Post on 25-Mar-2019
transcript
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TABLE OF CONTENTS
CONTENTS .............................................................................................................................................. i
WELCOMING NOTES ............................................................................................................................. 1
VENUE PROFILE ..................................................................................................................................... 3
INDONESIA AT A GLANCE ...................................................................................................................... 4
JAKARTA AT A GLANCE .......................................................................................................................... 4
ECONOMIC OUTLOOK ......................................................................................................................... 12
SOCIAL CULTURAL ASPECT .................................................................................................................. 15
INFRASTRUCTURE ............................................................................................................................... 20
GENERAL FACTS OF INVESTMENT IN INDONESIA ............................................................................... 24
ABOUT PRASETIYA MULYA AND PRASETIYA MULYA EXECUTIVE LEARNING INSTITUTE ..................... 29
Prasetiya Mulya .................................................................................................................................. 29
Prasetiya Mulya Executive Learning Institute ..................................................................................... 33
AFLP PARTICIPANT .............................................................................................................................. 41
PROGRAM OFFICER ............................................................................................................................. 43
EMERGENCY PHONE NUMBER ........................................................................................................... 44
REFERENCES ........................................................................................................................................ 45
APPENDIX ............................................................................................................................................ 46
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WELCOMING NOTES
Prasetiya Mulya Executive Learning Institute
Dear executives,
We welcome you to the Asian Financial Leaders Programme (AFLP). As the
partner of Singapore Management University, it is our honour to conduct the
segment of AFLP in Indonesia .
As you are the executives who may have exposures on global and regional
business, we are very sure that at a certain extent you have already had the
knowledge on financial business in Indonesia. This segment is designed and
conducted not only to provide you with more data and information on the
financial industry but also to introduce you to the real situation, opportunities
and challenges which may not reflected on the numbers. We have invited
prominent resource persons to interact with you. We also have arranged some
programs to relate you to the leaders in Indonesian financial industry.
We do hope you will enjoy this program and obtain a substantial benefit from it.
Warm regards,
Deddi Tedjakumara
Executive Director
Prasetiya Mulya Executive Learning Institute
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Singapore Management University
Welcome Message
A warm welcome to all of you to Module 3A of the Asian Financial Leaders
Programme (AFLP), held at the Prasetiya Mulya Business School (PMBS), Jakarta,
Indonesia.
We are honoured to partner with PMBS to conduct the 3-day programme
focusing Southeast Asian Markets. This module aims to provide a
comprehensive overview of the operating and regulatory environment of
emerging South East Asian countries. A good understanding of the operating
and regulatory environment is critical for financial institutions to operate
profitably and successfully in emerging financial markets. Country experts will
discuss the major trends developing in these markets and the associated
operating risks. These risks are related to political dynamics, demography,
religious tensions and transparency of regulatory frameworks.
I wish you a rewarding journey of learning and achievement in this 3-day
programme in Jakarta, Indonesia.
Warm regards,
Benedict Koh
Associate Dean
Lee Kong Chian School of Business
Singapore Management University
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VENUE PROFILE
Prasetiya Mulya University
*the session will be conducted in Room 2101 - 2103
Contact Information
Address: JL. RA. Kartini (TB Simatupang),
Cilandak Barat Jakarta Selatan, Jakarta 12430
Indonesia.
Phone: (+62 21) 751-1126, 750-0463
Fax: (+62 21) 7500 460
Prasetiya Mulya was founded in 1980 by a group of prominent Indonesian business
leaders. The first MBA program in Indonesia was then established in 1982 with
assistance from prestigious international scholars and experts. Today it remains the
leading private business education program provider in the country, upholding the
original aims of the founders to offer the highest standards in business management
education and training. Being founded by members of the country's business
community has ensured an effective balance of comprehensive curriculum
between theoretical knowledge and practical application. Prasetiya Mulya is now
benchmarking itself among the leading business schools by undergoing the AACSB
accreditation process.
Prasetiya Mulya Business School has over thirty years of experience in teaching
graduate business courses in preparing the next generation of Indonesia's
executives and entrepreneurs. It is exclusively taught by Prasetiya Mulya's leading
faculties who have extensive professional experience as well as academic
accolades giving students the opportunity to learn from renowned figures in a given
field. For graduates wishing to build upon their business knowledge,
Prasetiya Mulya offers full time (MM Regular) and part time
program (MM Business Management and Strategic Innovation)
for those studying alongside full time employment.
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INDONESIA AT A GLANCE
As the largest country in Southeast Asia, a diverse archipelago nation which cover
more than 300 ethnic groups, Indonesia has shown impressive economic growth
since overcoming the Asian financial crisis on the late 1990s. The country’s gross
national income per capita has steadily risen, from $560 in the year 2000 to $3,630 in
2014. Today, Indonesia is the world’s fourth most populous nation, the world’s 10th
largest economy in terms of purchasing power parity, and a member of the G-20. It
has made enormous gains in poverty reduction, cutting the poverty rate to more
than half since 1999, to 11.2% in 2015.
Indonesia’s economic planning follows a 20-year development plan, spanning from
2005 to 2025. It is segmented into 5-year medium-term plans, called the RPJMN,
each with different development priorities. The current medium-term development
plan – the third phase of the long-term plan -- runs from 2015 to 2020, focusing,
among others, on infrastructure development and improving social assistance
programs in education and healthcare.
JAKARTA AT A GLANCE
Brief History
Spanning an area of 661 square kilometers (255 sq mi) Jakarta is
the largest city and capital of Indonesia. Jakarta is an
autonomous province consisting of five municipalities, namely:
Central Jakarta, North, West, East and South Jakarta and the
District of Pulau Seribu or the Thousand Islands.
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Since Indonesia’s Independence in 1945, Jakarta’s population grew by leaps and
bounds, new suburbs emerged, absorbing the one-time surrounding rural villages or
kampungs. The metropolitan capital spread to all directions, first adding the
Kebayoran area, then Pondok Indah, in the south, but now growing east, north,
further south and west, so that today, Jakarta has become one almost seamless city
with the adjoining towns of Bogor, Depok, Tangerang, and Bekasi. The greater
Jakarta area is, therefore, known following its acronym: Jabodetabek.
Fortunately, town planning in this sprawling metropolis is such that each suburb is
self-contained, complete with facilities like hospitals, schools, universities, shopping
centers, and religious buildings that are all available within easy reach in one
neighborhood.
Nonetheless, since the thousands of offices in high rise buildings are still centralized in
the city, the millions of commuters who travel at peak hours in the morning and in
the evenings from and to the suburbs, cause daily traffic snarls that are almost
impossible to overcome, even with the construction of wide toll roads, overhead
roads and traffic tunnels.
Climate
Jakarta is a tropical, humid city, with annual temperatures ranging between the
extremes of 24 and 34 °C and a relative humidity between 75 and 85 percent. The
average mean temperatures are 26 °C in January and 28 °C in October. The annual
rainfall is more than 1,700 mm. Temperatures are often modified by sea winds.
Jakarta lies on a low, flat alluvial plain with historically extensive swampy areas; the
parts of the city farther inland are slightly higher. It is easily flooded during the rainy
season.
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Currency Information
The currency of Indonesia is the Rupiah, usually marked as Rp or IDR and freely
convertible. Coins start at Rp.100,- up to Rp.1.000,- and banknotes come in
denominations of Rp.1.000,- , Rp.5.000,- , Rp.10.000,- , Rp.20.000,- , Rp.50.000,- , and
Rp.100.000,-. At the time writing, US$ 1 is equal about Rp.13.207,50. Major
international credit cards (Visa, MasterCard, American Express, and JCB Card) are
widely accepted in Jakarta. Automated Teller Machine (ATMs) are found
throughout the city.
Culture
Jakarta has its own special Betawi culture, which the influences reached the city’s
shores over the centuries. Along process of selectivity borrowing and uniquely
blending Chinese, Arab, Portuguese, and Dutch elements with native ingenuity has
produces the colorful. The word “Betawi” is derived from Batavia, the old name of
the capital during the Dutch administration.
Traditional Foods and Drinks
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Jakarta, as its original people called as Betawi, has Kerak Telor as its traditional food.
Kerak Telor is made from glutinious rice fried with duck egg, and topped with
shredded coconut, fried shallots and dried shrimp. Duck egg is considered to be
more flavorful over chicken eggs, which I have to agree. Kerak Telor vendors are
most prominent during the annual Jakarta fair and considered a popular choice for
visitors. In the past, Kerak Telor was also considered to be food for the wealthy and
served during parties.
Ketoprak is another typical street food in Jakarta but has also spread across Java
with its popularity. The vegetarian Ketoprak consists of tofu, lontong (compressed
rice cake), bihun (angel hair), boiled egg, bean sprouts and cabbage, doused in
peanut sauce and topped with fried shallots and kerupuk (deep-fried flavored rice
crackers). You may also request for the level of spiciness you desire in each
individual Ketoprak in most places, with a choice of mild, medium or burn your
tongue off.
There’s also Gado-gado. Gado-Gado is an Indonesian salad with a rich mix of
boiled vegetables such as potato, string beans, corn, bitter gourd, cabbage,
spinach along with tofu, tempeh and hard-boiled egg all mixed in peanut sauce.
Kerupuk are also sometimes added in. The peanut sauce for Gado-Gado has Terasi
(dried prawn paste) as one of its common ingredients.
Besides foods, there are several signature traditional drinks in Jakarta.
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These two drinks are best served cold. First, Cendol is a traditional dessert with
coconut milk, jelly noodles made from rice flour with green food coloring (usually
derived from pandan leaf), shaved ice, and palm sugar as the basic ingredients.
Sometimes, it served with additional topping, such as red beans, glutinous rice, grass
jelly, creamed corn. Next is Es Doger. It is coconut milk based shaved ice cold
beverages with pinkish color and often served as a dessert. It contains some
ingredients, such as Cincau, Tape, Kolang-Kaling, and Coconut. This drink commonly
sold by travelling vendor carts in major Indonesian cities.
In addition, there are also several drinks which are most delicious when consumed
while it is hot. Wedang Ronde is one of the most popular traditional beverages
made by hot ginger water and Ronde. Ronde is special dough of mixing corn flour
and brown sugar in round shape with crushed peanut inside. Some people mix
Wedang Ronde with cincau, bread slice in square shape and fried peanut.
Interesting Places in Jakarta
• Jakarta Central Area
SCBD or Sudirman Central Business District is known as Jakarta central Area. It is
developed by PT Danayasa Arthama TBK and was founded in 1 April 1987. The
business park occupies 45 hectares of land, which divided into 25 lots/parcels. 13
hectares of the complex are allocated for road and parking lot. There are a lot
of important buildings in SCBD such as Indonesia Stock Exchange Building, Artha
Graha Building and Equity Tower. Besides office building, there are also some
residential tower, mall, and hotel for accommodation.
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• Malls
• Grand Indonesia Shopping Town
Jalan MH Thamrin No. 1
Plaza Indonesia Shopping Centre
Jalan MH Thamrin Kav 28-29
Plaza Senayan
Jalan Asia Afrika No. 8
Pondok Indah Mall
Jl Metro Pondok Indah
Gandaria City
Jl Sultan Iskandar Muda
Pacific Place
Jalan Jend. Sudirman Kav. 52-53
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• Museums and Point of Interest
National Museum Fatahillah Square Ragunan Zoo
Jl. Merdeka Barat no. 12
Tuesday – Friday: 08.00-16.00
Saturday – Sunday: 08.00-17.00
*Closed every Monday and public holiday
Admission:
IDR10,000 for foreign tourist
Jl. Taman Fatahillah no. 1
Tuesday – Thursday: 08.30-14.30
Friday : 08.30-11.30
Saturday: 08.30-13.30
Sunday: 08.30-14.30
*Close every Monday and public holiday
Admission:
IDR 10,000 for foreign tourist
Jl. Harsono no. 1
Tuesday – Saturday: 08.30-14.30
Sunday : 06.00-16.00
*Close every Monday and public holiday
Admission:
IDR 10,000 for foreign tourist
National Monument Wayang Museum Ancol Dreamland
Silang Monas, Central Jakarta
Monday – Sunday: 08.30-17.00
*Closed on every Monday at the end of the
month
Admission:
IDR 7,500 for foreign tourist
Jalan Pintu Besar
Tuesday-Friday: 09.00-15.00
Saturday-Sunday: 09.00-20.00
Admission:
IDR 10,000 for foreign tourist
Jalan Pantai Indah
Weekdays : 11.00-18.00
Weekend :10.00-20.00
Admission:
IDR 10,000 per person and required additional charge for each of entertainment
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Sunda Kelapa Old Port Taman Mini Indonesia Indah
Jalan Maritim Raya No. 8
Available all day
best view in the evening
Admission:
Free of charge
Jalan Raya Taman Mini
Monday - Sunday: 07.00-21.00
Admission:
IDR 10,000 for foreign tourist
• Hotels
As a developing city, there are a lot of hotel
in Jakarta for accommodation. Hotel in
Jakarta vary from one to five stars hotel with
different prices at each level. Here are the
list of several hotels in Jakarta:
Five Star Hotels:
• Mandarin Oriental
Jakarta
• JW Marriot Hotel
• Hotel Indonesia
Kempinski
Four Star Hotels:
• Century Park Hotel
• Millenium Hotel
• Hotel Borobudur
Jakarta
Three Star Hotels:
• Swiss-Belinn Airport
• Ayaka Suites
• Ibis Jakarta
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ECONOMIC OUTLOOK
Below are summary of major factors to consider before opening a business venture
in Indonesia.
-‐ 2014 Gross Domestic Product (Purchasing Power Parity): $2.676 trillion*
-‐ 2014 Gross Domestic Product (Official Exchange Rate): $ 888.5 billion*
-‐ 2014 Income per Capita (Purchasing Power Parity Estimate): $10,517*
-‐ Bank Indonesia Rate (dated June 16th, 2016): 6.5%**
Year Real GDP Growth*** Inflation (At the end
of each year)**
Unemployment (At the end of each
year)**
2009 4.60% 2.78% 7.41%
2010 6.20% 6.96% 6.80%
2011 6.50% 3.79% 6.32%
2012 6.20% 4.30% 5.92%
2013 5.62% 8.38% 6.25%
2014 4.97% 8.36% 5.9%
2015 4.74% 3.35% 6.2%
2016 (projection)****
5.3% 4.7% 5.2-5.5%
Source: *World Bank, **Bank of Indonesia, ***Trading Economics, ****State Budget Assumption
Indonesia managed to grow at more than 6% per year from 2010 through 2012 and
recently slowed down to below 5% in both 2014 and 2015. The newly elected
president, Mr. Joko ‘Jokowi’ Widodo’s made significant change in the State Budget
by reallocating fuel subsidy budget to infrastructure, health, and social assistance
programs. This is expected to fuel growth for the upcoming years, considering weak
global economy will cause export and investment to remain low.
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In 2015, some major macroeconomic events heavily affected domestic growth.
These included the decline of China’s growth; a persistent downtrend of commodity
prices; and a lower than projected world growth. All of these factors–together with
the failure of public spending to take the role of growth booster–contributed to the
sluggish growth in 2015. Nevertheless, the rupiah was traded at its weakest level in
the late September 2015, second only to the monetary crisis of 1998, adding up to
the nervousness of Indonesians in regards to the nation’s economy prospect. In
addition, to ease capital outflow and selling pressure on rupiah, Bank of Indonesia
decided to sustain the interest rate for the whole year, despite sufficient room for
policy relaxation provided by the low inflation. As a result, economy grew at only
4.74%, marking the continuation of the declining growth.
The Role of Middle Class in Indonesian Economy
Indonesia’s economy is growing rapidly, and a large portion of the population is
entering the middle-class and affluent consumer (MAC) socioeconomic category.
According to a recent Bloomberg article, Indonesia’s 250 million people are
currently “basking in a consumer and resources driven boom.”
Demographic trends show the size of the opportunity. There are currently about 74
million MACs in Indonesia, and this number will double by 2020, to roughly 141 million
people. During that period, some 8 million to 9 million people will enter the middle
class each year. These emerging middle income earners – said to number 35 million
– are proving eager and discerning consumers, who will seek out and pay for
quality. Furthermore, this large base of potential consumers is the underlying reason
that many multinationals consider Indonesia as their investment destination in South-
East Asia. A recent KPMG report elaborates that controlled wage growth and
sustained improving employment outlook will assist this trend to persist.
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In addition, since of this rising economic tide, Indonesians are extremely optimistic
about their financial futures—more so than people in any other country, including
both emerging and developed markets. They expect to make more money next
year than this year, and they believe that their children’s lives will be better than
their own. As those in this group begin to ramp up their spending in key segments—
such as home goods, vehicles, consumer durables, and financial services—this is a
critical window of opportunity for companies that sell consumer goods.
Economic Prospects
The year 2015 exposed a number of weak spots in Indonesia’s economic setup and
demonstrated that the country remains vulnerable to capital outflows. At the same
time, GDP growth slowed and consumer sentiment was dragged down by weak
currency and global market turmoil. To some extent, 2015 could be described as a
desperate year for a nation that was so confident with its economy prospect,
considering the economic reform the new president was planning for, and it begs
the question as to what 2016 will become.
Jokowi administration has a growth target of 5.3% to be achieved in 2016. This
forecast is influenced by rapid growth in public spending on infrastructure, private
consumption, and investment. These will be attained by ambitious expansive
monetary policy, which will then stimulate virtually every economic activities.
Additionally, the Tax Amnesty scheme is expected to increase capital inflow to
Indonesia; thus, provide more space for government to issue more bonds so that the
giant infrastructure projects could keep going. Finally, the introduction of several
economic packages would help increasing Indonesia’s ease of doing business
rating to improve the quality of business climate. These are the main reasons that
enable Indonesia to achieve the projected growth.
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SOCIAL CULTURAL ASPECT
With a population totaling around 255.5 million individuals in 2015, Indonesia is the
fourth largest country with regard to population size. Its ethnic composition is
characterized by a wide variety as the country contains hundreds of different ethnic
groups and cultures. Based on Indonesian Statistic Data (2016), Until December 2014,
Indonesia consists of 34 provinces, 17.504 islands, and 12.827 coastal islands. Over
the last forty years the country has experienced a process of rapid urbanization,
resulting in the current situation in which over half of Indonesia's total population
resides in urban areas (see table below). For the economy this constitutes a positive
development as urbanization and industrialization are necessary to grow into the
ranks of a middle income country.
1995 2000 2005 2010 2015
Rural Population (percentage of total population)
64 58 54 50 46
Urban Population (percentage of total population)
36 42 46 50 54
Source: World Bank Staff estimates based on United Nations, World Urbanization Prospects (indexmundi.com)
AGE STRUCTURE OF INDONESIA
One important strength of Indonesia's demographic composition in relation to its
economy is that the country has a young population. This young population implies
a - potentially - large workforce (thus making it of vital importance that this
workforce is absorbed by employment opportunities). Below Information is included
by sex and age group as follows: 0-14 years (children), 15-24 years (early working
age), 25-54 years (prime working age), 55-64 years (mature working age), 65 years
and over (elderly).
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Source: CIA World Factbook (Est. 2015)
0-14 years : (male 33,651,533/female 32,442,996)
15-24 years : (male 22,238,735/female 21,454,563)
25-54 years : (male 55,196,144/female 53,124,591)
55-64 years : (male 9,608,548/female 11,328,421)
65 years and over: (male 7,368,764/female 9,579,379) (2015 est.)
National Identity and Symbolism
Indonesia has a very wide cultural diversity. As the largest archipelago nation in the
world, each island of Indonesian geographic region has its own culture inherited by
past kingdoms. This situation is both a national treasure and also a source of many
identity problems. To unite all the different background and avoid primordial
behavior, the national motto “Bhinneka Tunggal Ika” is formed. It is an old Javanese
expression, which means "Unity in Diversity."
The Indonesian Government follows the presidential system based on the Five
Principles (Pancasila). Pancasila consists of five principles, namely:
25.82%
17.07% 42.31%
8.18%
6.62%
Indonesian Popula9on Age Structure
0-‐14 y.o 15-‐24 y.o 25-‐54 y.o 55-‐64 y.o > 65 y.o
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1. The Belief in One God;
2. A just and civilized humanism;
3. Unity of Indonesia;
4. Democratic citizenship led by wise guidance born of representative consultation;
5. Social just for all the people of Indonesia.
Business Etiquettes
Indonesian standard business culture is quite different. First of all, it should be
understood that there is no single Indonesian culture. Indonesia with its 17,000 islands
and hundreds of different ethnic groups is a vast collection of different peoples and
cultures. However, Javanese culture has long dominated the archipelago and is the
standard for Indonesian business culture today.
Successful business partnership can often be directly linked to one’s correct
assessment of the proper etiquette. There are several things that should be consider
by business people in Indonesia.
• Business relationships are based on trust in Indonesia. It is important to make
personal contact with potential partners when doing business here.
• Indonesia is a mainly Muslim country, therefore, it would be wise to get
acquainted with the major Muslim holidays and practices. For example, bringing
alcohol as a gift to a practicing and devout Muslim is inappropriate, as
consuming alcohol is forbidden in Islam.
• The business characteristics in Indonesia utilize the fundamental Asian values of
respect for hierarchy. It is considered to be impolite to have lower – ranking
employees from your company interfacing with the higher – level managers
from the Indonesian organization.
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• A manager in Indonesian companies is expected to take on the role of a father
with all the emotional and in-depth concern to gain much loyalty from
subordinates. Such bonding is more respected rather than task oriented quality.
• Meetings are usually formal occasions with formal body language and
communication patterns. It is important to always try to create a sense of
harmony and ease among meetings members. Time is less of an issue in
Indonesia than in many other countries. It is not unusual for meetings to start or
finish late.
• Handshakes are customary when meeting someone for the first time. Contrary to
many Western societies, where a firm handshake is a sign of a strong character,
most Indonesians apply only very light pressure to shake. Women’s hands may
be shaken as well if they offer to. It is also courteous to shake the eldest person’s
hand first, when meeting several people in a group.
• Negotiations can be lengthier than you may be used to from your country origin.
Multiple meetings may be necessary in order to come to a final decisions or
agreement. Refrain from hurrying your Indonesia business partners along, as this
may be taken as an offense.
• Indonesia is having a consensus based discussion culture. One of the
constitutional principles is to make decisions based on consultation and
consensus (“musyawarah dan mufakat“).
• This principle is also quite common in Indonesian business culture. Decisions are
made based on long lasting discussions and consultations between business
partners. It is not that important to find a solution which might the best one.
• A solution either if it is a contractual relation or any business deal must meet the
agreement of everybody involved. Indonesian culture is based on a collective
principle where everyone needs to agree in order to have a working solution.
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• One of the most important issues in Indonesia is building up good relation with
business partners. This process is time consuming and requires you to present
yourself more as a person rather than a businessman. This will set the baseline for
a good business with your partner.
• Nepotism is an undeniable element of Indonesian business life and it is essential
to have the right contacts in the right places. It may be necessary to have locals
make the initial introductions, often at an expensive price to pay. A mixture of
intense dependency on hierarchy and nepotism has resulted in the
development of extremely cumbersome bureaucracies, which requires
patience.
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INFRASTRUCTURES Public Transportation
TransJakarta Busway is an public
transportation in Jakarta that supported
Rapid Transit System. It has a separated
lane and station from other vehicles and
supplemented with air conditioner,
which makes the trip by the bus more
comfortable. TransJakarta services
operate from 05.00 AM to 22.00 PM. The cost of TransJakarta ticket is IDR 3.500
(USD 0.30) per trip at 07.00 to 22.00, or IDR 2.000 (USD 0.22) per trip at 05.00
AM to 07.00 AM. Since mid 2014, electronic ticketing system has been
implemented to TransJakarta. To ride TransJakarta Busway, people must buy
TransJakarta Smartcard in the nearest bank or merchant that collaborates
with TransJakarta.
Train and train stations in Jakarta has
been renovated and developed since
the year 2011 and now it has become
one of the major public transportation in
Indonesia.
Due to Jakarta traffic condition, train is
more effective and cost efficient transport rather than
using cars. Moreover some of the trains in Jakarta are
now equipped with air conditioner and a new seat
which makes it more comfortable. Train in Jakarta
operates for 22 hours with a varying price from IDR 2000
to IDR 5000.
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There are a lot of taxies in Jakarta. Basically, Taxies in Jakarta can be
classified into three categories based on the fare:
Name Class Cars Fares Telphone Number
Silver Bird
Premium • Toyota Vellfire • Mercedez Benz
C and E Class
IDR 9.000 (USD 0.7) and IDR 550 for every subsequent 100 meter or a minute in traffic
(+6221)7981234
Blue Bird
Moderate • Toyota Vios • Honda Brio
IDR 6.000 (USD 0.5) and IDR 300 for every subsequent 100 meter or a minute in traffic
(+6221)79171234
Express Taxi
Moderate • Toyota Vios IDR 5.000 (USD 0.38) and IDR 250 for every subsequent 100 meters or a minute in traffic
(+6221)1500122
Bajaj is a three wheeled vehicle used as
transportation facility and produced by Indian. Bajaj
is recommended only for short distance trip.
Additionally, bajaj is prohibited to enter the main
streets like Thamrin, Sudirman, Gatot Subroto and
HR. Rasuna Said (Kuningan).
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Communication
Jakarta has entered a digital era where its communication is now relying on digital
media. Most of the news in Jakarta can be accessed easily using personal
smartphone or gadget. As for the Internet in Jakarta, almost all Internet provider in
Jakarta is now supplemented with 4G with a minimum download speed of 1 Mbps.
The number of user of Internet in Indonesia has been increased to a number of 83.7
million users since then.
Future Plan
Mass Rapid Transit
The Development of Mass Rapid Transit (MRT) has grown rapidly and now is entering
construction stage. Indonesia MRT project is expected to finish at the year of 2018
with a total length of 110,8 KM and 13 stations. Supported by Japan International
Corporation Agency (JICA), this project costs around 15 Trillion Rupiah. The
development is forced by the future urban mobility trends, which mostly are
underground. The implementation of Mass Rapid Transit is a breakthrough for solving
the main problem in Indonesia, which is traffic.
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New Airport
Jakarta is now developing new terminal for Soekarno-Hatta International Airport
called "Terminal 3 Ultimate". With a unique modern design, Jakarta terminal 3
ultimate has 28 check-in gates with a capacity of 25 million passengers per year. This
new terminal is supported with solar cell energy that is eco-friendly. For access to
Jakarta Airport, bus stations and monorail is also supported by terminal 3 ultimate.
As for in Indonesia, Indonesia is now developing 15 new airport that is planned to be
build across Indonesia. Indonesia will also increase the length of airport runway in 27
locations.
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General Facts about Investment in Indonesia
Indonesia welcomes foreign investment on its own terms. Government
policies aim at ensuring that foreigners work with Indonesians to assist in
development of the country’s economy and skill-base. There is a general
recognition that Indonesia needs the development capital, and the technical and
management skills of foreigners.
Government regulation of foreign investment in Indonesia is manifested in a
variety of ways, for example:
• approved and monitored through governmental bodies
• companies can employ only a limited number of expatriates, and are required to
demonstrate plans for replacement of
• those expatriates by Indonesians (with the exception of expatriate directors and
commissioners)
• certain fields of business are closed to investment by foreigners
• foreign individuals are permitted to acquire land or land rights with a number of
restrictions.
A “foreign investor” is usually a foreign company incorporated under the laws
of its host nation; however foreign individuals are also acceptable.
Direct and Indirect investment
Law No.25/2007 concerning Capital Investment (“Investment Law”) defines
investment as Direct investment and Indirect investment. Indirect investments, also
known as Portfolio investments, are transactions made through the domestic capital
market/stock exchanges of a country. The Indonesian equity market is highly
institutionalized, whereby over the period from 2002 to 2014 foreign institutions
generally held around 65-70% of the free-float value of the Indonesian equity
market. At 31 December 2014, the foreign portfolio ownership was 72.1% of the Total
Free Float Value of the Jakarta Composite Index (JCI).
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The Indonesian government encourages Direct investment by foreigners or
Foreign Direct Investment (“FDI”) in most areas of the Indonesian economy, and less
so in others. Foreign investment approvals can be issued either by BKPM in Jakarta or
an Investment Board (BPM) in every Province, Investment Institution in Regency
Municipality or through Representative Offices of the Republic of Indonesia in
several countries.
26
Practical insights and observations
Indonesia has an abundance of foreign capital lining up for investment, but a
relative lack of readily identifiable targets and deals to invest in. For a combination
of reasons, deal origination, execution and completion presents significant
challenges right across the transaction cycle for foreign and local investors alike.
Sustained investment interest and transaction activity are accompanied by high
deal execution risks which translate into volatile country FDI inflows. It is common for
transaction and due diligence timetables to experience slippage, and the rate of
deals “falling over” or aborting is high. Reasons include overcooked pricing or
pricing mismatch, transactions structuring complications and other “deal breakers”
or deficiencies found in due diligence.
Despite all the challenges and frustrations, for foreign investors that
“get it right” by finding the right local Indonesian partner, and the right
“best fit” target at the right price, a not uncommon story is that a
multinational’s Indonesian investment can be its most profitable and
favorite in South-east Asia.
27
Many global and local PE firms, foreign strategic corporates and international
Trading Houses from diverse countries (with Japan and Korea featured prominently)
have prioritized Indonesia as one of their “Top 3” preferred FDI destinations in South-
east Asia, if not the destination of choice. A number of governments have also
openly signaled that Indonesia is their country’s preferred investment destination.
Post GFC, the large international PE Houses generally started to shift attention away
from China and India finding those countries’ investment landscapes too difficult,
crowded or overpriced, with better opportunities and less competition for foreign
capital in South-east Asia. There are indications that investment activity by global PE
Houses in Indonesia may finally be gaining some momentum and traction in 2015
after a slow start. Local PE Houses have been active to varying degrees for many
years.
2014 and 2015 has seen the potential for M&A deal origination opportunities with
Indonesian targets slowly starting to surface and become more visible, in what is still
however a seller’s market. The passing of time has seen prospects of opportunities
opening up for foreign investors in large, diversified family owned Indonesian private
company groups as the aging patriarch or a key decision maker becomes resigned
to the fact that immediate family succession options are “stretched too thin”, and
there being no option but to divest certain businesses, many of which are well
performing despite perhaps not getting the management attention they deserve.
Previous “willingness to sell” barriers may finally be starting to
alleviate within these often large diversified groups. A “prodical
son” or daughter returning from overseas studies and/or business
experience is usually more approachable and commercial than
his or her father, also bringing home a recognition that
partnering with the right foreign Investor can deliver scale,
expertise, a new customer platform or other values to a business
operating in a competitive Indonesian domestic environment to
preserve is longevity.
28
To conclude, there are risks and challenges in investing and doing business in
this emerging, high growth market, and Indonesia continues to be a difficult country
in which to do business, relative to Western or more developed Asian markets. A
successfully planned and executed investment however can be very rewarding.
Foreign investors, of course, take a country’s investment risk profile into their overall
investment models and decision-making policies. Indonesia is no different. To
successfully invest in Indonesia and reap the benefits from a large, rapidly
expanding population and all the upside of a quite remarkable economic growth
story, having a degree of risk appetite is fundamental.
29
ABOUT PRASETIYA MULYA AND PRASETIYA MULYA EXECUTIVE LEARNING INSTITUTE
PRASETIYA MULYA
Prasetiya Mulya was the first business school
in Indonesia to offer a Master of Business
Administration (MBA) program. The MBA
program was launched on 6 September 1982
with initial help from national and
international experts of professors who hailed
from overseas institutions such as Erasmus University Rotterdam, Arizona State
University and Lowell University and Texas A&M University, USA. As a business school
founded by prominent members of the country’s business community, Prasetiya
Mulya offers a leading program that emphasizes learning by actually implementing
business concepts in real-world situations. Today it remains the leading private
business school in the country, upholding the original aims of the founders to offer
the highest standards in business and management education for graduates,
undergraduates and executives.
Being founded by members of the country’s business community has ensures an
effective balance between theoretical knowledge and practical application within
the curriculum. To cater to the corporate sector, the school offers both degrees and
non-degree programs as well as research and training for individuals, local
companies and major multinationals. As the result, the school has a leading
reputation in delivering MBA program (following the regulation from Ministry of
Education and Culture, the degree was altered from MBA to Magister Manajemen
(MM) in 1993) that is relevant to the Indonesian and the international business world
since the establishment and Prasetiya Mulya is now benchmarking itself among the
leading business schools by undergoing the accreditation process for AACSB
certification.
30
Responding to the new realities of the global economic landscape following the
financial crisis and the continuing economic rise of the Asia-Pacific region, Prasetiya
Mulya has embarked on strategic shift in its focus at all levels of teaching and
research to specialize in Asian Business Studies. Entering this new phase in the
evolution of the school, Prasetiya Mulya will continue to forge links with similarity
focused institutions in the ASEAN and Asia Pacific region to become an
internationally renowned centre of excellence and point of reference in the field.
In 2016, Prasetiya Mulya University is established. Prasetiya Mulya open 9 new major
like Business Tourism, International Business Law, Business Mathematics, Food
Technology, etc.
The Prasetiya Mulya logo represents the structure of the MBA program that consist of
the foundation or basic module (integrated management process), 4 pillars of
functional management modules and the capstone module on strategic and
business policy management. The logo also shows a representative of Joglo, a
traditional Indonesian Javanese house. And the circle is stands for togetherness in
diversity and pluralism.
VISION
Outstanding learning partner for principled* business leaders
*principled business leaders: business leaders who have intellectual and moral virtue
MISSION
To develop business leaders to make meaningful contributions for the well-
being of societies
31
Moreover, Prasetiya Mulya also started its undergraduate program in 2005. Prasetiya
Mulya Undergraduate Program continuously develops team building spirit in a four-
year of study period. This process is starting with an out-bound activity for new
students, team-based project assignment, leadership workshop, and final business
project at the end of the program, as shown on pictures below.
Prasetiya Mulya has been accredited by national and international associations.
Referring to the Law (UU No. 20 of 2003) and Government Regulation (PP No.19 of
2005) also other policies of higher education that emphasizes on quality and public
accountability, it is necessary for Prasetiya Mulya to have accreditation on its
programs. Master Program (S2) accredited superior or "A" since year 2000. Whereas
in 2010, undergraduate program officially receive accreditation from the National
Accreditation Board (BAN) and obtained 374 (very good) from scale 400. This
accreditation rating has been using new forms of accreditation (Borang) which
include the legal aspects of government policies and accreditation processes that
accepted internationally.
32
Furthermore, in 2013, Prasetiya Mulya won a distinguished "Perguruan Tinggi Swasta
(PTS) Unggulan 2013" or Leading Private Higher Education Award from KOPERTIS
(Koordinasi Perguruan Tinggi Swasta) Region III DKI Jakarta, Indonesia in four (4)
categories. The competition is held annually that aims to improve the quality of
higher education sector and to facilitate learning session among private education
institutions in Jakarta.
Through strictly assessment and evaluation, Prasetiya Mulya won the first rank in 4 of
5 categories:
- Education Learning Process
- Research, Community Development & Services
- Student Affairs & Development
- Governance
33
PRASETIYA MULYA Executive Learning Institute
Prasetiya Mulya Executive Learning Institute is part of Prasetitya Mulya Business
School that focuses on business and management solutions related to Organization
Development, Performance Management, Human Capital Development,
Performance Management, Human Capital Development, Leadership Transition,
and Grooming Leaders through various forms of design and method of solution.
Prasetiya Mulya Executive Learning Institute has long-term relationships with leading
local and international companies based in Indonesia to support the development
of their human resources and business strategy and management. Developmemt
program is designed to improve specific skills and strategy to facing the future.
Our Vision
TO BECOME A REFERENCE AND PREFERENCE …
In developing business and management competencies, improving the
effectiveness of organizations and echancing the sustainability of the organizations.
(for clients)
In disseminating the inspiration the practitioners and bringing the solution to the
organizations. (for faculty of Prasetiya Mulya and consultants of ELI)
In exploring the real management challenges and developing the contextual and
applied knowledge. (for Prasetiya Mulya)
In living the life. (for people of ELI)
34
Our Values:
Caring
Consider to interests, needs, and problems of Participants, Partners, Guests, Peers, as
well as Social and Physical Environment
Humility
Humble, does not feel perfect or superior, eager to committing self development
Achieving
Desire to be “the best”, full of heart, innovative
Integrity
Honest, unbroken completeness, loyal to the mission and vision of organization
Prasetiya Mulya Executive Learning Institute offers to become a partner in human
capital development
to enhance the capability
to enrich the perspectives,
to elevate the confidence,
to improve the performance
to shape the future
by designing and executing
the relevant solutions
in terms of system, method and content
The prolonged service of Prasetiya Mulya Executive Learning Institute have been
commencing since 1980.
35
The meaning of the logo:
People raise his hands to represent the atmosphere of ' eureka '.
Symbolizes our commitment to provide inspiration to every constituent, thus they
could find a solution for a better future.
The letter ' V ' formed to represent the word ' victory’.
Symbolizes of the winning spirit should always be maintained. In addition, it also
symbolizes that through us, the winners was formed, honed and polished.
Kurtosis on the letter ' V ' indicates the sharpness.
Remind us to continue to hone ourselves so that we can provide a solution that is
sharp and accurate.
The circle represents the wave ripple out.
Symbolizes our presence should always have a positive impact to the world. Also
describes our hope that every person who set up with us can be a positive impact to
his organization.
The green color represents growth.
Symbolizes that everyone in the institution as well as those who are formed, honed,
and polished through us should grow and developed.
Dark blue symbolizes the robustness and bonding.
Describes that what we do should be based on a solid foundation. The color also
reminds us to bond with Prasetiya Mulya.
Lowercase letters in the logotype represents of Humility.
Reminds us for always be humble and friendly.
36
Prasetiya Mulya - Executive Learning Institute offers:
INTEGRATIVE SOLUTION and CONTEXTUAL to develop business management and
business leadership competencies, to bridge individual gap and equal standard of
competence.
INSPIRATION, NEW KNOWLEDGE, REFRESHING OR CONFIRMATION of business
knowledge through the materials in Prasetiya Mulya Executive Learning Institute
programs.
Alternatif to FORM, POLISH OR HONE the company’s talents through the systems and
methods applied.
PARTNERSHIP in a long journey to build and nurture human capital in organization.
Our Program
Public Programs
Short Course Human resource Management • Effective Leadership • Effective Supervisory • HR for non HR Manager • Problem Solving and Decision Making • Business Presentation and Writing (in English and Bahasa) • Training for Trainers • Managing People: Personality Perspective • Coaching, Counseling & Mentoring • Team Leadership • Talent Management • The New Manager • Golden Age Planning
37
Marketing Management • Building Powerful Brand • Negotiation Skills in Business • Effective Selling Technique • Integrated Marketing Communication • B2B-Sales-Presentation Financial Management • Financial Analysis • Basic Financial Management for Non Finance Manager • Personal Finance: Helping Your Staff to Improve The Quality of Life
Operation Management
• Effective Purchasing Management
• Inventory Management
• Operation Strategy for Business Competitiveness
• Supply Chain Management
• Project Management
• Risk Management
Strategic Course
• Effective Business Plan
• Strategic Business Analysis
• Business Process Management
• Corporate Valuation
• Innovative Marketing Strategy
• Intergrated New Product Development and Innovation
• Strategic Alliances in Business
• Pricing Strategy
• Strategic Execution
38
International Certification Program
Certification Program
• International Professional Certification Program in Purchasing and SUpply Chain
Management
• Sertifikat International di PSCM Module 1-6
• International Advanced in PSCM Module 7-12
• International Diploma in PSCM Module 13-18
Certificate Programs
Certificate of Business Management
• General Business Management
• Marketing Management
• Financial Management
• Human Resource Management
• Operation Management
• Business Strategic Management
• Certificate of Financial Performance Analysis
• Ceriticate of Strategic FInancial Management
Customized Programs
Programs of business management and capabilities and leadership development
that are specifiaclly designed, systematic, integrative, and contextual in
transforming ways of thinking and develop the capability of the businesses, and
formulate solutions for business leaders which are related to Organization
Development, Performance Management, Human Capital Development,
Leadership Transition, and Grooming Leaders through various forms of design and
method of solution.
39
These are some of Prasetiya Mulya Executive Learning Institute’s partners are:
Abbott Indonesia Charoen Pokphand
Adhi Karya Chandra Asri
Aerowisata Cigna
Angkasa Pura I Cipta Kridatama
Aqua Danone Charoen Pokphand
ASDP Indonesia Ferry Chandra Asri
Astra Agro Lestari Cigna
Astra Credit Company Cipta Kridatama
Astra Daihatsu Charoen Pokphand
Astra Graphia Chandra Asri
Astra International Cigna
Astra Isuzu Cipta Kridatama
Astra Otoparts Charoen Pokphand
Astrindo Group Ciputra
Asuransi Jiwa Manulife Indonesia Combiphar
Bank Central Asia Conoco Philips
Bank Syariah Mandiri Kementrian Keuangan RI
Bank BTN Djabesmen
BFI Finance EISAI Indonesia
Bogasari Flour Mills EPSON Indonesia
Bredero Shaw Indonesia Freeport Indonesia
Bumitama Gunjaya Agro Garuda Maintenance Facilities
40
Golden Retailindo Prudential
Indonesia Power PT Pos
Indosat Ramayana Lestari Sentosa
Jakarta Post Schneider Electric Indonesia
Jasa Raharja Sinarmas Forestry
Jiwasraya Sinarmas Land
Kalbe Farma SMART Agribusiness & Food
Kaltim Nitrate Indonesia Smart downstream
Kapal Api Global Sugar Group Companies
Kompas Gramedia Summarecon Agung
Local Governance Innovation for
Communities in Aceh (LOGICA 2)
TASPEN
Mega Central Finance Telekomunikasi Indonesia
Metro TV Telkomsel Indonesia
Minamas Plantation TNS Indonesia
Ministry of Trade and Industry Singapore Tugu Pratama Indonesia
Mitsubishi Chemical TRAC
Multifabrindo Gemilang Tripatra
PAM Lyonnaise Jaya Triputra Group
Perhutani Hutama Karya
Pertamina Indonesia CBP Sukses Makmur
PP Indonesia Fashion Week
41
AFLP PARTICIPANT Below is the list of AFLP 2016 Participants. SN Name (Dr/Mr/Mrs/Ms) Company / Organisation Name
1 Ms. Juliana Ang NTUC Income Insurance Co-operative
2 Mr. Jacky Ang Credit Suisse AG, Singapore Branch
3 Mr. Gary Chan Citibank Singapore
4 Ms. Chan Kok Seong United Overseas Bank
5 Mr. Ronny Chng United Overseas Bank
6 Mr. Goh Soon Hong DBS Bank
7 Mr. Kelvin Goh Morgan Stanley
8 Mr. Han Kwee Juan Citibank Singapore
9 Mr. Johnny Heng Nomura Singapore Limited
10 Ms. Lai Pei – Si Standard Chartered Bank
11 Ms. Elaine Lam OCBC Bank
12 Mr. Kelvin Lam United Overseas Bank (Jakarta)
13 Mr. Lee Guan Liu Standard Chartered Bank
14 Mr. Alvin Lee Maybank Singapore
15 Mr. Lee Lung Nien Citibank Berhad
16 Mr. Lee Shyong The Warranty Group
17 Mr. Lim Choong Meng Maybank Singapore
18 Mr. David Lim Bank Julius Baer & Co.
19 Mr. Lim Leong Guan UBS AG
20 Mr. Paul Lim Standard Chartered Bank
21 Mr. Philip Lim ANZ Banking Group
22 Ms. Claudia Loh Nordea Bank S.A. Singapore Branch
23 Mr. Alvin Mah Alpha Investment Partners Lts
24 Mr. Ravi Manchanda Westpac Banking Corporation
25 Mr. Jimmy Ng DBS Bank
42
SN Name (Dr/Mr/Mrs/Ms) Company / Organisation Name
26 Mr. Jeremy Ong NTUC Income Insurance Co-operative
27 Ms. Png Chin Yee Temasek International Pte Ltd
28 Mr. Alfian Sharifuddin DBS Bank
29 Mr. Shee Tse Koon Standard Chartered Bank
30 Mr. Jeremy Soo DBS Bank
31 Mr. Robert Sung Alpha Investment Partners Korea
32 Mr. Tan Chor Sen OCBC Bank
33 Mr. Gerald Tan ICBC Standard
34 Mr. Sebastian Tan Tokio Marine Life Insurance Singapore
35 Ms. Tan Ying Ying Deutsche Bank AG
36 Ms. Wee Wei Min OCBC Bank
37 Mr. Martin Wehling DZ Bank AG
38 Mr. Wong Taur – Jiun Rabobank Singapore
39 Mr. Kenneth Yeo HSBC Private Bank
40 Ms. Loretta Yuen OCBC Bank
43
PROGRAM OFFICER
Below is the list of Liaison Officer of AFLP 2016.
Ajeng Gusvidyandra
+62896 0156 2837
ajeng.gusvidyandra@pmbs.ac.id
Elita Chandra
+62812 8237 6942
elita.chandra@pmbs.ac.id
Nina Karina
+62852 8766 4571
nina.karina@pmbs.ac.id
Albertus Axel
+62812 9039 6462
albertusaxel@gmail.com
Anggi Indriani Tami
+62878 7329 1099
anggii.tami@gmail.com
Annisa Larasati
+62812 8850 927
annisalarasati.d@gmail.com
Arline Prinabela Ruslim
+62812 8591 0668
arlinepr@gmail.com
Davin Chandra Salim
+62818 0817 0719
davin.salim94@gmail.com
Denis Shunjaya
+62812 9595 9517
dsh.info@gmail.com
Fanuel Akwila
+62877 7452 3385
akwila.fanuel@gmail.com
Irene Giarto
+62812 1901 2051
irene.giarto@gmail.com
44
1. Police (Emergency)
2. Information (Public)
3. Fire Station
Fire Department (Central Jakarta)
4. Electricity (PT PLN) 5. Telephone Problem
6. Drinking Water Supplies (PAM Jaya) 7. National Gas Company 8. Ambulance Service
Health Department (Central Jakarta)
9. Search and Rescue (SAR) Natural Disaster
Jakarta Red Cross (PMI) 10. Flood Centre Flood Control (Central Jakarta) 11. General Toll Road Information 12. Postal Information 13. Jakarta (DKI Jaya) 14. Singapore Embassy
110, 112 108 113 384 1216, 344 1494 123 117 34833076 500 645 118 3813217 352 1111 129 390 8422 819 6945 384 6608, 380 3302 801 1735 161 113 2995 0400
45
REFERENCES
http://www.worldbank.org/
https://www.britannica.com/
http://flights.indonesiamatters.com/
http://www.jakarta-tourism.go.id/
http://www.bps.go.id/
https://www.cia.gov/
http://www.indexmundi.com/
www.indonesia-investment.com/
www.kpmg.com/
http://www.cnnindonesia.com/
http://finance.detik.com/
http://www.initempatwisata.com/
http://tekno.kompas.com/
http://www.krl.co.id/
http://www.bi.go.id/
http://www.worldbank.org/
http://www.tradingeconomics.com/
https://www.iseas.edu.sg/
http://www.bloomberg.com/
http://www.kpmg.com/
http://pmbs.ac.id/
46
APPENDIX
Sheraton Hotel
Contact Information
Address: Jalan. Sultan Iskandar Muda, Kebayoran Jakarta, Jakarta 12240 Indonesia
Phone: +6221 806 30888
Fax: +6221 574 806 30889
Mail: sheraton.jakartagandariacity@sheraton.com
Sheraton Grand Jakarta Gandaria City Hotel offers accommodation in the heart of emerging commercial hub and primer residential area in South Jakarta. The hotel has an outdoor pool and views of the city, and guests can enjoy a drink at the bar. The hotel is a part of a superblock complex offering a retail shopping mall, offices and convention/exhibition facilities. Sheraton Grand Jakarta Gandaria City Hotel is 5 km from the central business district and 32 km away from Soekarno-Hatta International Airport. Halim Perdanakusuma Airport is 11 km from the property. This property is also rated for the best value in Jakarta! Guests are getting more for their money when compared to other properties in this city.