Trust our National Industry Products

the magazine of the geRman-inDoneSian chambeR of inDuStRy anD commeRce

VOL. XXI / 4 / 2012

A L I M M A R K U S

Trust our National Industry ProductsThe journey toward success is a process rather than instant. The key is to have the right motivation.

eXcLuSiVe inteRVieW

CHATIB BASRIthe chaiRman of inDoneSia’S inVeStment cooRDinating boaRD

Jan H. RönnfeldDelegate of the german industry in indonesia

managing Director of eKoniD

Managing Director & Editor-in-Chief:

Jan H. Rönnfeld

Editor-At-Large: Maria Gracias

Reporter: Dennis Lischer, Iwan Sagi Nasution

Copywriter: Dennis Lischer

Contributors: Adrian Nugraha, Allystia Mutiara Renti, Daniela Gekle, Dennis Lischer, Erick T, Iwan Sagi Nasution, Karina Saputri, Margareth Pohan, Prieta Perthantri, Silke Helmholz, Stephan Blaschek

Translation: Dennis Lischer

Design & Layout: Bagus Ajie Mandiri

Photography: Aam Muharam, Iwan Sagi Nasution

Production Supervisor: Andi A. Maulana

Print: PT Persada Utama Tirta LestariPublisher is not liable to any content printed in this magazine

Circulation: Iwan Sagi Nasution, Nadia Agustina Septiani, Kusyanto

Digital Edition: http://indonesien.ahk.de/en/publications/media/sorotan/

E-Magazine Layout: Syafruddin Arief

Advertisement: Mei Tobing, Audya Cristina

Bank Details:Deutsche bank, Jakarta000-5355-01-0 (Euro)cimb niaga bankJakarta, Menteng Branch202-01-00041-00-9 (Rp)

Next Issue: Next issue of SOROTAN will be published in December 2012. * All opinion expressed in articles do not necessarily reflect the views of EKONID.

THE MAGAZINE OF THE GERMAN-INDONESIAN CHAMBER OF INDUSTRY AND COMMERCE

F O R E W O R D

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. 6221-3155276E-Mail: [email protected], website: www.ekonid.comSubscription: If you wish to subscribe to the SOROTAN Magazine, please contact: [email protected]: If you wish to contribute your article or if you want your company event to be covered by SOROTAN, please contact: [email protected]

Dear Readers,

indonesia, the largest economy in Southeast asia, is much less affected by the global financial crisis compared to its neighboring countries due to growing local consumption and rising investments. the countries gDP grew by 6.2 to 6.4 percent in the first three semesters of 2012, making it the fastest growing g20 economy after china. for this very reason, indonesia has become an ever more interesting business partner and investment haven for many, including companies the european union. Some uS$20 billion have been invested by european companies in indonesia in the past 20 years, creating more than 1 million jobs for indonesians. trade between indonesia and eu enjoyed a robust increase of 22 percent last year.

the eu-indonesia business Dialogue (eibD) that was held on november 8-9 in nusa Dua, bali, hosted a numbers of bilateral sectoral working groups, and the 250 participants discussed ways and opportunities to increase trade and investment even further. as a response to the growing integration of the aSean nations, the german chambers of commerce and industry (ahK) launched the so-called the german aSean chamber network (gacn), during their asia Pacific conference (aPK) in new Delhi, on 1 november 2012 with the presence of germany’s federal minister of economy and technology, Dr. Phillip Rösler. the gacn is aimed to strengthen regional corporate cooperation within aSean and to support trade and investments.

the chairman of indonesian investment coordinating board (bKPm), Dr. chatib basri, revealed in an exclusive interview for SoRotan an investment target of uS$50 billion by 2014, and a number of changes that he will introduce in his organization to improve its service excellence, before he left for germany to participate in the “indonesian business Day” in Düsseldorf on november 15th and some high-level meetings with potential german investors.

in another exclusive SoRotan interview indonesian conglomerate alim markus, ceo of maspion group, conveys his optimistic view that with quality and good after sales service made-in indonesia products will continue to flourish in the local markets.

an inspiring story came from indonesian marketing guru, hermawan Kartajaya. We chose to profile him in this edition highlighting his success of becoming asia’s leading marketing strategist. together with world marketing guru, Phillip Kotler, he published several international best-selling books about the fundamentals of marketing.

Last but not least, as a successful bilateral year 2012 is already wrapping up, we would like to wish you a very merry christmas and happy new year. enjoy your read!

SoRotan eDition 4 / 20125

SoRotan eDition 4 / 2012 6

EXCLUSIVE04 Service Excellence - An interview with Chatib Basri, the

Chairman of BKPM maRia gRaciaS

ECONOMY06 Playing Chess with the Rising Star maRgaReth Pohan

12 Prospects and Investment Opportunities in Riau Islands

14 The Nature of Competition eRicK t

UP CLOSE & PERSONAL18 Hermawan Kartajaya: “I eat, sleep, think and dream

marketing.”

PROMINENT ENTREPRENUER22 Alim Markus: “Business has no

standard formula.”

NEWS & BRIEF26 Jakarta’s former governor on

Urbanization issues26 AEC Symposium27 Yuan: the new world’s currency28 Sailing through Rough Waters26 AEC Symposium29 Booming German IT Industry

Attracting International Talent29 Germany: Open to Investors

HIGHLIGHTS32 Asia-Pacific Conference of

German Business33 German-ASEAN Chamber

Network34 Indonesia Trade, Investment, and

Tourism Forum36 Learning from 20 years of

Decentralization Support37 Indonesia GDP May Overtake

Germany and UK38 new Berlin Brandenburg Airport40 Initiative Mittelstand

CULTURE66 Water, the most abundant

compound in nature68 Ujung Kulon National Park69 Winter Wonders Festival Brussels70 Christmas Tradition in Germany

COVERPuRnama muhaRam

41 New Start for Jokowi42 IIMS & JMCS 2012

LEGAL43 Amendment to Regulation

No. 27/2012 (API-U and API-P)

EKONID NEWS46 KEPRI Business Forum47 Human Capital Club48 German Unity Day49 European Joint Gathering50 Get Together52 Oktoberfest53 Company Outing54 Premium Partners56 Member News

TRADE FAIRS58 BAUMA 201359 Trade Fairs Highlights64 Trade Fairs Calendar

30Strong Effect onEconomic Growththe european indonesia business forum hosted a numbers of bilateral sectoral working groups. hudreds of participants discussed ways and opportunities to increase trade and investment even further.

e ibD 2012:

ERRATA: as requested by Pt Samudera indonesia, the sentence “fortunately, a friend who had gone through a similar crisis situation helped out, and he was able to set the procedures of things.”appearing in our last edition should read “fortunately, our Deputy President Director who previously worked at multinational companies has gone through a crisis management like that, so he was able to set the procedures of things. - Editor

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INSET PICTUREWWW.PReSiDenRi.go.iD

Keeping Guangzhou’s skies blue with the blue water of Yunnan.Siemens answers for energy help supply the power that drives economies.

siemens.com/answers

In China Siemens technology enables a high-voltage direct current (HVDC) line to carry the hydroelectric energy of Yunnan’s powerful rivers in the north, nearly 1,500 km to the booming cities of Guangdong with minimal loss of electricity along the way. In India the Talcher-Kolar HVDC line means more efficient mass transmission of power over 1,400 km to South India, where big factories and small businesses can now run at their full capacity ensuring faster economic progress in the region. Whilst in Europe, a 260 km cable beneath the

North Sea improves the connection between the UK and the Netherlands ensuring Britain is better prepared to compensate future fluctuations in power generation due to the increasing number of renewables. All around the globe Siemens is committed to finding new ways of transporting energy efficiently and cleanly from wherever it’s generated to wherever it’s needed. That’s why every day we’re working with the world to create answers that will last for years to come.

8SoRotan eDition 4 / 2012

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E X C L U S I V EI N T E R V I E W

set an investment target of Rp 500 trillion by 2014. A rather ambitious target given the fact

that you’ll only run the office for two years?

the target is ambitious, yet achievable. the target for 2012, is Rp 284 trillion, which up to the third quarter has been 80 percent achieved. in recent years investment has grown by around 30 percent annually. given this, we’re confident that the 2014 target will be achieved. the strong flow of investment into the country is a result of both pulls and push factors. other parts of the world are experiencing slowdown, while indonesian economy offers higher return given it’s strong performance and the size of its growing middle class, sets within the context of political stability.

Have you created new policies at BKPM or any plan of doing so in the near future?

We now focus on ‘service excellence’. We strive to facilitate investors who are committed to invest in indonesia. We revamped our investor Relation unit, we improved our front-office service, and we assist investors in liaison with local governments and line ministries.

What type of investments will you prioritize?

We will focus on value-adding investments that will help bring indonesia into the next stage of development, not only investments that are sizable, but also the ones that bring with them technology transfer and human capital development. While indonesia is advantaged with its natural resources, we should try to leverage investment that adds more value to the materials, beyond extracting.

Any measure to boost investment in underdeveloped areas?

bKPm supports the indonesian government economic development masterplan, known as mP3ei, which divides the country into economic corridors based on the natural

advantage of various geographies. following this, we strive to bring investment into non-traditional locations, including eastern indonesia. We have talked with australian cattle breeders, for example, to lure them into investing in nusa tenggara.

Aside from lack of infrastructures, why do you think Indonesia still lags behind China or India?

in terms of gDP per capita, indonesia outperforms india. While china and india are experiencing slowdown, indonesia is now the second fastest growing economy among the g20 members. most investors are not as familiar of the country compared to china and india, and this makes the job of attracting investment more challenging.

A 2011 survey by KPK revealed that BKPM is one of the cleanest institutions in the country. Why do some potential investors still have to pay ‘under the table’ money to speed up the bureaucratic process? Any measures to improve transparency?

if you visit the bKPm office today, you’ll see that it would be very hard for you to bribe, if you wanted to. all processes are transparent and free of charge, and investors who feel that they are pressured into paying can report. i even have visitors reporting directly to me through SmS or twitter whenever they see the slightest inconvenience. nonetheless, we strive to make the process even more transparent. We just launched an online tracking system where investors can enter a Pin number into the bKPm website to trace on which table their application currently lies. this increases the pressure on the bureaucracy to be even more expeditious, and adds an extra element to monitoring activities.

SERVICE EXCELLENCE


“We will focus on value-adding investments.”

DR. muhamaD chatib baSRi, the chaiRman of inDoneSia’S inVeStment cooRDinating boaRD

YOU

m a R i a g R a c i a S

The Downturn of Tradeeconomy outlook becomes a hot topic whenever we reach

the end of the year. the third quarter of 2012 has shown an increase of 6.2 percent from the same period last year. it is slightly below the government expectation revealed earlier at 6.5 percent growth for a steady full year. the slowest rate of growth since the third quarter of 2010 slower growth is assumed due to a slowdown in indonesia’s major trade partner, china. With 11 percent of indonesia’s total commodities being exported to china, it isn’t a surprising fact that the slowdown of the economy in china directly impacts indonesia.


With the RiSing StaRS

White always moves first. after the initial move, the players alternately move one piece at a time. Pieces are moved to either an unoccupied square or one occupied by an opponent’s piece, which is captured and removed from play.

all pieces capture an opponent’s piece by moving to the square occupied by the opponent’s piece. a player may not make any move that would put or leave his king under attack. if the player to move has no legal moves,

the game is over; it is either a checkmate – if the king is under attack—or a stalemate - if the king is not. (Rules in Playing chess)

Indonesian Investment 2012

m a R g a R e t h P o h a n

THE

notwithstanding that indonesia remained resilient against the western world crisis, the country is very vulnerable to china’s economy. indonesia’s exports in august fell 24.3 percent, the deepest slump since mid-2009. While enjoying the rise of palm oil and mining commodities that comprise over two-thirds of total exports, indonesia must experience the negative spillover of a weaker chinese demand.

Save by Investment & Middle Class BoomStrong investment and domestic spending come as a great relief as they save the growth to meet the world’s expectation of being one of the best performers in asia. the investment board (bKPm) recorded uS$ 25.54 billion realization of domestic direct investment for the periode of January to September 2012. Direct investment contributes approximately 11.2 percent to economic growth.

the way indonesia became resilient during the global crisis in fact is a magnet to investors - shown by 25 percent year on year increase in terms of investment. the country gained more trust from its people as in the third quarter, domestic investment recorded 32.6 percent increase, surprisingly ten percent higher if compared to the growth of foreign investment.

Local investors play in the area of primary sectors such as non-metallic mineral, food & plantation, textile and industry. While two top foreign investments go to chemical – pharmaceutical and mining industry.

a population of 240 millions also makes a heroic contribution in rescuing the growth. indonesia’s resilience thanks to the middle-class boom which now

comprises about 60.0 percent of the population (central bank Survey, 2011). Stronger economy has turned middle-class households richer in net worth assets, income and ability to repay loans while improving household conditions also triggered consumption and therefore spurred economic activities. this is the role of the middle class in improving the overall economic growth and managing inflation.

The Rising Stars: Palm Oil & Miningit is for the first time direct investment has become the biggest contributor to the economic growth. Palm oil is still favored by domestic investors. having started out as a key exporter of crude Palm oil, the indonesian producers are starting to consolidate their dominant global positions by going further downstream.

E C O N O M YI N V E S T M E N T


as 70 percent direct investment comes from outside the country, leading the foreign Direct investment were mining sector that surprisingly reached the same level with chemicals and pharmaceuticals of uS$1.1 billion.

Play Chess with the Rising StarsPalm oil and mining, the rising stars, is an evidence of a unique combination of large population and rich natural resources, making it as an attractive investment destination of a well-diversified economy and big consumer base market. the nature of investment attractiveness will only work by the role of government in enabling the country to remain an attractive place in doing business.

thus framework does matter. every movement made by government will

OthersRp 8.2 t

Non Metallic MineralRp 5.9 t

Food Crops and Plantation

Rp 2.0 t

Food Rp 4.6 t

ConstructionRp 1.9 t

TextileRp 2.0 t

Domestic Direct Investment

OthersuS$ 2.1 b

Chemical and Pharmaceutical

uS$ 1.1 b

Paper and Printing

uS$ 0.7 b

Mining uS$ 1.1 b

Vehicle and Other

TransportationuS$ 0.5 b

Transportation, Warehouse and

TelecommunicationuS$ 0.8 b

33.7%32.6%23.5%

18.2%

7.7%7.7%

7.6%

17.6%

16.8%

12.8%10.3%

8.7%

Foreign Direct Investment

be fair and clear, what investments are permitted, what aren’t; and what the rules are as well as what the regulations will be going forward.

Opening Game: Aggressive Movement of Divestment Policy toward Mining Nationalizationthere are dozens of different openings in a game of chess, varying widely in character from quiet positional to very aggressive moves. as mining becomes a rising star in the country’s economy, the indonesian government moves aggressively in terms of a mining

determine its position whether can move forward, keeping the status quo nay step back. government is like a player at game of chess when it comes to making frameworks. they must anticipate every possibility of feedback in order to save what they intend to protect. a wrong move may lead the country to a chaotic situation, either a checkmate or a stalemate.

framework is a dynamic strategy aimed in a single direction: to secure the situation to be able to make legal movements in a longer period, avoiding a checkmate or stalemate situation. in all parts of the world, frameworks are dedicated to protecting domestic industries, in particular those that give the highest contribution to the economy. Without protecting its own industries, a country may be occupied by another’s economy. on the other hand protection discourages opportunities.

most of the time frameworks change rapidly, coming up with only minor adjustments to aggressively change the rules of the game. but the government must create certainty to convince every subject within its economy that they are in a fair game. for investors, uncertainty leads to frustration. Rules of the game must


framework. Starting with requiring majority or wholly foreign-owned companies holding mining licenses in indonesia to divest a majority share of the company — a minimum of 51 per cent — to an ‘indonesian participant’ after 10 years of production. for foreign investors, this will mean a mandatory divestment of equity. the situation discourages foreign investors as mentioned above which at the moment have shown much interest.

the following attack was even more aggressive by prohibiting the export of raw mineral ore by 2014. mining contributes 17 percent to indonesia’s gDP in 2011 and now the country is banning the export of 32 types of unprocessed metals. the framework also requires miners to establish

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When making frameworks, Government is like at a game of chess. A wrong move may lead the country to a chaotic situation, a checkmate or a stalemate.

Project Developer Commodity Location Investment Value

Vale indonesia (brazil) nickelSorowako, South Sulawesi (Smelter). bahodopi, central Sulawesi (Refinery)

$2 billion

eramet (french) nickel & cobalt mine

halmahera island in north maluku $6 billion

aneka tambang (indonesian State own) aluminum tayan, West Kalimantan, $ 450 million

aneka tambang (indonesian State own) aluminum Pontianak, West Kalimantan $ 1 billion

united arab of emirates aluminum Kalimantan $9.5 billionaluminum co. Ltd (india) aluminum east Kalimantan $ 4 billionharita Prima bauxite West Kalimantan $ 1 billioncita mineral bauxite West Kalimantan $ 1 billionbeijing Shuang zhong Li investment management co, Ltd (china)

aluminum West Kalimantan $7.1 billion

oriental mining and minerals Resources co Ltd. and Rui tong investment co Ltd.

iron West Java $ 1 billion

indosmelt (indonesia & australia) copper maros, South Sulawesi $700 millionnusantara Smelting corp & norisk nickel (indonesia – Russia) copper bontang, east Kalimantan $ 1 billion

inalum (Japan- indonesia) aluminum north Sumatera $ 700 millionSolway group nickel Konawe, Southeast Sulawesi $ 3 billionbatulicin Steel (indonesia – china) iron Steel na $ 1.8 billion

coal india coal mine, Steel & Seaport Kalimantan $ 3 billion

Jasindo utama mangan east nusatenggara $ 115 million

List of Mineral Smelting & Refinery Investment Plans – 2012


a smelter or cooperate with other companies to process their mineral ores for export. miners are only allowed to ship their ores if they submit the downstream proposal, either to build smelters or refineries; regardless, ores are subject to a 20 percent tax.

Protection is always comes with pros and cons. Restricting raw mineral export has a positive meaning on the context of giving added value to mining products, increasing state income, as well as controlling mining exploitation operations. however, the country must experience the immediate impact of slower mineral exports, particularly nickel and copper.

overseas countries such as Japan or china have shown opposition to the regulation. Japan, the world’s second largest nickel consumer, has called on indonesia to repeal the ministerial decree and has threatened to file a complaint with the World trade organization (Wto). Japan imported 3.65 million tons of nickel ore last year, of which 53 percent came from indonesia. indonesian nickel association (ani), who opposed the government policy, revealed that most mining companies were not ready to construct the much needed smelters.

but the chess game keeps scrolling toward risks. in august the government received 185 proposals, valued at uS$ 555 billion in investment – or more than two-thirds of the national growth Domestic Product (Ruby Rubiandini – Deputy minister for energy mineral Resources).

The Middle Game – Palm Oil Goes Furtherthe middle-game is the phase in which most combinations of strategies occur. combinations are a series of tactical


moves executed to achieve some gain. the palm oil industry goes further into the middle game. they face two options of movement: enjoying the revenue from cPo export while still pushing the investment to go further downstream.

as palm oil is growing tremendously, this primary sector has significantly contributed to the country’s economy. the situation has also given birth to new domestic conglomerates. to date exporting cPo is already giving much profit to these conglomerates, so the only way to encourage them to invest in downstream is by restructuring export duty and incentives.

the government moves forward the pin through fiscal acceleration by restructuring export duty i.e. a wider tax margin between crude and refined palm oil. Since august 2011, the export tax cap of 25 percent was cut by half by the ministry of trade by for palm oil products, now only 13 percent while cPo export tax was reduced only by 2.5 to 22.5 percent.

this resulting cPo price in the country

became lower than the world price. on top of that, end products such as cooking oil, soaps & detergents exports are tax free. as expected, this move has proved a catalyst for the industry, encouraging large domestic firms to channel investment into their downstream operations and boosting production of refined palm oil.

the policy change has been felt throughout the palm oil sector and appears to have encouraged refiners to expand their operations in the country. Within 2-3 years time, investment realization in palm oil downstream industry is predicted to reach uS$ 2.8. billion.

Investors Value in US$

Wilmar group 900 million

musim mas group 860 million

PtPn iii & ferrostaal 350 million

Sinar mas group 250 million

Permata hijau group 220 million

Domba mas 180 million

VVf indonesia 100 million

Major Investment in Palm Oil Downstream - 2012


Palm oil has significantly contribute to the country economy making indonesia one of the largest palm oil producers in the world together with malaysia.

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Concluding the Game aggressive movements should perhaps be done if really needed since it uses up much energy. While the mining industry is considered fragile due to sensitive factors such as land clearance, environmental issues, local welfare/income distribution among others, making such aggressive movement without anticipating feedback will result in a check-mate.

the divestment policy may impact the attractiveness of investing in mining sector since foreign investor argue that 10 years is insufficient for them to make an adequate return on their investment. Restriction of mineral ore export is threatened by infrastructure issues. Particularly electricity shortage, while these upcoming smelters and refinery facilities require extra gigabytes of power, the country is still struggling to keep up with the energy demand. it will be very difficult for smelters and refiner to complete or even start the construction. mining companies will probably be unable to comply with the government’s ban to export unprocessed minerals by 2014.

the palm oil downstream industry will continue toward the ending phase. everyone is looking forward whether frameworks created by the

government are going to run smoothly. if it works, continued investments in the downstream sector should not only put more value into the country’s palm oil supply chain, but it can spread to the wider economy like a snowball effect i.e. employment opportunities, cheaper products available, technology adoption, etc.

the fact that indonesia successfully carried out many reform programs and investment machine policies has helped improve its image among both foreign and domestic investors. So far, aggressive movements in mining and encouraging policies in palm oil have both saved the country’s economy during the trade downturn.

the future lies on how government framework leads the game. a chess game is unique in that it does not end with conquering the opponent. a game may also result in a draw in several ways, where neither player wins. and now the world is still watching how government plays their role in the game, as mentioned by the chairman of bKPm, mr. muhamad chatib basri during the investment Summit 2012 in Jakarta: When we talk about asia, we often mention two growing zones, which

Margareth Pohan – is an Economist, currently working at a global consulting firm. She has extensive experience in development projects having previously worked in the area of poverty & good governance. She is also an associate at the Center of Election and Political Party (CEPP) University of Indonesia, where she pursued her Master’s of Economics in Planning and Public Policy and her Bachelor’s in Political Science. Further information: [email protected]

were: the greater china and the greater india. yet, the one that should not be forgotten is the greater indonesia, a country with an estimated population of 240 million people. indonesia is the center of the economic growth in aSean. indonesia’s economy, covers 48 percent of the aSean economy and it’s populations makes up 42 percent of the total aSean population. this condition has made indonesia a country that should not be missed by the investors who want to invest in the region”

The future lies on how Government framework leads the game. And now the world is still watching how government plays their role in the game.



on one of the world’s oldest and busiest

shipping routes, the malacca Strait, these three islands offer easy access to growing asian markets and global supply chains.

“We implement the under one-roof policy to simplify investment licenses and permits both from the indonesian central government and local government of batam, bintan and Karimun,” said Rustam hutapea, Director of investment and marketing of batam indonesia free zone authority during a special business forum held by eKoniD and

the Province of Riau islands recently in Jakarta. among the advantages of investing in the ftz are no import/ export tax, no Vat, gSP facility (generalized System of Preferences), double taxation avoidance agreement with 58 countries, and competitive investment & operation cost.

over 1,100 foreign companies have already invested over uS$ 9 billion dollars in the Riau islands. Ranging from prominent multinationals to small enterprises, these and other firms operate in sectors including technology, medical equipment,

electronics, industrial assembly, telecom, agribusiness, infrastructure, textiles, healthcare, ship-building, energy and other services. according to andy haw, Senior manager of Pt batamindo investment cakrawala, huge opportunities exist in the islands of batam, bintan and Karimun.

“the prospect is bright as it also supported with good facilities. for example, our industrial park has one of the highest occupancy rates at 85 percent and bureaucracy is definitely not a problem here.”

Prospects and Investment Opportunities in Free Trade Zone

Batam, Bintan, KarimunOften called Singapore’s backyard, the islands of Batam, Bintan and Karimun are set to be Southeast Asia’s Premier Free Trade Zones (FTZ) as the province of the Riau Islands is determined to create an environment for market access, stable growth, and low costs.


LOCATED

@ WWW.SKyScRaPeRcity.com

a special business forum held by eKoniD and the Province of Riau islands entitled ‘Prospects and investment opportunities in free trade zone batam, bintan, Karimun (bKK)’ was held on 14 november 2012 at intercontinental Jakarta midPlaza hotel. also delivering a presentation was Rudy Salahuddin, Director of investment Planning for Services and zone indonesia investment coordinating board (bKPm) and aostoerullah aziz, Vice Secretary of bbK free zone council.

the Riau islands provincial government, investment promotion agencies within individual regencies and the batam industrial Development agency, in coordination with the indonesia investment coordinating board (bKPm), are all working together closely to provide a “one-stop” business facilitation service. additional support is provided by a range of other organizations within indonesia, Singapore and Southeast asia. the province also offers a premium quality of life and is indonesia’s second most popular international tourist destination.

FOREIGN41.2%

US$ 6.11 Billion

DOMESTIC38.7%

US$ 5.73 Billion

GOVERNMENT20.2%

US$ 2.99 Billion

Total Investment(up to December 2011)

TOTAL INVESTMENT: US$ 14.83 Billion

FACTS

• the islands of Riau Province is approximately 20km from Singapore

• easily accessible due to its location at the tip of the malacca Strait

• germany is only a single flight away

• there are more than 90 ferry trips a day with passenger ferries service bound to Singapore from five ferry terminals

• there are four sea cargo ports in batam island alone, namely Sembong citra nusa, batu ampar, Sekupang, and Kabil.

• batam island has been developed for 40 years as a growth engine of indonesia with gDP of 7.7 percent in 2011

• Seventy percent of economy’s growth stems from manufacturing with 10 percent internationally exported

• as per first semester of 2012, 44 foreign companies approved

to invest in batam with total investment of uS$ 112 million

• 315,000 industrial labor and 75,000 informal workers

• minimum wage now is uS$ 150

• 26 industrial estates, 1,349 multinational companies, 10,000 Smes

• to date there are 10 german companies (100% and joint ventures) in batam island

INVESTMENT INCENTIVES

• no import/ export tax• no Vat for all processing

industry for export purposes

• gSP facility (general System of Preferences)

• Double taxation avoidance agreement with 58 countries

• competitive investment and operation cost



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and china have gradually reduced many tariffs

since the clock struck midnight on new year’s eve two years ago where the giant dragon and 10-Southeast asian countries ushered in the world’s third largest free trade area. and just three months ago, on September 2012, trade ministers of aSean countries and their counterparts from china, Japan, South Korea, india, australia and new zealand agreed to press their leaders to start immediate talks on the trade zone. it is very much expected that this will transform the region of more than 3 billion people into one large integrated market with combined gDP of nearly uS$ 20 trillion, a third of the world’s current annual gross domestic product. and although these 10-member state of aSean countries—Singapore, malaysia, indonesia, brunei Darussalam, cambodia, the Philippines, Laos, thailand, Vietnam, and myanmar - have already separate trade agreements with six partner

countries, the idea of combining all these

existing free trade agreement into one has to be praised as a bold move to deepen integration in this most dynamic region in the world.

“i talked about the five ftas that we have with the six countries. We are now putting the five together into one agreement that will be launched later this month in Phnom Penh,” aSean Secretary general Surin Pitsuwan told some 350 participants at the 13th asia-europe business forum in Vientiane, the capital of Laos.

the Southeast asia region is currently positioned behind only the european economic area and the north american free trade area, in volume, according to reports from the new york times. today, aSean has a combined gDP of uS$ 2.4 trillion, which is larger than that of india alone, of australia and new zealand combined, and of South Korea. however, aSean still needed support from its dialogue partners, especially as it is pledged to become a single community by 2015. a possibility

of having such agreements with the european union is also raised as trade between the two regions grew by 6 percent in 2011 alone amounting to about uS$ 240 billion. export from eu to aSean had also recorded an astonishing number amounted at uS$ 444 billion, according to Secretary general Pitsuwan. that is an increase of 17.8 percent compared to the previous year. “this means that while we are maintaining our dynamism, we are importing services from europe,” Pitsuwan said. however, the fact that the eu is outgrown by number—as it has 27 member countries, is probably the biggest challenge to put into realization as it is considered too complicated. eu is currently the second largest trading partner for aSean after china, while aSean is the eu’s third largest trading partner.

“this is where both the business communities in aSean and the eu must engage themselves to mitigate the effects of these new dynamics, through trade, through investment, through technology, to further elevate our partnership, our cooperation and

E C O N O M YF R E E T R A D E A G R E E M E N T

of comPetition

aSean haS a COMBINED GDP of uS$2.4 tRiLLion


Given fact that the western economy is struggling in other parts of the world, Asia is actively pursuing the so called trade liberalization and with the coming Regional Comprehensive Economic Partnership (RECP) or also known as ASEAN+6, on the way, ASEAN countries are only a step away to lead the world’s economy.

e R i c K t

ASEAN

our connectivity, so that more opportunities can be created and more businesses are able to take advantage of our partnerships and to alleviate or reduce the uncertainties within the two regions,” said Pitsuwan.

Competition among ASEAN countriesas the world economy shifted eastwards and eyeing brightly toward the Southeast asian region, an even tighter competition among aSean countries have become sturdy. While many raise hopes on the free-trade zone, some fears about china‘s unstoppable growth.

indonesia is one of those nations who are concerned if cheap chinese goods will inundated their markets once import taxes are removed, making it more difficult for them to retain or increase local market shares. When the regulation has just take in place two years ago, the textile and steel industries in indonesia are the one who particularly nervous about lifting the tariffs as they have been prompting the government

for a delay on some provisions. but thanks to its vast natural resources, large domestic market and low labor costs, foreign direct investment has increased significantly in recent years-once here, they stay for the relatively stable political environment and rapid economic expansion. furthermore, indonesian consumers and producers of natural-resources commodities today were the ones who are taking the most benefits from this free trade zone between the two economies. indonesian raw materials and natural resource-commodity producers were also enjoying robust business since the aSean-china fta pact took into effect in January 2010. they exported more natural resources commodities to china that is hungry for raw material for its fast-growing industry.

in countries like Vietnam or cambodia which focuses on the production of cheap consumer goods and low-wage of labor an even uncertainty bothersome many industries. a recent report by the Vietnamese ministry of Planning and investment revealed that the acfta has brought about more fierce competition to automobile industry in the country. under the

acfta, china and six aSean member

countries, including thailand, malaysia, indonesia, the Philippines, Singapore and brunei can apply a tariff of between 0.1-0.6 percent to automobiles and auto spare parts, while Vietnam, myanmar, Laos and cambodia have to wait until 2015 for the similar tariff application.

although by 2018, imported automobiles to Vietnam will be imposed a tariff of zero percent, the Vietnamese auto industry is now facing with tough competition with the imported auto spare parts, mostly from china. over the recent three years, auto manufacturers invested about 10 million u.S. dollars in their production, a disappointed amount compared to a bigger figure by investors in thailand or indonesia. in the first five months of this year, Vietnam’s import value of auto spare parts and accessories reached uS$ 72 million, doubled than that of the complete-built automobiles, and the figure is forecast to rise in the coming years when the tariff is reduced.

ironic indeed, as chinese-goods imports poses new challenges for aSean-based manufactures, analyst

Some feaR about CHINA’S UNSTOPPA BLE GROWTH


INDONESIA$ 846.8 billion

GDP ASEAN Nations 2011(source World bank)

MALAYSIA$ 278.7 billion

BRUNEI$ 12.4 billion

PHILIPPINES$ 224.8 billion

SINGAPORE$ 239.7 billion

THAILAND$ 345.6 billion

VIETNAM$ 124 billion

CAMBODIA$ 12.9 billion

MYANMARno record

LAO PDR$ 8.3 billion

INDONESIA242.3 million

Population ASEAN Nations 2011(source World bank)

MALAYSIA28.86 million

BRUNEI405 thousand

PHILIPPINES94.8 million

SINGAPORE5.18 million

THAILAND69.5 million

VIETNAM87.8 million

CAMBODIA14.3 million

MYANMAR48.34 million

LAO PDR6.29 million

predicted that this had been increasing their access

to more than one billion people of china. the elimination of tariffs falls on things as diverse as textiles, rubber, vegetable oils and steel. malaysia, on the other hand, which already exports palm oil, rubber and natural gas to china, will only slightly impacted by the regulation. Singapore is probably the only country that resistance to china’s growth given fact that the city-country has embarked on the path of industrialization earlier before other aSean nations. With the new china open economy, finds it cost competitiveness in manufacturing eroded as china and other aSean member countries are likely to produce the same goods with relatively same costs. hence, Singapore turn to producing high value added items and more sophisticated products; however Singapore with limited land and human resources will not be able to competing with china in basic manufactures.

but on the other side, china and other aSean countries, will never take the advantage of having strategic

location which made Singapore one of the strongest economy in the world. country like Vietnam perhaps needed also to look for new export products and identify a new niche markets. While we can’t expect automotive exports from Vietnam would be able to compete indonesia or thailand, or and cambodia garment products to compete with those from china, but the fta could probably bring more factories to set up operations in those countries where production and cost of labor were cheaper.

no matter how competitive market and trades among the aSean nations, a single minded focus on economic goals will lead this region into continue prosperity for the long term as the market in this region is more promising than any regional market in other parts of the world.

SingaPoRe iS the onLy countRy that RESISTANCE to china’S gRoWth

Low income ASEAN: GDP growth rates

(per august 2012)

High income ASEAN: GDP growth rates

(per august 2012)



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@ maRKinc PLuS

“I eat, sleep, think and dream marketing.”

Hermawan Kartajaya of MarkPlus Inc.

D e n n i S L i S c h e R

into a sixth generation chinese descendant family

in Surabaya, east Java, hermawan Kartajaya has experienced the bitter sweet in life. he probably never thought he’d become the huge success, as the marketing guru he’s known as today.

“to be honest, i did not have any ambitions,” he recalls. “i taught math and physics for nearly twenty years after i graduated high school to help support my family. my father worked for state-owned enterprises at the time and did not allow me to attend a chinese school. my late mother was a hard working wife who gave all her support to the family as my dad earned so little money.”

he regards himself as a formal education failure story. “i never completed my electrical engineering degree from institute technology of Surabaya. i was admitted as a student there in 1965, yet i received my first degree in bachelor of economics from university of Surabaya when i was already 37 years old, practically without attending classes.” he also earned a master’s degree in international marketing from the university of glasgow, but only by distance learning.

but things changed in 1990 when Kartajaya set up the markPlus inc as a pioneer of marketing in indonesia. “my ambition was to make a difference in the world through marketing.”

“i literally eat, sleep and dream marketing since i always ‘link’ what i experience with my marketing model,” said Kartajaya.

his contribution to the world of marketing in indonesia and the region has earned him unique and respected roles in important institutions in and out of indonesia, from Singapore to Switzerland and to Russia.

“i travel all over the world to speak for various conferences and consult different organizations.”

on being asked if cultural differences always pop up in international business settings, he simply replied,” What i see is that there’s a new equilibrium

UP-CLOSE & PERSONALH E R M A W A N K A R T A J A Y A

Who would have thought that a boy raised in a financially disadvantaged upbringing in Surabaya would become asia’s leading marketing strategist and author several international best-selling books on the fundamentals of marketing. hermawan Kartajaya talks to SoRotan about his family, current project, and why we need to become agents of transformation in this era of globalization.


BORN

point towards eastward. the West tries to understand the east because they can’t continue the single cultural dominance adding that the east now understands that modernization is not the same with westernization.”

“there are three world-shifts to support this phenomenon, from vertical to horizontal, exclusive to inclusive, and individual to social. all of us have to become “agents of transformation” to reach the relevant new equilibrium,” he said.

of the many books he published, “Repositioning asia: from bubble to Sustainable economy”, “Rethinking marketing: Sustainable marketing enterprise”, “attracting investors: a marketing approach to finding funds for your business”, and “think aSean” were likely among best sellers as he’s co-authored them with world marketing guru Prof. Philip Kotler.

in 2003 Kartajaya was named by the united Kingdom chartered institute of marketing as one of the 50 gurus Who have Shaped the future of marketing together with famous icons

such as Philip Kotler, tom Peters, theodore Levitt, David a. aaker, Seth godin, malcolm mcDonald, and many more. as the President of the World marketing association, Kartajaya is trying to revive the so-called asia marketing federation as currently the organization is not active. “i am preparing a new world-scale marketing organization with a new concept since the role of strategic marketing is become more and more important in this era of globalization.”

along with prominent figures like former environmental minister emil Salim and former Jakarta governor Dr. ing. fauzi bowo, he sits at the board of trustee of the university of indonesia

hermawan is also the Representative of the Republic of indonesia for the council of advisors of the aSean foundation together with representatives from other 9 aSean countries.

he is also the honorary consul for czech Republic in Surabaya with Jurisdiction in east Java, central Java

and yogyakarta and also the Special advisor to the chief of Police of the Republic of indonesia. in every aspect of his professional and personal achievements, he has influenced and extended the importance of marketing everywhere.

through his marriage to Susilawati Santoso, Kartajaya has been blessed with two kids, mike and Stephanie. he describes them as very different in personalities. “mike is now markPlus inc’s chief operating officer; he is very good in analytical thinking and detailed planning. Stephanie who founded ‘arbor and troy’, the best local brand in furniture in indonesia, is also the winner of the ernst and young’s Women entrepreneur 2012. She is very entrepreneurial and is helping our marketeers media fleet as chief executive. both of them are excellent in their own fields,” he said proudly.


“Apple really understands the anxieties and desires of the new world people. Apple is not only a brand but also a character. This is why Apple’s products impress people. They not just ‘OK’ but ‘WOW’!”

@ maRKinc PLuS

“hermawan Kartajaya, a world class marketing modeler, has blended the latest marketing trend with a conceptual foundation.”Philip Kotler S.C. Johnson & Son Distinguished Professor of International Marketing, Kellogg School of Management

“hermawan Kartajaya is to asian marketing what Philip Kotler is to global marketing.”Warren J. KeeganLubin School Distinguished Professor of Business, Pace University

“most of what i know about marketing, i learned from hermawan Kartajaya.”S. David YoungProfessor of Accounting & Control, INSEAD,

Author of EVA and Value Based Management

“the Positioning of hermawan Kartajaya in marketing is unique. he is a combined ‘product’ of Western mind, asia heart and indonesian Soul. every company must get his advice.”Al RiesChairman, Ries & Ries, Author of Focus: The Future of Your Company Depends on it

“i think, hermawan Kartajaya is not only a top leader in marketing but also an asian fighter for marketing.”Sherman LamPresident of Asia Pacific Marketing Federation (2002-2004)

Source: www.markplusinc.com

What World Famous Figures Say About Him@

ma

RK

inc

PLu

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One key to being successful is to learn from successful people.

having left school at the age of 15 to work at his father’s small oil lamp factory. he now heads maspion group, a family conglomerate in Surabaya known for affordable electrical home appliances and house wares. he also appears in national ad campaigns to encourage indonesians to buy local products.

Likewise success has no standard formula either. But if we know what it takes to be successful we will have a greater chance at succeeding.”

E K O N I D S E R I E SP R O M I N E N T E N T R E P R E N E U R

i was a child, i had always had a big dream to become a top businessman. i always wanted

to be the number one, not the second or third. the first thing i learned was hard work and persistence, values i learned from my late father.”

alim markus was born in Surabaya on 24th September 1954 as the eldest son in a family of five. the unfortunate situation forced him to quit a formal education before he finished high school in 1966, needing to help his parents grow the family business that produced household goods such as oil lamps, sieves, pans, basins, etc. With the small business growing fast and eventually served as the foundation for the incorporation of Pt maspion in 1971 and later transformed into a conglomerate of more than 50 companies under the umbrella of maspion group with over 30,000 employees.

“one key to be success is to learn from successful people. if we want to be a doctor, we have to learn from a real doctor. not from people that have other backgrounds even though they may have studied medicine. there are lots of lessons we can learn from other’s success. among other things, we will learn that the key factor to become more successful is to always study and work hard.”

Despite his limited formal education, markus is truly an individual with an incredible passion for knowledge. he has mastered six foreign languages including english, mandarin, Japanese, Korean, german, and french. he said that the foreign language skills are required not only to communicate with foreign partners, “but more importantly it also makes them feel closer and comfortable with us.”

he continued to enhance his management skills by enrolling in short courses at the national university of Singapore and tsing hua university in beijing. in march 2011, he earned the Doctor of honoris causa from the university of 17 agustus in Surabaya to honor his success in business.

his view is that, in business, one needs to have the power or the capital similar to the act of swimming onto an island. one has to have enough strength to swim back and forth because otherwise you will be tired halfway, fail or go bankrupt. as an example he used the image of a man who wishes to buy a shop in a particular market area, but his capital is far from sufficient. So, he tries to borrow money without considering his ability to pay back the loan with interests. “this will obviously send him into bankruptcy sooner or later.”

“Business has no standard formula.


“SINCE

i n t e R V i e W : i W a n n a S u t i o n / m a R i a g R a c i a S P h o t o S : P u R n a m a m u h a R a m

name Alim Markus

D.o.b Surabaya, 24 September 1951

Spouse Sriyanti

children Six

Position President Director maspion group

business field

household products, construction, material dan industry, property, and finance.

Biodata Alim MarkusHow important is the so-called work ethic?

one must have a strong work ethic. but besides working we must also give it our very best. in order to advance, to change and raise our status, we must be willing to sacrifice. not forgetting, of course, to watch our health and lead a balanced life.

China has transformed itself from being a communist country and one far left behind in terms of its economy, into an economic power-player on the world stage. How is the investment climate in China different from that in Indonesia?

i talked to a prominent figure of the SPmi (indonesian metal union Workers) several days ago. We share similar views with the SPSi (indonesian union Workers), i said that in all honesty indonesia still has large numbers of unemployment. although the living standards of workers has improved over the years. in indonesia labor costs are not cheap; they are more costly than in Vietnam, cambodia, and india. of course, we are still below china, but when you think and contemplate it, thirty years ago the labor costs in china were one-third of those in indonesia. how come china has in a period of thirty-some years been able to grow so powerful? the industrial and investment in china is enormous. contrastingly, indonesia has only in the last 1 or two years had great investments, and then it all fell apart because of the labor strikes. Strikes are alright if they are driven by an aspiration for better work conditions. but don’t break the law; we shouldn’t force our will on others and make them violate people’s human rights. blocking roads disrupts the


traffic, that all affects productivity. another point is when we today have successfully grown our industrial sector three-fold; we shouldn’t be exporting our human capital to other countries. i’m talking about the indonesian migrant workers. it’s something i find pitifull.

Maspion has still focused largely on Asia, for example, by partnering up with Samsung Group from Korea, and with Marubeni Group from Japan, what are its goals to expand to Europe?

if a european company would want to enter indonesia and would need a partner, we would be ready. Likewise, we could if we wanted to, enter the european market by exporting indonesian products. maspion has a representative office in Paris, and we also have a range of products that are characteristically made for the market in Paris, although the volume isn’t as significant yet. however, penetrating europe isn’t easy. yes, it’s all under the european union now, but there are still so many countries within the eu.

If you were given a chance to talk to the Government, what would your message be about the labor strikes situation in the country?

focus on enforcing the law! those carrying out the demos, they aren’t purely demonstrating.

in maspion group, the employee turnover is under 5 percent per year. in maspion, there has been no labor strike or industrial dispute in the last 10 years whereas it was common 11 years ago following the fall of Soeharto’s regime. alim markus who is also the chairman of indonesian business association (aPinDo) of east Java region has so many experiences in labor union, industrial relation, and employment. he admits that the relationship between the management of maspion group and its labor union is in harmony which gives positive contribution to the company’s productivity; the very reason why he set up a ‘hot line’ for the management and labor union to communicate with him as the ceo.

In light of the recent occurrences of labor strikes, has the Maspion Group considered relocating to another country where conditions are more secure and efficient?

a journey is not something that’s instant. Whether it’s the journey of one man or of a corporation, it will take more than a month’s or even a year’s time. it’s a process that can take ten to fifty, or even 100, 200 or 300 years. What matters are the motives that drive the corporation; they should be


the right ones. on a corporation’s journey there will of course come breaks. to capitalize on these breaks requires persistence, patience and a proactive approach to problem solving. therefore, the way to approach this is as a challenge, whether for human life or for the life of a corporation. We must always be positive. So the answer is no, maspion has no intentions of leaving indonesia.

What sets Maspion apart, in terms of what unique values does it have, both inward and outward, that makes it persevere amidst difficult times?

maspion was set up, groomed, and bred in indonesia, hence, the indonesian people have come to know the company and brand. its loyal consumers are enormous in terms of numbers. are we going to doubt ourselves and be indecisive because of a small problem? Surely, that won’t work. We need to keep working hard and be persistent.

the brand maspion stands for mengajak anda Selalu Percaya industri olahan nasional or “encouraging you to trust national industry products”. the main business of maspion consists of seven business cores from consumer goods like cookware, refrigerators, stoves, air conditioners, to building materials, real estate and banking. today, markus works alongside his three brothers, alim mulia Sastra, alim Satria, and alim Prakasa. together they continue to expand their business empire. one of the master projects is the 300 acre maspion industrial Park which is located only 10 km from Surabaya’s main port of tanjung Perak. globe asia and forbes magazine placed alim markus and family in its 40 Richest indonesian List.

“Turnover of 1 % means overpay and may result in higher cost. If it is more than 5 %, it means there are too many new employees and it wouldn’t be so efficient. “


29

N E W S I N B R I E FG E R M A N Y - I N D O N E S I A

aec Symposium:

ASEAN urges private sector to play active role in AEC


Deputy-Secretary general for aSean economic community Lim hong hin urged

the private sector to engage actively in realising the aSean economy community, in what he called as a “market-driven process.”

hong hin made the remarks as government officials, business community and academics gathered in Jakarta today for a full-day symposium examining the progress of aSean economic integration.

“to the extent that the implementation of the aec requires the understanding and participation of the private sector, an active involvement of this sector is crucial,” hong hin said. “Since the aec is a market-driven process, we have to make sure that the markets are well informed and consulted of our initiatives.”

Since the aec goal was first announced by the aSean Leaders in 2003, countries in the region have been implementing measures to create a single market and competitive region. measures to underpin the aec in such areas as aSean single window, single aviation market, integrated investment area, and integration of financial markets have so far increased the attractiveness of aSean. however, as discussed in the Symposium, there are still challenges that need to be addressed, including incorporating regional initiatives within our national development plan, sustaining reform momentum and looking beyond demand-driven measures that affect the timely implementation of aec. by end of august aSean had implemented 72 percent of measures due under the aec blueprint.

“the challenge now is to make the aec happen by addressing those measures that impact the markets most,” said mr. iman Pambagyo, Director-general of international trade cooperation, indonesia ministry of trade, who also spoke in the Symposium.

the aec Symposium is a first of a series of symposiums organized starting this year, in the run-up to the establishment of the aec by 2015.

former governor fauzi bowo delivered a keynote speech on urbanization issues

- growing more dynamic with time - before high ranking officials of cities in asia and europe during the asia-europe meeting (aSem) in berlin last month. this new discussion platform for leaders of urban societies aimed at finding solutions offers hope for people living in urban areas such as Jakarta and gives insights in combating urban-related issues such as designing strategies to cope with global warming.

“energy efficiency brings along with it innovation and creativity such as eco-friendly personal mobility and transportation alternatives, so that air pollution levels can be reduced,” the former governor said.

metropolitan cities can be symbolized as a rainbow of prosperity and they provide a boost toward global economic growth and socio-political development. in seeking solutions, fauzi bowo said, “every city must formulate its own vision and involve all ranks of government, as well as become the most accessible partner in meeting the needs of citizens, while working together with every region in order to prepare each city to cope with the challenges of global warming.”

Jakarta’s former governor on urbanization issues

JAKARTA’S

ASEAN

@ a

Sem

@ a

Sea

n

forecasts that the renminbi (Rmb)

currency will become a world currency after the uS dollar and euro in the next five years, following china’s foreign trade transaction in 2012 which has reached 10 percent.

Regional head of global trade and Receivables finance hSbc asia Pacific, Simon constantinides in Jakarta, Wednesday said that the increasing use of the renminbi in the world should be anticipated by indonesia by using the currency in its trade activities, particularly in trade with china.

“to export-import business owners in indonesia that do business with china need to be ready to use the Rmb than the usual use of uS dollars,” he said.

he added, educating on and socializing the use of Rmb in international trade should also be conducted, therefore indonesia must be ready in the coming five to six years ahead.

“there needs to be preparation for this. hence, indonesia must take part in education and socialization,” Simon said.

head of global trade and Receivables finance hSbc indonesia nirmala Saili added, indonesia’s export and import that is predominantly with china needs to e prepared to utilize renminbi. because, the chinese government.

according to Saili, dealing in the chinese currency will simplify transactions, whereas compared dealing in uS dollars will be inefficient due to the lengthy processes involved.

currently, he continued, china has become indonesia’s biggest export destination. the advantage of using the renminbi currency will simplify trade transactions between business practicioners in indonesia and their chinese counterparts.

“When making payments in uS dollars, then both sides must make adjustments to their respective currencies, and this will take time. using the renminbi will speeed up transactions, thus no swap is necessary.” he said.

nirmala pointed out that according to data published by the ministry of trade, indonesia’s overal export experienced a drop while its import rose.

“there’s a common perception that the raw materials we need for our industry we make imports mainly from china. not because we like to import, but because we can’t find the materials locally which we can turn into industy,” he said.

Despite of this, he continued, business practitioners in indonesia are still doing a wait and see towards the chinese currency. many indonesian exporters have yet to become interested in making payments in renminbi.

“they (indonesian exporters) are still waiting and don’t have the courage to try. this is due to the fact that not many know about it yet,” nirmala said.


the new world’s currency

Yuan

germany-based luxury car manufacturer, Porsche, is set to

launch their new crossover, macan, next year. the name macan is derived from the indonesian word for tiger. the car which is a compact crossover SuV based on the audi a5, initially announced in november 2010 with deliveries expected in mid 2013. macan is seeking a position below the larger Porsche cayenne. the macan will be debuted at the 2013 frankfurt motor Show and will be produced along side with cayenne in Leipzing, germany in a newly extended factory.

Porsche Macan

indonesia is the number one country worldwide in social media use. Jakarta

could be renamed the worldwide capital of twitter. that is why its importance is growing now more and more for successful marketing campaigning, for customer support and more. a conference organized by Pacific conferences Pte ltd was held on 26-27 September 2012 to offer an overview of the current social media trends in indonesia. it gave a short impression on best practices and misses on social media campaigns in indonesia.

Providing several examples, the conference tried to give a short idea on how the successful and efficient monetization goals for social media activities can look like and how it is possible to achieve a maximum result with a minimum budget. *advertorial

Social Media Marketing & Communications in Indonesia Conference26-27 September 2012, InterContinental Jakarta MidPlaza

HSBC

@ g

oo

gLe

short-term outlook for the eu economy remains fragile, but a gradual return to gDP growth is

projected for 2013, with further strengthening in 2014.

on an annual basis, gDP is set to contract by 0.3 percent in the eu and 0.4 percent in the euro area in 2012. gDP growth for 2013 is projected at 0.4 percent in the eu and 0.1 percent in the euro area. unemployment in the eu is expected to remain very high. the large internal and external imbalances that built up in the pre-crisis years are being reduced, but this process continues to weigh on domestic demand in some countries, and economic activity diverges significantly across member States. at the same time, competitiveness lost in the first decade of emu in some member States is being gradually restored, so that export growth is projected to increase progressively

“Europe is going through a difficult process of macroeconomic rebalancing, which will still last for some time. Our projections point to a gradual improvement in Europe’s growth outlook from early next year. Major policy decisions have laid the foundations for strengthening confidence. Market stress has been reduced, but there’s no room for complacency. Europe must continue to combine sound fiscal policies with structural reforms to create the conditions for sustainable growth to bring unemployment down from the current unacceptably high levels.”

(Olli Rehn, Commission Vice-President for Economic and Monetary Affairs and the Euro)

N E W S I N B R I E FG E R M A N Y - I N D O N E S I A

as global trade starts reaccelerating. further progress in consolidating public finances is underpinning this rebalancing process.

the structural reforms undertaken should begin to bear fruit over the forecast period, while advancements in the emu architecture continue to strengthen confidence. this should pave the way for a stronger and more evenly distributed expansion in 2014. gDP growth in 2014 is projected at 1.6 percent in the eu and 1.4 percent in the euro area.


THE

/new york - Job seekers from currently struggling european economies are flocking

to germany’s it industry. nearly 20 percent of german it companies have seen a rise in applications from these countries in recent months, according to a new survey by bitKom, the country’s it industry association.

this is a welcome development, as over half of these companies have positions they are struggling to fill, a sign of the current it boom in germany. germany trade & invest experts will be on hand at this year’s interop from october 1 - 5 in new york city to share the latest trends in the german it industry.

“on one hand there is a growing start-up culture here that is embodied by berlin: young, hip, and innovative. on the other hand, the established german mittelstand is currently performing very well and able to invest in new technologies, especially cloud computing. these trends are creating chances for international companies to come to germany,” stated achim hartig, it expert and Director of investor consulting at germany trade & invest in berlin.

germany features the largest it market in europe, making up 20 percent of total european market volume. the german it industry posted annual revenue of approximately euR 137 billion in 2011, a figure expected to grow in coming years. cloud computing is one of the most significant growth segments, with revenue expected to nearly quadruple from euR 3.5 billion to euR 13 billion per year by 2015.

“the same conditions that helped germany build a strong class of internationally active small and medium businesses, namely a business-friendly environment and an infrastructure that enables connectivity from anywhere, are now turning the country into a hub for the next generation of businesses,” continued hartig.

Booming German IT Industry Attracts International Talent

- german exports rose unexpectedly in august – in a positive sense. exports

jumped 2.4 percent, far outperforming expectations for a drop of 0.5 percent. Domestically, government and small and medium enterprises (Smes) are embracing more collaborative ways of working together. With the newly announced “Sme energy revolution initiative,” the federal ministry for the environment, the association of german chambers of industry and commerce (DihK) and the german confederation of Skilled crafts (zDh) have agreed to intensify their dialogue with one other in order to increase the pace of clean energy growth. the german economy is sound and an effective and proactive dialogue exists between the government and the economy.

“a current example of the efficiency and speed of business and management in the new federal states is the

Germany: Top Exporter, Pioneering Role in the Energy Revolution, Open to Investors


CeBIT 2012 in Hanover, Germany on 6 March 2012: impressions from the SAP booth

coordinating economic minister, hatta Radjasa during his opening speech.

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recently completed photovoltaic project in brandenburg neuhardenberg. in just five weeks, it became the home of germany’s largest photovoltaic plant. 145 megawatts of electricity will be generated in the future; enough to supply 48,000 households. taking this project from idea to completion took only half a year,” said Dr. Jürgen friedrich, chief executive of germany trade & invest.

however, the system must still be connected to the grid, which will probably take until the end of this year. the success of the photovoltaic system is therefore the same as for the energy revolution in general: while much is going well, there are still problems. from the challenge of integrating offshore wind farms within the electric grid system, which limits its expansion, to the increase in energy efficiency within the economy up to how one can reduce the overall energy consumption are just a few of the questions that remain open.

“this is not surprising, for germany is continuing to play a pioneering role. therefore, investing in this country has become all the more interesting. in germany, technologies of the future are just being developed, but expertise from abroad will be urgently needed. and good business will indeed deliver both points,” continued Dr. Jürgen friedrich.

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The solar park in Germany has been completed in record time.

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the past 4 years, the event has also become a

discussion platform for the government as well as indonesian and european business practitioners allowing for the exchange of ideas for increasing investments and trading values on both sides.

“it has come to the conclusion that investment between the eu and indonesia can significantly expand. easy gains could be made if issues such as ‘intellectual Property Rights’ enforcement, infrastructure, and environment sustainability are effectively tackled,” said indonesian industrial minister m.S hidayat during his keynote speech. he also praised KaDin indonesia and the eu chambers for providing an opportunity to enhance and boost trade and economic development for both sides through this high-level forum.

on his part, the indonesian trade minister, gita Wirjawan expressed hopes that the governments and businesses can collaborate more intensely in trade and commerce. ”this year, trade volume between indonesia and the eu only recorded at zero to one percent respectively thanks to the economic crisis,” cited minister Wirjawan. he pointed out that ties between eu and

indonesia is undeniably giving a strong effect on the growth of indonesia’s economy.

“the opportunities for improving cooperation, particularly in the pharmaceutical, garment and shoes, automotive, food & beverages, as well as infrastructure, is wide open for both sides,” gita added that the government and business practitioners should be confident in their commitments toward indonesia.

indonesia – eu has enjoyed a trade surplus of 22 percent growth to approximately uS$ 33 million compare to 2010, an indicator of how significant each side’s business contribution really is. Last year alone, nearly 500 projects worth at $ 2.61 billion was invested by eu in indonesia. eu is currently ranked the fourth biggest investor in indonesia.

With the gDP expected to reach uS$ 1trillion this year, indonesia is Southeast asia’s largest economy.its economy grew by 6.3 percent in the first semester of 2012, the fastest growing g20 economy after china. indonesia is forecast to be one of the strongest economic powerhouses by 2030.

Julian Wilson, ambassador to the european union for indonesia, brunei

EIBD

Darussalam and aSean conveyed hopes that the two governments’ joint efforts will form an economic partnership in which each side will complete the other. he regards indonesia as an “up-and-coming” economic player continuing to gain in size and playing a crucial role amidst the crisis that is felt world-wide including europe.

established in 2009, the eibD forum has been taking an important role in establishing direct and comprehensive communication between governments and private sectors in the two regions as well identifying news areas of economic cooperation and government support. today it continued to enhance the path toward the comprehensive economic Partnership agreement foreseen to further improve trade and investment relations between the european union and indonesia Various sectors, primarily the infrastructure, garment, pharmaceuticals, food and beverages and automotive sector were the focus of the conference this year. eibD is jointly organized by eurocham, eKoniD, britcham, ifcci, ina and Kadin, with the support of the eu commission and the ministry of trade of indonesia.

The European Union-Indonesia Business Dialogue (EIBD) 2012 took place in Nusa Dua, Bali on November 8th and 9th and it was expected to intensify economic cooperation between Indonesia and European Union member states.

Strong Effect on Economic Growth


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is honored to host the 13th asia Pacific conference of german business (aPK) in

gurgaon, Delhi earlier last month. the biannual conferences provide a key forum for ongoing partnership-based dialogue between germany and the countries of the asia-Pacific region.

organized by germany’s chambers of industry and commerce across the asia-Pacific region, the asia-Pacific association of german business as well as the federal ministry of economics and technology of germany or bmWi, the event focused on “forward-looking” economic sectors that contain potential for greater cooperation between germany and its asia-Pacific partners, so that both sides can work together to identify and develop solutions for future challenges.

the federal minister of economics and technology Dr. Philipp Rösler and ceo of Siemens ag, Peter Löscher kick-off the three day event which was held from november 1st – 3rd, 2012. on his opening remarks, minister Rösler praised the asia-Pacific region for their robust economic growth and expressed optimism that the region will continue to be one of the main growth regions within the world economy. hence, he offers attractive solutions for the challenges faced by the region such as urbanization and sustainable growth.

“the asia Pacific conference is the most important forum for german companies when it comes to making contacts in the region and exchanging opinion as well as experience. our companies are becoming more and more successfully active in the region and the conference also generates ideas that they can use.” he adds, “the innovative german mittelstand is highly respected by international partners and

is increasingly being seen as a key factor in the continued strength of the german economy.”

the motto of this year’s conference is “Partnership-innovation-Sustainability”. experts from germany and the whole of asia-Pacific region were discussing the pressing problems including energy efficiency and clean technologies, science and innovation, raw materials, financing and demographic change.

the asia Pacific region will continue to be one of the most strategic key markets for german exports. the dynamic development of this market clearly comes from the emerging economies, particularly in asia. in the past decade, german exports to this region enjoy a robust growth of more than 9 percent annually, which was almost the increase in total exports of 5.2 percent.

german this year asia-Pacific committee was supported by the federation of german industries (bDi), the association of german chambers of industry and commerce (DihK), the german asia-Pacific business association (oaV), the federation of german Wholesale, foreign trade and Services (bga) and the association of german banks (bankenverband). the indo-german chamber of commerce (igcc) is the local host and organizer of the 2012 event.

Asia-Pacific Conference of German Business

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the wake of the 13th asia-Pacific conference of german

business in india recently, the five german chambers within the aSean region (indonesia, malaysia, Singapore, thailand and Vietnam) officiates the german-aSean chamber network (gacn) in the presence of the federal minister of economy and technology, Dr. Philipp Rösler.

german companies active in the aSean region are increasingly developing regional strategies. it is expected that the gacn will create an open platform for german enterprises and their partners and interlocutors from business, politics and administration. the platform is not bound by national frameworks and will facilitate a broad dialogue as well as regional initiatives.

for companies with a regional orientation the gacn opens channels for exchange on various levels amongst all relevant stakeholders in aSean. the network is designed to identify future-oriented business opportunities and to contribute to a continuous improvement of the economic exchange between europe and aSean with a specific focus on small and medium sized enterprises; assist Smes in adjusting and aligning their strategies and activities with

a view of the determining political and economic factors in the aSean region; facilitate the exchange of information between companies, the german chambers (ahKs) and other business associations in aSean and europe; formulate joint positions on trade and investment issues towards achieving the aSean economic union (“Declaration on the aSean economic community blueprint”) and to propose solutions for the improvement of the trade and investment climate; develop focal areas for the dialogue on strategic issues of the aSean integration and for the identification of relevant future topics.

Business Location ASEAN aSean is worldwide one of the most dynamic economic regions with excellent future-oriented perspectives. apart from the traditional sectors machinery, electronics and electrical or automotive other sectors with high potential are developing: environmental technologies, health care, infrastructure and also the service industry, such as logistics, financial services, telecommunication and engineering.

favorable cost structures, buoyant and receptive markets, governments that continuously improve trade and

investment conditions, a consumption oriented population which works hard for prosperity and a better future for its children, and the highly respected image of “made in germany”, are just a few of the location benefits. the expected completion of the aSean free trade area in 2015 and the conclusion of free trade agreement currently negotiated by the eu with various aSean countries will further improve the positive framework conditions.

a recent survey among the member companies of the german chambers (ahKs) in the aSean countries indonesia, malaysia, Singapore, thailand and Vietnam indicates that an engagement in the region is of growing importance for the business success of many enterprises. a large share of companies acknowledged positive developments in terms of economic performance, capital investments and demand situation. the majority of the firms is satisfied with their sales and production figures and estimates a further increase in the coming year. indicators such as “staff count” and “investment” are on the rise.

German-ASEAN Chamber Network

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- indonesia has been experiencing

unprecendented economic growth and positive developments in recent years, making it one of the most vibrant economies in indonesia. blessed with rich natural resources, abundant labor force and large population, with one of the fastest growing middle class in the world, providing for a strong market for consumer goods, indonesia continues to register growth in its economy, despite the ongoing global turmoil. this huge economic potential in indonesia has also contributed to enhancing economic cooperation and trade between germany and indonesia. today, germany is one of the major trade and investment partners for indonesia in europe.

the indonesia trade investment and tourism forum was held on 15 november 2012 in Düsseldorf as a platform to promote more intensive trade relations between both countries.

also on the forum’s agenda were one-on-one business meetings discussing the topics of renewable energy, food commodity processing, infrastructure, transportation, telecommunication, health and creative economy, including information technology.

the participation of business delegations from indonesia was marked by the attendence of several high-ranking indonesian officials

Indonesia Trade, Investment, and Tourism Forum

A Successful Platform for more intensive economic cooperation

including chairman of the committee for germany, austria and Switzerland, indonesian chamber of industry and commerce (KaDin), Dr. -ing- ilham habibie; current Riau islands governor, muhamad Rusni; chairman of the indonesian investment coordinating board, h.e. Dr muhamad chatib basri; and Deputy minister of tourism and creative economy, h.e. Dr. Sapta nirwandar.

the event was organized by the embassy of the Republic of indonesia in cooperation with the chamber of industry and commerce of Düsseldorf (ihK Düsseldorf) and was aimed at boosting investment in indonesia and to facilitate german entrepreneurs thinking of setting up business in indonsia. it is hoped that this forum will explore the opportunities and benefits of entrepreneurial engagement in indonesia.

among the topics being discussed at the forum were Potential of indonesian industry, Doing business in indonesia and its benefits, and banking guarantees for investment activities in indonesia.

indonesian night, which marked the end of the indonesia trade investment and tourism forum, was also held by the indonesian consulate in germany with Dr. eddy Pratomo officiating the gala Dinner. “We hope that the business forum, which was held by the indonesian

mission in germany together with ihK Düsseldorf, will facilitate the interest of german entrepreneurs who want to a open up and/or expand business in indonesia. the event attracted more than 300 guests, among them business practitioners, local authorities and officials from the german state of north Rhine Westphalia, as well as academians.

also present was minister for economy, energy, habitation, construction, and transportation, Dr. günther horzetzky; and Director Jenderal of energy, nuclear technology and mining, ministry of economy, energy and industry of north Rhine-Westphalia, michael gessner, who gave an inspiring welcome address.

“Du Bist Alles” performed at Indonesia Night and Gala Dinner in Düsseldorfthe german song “Du bist alles”, highly popular in indonesia during the 70s was performed in a chamber orchestra arrangmement by Saung angklung Daeng udjo at “indonesia night and gala Dinner” organized by the indonesian mission in Düsseldof, germany.

attending the recently held event were some 300 guests, consisting of businessmen, government officials, and academians, who warmly welcomed the musical performance, said Vice-Secretary of the indonesian

DÜSSELDORF

consulate Purno Widodo in Londong, Wednesday.

it is said, the event was also attended by the head of the investment coordinating board (bKPm) Dr. m. chatib basri opened with Saman dance that brought some members of the german PPi.

in the invitation, the minister of economy, energy, construction habitation and transport Dr. günther horzetzky and Director general of energy, nuclear technology and mining ministry of economic affairs, energy and industry of the State of north Rhine-Westphalia, michael gessner gave a standing ovation.

formerly ambassador of indonesia to berlin Dr. eddy Pratomo delivered the welcome speech at the event which marked the end of an integrated promotion of tourism, trade and investment (tti) in Düsseldorf.

expected event organized indonesian representative in germany in cooperation with the chamber of commerce (ihK) Düsseldorf to meet the needs of employers who will conduct business and investment in indonesia.

Rudolf Smend collector of batik gallery Smend expressed appreciation with a main event featuring a variety of art it says indonesia is very impressive including batik fashion show.

the dinner was accompanied by a piano recital by arya Sudharga who brought various folk songs from the archipelago, as well as a fashion show displaying indonesian batik from two Ladies and a mask dance Singkrung Kuoso as well as a showcase of a Shanti couture dress with a bavarian-style Drindl using batik material.

Saung angklung Daeng udjo closed the event with a rendition of pop tunes, jazz, rock. at the end attendees were invited to play interactive angklung by udjo Daeng.


commemorate 20-year re-lationships in the field of

decentralization, local autonomy, and good governance between the indonesian government and the federal Republic of germany, the gessellschaft für internationale zusammenarbeit (giz) is holding an international conference entitled “Looking back-thinking forward: Learning from 20 years of Decentralization Support”.

During the two-day conference, a new approach and vision towards the implementation of decentralization and good governance in the future were discussed. attended the event were numerous prominent speakers including german ambassador for indonesia, Dr. georg Witschel, former indonesian minister of Regional autonomy Ryaas Rasyid, and home

affairs ministry officials Prof. Dr. h. Djoehermansyah Djohan.

ambassador Witschel hopes that the ongoing collaboration a solutions to decentralized-related issues will be found. “the german governments will aided the ongoing contribution based on its vast experience.”

germany’s support for decentralization in indonesia was dated back in 1992 where a project called ‘Support for Decentralization measures’ was taking place. back then indonesia was very much adopted a centralized system. however, things changed rapidly following the resignation of President Suharto in 1998, indonesia entered a period of rapid decentralization which has seen many competences for public service delivery transferred to local governments in a relatively

short space of time. this includes the transfer of responsibility for a significant portion of the country’s public finances as well as its human resources. indonesia’s decentralization process is one of the most complex structural transformations of a state and administration taking place anywhere in the world. however, the local governments do not yet possess adequate human resources or the organizational and fiscal capacities to provide effective, transparent and accountable public services. at the same time, the division of tasks and responsibilities between the different administrative levels has not been clearly defined. the situation is made more difficult by the often opaque regulations for implementing the legislation on decentralization.

Learning from 20 years of Decentralization Support


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by mcKinsey & co reveals that indonesia may surpass germany and the uK by 2030

to be the world’s seventh-largest economy, generating uS$ 1.8 trillion in annual sales for investors in consumer and energy industries by that year. the country may add 90 million people to its “consuming class” in that period, the most after china and india, the consulting company said in a report today. energy demand may triple from current levels, convenience stores will lead a “revolution” in retail, and the largest business opportunities will be for financial-service providers, it said.

President Susilo bambang yudhoyono is increasing spending on roads, seaports and airports as he woos investment to spur Southeast asia’s largest economy. more than a decade after the asian financial crisis forced the nation to seek an international monetary fund bailout, fitch Ratings and moody’s investors Service have raised indonesia to investment grade and the country’s growth is among the fastest in the group of 20.

“indonesia is in the throes of a rapid transformation,” mcKinsey said. “the indonesian economy is larger, more stable, and more advanced than many companies and investors around the world realize.”

indonesia is currently the world’s 16th-largest economy, with gross domestic product of about uS$ 846 billion last year, according to imf data. that may rise to uS$ 1.8 trillion in 2017, compared with germany’s uS$ 3.9 trillion economy and uK gDP of uS$ 3.2 trillion in the same period, imf data shows. the mcKinsey report did not give gDP projections for 2030. only china, the uS, india, Japan, brazil and Russia will be bigger than indonesia by 2030, the report said.

indonesia isn’t “a typical asian manufacturing exporter driven by its growing workforce or a commodity exporter driven by its rich endowments of natural resources,” the report said. “the reality is that, to a large extent, it is domestic consumption rather than exports, and services rather than manufacturing or resources, which are propelling growth.”

-bloomberg/ the Jakarta globe-


indonesia gDP may overtake germany, uK by 2030, mcKinsey says.

A REPORT

brandenburg airport Willy brandt will begin

operation on 27 october 2013. the new airport will be designated the iata code beR – the three trademark letters of the new airport. as of 2013, beR will secure the air traffic infrastructure for the berlin-brandenburg region and thus replace the existing airport system: the first step towards this goal was the closure of tempelhof airport on 30 october 2008. the closure of tegel airport is due to follow with the opening of beR.

built with modern airport concept with all facilities within easy reach and a terminal located between two parallel runways, the capital region will be able to provide business travellers, tourists and companies with a new airport that offers the best connections, international flights, direct motorway access, and a railway station directly below the terminal. the airport is expected to have a starting capacity of 27 million passengers when it goes into operation. Depending on passenger development, the airport

can be expanded to accommodate up to 45 million passengers. this means that berlin brandenburg airport will provide the german capital region with the capacity it needs for the coming decades. a sophisticated railway connection will be added to support connectivity in and out the airport that includes six-track underground railway stations with three platforms directly under each terminal. the goal of the planners: one in two travellers will come to the new airport using public transportation. Deutsche bahn will also include berlin brandenbug aiport in its route network and offer international and regional connections. Regional trains will run directly from beR to destinations in brandenburg, and long-distance services will be operated to destinations such as hamburg, hanover, amsterdam, Wrocław and cracow. all rail tracks to and from the new airport will be capable of handling ice trains.

Driving Economyberlin-brandenburg is on its way to becoming the third-most important

location in the aerospace industry in germany. around 18,000 workers are already employed at the berlin airports Schönefeld and tegel as well as in and around the future berlin brandenburg airport. the region is home to Deutsche Lufthansa ag, airberlin, mtu aero engines gmbh, Rolls-Royce Deutschland Ltd. & co. Kg, and around 60 small and medium-sized enterprises. a large number of firms in the sector are settling in the area around Schönefeld – and new companies and jobs are helping to boost the region’s economy. aerospace has become a key industry with outstanding prospects in the berlin-brandenburg capital region.

as the key infrastructure project for the future viability of the capital region, the new airport is also an invaluable locational advantage of the german capital region: unlike other european airports, berlin brandenburg airport has the capacity required for the coming decades. berlin is the only location in europe capable of doubling its air traffic capacity to up to 45 million passengers and thus securing its growth and

berlin brandenburg airport:

Key infrastructure project for future viability

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competitiveness for years to come. the new airport will therefore enable berlin to be even better connected to the world than it is today and become a key east-West hub on the continent. the new airport is also expected to create new jobs in the region, primarily through an increase in the number of passengers, a significant improvement in the value of

the location and additional purchasing power effects.

as a result of the increasing international interweaving of business and growing business travel, high-quality flight offerings are gaining in importance. the availability of highly specialised employees, quick access, personal communication and

scientific and creative exchange are key advantages for the capital region in the competition for innovation. With beR, berlin will also be strengthened as a location for trade fairs and congresses.

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minister for economics and technologyPhilipp

Rösler, federal environment minister Peter altmaier, DihK-Presidenthans heinrich Driftmann and zDh-Präsident, otto Kentzler introduced the so-called initiative mittlestand last october in berlin.

it is expected that a more intensive dialog will lead to optimized data and consulting, as well as to improvements in trainings, and the exchange of skills and experiences, which are hoped to assist medium-sized enterprises.

for the local enterprises the initiative intends to use an approach which is more branch and target group specific. moreover, they will be guided by experts. in addition, the application of model-solutions, for instance in the area of energy saving measures, will be pursued on a grand scale.

“medium-sized enterprises make up the backbone of our ecnonomy. the sector generates every other euro of our gnP and more than half of all our jobs. We need to maintain this

economic power-engine. once we do this we can be successful with our energy transition. the joint initiative will allow us to make energy efficiency a top priority within these enterprises. the involvement of the DihK and zDh enables us in the future to present in a more targeted way to businesses and craft makers the federal economic ministry’s wide range of support measures in a more targeted way,“ minister Rösler said.

on his side, federal environmental minister altmeier says that medium-sized and craft trade enterprises are important partners for germany’s energy transition. “We wish to support them in making the energy transitions and to capitalize on any opportunities that open up. it is particularly efficiency technology that offers the chance to reduce energy costs and create new business fields. this is where the initiative can do its part,” said altimeier.

as the biggest investment projects today, the energy transition will open up interesting opportunities to medium-

sized enterprises. however, we need to keep a close eye on the side effects of the energy transition as DihK-President Driftmann emphasizes, “Rising energy costs, fear of power outages, disputes around cable installations - this makes business owners especially uneasy. it becomes even more important, to involve more closely businesses and to improve dialog between parties concerned and the actors.

zDh-President Kentzler also expressed his enthusiasm of this joint initiative on energy transition saying that the “mittelstandsinitiative energiewende” herewith declares its commitment to exploit this potential fully and to engage in further expansion.

“our craftsmen and craftswomen are the most convinced ambassadors, when it comes to making energy supply and use transformation a collaborative effort in our country.“

On 1 January 2013 the “Mittelstandsinitiative Energiewende”, a joint project of the Federal Ministry of Economic Affairs, Federal Ministry of Environment, German Chamber of Industry and Commerce (DIHK) and the German Confederation of Skilled Crafts (ZDH) will commence.

H I G H L I G H T SD I H K N E W S

DIHK, ZDH and ministries announce commencement in coming year

FEDERAL

former mayor of Surakarta in central Java, Jokowi won

the Jakarta gubernatorial election after beats governor (now former) fauzi bowo by a margin 351,315 voters. Running the election with his then Deputy governor bauski thahaja “ahok” utama, a chinese descendant of bangka belitung, they enjoyed a landslide victory as Jakarta Satu and Dua.

With the council dominated by parties that opposed them in the election, there are fears that the council may try to undermine the new governor. but political factions in the Jakarta city council say they are ready to work with the new elect-governor and his administration as the governor puts the people’s interests first.

the largest party in the council, the Democratic Party, which supported fauzi bowo in his bid for reelection, said the party respected the results of the election, which it deemed to be “democratic”. the coalition that backed fauzi also comprised the islamic-based Prosperous Justice Party (PKS), the

united Development Party (PPP), the golkar Party, the national mandate Party (Pan) and the People’s conscience Party (hanura). they control a total of 77 council seats.

the german educated fauzi bowo lost his reelection bid in the September 20th, 2012 runoff election, winning only 46.18 percent of the vote, while Jokowi won 53.82 percent. Jokowi finished first out of six candidates in July, receiving 42.6 percent of the 4.3 million votes cast, with fauzi coming second. During the runoff, Jokowi retained the support of his first-round backers, the indonesian Democratic Party of Struggle (PDi-P) — the third largest party in the council with 11 seats, and the great indonesia movement (gerindra) Party, which has six seats.

Jakarta Baru (The Newly Jakarta)on his first day in office, Jakarta governor Joko “Jokowi” Widodo met with State-owned enterprises minister Dahlan iskan to discuss ways to solve the city’s traffic woes, including a plan to revive the abandoned monorail project.

the previous governor called off the project last year, three years after its developer, Pt Jakarta monorail, halted construction due to legal and financial problems. earlier this year, the city administration under fauzi announced that it planned to use the concrete columns left by the initial construction phase for part of an elevated bus rapid transit (bRt) project.

however, state-owned construction firm Pt adhi Karya announced in august that it wanted to revive the project. minister Dahlan backed the plan, saying that a monorail was necessary to help ease traffic congestion in the capital.

Jokowi new administration is also immediately working with the Public housing ministry on a program to reorganize informal riverbank settlements in the eastern parts Jakarta. he said the new-look neighborhoods would be known as kampung deret (tiered kampungs), and would consist of one to three rows of low-rise apartment blocks between the river and the road.

“Jokowi can always turn to the people for support. If he has the support of the public, the council will follow suit. On a social level, he is better than Fauzi, who was known for his rigid and cold approach.” (Ibramsyah, political analyst from the Jakarta-based University of Indonesia)

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mounting of indonesia’s two biggest automotive events

were timed closely to one another this year. indonesian international motor Show (iimS) 2012 was staged from 20-30 September 2012 at Jl expo Kemayoran, while Jakarta motorcycle Show 2012 (JmcS) took place from 31 october – 4 november 2012 at Jakarta convention center. the themes of the two trade shows took on a similar direction ‘‘eco mobility“.

the ‘‘eco-mobility“ trend has grown in significance as a result of the current transportation induced negative impact towards the environment, health, and inadequate infrastructure. innovative

solutions that are less-harmful to our environment, while at the same time can bring positive in our surroundings. all authorized brand agents of the 20th iimS 2012 demonstrated enthusism of this year’s iimS theme.

great enthusiasm in supporting this year’s theme was evidenced by how the exhibitor’s individual booths endorsed the “eco-mobility” trend. the chrysler indonesia booth conveyed its “Stay Driven: harmony & technology,” theme, while toyota indonesia’s booth read “goodness for tomorrow”. nissan motor indonesia and infinity indonesia booths sounded the theme “innovation that excites”.

JmcS 2012’s theme “think green, act Safely” invited all stakeholders including motorcycle producers and riders to heighten their awareness of road safety that will ultimately lead to increased driver safety and a reduction in the ecological degrading of the environment.

“the theme was chosen to bring all visitors of JmcS and indonesian consumers to care more and become active participants in enforcing on-the-road discipline and caring for the environment,” abiyoso Wietono, automotive Division manager Dyandra Promosindo said.

International Motor Show (IIMS) and Jakarta Motorcycle Show (JMCS) 2012 :

Indicators of growing domestic automotive industry

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to several concerns regarding regulation 27/m-Dag/

PeR/5/2012 (“Reg. 27”), the minister of trade (“mot”) has adopted the regulation 59/m-Dag/PeR/9/2012 (“Reg. 59”) on 21st September 2012 to improve certain provisions of the importer identification number (“aPi”) for both producers (“aPi-P holders) and traders (“aPi-u holders”).

the main change is reflected in a broader scope of the term “special relationship”. aPi-P holders are exempted from restrictions on the import of industrial goods with the aim of reselling them in indonesia and aPi-u holders are exempted from restrictions of article 4 par. 3 of Reg. 27, with the result that they have the ability to import goods that fall under more than one section of the Sistem Klasifikasi barang (“hS-code”).

the term special relationship is specified in article 1 point 6 and further regulated in article 4 par. 6 for aPi-u holders and in article 9 par. 2 for aPi-P holders. a special relationship can be obtained through (1) a contractual agreement to share control over economic activities, (2) Shareholdings, (3) articles of association, (4) a Distributor/agency agreement, (5) a Loan agreement or (6) a Supplier agreement.

Changes for API-P holderunder Reg. 27 aPi-P holders could not transfer their imported goods, which are used for production process, to other parties. Reg. 59 now provides that transfers are allowed, if the imported goods have been granted an import duty exemption and have been used by the aPi-P holders themselves for at least two years as of the date of the import duty notification date. this is now in line with the regulation stipulated by the minister of finance no.76/PmK.011/2012 vide no. 176/PmK.011/2009 in regard to the import duty exemption for machineries, goods

and materials in the framework of investment of industrial development.

as far as aPi-P holders import industrial goods (the term is now used in Reg. 27 and Reg. 59 as a replacement of “finished goods”) for market testing purposes (a.) or as complementary goods (b.), it applies according to Reg. 59 the following:

a. the prerequisites for the import of industrial goods for market test purposes have remained the same. these are (1) imported industrial goods cannot yet be produced by the aPi-P holder, (2) goods must be in line with aPi-P holders´ industrial licenses or other similar type of business licenses, and (3) importation must be conducted only for a certain time.

b. Reg. 59 has removed the criteria that for an aPi-P holder to be eligible to import complementary goods, it must still be incapable of producing the goods itself. according to article 9 par. 1 the prerequisites for complementary goods are now:1. complementary goods are in

accordance with the business license in the field of industry or other similar type of business license of the aPi-P holder, and

2. complementary goods are imported from a foreign company which has a special relationship with the aPi-P holder.

Changes for API-U holderarticle 4 par. 3 of Reg. 59 permits aPi-u holders to import goods that fall under more than one section of the

hS-code, if they can prove a special relationship between them and their foreign supplier, or they are business companies the shareholders of which or the majority shareholder of which is the State.

Reg. 59 provides that in order to obtain an aPi-u to import goods classified in more than one section of the hS-code, the applicant must enclose a statement letter regarding the special relationship signed by the relevant aPi-u holder on a duty stamp, along with evidence of the special relationship that is legalized by the indonesian embassy where the foreign suppliers are domiciled.

Conclusionimporters are likely to welcome the minister of trade`s latest move in the import saga. however, some regulations are still unfortunate for importers, e.g.:

1. Parties are concerned that for the detection of a special relationship documents must be submitted, including those containing confidential information;

2. a member of the board of directors of the company must be mentioned in the import license. in case the aPi document is signed by a foreigner, a work- and residence permit is required as well as the personal taxpayer Registration number;

3. Licenses must be re-registered every 5 years;

4. Deadline for the adaptation of the licenses expires on the 31st December 2012. aPi holders should immediately request the adaptation of their licenses.

Amendment to Regulation No. 27/2012 (API-U and API-P)

Silke Helmholz is Head of the Department Corporate Services at EKONID, focusing on consulting in corporate and investment issues.

Allysthia Mutiara Renti is Junior Executive Corporate Services at EKONID, focusing on consulting in corporate and investment issues.

Stefan Blaschek, who has studied at the Westfälische Wilhelms-Universität in Münster/Germany, recently worked for the Corporate Services Department at EKONID as part of his legal clerkship.

L E G A LN E W R E G U L A T I O N

S i L K e h e L m h o L z , a L L y S t h i a m R e n t i & S t e f a n b L a S c h e K


DUE

Jan-Feb, 25-14 Indonesian batik “A Living Heritage” – Galeri Nasional, JakartaThe 3-week exhibition, Indonesian batik: A Living Heritage” was held at the Jakarta National Gallery in January and February 2012. Implemented under the JERIN program, the exhibition gave a tour on various aspects of batik, including its manufacturing process, its history and the use of natural dyes.

CBI Milestone 2012

Feb 17Program Roll Out in Tarakan, East KalimantanContinuing its mission in greening the batik industry in Indonesia, CBI has now expanded its targeted project location to Tarakan, East Borneo, a region in Indonesia with vastly different batik industry characteristics.

Apr 14 Program Roll Out in Madura, East JavaFollowing completion of CBI Sustainable Production activities in Tarakan, the program started implementation in Madura, East Java. Starting with Training of Trainers activities involving potential local candidates and representatives from relevant government agencies as observers, four highly competent and motivated Technical Consultants were contracted to work in the program.

Feb 20-28Indonesian batik “A Living Heritage” – Solo City Hall, SoloContinuing the success of the exhibition in Jakarta, Indonesian batik: “A Living Heritage” was held at City Hall solo for one full week attracting over 1000 citizens of the city of Solo to the exhibition.

Apr 17Equitable Economic Development ASEAN 2012, Pekalongan

Apr 19-22 2nd Indonesia Climate Change Forum and Education Expo, JakartaAs part of Clean Batik Initiative campaign to support public awareness on eco-friendly batik,CBI participated in the second Indonesia Climate Change Education Forum and Expo held on 19-22 April 2012 at Jakarta Convention Center.


PhotoS: eKoniD’S aRchiVe

Jun 2 Green with Batik Talk show, Youth Desk Unesco, Jakarta“Batik is more than just a trend”, was the highlighted theme on the pre-event of Greenpreneurship Challenge organized by Youth Desk UNESCO in collaboration with Clean Batik Initiative. The workshop was held on 2 June 2012 at Textile Museum, Jakarta. The theme encourages Indonesian youth to get involved in preserving their culture and nature.

Jul 9-31 In Store Promotion, Galerie Kaufhof, GermanyIn cooperation with the Indonesian embassy in Germany, CBI marketed the products of assisted SMEs in Kaufhof gallery, Berlin.

Jul 12-15 Halal Expo, SingaporeIn cooperation with the Indonesian embassy in Singapore, CBI marketed products of assisted SMEs in Kaufhof gallery, Berlin.

Jul 24-27 Pameran batik Warisan Budaya – Industry Ministry, JakartaCBI aimed to communicate the program by serving as speakers at the talk show and expo.

Sep 10Program Roll Out in Makassar, South SulawesiContinuing its mission in greening the batik industry in Indonesia, CBI has now expanded its targeted project location to Makassar in South Sulawesi, a region in Indonesia with vastly different batik industry characteristics.

Sep 18 Indonesia Fashion Week 2012


E K O N I D N E W SB U S I N E S S F O R U M

and the Riau islands Province held a joined business forum entitled “Prospect and investment

opportunities in the free trade zone batam, bintan and Karimun (bKK)”. aimed at promoting investment in the province of Riau islands, the event was a huge success with more than 50 people participating in the active discussion which was moderated by economist margaret Pohan from frost and Sullivan consulting. among the guest speakers were Rudy Salahuddin, Director of investmet Planning for Services and zone bKPm and Rustam hutapea, Director investment and marketing batam indonesia free zone authority. *more on page 8

KEPRI Business Forum


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Job Market

E K O N I D N E W SH U M A N C A P I T A L C L U B

november, eKoniD human capital club’s (hcc) discussion was titled “from cross culture training to corporate culture transformation”.

more than 25 participants from a number of companies in Jakarta attended the working group led by mr. indra budiman.

among the topic discussed were business growth in indonesia as the magnet to multinational company investments, doing business in indonesia – the cross culture wave, and managing top level commitment and support to synergy with grass roots involvement and consistency.

if you are interested in joining the next hcc session, do not hesitate to contact us via email at [email protected]. Please keep in mind that hcc is addressed exclusively to hR managers.

Human Capital Club

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 (for members of eKoniD), respectively 10% of the brutto annual salary (for non-members).

Indonesians looking for work

candidates can apply by visiting our website and submitting a resume at www.ekonid.com. for futher information please contact mr. iwan nasution, tel.: 6221-3154685, fax.: 6221-3155276, e-mail: [email protected]

Administration Staff, 24 y., f., uni. indonesia, majoring in public administration,fresh graduate, computer Literate; Language : english, is looking for a job in Jabodetabek.iaS/11/12

Administration, 25 y., f., unPaD bandung, majoring in german Literature ; computer Literate : Languages : english, german, italian and Spanish, is looking for a job in Jabodetabek/bandung.f2R/11/12

Analyst/Finance Staff, 32 y., m.,fhtW berlin 07,6 y. exp. in same field; computer: mS Project,toP Sim,Visio,mS access,SQL,SaP R/3mS office, SPSS & eviews; Languages : english, german, is looking for a job in Jakarta.f1S/11/12

Master Degree Interculture Communication, fh fulda, 28 y., f.,computer Literate; mS office, adobe Photoshop,Languages : english, germany, is looking for a job in Jabodetabek.i1S/11/12

Mechantronics Engineering, f., uni. aachen, 1 y. exp. in it/eDV field; computer Literate : Languages : english, german, is looking for a job in malang/Jakarta. i3i/11/12

Marketing, 24 y., f., Sgu, majoring in marketing and international business, computer : mS office, PhStat2 : Language : english, is looking for a job in Jabodetabek.i4m/11/12

Marketing, 32 y., f., academy management of kesatuan, bogor, 4 y. exp. as marketing; computer: mS office, mS Publisher, macromedia freehand mX, Language : english, is looking for a job in Jabodetabek.i5t/11/12

Marketing, 22 y., m, uni. President, majoring in management. 1 y. exp., computer Literate ; Language : english, is looking for a job in Jabodetabek.i6a/11/12

Marketing, 31 y., m., computer Literate ; Language : english, is looking for a job in Jabodetabek.i2m/11/12

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E K O N I D N E W SG E R M A N U N I T Y D A Y

embassy of the federal Republic of germany for indonesia threw a lavish reception at the Kempinksi hotel grand ballroom to celebrate the 20th anniversary of german unity Day.

more than 1,000 guests -mainly those representing german community in indonesia- attended the event which was officiated by h.e heidrun temple, the chargé ď affaires a.i of the federal Republic germany. among the attendance were former indonesian President b.J habibie, religious scholar franz magnis-Suseno, and indonesian celebrity- the half german-ira Wibowo.

the celebration began with the announcement of germany’s assistance of uS$3 million in aid for earthquake victims in indonesia which was received with resounding applause. a minute of silence was observed in memory of people who lost their lives in the 7.6-magnitude earthquake. today, there are about 2,500 germans living in indonesia and more than 200 german companies operate here.

German Unity Day


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hosted the September 2012 european Joint gathering. held at merchantile club Jakarta on 13

September 2012 the event was a huge success attracting nearly 200 guests from five european chambers in Jakarta including britcham, eKoniD, ina, ifcci, and eurocham. the director of britcham, chris P. Wren officiated the event, which was also supported by the Province of Riau islands.

European Joint

Gathering

E K O N I D N E W SE U R O P E A N G A T H E R I N G


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E K O N I D N E W SG E T T O G E T H E R

october event featured a middle eastern style get together, held at maroush - moroccan fine Dining Restaurant in

crowne Plaza hotel. it’s arguably one of the most beautiful restaurants in town. the authentic and exotic ambience transported our get together participants in a flash to the one thousand and one night tale. one of the evening’s highlights was a belly dance performance, while native moroccan chef prepared signature middle eastern and indian dishes pampered the appetites of our guests. menu items included, Roasted Lamb with mushroom Sauce, chicken tagine Lemon olive, and bademli balik. numerous mouthwatering middle eastern sweets were also presented such as baklava and almond fillo pastry.

Get Together October


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a very busy november this year, eKoniD still got to hold its signature get together. once again that we

hit bacchus bar at the intercontinental Jakarta midPlaza hotel, a well-chosen venue thanks to its intimate bar setting and relax ambience. this time Riau islands Province took the honor of becoming our get together’s main sponsor. Keeping with our signature compliments, guests enjoyed free flows of quality wines along with a wide selections of pastas, sushi, and mouth watering desserts such as chocolate mousse and home-made tiramisu.


Get Together November


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OktoberfestSheraton Surabaya Hotel & Towers

OktoberfestDie Stube

the many venues that celebrated oktoberfest in Jakarta, Die Stube threw its 7th oktoberfest this year. the annual event

was a huge success, attracting well over 800 people into the big tent over the two days. the variety and quality of the food prepared by executive chef Ralf Schmidt and his team was well received and bir bintang and erdinger beer helped ensure that people remained in good spirits. mc hubert born and the two men band auner andi and franz flown in from tirol sponsored by Lufthansa provided the oktoberfest with a full entertainment of bavarian alps music.

first ever oktoberfest to be staged in the east Java capital of Surabaya took place from 12-13 october 2012

at the Sheraton Surabaya hotel & towers. more than 200 guests attended the two–day event held successfully in cooperation with Sheraton Surabaya hotel and towers, Deustche bank, mercedes-benz, Lufthansa, Wisma Jerman, festo and mamas,

also featured at the event was a performance by the bavarian band andi auner. an oktoberfest gate was erected at the entrance decorated with pictures of typical german feasts. Signature german dishes such as Pork Knuckle with mustard sauce, bavarian meat Dumplings Knoedels with bacon, grilled german Sausage, Lebkuchenherzen, and bavarian pretzel were among the menu selections. as for the beers, San miguel and carlsberg were generously poured into large signature mugs specially designed for the octoberfest, which guests could take home as a fitting souvenir. See you next year in Surabaya’s second oktoberfest!


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the purpose of thanking employees for their hard work, providing a chance to establish friendship outside office

walls, and to develop more solid team work, all eKoniD employees gathered at Lido Lakes Resort, Sukabumi-West Java on 5-6 october 2012 for a company outing. numerous activities were conducted during the two-day outing, including team building games, bbQ night, live music performances and a rafting competition.


Company Outing Think Less Business, More Fun!


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new innovative personalities: new SL Roadster, new generation g-class and cLS Shooting brake,

and five more including b 200, mL 350, e 300 aVantgaRDe, amg, c250 avantgarde and S 350 were exhibited at the country’s grandest automotive event known as iimS 2012. also spotted were the smart fortwo passion coupe mhd 52kw and the smart fortwo assion cabrio mhd 52kw.

“it’s with great pride that we introduce three unique personalities, each of them expressive in their own ways,” Sales & marketing Director, Stephan moebius said. the first is the new SL 350, fresh and in prime condition, ready to capture the hearts of automobile enthusiasts across indonesia. this roadster resembles an agile athlete, muscular and strong with very attractive proportions.

it’s key feature is its light, aluminium body. at 120 kg lighter than its predecessor, it’s able to reduce fuel consumption by 29 percent. this mercedes-benz comes with “magic Vision control”, an innovative wiper system designed to raise safety standards towards new heights. now for the g-class known in indonesia as g 63 amg, this off-road icon truly appeared authentic and solid when first introduced 33 years ago. equipped with a permanent 4x4 drive train, 4-etS electronic traction system, including three 100 percent differential locks in addition to a 50 percent off-road ratio.

the model has no problem in entering the sportscar performance level (544hP, 760 nm torsion, 0-100 km/h acceleration in 5,4 seconds) and ever in control with amg high Performance brakes.” meanwhile, cLS Shooting brake boasting a modern and unique fasback coupe concept, it combines sportiness with luxury. this five-seater has great performance and a large-capacity trunk of 590-1150 liters. it offers comfort and controlled agility with its “aiRmatic”, “Direct control” dan “Direct Steer” technology.

Participating for the first time at an iimS exhibition, President & ceo of mercedes-benz indonesia, Dr. claus Weidner’s said: “We are honoured to welcome our customers and colleagues to the “mercedes-benz “base”. here they get premium hospitality, uncompromised luxury, and innovation with every glimpse. the theme ‘irresistible Luxury. experience the fascination’ really emphasizes our position as the leading brand in indonesia.”

Mercedes-Benz Indonesia:

Irresistible Luxury. Experience the Fascination

Mercedes-Benz Indonesia mounts “Irresistible Luxury. Experience the Fascination” at IMMS 2012

E K O N I D N E W SP R E M I U M P A R T N E R


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E K O N I D N E W SP R E M I U M P A R T N E R

Lufthansa supports

big growth of automotive industry worldwide, the well-built current automotive industry in

indonesia and the target set to become the largest automotive market within aSean, indonesia characterizes itself as an ideal investment country. this opportunity has seized by global automotive industries by locating and branching their business in most region in indonesia.

SPECIAL OFFERS TO AUTOMOTIVE INDUSTRY

With Lufthansa’s best network product, automotive industries workers are able to reach over than 50 automotive industry destinations worldwide easily, from Jakarta to Detroit, gothenburg, germany, turin, hanover, São Paulo, and many more. Reaching more than 200 destinations worldwide, Lufthansa understands the automotive industry travel needs with the utmost of flying in premium facilities and services at affordable fares.

We offer you valuable specials to add the value of your flights.

1. PartnerPlusBenefit :

the Lufthansa corporate bonus Programme PartnerPlusbenefit (PPb) pays for your flights! Lufthansa gives you the benefitPoints as a reward to your company for flying its employees with Lufthansa. then you can exchange the benefitPoints with distinctive awards. free

flights, class upgrade, excess baggage allowance, cash back option, and a lot of attractive awards redemption that will save your company travel costs.

as a PPb member you will have a 24hour access everyday to your benefitPoints account and be up to date informed about the programme. combine your corporates PPb accounts with your personal miles & more accounts, to get the double benefits and very valuable flights.

2. Corporate Nett Rates :

Lufthansa special offers for corporates customers. through the corporate products nett Rate (cnR), a company with high frequency of flying, can get a special discount, along with a better terms & conditions than the market fare.experience premium flights and exclusive service with valued offer for your company. this is good opportunity for your company travelling budget savings.

Reach the worldwide destinations you need - that not every airline could serve from Jakarta, in a comfortable world class servcie, yet at affordable fares and added values that benefit your finance industry needs.

travelling needsAutomotive industry


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E K O N I D N E W SM E M B E R N E W S

mitraco Surya was founded by european expatriates in

1992. the indonesian economy was flourishing during the 90’s, and it was easily possible to obtain support from world-wide sources. the company quickly became successful in the trading of various commodities. mitraco’s core competency in commodities remains unchanged and efforts are underway to expand into iron/nickel ore and coal. equipment and machinery have always belonged to the company’s product mix, and mitraco recently became agents for ellicott Dredge LLc of baltimore, mD, and more recently of catalyst

energy technologies of Seattle, Wa, developers of energy back up systems.

Power in all forms is a corporate priority. the company has for some years actively pursued a geothermal power plant project in aceh and has been materially involved in obtaining german government grants and loans in support of the project. the company’s parent company marshfield co. Ltd., hong Kong has entered into a joint venture with a substantial german company, and a prominent indonesian company with direct investments in other power plant projects.

in october 2012, eKoniD conducted its member Visit Program with the objective of acquiring more information on each member’s core business and in order to provide services

nobi Putra angkasa, established on 26 July 1984,

is the first producer of cable ladders and cable trays in indonesia. Since its establishment, the company’s range of products and services are continuously improved and enhanced by developing and producing panel boxes or enclosures in the early 1990s and electrical switchboard systems beginning in 2010.

being a pioneer in the field, Pt nobi Putra angkasa has been serving many industrial needs of high quality cable Support Systems and enclosures. furthermore, the company is also capable of tailoring a semi customized

and fully customized enclosure and cable trays. the company is accredited with international Quality management certification by tuV for iSo 9001 version 2008 in the area of design, manufacturing and marketing of cable Support Systems, enclosures Systems, and electrical Switchboard Systems. they are experienced in different types of projects and cooperate with foreign companies as well. further growth has been planned for Pt nobi Putra angkasa and its business is bound to expand, deploying among other strategies the investment into an enlargement of the company’s production site.

Pt nobi Putra angkasa has become eKoniD member in 1993. aware of eKoniD’s capacity as a strategic interface in boosting the trade and investment

of indonesian-german economic ties, the company is seeking more contacts and business opportunities through its membership with eKoniD.

the company is open for a future mutual cooperation with eKoniD, such as for a Joint trade exhibition in germany. they also eager to interact more with other eKoniD members and to share experiences with them to gain more benefit from their membership.

“Looking forward to more cooperation with EKONID”

in a wider range of fields. mitraco Surya’s President Director, Wolf Dieter grosse, welcomed the eKoniD representatives in mitraco Surya office at Jakarta’s cityloft building. being member actively since 1998, mitraco appreciates cooperation with eKoniD. grosse said that he always asks eKoniD if the company needs information about government issues. he knew well all eKoniD services and regularly joins events such as monthly get together or the business luncheon. mitraco Surya is committed to the indonesian market where it has deep roots. the company understands and appreciates the complexity of the market and is available as a bridge to a nation that will lead developing countries for decades to come.

MITRACO SURYA


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E K O N I D N E W SN E W M E M B E R

New Member

EKONID Membership

Create your goal and enhance your business strategy. We will gladly provide the right network for you. As our special member you we will have previleged access to information and granted exclusive rights to EKONID’s entire range of services.

For more information please contact:

Mei TobingHead of Membership & Events DivisionPhone: +62 21 3154685 Email: [email protected]

Be part of the Indonesian-German business community!

Mr. Adji Sujiantoc/o FRONTPAGE WINE & DINEPlaza gani DjematJl. imam bonjol no. 76-78Jakarta 10310Phone : +62-21- 3903614/ 52892431 fax : +62-21-52892433/7194617 email : [email protected] : f&b, company Legal,

Working Permit, eo, Wedding equipments Rental

BSH HOME APPLIANCES, PTMrs. Rizki FontanaHRD ManageraPL tower, 20 fL Suites 7-9,Jl. Letjen S. Parman, Kav 28Jakarta barat 11470Phone : +62-21- 29346100 / 29346160 fax : +62-21- 29034473email : [email protected] : trading

GRAND MERCURE JAKARTA HARMONI HOTELMs. Steffi PrawitasariPersonal AssistantJl. hayam Wuruk no. 36/37Jakarta Pusat 10120 Phone : +62-21- 3452977/ 8 fax : +62-21- 3457240email : pa.grandmercurejakarta [email protected] : hotel industry

SI BUAH RAYA, PTMr. Tilman SchneiderPresident DirectorJalan mas dul hak 15medan 20152

Phone : +62-061-4512343 fax : +62-061-4518284email : [email protected] activity : oil palm plantation and trading

and consultancy

KANTOR PENGHUBUNG KEPULAUAN RIAUMr. Muhammad HeykalKetua Hubungan Antar LembagaJl. Dempo i no. 30Kebayoran baru, Jakarta SelatanPhone : +62-21-7236701 / 7237701 fax : +62-21-7258701email : [email protected] : liaison office for Riau Province

GOPAMs. Iva HristovaConsultanteconomic growth and governancehindenburgring 1861348 bad homburg, germanyPhone : +49-06172-930402 / 930415fax : +49-06172-930400 / 930440email : [email protected] activity : Planning and implementation

of projects, consulting of institutions.

CITRA BUANA MEKAR MANDIRI, PTMrs. Wenny SetyawatiGeneral ManagerJl. baranangsiang indah ii no.. 6Kel. baranangsiang, bogor timur 16143Phone : +62-0251-8379 8897fax : +62-0251-8379 8897 email : [email protected] activity : travel

FH BERTLING LOGISTICS INDONESIA, PTMs. Sari SafiantiSales & Marketing Managerthe east building 30th floor unit. 02Jl.Dr. ide anak agung gde agung Kav.3.2

no.1, Jakarta 12950Phone : +62-21-57958058 fax : +62-21-57958057 email : [email protected] : freight forwarding

MTU INDONESIA, PTMr. Henry Suryapranata TioPresident Directorcilandak commercial estate building 109Jl. cilandak KKo, Jakarta 12560 Phone : +62-021-7891410fax : +62-021-7891452-53email : [email protected] : big trading-main distributor,

export, import, service after purchase

GRAHA SAMARA, PT (ARTOTEL)Mr. Eduard Rudolf PangkeregoGeneral ManagerDR. Soetomo 79-81, Surabaya 60264 Phone : +62-31-5689000fax : +62-31-5663000email : [email protected] activity : hotel

LEONSEHATI INDONESIA GEMILANG, PTMrs. Katharina GosalDirectorJl. cikini Dalam no. 7, Rt/RW 01/01bintaro Jaya Sektor 7tangerang 15223, bantenPhone : +62-021-7453578fax : +62-021-7453498email : [email protected] activity : Stuffed toys manufacture

slogan of the headline was part of the presentation

which h.e. minister of Public Works mr Djoko Kirmanto delivered on october 26th in berlin during the congress of cece, the committee for european construction equipment (www.cece.eu). the committee is chaired by mr Johann Sailer who also serves as chairman of VDma Sector construction equipment and building material machinery. the connection to bauma 2013 is inherent, hence, the initiative to invite the minister of Public Works. the theme of this year’s cece congress “making it in europe” refers to the challenge of designing and producing construction equipment in europe whilst the european market shrinks as a proportion of global demand and competition from outside europe grows. the cece had invited an excellent panel of speakers that looked at challenges from different angles and focusing on different aspects. in the minister’s speech during the economic forum a spotlight on indonesia provided interesting insights into the country’s economic developments, markets forecasts and business opportunities.

on october 11-12 eKoniD was the supporting partner of the asia Pacific mining conference organized by Quad mice in Jcc. two members of VDma and long-term exhibitors of bauma were announced to hold a presentation about german technology in mining and to spread the information about bauma

2013 Partner country indonesia. one of them was ms yenny Wong of mbe coal & minerals gmbh from cologne also having a representative office in Jakarta (Pt mbe coal and minerals technology indonesia). the eKoniD trade fair team also informed interested conference participants about bauma.

registration with eKoniD. VDma, the german engineering association, as conceptual sponsor of the partner country project, will provide these tickets to the indonesian visitors.

on January 29-30 messe muenchen will organize a media Dialogue where journalists from all over the world are invited to join to report about bauma 2013. indonesia will be given a special moment to be presented together with the VDma booth over there and of course indonesia will be mentioned during all presentations and press conferences taking place as the partner country of bauma in 2013.

bauma 2013 – the 30th international trade fair for construction machinery, building material machines, mining machines, construction Vehicles and construction equipment - will be a milestone in the way forward for indonesia’s development as indonesia will be presented to more than 500,000 trade visitors. as the largest and perhaps the most impressive trade fair in the world it features all sectors, all market leaders and plenty of innovations of more than 3,000 exhibitors on 575,000 sqm.

For more information please contact Ms Daniela Gekle at [email protected] and visit www.bauma.de/en.


F A I R S R E V I E WB A U M A 2 0 1 3

With improvement comes greater responsibility

The Way Forward

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another milestone of the project was the participation at Konstruksi indonesia at the end of november at Senayan, a fair organized by ministry of Public Works (www.konstruksiindonesia.com).

eKoniD with bauma 2013 Partner country indonesia is also Supporting Partner of the South east asia mining Summit on January 31 - february 1 in Jakarta (www.noppen.com.cn) as well as during the iibt & heavy equipment fair on march 26 - 29 at Ji expo Kemayoran (www.iibt-exhibition.net). the trade fair team will inform interested visitors about bauma and the Partner country concept . as all indonesians will be guest of honour during bauma 2013, free entrance will be offered after pre-

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Garden furniture from Indonesia to be enjoyed across Europe

2012 has success-fully closed its

doors in 2012. altogether, 36,300 trade visitors from 103 countries travelled to cologne for the “green” sector’s trend show. the proportion of visitors from abroad was 58 percent. on 235,700 square meters of floor space at the exhibition centre, 1,975 suppliers from 56 countries presented their goods and services, designed to make the garden a more attractive, more practical and more comfortable place to spend time in.

this year spoga+gafa again recorded a high number of qualified trade visitors. this is confirmed by the results of the visitor survey. over 90 percent of the respondents were involved with procurement decisions - 43 percent of them in a pivotal capacity. the feedback from trade visitors was also positive. around 80 percent said they were satisfied or very satisfied in terms of achieving their goals at the fair.

Indonesian Participation at spoga24 companies from indonesia presented themselves at the fair in 2012, 7 of them are supported by the Swiss import Promotion Programme (SiPPo) located in hall 3.2, in addition to another 17 companies allocated to hall 3, 5 and 11. indonesian exhibitors expressed positive feedback and said

that the turnover was satisfying.

as an international trade fair, spoga is a must-participate event. nevertheless, increasing product prices did not seem to affect customers so long the quality of products is well maintained, said bayu Jatnika from Siantan Suryatama. in addition, Danny andreas from ateja said that customers and prospective customers are coming, meaning that the crisis in europe has no influence on the business of indonesian exhibitors.

“this year is much better than last year! new prospective customers came from the uK, albania, Russia, the uS, and Dubai, totaling more than 80 contacts. Prospective customer from albanian hypermarket plan to purchase products from Romana Wicker. Previously, the albanian hypermarket got its products from china, as china’s prices are comparatively lower than indonesian prices. because the products from china weren’t as durable the company placed an order with our indonesian company”, ericson of Romana Wicker said. according to Ronny tirtajasa of Romana Wicker, dealing with the european market means to consider the following important components: price, materials and quality. “Due to the strenghtening bilateral relations between indonesia and germany, the

indonesian embassy in germany will support all activities by the indonesian government or indonesian companies” Suprapto from the indonesian embassy in germany said.

Outlook: Casual, cool chic and sustainable power - these are the trends for 2013the focus is on casual, cool lounge chairs and pillows as well as playful creations which invite a person to sit down and relax - while also scoring points for their high quality and design.

barbecuing is also becoming an ever more comfortable activity. consumers want individualized barbecues tailored to their specifications. at the same time, grills offer an increasing number of possibilities for preparing a more diverse menu. in order to make outdoor fun last long into the evening, outdoor lighting and decoration is making a stronger showing.

The next Spoga will be held from 8–10 September 2013, for participation please contact Mrs. Prieta Perthantri via email to [email protected]

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The Perfect Gateway

few years, iffina has grown from a minor event to an indispensable stop on asia’s circuit

of furniture events. When iffina 2013 opens its doors in Jakarta on march 11-14, the trade show promises even more of what it has become famous for: the perfect gateway for sourcing from indonesia’s wide selection of furniture and crafts.

indonesia has an abundance of natural resources that include woods, rattan and stones. using these natural materials, over centuries of development talented and skilled local craftsmen have developed techniques and styles that blend nature and practicality. today, the traditional skills are being enchanted by blending modern and traditional materials to create unique and interesting design. therefore, the indonesian furniture and craft industry has a very promising future.

a valuable and renewable energy source, indonesia forests provide timber and other raw materials for forestry industry. With exports of forestry products comprising almost one quarter of indonesia’s total exports to the world, forestry- based industry is one of the most prominent economic sectors among the country’s leading exchange earners. indonesia’s forestry-based industries vary considerably in size and scope. they range from small-scale cottage industries producing wood products for the local market to large-scale furniture producers, plywood manufacturers and other related industries.

in line with economic development strategies, the government has imposed limits on the export of raw materials (including rattan). this has helped to motivate further development of the national furniture industry, created employment opportunities and is increasing penetration of the international furniture and hand crafted product market.

even so indonesia’s leading product have to compete with those from other countries, such as china, Vietnam, myanmar and several east european countries that have also increased product quality together with lowering selling prices. thus, the time has come for indonesians to present their best products to the world, to show that our products are of excellent value and are capable of fulfilling the needs of international consumers.

on sixth international fair, iffina gain a good impression and support from the furniture industry in all regions in indonesia. What makes iffina’s showcase truly unique is the sheer diversity of natural resources that find their way into some of the most original creations to be found in furniture and crafts. across the archipelago, indonesia’s artisans have perfected centuries-old traditions of using timber, rattan, water hyacinth, wax, glass, sea-grass, cane and other resources to design household items, from the practical to the decorative. few countries can match such offering.

to find out more, please visit www.iffina-indonesia.com



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and suppliers from all over the world – global companies and Smes alike –

meet up here with all sizes of producers and retailers of beverages and liquid food products. thus, drinktec is the most important trade fair for the sector. moreover, within the sector drinktec is regarded as the number one platform for launching new products on the world market. at this event manufacturers present the latest technology for processing, filling, packaging and marketing all kinds of beverages and liquid food – raw materials and logistics solutions included. the themes of beverages marketing and packaging design round off the portfolio.

the new subtitle for the fair: “World´s Leading trade fair for the beverage and Liquid food industry – Processing + filling + Packaging + marketing” is intended to reach out more effectively to the fair´s target groups, in particular visitors from the various segments of the beverages industry. “drinktec so far has been perceived primarily as a trade show for technical solutions, but in fact it has a much broader base than this,” explains Petra Westphal, the exhibition group Director at messe münchen responsible for drinktec. “the sections on packaging materials and packaging design are just as important at this exhibition as beverages concepts and marketing services. the new subtitle is intended to express that better.”

The World’s Leading Trade Fair for the Beverage and Liquid Food Industry

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Drinktec does after all appeal to professionals from all fields of activity in the food and liquid food industry. Specifically, these include managers and employees in purchasing, marketing and communications, research and development/innovation, production/filling/packaging, quality control, logistics, sales, human resources, finance/controlling and maintenance.

Drinktec 2013, which takes place at the messe münchen exhibition center in munich, from 16-20 September 2013, is expected to attract around 1,500 exhibitors from over 70 countries and approximately 60,000 visitors from more than 170 countries.

For more information please log on to www.drinktec.com or please contact Mr. Adrian Nugraha via email to [email protected]


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is europe’s leading trade fair for the vending machine business, while coffeena is a fair

that puts the whole world of coffee under one roof. together, the two form a perfect duo. you too can benefit from this unique combination, which promises to provide valuable synergies and profitable contacts right in the heart of germany — europe’s most important market. the biannual trade fair duo recorded a substantial increase in visitors in 2011 and will be held again in cologne from 19-21 September 2013. around 5,600 trade visitors from 60 countries used the opportunity to gather in-depth information, place orders and engage in networking for vending and coffee-related topics.

indonesia is currently the fourth largest producer of coffee in the world. coffee in indonesia began with its colonial history, and has played an important part in the growth of the country. indonesia is located within an ideal geography for coffee plantations. today, more than 90 percent of indonesia’s coffee is grown by smallholders on farms averaging one hectare or less. much of the production is organic and 19 farmers’ cooperatives and exporters are internationally certified to market organic coffee.

there are more than 20 varieties of coffea arabica being grown commercially in indonesia. indonesia with its many islands is able to plant and produce a wide range of coffee beans, each possessing a unique character of taste due to its different geographical origin.

indonesia’s coffee industry is represented by two associations. the association of indonesian coffee exporters (aice), also known by its indonesian acronym “aeKi”, is composed of

arabica and Robusta coffee exporters. aice was founded in 1979 and it issues compulsory export licenses for coffee. the Specialty coffee association of indonesia (Scai) was formed in 2008. Scai members focus exclusively on the production, export and marketing of indonesia’s arabica coffees. this includes farmers’ cooperatives with 8,050 members, exporters, roasters, importers and coffee retailers in the arabic coffee industry.

coffeena, the international trade fair of everything and anything coffee, covers the entire supply chain – there’s really nothing quite like it. a unique trade fair concept from the bean to the cup facilitates the success of both exhibitors and visitors. in conjunction with eu’Vend focusing on vending machines, it is the perfect place for attracting new and lucrative target groups such as coffee machine operators. coffeena is a great meeting place, this is where participants can meet all of the decision-makers from the trade and food service / catering market.

Who should exhibit Coffeena?• coffee cultivation, transport, storage and trade• coffee processing• coffee preparation, accessories and ingredients• coffee bar equipment, drinks, supplement product

ranges• coffee organisations, services and other

To learn more about Coffeena + Eu’Vend log on to www.euvend-coffeena.com. For registration please contact Mrs. Prieta Perthantri via email to [email protected]

EU’VEND & COFFEENA The whole world of Coffee



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münchen international is expanding its international network for the environmental technology sector with the launch of ifat inDia

which premieres between 24-26 october 2013, at the bombay convention & exhibition centre in mumbai. the bcec is one of india’s largest conference and expo centers, offering well-equipped exhibition halls and outdoor exhibition space. the organizers – messe münchen and its subsidiary mmi india – are expecting around 100 exhibitors and 6,000 visitors to this first edition. an estimated 6,000 square meters of exhibition space will be used for the fair. as its mother ifat in munich and big sister ifat china (ie eXPo) in Shanghai is expected to become leading trade fair for Water, Sewage, Refuse and Recycling in the country.

of Seafood, a professional trade fair catered for the seafood and frozen seafood industry, will make its

debut at imPact exhibition center in bangkok, thailand, from 22-26 may 2013. held in conjunction with the 10th edition of thaifeX – World of food asia 2013, the platform is a ‘must attend’ for wholesale, distribution, retail and foodservice buyers from all over the world. the products at World of Seafood are chilled seafood, Dried seafood, fresh seafood, frozen seafood, Processed seafood, Ready-to-eat seafood.

the asian region is a major supplier of fish products to the eu market. over the past five years in particular, the aquaculture sectors in some asian countries have become an important producer as well as exporter of whitefish and shrimps. indonesia is the world’s second largest seafood producer with a total capture fisheries and aquaculture production of over 9.8 million tons in 2009, almost 50 percent of which comes from aquaculture. Seafood contributes approximately uS$ 4 billion (or 1 percent) to the gDP. in 2009, only about 10 percent of the total volume of seafood production (881,000 tons) worth uS$ 2.8 billion was exported. overall, around 5 million people depend on the fisheries and aquaculture sector for their livelihoods.

the indonesian government described and explained its ambition and strategy with regard to the seafood sector in its industrialization policy. the keywords are market strengthening, industrialization and community empowerment. the government states that marine and fisheries industrialization is a process to enhance production systems to increase value adding capacity, productivity and the scale of production of fisheries products through modernization. this is supported by an integrated policy between macroeconomic development, infrastructure development, business and investment climate, knowledge, technology and human resources for community welfare (cbi Report 2012 - the indonesian seafood sector. a value chain analysis. www.cbi.eu).

“World of Seafood is an exciting new platform that was developed in response to, and with the emerging needs of the seafood industry sector in mind. the timing is right as Southeast asia’s seafood and frozen seafood industry is booming, with a contribution of 20 per cent to the global fishery production in 2009 and growing. the organizers, comprising Koelnmesse, the Department of international trade Promotion, and the thai chamber of commerce, in collaboration with the thai frozen food association, are bringing together a wealth of experience to harness and raise the level of economic activity to the next level,” says michael Dreyer, Vice President asia Pacific, Koelnmesse.

World of Seafood will be organized alongside thaifeX - World of food asia in 2013. With more than 1,000 exhibitors and 25,270 in visitor numbers, World of Seafood offers you the right audience for your business from the beginning! 4,899 visitors of thaifeX - World of food asia are relevant buyers for World of Seafood 2013. meet with quality buyers from the asia region.

For further information please log on to www.worldofseafood.com or please contact Mr. Adrian Nugraha at [email protected]

World of Seafood 2013:

Cast Your Net for Asia’s BestPart of Thaifex – World of Food

Range of Productsifat inDia gives the environmental industry the most comprehensive range of products and services in the region, the latest state-of-the-art technology and a wide range of superior-quality services for all sectors of the environmental industry. it covers the sectors for water, sewage, refuse, recycling and energy conservation.

• Water extraction, desalination• Water and sewage treatment• Water distribution, sewers• Refuse disposal and recycling• energy from waste materials• Decontamination of old sites/soil treatment• air pollution control and noise reduction• energy efficiency technologies and services• measuring, control and laboratory technology• environment management and services• Science and research

For more information please log on to www.ifat-india.com or contact Adrian Nugraha via email to [email protected].

New Environmental Technology in India


WORLD

MESSE

Kölnmesse

Messe München

Mrs Prieta [email protected].: +62-21-3154685fax: +62-21-3155276www.koelnmesse.com

Ms Daniela [email protected].: +62-21-3154685fax: +62-21-3155276www.messe-muenchen.de

InternationalTrade Fair Calendar

BAU Munichthe World’s leading trade fair for architecture, materials, Systemmunich, January 14 – 9, 2013http://www.bau-muenchen.com/

ISPO Munichthe leading international sports business trade showmunich, february 3 – 6, 2013www.ispo.com

bC India international trade fair for construction machinery, building material machines, construction Vehicles and equipmentmumbai, february 5 – 8, 2013www.bcindia.com/

INHORGENTAtrade Show for Jewelry and Watchesmunich, february 22 – 25, 2013www.inhorgenta.com/

ISPO Beijingthe leading international sports business trade showbeijing, february 27 – march 2, 2013www.ispo.com

Baumainternational trade fair for construction machinery, building material machines, construction Vehicles and equipmentPartner country indonesia (Logo)munich, april 15 – 21, 2013www.bauma.de/en

IE EXPOinternational trade fair for for water, sewage, refuse, recycling, air pollution control and energy conservation.Shanghai may 13 - 15, 2013www.ie-expo.com/

Transport Logisticthe world of transport logisticmunich, June 4 – 7, 2013www.transportlogistic.de

DrinktecWorld’s Leading trade fair for beverage and Liquid food technology munich, September 16 - 20, 2013www.ie-expo.com/

IFAT Indiainternational trade fair for for water, sewage, refuse, recycling, air pollution control and energy conservation.mumbai, october 24-26, 2013www.ifat.de/en/hidden/ifatindia

ProductronicaWorld’sinternational trade fair for innovative electronics productionmunich, november 12 -15, 2013www.productronica.com

International Toy FairsMs Daniela [email protected].: +62-21-3154685fax: +62-21-3155276www.messe-muenchen.de

Spielwarenmesse International Toy Fairthe number 1 toy fairnuremberg, January 30 – february 4, 2013www.toyfair.de

Toys and Gameshong Kong, January 7 – 10, 2013www.hktdc.com

World of Toys Russiamoskow / Russia, march, 13 – 15, 2013www.world-of-toys.org

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Messe SchweizMs Daniela [email protected].: +62-21-3154685fax: +62-21-3155276

Mubamulti-product fair, guest country indonesiabasel, Switzerland, february 22 – march 3, 2013www.muba.ch

IMMthe international furnishing showcologne, January 14 – 20, 2013www.imm-cologne.com

ISMthe world´s biggest confectionery trade faircologne, January 27 – 30, 2013www.ism-cologne.com/en/ism/home/index.php

IDSinternational Dental Showcologne, march 12 – 16, 2013www..ids-cologne.de

Interzumthe international meeting point for the supplier industrycologne, may 13 – 16, 2013www.interzum.com/

Thaifex – World of Food Asiainternational trade-exhibition covering food & beverage, food catering, food technology, hospitality Service and Retail & franchisethailand, may 22 – 26, 2013www.worldoffoodasia.com/

SPOGA+GAFAthe garden trade faircologne, September 08 – 10, 2012www.spogagafa.com

Eu’Vend & Coffeenathe Whole World of coffeecologne, September 19 – 21, 2012www.euvend-coffeena.com

Kind und Jugendthe leading global fair for the baby and toddler outfitting sector with trends and innovations for your success!cologne, September 19 – 22, 2013www.kindundjugend.com

CLEAN ENERGY EXPO ASIAtrade fair and conference, covering Various areas within the Renewable Sectorbangkok, September 25 – 27, 2013www.cleanenergyexpoasia.com

Anugathe world´s leading food fair for the retail trade and the food service and catering marketcologne, oct 05 – 09, 2013www.anuga.com/en/anuga/home/index.php


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Media Partners:

PT Peraga Nusantara Jaya Sakti

INDO INTERTEX 2013INATEX 2013Jakarta int’l expo Kemayoran, april 18 – 21, 2013www.peragaexpo.com

PT Wahana Kemala Niaga Makmur

INDOAUTOMOTIVEJakarta int’l expo Kemayoran, may 23-25, 2013www.indoautomotive.com

PT Debindo Multhi Adhiswasti

INDOBUILDTECHJakarta convention center, June 2013also held in bali, Surabaya, medan, balikpapan, bandung, makassar, yogyakartawww.indobuildtech.com

PT Napindo Media Ashatama

ASPACPOLINDOSECURITYINDOFIREXJakarta convention center, may 29-31, 2013www.aspacpol.comwww.indosecurity.comwww.indofirex.com

INDO WATER 2013 INDO WASTE 2013 INDORENERGY 2013Jakarta convention center, July 3 – 5, 2013www.indowater.comwww.indowater.comwww.indorenergy.com

PT Prakarsa Sinergi Utama

COSMOBEAUTE INDONESIA 2013Jakarta convention center, october 2013www.cosmobeauteindonesia.com

PT Wahyu Promo Citra

EDUCATION & TRAINING EXPOJakarta convention center, January 24-27, 2013www.indonesiaeducationexpo.com

INDOGREEN & FORESTRY EXPOJakarta convention centre, april 2013www.indogreen-ina.com

AGRO & FOOD EXPOJakarta convention center, may 2013www.agrofood.co.id

PT Kristamedia Pratama

INDO POWER Jakarta int’l expo Kemayoran, april 3 –5, 2013www.indo-power.com

INDOLEATHER AND FOOTWEARJakarta int’l expo Kemayoran, may 2 –5, 2013http://indoleather-footwear.com

ALLPRINT INDONESIA Jakarta int’l expo Kemayoran, november 2013www.allprintpaperindonesia.com

INTERFOOD INDONESIAALLPACK INDONESIAJakarta int’l expo Kemayoran, november 2013www.interfood-indonesia.com www.allpack-indonesia.com

PT Pamerindo Indonesia

FOOD & HOTEL INDONESIAJakarta int’l expo Kemayoran, april 10-13, 2013www.pamerindo.com

MANUFACTURING INDONESIA SBYMACHINE TOOL INDONESIA SBYgrand city convention & exhibition centre Surabaya, June 12 –15, 2013www.pamerindo.com

MINING INDONESIABUILDING & INFRASTRUCTURE INDONESIAJakarta int’l expo Kemayoran September 04-07, 2013www.pamerindo.com

PLASTICS & RUBBER INDONESIA 2013 PROPAK INDONESIA 2013Jakarta int’l expo Kemayorannovember 20-23, 2013www.pamerindo.com

MANUFACTURING INDONESIA JKTMACHINE TOOL INDONESIA JKTJakarta int’l expo Kemayoran, December 2013www.pamerindo.com

Ms Daniela [email protected].: +62-21-3154685fax: +62-21-3155276


PT Okto Sejahtera Insani

HOSPITAL EXPOJakarta convention center, october 2013 www.hospital-expo.com

PT Berkania Promosindo

ALL OFFICE EXPOALL SECURITY EXPOALL LED EXPO Jakarta convention centermarch 27-30, 2013http://indonesiatradeexpo.net

BACARYFOOD INDUSTRYPACKPROcelebes convention center, makassar 16-19 may, 2013 http://indonesiatradeexpo.net

PT Kerabat Dyan Utama (Radyatama)

IFFINA Furniture & Craft FairJakarta int’l expo Kemayoran, march 11-14, 2013 www.iffina-indonesia.com

NOPPEN CO. LTD

SOUTH EAST ASIA MINING SUMMITJakarta, January 31 – february 01, 2013 www.noppen.com.cn

PT Global Expo Management

IIBT (Indonesia International Bus, Truck & Commercial Vehicle Exhibition)HEAVY EQUIPMENT Jakarta int’l expo Kemayoranmarch 26-29, 2013www.iibt-exhibition.net

“Seventy percent of our body is made of water. Seventy percent of the earth’s surface is covered by water. it has so many benefits, that’s why we need to use our water carefully,” says Djati anwar Sadad, a grade 9 student of Lab School Kebayoran.

is just one of a few hundred elementary

school and junior high school students having a great time at the opening day of the Science film festival 2012 indonesia held in blitzmegaplex, grand indonesia, Jakarta on 31 october 2012.

Just how important is the festival?

With Prof. Dr. boediono, m.ec, Vice President of the Republic of indonesia, and Dr. georg Witschel, german ambassardor to indonesia

in attendance, it’s a festival of great importance for many reasons. this time the reason was: water. held for the third time in indonesia, the festival’s theme this year was water and it hoped that the festival will heighten awareness to

the growing constraints on the availability,

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Water the most abundant compound in nature


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quality, and use of freshwater resources, which account for only 3 percent of the world’s supply of water.

the Science film festival is organized by the goethe-institut Jakarta in collaboration with the german embassy in indonesia, garuda indonesia, Santika indonesia hotels & Resorts, hiLo School, allianz, Siemens, institut francais indonesia, universitas Paramadina and the german-indonesian chamber of industry and commerce (eKoniD). it’s a regional program which developed since its initial launch in thailand in 2005. this year Sff will be held in numerous aSean countries: indonesia, cambodia, Laos, malaysia, myanmar, Philippines, thailand and Vietnam, from october 15 to December 15, 2012. in its first year, in 2010, an estimated 12,000 viewers were attracted to the festival. this year about 30,000 viewers are expected to enjoy high quality documentary movies related to the theme Water. the aim of the festival is to bring often alienating subject of science closer to young learners in an entertaining, easy to understand manner using the medium of film. “these kinds of events are a refreshing change to classroom learning, which is an important element of learning too in order to broaden student’s horizons,” mr. zanul marif ma, a religion teacher of madrasah tsanawah negeri (mtSn) 31 shared, while guiding his 10 or so students into the movie theater.

boediono who attended the screenning of three short documentaries spoke to a movie theater filled with hundreds of school-aged children from the greater Jakarta area. “Water is essential for life, therefore it’s important to save our natural resources. Water, one of the most precious, becomes more scarce with the passing of time. therefore, i urge you to use it sparingly. your water at home should be used wisely to support life. Lastly, i wish all of you

will study hard to become complete citizens that care about your surroundings and that each of you attending today are going to be better future leaders.”

according to the united nations, each year more than 1 billion of our fellow human beings have little choice but to resort to using potentially harmful sources of water and up to 1.8 billion people may be living with absolute water scarcity by 2025, with two-thirds of the world population potentially subject to water stress. following the press conference of the festival, indonesian Water institute chairman Dr. firdaus ali, m.Sc. revealed that “there are thirteen rivers in Jakarta and yet not a single one can provide us with clean water. the contamination is to such a degree that Jakarta has been labeled as one of the worst cities in the world. i hope the new governor, ir. Joko Widodo, will work together with our institute for the sake of the next generation.”

also making a presence at the press coference was indonesian musician nugie, who serves as a honorary member of the World Wildlife fund (WWf) indonesia. nugie also contributed artistically to the festival. “i was so inspired by the location while on a WWf project to Wakatobi, Southeast Sulawesi, that i created the score for the short film a Ssong for tukik, one of the movies screened in the festival. i hope we can all work together to change our paradigm about water usage, to be more frugal about it for the sake of our children and grandchildren.” he said.

even though indonesia’s water resouce contain almost six percent of the world’s water resources or about 21 percent of the total water resources in the asia Pacific Region, clean water is becoming a serious problem in indonesia. Water consumption is increasing significantly; in 2000 the water demand was approximately 156,000 millions cubic meters per annum, while


the figure predicted for 2015 is 356,575 million cubic meters per annum.

it is mind-boggling to realize the notion that water, being one of the most important natural resources on earth will present one of the most pressing ecological and social challenges of the 21st century. Despite its abundant presence on our planet, only about 3 percent of the world’s water supply provide us with a fresh water supply. therefore, educating our children on the frugal use of this precious resource is the first step in saving the world’s water. the Science film festival is leading the way.

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are three ecosystems in this national park including

waters, swamp, and land. Known for its rich biodiversity ujung Kulon has been centre for many studies for scientists from Dutch and britain many centuries ago. approximately 700 species of floras can be found here, in which 57 among them were classified rare. however, one of the most fascinating creatures in the world, Java rhinoceros live in this national park and is deemed critically endangered. today, less than 40 individuals of this species exist.


WWf refers Java rhinoceros as the rarest mammal on the planet. a Java rhinoceros has not been exhibited in a zoo in a century. in the 19th century, at least four rhinos were exhibited in adelaide, calcutta and London. the Java rhinoceros never fared well in captivity. the oldest lived to be 20, about half the age the rhinos can reach in the wild. the last captive Japan rhino died at the adelaide zoo in australia in 1907.

Ujung Kulon

The Ujung Kulon National Park is situated at the westernmost part of Java Island off the open waters of Indian Ocean and Sunda Strait. Included in the 1,206 sq km area is the Krakatau volcanoes, Peucang Island and Handeuleum Island. All of these islands offering breathtaking underwater views.

HOW TO GET THERE

ujung Kulon is approximately 3 hours driving from Jakarta via highway to Labuan. from there you will need to hop on a chartered speedboat to one of these following entrance point; Peucang island; and handeuleum island which takes about 5 hours. if you opt a car, you can start from taman Jaya where the excursion into the park usually starts. get around in the Park is mostly done with a help of a Ranger or tour guide. the local Ranger and tour guide know where to camp and where to find water. you can walk along the coastline with a breathtaking view and attractions, starting from taman Jaya village to tanjung Layar in 2 or 3 days. guide and Ranger is a must.

WHAT TO DO

• Canoeing. canoeing at cigenter River where usually one horn Jave Rhino seen is an interesting experience. the rhino is easier to see on dry season from april to october. you can see also some snakes hanging on the tree and swamp crocodile. you will be guided by the ranger on your canoeing journey. it takes around 45 to 1 hour exploring the river by canoe.

• Snorkeling and Diving.

• Jungle Trekking. if you want to have jungle trekking, it is better to arrange it from taman Jaya. the jungle trekking will start from taman Jaya and end up at Peucang island (crossing by boat from mainland to Peucang island. the price includes the guide and food.)

• the Park is also home to 35 species of mammals including Silvery gibbon, Javan Lutung, crab-eating macaque, Leopard, and Java mouse-Deer. there are also 72 species of reptiles and amphibians and 240 species of birds.

• Reports confirm the sights of false gharial. Small, isolated population of saltwater crocodile was also

reported but further confirmation is needed.

• Parts of today’s national park and World heritage site have been protected since the early 20th century. in 2005 the park was designated as an aSean heritage Park.

• aside from humans, adults Java rhinoceros have no predators in their range. they usually avoid humans, but will attack when it feels threatened.

• an eruption of nearby anak Krakatau Volcano could easily wipe out all life on the peninsula that the rhinos call home.

FACTS

THERE

C U L T U R ED E S T I N A T I O N I N D O N E S I A

@ googLe

C U L T U R ED E S T I N A T I O N E U R O P E


for its fine food and cafe culture, people have been attracted to brussels due to its casual atmosphere

and impressive architecture. the capital of belgium, however, also attracts tourists for an annual event that celebrates the christmas spirit like few other places: brussels’ Winter Wonders festival. Launched in 2004, the festival offers plenty to do for families and adventurous visitors. other highlights of Winter Wonders include the electrabel nights display at grand Place and a special installation at the galeries Royales Saint-hubert. based in several locations, most notably the festive route between Place Saint-Jean and marche aux Poissons, Winter Wonders festival will entertain you with magical sounds and lights display through puppet shows, an illuminated big wheel.

WHAT TO DO?

adventurous travelers can head out on the ice skating rink and sledding track, while those hoping to do some gift shopping during their break can head to the market on Place Sainte catherine, which features some 240 chalets. you can also visit the city’s top chocolate shops to discovering why the city is famous for its delicious chocolate and take part in a workshop with a master chocolatier. once referred to as the cultural capital of europe, historical sites like cathedrals make up brussels’ amazing architecture, among these the grand-Place, museums such as the 17th century brewery museum and many others places of interest.

WHEN TO GO?

Winter Wonders festival is held on november 27th this year through January 2013. however, if you’re planning a trip to belgium’s capital not during the winter season, may and September may be the most pleasant times to go.

HOW TO GET THERE?

intercity trains among them the thalys and eurostar take you into belgium’s capital from major european cities such as cologne, Paris, amsterdam, and London within under 2 hours. Preferably chose one that connects to central-centraal, which is the station nearest to the city center. if you’d rather catch a glimpse of belgium from a bird’s eye view, several major carriers operate out of brussels’ main airport known locally as brussels national or zaventem. flight time to frankfurt is 1 hour, to London’s heathrow 24 minutes, and to Paris less than 20 minutes. a taxi to the city center will set you back euro 35.

WHAT TO WEAR?

During the damp weather brussels is known to make it feel colder than it is, so wearing some leggings or tights and an extra layer is advisable. in the winter months brussels has avarage temperatures of 7-2 degrees celcius. though there is rarely snowfall, be prepared for wet grounds. So bring along a comfortable pair of winter boots.

now you can visit brussels from indonesia with more alternatives flights through three gateways:

• fly daily via Singapore with mid-night flight at 23.55 and arrive in brussels at 10.10 in the morning the next day.

• fly daily via bangkok with mid-night flight at 23.50 and arrive in brussels at 09.25 in the morning the next day.

• fly via hong Kong with daily mid-night flights at 23.25 and arrive in brussels at 07.40 in the morning the next day.

Winter Wonders Festival

BrusselsFAMOUS

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C U L T U R EC H R I S T M A S

It’s that time of the year again when the shopping malls are beautifully decorated with Christmas trees and newspapers are filled with Christmas sale ads. Families in Germany are planning their year-end holidays and children are getting all excited about their Christmas wish list. Regardless of whether or not you’ll be putting up a tree this December, you may find it interesting to learn where the Christmas tree tradition originated and whether a plastic or real pine makes for a greener festive season.

IN GERMANY


@ LoSttRaVeLtouRS.WoRDPReSS.com

people in germany christmas is the most important

celebration of the year; a festive time in which the whole family comes together. the custom of the christmas tree itself became common in the towns of the upper Rhineland, germany by the early 18th century, with the most common types of trees used either a type of fir or pine. the ever-green properties of these trees are a symbol for life and hope.

if my grandmother would have the courage to enter any of the malls we have in town this December, she’d probably comment: “i’d never get one of those fake things, i want the real thing.” that’s the conservative view. of course, times have changed and we have plenty to do besides admiring the authenticity of our christmas tree. We don’t have time to water it daily, to make sure it doesn’t die before christmas eve. another drawback to having a real tree is that it needs to be disposed come season end, which will require time, unless of course you plant it somewhere in your garden and reuse it again next year.

Stefan, a resident of Kiel, germany said “i’ve actually never seen a plastic christmas tree in any of our friends homes. my family also always gets a real one and we keep it usually until January 2nd, before the city administration picks it up to be recycled.

on the other hand, plastic trees come with several advantages. they can be taken apart and stored in our garage for the next christmas season, thus saving a tree from being cut ever year.

“it’s a family tradition for us to get together over at our parent’s house and we always decorate our plastic tree. of course, it’s convenient because we can store it for the following year,” says christine, a german living in Jakarta.

in addition, plastic christmas trees can be bought at the nearest shopping

center and best of all they don’t need any watering. you can even chose from a wide range of colors and lighting options to suit your decorative needs.

“We once had a white one and also a green one,” christine adds. the question is only how long you intend to keep your plastic trees without getting bored. also, it all depends on how concerned you are about the christmas tree environmental factor. findings by an independent study by a consulting group in montreal, revealed that you would have to use your artificial tree for twenty years in order for it to be a greener choice than buying a real one every year.

The Advent periodthe Pre-christmas period refers to the weeks before christmas Day, and begins with the 1st advent, the first Sunday of December. an advent Wreath, made of pine tree branches, christmas ornaments and four candles, are used to decorate tables at home.

on every Sunday during advent one candle is lit. children get an advent calendar that has 24 doors or tiny pouches. then counting down the days until christmas Day, the children are allowed to open one door or pouch. During advent children also write their christmas wish-list.

on the four Sundays of advent people often get together and have warm beverages (e.g. punch, tea, chocolate milk) as drinks, and cookies, gingerbread and Stollen for snacks. it is also a time to share christmas

stories with children. the tradition has been around since the start of the 20th century.

Christkindlmarktthe christmas market also known as christkindlmarkt begins with the advent period and lasts until midday on the 24th of December. Stands are decorated with pine twigs and lights, while standing tall in the middle is a christmas tree decorated with candles. under the tree one can usually find the manger with the holy family, while in christmas music can be heard in the background. the nürnberger christkindlesmarkt is the most famous market. as a culinary serving, a redish, thick sausage or two thinner bratwursts are usually laid inside a bun. the accompanying beverage is often a cup of glühwein (heated red-wine with spices) or a punch. for dessert people usually enjoy something sweet such as magenbrot, gingebread, warm chestnuts or roasted almonds.

this christkindlmarkt is not only happening in germany, but thanks to its unique tradition this traditional christmas can also be found as far as in canada and the united States. in chicago, uSa, a traditional german american holiday market brings the cherished german tradition with international flair and local charm to chicago. the largest outdoor christmas festival was first held in 1996 and was initiated by the ahK chicago. the festivity has grown to become one of the most popular winter attractions in the heart of the city.

C U L T U R EC H R I S T M A S


FOR

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The Board of Directors, Management and staff of EKONID wish you a Merry Christmas and Happy New Year

Merry Christmas 2012&

Happy New Year 2013

Perkumpulan Ekonomi Indonesia - JermanJl. H. Agus Salim No. 115, Jakarta 10310P.O. Box 3151, Jakarta 10031 - Indonesia

Tel. +62-21 315 4685, Fax. +62-21 315 5276Email: [email protected]

www.ekonid.com

Happy New Year 2013Happy New Year 2013The Board of Directors, Management and staff of EKONID

Happy New Year 2013

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