Sunday, September 02, 2007
The Jakarta Post, Jakarta
Hundreds of vintage car fans kicked off a weeklong rally Saturday along the historic 1,000 kilometer road connecting the westernmost and the easternmost parts of Java island.
The rally is to remember the building of the road in 1808. During the construction of the road, it is claimed that at least 30,000 people died of starvation and overwork.
The rally, which runs from Sept. 1 to 8, and is being participated in by 85 vintage cars and more than 250 passengers, will travel along the 2,500 kilometers from Anyer in Banten to Panarukan in East Java.
The 1,000 kilometer road from Anyer to Panarukan, known as "Jalan Raya Pos" (De Groote Postweg), or the Great Post Road, was constructed at the command of Netherlands Indies Governor General Willem Herman Daendles in 1808.
The construction of the road finished in 1810.
"Many people died during the building of the road. They are the heroes who laid the foundations for our development," said the chairman of the Indonesian Vintage Car Association (PPMKI), Bambang Rus Effendi, at the kickoff ceremony at the State Ministry for Youth and Sports Affairs.
"We hope this rally will help us appreciate what our forefathers did for the people of today."
Participating in the rally were cars produced in the 1920s, such as a 1928 Ford A, a 1927 Chevy Truck, a Chevrolet Bel Ai, and a Fiat from the 1950s.
Two cars that belonged to first president Sukarno -- a 1947 Chrysler Windsor and a 1963 Imperial -- also took part in the event. The cars respectively belong to Hartawan Setjodinigrat and Budiono Widodo.
Hartawan, chairman of the rally's organizing committee, said the rally was the 27th to be held since the Indonesian Vintage Car Association had been established in 1979.
The committee had laid on everything regarding accommodation, car service and participants' healthcare.
"We have prepared everything, but have focused mostly on engines as these cars are old," said Hartawan.
Along the rally route, the participants will visit many heritage sites -- legacies of the Netherlands Indies -- including a lighthouse in Anyer that was designated by Daendels as the starting point for the road's construction in 1808.
One of the PPMKI's founders, Solihin GP, who is a former West Java governor said that "We want to teach the nation that we can be proud of old objects. We can travel everywhere around the country so as to enjoy our rich nature and culture."
"We also want to teach the young generation to take risks to achieve their goals so they do not misuse the independence that we have gained with blood," said Solihin, who is also a retired Army general. (02)
Monday, September 03, 2007
Australia outshines India in opener
Saturday, September 01, 2007
The Jakarta Post, Jakarta
Australia started its campaign in the opener of the Asian Volleyball Championship here by thrashing India 3-1 at Bung Karno Indoor Tennis Stadium in Senayan, Central Jakarta, on Friday.
The 1999 and 2001 silver medalists were stunned by the Indian team, which stole some points to win the first set 25-22.
Led by captain Benjamin Hardy, Australia managed to bounce back to dominate the rest of the game.
"In a couple of sets, we were left behind," Australia's coach Russell Borgeaud said after the match.
"Some of our guys were a little bit nervous ... it was an important match.
"So India kept attacking us."
"But the players survived the attacks to lift their intensity and their level of play to win the next sets."
He said his team needed to improve their performance if they wanted to win the tournament.
"We are inconsistent ... we still have some work to do ... but this is a good start," he said.
India coach G.E. Sridharan said his team played well in the first set but Australia's players managed to penetrate their defense in the following sets.
Sridharan said his team had to play all out in the next game against 1993 finalists Kazakhstan on Saturday to realize their hopes of making the top eight.
"It is not impossible ... we have met them once previously and we won," Sridharan said.
In other opening matches, Taiwan tasted victory by trouncing Qatar 3-1, while 2003 bronze medalists Iran defeated Vietnam 3-1. Later in the day, Kazakhstan outclassed Kuwait 3-0.
On Saturday, Australia is set to meet Kuwait, Kazakhstan would take on India and Iran would face Pakistan.(02)
The Jakarta Post, Jakarta
Australia started its campaign in the opener of the Asian Volleyball Championship here by thrashing India 3-1 at Bung Karno Indoor Tennis Stadium in Senayan, Central Jakarta, on Friday.
The 1999 and 2001 silver medalists were stunned by the Indian team, which stole some points to win the first set 25-22.
Led by captain Benjamin Hardy, Australia managed to bounce back to dominate the rest of the game.
"In a couple of sets, we were left behind," Australia's coach Russell Borgeaud said after the match.
"Some of our guys were a little bit nervous ... it was an important match.
"So India kept attacking us."
"But the players survived the attacks to lift their intensity and their level of play to win the next sets."
He said his team needed to improve their performance if they wanted to win the tournament.
"We are inconsistent ... we still have some work to do ... but this is a good start," he said.
India coach G.E. Sridharan said his team played well in the first set but Australia's players managed to penetrate their defense in the following sets.
Sridharan said his team had to play all out in the next game against 1993 finalists Kazakhstan on Saturday to realize their hopes of making the top eight.
"It is not impossible ... we have met them once previously and we won," Sridharan said.
In other opening matches, Taiwan tasted victory by trouncing Qatar 3-1, while 2003 bronze medalists Iran defeated Vietnam 3-1. Later in the day, Kazakhstan outclassed Kuwait 3-0.
On Saturday, Australia is set to meet Kuwait, Kazakhstan would take on India and Iran would face Pakistan.(02)
RI shuttlers skip India, ready for Japan, Taipei
Friday, August 31, 2007
The Jakarta Post, Jakarta
Indonesia's shuttlers have decided to skip the India Super Series and prepare themselves for their next assignments in Japan and Taiwan, following last week's bomb blasts in the southern Indian city of Hyderabad, the site of the competition.
The head of the training division of the Indonesian Badminton Association (PBSI), Lius Pongoh, said the association had sent a letter to the Badminton Association of India to notify them that the Indonesian squad would not fly to the country for safety reasons.
"We decided to cancel our participation in the tournament due to security concerns. The bomb blasts were very close to the badminton venue," Lius said Thursday.
Last week's double explosions killed at least 42 people and injured 50 in Hyderabad, where the tournament was planned to be held from Sept. 4-9.
Lius added that the chairman of the Indian Badminton Association, VK Verma, had also informed Indonesia of delays to the event, but said no definite revised date had been set.
However, Lius said he was unconvinced the Indian association would end up setting a different date to the one originally planned, since it would place the tournament only days away from the Japan Super Series from Sep. 11-16 and the Chinese Taipei Grand Prix from Sep. 18-23. (02)
The Jakarta Post, Jakarta
Indonesia's shuttlers have decided to skip the India Super Series and prepare themselves for their next assignments in Japan and Taiwan, following last week's bomb blasts in the southern Indian city of Hyderabad, the site of the competition.
The head of the training division of the Indonesian Badminton Association (PBSI), Lius Pongoh, said the association had sent a letter to the Badminton Association of India to notify them that the Indonesian squad would not fly to the country for safety reasons.
"We decided to cancel our participation in the tournament due to security concerns. The bomb blasts were very close to the badminton venue," Lius said Thursday.
Last week's double explosions killed at least 42 people and injured 50 in Hyderabad, where the tournament was planned to be held from Sept. 4-9.
Lius added that the chairman of the Indian Badminton Association, VK Verma, had also informed Indonesia of delays to the event, but said no definite revised date had been set.
However, Lius said he was unconvinced the Indian association would end up setting a different date to the one originally planned, since it would place the tournament only days away from the Japan Super Series from Sep. 11-16 and the Chinese Taipei Grand Prix from Sep. 18-23. (02)
Asian Volleyball c'ship to test region's best
Wednesday, August 29, 2007
The Jakarta Post, Jakarta
The Asian Men's Volleyball Championship will be give Asian teams a chance to turn around their disappointing performances since the 2004 Olympics, the chairwoman of Indonesia's Sport Council (KONI) Rita Subowo says.
"The achievement of Asian countries in volleyball has been on the decline since the 2004 Olympic Games in Athens. The men's teams could hardly get through the Olympic qualifications, while a women's team took the world championship," said Rita, who is a newly elected member of the International Olympic Committee (IOC), during a press conference Tuesday.
Rita said the IOC had decided to establish a taskforce to help improve the performance of Asian volleyball teams ahead of the 2008 Olympic Games in Beijing, China.
The Championship, which will be held in Jakarta from Aug. 31 through Sep. 8, will be the first top-level international volleyball event held in Indonesia.
"In 1989, Indonesia also hosted an international championship but it was only a junior championship," Rita said.
She added that the Indonesian team should use their participation in the championship to gain the playing experience needed to improve their performance.
National team manager I Nyoman Sukesna said he was optimistic the Indonesian team would put up a strong fight at the championship, having prepared since February of this year. He said the team had taken part in national and international events, including the national Proliga championship and the Asian Men's Club Championship in Bahrain.
"We took position six from the 18 teams participating in the men's championship in Bahrain, so I believe that the team is getting more confident about its performance. Our target is a spot in the top six so we can be included in Olympic qualifications," Sukesna said. (02)
The Jakarta Post, Jakarta
The Asian Men's Volleyball Championship will be give Asian teams a chance to turn around their disappointing performances since the 2004 Olympics, the chairwoman of Indonesia's Sport Council (KONI) Rita Subowo says.
"The achievement of Asian countries in volleyball has been on the decline since the 2004 Olympic Games in Athens. The men's teams could hardly get through the Olympic qualifications, while a women's team took the world championship," said Rita, who is a newly elected member of the International Olympic Committee (IOC), during a press conference Tuesday.
Rita said the IOC had decided to establish a taskforce to help improve the performance of Asian volleyball teams ahead of the 2008 Olympic Games in Beijing, China.
The Championship, which will be held in Jakarta from Aug. 31 through Sep. 8, will be the first top-level international volleyball event held in Indonesia.
"In 1989, Indonesia also hosted an international championship but it was only a junior championship," Rita said.
She added that the Indonesian team should use their participation in the championship to gain the playing experience needed to improve their performance.
National team manager I Nyoman Sukesna said he was optimistic the Indonesian team would put up a strong fight at the championship, having prepared since February of this year. He said the team had taken part in national and international events, including the national Proliga championship and the Asian Men's Club Championship in Bahrain.
"We took position six from the 18 teams participating in the men's championship in Bahrain, so I believe that the team is getting more confident about its performance. Our target is a spot in the top six so we can be included in Olympic qualifications," Sukesna said. (02)
Indonesia aims high at Asian men's volleyball tourney
Tuesday, August 28, 2007
The Jakarta Post, Jakarta
With most players' heights well under the average of those competing in the upcoming 14th Asian Senior Men's Volleyball Championship, Indonesia's team will resort to a variety of offensive schemes to balance its opponents' advantage, said the team's assistant coach.
"We are preparing the team to play quick, multiple offensives. The players should receive the ball carefully so others will be able to build sharper assaults," assistant coach Machfud Irsyada told The Jakarta Post on Monday.
Machfud is optimistic the team will be able to maintain their stamina.
The championship, which will use a rally point system, will be held from Aug. 31 to Sept. 9 at the Indoor Tennis Stadium at the Senayan Sports Complex in Central Jakarta.
Teams from 17 Asian countries and Australia will take part in the competition.
The Indonesian host team, together with three other defending champions -- Japan, China and South Korea-- will play in the main draw comprising eight teams. Indonesia will join group A along with the Maldives, Qatar and Taiwan.
Indonesia's players are among those with lowest average height in the competition. Only three countries have an average height below that of Indonesia - Vietnam, Sri Lanka and the Maldives.
Australia and Kazakhstan are the countries with the tallest players. Each has nine players with a minimum height of 200 cm. Kazakhstan has two of the tallest players in the competition -Svyatoslav Miklashevich and Anton Yudin, at 210 cm each.
Meanwhile, the women's team will participate in Thailand from Sept. 5 to 13.
The women's assistant coach, Victor Laiyan, said there was no special target for the women's team other than to gain more game-time experience in preparation for the 2011 SEA Games in Indonesia.
Victor said the women's junior team, consisting of eight members, had been sent to Cuba for training in preparation for future competitions. (02)
The Jakarta Post, Jakarta
With most players' heights well under the average of those competing in the upcoming 14th Asian Senior Men's Volleyball Championship, Indonesia's team will resort to a variety of offensive schemes to balance its opponents' advantage, said the team's assistant coach.
"We are preparing the team to play quick, multiple offensives. The players should receive the ball carefully so others will be able to build sharper assaults," assistant coach Machfud Irsyada told The Jakarta Post on Monday.
Machfud is optimistic the team will be able to maintain their stamina.
The championship, which will use a rally point system, will be held from Aug. 31 to Sept. 9 at the Indoor Tennis Stadium at the Senayan Sports Complex in Central Jakarta.
Teams from 17 Asian countries and Australia will take part in the competition.
The Indonesian host team, together with three other defending champions -- Japan, China and South Korea-- will play in the main draw comprising eight teams. Indonesia will join group A along with the Maldives, Qatar and Taiwan.
Indonesia's players are among those with lowest average height in the competition. Only three countries have an average height below that of Indonesia - Vietnam, Sri Lanka and the Maldives.
Australia and Kazakhstan are the countries with the tallest players. Each has nine players with a minimum height of 200 cm. Kazakhstan has two of the tallest players in the competition -Svyatoslav Miklashevich and Anton Yudin, at 210 cm each.
Meanwhile, the women's team will participate in Thailand from Sept. 5 to 13.
The women's assistant coach, Victor Laiyan, said there was no special target for the women's team other than to gain more game-time experience in preparation for the 2011 SEA Games in Indonesia.
Victor said the women's junior team, consisting of eight members, had been sent to Cuba for training in preparation for future competitions. (02)
Thursday, August 30, 2007
Change The World For A Fiver
Three years ago I bought a book called ‘Change The World For A Fiver’. I like the idea inside it. It's a must-have!
The book contains 50 small actions to change the world and 'make you feel good’, and is printed on ‘chlorine-free paper from trees grown in sustainable forests’. We Are What We Do is the Community Links project behind this straightforward but brilliant book (see website bellow).
The actions contained within it are diverse, ranging from Action 46 ‘Use both sides of every piece of paper’ to Action 19 ‘Learn one good joke’. Some of them would appeal to thrifty people, ‘Turn your thermostat down by 1ยบ’ (Action 10), and some actions are very simple ‘Smile, and smile back’ (Action 5).
My favourite action is ‘Reverse Haggling’ (Action 27), where the book advises you to ‘confuse the wonderful people who work in charity shops – pay them more than they bargained for’.I did it several times in England and they thought I'm a stupid Asian.
I have tried and tested some of the ideas in this book, particularly declining plastic bags in shops, watching less TV, and turn off the tap water while brushing my teeth. It is simple but bring a great effect to our world, isn't it?
Hopefully this book will inspire more of us to ‘Give blood’ (Action 26) and to ‘Do something you think you can’t do’ (Action 32), even if being ‘the change you want to see in the world’ (Action 28, thanks to Gandhi) seems a bit daunting.
www.community-links.org
Monday, August 27, 2007
Honda launches new models to regain loss in market share
Saturday, August 25, 2007
The Jakarta Post, Jakarta
Motorcycle producer PT Astra Honda Motor (AHM) will launch three new models with more stylish and sporty features this year to regain its market leadership, which has dropped significantly since January amid growing competition from its main competitor, Yamaha.
AHM, which has been the motorcycle market leader in Indonesia for many years, launched one of the new models Friday, promising more affordability and reliability to Indonesian motorcycle fans.
The Honda Fit X bebek model, which has a 100cc four-stroke engine and a price tag of Rp 10.5 million (about US$1,129) off the road, is now available in Jakarta.
Dubbed "economical, reliable and functional", the Honda Fit X and two upcoming products -- a sporty motorcycle and an automatic scooter -- are expected to increase the company's sales by 20 percent this year, AHM marketing director Johannes Loman said at the launching ceremony.
He said the company hoped to sell between 2.2 million and 2.4 million motorcycles this year. "We are still looking to be number one in Indonesia," said Johannes.
With the expected increase in sales, AHM is currently increasing its production capacity so as to be able to produce about 200,000 motorcycles a month beginning September, he said.
AHM, which has led the country's motorcycle market for many years with a market share of about 55 percent, has seen its market share decline since January this year amid an aggressive marketing campaign by its main rival, Yamaha.
Honda's monthly market share fell to between 42 and 45 percent in the first semester of this year from an average of more than 53 percent last year.
By contrast, Yamaha's monthly sales continued to increase in the first six months of this year. In July, its sales amounted to 161,016 motorcycles, far higher than the 131,615 motorcycles it sold in the same month last year. Meanwhile, Honda's monthly sales fell to 143,223 in July from 186,047 in the same month last year.
In the first semester of this year, national motorcycle sales amounted to 2.11 million, with AHM controlling 43 percent of the market, Yamaha 41 percent and Suzuki and other producers the remaining 16 percent. Last year total motorcycle sales amounted to 4.42 million units.
Japanese motorcycles still dominate Indonesia's motorcycle market. Chinese-made motorcycles have tried to make inroads into the market over the last five years, but with little success.
However, the entry of TVS Motor, the leading two-wheel manufacturer in India, will make the competition even tighter,
The company's Indonesian unit TVS Motor Company Indonesia has recently launched its Neo and Apache motorcycle brands in the country.
TVS Motor chairman Venu Srinivasan said recently that he was upbeat the company's Indonesian unit would be able sell up to 100,000 units in its first year of operations, despite the strong competition from more established manufacturers in the country.
In order to meet this sales target, the company specially designed its two new small-engine capacity models to satisfy the unique characteristics of Indonesian buyers, he said.
The motorcycles will be sold at prices ranging from Rp 9 million to Rp 11.8 million, off the road (excluding tax). As an initial step, the motorcycles will be available in Jakarta and West Java. (02)
The Jakarta Post, Jakarta
Motorcycle producer PT Astra Honda Motor (AHM) will launch three new models with more stylish and sporty features this year to regain its market leadership, which has dropped significantly since January amid growing competition from its main competitor, Yamaha.
AHM, which has been the motorcycle market leader in Indonesia for many years, launched one of the new models Friday, promising more affordability and reliability to Indonesian motorcycle fans.
The Honda Fit X bebek model, which has a 100cc four-stroke engine and a price tag of Rp 10.5 million (about US$1,129) off the road, is now available in Jakarta.
Dubbed "economical, reliable and functional", the Honda Fit X and two upcoming products -- a sporty motorcycle and an automatic scooter -- are expected to increase the company's sales by 20 percent this year, AHM marketing director Johannes Loman said at the launching ceremony.
He said the company hoped to sell between 2.2 million and 2.4 million motorcycles this year. "We are still looking to be number one in Indonesia," said Johannes.
With the expected increase in sales, AHM is currently increasing its production capacity so as to be able to produce about 200,000 motorcycles a month beginning September, he said.
AHM, which has led the country's motorcycle market for many years with a market share of about 55 percent, has seen its market share decline since January this year amid an aggressive marketing campaign by its main rival, Yamaha.
Honda's monthly market share fell to between 42 and 45 percent in the first semester of this year from an average of more than 53 percent last year.
By contrast, Yamaha's monthly sales continued to increase in the first six months of this year. In July, its sales amounted to 161,016 motorcycles, far higher than the 131,615 motorcycles it sold in the same month last year. Meanwhile, Honda's monthly sales fell to 143,223 in July from 186,047 in the same month last year.
In the first semester of this year, national motorcycle sales amounted to 2.11 million, with AHM controlling 43 percent of the market, Yamaha 41 percent and Suzuki and other producers the remaining 16 percent. Last year total motorcycle sales amounted to 4.42 million units.
Japanese motorcycles still dominate Indonesia's motorcycle market. Chinese-made motorcycles have tried to make inroads into the market over the last five years, but with little success.
However, the entry of TVS Motor, the leading two-wheel manufacturer in India, will make the competition even tighter,
The company's Indonesian unit TVS Motor Company Indonesia has recently launched its Neo and Apache motorcycle brands in the country.
TVS Motor chairman Venu Srinivasan said recently that he was upbeat the company's Indonesian unit would be able sell up to 100,000 units in its first year of operations, despite the strong competition from more established manufacturers in the country.
In order to meet this sales target, the company specially designed its two new small-engine capacity models to satisfy the unique characteristics of Indonesian buyers, he said.
The motorcycles will be sold at prices ranging from Rp 9 million to Rp 11.8 million, off the road (excluding tax). As an initial step, the motorcycles will be available in Jakarta and West Java. (02)
Industry minister backs Kadin's initiative in logging dispute
Saturday, August 25, 2007
The Jakarta Post, Jakarta
Industry Minister Fahmi Idris has lent his support to the initiative by the Indonesian Chamber of Commerce and Industry (Kadin) to ask President Susilo Bambang Yudhoyono to resolve an embarrassing dispute over logging between the National Police and the Forestry Ministry.
Speaking Thursday during a press conference at the Industry Ministry, Fahmi said that all of the stakeholders in the pulp and paper industry would meet soon to resolve the dispute in order to provide a healthy business climate for the industry without undermining the legal process.
"The government and Kadin share the same concern about the pulp and paper industry. Therefore, we will invite all stakeholders to look for a solution in the next few weeks," said Fahmi.
As part of the fight against illegal logging, the National Police have been conducting a series of operations, labeled overeager by the industry, that have resulted in the halting of the operations of many pulp and paper firms and their suppliers in Riau province. As a result, the country's two biggest pulp and paper companies, PT Indah Kiat Pulp & Paper and PT Riau Andalan Pulp & Paper, are faced with a serious shortage of raw materials.
Fahmi said that while the ministry supported the implementation of Presidential Decree No. 4/2005 on the eradication of illegal logging, he was concerned about the investment climate in the forestry industry, which is one of the five industries that contribute the most to the country's exports.
"The implementation of the decree has disrupted the pulp and paper industry, and has led to a decrease in production volume. Therefore, we are impartially trying to find a solution. While we support the war against illegal logging, we also need to protect industries that provide our exports," said Fahmi.
The value of pulp and paper exports in 2006 amounted to about US$3.5 billion out of $8 billion for the entire forestry sector.
The pulp and paper industry employs some 249,000 people in 14 pulp and paper factories in Riau, South Sulawesi, North Sumatra, Jambi, East Kalimantan and Aceh.
Kadin chairman MS Hidayat, who accompanied the minister at the conference, said that the dispute between the National Police and the Forestry Ministry, which has been going on for eight months, could cost the two companies as much as US$2 billion due to the decline in production.
He said that Kadin supported law enforcement, but also pointed to confusion between illegal logging and legal logging.
"Some companies that have legal permission from the state for logging have become the target of arbitrary police actions. Police cordon off their equipment, concessions and processing facilities without sufficient evidence," argued Hidayat.
He warned that if the dispute continued, the two companies would be out of raw materials by October, and might have to resort to massive layoffs.
He added that the dispute showed there was still no legal certainty in Indonesia -- something that had serious implications for the investment climate. (02)
The Jakarta Post, Jakarta
Industry Minister Fahmi Idris has lent his support to the initiative by the Indonesian Chamber of Commerce and Industry (Kadin) to ask President Susilo Bambang Yudhoyono to resolve an embarrassing dispute over logging between the National Police and the Forestry Ministry.
Speaking Thursday during a press conference at the Industry Ministry, Fahmi said that all of the stakeholders in the pulp and paper industry would meet soon to resolve the dispute in order to provide a healthy business climate for the industry without undermining the legal process.
"The government and Kadin share the same concern about the pulp and paper industry. Therefore, we will invite all stakeholders to look for a solution in the next few weeks," said Fahmi.
As part of the fight against illegal logging, the National Police have been conducting a series of operations, labeled overeager by the industry, that have resulted in the halting of the operations of many pulp and paper firms and their suppliers in Riau province. As a result, the country's two biggest pulp and paper companies, PT Indah Kiat Pulp & Paper and PT Riau Andalan Pulp & Paper, are faced with a serious shortage of raw materials.
Fahmi said that while the ministry supported the implementation of Presidential Decree No. 4/2005 on the eradication of illegal logging, he was concerned about the investment climate in the forestry industry, which is one of the five industries that contribute the most to the country's exports.
"The implementation of the decree has disrupted the pulp and paper industry, and has led to a decrease in production volume. Therefore, we are impartially trying to find a solution. While we support the war against illegal logging, we also need to protect industries that provide our exports," said Fahmi.
The value of pulp and paper exports in 2006 amounted to about US$3.5 billion out of $8 billion for the entire forestry sector.
The pulp and paper industry employs some 249,000 people in 14 pulp and paper factories in Riau, South Sulawesi, North Sumatra, Jambi, East Kalimantan and Aceh.
Kadin chairman MS Hidayat, who accompanied the minister at the conference, said that the dispute between the National Police and the Forestry Ministry, which has been going on for eight months, could cost the two companies as much as US$2 billion due to the decline in production.
He said that Kadin supported law enforcement, but also pointed to confusion between illegal logging and legal logging.
"Some companies that have legal permission from the state for logging have become the target of arbitrary police actions. Police cordon off their equipment, concessions and processing facilities without sufficient evidence," argued Hidayat.
He warned that if the dispute continued, the two companies would be out of raw materials by October, and might have to resort to massive layoffs.
He added that the dispute showed there was still no legal certainty in Indonesia -- something that had serious implications for the investment climate. (02)
Indosat boosts capital expenditure to $1.2b
Thursday, August 23, 2007
The Jakarta Post, Jakarta
PT Indosat, the country's second largest mobile phone operator, will increase its capital expenditure this year to US$1.2 billion from $1 billion as initially planned to further expand its networks and improve the quality of its services.
Indosat president director Johnny Swandi Sjam said Wednesday around 15 to 20 percent of the capital expenditure would be used to expand cellular networks, including the building of new base transceiver stations (BTS), while the remaining would be used to improve services.
As of June this year, the company had built 8,366 BTS, or a 33.9 percent increase from the 6,248 BTS in June last year.
Indosat finance director Wong Heang Tuck said about $300 million of the $1.2 billion capital expenditure would come from the company's own fund and the remaining $700 million from bank loans and the issuing of bonds.
"The company still needs around $200 to 300 million from other sources," Wong said.
Sjam said increasing capital expenditure for capacity expansion was needed because the number of Indosat's cellular subscribers had already increased by 44.3 percent to 20 million as of June from 13.9 million in the same month last year, while the number of its fixed wireless subscribers surged by 132.3 percent to 483,400 from 208,100.
He said the first semester showed a good record in consumer growth, so the company changed the new subscriber target number for this year to seven million from six million as initially planned.
The sharp increase in the number of subscribers resulted in a 33.3 percent increase in the company's total revenue to Rp 7.69 trillion (about US$826.8 million) in the first half of 2007 from Rp 5.76 trillion in the same period last year.
"Indosat's success in the first half of 2007 is attributed to the growing demand for cellular, fixed-voice and fixed-data services," Sjam said in a press briefing.
He explained that cellular operating revenues grew by 37.4 percent to Rp 5.89 trillion in the first half of 2007 from Rp 4.30 trillion in the same period last year.
Meanwhile, fixed-data service revenues grew by 9.9 percent to Rp 1.01 trillion in the first half of 2007 from Rp 927.3 billion due to increasing demand of wholesale and corporate consumers to rented internet circuit, internet protocol virtual private network (IPVPN) and internet services.
Fixed-voice service revenue grew by 41.1 percent to Rp 774.4 billion from Rp 548.9 billion in the same period last year and was driven by an increased demand for international calling and fixed wireless services.
The cellular business contributes 77 percent to the company's total revenue, while its fixed-voice and data services contribute around 10 and 13 percent respectively.
Sjam said the company's operational spending increased by 34.8 percent to Rp 5.66 trillion in the first half from Rp 4.19 trillion in the same period in 2006. Therefore, its operational profit increased by 29.4 percent to Rp 2.03 trillion from Rp 1.56 trillion, while its net profit soared by 54 percent to Rp 845.1 billion from Rp 548.8 billion. (02)
The Jakarta Post, Jakarta
PT Indosat, the country's second largest mobile phone operator, will increase its capital expenditure this year to US$1.2 billion from $1 billion as initially planned to further expand its networks and improve the quality of its services.
Indosat president director Johnny Swandi Sjam said Wednesday around 15 to 20 percent of the capital expenditure would be used to expand cellular networks, including the building of new base transceiver stations (BTS), while the remaining would be used to improve services.
As of June this year, the company had built 8,366 BTS, or a 33.9 percent increase from the 6,248 BTS in June last year.
Indosat finance director Wong Heang Tuck said about $300 million of the $1.2 billion capital expenditure would come from the company's own fund and the remaining $700 million from bank loans and the issuing of bonds.
"The company still needs around $200 to 300 million from other sources," Wong said.
Sjam said increasing capital expenditure for capacity expansion was needed because the number of Indosat's cellular subscribers had already increased by 44.3 percent to 20 million as of June from 13.9 million in the same month last year, while the number of its fixed wireless subscribers surged by 132.3 percent to 483,400 from 208,100.
He said the first semester showed a good record in consumer growth, so the company changed the new subscriber target number for this year to seven million from six million as initially planned.
The sharp increase in the number of subscribers resulted in a 33.3 percent increase in the company's total revenue to Rp 7.69 trillion (about US$826.8 million) in the first half of 2007 from Rp 5.76 trillion in the same period last year.
"Indosat's success in the first half of 2007 is attributed to the growing demand for cellular, fixed-voice and fixed-data services," Sjam said in a press briefing.
He explained that cellular operating revenues grew by 37.4 percent to Rp 5.89 trillion in the first half of 2007 from Rp 4.30 trillion in the same period last year.
Meanwhile, fixed-data service revenues grew by 9.9 percent to Rp 1.01 trillion in the first half of 2007 from Rp 927.3 billion due to increasing demand of wholesale and corporate consumers to rented internet circuit, internet protocol virtual private network (IPVPN) and internet services.
Fixed-voice service revenue grew by 41.1 percent to Rp 774.4 billion from Rp 548.9 billion in the same period last year and was driven by an increased demand for international calling and fixed wireless services.
The cellular business contributes 77 percent to the company's total revenue, while its fixed-voice and data services contribute around 10 and 13 percent respectively.
Sjam said the company's operational spending increased by 34.8 percent to Rp 5.66 trillion in the first half from Rp 4.19 trillion in the same period in 2006. Therefore, its operational profit increased by 29.4 percent to Rp 2.03 trillion from Rp 1.56 trillion, while its net profit soared by 54 percent to Rp 845.1 billion from Rp 548.8 billion. (02)
Bank Niaga signs mortgage agreement
Tuesday, August 21, 2007
The Jakarta Post, Jakarta
PT Bank Niaga signed a memorandum of understanding on apartment mortgages Friday with property developer PT Asiana Lintas Ciptakemang, which is currently building apartments in Kemang, South Jakarta.
Under the agreement, buyers of PT Asiana's apartments will be able to get loans from the bank with an interest rate of 9.9 percent a year.
Bank Niaga's head of mortgage banking Laksmi Mustikaningrat said that with the agreement, the apartment buyers would be able to process their loans much faster than under the normal procedure.(02)
The Jakarta Post, Jakarta
PT Bank Niaga signed a memorandum of understanding on apartment mortgages Friday with property developer PT Asiana Lintas Ciptakemang, which is currently building apartments in Kemang, South Jakarta.
Under the agreement, buyers of PT Asiana's apartments will be able to get loans from the bank with an interest rate of 9.9 percent a year.
Bank Niaga's head of mortgage banking Laksmi Mustikaningrat said that with the agreement, the apartment buyers would be able to process their loans much faster than under the normal procedure.(02)
Monday, August 20, 2007
Doulton resumes expansion project
Monday, August 20, 2007
The Jakarta Post, Jakarta
British-based ceramic tile manufacturer PT Doulton Indonesia will go ahead with its US$30 million investment at its ceramic tile factory in Tangerang, Banten, after the government confirmed the project would get a gas supply.
"Thanks to Industry Minister Fahmi Idris for his support in allowing us to resolve the gas supply problem for our factory. We are very happy with the situation and will continue to invest in Indonesia," Narinder Arora, the president director of PT Doulton Indonesia told The Jakarta Post on Thursday.
The Royal Doulton Company through PT Doulton Indonesia, which has so far invested US$75 million in its Indonesian ceramic venture, had planned to increase its investment by US$30 million this year, but the plan was delayed due to a lack of gas.
Beny Wahjudi, the director general of agro-chemistry industries at the Industry Ministry, said that the shortage of gas to the ceramic industry had persisted since last year due to the delay in the building of a gas pipeline from Pagar Dewa in South Sumatra and Grissik in Jambi to Tangerang and Bekasi, both in West Java.
With the increase in the gas supply, PT Doulton Indonesia will be able to double its production capacity from the existing eight million ceramic tiles a year to 16 million.
To feed this capacity, the company will need an additional 85,000 cubic meter of gas per month. To date, the company has needed 630,000 cubic meter of gas per month.
PT Doulton Indonesia has operated its plant in Balaraja, Tangerang, since 1996. About 98 percent of the company's products are exported. In 2006, exports totaled $20.1 million, a slight rise from the $17.7 million recorded the previous year.
In December 2006, the company finished the first stage of its expansion by raising production from 5 million tiles to eight million, at a total investment of $2 million.
The company now plans to increase the number of its workers from 1,350 at present to about 2,000.
Earlier in the day, Narinder accompanied by Achmad Widjaya, chairman of the Indonesian Ceramic Industries Association (Asaki), met Industry Minister Fahmi Idris to thank the minister for his help in overcoming the gas supply shortage that has been badly affecting the industry over the past several months.
Achmad said Asaki members appreciated the efforts made by the minister to increase the gas supply so that some 20 ceramic tile manufacturers in Tangerang and Serang could resume production.
However, he also asked the government to pay special attention to the problem of gas transmission quality. "We are not talking about the supply only, but we are also talking about the pressure of the gas supply," he told the Post.
He said that the gas pressure needed by the ceramic industry was two bar at the minimum. However, since the end of 2005, many ceramic producers in West Java had been receiving a pressure of only gas one bar. The gas supply was also unreliable, he said.
Indonesia is now the world's fifth-biggest ceramic tile producer.(02)
The Jakarta Post, Jakarta
British-based ceramic tile manufacturer PT Doulton Indonesia will go ahead with its US$30 million investment at its ceramic tile factory in Tangerang, Banten, after the government confirmed the project would get a gas supply.
"Thanks to Industry Minister Fahmi Idris for his support in allowing us to resolve the gas supply problem for our factory. We are very happy with the situation and will continue to invest in Indonesia," Narinder Arora, the president director of PT Doulton Indonesia told The Jakarta Post on Thursday.
The Royal Doulton Company through PT Doulton Indonesia, which has so far invested US$75 million in its Indonesian ceramic venture, had planned to increase its investment by US$30 million this year, but the plan was delayed due to a lack of gas.
Beny Wahjudi, the director general of agro-chemistry industries at the Industry Ministry, said that the shortage of gas to the ceramic industry had persisted since last year due to the delay in the building of a gas pipeline from Pagar Dewa in South Sumatra and Grissik in Jambi to Tangerang and Bekasi, both in West Java.
With the increase in the gas supply, PT Doulton Indonesia will be able to double its production capacity from the existing eight million ceramic tiles a year to 16 million.
To feed this capacity, the company will need an additional 85,000 cubic meter of gas per month. To date, the company has needed 630,000 cubic meter of gas per month.
PT Doulton Indonesia has operated its plant in Balaraja, Tangerang, since 1996. About 98 percent of the company's products are exported. In 2006, exports totaled $20.1 million, a slight rise from the $17.7 million recorded the previous year.
In December 2006, the company finished the first stage of its expansion by raising production from 5 million tiles to eight million, at a total investment of $2 million.
The company now plans to increase the number of its workers from 1,350 at present to about 2,000.
Earlier in the day, Narinder accompanied by Achmad Widjaya, chairman of the Indonesian Ceramic Industries Association (Asaki), met Industry Minister Fahmi Idris to thank the minister for his help in overcoming the gas supply shortage that has been badly affecting the industry over the past several months.
Achmad said Asaki members appreciated the efforts made by the minister to increase the gas supply so that some 20 ceramic tile manufacturers in Tangerang and Serang could resume production.
However, he also asked the government to pay special attention to the problem of gas transmission quality. "We are not talking about the supply only, but we are also talking about the pressure of the gas supply," he told the Post.
He said that the gas pressure needed by the ceramic industry was two bar at the minimum. However, since the end of 2005, many ceramic producers in West Java had been receiving a pressure of only gas one bar. The gas supply was also unreliable, he said.
Indonesia is now the world's fifth-biggest ceramic tile producer.(02)
Air cargo industry faces problems
Saturday, August 18, 2007
The Jakarta Post, Jakarta
A lack of regulations and airport facilities has made Indonesia's air cargo industry virtually stagnant during the past several years, as investors are reluctant to enter the business, says an executive.
Chris Kanter, spokesman for the Indonesian Chamber of Commerce and Industry (Kadin), said Wednesday legal uncertainty and poor airport facilities had contributed to slow growth in the industry.
Speaking at a seminar on the modernization of Indonesia's air cargo services, Kanter said it would be difficult under current conditions for local air cargo companies to expand their business, especially to untapped markets in eastern Indonesia.
"Until now, limited regulations have been imposed on air and sea cargo services. We need to formulate a law on cargo service in order to control service standards and quality," Kanter said.
He also said facilities and financial support from the government, as well as the use of the latest technology, were also important for growth in the air cargo industry.
Indonesia's air cargo services are still dominated by foreign express companies such as Fedex and Polar Air Cargo and foreign airlines such as China Airlines, Eva Air, Korean Airlines, Malaysian Airlines, Singapore Airlines and Qatar Airways.
Local air cargo service providers such as PT Republic Express, PT Cardig Air and PT Tri MG face difficulties in expanding their business due to legal issues and the poor conditions found at airport terminals.
Hemi Pamuraharjo, deputy director for domestic flight services at the Ministry of Transportation, acknowledged there were no specific regulations for cargo services in Indonesia.
Hemi said the only regulation the country has is a colonial Dutch regulation, Staatblad 139, which only outlines the responsibilities of cargo flight carriers but mentions nothing about the system of cargo transportation.
President director of RPX Airlines Iwan Tirtawidjaja said within the last decade air cargo volume had steadily decreased, especially at airports in the eastern part of the country.
According to data from the Ministry of Transportation, a slight increase occurred only in the country's main airports; Soekarno-Hatta in Jakarta, Juanda in Surabaya and Hasanuddin in Makassar.
Data from state-owned airport operator PT Angkasa Pura II indicates cargo volume in Soekarno-Hatta Airport reached more than 370,000 tons in 2006, with an average annual growth of 5 percent since 2000. (02)
The Jakarta Post, Jakarta
A lack of regulations and airport facilities has made Indonesia's air cargo industry virtually stagnant during the past several years, as investors are reluctant to enter the business, says an executive.
Chris Kanter, spokesman for the Indonesian Chamber of Commerce and Industry (Kadin), said Wednesday legal uncertainty and poor airport facilities had contributed to slow growth in the industry.
Speaking at a seminar on the modernization of Indonesia's air cargo services, Kanter said it would be difficult under current conditions for local air cargo companies to expand their business, especially to untapped markets in eastern Indonesia.
"Until now, limited regulations have been imposed on air and sea cargo services. We need to formulate a law on cargo service in order to control service standards and quality," Kanter said.
He also said facilities and financial support from the government, as well as the use of the latest technology, were also important for growth in the air cargo industry.
Indonesia's air cargo services are still dominated by foreign express companies such as Fedex and Polar Air Cargo and foreign airlines such as China Airlines, Eva Air, Korean Airlines, Malaysian Airlines, Singapore Airlines and Qatar Airways.
Local air cargo service providers such as PT Republic Express, PT Cardig Air and PT Tri MG face difficulties in expanding their business due to legal issues and the poor conditions found at airport terminals.
Hemi Pamuraharjo, deputy director for domestic flight services at the Ministry of Transportation, acknowledged there were no specific regulations for cargo services in Indonesia.
Hemi said the only regulation the country has is a colonial Dutch regulation, Staatblad 139, which only outlines the responsibilities of cargo flight carriers but mentions nothing about the system of cargo transportation.
President director of RPX Airlines Iwan Tirtawidjaja said within the last decade air cargo volume had steadily decreased, especially at airports in the eastern part of the country.
According to data from the Ministry of Transportation, a slight increase occurred only in the country's main airports; Soekarno-Hatta in Jakarta, Juanda in Surabaya and Hasanuddin in Makassar.
Data from state-owned airport operator PT Angkasa Pura II indicates cargo volume in Soekarno-Hatta Airport reached more than 370,000 tons in 2006, with an average annual growth of 5 percent since 2000. (02)
Thursday, August 16, 2007
Everyone should be able to do business: Nobel Prize winner
Nobel Peace Prize winner and founder of the Grameen Bank in Bangladesh Muhammad Yunus was recently invited to visit Indonesia by President Susilo Bambang Yudhoyono. The Jakarta Post's Abdul Khalik, Veeramalla Anjaiah and Matheos Messakh caught up with Yunus before his departure Sunday. Below are excerpts from their discussion:
Question: Your profile is very unique, changing your career path from being a professor to a banker. What inspired this change?
Answer: The reason was we were experiencing famine in Bangladesh ... when I was teaching at one of the universities. So I saw how useless the theories that I taught were. I taught economic theories while people were dying.
So I went to the villages to see if I could be useful to anybody there. Then I tried to give loans to people who borrowed from money lenders based on trust. Nobody (else) would give money like that. So, I wanted to arrange a system with the banks. But after months of roaming around the banks, they couldn't open the door. So I offered myself as a guarantor. I said "I will sign your papers, your rules are protected and I will get the money". That finally worked. So I signed all the papers, took the money and gave it to the people.
And I took the responsibility of collecting it and taking it back to the bank. It worked. So that was the beginning of the whole thing.
What was the purpose of your visit to Indonesia? What is your opinion about micro-credit and micro-finance in Indonesia?
Well, I was invited by the President to give a presidential lecture. That was the main reason, and since I was coming (anyway), the Bank of Indonesia also invited me to give a presentation to bankers.
I came here (for the first time) some 12 years back. This is my fourth visit. I can see a lot of changes. Banks here have been doing micro-finance for a long time. They are doing well and there are lots of organizations, but still each one of them is small and sticking ... to government formalities. They (haven't) opened up in a big way. There are still lots of people in Indonesia who should be reached with financial services.
Do you think the kind of system you used in Bangladesh would work in a country like Indonesia?
The basic issue is that everybody should have the right to (access) financial services. Nobody should be denied on the (basis) that they are too poor to do business. The second issue is that you have money lenders in the country. I'm sure that there are money lenders in Indonesia.
I met with 27 groups who are doing micro-credit in Indonesia. Some are lending money to five thousand borrowers, some are (lending to) 10 thousand borrowers and some are (lending to) 70 thousand borrowers.
These are all NGOs. The common question I asked was, "what is holding you back? Why have you stuck with that number?" They said "we have no money". It is because the law here doesn't allow NGOs to take deposits. Why can't we either organize a common fund or a wholesale fund, where any NGO can borrow money and lend it?
We have done it in Bangladesh. That's why micro-credit could spread. The next solution is to enable those NGOs to take deposits. Just create a law and call them micro-credit banks. Then create an independent regulatory body. When dealing with money, particularly public deposits, you need an independent regulatory body to avoid misuse.
BRI (Bank Rakyat Indonesia) has been offering credits to small-scale enterprises in Indonesia. How can they make a bigger impact on society?
In general, governments and micro-credit have bad chemistry. Because after all, the government is a political entity, and (it) is supposed to deal with poor people. But politics becomes (more) important than other aspects, including the economic side. And when people don't pay back (money), politicians don't push them too hard. After all, they are poor people.
An organization which works (at a) distance from the government can work much better than an organization close to the government. BRI, being a government organization, (has) this problem, not that they are bad people or inefficient people. Simply this closeness creates problems. And also, the government has to go through certain bureaucratic procedures which may not be appropriate for credit expansion to poor people.
Why do you believe so much in the poor?
The basic idea is that I believe that all human beings are born with unlimited potential, whether a child is born on the street or born in a palace. Poverty doesn't come with a person. It is created by the system that we created. So why don't we go back to the system to fix it up? Then nobody will be poor. That's my point.
We give opportunities to beggars and lend them money. We tell them that if they go from house to house, can they carry something to sell, some candies, some sweets, some toys, whatever they can sell. And (they) give people the option of whether they want to give (them) rice or they want to buy something.
We give them the money to expand (their business). The typical size of such a loan is about $12. With $12 she or he becomes a salesperson. Many of them are now quitting ... begging and have become sales people because everybody supported them.
During your visit did you explore opportunities for cooperation with Indonesian banks or institutions?
Not in a specific (sense) but definitely I'm sure this will bring us closer. The government themselves are pretty much interested. We discussed a lot about what steps need to be taken. This should not be stopped here. And the role of the media is to make sure this will not stop here.
The advantage of micro-credit is that it doesn't need the government all the time. It is civil society which needs to get it done. The government has to perform the role of creating an enabling environment. The law has to be fixed. Instead of pushing the government to do everything, we can just ask them to create an enabling environment and (then) leave it to the people.
Then, the provincial government can pick it up, the district government can pick it up, because you can make it as small as you want.
Wednesday, August 15, 2007
LG launches new, cheap, 3G handset
The Jakarta Post, Jakarta
South Korea-based mobile phone manufacturer LG Mobile Communications Indonesia (LGMCI) launched Tuesday a new 3G mobile phone in Indonesia, which it says is the cheapest mobile phone in its class.
Vice president of LG Electronics Bo Hoo Choi said Tuesday that with its more affordable price, the new LG KU250 handset was expected to narrow the gap between 2G and 3G handsets.
"We are aiming at first-time buyers of 3G handsets. We want to expand the market by bringing the entry level down so that people can start using 3G phones right away. We help them move from 2G to 3G technology," Bo told The Jakarta Post.
"When we use a 3G phone, there are two kind of benefits. One is video transmission and the other one is data transmission. That is why we developed this model targeting the younger generation and business people," he added.
The LG KU250 handset is the winner of a tender called "3G for All" held by GSM Associations in Barcelona in February to provide a good quality 3G mobile phone at affordable price.
Among 19 models proposed by eight vendors for the tender, LG KU250 was chosen as the winner by a jury of 12 GSM operators. The eight criteria for selection were functionality, usability, logistics, market acceptance, price, service and support, strategic commitment and form.
The 12 GSM operators that selected the winning handset, were Cingular Wireless, Globe Telecom, Hutchison 3G, KTF, MTN, Orange, Smart, Telecom Italia, Telefonica, Telenor, T-Mobile and Vodafone. These operators are now introducing this model in their respective networks.
Bo was optimistic that LG would be able to sell 10 million new handsets worldwide a year, but he was reluctant to predict Indonesian sales.
The phone is equipped with GPRS facilities, 10MB shared memory and external micro SD card slot, bluetooth and USB as well as a 1.3MP camera and a VGA camera for video calling.
He claimed that the handset, which is now available at Rp 1.4 million (about US$160), is the cheapest in its class.
"The prices of most of 3G phones in the country are above Rp 2 million. Only some old products are bellow that level. So in terms of price and value, I don't think there is any competitor for us," said Andre Tanudjaja, sales and marketing general manager of LG Electronics Indonesia.
Andre said that by June the average demand for 3G handsets in the country had reached 13 percent of the total demand for mobile phones, far higher than 6 percent last year.
Indonesia's annual total mobile phone sales reaches around 15 million.
He said that the average was likely to increase to 15 to 17 percent by the end of the year and that LGMCI was aiming to secure a share of 10 to 15 percent of the 3G market in the country. (02)
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