the
actions by the unions, as the nation’s
production figures are inevitably going
to plummet, in addition to cheaper
imported goods, the idling of export
activities, increasing number of the
unemployed and the impossible
increase in the number of Indonesian
Migrant Workers sent abroad, due
to the unstable economic situation
in the country,” said Sofjan Wanandi,
the Chairman of Indonesia’s Business
Association of APINDO, citing the
recent massive labor strike in
industrial area of Bekasi in West Java
Province.
“IT
“I think Indonesia should have followed
neighboring Cambodia and Vietnam
which courageously decided that no
wage increases should occur in the
coming four years, unless stated
by accompanying legislation and
security.”
He adds, “They are clearly more
competitive and profitable, frankly
saying, this will lead employers do
their math and take appropriate
action.” The average laborer’s wage
is approximately US$ 50 per month in
Cambodia. With a much more conducive
situation surely it is impossible to stay
competitive if employers are required
to pay laborers US$ 8-9 daily as this
will exceed their production capacity.
“For the business sector this should
be avoided considering logistic costs
in the country are still high, resulting
in lower wages for laborers,” said
Wanandi.
“APINDO have been trying to bridge
the gap between industry and labor as
well as mediating problems that might
arose between them,” said Wanandi.
However, although decisions are
usually accepted by all parties such
as the stakeholders, Government,
employers, the legislative and the
unions, what happened recently in
industrial area of Bekasi in West
Java is that the unions have voiced
dissatisfaction about the set nominal
amount for both the UMR and UMK,
arguing that the amounts decided do
not support all their current living
needs.
Two major strikes hit Bekasi in West
Java province on January 19 to 21,
2012 to demand better pay as tens
of thousands of workers blocked
the toll road, causing traffic delays
that extended all the way to eastern
Jakarta. Losses caused by the twoday stoppage were estimated at Rp 20
billion.
“The local government does not have
many tools in its reportoire to solve
the matter. Eventually we are in its
search for a solution to the problem by
appealed the wage issue to the Higher
State Administrative Court. The reason
was evident, simply because the
measures taken by the association in
conjunction with local wage councils,
APINDO, and the local government
were not respected,” said Wanandi.
However, fearing it would jeopardize
stability and a conducive and positive
investment climate APINDO cancelled
its demands, although this jeopardized
the employers’’ interest, especially
small and medium-sized businesses.
APINDO confirmed that local and
foreign employers had implemented
the UMR and UMK requirements,
whereas an additional agreement was
needed for small and medium-sized
businesses not yet capable of meeting
the wage requirements.
“Smaller employers could not afford
the raise and they made up 80 per
24
cent of companies in the area,”
cited Wanandi. “Not all companies
operating in the country are unable
or not implementing the obligations
agreed, implementing those wage
requirements, only some small and
medium-sized business still need
some time to comply with the them,”
said Wanandi adding that those are
the ones we are helping, as they are
not yet capable of paying for so-called
‘Labor Intensive’, and this doesn’t
include those union laborers working
the ‘skill and unskilled positions in
those factories’.
Wanandi is also against the use of
force and violence in solving the
matter. He said “The legal system has
been defeated by politics”. This could
become a bad precedent for Indonesia’s
business sector, because the union’s
wages are no longer determined
according to input from the councils,
Government and other stakeholders,
but instead by demonstrations, mass
assemblies, the blocking of public
facilities, etc.
“This matter is very fundamental when
it surfaces, especially for businesses,
because companies are forced to
pay UMR and UMK increases that
exceed annual inflation figures, tenfold the figure previously agreed on.
For example, annual inflation is 5-6
percent, while the unions demand UMR
and UMK increases of 30 percent,”
said Wanandi.
“But our approach has so far succeeded
in minimizing foreign employers to
change investment plans and close
factories in the country,” said Wanandi.
Government Support and Intensivied
Collaboration with Foreign
Employers.
For nation development to foster,
“APINDO’s approach has so far succeeded
in minimizing foreign employers to
change investment plans and close
factories in the country.”
contribution from the private sector,
state-owned enterprises and foreign
businesses in the region is very
much needed, not to mention the
Government’s full support. The
Government must be able to be a
leader and positive change agent
for the nation‘s business sector.
The Government must ensure legal
certainty as quickly as possible as
well as provide a security guarantee in
the interests of various parties. Legal
certainty which is for everyone, must
truly exist, must not take sides and
must not exist in certain cases only.
Moreover, the Government’s plan to
implement increases in the electricity
base rates (Tarif Dasar Listrik: TDL)
and fuel restrictions for Premium Fuel
for certain population segments must
meet goals; saving Rp. 150 trillion
from these restrictions must really
lead to improved infrastructure and
transportation, and reduce logistic
costs, considering Indonesia’s logistic
costs remain high compared to logistic
costs in other countries the world over.
Wanandi has hopes that the two plans
are carried out at different times,
since electricity, natural gas and coal
resources savings can be done instead
of raising electricity provision to reach
of 10,000 MW, the implementation of
which is considered to be too late due
to technical and system errors as well
as government bureaucracy, hence,
resulting in more burdensome living
conditions for people .
“APINDO also hopes the for the success
of lowering the interest rate to a one
digit figure, such as 8-9 percent,
although that number is still far from
China’s 5-6 percent or Europe, America
and Japan’s 1-2 percent interest rate,“
Wanandi said. The lowering of the
interest rate will also help the domestic
business and investment sector recover
in obtaining loans without having the
banking industry put huge profits as its
number one priority.
25
Collaboration between the employer’s
and the Government, and related
associations such as APINDO need
to be enhanced. Foreign investors
nonetheless remain an important
partner for the country’s business
sector as the influx of foreign industry
into Indonesia will create jobs,
increase tax value; import technology
even though foreign businesses have
yet to become the main players in the
industry sector. Globalization and an
atmosphere of openness for local and
foreign companies should be fostered.
Both sides are sure to require a wide
range of information and all the help
they can get in connection with their
country’s export-import goods and
market and government bureaucratic
relations. The implementation of US$ 1
Million capital investment is hoped not
to burden foreign companies. Foreign
companies are bound to establish
manufacturing plants in sectors with
high investment values, as compared
to industries such as consulting, legal,
POLITIC
I N - D E P T H
“Poor law enforcement has not allowed
for a conducive domestic business and
investment climate in the country.”
etc. It is certain that the service industry does not require
heavy machinery as no goods are being manufactured.
APINDO’s presence amongst employers, especially foreign
ones, also serves to accommodate political agendas and
government bureaucracy, to achieve mutually beneficial
interests. In connection with collaboration with foreign
employers, APINDO also urges employers to establish
plants in Central or East java, avoiding the DKI and West
Java region, as wage issues frequently arise in this area on
a yearly basis. In Central Java, for example, the Governor
guarantees no wage increases, as it’s simply not yet
justifiable.
APINDO is striving to intensify collaboration with several
sides to provide more convenience for foreign investors;
with the Ministry of Economics to accelerate economic
growth, LP3I, the Ministry of Trade concerning free-trade
legislation and with the Ministry of Industry concerning
industry legislation.
The gap between rich and poor and to minimize the labor
union‘s anarchy-like actions, calls for more intensive
communication between unions, employers and the
Government. Hence, unions will become partners. PR
and CSR functions also need to be maximized. Conflicts
between the surrounding community and employer which
tend to occur in several regions can be avoided. Employers
are urged to share information regarding community and
environment-benefiting activities, and also towards nation
development to the Government refraining from overly
publicizing revenue and profit reports while operating in
Indonesia.
26
POLITIC
labor
Government setS minimum Wage in 2014
ROFIUDDIN/TEMPO.CO
Manpower and Transmigration Minister, Muhaimin
Iskandar announced the Indonesian
Government’s decision to raise
the nation-wide minimum wage to
IDR 2 million by 2014. Muhaimin said
that all union workers should receive
wages of no less than IDR 2 million.
THE
“With the improving economic growth,
the President and everyone within
the Government is eagerly hoping
for the minimum wage to reach the
IDR 2 million mark,” Muhaimin said
in a statement during a University
Diponegoro awards ceremony held
to present former Deputy chief of the
State Intelligence Agency (BIN), As’ad
Said Ali, with an honorary doctorate
degree from the University.
According to Muhaimin, calculations
in setting the minimum wage is under
the authority of the Wage Council, in
order that the normative primary needs
standards and basic rights of union
workers can be guaranteed.
Looking ahead, Muhaimin says, the
mechanism used to determine the
minimum wage includes factors
of performance, productivity, and
company capacity. Once these factors
having been considered, union worker
competence would then also be one of
the important considerations.
So far Indonesia’s minimum wage
standards are still far below the
IDR 2 million mark. In Central Java,
for instance, the highest nominal
amount for wages of union workers is
in Semarang, at IDR 991,500, while the
lowest is in the western part of Cilacap,
at IDR 720,000.
The average city minimum wage for
2012 in Central Java is IDR 834,255,
an improvement compared to average
city minimum wage rates in 2011,
which was only IDR 780,801. Moreover,
average official decent living standard
in 2012 was IDR 864,859 an increase
from the average official decent living
standard in 2011 of IDR 830,108 or
approximately US$ 8.00.
@ RADAR BANDUNG
As’ad Said Ali, Chairman of the National
Awakening Party (PKB), hopes the
IDR 2 million target for the minimum
wage will be realized in the near future.
“By 2014, latest, he said. On what
mechanism the IDR 2 million target is
to be based, Muhaimin said that the
mechanism would remain under the
authority of the Wage Council.
“Indonesia should explore
and extend its maritime
tourism potential.”
UP-CLOSE & PERSONAL
R A H A R D I
R A M E L A N
Indonesia must
Return to the Sea
“There are so many nice places in Indonesia,
but how to get there? Nobody knows!”
This statement came from Rahardi Ramelan, former Minister of Industry and Trade of the
Republic of Indonesia, who held the post when BJ Habibie was President. He expresses his
concern about the Government’s lack of focus in developing Indonesia’s tourism sector.
BY: MARIA GRACIAS & IWAN NASUTION / PHOTOS: AAM MUHARAM
to Ramelan, Indonesia is among
the most beautiful destinations
with many potential routes awaiting
to be explored. “It’s now just up to
the Government to be active and
resourceful in creating the market,” he
added.
ACCORDING
“If you look at Phuket, there are several
airlines with routes to the island. But
Garuda Indonesia, which planned to
have flights to Belitung, never even got
to doing it. Pantai Belitung (Belitung
Beach) is prettier than Phuket, why
then does everyone know Thailand
more?”
Ramelan is of the opinion that
Indonesia hasn’t yet successfully
capitalized on its potential as a cruise
ship destination, even though as an
archipelago, it is sought as a point of
disembarkment for these cruises.
“Those traveling on cruises are rich
people, they’re very expensive! These
folks seek out routes with historical
and cultural backgrounds. Therefore,
we should offer them the routes that
we have here in Indonesia?”
Ramelan himself is very fond of going
on cruise ship tours. With his wife, DR.
Med. Tumbu Astiani, Ramelan he has
gone to various popular destinations
the world over. “My wife and I have
taken a cruise on more than 15
occasions to travel all over the globe.
The one place we haven’t gone to is the
South Pole. In the near future we’re
going on a cruise trip to the Balkan
countries,” Ramelan said.
Ramelan strongly thinks that Indonesia
should explore and extend its maritime
tourism potential. New cruise routes
such as “Spice Route” in the eastern
part of Indonesia, or “Raffles Trail”
which travels from Singapore down to
the Island of Java. “In the past, many
of Genghis Khan’s ships have been
known to get stranded and to sink in
the islands of the Bangka-Belitung
29
region. “Let’s create something using
that?” Ramelan added.
He explained that revenues from
cruises are quite significant. The
groups of travellers usually visit many
sites in a single trip, such as Bali,
Komodo Island, even Semarang and
Probolinggo. Then they usually do a
land tour for 12-24 hours.
“With a cruise ship carrying 1,000
passengers, that produces how much
in foreign exchange? Not calculating
revenues from businesses that would
be created in connection with the
cruises. The cruise ship travellers
don’t buy cheap stuff. They’re not
backpackers,
they’re
rich
and
they’re not druggie. So, please don’t
complicate the immigration and
customs matters!”
To make concrete action, the former
Minister is working closely with the
Ministry of Tourism and Creative
Economy in the area of research, and
“We have to differentiate between MobIN &
MobNas. We don’t have a car yet that is
100 % made Indonesia.”
has even met with Deputy Minster
Sapta Nirwandar. “In 2012 we should
ensure that a minimum of 150 cruise
lines make stop-overs in Indonesia!”
Since 2011 several high-profile cruise
lines have made transit stops in
Pelabuhan Benoa (Benoa Harbor),
Bali. These ships regularly carry 1,500
passengers, which shows that there’s
great interest from visitors to come
to this country. Sadly, Indonesia isn’t
prepared for cruises yet. It’s also worth
mentioning that Indonesia has yet to
own a cruise line operator.
We don’t have a car yet that is “100
percent made Indonesia”. The engines
are still imported from China, however,
that isn’t a problem. It all depends
on the Government now,” Ramelan
said. He also thinks that nationally
produced cars must be used for public
transportation, because the central
Government is currently too liberal.
Nonetheless, Ramelan praised the
Government’s performance in the
business and investment sectors
adding that the current Trade Minister
has done very well.
On being asked about Indonesia’s
developments in technology sector,
Ramelan, who once served the
Minister of Reasearch and Technology,
urges the Indonesian Government
to welcome the technology sector
including the production of MobIN
(mobil Indonesia).
“I’m very happy with the developments
of the investment climate, M. Lutfi’s
leadership at BKPM had a lot to do
with this, because he comes from
the private sector, and now it’s Gita
Wirjawan who also serves the Trade
Minister. I think their approaches are
OK, very good indeed!” Ramelan said.
“We have to differentiate between
MobIN (cars made in Indonesia) and
MobNas (Indonesian cars). Mercedes
from Germany but some of them
are produce in Indonesia. While Tata
from India or Proton from Malaysia.
On the small and medium-sized
enterprises (SMEs) tax retribution
issue which has many people talking
lately, Ramelan has a different
perspective.
30
“Are they going to collect taxes from
warungs or wartegs (streetside kiosks
and eateries)?” If you know how much
money kaki lima (street merchants) pay
thugs for “security and cleanliness”,
that amount is more than the revenue
collected from taxes. Some of these
merchants pay Rp 2,000 per day, so just
do the math! Government authorities
could go to Glodok and tax all street
merchants.”
The Jakarta Regional Government
has recently amended tax laws for
restaurants so that taxes of 10 percent
will be collected from those earning Rp
200 million or approximately US$ 20
thousand, this includes the hawkers
of Warung Tegal (Warteg). Before the
amended law goes went into effect,
wartegs have already been categorized
as restaurants which must pay taxes
due to the existence of Regional
Law No. 8/2003 about Restaurant
Taxes. It is stated in Law No.8/2003
that restaurants with less than
Rp 30 million per year are exempt from
paying taxes.
“Ties with Germany in the industry sector need
to be focused on developing foreign investment in
German industry.”
Good Relations with Germany
Ramelan’s ties with Germany has quite
a history. Both of his sons were born
there. Bastian, the eldest, was born in
Stade, while Kunti, the youngest, was
born in Buxtehude. “My wife received
her specialization in Anaesthesiology
in Hamburg.”
Ramelan himself began his career in
Germany, specifically at Hamburger
Flugzeugbau GmBh (FB) or now known
as Hamburg Messerschmitt- BoelkowBlohm GmBH (MBB).
“I worked with Airbus for five years.
During the time, along with other
Indonesian scholars studying in
Germany, Bapak Habibie included,
we all agreed that we’d return to our
homeland if they’d want us back, for
any reason whatsoever.”
Many not knows that Ramelan also
help designed the first Airbus 300
aircraft, the prototype which was
released in 1970. Upon returning to
Indonesia in 1974, Ramelan founded
Advance Technology and Teknology
Penerbangan (ATTO), and together
with MBB worked on a helicopter
project. Then he took the office of
Deputi Chairman of the Industrial
Sector. He was involved in many
partnerships with several industry
and education institutions in German,
among them establishing PT Pindad
(company manufacturing artillery for
the Republic of Indonesia) with Fritz
Werner.
“Perhaps that was the reason the
German Government awarded me a
medal of honor,” Ramlan said. In 1984,
the Federal Government of Germany
honored him with the Grosses
Verdienstkreuz (KOMTUR) award.
When asked about the state of
bilateral relations between Indonesia
and Germany he said that in the
past collaboration was much more
intensive. “In my mind, the ties with
Germany in the industry sector need
to be focused on developing foreign
investment in German industry,
of course, with the shipping line
operators which operate on a local or
regional scale, such as Hapag Lloyd.”
31
Biography
• Director & Deputy Chairman
BPPT ( The Agency for the
Assessment and Application of
Technology (1978-1993))
• Vice Chairman Bappenas
(The National Development
Planning Agency)
• Minister of Research and
Technology (1998)
• Minister of Industry and Trade
(1998-1999)
• Professor, Faculty of
Technology & Industry at
Sepuluh November Institute of
Technology (1997-present)
• Visiting Scholar at Center
for Technology, Policy and
Industrial DevelopmentMassachusetts Institute of
Technology/ CTPID-MIT (20002002)
@ SAMPOERNA FOUNDATION
Many Indonesian business tycoons have graced
Forbes richest people list. Putera Sampoerna,
ranked 9th with a net worth of US$ 2,4 billion
(November 2011), often gets mentioned in
discussions about this elite group.
EKONID SERIES
P rominent E ntrepreneur
P utera S ampoerna :
From Cigarette TO
Social
Business
BY DENNIS LISCHER & MARIA GRACIAS
Since day one you have been carrying
the Sampoerna name. How has your upbringing inspired your success and your
desire to give back?
My parents imbued in me the foundation
of the value systems that I adhere to today.
They were also strong believers that their
children should be well-schooled and well
-travelled as part of their development and
learning experience. They also taught us to
“become the best that you can be in your
chosen field or profession”.
Personally, I like to make things grow and
beat the odds. To me, a glass can never be
half empty, it’s always got to be half full.
Lastly, Indonesia has been very good to me
and my family. I have been blessed with good
fortune and I believe that within our own
individual capacities, we should all strive
to leave this world a better place than that
which we were born into.
Do you feel any burden to maintain or pass
on the family legacy that has been alive for
decades?
No burden at all! Although we are a business
family, whether or not a person has the
disposition and/or the DNA to become a
dynamic business person is in God’s hands.
We must accept the fact that there might be
generational skips in business leadership by
family members; we must professionalize
our organization to cater for this. More
importantly, a Legacy should address the
core values of the family and the bonding
between family members. Moving forward, I
hope that the constructs put in place today
for both the commercial and social arms of
our family’s businesses will have taken root
so as to provide for their continued growth
and prosperity beyond my life-time.
Has your investment philosophy changed
since the reformation in 1997/ 98?
Other than being more bullish on Indonesia,
NO!
You started the so called socio-business,
the first of its kind in Indonesia. Can you
explain what it is exactly? (Correct me if I’m
wrong, but mathematically this wouldn’t
bring as much revenue as the cigarette
business)
Without profitable enterprise, there is no
philanthropy! The Sampoerna Group is made
up of a for-profit commercial arm and a notfor-profit social arm (PSF). Giving money
away to charities is easy, but giving time and
professional input is a commitment. A lot of
companies are doing CSR programs, but the
nature of their CSR programs is more into
one time gifts of charity. Poverty alleviation,
in my opinion, should be accomplished
through the teaching of people how to fish
rather than just throwing fish at them. With
regards to charitable versus social business
organizations both are created for the greater
good of society without a personal profit
motive. The difference being one of attitude
and perspective. A social business does
not see itself as a “charitable” organization
EKONID SERIES
P rominent E ntrepreneur
“Education is the cornerstone to a foundation
for the creation of a dynamic, peaceful, and
prosperous country and society.”
which is totally
dependent on
donations for
its existence.
It looks at
all
of
its
activities as
any business
would with sustainability, professionalism (non-volunteer) and revenue growth
over the long term as its primary goal,
it also does not preclude itself from
carrying out “for profit” activities for the
greater good. In fact, social businesses
should explore profitable income
generating activities to further support
and expand the social initiatives they
have undertaken.
So what is the idea behind the Putera
Sampoerna Foundation?
Indonesia needs all of its stakeholders
to participate, not just its government
or NGOs. Education and Job Creation
are the cornerstones to a foundation
for the creation of a dynamic, peaceful,
and prosperous country and society.
As such, we should call on Industry
Leaders, NGOs, and Government to
remain committed to investing in the
eradication of poverty through the
education and employment of our young
people. The business community must
be encouraged and “incentivized” to do
more to close the gaps of inequality,
which only deepen existing divides
between countries and people; NGOs,
must expand their role in developing
civil society; and The Government
should remain committed in investing
in the eradication of poverty through
education, women’s empowerment
and the employment of our youth. It
must also remain ever vigilant and
committed to developing policies to
remove obstacles that keep young
people from becoming the active and
productive citizens they can be. They,
after all, remain our greatest hope for
the future.
There are four pillars of SF, mainly
education, women empowerment,
entrepreneurship, and disaster relief.
But why are you focusing education?
Education is the cornerstone to a
foundation for the creation of a dynamic,
peaceful, and prosperous country and
society. We must also remain ever
vigilant in ensuring that we sustain a
resilient and secular democracy. From
a county’s perspective then, there
are four reasons why education is the
number one priority for PSF. First of all,
education is imperative to developing
the human capital-in all fieldsneeded for the long term societal and
economic well-being of this country in
a competitive world. Indonesia’s large
population base is no doubt an asset,
but there is still a lot that we have to
improve. While the world is facing a
shift in the balance of power between
countries, I am confident in Indonesia’s
short term ability to keep growing its
GDP. However, looking into the longer
term future and as disposable income
continues to rise, then, unless we now
make the necessary investment in
improving that capacity and quality of
our education system, I fear that we
will not be able to socially establish
the enlightened citizenry needed to
increase our living standards nor
economically the needed intellectual
and
technological
competencies
required for us to move up to the next
rung of the economic development
ladder.
Second, some modern theories of
political economy consider a large
middle class to be a beneficial,
stabilizing influence on society because
it has neither the possibly explosive
revolutionary tendencies of the lower
class not the absolutist tendencies of
an entrenched upper class. People,
however, are judged to be middle
class of otherwise more by their level
of education, the physical condition
in which they are work, and/ or their
consumption habits rather than by their
relationship to the means of production.
Third, our national journeys in
Indonesia should look to the experience
34
of the U.S: it was an access to education
that propelled the country into a more
egalitarian and prosperous society. The
role of grants, loans, and scholarships
with Federal, State and private support
made meritocratic access to education
a reality and gave America the creative
and intellectual depth to whether the
challenges of the modern world. Lastly
as the citizen of the world and of this
diverse nation, we all share a common
goal which is to bridge cultural divides.
In order to do this we need quality
leaders who are able to empathize
with t heir peers within the country and
across the ocean, those who are able to
reach consensus through compromise.
It says that the foundation focuses on
growing Indonesian entrepreneurship
and employment by providing physical
and online facilities that enable
entrepreneurs and angel investors
connect, network and grow business
ideas and enterprises. Sampoerna’s
involvement
in
micro-financing
business, is that some other way on
giving something back to the people
of Indonesia, or is that just a purely
business?
A disenfranchised segment of society
that feels let down by the system, and
that is hopelessly resigned to the fact
that their quality of life will not improve,
is the root cause to “Social Disharmony”.
The fact that small businesses are
by far the biggest generator of jobs in
any economy is now widely accepted
to be true, especially in the so called
developing world where the informal
sector plays a relatively bigger role
in the economies of these countries.
However, where poverty alleviation for
the individual is addressed by micro
financing, job creation towards a
country’s economic growth and wellbeing is not. To address the challenges
we face in providing enough jobs to
absorb the explosion of young people
entering our job market annually, we
must, in my opinion, take on initiatives
which promote the creation of
entrepreneurial businesses by people
“Young people, after all, remain our
greatest hope for the future.”
from all economic classes including
those who hail from a less educated
and rural environment.
To answer your question, our Micro
Finance business is a business unit
within our commercial (banking) arm.
However it also has a minority stake
in the micro finance operations of the
Sahabat Wanita Cooperative which
services its women members. We
provide the cooperative with credibility,
systems, oversight, and management
protocols.
What is “Sahabat Wanita” ?
Sahabat Wanita covers our women’s
empowerments programs in both urban
and rural areas. In addition to providing
women business opportunities and
access to micro-finance capital, we
provide for capacity building through a
series of training programs.
Bound
by
culture,
financially
restrained, lack of education. How
Indonesian women can contribute to
the national economy?
Maintaining a resilient and secular
democracy is somehow dependent on
its women having a say. Empowered
communities, through their women,
create empowered families. Empowered families are the bedrock to an
empowered nation.
What is the best advice you have
received about philanthropy that you
can share?
Where do you see the Putera
Sampoerna Foundation a decade from
now?
I believe that within our own individual
capacities, we should all strive to leave
this world a better place than that
which we were born in. If you do not
have the luxury to commit resources
to establish a social business, then you
should still dedicate some of your time
to look into NGO programs worldwide
and find those which you would like
to personally participate in. You will
derive greater satisfaction if you could
tangibly track what good has come out
of your personal contribution – whether
it is in the form of your time and/or
money.I invite you to look at the various
initiatives that PSF has undertaken
and would whole-heartedly welcome
your participation. We can use all the
support we can get!
I would like to think that we are
making a positive contribution to the
economic and societal development of
this country. In ten years, with several
rounds of MBA scholars graduating
out of our foundation’s educational
eco-system under our belt, we should
know whether or not we are on the right
track.
Just recently you received the Peace
through Commerce Medal Award from
the U.S Department of Commerce’s
International Trade Administration.
How does this affect you?
There is no doubt that it’s always nice to
be recognized for your work. Other than
that, it does nothing to change what I
do nor does it divert the direction that I
have decided to take.
35
How we move forward from there will
be dependent on how successful we are
in the level of sustained support and
participation we are able to get from
the government, the general public,
and corporate.
In any case, what I would like to
see, is: Increased enrolment in our
academies; An established University
with a curriculum tailored for the 21st
Century; Mekar’s online P2P Exchange,
which would match entrepreneurs
to available angel funding, to be fully
operational; Sahabat Wanita programs
well developed and membership
recruitment well on its way.
HIGHLIGHTS
GERMANY-INDONESIA
News in Brief
At the University of Passau a public
lecture was attended by numerous
students and lecturers commemorating
the 60th Anniversary of GermanIndonesia
relations.
Indonesian
Ambassador for the Federal Republic
of Germany, Dr. Eddy Pratomo led the
event, which was organized by DeutschIndonesische
Studierendenintiative
(DIS). Also seen among the attendants
was Prof. Dr. Bernhard Dahm, a senior
professor of Südostasienkunde. On
this occasion, Ambassador Pratomo
also gave a brief speech on Indonesia’s
current economy and achievements in
the field of politics and education.
@ EUROCHAM
Indonesian Trade
Minister Meets with IBC
Members
Indonesian Minister of Trade Gita
Wirjawan held a breakfast meeting
with the members of the International
Business Chambers (IBC) at the Hotel
Intercontinental Jakarta, just recently.
Heads of Chamber of Commerce from
22 members of IBC such as Amcham,
Britcham, Ekonid, Eurocham, IABC,
ICCCC, INA, Kocham, IndonesiaPhilipine Business Council, Malaysia
Club, Singapore Chamber of Commerce,
Swiss Business Forum, IndonesiaTaiwan Chamber of Commerce and
the Chairman of IBC, Peter Fanning
participated in the meeting which was
facilitated by IBC.
Minister of Trade
Promotes Potential Trade
and Investment in Indonesia for
German Investors
is one of Indonesia’s important trade and investment
partners”, said the Indonesian Minister of Trade Gita
Wirjawan in opening the Business Meeting between Indonesia and
Germany in Frankfurt, 26 January 2012. Wirjawan indicated that the
reason for this is Indonesia’s largest trade partner in Europe is Germany
and that Germany should be given credit for being able to withstand the
crisis that has hit the region.
“GERMANY
During a meeting with numbers of prominent German business leaders,
Wirjawan also explained the development of Indonesia’s economy,
and promoted Indonesia as a potential investment haven. ”Indonesia
currently is one of the most attractive investment havens in the world, as
proven by the increasing investments here, based on Fitch and Moody’s
rating, the world’s two reputable rating institutions,” he said adding
that the stable growth of the economy, with a population dominated by
the younger generation and an increasing number of the middle class,
have made Indonesia even more attractive and competitive among its
peer countries.
The Minister of Trade RI with the officials from the Ministry met with
representatives of the Federal Government of Germany and entered
into a dialogue with the German business sector attending this meeting
who were interested in expanding business and investment in Indonesia
such as Daimler AG, ProCone GmbH, E. ON Carbon Sourcing GmbH and
Bombardier Transportation. An interesting and note-worthy point from
this meeting is that the German Ministry of Economy fully supports and
encourages the German businesses to invest in Indonesia, as now is the
most appropriate time to invest here. This was also endorsed by several
large companies that are already running businesses in Indonesia.
The working lunch, that was followed by a one-on-one meeting between
the Indonesian Minister of Trade and the German businesses from
the sectors of renewable energy, retail and consumer products, was
productive and constructive. At the end of the meeting, the business
delegations from both countries agreed to further maintain contact with
each other to follow up on the trade and investment exchange between
the two countries.
36
@ ARCHIVE
Celebrating 60 Years of
German-Indonesian Relations
at University of Passau
HIGHLIGHTS
kadin
6.2 – 6.4 percent
@ IWAN NASUTION
growth in 2012
KADIN Indonesia outlook 2012
of Indonesian industry
associations
have
signed a memorandum of understanding
with the European Union in a bid to build
closer ties between Southeast Asia’s
largest economy and the continent
currently stuck in the economic
doldrums. The MoU signing brought
together eight industry associations
in fields as diverse as footwear,
fisheries and pharmaceuticals to sign
a memorandum of understanding
that pledged cooperation with their
European counterparts.
A GROUP
“We can use this event as momentum
to prepare Indonesian industries as
European markets are recovering,”
Maxi
Gunawan,
the
chairman
of KADIN’s standing committee
for
international
organizations
cooperation, said after the signing.
The Indonesian parties that signed the
memorandum included the Association
of Indonesian Automotive Industries
(Gaikindo), the Indonesian Food and
Beverages Association (Gapmmi) and
the Indonesian Automotive Parts and
Components Industries Association
(Giamm),
Footwear
Association
(Aprisindo), the Indonesian Textile
Association (API), the Indonesian
Pharmaceutical
Association
(GP
Farmasi), the Indonesian Fishery
Processing and Marketing Association
(AP5I) and the Indonesian Herbs and
Traditional Medicine Association (GP
Jamu).
Representatives from Europe included
the German-Indonesian Chamber
of Industry and Commerce (Ekonid),
the Indonesian French Chamber
of Commerce and Industry (IFCCI),
the British Chamber of Commerce
and EuroChambres.
On his part,
Julian Wilson, the European Union
ambassador to Indonesia, said
Indonesia and Europe had a strong
partnership already and could make
it even stronger. “We are Indonesia’s
second-largest market,” he said. “That
is already a great success story, but it
could be a lot better.”
“Terrible irony”
Meanwhile, KADIN Chairman, Susilo
Bambang Sulisto, projects 6.2 – 6.4
percent growth of economy this year
saying that 2012 begin with “terrible
irony” for Indonesia. “Although there
is a sign that US economy is recovered,
the result is very slow. Moreover,
growth and trade is also anticipated to
decreased,” he said.
Speaking in front representatives
of foreign chambers and numerous
Indonesian entrepreneurs during the
KADIN Indonesia Outlook 2012 event
(signing MoU) in JW Marriot Hotel,
Jakarta on 2 February 2012, and
Sulisto addressed major challenges
37
that significantly impacting business
and investment climate in Indonesia,
such as corruption, bureaucracy,
under employment and labor issue,
infrastructure, and poverty. He said
that it is very important for Indonesia
to compete with other countries with
cheaper labor to produce better quality
of product. “Land acquisition remains
problem too,” Sulisto added.
In regards of infrastructure, Sulisto
said that KADIN urges the government
to use income for infrastructure
projects after cutting fuel subsidies
which is planned to take into effect
on April 2012. He also stressed the
importance of lowering interest rates
adding that minimum investment
requirements for foreign company
could have bring negative impact for
foreign direct investment.
“We have lobbying the government and
banks to lowered interests rate last
year, it works though. But somehow it
still relatively high compare to other
countries.”
However, KADIN still show some
optimism thanks to Indonesia’s
consumer confidence as the highest
of any country. Indonesia, like
many emerging Asia economies, is
experiencing rapid rise of the middle
class.
@ IWAN NASUTION
60th anniversary commemoration of APINDO
MoU Signing
between EKONID and APINDO
a more conducive business climate and
the development of international trade and
investment, the German-Indonesian Chamber of Industry
and Commerce (EKONID) and the Indonesian Employer’s
Association (APINDO) signed an memorandum of
understanding 2012 at the 60th anniversary commemoration
of APINDO. The MoU signing procedures involved Chairman
of APINDO, Sofyan Wanandi and Jan Rönnfeld Managing
Director of EKONID, and Coordinating Economic Minister
Hatta Rajasa and German Ambassador H.E. Norbert Baas.
TO PROMOTE
Besides emphasizing the importance of a conducive
business and investment climate, the agreement also aims
to promote mutual trade and investment relations between
Indonesia and Germany, provide input to the respective
governments on a number of issues related to trade and
investment policies, and to encourage cooperation and
exchange of business information between the private
sectors of each country. Also signed the MoU, other foreign
trade representatives in Indonesia including EuroCham,
AmCham, INA, KoCham, JJC, BritCham, IABC.
Former Vice-President of the Republic of Indonesia Jusuf
Kalla, State-owned Enterprises Minister Dahlan Iskan,
and Manpower and Transmigration Minister Muhaimim
Iskandar were also among the attendees. Also seen Vice
Governor of West Java, Dede Yusuf.
On being asked about the rise in the number of labor union
strikes, Hatta Rajasa, Minister of Economic Affairs prefers a
solution through dialog that would satisfy all parties.
“I’m confident that if we have the right attitude a solution
can be found. If the issues are handled with these methods,
[demonstrations] eventually, unfavorable conditions will
arise. I know it can be done, we have the right attitude,”said
Rajasa.
During the event, APINDO also reaffirmed its commitment to
contribute to the nation’s growth and to realize the success
of the Acceleration and Expansion of Indonesia’s Economic
Development (MP3EI) program 2012-2025 devised by the
Coordinating Ministry for Economic Affairs, set to become
the new locomotive of the nation’s economic development.
“Through this cooperation, we intend to contribute to the
nation’s growth hand-in-hand. Therefore, please do not
place us in competition with our Government’s institutions,”
said Chairman of APINDO, Sofjan Wanadi.
38
HIGHLIGHTS
A P I N D O
1 & 2. Former Indonesian Vice President Jusuf Kalla and Indonesian
Coordinating Economic Minister, Hatta Rajasa.
3.
State-Owned (BUMN) Minister, Dahlan Iskandar, The Director of
the National State, Oil & Gas State Company PERTAMINA, Karen
Agustiawan, and Chairman and Founder of Sigma Sembada
Group, Chris Kanter.
4. After the MoU signing between Apindo & Bank Negara
Indonesia Tbk (BNI), PERTAMINA and the State Electricity
Company of PLN.
5.
After the MoU signing between APINDO, EKONID & Eurochamber.
6.
Coordinating Economic Minister, Hatta Radjasa during his
opening speech.
2
@ IWAN NASUTION
60th Anniversary APINDO
1
3
4
5
39
6
EKONID NEWS
Human
Capital Club
Capital Club (HCC) working group met again at the
EKONID conference room on February 22, 2012
to allow members (and non –members) to exchange experiences and
discuss recent challenges in the human resource field. HR expert Endang
Langheck presented an insightful presentation entitled “Leveraging
Performance of HR Management Unit to Support Organization’s
Productivity. The HCC meets every two months and features an expert
speaker with timely subjects.
THE HUMAN
Members of the Human Capital Club. HCC meets every
two months featuring expert speakers on HR topics.
@ IWAN NASUTION
H U M A N C A P I TA L C L U B
EKONID NEWS
European Business Partner
and New Year’s Reception
@ IWAN NASUTION
EUROPEAN BUSINESS PARTNER
the New Year’s atmosphere still lingering, Jakarta’s
businesses were already preparing to solidify their
foundations for yet another successful year of activities. In support of
these activities, EKONID organized the European Business Partner
event, held concurrently with its New Year’s Reception, at the Ballroom
InterContinental MidPlaza Jakarta. A number of dignitaries were present
at the event, including Ms. Heidrun Tempel, Deputy Chief of Mission
German Embassy Jakarta, First Secretary Tomasz Pietka and Head of
Commercial Department, Romuald Morawski of the Embassy of the
Republic of Poland.
WITH
European Trade Representatives during the European
Business Partner event at InterContinental MidPlaza Jakarta.
41
EKONID NEWS
G E T
TO G E T H E R
@ IWAN NASUTION
Get Together
February
with exhibition Batik “Living Heritage”, EKONID
hosted the monthly “Get Together” at Galeri
Nasional, Jakarta on 7 February 2012. Aside from being another great
evening of networking, the event also welcomed participants to enjoy a
batik exhibition displaying the work of numerous artists including Avip
Sukur and Iwan Tirta. Among the attendees were President Director of
PT Siemens Indonesia and a member of the Board of EKONID, HansPeter Haesslein, as well as EKONID Chairman, Ari Soemarno.
IN CONJUCTION
42
@ IWAN NASUTION
Get Together
March
Get Together event was held at Bacchus,
InterContinental MidPlaza Jakarta Hotel. Followed by
nearly 100 participants, members and non-members, enjoyed the very
amicable atmosphere of the gathering which included free flows of fine
wines and superb Italian dishes.
MARCH’S
43
EKONID NEWS
PA R T N E R
@ IWAN NASUTION
P R E M I U M
Mercedes-Benz Indonesia:
Latest Models for 2012
A new record for sales of cars in Indonesia has been set by
Mercedes-Benz Indonesia in 2011, at 890,569 units, up by 19
percent compared to 2010.
developments are observed via retail
sales for both passenger vehicles and
commercial buses and trucks. In the year 2011, an increase of
16 percent or equal to 5,331 units was recorded compared to
the year 2010, where the figure was 4,594 units. The greatest
achievement lies in the sale of Mercedes-Benz commercial
vehicles which achieved a growth of 38 percent . This comes
in part due to developments in the mining industry in the
country; hence the demand for large trucks is increasing. In
the Premium vehicles segment, vehicle sales are dominated
by vehicles using CGI (Charged Gasoline Injection) which
gives them the capability to produce more power yet be 10
percent more fuel efficient when compared to a normal
engine featuring an eco-friendly technology concept. Since its
introduction in early 2011, CGI-tech vehicles have been able to
dominate Mercedes-Benz car sales (1,702 units) compared to
sales recorded by non-CGI vehicles. And in 2011 there was an
increase of up to 69 percent (2,483 units), controlling almost
half of the total premium vehicle segment in Indonesia (2011:
6,105 units).
THESE POSITIVE
Mercedes-Benz C63 Coupe, SLS 63 AMG Roadster and other
models.
To reaffirm its determination for and confidence in the
automotive industry in Indonesia, in 2012 Mercedes-Benz
introduced two new variants of vehicles, the SLS 63 AMG
Roadster (voted Best Cabriolet by Auto Motor und Sport,
Germany) and the C 63 AMG Coupe. Both new series of highperformance vehicles have performed well in early 2012, a
sign for perhaps even better prospects than last year.
The C 63 AMG Coupe will be an addition to the successful
family of C-Class AMG vehicles including sedan and estate
models. The C 63 AMG boasts a high-speed AMG 6.3-liter V8
engine and is capable of generating maximum power of 336
kW (457 hp) and peak torque of 600 Nm to achieve its highest
performance: 0-100 km/h in just over 4.5 seconds. The latest
super sports model, Gullwing, will certainly lure automotive
enthusiasts in the country. Its perfect blend of exotic style with
its roof-less design, dynamic steering system, light vehicle
construction, as well as being lightweight and environmentally
friendly, equipped with a EURO 5 standard engine.
Moreover, Mercedes-Benz Indonesia is ready to spark the
automotive market with the introduction of its latest models:
Sports car SL-Class and SLK 55 AMG, premium SUV M-Class
(The Best Off Road Vehicle - Auto Motor und Sport, Germany )
and also the premium B-Class MPV.
With a predicted growth of 3-5 percent in the automotive
industry in this country, Mercedes-Benz believes total sales
in Indonesia will reach nearly one million units this year, and
Mercedes-Benz is confident it will be part of that growth.
44
EKONID NEWS
PA R T N E R
@ IWAN NASUTION
P R E M I U M
Welcome new Premium Partner:
EKONID’s Jan Rönnfeld and General Manager
Indonesia-Deutsche Lufthansa AG Leandro
Tonidandel during agreement signing procedures.
Lufthansa
and EKONID announced the signing of an
agreement on premium partnerships
that will help both companies extend
services to customers, clients and
members. The new partnership reflects
how Lufthansa and EKONID will
collaborate and support each other to
help.
LUFTHANSA
Commenting on the agreement,
Leandro Tonidandel, General Manager
Indonesia-Deutsche Lufthansa AG
said that Lufthansa considers local
partnership as an important factor
to keep up with current Indonesian
economical developments.
“The
active
German
corporate
community as well as all Indonesian
companies affiliated to EKONID
will definitely support our market
penetration. On top, all EKONID
affiliates have now the opportunity
to enjoy Lufthansa Corporate Tools
and experience our products from
Indonesia.”
Underlining the benefits of the
partnership, Jan Rönnfeld, Managing
Director of EKONID said that he is
optimistic with the new cooperation,
stating that what they have now is just
the beginning of a lot more cooperation
between the two companies.
“Basically we are happy to engage
with Lufthansa in a more intensified
cooperation, also for the benefits of our
members,” said Rönnfeld.
Starting now, all EKONID members
are eligible for discounts on tickets and
to enjoy special membership perks.
To receive the maximum discounts,
EKONID members should book their
tickets through www.lufthansa.com with
a special login code.
Lufthansa supports Oil & Energy
Industry
For over four decades in Indonesia,
Lufthansa has embraced leading market
opportunities to create outstanding
services and unique products within a
global network. Thus, as an attempt
of accommodating the needs of its
customers, Lufthansa has developed the
Oil & Energy Club.
Indonesia as a major oil and energy
country, has become growing a partner
with Lufthansa by understanding the
emerging market and generating
innovative and diverse plans.
Employees of oil and energy related
companies who make frequent trips to
oil and energy destinations are granted
with exclusive benefits as members of
the Lufthansa Oil & Energy Club. This
membership gives automatic status
of Miles & More. The ownership of
such status provides relaxed and more
rewarding business travels. Belonging
to the elite community of frequent flyers,
the status allows the members to earn
mileage points with unique courtesies,
for instance free flights, class upgrade
and exceptional merchandise from
Lufthansa WorldShop. Special rental
car rates at Europcar, waiting list priority
and unlimited validity of accrued miles
are some of the distinctive benefits from
the Oil & Energy Club.
Reaching over 50 oil and energy
destinations worldwide, Lufthansa
challenges itself in seizing new
opportunities and flying its passengers
to important oil and energy locations all
over the world.
45
EKONID NEWS
M E M B E R
N E W S
TNT Express
facilitates road shipping
between China and Southeast Asia
makes it easier for
customers to ship
products by road between China and
countries within the Southeast Asia
region. After one year of testing, of its
Chinese day-definite domestic road
network (operated by TNT Hoau) with
its international Asia Road Network
(ARN), thus creating the only scheduled
pan Asia day-definite road network
(China, Vietnam, Cambodia, Laos,
Thailand, Malaysia, Singapore). This
road network will provide customers
in and with door-to-door import and
export road freight solutions.
TNT EXPRESS
“TNT Express is a recognized expert
in day-definite road deliveries,” said
Marie-Christine Lombard, CEO of TNT
Express. “With the integration of TNT’s
two major road networks in Asia, we
will strengthen our position in this
market, whilst providing our customers
with a cost-effective delivery solution
complementary to air freight delivery.”
With the new service, a company based
in Shanghai can ship its products to
Southeast Asia using TNT Hoau’s DayDefinite network. The goods will first
arrive in Guangzhou, in the Chinese
Guangdong province, within two
days and in Pingxiang, on the border
with Vietnam, the next day. Upon
completion of customs formalities, the
shipment will arrive the same night.
Ivan Siew, Director of TNT Express
Indonesia said, “The integration of
road service between China and
Southeast Asia further showcases
our commitment to engineered an
unrivalled road network that offers
our customers a combination of
cost efficiency, speed, security, and
reliability. For the Indonesian market
itself, this integration will provide
facilities for all our customers who do
business with partners in China and
Southeast Asia.”
Created in 2005, TNT Express’ Asia
Road Network (ARN) now spans over
seven countries, including China.
Cikarang Dry Port
Open House
request from communities, Cikarang Dry
Port conducts open house on 19 and 26
January 2012 at Cikarang Dry Port main office at Cikarang.
In coordination with APJP (Association of Priority Lane
Company), Shipper-Consignees and logistics providers came
together to get a first-hand glimpse at the facilities for their
future activities. New shipping Lines also joined the event as
part of preparations to open services to Cikarang Dry Port.
FOLLOWING
Cikarang Dry Port presented progress development and
operational activities and took attendees through a short tour
of the facilities including the terminal, railway emplacement,
empty container depot, and progress development of new
access from highway to Cikarang Dry Port.
the manufacturing zone which is surrounded by more than
2,500 industrial companies. CDP features Integrated Port
and Logistics Facilities development with the entire facility
covering an area of 200 hectares of land. Registered with
port code IDJBK, Cikarang Dry Port is now already connected
to other ports of call around the world via partner Shipping
Lines.
Further information on Cikarang Dry Port can be found at
www.cikarangdryport.com
Cikarang Dry Port is the first inland port in the east corridor
of Greater Jakarta, Indonesia. It is strategically located in
46
EKONID NEWS
M E M B E R
N E W S
PT. Garuda Mataram Motor (GMM) :
Audi Sales Exceed
Target in 2011
@ IWAN NASUTION
after-sales service
support and professionalism in its dealer network,
including after-sales service,
spare parts and customer care has
managed to increase Audi’s 2011
sales to become double compared
to 2010 figures. Almost all Audi
models recorded positive sales
figures: Audi A4 up by 42 percent,
Audi Q5 22 percent, Audi A6 21 percent, and the remaining
models Audi A5, A8,Q7, as well as sports models Audi TT and
Audi R8 V10 up by 15 percent respectively.
(334 units) seems within reach, as consumers are showning
increasing trust toward the Audi brand, Audi vehicles and its
service.
“Our consumers in Indonesia have great appreciation for
Audi’s top-of-the-line products and we’re proud of the positive
sales trend in 2011” Andrew Nasuri, CEO PT. Garuda Mataram
Motor said.
Among the luxurious goodies that come with the new Audi
Q3 is a climate control system with automatic comfort air
conditioning, 8-positions electronic seat adjustment, and a
10-speaker audio system. The new Audi Q3 is targeted at highprofile and modern individuals, who prefer the SUV driving
style an don’t mind the added personal touch Audi models
are known for. In addition, Audi guarantees free service and
extended warranty for a period of three years or 90.000 km to
owners of this latest Audi model.
AUDI’S
Audi continues to put priority on providing the best aftersales service as part of its long-term vision for its investment
in the country’s automotive industry, while at the same time
pampering consumers with the latest Audi models. The
car maker’s target in 2012 to increase sales by 80 percent
47
The New AUDI Q3
Audi kicks-off the year 2012 by introducing the new Audi Q3,
a new variant of Audi models and thus adding to its existing
range in Indonesia. With the new Audi Q3 being an addition to
the Premium Sports Utility Vehicle (SUV) category, the model
comes with a more compact, sporty, efficient and multifunction design. The new Audi Q3’s tailgate and engine hood is
made of ultra-light aluminium allowing for a more power and
fuel-effciency and featuring more dynamic system suspense.
EKONID NEWS
M E M B E R
P R O F I L E
BMW Group Indonesia :
Positive growth spurs
Increasing investment with introduction of latest models
of BMW and MINI vehicles,
which totaled 1,551 units
and 37 units respectively have made
2011 another successful year for the
BMW Group Indonesia. Significant
growth has been recorded in terms
of volume which reached 25 percent,
thereby continuing the positive trend
in sales of the BMW brand recorded in
previous years. Increases in 2009 and
2010 were at 25 percent and 37 percent
respectively.
SALES
“We are very pleased with our customer
response. They were so enthusiastic
about the cars that we presented last
year. Besides the advantage of our
cars’ features, our strong brand, and
marketing activities, the commitment
of our dealer partners and professional
staff have also contributed to the boost
in sales,” said Ramesh Divyananthan,
President of BMW Group Indonesia.
Indonesia is the 8th country in the world to
produce BMW 5 Series.
Expansion of new production with an
investment of 100 billion yen, or 8 million
Euros to introduce the MINI brand and
assembly have been announced since
last May 2011.
MINI has begun to show positive sales
figures and BMW has also initiated the
launch and assembly of the BMW X1 and
5 Series. The BMW car assembly plant
located in the production premises of
@ IWAN NASUTION
@ IWAN NASUTION
PT Gaya Motor is a business unit of PT.
Astra International, a partner of the
BMW Group Indonesia. BMW 5 Series
is a premium mid-sized sedan with the
highest sales in the world.
Indonesia is now the eighth country in
the world to produce this series, while
based on the series, this is the third
series being assembled by at PT. Gaya
Motor, Sunter. Previous models were
the BMW 3 Series and the X1. The
investment includes the modernization
of assembly line facilitation, including
the installation of new equipment and
supplies, recruitment and staff training.
Sales growth in 2011 are based on the
high demand for the BMW X1, 5 Series
and X3. BMW X1 recorded a growth of
up to 124 percent with total sales at 218
units, BMW 5 series with a growth of 30
percent with total sales at 429 units. The
new BMW X3 was launched in May 2011
and recorded sales of 113 units, and
even the BMW 3 series was reaping the
rewards of growth 3 percent with a total
of 544 units.
BMW Diesel Advanced also recorded
a positive trend in sales last year,
contributing as much as 10 percent.
BMW Group remains committed to
contribute to the increase in economic
value,
employment
opportunities,
technological expertise, and production
capabilities for Indonesia by making
plans to double production by 2012.
Assembly at Gaya Motor is planned to
experience an increase in units produced
by 8 units per day in 2012 compared to 4
units in 2011 for the three different car
models.
BMW and MINI 2012
In addition to increased marketing
activities, the BMW Group introduced
nine new models, three BMW engine
variants, four new models and four
special editions for the MINI. The new
models include: BMW 520i, BMW 528i,
BMW 535i, BMW 520d Advanced Diesel
technology, the BMW X1 sDrive18i
Business, BMW Z4 and the BMW Z4
sDrive35i sDrive201.
The BMW 520i and 528i are two variants
that are assembled in the country,
which carries a four-cylinder gasoline
engine with a capacity of 2 liters of the
latest generation of TwinPower Turbo
technology, combining turbochanger
TwinScroll with Valvetronic, Double-
49
“A local automotive
assembly manufacture,
PT Gaya Motor, has
been produced two
BMW models. In the
near future it’ll also
assembly the 5 Series.”
VANOS, and High Precision Injection.
While for the MINI new models are
expected to arrive that are designed to
support the lifestyle of MINI enthusiasts
in Indonesia, such as MINI Countryman,
MINI Coupe, MINI Countryman John
Cooper Works.
EKONID NEWS
new member & calendar
New Member
KAP SIDDHARTA & WIDJAJA
Mr. Dirk Koehnlein
Technical Advisor
Wisma GKBI 33rd Floor
Jl. Jend. Sudirman 28
Jakarta 10210
Phone : +62-021-5742333
Fax : +62-021-5741777
Email : [email protected]
Activity : Audit Services
ASIAN LEADERSHIP CENTER, PT
Mr. Michael Weichert
Director
Menara Standard Chartered Lt.30
Jl. Prof. Dr. Satrio 164
Jakarta 12930
Phone : Fax : Email :[email protected]
Activity :Leadership Education,
Executive Coaching Change
Management, Organizational
Effectiveness
MITRA ATLANTIC NUSANTARA, PT
Ms. Novita C. Susetya
General Manager Sales & Marketing
Sentra Niaga Puri Indah
Block T1 nO. 47
Jakarta Barat 11610
Phone :+62-021-58302572
Fax
:+62-021-58302571
Email :gmsales@jkt.
atlanticforwarding.com
Activity: Freight Forwarding
PUJI LESTARI PURNAMA, PT
Ms. Luciawati
Director
Grand ITC Permata Hijau Blok
Diamond No.14
Jl. Letjen Soepeno, Arteri Permata
Hijau - Jakarta Selatan 12210
Phone :+62-021-53663350
Fax
:+62-021-53663353
Email :[email protected]
Activity :Trade and Services
SMILE INDONESIA, PT
Mr. Freedian Marpaung
CEO
Plaza Basmar 1st Floor
Jl. Mampang Prapatan 106
Jakarta 12760
Phone :+62-021-7989588
Fax
:+62-021-7989882
Activity:Rattan Furniture
(Manufacturing ), Mining
Supplies ( Distributor, Design
& Printing, Entertainment ( EO
& Artist Management )
ABIGIO ENT, PT
Mr. Dino Simanjuntak
President Director
Graha Abigio
Jl. Meiwa No. 12, Cibubur
Jakarta Timur 13720
Phone :+62-021-70553615
Fax
:+62-021-7946141
Activity: Supplier Mining & Oil Gas
Equipment and spare parts
Event Calendar
April
May
June
3
Get Together with PAJ
(Perhimpunan Alumni
Jerman)
12
Human Capital Club
4
1
Get Together
Spargelessen
5
Get Together
For more information please contact: [email protected]
16
Annual Members
Meeting
30
Foreign Minister Guido Westerwelle
visit to Jakarta
EKONID NEWS
job
market
Job Market
For this placing service we charge a handling fee in the amount of Rp. 50.000 per application profile (please name the box
number). For the successful placement of higher managementpositions companies pay a unique Fee in the amount of one
brutto monthly salary (members of EKONID), respectively 10% of the brutto annual salary (if are no member of EKONID).
Indonesians looking for works
Engineer, 30 y., M; exp. In Automobil,
machinery; Computer Literate;
Language : English, is looking for a job
in Jakarta/Semarang. I1S/03/12
Public Relation, 24 y., F.; Uni. of
Indonesia, majoring in Law; Computer
Literate; Language: English, is looking
for a job in Jabotabek. I2A/03/13
Logistic, 41 y., M.; exp. in same field,
Computer Literate; Language: English,
is looking fo a job in Jabotabek.
I3E/03/12
Analyst, 25 y., F.; exp. in banking and
finance; Computer Literate; Language:
English, is looking for a job in Jakarta/
Singapore. F1A/03/12
Architect, 34 y., M.; Uni. Bremen and
Leibniz Uni. Hannover, majoring in
architecture, 10. y. exp. In same field;
Computer : Autodesk, Adobe, MS
Office,CorelDRAW,BKI Kostenplaner;
Languages: English, German and
Chinese, is looking for a job in
Jabotabek. I4S/03/12
Secretary/Personal Assistance, 36
y., F.; STIE Jagakarsa, majoring in
marketing management, 10 y. exp.
as secretary; Computer Literate;
Language: English, is looking for a job.
F1R/03/12
Germans looking for works
EDV/IT, 30 y., M.;, exp. In same field;
Computer Literate; Languages :
English, German, is looking for a job in
Jakarta. A1/F/03/12
Logistic and Supply Chain Management, 46 y., M.; exp. In same field;
Computer Litrate; Languages: English,
German and Spanish, is looking for a
job in Indonesia. A2M/03/12
Business Development and Management, 30 y., F.; exp. In chemical,
consulting, marketing etc.; Computer
Literate; Languages: English, France,
is looking for a job in Indonesia.
A3S/03/12
Candidates can apply by our website http://www.ekonid.com and send us his
resume. For futher information please contact Mr. Iwan Nasution, Tel.: 62213154685, Fax.: 6221-3155276, E-Mail: [email protected]
Corrections & clarifications
Correction 1
We incorrectly missing a company credentials on article: Tax
Holidays in Indonesia: Enjoy!
The tagline arose from an error occurred during the prepress process. ( Vol XX/4/ 2011, page 25)
The original tagline:
Mr. Ponti Partogi, Partner, Tax & Trade Practice Group, and
Ms. Ria Muhariastuti, Associate at the Tax & Trade Practice
Group.
Hadiputranto, Hadinoto & Partners (HHP) is dedicated to
providing quality corporate and commercial legal services. It
is one of Indonesia’s major law firms, serving corporations,
banks and other financial institutions, government agencies
and state-owned companies. Further information, please
log on to http://www.hhp.co.id.
Correction 2
A sentence arose from an error occurred during the prepress process. ( Vol XX/4/ 2011, page 5)
A piece said: “ in the sector of trade and investment,
healthcare, research and technology, defense industry and
clean education.”
That was meant to be: in the sector of trade and investment,
healthcare, research and technology, defense industry and
education, as well as clean energy especially in the form of
geothermal energy.
Silke Helmholz is Head of the Department Corporate
Services at EKONID, focusing on consulting in corporate and
investment issues.
Indonesia
on IMM 2012
a successful
representation for years
P R I E TA P E R T H A N T R I / P H OTO S : K Ö L N M E S S E & A R C H I V E
IMM cologne and LivingInteriors drew to a close in Cologne with a good result.
For seven days, 1,157 companies from 54 countries showed the interior design
trends of the coming year. Including estimates for the last day of the show, the
trade fair duo lured 115,000 visitors to Cologne.
A total of 115,000 visitors came to the metropolis on the Rhine – 14 percent more
than at the last comparable event in 2010, even without LivingKitchen. With
foreign visitors accounting for 42 percent (based on the trade visitor days), the
IMM cologne was once again a very international trade fair. Firstly, there were
far more buyers from Europe, especially from the Russian Federation and Italy,
and secondly, there was a slight increase in the number of visitors from North
America and Asia.
TRADE FAIRS
I M M
second
time
the
Ministry of Industry of
the Republic Indonesia in collaboration
with Asosiasi Mebel dan Kerajinan
Rotan Indonesia (AMKRI) presented
within one single platform the best
products, designs and solutions
from the Indonesian rattan furniture
industry.
FOR THE
This unique business and presentation
platform is sponsored by the
Ministry of Industry of the Republic
of Indonesia for the second time. A
host of promotional activities and
special events is currently planned
by the Ministry of Industry of the
Republic Indonesia and AMKRI to
ensure the success of this truly
unique presentation by the Indonesian
rattan furniture industry to the global
furniture industry community.
The Indonesian Rattan Furniture
Pavilion was strategically located in
C O LO G N E
2 0 1 2
Hall 4.1 with promising products to
attract buyers, interior decoraters
and designers from all over the world.
The pavilion was done by Cityneon
as the official group organizer for
the Indonesian Rattan Furniture
Pavilion showed great art of touching
rattan decoration. Twelve leading
Indonesian furniture manufacture has
been selected from the best of the
best to present their latest and new
developments of rattan products.
Like last year, Indonesian Rattan
Furniture Pavilion appointed CRP
Consulting as the organizer for the VIP
buyer’s night on Tuesday, 17 January
2012 including all PR activities.
International buyers and media
representative were not only presented
a wide range of rattan furniture, but
they also had the opportunity to meet
the members of Ministry of Industry
of the Republic of Indonesia and the
Indonesian Ambassador to Germany.
The invitees could enjoy delicious
Indonesian dishes and a cultural
performance, namely folklore dancers
of Bali provided by the Indonesian
Embassy to Germany.
On his speech, the Indonesian
Ambassador to Germany, H.E DR.
Eddy Pratomo express his gratitude
and support the Indonesian Rattan
Furniture Pavilion, he also mentioned
that Germany is the potential market
to do business and one of the biggest
importir for furniture products, and
hoping the exhibitors would take this
opportunities to expand the market
sector in rattan industry.
In addition, Ms. Katharina C Hamma
– Chief Operating Officer Koelnmesse
GmbH expressed her gratitude to the
Indonesian Rattan Furniture Pavilion
and is looking forward to a successful
working relationship in the future.
TRADE FAIRS
I M M
C O LO G N E
2 0 1 2
The Indonesian Rattan Furniture Pavilion
showed great art of touching rattan
decoration.
But not only AMKRI and its members
presented their products on IMM,
also eleven Indonesian companies
exclusively located in Hall 2.2 known as the Asian Hall – presented
various products of indoor furniture,
for instance upholstered furniture,
office furniture, wooden furniture
and modern living furniture. “IMM
in Germany is the most important
and influent event in Europe” added
Mr, Bambang Soetrisno – Director of
Buana Inter Global.
As the first time exhibitor in IMM
Cologne, Mr. Bambang Sugiarto –
Director of Bohdeline said that the
main focus participating at IMM is to
find new buyers in Europe. Besides
Europe, he also focuses at the market
in the USA.
Unfortunately, there were not so many
visitors as usually at the Indonesian
stands:
“This year is not that profitable when
it comes to the number of buyers and
also the potential transaction” said
Mr. Wika Tandean – Director from
Wickercane. Mrs. Joanne – Director
from PT. Kernel Indonesia Potential
added that the impact of the crisis
affected the total number of potential
buyers.
The economic turmoil is the top issue
for Indonesian exhibitors and it is not
easy for them to participate during
the crisis. It will be needed to analyze,
predict and plan the strategy to survive
in this difficult situation. Nevertheless,
it does not influence their will to
participate in any exhibition in Europe,
especially IMM Cologne.
The next IMM will be held on 14 –
20 January 2013, please mark this
date and sign up early to safe your
place at IMM Cologne 2013. For
registration please contact Mrs. Prieta:
[email protected]
Representative Meeting
The representative meeting is a fixed
meeting at the annual agenda of
Koelnmesse, normally held one day
before the IMM opens. The meeting is
also attended by the project manager
of related events and the CEO of
Koelnmesse GmbH. Presentations
and reports of some major events of
koelnmesse are held by the project
managers.
Koelnmesse
appreciates
the
performance
result
of
foreign
representative by handing over an
award. The award is divided into three
groups:
1. AV 1 : foreign representative with an
average occupied net area per year
is greater than 3,000 sqm
2. AV 2 : foreign representative with an
average occupied net area per year
off 1,000 – 3,000 sqm
3. TG : foreign subsidiaries
The evaluation criteria will be provided
as follows:
1. Sqm development to the previous
year
2. Total
number
of
exhibitor
development to the previous year
3. Total number of visitor development
to the previous year
4. Personal interview on account of
quality component
Indonesia and Vietnam are the only
representatives from Southeast Asian
in Group AV 2, the others are mostly
from European and Middle East.
54
EKONID, the German – Indonesian
Chamber of Industry & Commerce,
is the representative of koelnmesse
in Indonesia received the honorable
award in the second place, Mrs. Prieta
Perthantri took this opportunity to
take the award from Ms. Katharina C.
Hamma and Mr. Gerald Böse.
Indonesian Rattan Furniture Pavilion
1
Accupunto International, PT
2
Aida Rattan Industry, PT
3
Alam Calamus, PT
4
Charismatama Craftindo, PT
5
Elmas Natura, PT
6
Erlangga, PT
7
Indosurya Mahakam, CV
8
Kernel Indonesia Potential, PT
9
Khavindo Mebel Indonesia, PT
10
Kotska Adhi Sentosa, CV
11
Romi Violeta, PT
12
Yamakawa Rattan Industry, PT
Indonesian Exhibitors at Hall 2.2
1
Arjuna Maha Sentosa, PT
2
Buana Inter Global, PT
3
East Colonial
4
Furniplus Asia
5
Gracia Kreasi Rotan, PT
6
Lio Collection, PT
7
Metropole Purnama Citra, PT
8
Romana Wicker
9
Siaga Ratindotama, PT
10
Sumroes Karya Utama
(Böhdeline), PT
11
Trinity Collection
IMM Cologne
16 - 22 January 2012
1. Prieta Perthantri received the AV award from Katharina C. Hamma
(COO Kölnmesse) and Gerald Böse (CEO Kölnmesse)
2. H.E. Eddy Pratomo, Michael Dreyer, Katharina C. Hamma
3. Opening Ceremony at the Pavilion: Hatta Sinatra, Aryan Wargadalam,
and RI Ambassador for Germany, H.E. Eddy Pratomo
4. Prieta Perthantri and the entourage of the Ministry of Industry RI
5. Joanne Hendrawati & Taufik Gani, Frans Ronald
6. Bambang Sugiarto
1
2
3
4
5
6
55
Partner Country
Indonesia
Indonesia has a population of 238 million, a gross domestic product of 842 billion US dollars
in 2011 and it’s one of the 20 largest economies in the world. The country’s building industry is
booming and in the raw materials sector, too, major investment is scheduled for the medium
term – all of which are good reasons why bauma should focus more closely on this economic
region and the exciting opportunities it offers for the future. Consequently, Indonesia has been
chosen as the partner country for the next edition of bauma, the world’s largest trade fair for
construction machinery, building material machines, mining machines, construction vehicles
and construction equipment. Bauma 2013 will take place from April 15-21 in Munich.
D A N I E L A G E K L E / P H OTO S : M E S S E M Ü N C H E N I N T E R N AT I O N A L
Barometer, Trendsetter and Indicator:
bauma 2013
Aerial view of Munich Trade Fair Centre where bauma 2013 will
take place. In 2010, bauma provided 550,000 m2 of exhibition
space, hosting 3,256 exhibitors and 420,170 visitors.
TRADE FAIRS
B A U M A
of nominating Indonesia
as partner country
of bauma is to leverage Indonesia’s
significant business potential for the
international construction machinery,
building materials machinery and mining
machinery industry. A co-initiator of the
partner country concept of bauma, along
with Messe München Germany (MMG),
is the German Engineering Federation,
VDMA (Verband Deutscher Maschinenund Anlagenbau). The concept was
first implemented in 2001, and each
time it offers the chosen country many
benefits. So, too, at bauma 2013: The
representatives from Indonesia will have
the opportunity in the lecture program
to present their country to the trade
audience as an investment location
and partner for upcoming projects. As
well as an “Indonesia Forum”, during
the entire show there will also be an
“Indonesia Business Lounge” presented
by the VDMA. In there, bauma exhibitors
and visitors can come together to
discuss prospects in the partner country
and potential projects.
THE AIM
About bauma
bauma 2010 has once again lived up to
its reputation as the world´s leading
trade fair for the sector, by presenting
a wealth of innovation. Giant machines
on 555,000 m² of exhibition space with
3,256 exhibitors and 420,170 visitors—
bauma is the largest and perhaps
the most impressive trade fair in the
world. However, the undisputed leading
international trade fair is also enthralling
because it is so comprehensive. It
features all sectors, all market leaders
and plenty of innovations. The last
bauma in 2010 attracted 3,256 exhibitors
from 53 countries, and over 420,000
visitors from more than 200 nations.
2 0 1 3
“Never before have there been so much
innovations on display in terms of
sustainability and environmental and
human protection. Despite the economic
crisis and the ash cloud, bauma
remains the uncontested Number
One,” confirmed Dr Reinhold Festge,
Managing Partner, Haver & Boecker,
Germany.
Partner Country Indonesia
With the partner country concept of
bauma the German industry would
like to enter dialogue with decisionmakers in Indonesia. The German
engineering companies are the right
Promotion Partner
Country at Conbuild
Mining Indonesia (JIE)
and at IIICE (JCC),
2 - 5 May 2012
partners for Indonesia when it comes
to sustainable and modern mining and
construction equipment or building
material production technology. bauma
as the number one innovation show
for the industry is the best place to
see what’s possible in the field of
sustainable investment and state-of-the
art technology.
EKONID, the German Chamber
of Industry and Commerce, is the
lndonesian Representative of Messe
München Germany and is already in
discussion to develop a concept for
Indonesia’s participation with certain
ministries and other local partners
regarding the Partner Country Project.
At bauma, Indonesian visitors will be
guests of honour and Indonesia will take
center stage. VDMA and the fair organizer
Messe Muenchen together with EKONID
offer matchmaking services, a special
Indonesia business lounge and various
possibilities for Indonesian companies
and officials to present Indonesia, also
to potential investors. bauma attracts
more than 3.000 exhibitors and 420.000
visitors.
During ConBuild Mining Indonesia
(CMBI, May 2-5 at Jakarta International
Expo - JIE), organized by Messe
Muenchen International, where 17
German manufacturers of construction,
building material and mining machinery,
components and services present
themselves, there will be a platform
for promoting the Partner Country. An
information booth, a Press Conference
as well as a Networking event will inform
interested parties about the Partner
Country at bauma 2013.
Also
at
Indonesia
International
Infrastructure Conference and Exhibition
(IIICE, May 2-5 at Jakarta Convention
Center - JCC) Mr Joachim Schmid of
VDMA (Managing Director Construction
As the leading international trade
fair, bauma presents an absolutely
comprehensive range of exhibits to
its visitors. All branches of industry
are present—construction machinery,
building-material machines, mining
machines, construction vehicles and
construction equipment.
57
The aim is to leverage Indonesia’s significant
business potential for the international
construction machinery, building materials
machinery and mining machinery industry.
Equipment and Building material
machinery / Mining equipment) will take
part as a speaker in the conference.
Moreover, a signing ceremony will
take place at IIICE, where the parties
- the leading Indonesian Ministry as
well as MMG and VDMA - will confirm
their cooperation for Partner Country
Indonesia at bauma 2013.
The German companies offer a wide
range of machinery: from basic up
to state-of-the-art machinery. Their
advanced technology and the variety
of products strengthen the economic
performance, productivity and quality of
Indonesian manufacturers in all areas
of construction, mining and building
material production and ensure that
these industries remain competitive.
To underline the importance of the
Indonesian market for the German
machinery and plant manufacturers,
the German Government is not only
sponsoring
the
official
German
Pavilion supported by VDMA, the
German
Engineering
Federation.
Not only a “bauma2013 Partner
Country-Indonesia”-booth and a Press
Conference can be visited, but also a
close contact to German exhibitors as
well as representatives from Messe
Muenchen and VDMA will be possible.
The German presentation at Conbuild
Indonesia is the point of information for
all who would like to know more about
bauma and the partner country program
and for those who would like to get into
contact with German companies, to
exchange experiences and ideas and
to learn more about technologies and
trends of the sector. A special Partner
Country day with a gathering of the
industries’ players is planned at May 3 at
the fairground. For updates please check
http://indonesien.ahk.de/en/services/
trade-fairs/germany/ or www.bauma.
de/en/Indonesia. If you need further
information, please contact daniela.
[email protected] or 021-3154685 Ms
Daniela Gekle.
58
VDMA
VDMA is Europe’s largest
industry network representing
3,100 companies from 38 sectors
of mechanical engineering. They
achieve a total sales of 200 billion
Euros and have a share in world
trade of 19 per cent. The German
engineering industry is prime
mover for products of the future.
It focuses on energy- and cost
efficient, resource-friendly and
profitable production technology.
VDMA is part of a global network.
The federation has representative
offices in China, India and Russia
and long lasting co-operations
with
partner
associations
and trade fair organizers all
over the world. VDMA is nonfinancial sponsor of bauma, the
world’s largest trade show for
construction equipment, building
material machinery and mining
equipment.
International Toy Fair Nuremberg
Comprehensive
platform for Toys
Two Indonesian companies present at Toy Fair
@ SPIELWARENMESSE
Toy enthusiasts from all over the world met at the International Toy Fair – Nuremberg.
Altogether, 77,500 buyers and retailers from all over the world came to the 63rd
Spielwarenmesse International Toy Fair Nürnberg (2011: 79,243). The share of international
visitors increased to 55 per cent, which is also attributable to the new starting date of the fair.
Spielwarenmesse International Toy Fair Nürnberg has
confirmed its role as the leading source
of ideas for toy professionals. “The
Spielwarenmesse International Toy
Fair is the toy industry’s international
fair, where we meet customers from
the whole of Europe and from all over
the world. I can’t imagine a better
place for presenting our new products
than at the International Toy Fair,” says
Bryan Stockton, CEO at Mattel.
THE
Indonesian participation
Our two Indonesian exhibitors this year
were located in Hall 1 for Dolls and
Soft Toys. Ms. Dina from
PT Sun-Indo Adipersada said that the
International Toy Fair is a very good
event and her company participates
every year. PT Kenaga International
participated for the first time at the fair
presenting plush toys and they are very
impressed by the fair.
The International Toy Fair 2012 is just
over, and the number of visitors from
Indonesia to the Number One Fair in
this sector increased compared to
2011. With the increasing number of
Indonesian visitors attracted to this
leading fair, a basket of new ideas
will be brought to the Indonesian toy
sector. Looking forward to find the
developments and new products for
our kids and teens in the shops soon!
Spielwarenmesse International Toy
Fair Nürnberg
The Spielwarenmesse International
Toy Fair Nürnberg, the leading
international fair for toys, hobbies
and leisure, is organized by the fair
and marketing services provider
Spielwarenmesse eG. The trade
fair
creates
a
comprehensive
communication and ordering platform
for 2,700 national and international
manufacturers. The presentation
of new products and the extensive
industry overview provide a valuable
pool of information for annual market
orientation.
60
Products to be displayed: Model
Construction,
Hobbies,
Model
Railways and accessories, Technical
toys, Educational toys, Action toys,
Dolls and soft dolls, Games, Books,
Toys
promoting
Learning
and
Experimenting, Multimedia, Festive
and Trend articles, Wooden Toys,
Craftwork, Gifts, Art & Craft Creative
Design, Sports, Leisure, Outdoor,
School Articles, Stationery, Baby and
infant articles, Multi Product Group
In 2013, the industry meets in
Nuremberg from Wednesday to
Monday, January 30 – February 4.
For more information please check
www.toyfair.de
EKONID is the official representative
of International Toy Fair in Indonesia.
If you need more information please
contact Ms Daniela Gekle daniela.
[email protected]
TRADE FAIRS
H I G H L I G H T S
IFFINA
a feast for the senses
corner
and
you
came face to face
with furniture made from tree roots.
Next to that, you are treated to fancy
lamps crafted with bamboo and
shells. Across, a producer showcased
a furniture set made from wood
managed by a smallholder community
in Central Java. In fact, it is practically
impossible to visit the trade show and
not to fall in love with something.
furniture shows. From 89 countries in
2008, 105 countries attended IFFINA
in 2011 while the number of buyers
and the total sales (almost half a
billion USD in 2011) have also climbed
steadily. This is partly due to growing
participation from furniture companies
such as Trident Home in the US,
Svoboda in Switzerland, LoftLiving in
New Zealand and Le Palais du Meuble
in France.
More an experience than a mere
visit, IFFINA saw 3,000 buyers from
all around the world converge in
Jakarta to find rattan seats, wooden
tables, home accessories, arts and
crafts, leather sofas, and choose
from a seemingly infinite catalogue of
products from across the archipelago,
spread across more than 15,400 m2 of
exhibition space.
But the performance of IFFINA
masks the challenges faced by the
furniture industry in Indonesia, which
experienced a slump in 2010-2011
as sales to the US and other markets
faltered. Now, IFFINA has the heavy
task of helping to boost Indonesia’s
furniture market again, at a time when
western countries continue to weather
difficult economic conditions.
Now in its fifth year, IFFINA has earned
its place in the circuit of regional
With a growing trend towards less
environmentally destructive, more
TURN ONE
@ IFFINA
low-impact design, IFFINA is also an
opportunity to discover new creations
that tread more lightly on the Earth.
While few products carry certification
labels, the furniture industry is taking
steps toward sustainability, a trend
which is only likely to grows as buyers
demand more and more evidence that
products do not harm the environment
and people.
Organized by the Indonesian Furniture
Industry & Handicraft Association
(ASMINDO), and supported by the
Government of Indonesia and the
ASEAN Furniture Industries Council
(AFIC) among others, IFFINA has been
growing from year to year and is now in
its fifth consecutive year of operation.
To find out more, visit www.iffinaindonesia.com
IFFINA is also an opportunity to discover new
creations that tread more lightly on the Earth.
INDO INTERTEX
A showcase
of current developments in the
Indonesian textile industry
(formerly Bandung
Intertex)
announced that it will mount its first
exhibition in Bandung since 1993. Local
and international players welcomed the
announcement with great enthusiasm.
Through this great trade fair, Bandung
Intertex has continued to facilitate
networking between textile and garment
manufacturers every two years. This
has lead the trade fair to become the
biggest textile and garment machinery
and accessories exhibition in ASEAN,
covering more than 15,000 sqm. This
exhibition was held in conjunction with
Indo Textile (currently Inatex), the key
driver for textile products and materials.
INDO INTERTEX
After so many years, however, Bandung
Intertex officially changed its title to Indo
Intertex due to major relocation activities
to Jakarta during 2010. By expanding
its professionalism and expertise, the
Intertex team is showing that its ready
to work to allow Indo Intertex and Inatex
to play their important roles in providing
the best service for local and global
textile players, especially amongst
ASEAN countries.
@ INDOINTERTEX
This year INDO INTER TEX 2012 will be
the 10th Indonesia International Textile
and Garment Machinery & Accessories
Exhibition, in conjunction with INATEX
2012 also the 10th International Textile,
Fibres, Yarns, Fabrics, Garments,
Home Textiles, and Textile Accessories
Exhibition. Both shows will be held on
19-22 April 2012, occupying more than
14,000 square meters of exhibition
space at Jakarta International Expo,
Kemayoran. The event will be visited
by regional distributors, importers and
government institutions, looking for the
latest technology in their represented
sectors.
Together with the joint support of the
Indonesian Textile Association (API), it is
believed that this prime exhibition shall
facilitate the best platforms especially
for updating the national related TPT
players with the latest industry and
market developments in the Textile and
Garment sector.
The Indonesian Textile Association API will be organizing a seminar during
INDO INTER TEX.
62
Until January, a total of more than 250
exhibitors from 20 countries & regions
from Austria, Belgium, P.R. China,
France, Germany, Hongkong, India,
Indonesia, Italy, Japan, Korea, Malaysia,
Singapore, Spain, Sweden, Switzerland,
Taiwan, Turkey, United Kingdom, and
USA have already registered for the
event.
Exhibits include machinery,
spares, accessories for spinning,
weaving, knitting, dyeing, finishing, laser
cutting, textile and garment laboratory
instruments, sewing machines, CAD/
CAM, embroidery machine, yarn,
threads and many more.
Moreover, important guests like
the Indonesia Ministry of Industry,
the Chairman of Indonesian textile
associations and AFTEX (Asean
Federation of Textile) members have
already confirmed their participation.
For more information please check
http://www.peragaexpo.com.
More than four decades of business
networking in Indonesia
EKONID, the German-Indonesian Chamber of Industry and Commerce
As part of the network of German Chambers Abroad (AHKs), EKONID is officially mandated
by the German Federal Government to promote trade and investment between Germany
and Indonesia. EKONIDS’s corporate, institutional and private members are supported
through a wide range of network and lobbying activities, especially towards ministries and
other government authorities.
Founded in 1970, EKONID has today established itself as a reliable and competent provider
of business services for its members and clients in both Germany and Indonesia. Its areas
of expertise cover market entry, trade fair participation, event management, advertising
and promotion.
EKONID is the official Partner of JERIN -Jerman dan Indonesia: www.jerin.or.id
Jl. H. Agus Salim No. 115 - Jakarta 10310 - P.O. Box 3151 - Jakarta 10031, Indonesia
Tel.: +62-21 315 4685 - Fax. +62-21 315 5276
E-mail:[email protected] - http://indonesien.ahk.de - Find us on Facebook: AHK Indonesia
Trade Fair Calendar
Germany
Kölnmesse
Mrs Prieta Perthantri
[email protected]
Tel.: +62-21-3154685
Fax: +62-21-3155276
www.koelnmesse.com
Anuga Food Tec
The International Trade Fair For Food And Drink
Technology
Cologne, March 27 – 30, 2012, 2012
www.anugafoodtec.com
Wof Asia (Thaifex)
International Trade Fair covering Food &
Beverage, Food Catering, Food Technology,
Hospitality Service and Retail & Franchise
Bangkok, May 23 – 27, 2012
www.worldoffoodasia.com
SPOGA + GAFA
The Garden Trade Fair
Cologne, Sept 02 – 04, 2012
www.spogagafa.com
CLEAN ENERGY EXPO ASIA
Trade Fair and Conference, Covering Various
Areas within the Renewables Sector
Bangkok, Sept 12 – 14, 2012
www.cleanenergyexpoasia.com
Kind und Jugend
The leading global fair for the baby and toddler
outfitting sector with trends and innovations for
your success!
Cologne, Sept 13 – 16, 2012
www.kindundjugend.com
Annapoorna – World of Food India
International Exhibition and Conference for the
Food & Beverage Industry
Mumbai, Sept 26 – 28, 2012
www.worldoffoodindia.com
Anuga
The world´s leading food fair for the retail trade
and the food service and catering market
Cologne, Oct 05 – 09, 2013
www.anuga.com
Orgatec
Modern Office & Facility
Cologne, Oct 23 – 27, 2012
www.orgatec.com
Sweets Middle East
International Exhibition for the Sweets &
Confectionery, Bakery, Snack Food and Ice
Cream Industry
Dubai, Nov 19 – 21, 2012
Sweet &SnackTech Middle East
International Exhibition for processing,
manufacturing and packaging for the Sweet &
Confectionary, Bakery and Snack Industry.
Dubai, Nov 19 – 21, 2012
Messe München
Ms Daniela Gekle
[email protected]
Tel.: +62-21-3154685
Fax: +62-21-3155276
www.messe-muenchen.de
IFAT Entsorga
World’s Leading Trade Fair for Water, Sewage,
Waste and Raw Materials Management
Munich, May 07 – 11, 2012
www.ifat.de
Ceramitec
Technologies | Innovations | Materials. The new
subtitle reflects the entire range of CERAMITEC
exhibits—from classic ceramics and raw
materials to powder metallurgy and technical
ceramics.
Munich, May 22 – 25, 2012
www.ceramitec.de
Intersolar
The World´s Largest Exhibition for the Solar
Industry
Munich, June 13 – 15, 2012
www.intersolar.de
Electronica
International Trade Fair For Electronic
Components, System and Applications
Munchen, Nov 13 – 16, 2012
64
www.electronica.de
Transport Logistic China
International Exhibition For Logistics,
Telematics And transport
Shanghai, Jun 05 – 07, 2012
www.transportlogistic-china.com
Bike Expo
The Trade Fair for City and Nature
Munich, June 21 – 24, 2011-02-14
www.bike-expo.com
Iba
World Market for Baking – everything for bakers
and confectioners
Munich, Sept. 16 - 21, 2012
www.iba.de
Bauma China
International Trade Fair for Construction
Machinery, Building Material Machines,
Construction Vehicles and equipment
Shanghai, Nov 27 – 30, 2012
www.bauma-china.com
Heim und Handwerk
Building, Furnishing, Living
Munich, Nov 28 – Dec 02, 2012
www.heim-handwerk.de
Messe Schweiz
Ms Daniela Gekle
[email protected]
Tel.: +62-21-3154685
Fax: +62-21-3155276
Muba
Multi-product fair
Basel, Switzerland, April 13 – 22, 2012
www.muba.ch
TRADE FAIRS
C A L E N D A R
Trade Fair Calendar
Indonesia
Peraga
INDO INTER TEX 2012
Jakarta Int’l Expo Kemayoran,
April 19 – 22, 2012
www.peragaexpo.com
INATEX 2012
April 19 – 22, 2012
www.peragaexpo.com
Wahana Kemalaniaga
INDOPLAS
INDOPRINT
INDOPACK
April 11 – 14, 2012
www.indoplas.com
Debindo
INDOBUILDTECH 2011
Jakarta Convention Center,
June 27 – July 01, 2012
www.indobuildtech.com
Napindo
INDO WATER 2012
INDO WASTE 2012
INDORENERGY 2012
Grand City Surabaya,
July 11 – 13, 2012
www.indowater.com
www.indowater.com
www.indorenergy.com
Wahyu Promo
INA-CHEM 2012
July 11 – 13, 2012
www.ina-chem.com
Kristamedia
INDO POWER
Jakarta International Expo, April 4 –6, 2012
http://www.indo-power.com/
INDOLEATHER AND FOOTWEAR
INDO POWER
Jakarta International Expo,
May 10 –13, 2012
http://indoleather-footwear.com/
INTERFOOD INDONESIA
ALLPACK INDONESIA
Nov 21 –24, 2012
www.interfood-indonesia.com
www.allpack-indonesia.com
www.interpharma-indonesia.com
www.interplasticindonesia.com
ALLPRINT INDONESIA
INDO LED LIGHT EXPO
Nov 7 – 10, 2012
www.allprintpaperindonesia.com
Prakarsa
COSMOBEAUTE INDONESIA 2012
Oct 21 – 23, 2012
www.cosmobeauteindonesia.com
Pamerindo
MANUFACTURING INDONESIA 2012
MACHINE TOOL INDONESIA 2012
05 – 08 Dec, 2012
www.pamerindo.com
PLASTICS & RUBBER INDONESIA 2012
PROPAK INDONESIA 2012
10 – 13 Oct, 2012
www.pamerindo.com
Ms Daniela Gekle
[email protected]
Tel.: +62-21-3154685
Fax: +62-21-3155276
65
Borobudur
The Temple of a
Thousand Statues
@ www.istockphoto.com
is the greatest
of all Buddhist
monuments and one of the world’s
wonders. Surrounded by lush green
vegetation and ringed by volcanoes—
one of which remains active, the
1,200-year old temple has attracted
millions of pilgrims and visitors from
around the world for hundreds of
years. The founding of Chinese coins
and ceramics suggest that the practice
continued until the 15th century.
BOROBUDUR
Build at the beginning of 9th century
during the golden era of Syailendra
Dynasty, the temple is 42 meters high
with 10 terraces of each symbolizes
the stages of life; a microcosm of the
universe and its purpose was to provide
personal image of Buddha teaching
and show in practical manner, the
steps through life that each individual
must follow to achieve enlightenment.
In total, there are more than 500
Buddha statues are perched around
the temple. Its lower terraces include
a balustrade that blocks out views of
the outside world and replaces them
with nearly 3,000 bas-relief sculptures
illustrating the life and teachings of
the Buddha. The three top levels are
circular where the Buddhist stupas
are placed and the seven others are
square in which the reliefs of Buddha
Gautama’s life and love are carved.
Believers said climbing Borobudur
is a pilgrimage in itself, meant to be
experienced physically and spiritually
according to the tenets of Mahayana
Buddhism. As the faithful climb
CULTURE
D E S T I N AT I O N I N D O N E S I A
Fact
The Sailendra Dynasty held sway
on Java and neighboring Sumatra.
This ruling clan came from South
India or Indochina and helped
to establish Java as a center of
Buddhist scholarship and worship.
upward from level to level, they are
guided by the stories and wisdom of the
bas-reliefs from one symbolic plane of
consciousness to the next, higher level
on the journey to enlightenment.
It was during the spreading of Islam,
which followed by a weakening
dominance of Buddhism, when
Borobudur was abandoned. Severe
earthquakes and large eruptions of
Mount Merapi in 1006 AD and lush
vegetation have covered the forgotten
site until Sir Thomas Raffles, founder
of Singapore/British Governor of Java
excavated the site. In 1968, UNESCO
claimed Borobudur as a world heritage
site that need to be preserved.
Reasons for visiting
• The 1,200-year-old Borobudur
temple is home to hundreds of
Buddhist statues.
• According to National Geographic
Magazine, Borobudur is the
world’s
largest
Buddhist
monument and a priceless
ancient center for pilgrimage
and education in Mahayana
Buddhism.
• From the top of the temple,
the volcano Merapi is easily
visible, still smoking to this day,
having erupted on more than a
few occasions during the last
millennia.
• This area of Java is one of the
most earthquake prone regions
in the world as well as one of
the most volcanic, yet the site
remains.
How to Get There
Borobudur is about 25 miles (40
kilometers)
from
Yogyakarta,
where many day-trip tours can
be booked. Those wishing to visit
independently, or stay in Borobudur
village outside the park entrance,
can travel to the site by bus or taxi.
When to Visit
Sunrise and sunset are particularly
special times to be at the site.
Weekends tend to be especially
crowded.
How to Visit
Borobudur was designed to be
climbed, and visitors able to follow
the path of enlightenment to the top
can experience the site as pilgrims
did a thousand years ago. It’s well
worth hiring a guide to explain the
significance of statuary and the
incredible bas-relief scenes along
the way.
Germany extends helping hand in Preservation of
Borobudur Temple in Indonesia
The German Government’s Preservation of Culture
Department; German Ministry of Foreign Affairs is
providing a significant amount of monetary aid to help
conservation work for the Borobudur Temple, a world
cultural heritage – UNESCO and of the largest spiritual
locations in the world.
The temple, included in the list of the oldest temples
and largest Buddhist structure in the world, suffered
severe damage when in late 2010 the magnificent
structure was affected by volcanic ash from the
eruption of Mount Merapi. The temple was closed for
public visits for a period of time.
up volcanic ash from the Borobudur, hence allowing it
to be reopened to the public.
German Ministry of Foreign Affairs funded research on
the condition of the temple stones by deploying German
experts in the field of restoration. Among these were
Prof. Hans Leisen and Dr. Esther von Plehwe-Leisen.
In a workshop with experts from Indonesia ideas were
exchanged within the context of special treatment for
the preservation of the stone structures of this historic
temple. The project is intended to forge the beginning of
a closer cooperation between Germany and Indonesia
in the preservation of temples in Indonesia.
UNESCO, the Indonesian government and many
partners from Indonesia have succeeded in cleaning
67
CULTURE
D E S T I N AT I O N E U R O P E
Neuschwanstein Castle
The castle of the fairy-tale king
Fact
• Ludwig, who was allegedly mad,
never enjoyed his dream castle
– before Neuschwanstein was
completely finished, he drowned
in a lake nearby. Until today, the
exact circumstances of Ludwig’s
death remain unexplained;
some say he committed suicide,
others believe he was murdered.
• Neuschwanstein
was
the
inspiration for the Sleeping
Beauty Castle in Disneyland.
from 1868 by King Ludwig II
Built
of Bavaria, Neuschwanstein
is the most famous German castle
and probably the best known castle
in the world. It is a mixture of styles
and the initial blueprint was penned
by a theatre designer rather than an
architect.
Wagner’s operas. The Singers Hall,
which occupies the entire fourth floor
of Neuschwanstein, also contains
characters from Wagner’s operas. The
name Neuschwanstein itself literally
means “New Swan Castle” referencing
of “the Swan Knight” one of the
Wagner’s characters.
Nestled in the Bavarian Alps, Ludwig
II of Bavaria constructed this fairy tale
castle in 1869, the castle was built
2000 m above the valley floor and
its centre piece became the lavish
Sängersaal (Minstrel’s Hall) where
Ludwig could indulge in his obsession
with Wagner and medieval knights
Neuschwanstein Castle was built in his
honor and many rooms in the castle’s
interior were inspired by Wagner’s
characters. The third floor particularly
reflects Ludwig’s admiration of
The castle has a very beautiful inner
garden surrounded by a walled
courtyard. It even has an artificial
cave. Neuschwanstein’s interior is as
beautiful as its outside. Though only 14
rooms were finished before Ludwig’s
sudden death in 1886, these rooms
were majestically decorated. The two
story throne room was designed in
Byzantine style, with wall paintings
depicting angels. Ironically, there is no
throne in the Throne Room, as Ludwig
died before it was completely finished.
Lufthansa offers daily flights from Jakarta to Munich
departing at 20.05 and arriving at 06.00 on the next day
68
Reason of visiting
• Neuschwanstein is the highlight
of the scenic drive Romantic
Road: A 261 mile long scenic
route through Bavaria that leads
you from the Franconia wine
country to the foothills of the
German Alps.
• Despite the castle’s medieval
appearance, Ludwig built in
modern technologies of the day,
such as flush toilets, running
hot and cold water, and heating.
When to visit
Neuschwanstein is very crowded
in summer (6,000 visitors a day);
the best time to visit is spring or
fall.
How to get there
Neuschwanstein is approximately
128 km from Munich Airport. From
Munich take the train to Füssen,
then the bus with the direction to
Schwangau until you reach the stop
Hohenschwangau / Alpseestraße.
From
Hohenschwangau
to
Neuschwanstein Castle you can
either walk up to the castle (takes
you approx. 30 minutes) or take
the old-fashioned way by horsedrawn carriage.
CULTURE
JERIN
German Cinema
award winning movie “John
Rabe” (2009) kicked-off the
German Cinema on 15 January 2012.
Set back in 1937, the movie was the
true account of John Rabe (played by
prize-winning German actor Ulrich
Tukur), who saved more than 200,000
of his workers and their families
during a brutal massacre committed
by the Japanese army in China. Next to
Tukur the highly acclaimed film stars
Daniel Brühl and Steve Buscemi. The
movie won several prizes including
the renowned German Film Award, the
Bavarian Film Awards well as several
nominations at international film
festivals.
THE
Frank Werner, Head of Cultural
Program Goethe Institute, officiated
the event, which ran from 15-25
January 2012. It screened in five
cities throughout Indonesia, including
Jakarta, Yogyakarta, Surabaya, Medan
and Makassar. The 10-day movie
festival offers the opportunity for movie
lovers to watch award-winning German
movies from the past five years for
free. The selection was big: the movies
ranged from comedy to drama, from
romance to road movie, from history to
action. Hundreds of movie lovers were
seen during the movie screening at XXI
Epicentrum Kuningan, Jakarta.
Prior to the movie screening a director’s
talk session was held moderated
by Indonesian prominent cineaste,
Nia Dinata. Oscar-winning director,
Florian Gallenberger, who is also the
director for “John Rabe”, expressed
his enthusiasm saying that Jakarta
has gave him a profound impression.
“I’ve only been here for two days, yet
the town has impressed me.”
Gallenberger said that his passion
for movies has brought him to many
countries. “I love the world of cinema.
I also like to travel abroad and make
a movie about ‘how life is over there”,
said Gallenberger.
@ google
Postcard from the Zoo
An Indonesian movie,
Postcards from the
Zoo, by young director
Edwin, will compete
at the 2012 Berlin International Film Festival. The movie, jointly made by
Indonesian, Hong Kong and German film crews, tells
the story of a female giraffe trainer. Top actor Nicholas Saputra and actress Ladya Cheryl star in the film.
The movie will compete alongside Captive, by French
director Brillante Mendoza; Dictado (Childish Games)
by Spanish director Antonio Chavarrías; Extremely
Loud and Incredibly Close by British director Stephen
Daldry; and Jin Ling Shi San Chai (The Flowers Of
War) by Chinese director Zhang Yimou.
Director Edwin, who studied film at the Jakarta Art
Institute was assistant director to Riri Riza in Gie.
He previously made some short movies, including
Dajang Soembi, Perempoean Jang Dikawini Andjing,
and Kara: Anak Sebatang Pohon. His first movie,
entitled Babi Buta yang Ingin Terbang (Blind Pig who
wants to Fly) has also been featured in various movie
festivals in Korea, Canada, Netherlands and many
others.
70
@ iwan nasution
A Taste of Germany
Batik A Living Heritage
entitled Batik “A Living Heritage” showcases the
work of renowned batik artists. The exhibition,
held at Galeri Nasional Jakarta from January 25 – February 19, 2012
aimed to dignify batik as the most traditional style of Indonesia in a very
specific way. In addition to the historic background, the symbol-meaning
and production process of batik, the exhibition also highlighted the work
of a number of European batik artists, especially from Germany.
AN EXHIBITION
A highlight of the event was batik collection from Yogyakarta-based
designer Afif Syakur. Over the last two decades, Afif Syakur has through
his innovative company APIP’s Kerajinan Batik promoted Indonesian
batik in exhibitions and fashion events across the globe. Syakur is now
sharing some of his antique batik pieces taken from his collection of
3,000 pieces, consisting of traditional and modern designs which he
collected from various regions of Indonesia. Featured at the center of
APIP’s Kerajinan Batik exhibit was a display of the role batik plays in
important life stages, beginning with pregnancy and birth, circumcision,
engagement, marriage, and eventually death; particular batik motifs
are to be worn during specific life stage to successfully overcome and
increase harmony. Also on display will be a collection of classic batik
motifs from traditional batik regions, including Pekalongan, Cirebon and
Kraton among others.
A VIP Night was conducted on 2 February 2012 and was officiated by
German Ambassador for Republic of Indonesia H.E Norbert Baas and
the Governor of Jakarta, Fauzi Bowo. Among the attendance was Former
Minister of Trade and Industri, Rahardi Ramelan, Former Minister of
Women Empowerment, Muetia Hatta, Founder & Commissioner Femina
Group, Pia Alisjahbana, and designer Ghea Panggabean.
P H OTO S : I WA N N A S U T I O N , I I E M A U L I D I A & C R E S E N T I A N OV I A N T I
The exhibition was a great success in
Jakarta and Solo
CULTURE
JERIN
Batik Exhibition Jakarta
Opening Ceremony
Galeri Nasional - Jakarta
72
Batik Exhibition Surakarta
Opening Ceremony
Pendhapi Gedhe Sala
73
@ ARCHIVE
Raden Saleh’s
Homecoming
Finally, 200 years after his birth and 132 years after his death, the first exhibition of the work of
Raden Saleh (1811-1880) is to open in Jakarta. Yet this painter, who everyone knows as pelepor seni
lukis and whose name has been given to numerous Indonesian streets and squares, has remained
a foreigner in his own land. Only few of his works are on public display and his life continues to be
shrouded in a whole host of myths. “Raden Saleh and the Beginning of Modern Indonesian Painting”,
the exhibition to be staged at the Galeri Nasional Indonesia in Jakarta from June 2nd to June 17th,
2012, will not only present the master’s work to the public, but will open up a new window onto his
life and highlight his importance for Indonesian art. Over 40 paintings and drawings by the painter
will be on shown, including many works which in recent years have celebrated spectacular successes
at auctions. Raden Saleh’s “homecoming” is set to become one of the major art events of 2012. The
curator, German Raden Saleh expert Werner Kraus, elaborates on his vision for the exhibition:
W erner K raus
CULTURE
JERIN
The JERIN- Jerman dan Indonesia event series will
be extended until June 2012!!! Please check our
events on www.jerin.or.id
painter in the colony – European or Javanese – who was
his equal. He was largely responsible for broad segments
of the Javanese elite discovering, during the second half
of the nineteenth century, that realistic painting – which
followed the rules of perspective and created a threedimensional image on a flat canvas – could constitute an
aesthetic pleasure. These first small steps marked the start
of Indonesian art’s journey towards the vibrant scene it has
become today.
Raden Saleh was a painter, but also a collector of
ethnographic and archaeological documents; he was an
architect, a palaeontologist, a landscape gardener and the
founder of zoological gardens. Saleh spent 25 years of his
life in Europe (in the Netherlands, Germany, France, Italy
and England) and became part of European art history. He
took his experiences and his skills to Java with the intention
of taking part in the process of economic, scientific and
cultural modernization of his homeland – and failed. He
failed because of the racial arrogance of the colonial
powers, which showed neither trust nor respect towards
“brown” people. There was demand for neither his genius
as an artist nor his abilities as a modernizer in Java, despite
the fact that the country had a desperate need for welltrained people. He was largely excluded from the colony’s
social and intellectual life on account of the colour of his
skin. Embitterment, depression, thoughts of escape and
self-withdrawal were the consequences of this social
marginalization.
The colonial powers could not deny, however, that he was
extremely successful as an artist, since there was no other
75
The exhibition will be accompanied by a wide-ranging
programme that includes special guided tours for children,
workshops for restorers and exhibition organizers, a fashion
show inspired by Raden Saleh and a high-level international
academic symposium on “Art and Hybridity”.
In addition, a comprehensive trilingual (Indonesian, German,
English) catalogue will be produced.
The curator and organizers of the exhibition – the GoetheInstitut, the German Embassy, EKONID and the Premium
Event Partner BMW – hope that it will lead to a reassessment
of Raden Saleh’s importance as an artist and as a builder of
bridges between Indonesia and Europe.
@ ARCHIVE
I was introduced many years ago to the broad
outlines of Raden Saleh’s life story I was
astonished to discover the wealth of worldly experience
this Javanese man displayed. I found myself encountering
an enlightened, educated man who did not fit in at all with
the image I had of nineteenth century colonial society. I
also realized quickly how much he had suffered from the
ideologies of his time – ideologies which had very different
consequences in different places. While exposed as an
exemplary foreigner in Germany to positive discrimination,
for example, he experienced the other side of the same
coin in his homeland, in Java, where he was seen, first and
foremost, as brown and therefore to some extent deficient.
WHEN
The exhibition “Raden Saleh and the Beginning of Modern
Indonesian Painting” at the Galeri Nasional is an ambitious
attempt to paint for the first time a comprehensive and
true-to-life picture of Raden Saleh the man and his work.
It will demonstrate that Raden Saleh never renounced his
Javanese roots in all the years. For marketing reasons
he painted the portraits of his Dutch clients in flawless
academic style. When he painted Javanese people, however,
he ignored the European rules and focused on the twodimensional style preferred by his culture in which neither
depth nor perspective are properly represented and pictures
appear strangely flat, yet by no means less interesting as a
result.
there was no other painter in the
colony – European or Javanese –
who was his equal.
JANUARYSOROTAN
- MARCH EDITION 1 / 2012
Raden Saleh and
the Beginning of Modern
Indonesian Painting
A Monographic Exhibition
Galeri Nasional, Jakarta
Spring 2012
www.jerin.or.id
Twitter @jer_in
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Email [email protected]
YouTube channel jermandanindonesia
Flickr jerman-indonesia

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