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    August/September_UP.DATE_12 August/September_UP.DATE_12 Document Transcript

    • JOURNAL “Facilitating Trade & Investment Between Indonesia and Britain” AUGUST/SEPTEMBER 2012 Angel Investing Imports of Fruit & Indonesian Entrepreneurs torical ties Indo His for Emerging Vegetables into Indonesia- - as the Agents of Change rs ne a sia ye -UK 200 Entrepreneurs An update on New in Facing Eurozone Crisis in Indonesia Regulations Impact to Indonesia Economy PAGE 32 PAGE 38 PAGE 47 Success Means Entrepreneurs (are) smalleragustus-september_16august.indd 1 8/16/12 7:33 PM
    • 2| AUGUST/SEPTEMBER 2012agustus-september_16august.indd 2 8/16/12 7:33 PM
    • TABLE OF CONTENTS EVENTS 40 When Japanese Customers 8 Young Professionals Group are Actually Right and Truthful Indonesia’s Investment Outlook contributed by BritChams 9 HR Sector Group Seminar. Manufacturing & Retail Sector 10 Luncheon: Developing People - It’s a Group Our patron: leader’s job and makes life easier 42 The Hunting Knife Versus the 11 Business & Social Gathering - June & Penknife contributed by BritChams July 2012 HR Sector Group 12 Professional Womens Group - Wisdom from Extra-ordinary SME SPOTLIGHT Proudly sustained by: Experience and Breast Cancer 43 The Rich are Getting Younger Awareness contributed by ActionCOACH 13 Professional Womens Group - Effective Networking THIS MONTHS FEATURES Strategies 44 Entrepreneurship Policies for Sustainable Economic Growth BUSINESS & ECONOMICS contributed by BritChams Young 15 The Power of Action Learning in Professional Group Creating Sustainable Competitive 47 Indonesian Entrepreneurs - as the Advantages Agents of Change in Facing Eurozone contributed by PT. People Power Crisis Impact to Indonesia Economy 18 Health, Wealth and Happiness contributed by Jennifer Hadinugraha (please) contributed by One Asia 48 Are Team Building Trainings Really 20 Killer Sales Presentations Worth the Investment? contributed contributed by Think8 by Outward Bound Indonesia 22 Are You LinkedIn? contributed by 50 New Tax Plan for SMEs contributed Infotech SF Consulting 24 Renewable Energy in Indonesia 52 The success of Indonesia’s SME contributed by PT. Serdang development contributed by The Biopower Executive Centre INDONESIAN BUSINESS LIFESTYLE & HEALTH NEWS 53 Minimal Access Neurosurgery - fiction or reality? contributed by 26 Angel Investing for Emerging Raffles Entrepreneurs in Indonesia 54 Naked Conversation - Book Review contributed by HIPMI JAYA 55 This Month in History 28 Trade and Investment Opportunities 56 The Games in Numbers - Myth for Indonesia in Special Economic Airline partner of the year 2011/2012: Zones of India contributed by KADIN MEMBERS INDONESIA ANNOUNCEMENTS 57 New Members BANKING & FINANCE 59 Members Announcements 30 Global Connections Report contributed by HSBC This publication is not for sale. It is distributed free to members 34 Indonesia – Investment-grade of the British Chamber of Commerce in Indonesia (BritCham). A euphoria fades contributed by number of articles in Up.Date have been provided to us by outside sources, including Concord Consulting and Castle Asia, and have Standard Chartered Bank been reproduced in this newsletter largely without editing. The 36 Are High Investment Returns Still articles selected represent a range of views on significant current issues in Indonesia. The views expressed in this journal cannot be Possible Today contributed by PPI assumed to represent the official views of BritCham as a whole nor Indonesia of its Board of Management and Executive Office. Any errors of fact that occur in the articles are the responsibility of the contributing author or publisher. SECTOR GROUPS The articles conntributed by CastleAsia are summary translations 38 Imports of Fruit & Vegetables from the original Indonesian language sources for inclusion in their into Indonesia- An update on own publication, Indonesia Country Program; Executive Highlights. The contents and views expressed do not necessarily represent New Regulations contributed by those of CastleAsia or BritCham. The translations may not be literal. BritChams FFFA Sector Group The articles are not intended as formal advice and should not be relied upon as such. | 1agustus-september_16august.indd p1 8/16/12 7:33 PM
    • FORTHCOMING EVENTS For further information or to make a reservation, please contact or call DHINI at +62 21 522 9453 For Associate sponsorship, please contact THURSDAY August’s Business & Social Gathering 30 AUGUST Sponsored by Government of Riau Island Shangri-La Hotel | |18.00 – 12.30 THURSDAY Breakfast Panel Briefing 6 SEPTEMBER “Business Risk & Security” 18.00 – 12.30 | 5* CBD hotel Wisma Metropolitan I, 15th Floor Jl. Jend. Sudirman Kav. 29-31 Jakarta 12920 – Indonesia PHONE +62 21 522 9453 FAX +62 21 527 9135 EMAIL THURSDAY European Business Partners: 13 SEPTEMBER BRITCHAM, EKONID, IFCCI, INA & Eurocham Hosted by BritCham, Sponsored by CEO Suite 18.00 – 12.30 | TBA OFFICERS CHAIRMAN Haslam Preeston VICE CHAIRMAN Maxi Gunawan HONORARY SECRETARY ACTING James Bryson HONORARY TREASURER Daniel Hankinson MONDAY BritCham in association with The Fry Group: SECTOR GROUPS CHAIRMAN OF ENERGY 17 UK Tax Seminar - focusing on Residency & Domicile 18.00 – 20.30 |TBA (Refer to page 14) SECTOR David Braithwaite MBE CHAIRMAN OF HUMAN RESOURCES David Knowles CHAIRMAN OF INFRASTRUCTURE Scott Younger OBE SEPTEMBER CHAIRMAN OF MANUFACTURING & RETAIL Joseph Hwang CHAIRMAN OF FOOD, FORESTRY, TUESDAY Breakfast Briefing: An Introduction To Navigating 18 FISHERIES & AGRICULTURE Roger Pinder Business Opportunities in Myanmar SECTOR COMMITTEES CHAIRMAN OF Sponsored by Cushman & Wakefield MEMBERSHIP SECTOR COMMITTEE Aziz Adam SEPTEMBER 07.30 – 09.00 |TBA Sattar CHAIRMAN OF SME SECTOR COMMITTEE Cynthia Wihardja CHAIRMAN OF YOUNG THURSDAY PROFESSIONALS GROUP Jay Singgih CHAIRMAN 4 Breakfast Briefing: OF PROFESSIONAL WOMEN COMMITTEE Sponsored by Cushman & Wakefield Juliette Williams BOARD MEMBERS Tom OCTOBER 07.30 – 10.00 | TBA Aaker, John Arnold OBE (Former Chairman), James Bryson, David Burke, Rob Daniel, John Galvin, Colin Harvey, Malcolm Llewellyn OBE WEDNESDAY (Former Chairman), Tonny Pranatadjaja, Harun 17 Breakfast Briefing: The Journalists Perspective of Reksodiputro, John Slack, Darwin Silalahi Indonesia EX OFFICIO Debbie Clarke – Director of UKTI, OCTOBER 07.30 – 10.00, | TBA Keith Davies OBE – Director of British Council, Heru Dewanto – IABA (CORRESPONDENCE FOR THURSDAY October’s Business & Social Gathering BOARD MEMBERS may be addressed to: info@ 25 OCTOBER Sponsored by Allied Pickfords, Colliers, Etihad, FTI Consulting EXECUTIVE OFFICE EXECUTIVE DIRECTOR Chris Wren ( 18.00 – 20.30 | TBA EXECUTIVE ASST Irawati Nataadidjaja THURSDAY BritChams Professional Womens Group ( SALES 25 OCTOBER 16.00 – 18.00 | TBA & MARKETING COORDINATOR Shinta Permatasari ( EVENT COORDINATOR Dhini Puspitasari (events@ FINANCE OFFICER Daliana THURSDAY September’s Business & Social Gathering UK Alumni Tiono ( PUBLICATIONS 27 Sponsored by Global Assistance, The Haven, Prudential & Robbie Stone ( Santa Fe BUSINESS DEVELOPMENT Hans Mohammad OCTOBER 18.00 – 20.30 | TBA ( 2| AUGUST/SEPTEMBER 2012agustus-september_16august.indd p2 8/16/12 7:33 PM
    • British Chamber of Commerce TUESDAY 16 in Vietnam ( BritCham Economic Briefing with Roman Scott OCTOBER SATURDAY 15 BBGV HCMC supports AusCham WEDNESDAY 31 Annual Ball “Arabian Nights” Collaborating across the Supply Chain SEPTEMBER for Green Growth OCTOBER WEDNESDAY 26 SEPTEMBER BBGV HCMC’s luncheon with the Lord Mayor of the City of London British Chamber of Commerce in Thailand ( SUNDAY TUESDAY 30 BBGV HCMC FUN RUN FOR CHARITY 4 Special BCCT Luncheon (Bank of Thailand) SEPTEMBER OCTOBER British Chamber of Commerce in THURSDAY THURSDAY 20 & 18 Singapore ( Third Thursday Networking Evening THURSDAY SEPTEMBER OCTOBER 13 Entrepreneur / SME Inter-Chamber Networking Night TUESDAY 11 SEPTEMBER Business Breakfast British Business Association Cambodia FRIDAY SEPTEMBER 28 SEPTEMBER Energy & Utilities Briefing British Chamber of Commerce in Philippines ( THURSDAY 4 OCTOBER 13th Annual Business Awards TUESDAY 4 Business Lunch Philippine Consumer Trends & SEPTEMBER Ecconomic Outlook BritCham members in Indonesia are invited to attend Chamber events at BISEA Conference participating Chambers. USE YOUR BritCard. EDITORIAL TEAM The Executive Office:, Robbie Stone. DESIGN, LAYOUT AND PRINTING PT. PHOENIX Communications. Jl. Benda Raya No. 98 A-B Cilandak 12560 T:+62-21 781 3212 | F: +62-21 781 2476 | E: | UP.DATE is published by BritCham (British Chamber of Commerce in Indonesia). This publication may not, in whole or part, be lent, copied, photocopied, reproduced, translated or reduced to any electronic medium or machine readable form without the express written permission of the publisher. | 3agustus-september_16august.indd p3 8/16/12 7:33 PM
    • CHAIRMANS MESSAGES Despite somewhat overblown fears arising Reform, stated Indonesia’s Civil Service from a lack of private security guards faced five key problems: and understandable concerns about the weather and transport infrastructure, 1. Over-complicated and excessively London put on an absolutely spectacular staffed organisational structure show. The organisational challenge in 2. Under-staffing and lack of specialists hosting the world’s premier sporting in critical areas of competence event in one of its largest cities, with 3. Difficulties in measuring the delivery London’s creaking tube and commuter and outcome of services rail network, notorious shortage of hotel 4. Poor quality of most public services rooms, overburdened roads and all the 5. Overlapping laws horrors of Heathrow, cannot be under estimated. Beijing faced similar difficulties, The encouraging news is that Pak Eko and but benefited from the iron control of the his boss, Administrative Reform Minister, state over pretty much everything in the Pak Azwar Abubakar, understand the pursuit of national glory. That cannot be nature of the problem. But, rather as with said for London and it says huge amounts the KPK tackling corruption (part and parcel for the capabilities of the organising of administrative reform), one wonders committee and supporting government whether the resources and commitment institutions that things have largely gone to sustain a long-term effort can be Haslam Preeston pretty smoothly. marshalled. Put another way, is there the political will to effect real change. Equally Looking at Indonesia, I wonder what important is that the desire and impetus for Britain, Britain, Britain... would need to change in order for Jakarta change should also come from within the I must admit I fell victim to host a successful Olympic Games. The bureaucracy itself. However, the current starting point would be winning the right standoff between the national police and to the Olympics hype. to host the Games in the first place. The KPK over the arrest of a two-star police Badminton has never been city and national governments would need general does not seem encouraging. The so gripping as watching Lin to create and sustain an organisation to protection of established privileges and mount a credible bid against international practices appear to be more important Dan (China) snatch Gold from competitors, and after winning the bid, than effecting perhaps painful change for Lee Chong Wei (Malaysia). push through necessary infrastructure the greater good. If that remains the case, investment whilst adhering to an inflexible and until society demands otherwise, then Whilst perhaps hours of timetable. the efforts of the cluster of technocrats ping pong coverage was at the highest levels in government will wearing (yes, I was watching Indonesia’s civil service has struggled to achieve far less than they otherwise might. deliver infrastructure projects of far greater – China appears to own the importance than mere sporting venues and To return to my original point on hosting sport), catching Alistair and it is this failure to execute that is concerning. the games here: unless the government Inspiring targets, articulate ministers and can accelerate the drive for administrative Jonathan Brownlee take Gold reams of (hopefully) well-thought out reform, a “Jakarta 202X” Games would be and Bronze for Great Britain legislation and regulations will find it less Beijing 2008, and more like New Delhi in the Triathlon, in front of difficult to surmount a venal and corrupt 2010. bureaucracy. Things are in a parlous state 250,000 spectators on a when one often reads in the media that A final point on the Olympics: the churlish course around Hyde Park, business regards payments to government decision by the UK’s Football Team Captain, officials to expedite processing of licenses, Ryan Giggs, not to sing the national anthem was a wonderful moment. permits and so on as a necessary “tax” for reasons generally lost on the rest of The medal standings have to ensure they can simply do business. the world (born in Cardiff, he grew up also given the rather surreal I remember a newspaper article in the in Manchester and is part West African Philippines several years ago lamenting – surely a great advertisement for our feeling of seeing Australia a research report that rated only India modern United Kingdom, rather than trailing Kazakhstan....I have and Indonesia as having more inefficient Welsh nationalism?). A real leader would bureaucracies. have either turned down the captaincy, quietly hidden my Australian or swallowed his pride for the unity of his passport. Writing in the Jakarta Post in June, Eko team and country. Prasojo, Deputy Minister for Administrative 4| AUGUST/SEPTEMBER 2012agustus-september_16august.indd p4 8/16/12 7:33 PM
    • In the future, there will be no markets waiting to emerge. By 2050, it is forecast that 19 of the 30 largest economies by GDP will be countries we now call ‘emerging’* But how will . this new world order stack up for your business? At HSBC we understand emerging markets – 150 years ago we were set up to facilitate trade between China and Europe. Our Trade teams, on the ground in over 60 countries, can help you navigate local markets while keeping your eye on the bigger picture. There’s a new world emerging. Connect to the latest international business insight at *Source: HSBC “The World in 2050” Jan 2011. . Issued by The Hongkong and Shanghai Banking Corporation Limited. | 5agustus-september_16august.indd p5 8/16/12 7:33 PM
    • EXECUTIVE UPDATE Most importantly, by the end of October, to you. This will be work-in-progress from we will be able to offer members the mid September. added complimentary facility of conducting meetings at BritCham when more convenient, EIBD - ACTIVE or when the BritCham setting might be more BritCham is one of the collaborating conducive to opening or closing a deal. Chambers for the EU-Active project. An annual focal point is the EIBD (Euro-Indo CHRISTMAS PARTY Business Dialogue) which is a B-2-B forum Well, we have billed this years Christmas for providing essential input for G-2-G party as a Right Royal event. We have all deliberations on trade issues. The main enjoyed the Silver Jubilee celebrations that purpose is to create a better environment to have been beamed across the world and mutually exploit business opportunities. This perhaps many of us were amazed at HMs years EIBD will be held in Bali on November interphase with 007 for the opening of the 8 and 9. It is intended to assemble 25 London Olympics 2012. This years BritCham senior executives from each of Europe and Christmas Party is to be our celebration of Indonesia to participate in specific sectoral two great landmarks in British history. Tickets and cross-sectoral working groups. Both will be announced as on sale at the Special President SBY and the EU President will be Alumni B & S Gathering on Sept 27th and you in attendance to hear the output and for Chris Wren can guarantee a sell-out within a couple of a wider plenerary session that is likely to EXECUTIVE DIRECTOR weeks, as last year. Our corporate members attract around 400 delegates. BritCham has have been quick to sign up to sponsorship specific responsibility for the Infrastructure opportunities. With Gold fully subscribed sector. If you would like to actively participate SMART OFFICE BRITCHAM and HSBC having taken the banking slot in or receive an invitation, please contact me Following the signing of the Platinum, one further Platinum slot remains personally. and a couple of Silver and Associate. MOU between BritCham and AMNESTY UK ABC ( UK Asean Business EVENTS Each year a small percentage of our members Council) during the PMs As we enter the last trimester of 2012, lapse and yet we continue to meet them BritCham is delighted to draw members periodically at various events. It may be recent visit, we are delighted attention to a long list of events that that the separation has been inadvertent, to report that our follow-up is feature sector updates, alternative country so if you are a lapsed member from 2011 a full refurbishment and very perspectives, valuable information on current or 2012, we will be offering you an amnesty trends and the eagerly awaited launch of the enabling you to renew before the end of fresh look for our BritCham BritCham Business Confidence Index. Many September without having to pay a new Executive Office. additions to our events list are pending, so Admin fee. Please keep an eye open for please do keep a close eye on each Mondays your personalised invitation detailing the Forthcoming Events mail. special amnesty terms. The MOU committed BritCham to providing British SMEs, looking at opportunities DATA MANAGEMENT SYSTEM in Indonesia, with on-demand smart- We listen very carefully to your comments office facilities with the unique privilege and suggestions. One thing has been clear Your comments and suggestions are always of mentoring and assisting, including and that is the need to rejuvenate our important and welcomed. Please contact match-making. In order to honour this communication platforms. A very significant me directly on: commitment we have now contracted a step towards this is a complete overhaul full re-furb of our Wisma Metropolitan 1 of our database management system. The facility that includes 2 smart-offices for 4 result will provide you with more opportunity and 6 persons respectively, as well as hot to use the BritCham website for bookings desks so that BritCham is in a position to take and information retrieval and for us to learn on temporary additional staff for specific more about your preferences. Our objective business services and projects. is to be alerting you about the events and issues that you are telling us are important 6| AUGUST/SEPTEMBER 2012agustus-september_16august.indd p6 8/16/12 7:33 PM C Chris
    • | 7agustus-september_16august.indd p7Ch i tChristmas_2012_FLYER a4 ok.idd 1 2012 FLYER 4 k idd 8/16/12 2:16 PM 7:34 8/16/12 2 16 PM
    • EVENTS britchams young professionals group On 14th June 2012, the BritCham Young Professionals Group (YPG) hosted an event with the theme of “Indonesia’s Investment Outlook”, with speakers Mr. Daniel Budiman (Founding Partner of Mahanusa Capital) and Mr. Tigor M. Siahaan (Chief Country Officer of Citibank Indonesia), moderated by Mr. James Bryson (Director and Founding Partner of PT HB Capital Indonesia). The event was hosted at the Financial Club Jakarta and was attended by young professionals from various sectors including financial services, management consultancy, investment banking and investment management. Tigor M. Siahaan (Chief Country Officer of Citibank Indonesia). Haslam Preeston (BritCham Chairman), Daniel Budiman (Founding Partner of Mahanusa Capital), Tigor M. Siahaan (Chief Country Officer of Citibank Indonesia) and Jay Singgih (Chairman of Young Professionals Group). Jay Singgih (Chairman of Young Professionals Group) delivering his opening remarks. Tigor M. Siahaan (Chief Country Officer of Citibank Indonesia) delivering his words. James Bryson (BritCham Board Member), Tigor M. Siahaan (Chief Country Officer of Citibank Indonesia), Daniel Budiman (Founding Partner of Mahanusa Capital). Jay Singgih (front) and audience listening Guests Enjoying the buffet. to Tigor M. Siahaan and Daniel Budiman. Nicky Yuventius Andrew Sutedja (BritCham YPG Committee (BowerGroupAsia) putting Member) third from left , with Guests. forward his question. T he event, which took place as a panel discussion forum, provided an insight on investment outlook in the various sectors in Indonesia, including government regulations, regional/global economy and its impact on short and long-term investments in Indonesia. The panel discussion also raised issues which should be improved, such as further investments on education and human capital as well as introducing policies and further investments in infrastructure which would create a more conducive ecosystem for entrepreneurship and innovation in Indonesia. These would need strong leadership and government support/ commitment; however, working together on this with private enterprise would ensure Indonesia’s increased competitiveness in the regional and global stage, as well as an increased sustainable development and economic growth. BritChams YPG would like to take this opportunity to thank our speakers, Mr. Daniel Budiman and Mr. Tigor M. Siahaan, as well as Mr. James Bryson as the moderator for our event. We would also like to thank the BritCham Executive Office, BritCham Board Members, Mr. Haslam Preeston and Mr. Chris Wren for the continuous support and mentorship to our Group. Last but not least, we would like to thank all our guests and attendees for all the continuous support and we very much look forward to seeing all of you at the next BritCham YPG event. Jay Singgih - Chairman of BritChams Young Professionals Group 8| AUGUST/SEPTEMBER 2012agustus-september_16august.indd p8 8/16/12 7:34 PM
    • BritChams HR Groups seminar Five Ways Business Leaders Use Mediation To Their Advantage by Raymond Lee SPONSORED BY : & How Your Company can Change to Retain Talent: How to use Employee Engagement Surveys by David Knowles Mr. Raymond Lee, a mediator with the Indonesian Mediation Centre (Pusat Mediasi Nasional) presented a lively case for mediation. As business leaders, Lee argued, our task is to achieve a certain outcome for a certain cost within a certain time. Why then, when faced with conflict, do many in business turn to a conflict resolution tool that offers an uncertain outcome, uncertain costs, and an uncertain time frame, namely adjudication? ( continued on page 42 ) Raymond Lee (indonesian Mediation Centre delivering his talk. Chris Wren (BritCham Executive Director) offering his thanks to David Knowles and Raymond Lee. David Knowles (PT OPUS Management Indonesia) delivering his talk. David Knowles (PT OPUS Management Indonesia) delivering his talk. | 9agustus-september_16august.indd p9 8/16/12 7:34 PM
    • EVENTS SPONSORED BY : Outward Bound Indonesia Luncheon: Developing People It’s a leader’s job and makes life easier - with Noke Kiroyan A very special Luncheon, kindly sponsored by Outward Bound Indonesia, was held at the Intercontinental Midplaza on 27th June 2012. Noke Kiroyan (Chief Consultant of Kiroyan Partners) spoke on the role a CEO has to play in the development of an organisation and the development of its staff. Experienced Noke Kiroyan shared Noke Kiroyan (Kiroyan Partners) delivering his talk. John Slack (BritCham Board Member), Noke Kiroyan, Wendy Kusumowidagdo (Outward Bound Indonesia), John Arnold (BritCham Board Member), Chris Wren (BritCham Executive Director). his key insights into the successful leadership he himself has enjoyed over his long career. His practical approach offered a refreshing contrast to the slick concepts and models provided by many purveyors of ‘leadership’. Noke Kiroyan (Kiroyan Partners) delivering Guests enjoying the opportunity to Nokes sense of humour working with his final words of thanks to the Guests. listen to Noke. the guests. 10 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p10 8/16/12 7:34 PM
    • SPONSORED BY : Business & Social Gathering 2 3 5 1 T he BritCham Business & Social Gathering of June was held on Thursday 28th. The Mercantile Athletic Club kindly opened up the lounge area for more relaxing setting than usual. A 4 6 big thanks to Fortice, The Haven, Tauzia, and Paulaner Bräuhaus PHOTO CAPTIONS for their Kind sponsorship and a special mention to the MAC team 1. Chris (Tauzia), Teo (BritCham), Haslam Preeston (BritCham Chairman), Shinta who organised a superb buffet. (BritCham), Roger Smith (JAC Business Center), Chris Wren (BritCham Executive Director), Steve Barber (Indonesian Rugby), Guest. 2. Hernoko D. Wibowo (SUDJONO & REKAN), Guest, Sarah Howe (AmCham) Door prizes and Winners 3. Clive Philips (Detmold Packaging), Sugianto (Mercantile Athletic Club), Jürgen Domani Dining vouchers from Paulaner Bräuhaus & Dining vouchers (Mercantile Athletic Club), John Slack (BritCham Board Member). Mercantile Athletic Club: 4. Tinneke Agustina (Asian tigers), Poonam Sagar (PT InfoTech Solutions), John Corbett (People Solutions). Roger Smith (JAC Business Center) 5. Haslam Preeston (BritCham Chairman) Vica Valentina (Irlen Dyslexia Centre) 6. Rob Daniel (BritCham Board Member), Rob Phillips (RP Digital Security Pte Ltd) SPONSORED BY : A larger than expected number turned out for July’s 1 2 Business and Social Gathering. It was held at the Maroush Restaurant at the Crowne Plaza Hotel. Guests enjoyed a delicious selection of Middle Eastern Dishes to buka puasa (break the fast). A big thank you to the Voffice and Maroush for their 3 kind sponsorship. Door Prizes & Winners 1.Free Voffice platinum plan for 1 year valued at Rp. 7,800,000 – Victor Dumitrescu (Pedersen & Partners) 4 5 2.Free Voffice platinum plan for 3 months valued at Rp. 2,550,000 PHOTO CAPTIONS – Marina Spisiakova (United nations ESCAP) 1. Grigoriy Ryabtsev (PT Serdang Biopower), Theodora Schiop (Allied Pickfords), 3.Free Voffice meeting room voucher valued at Rp. 600,000 – Guest. Virawati (PT. Rajawali Pialang Asuransi) 2. Personel from the Indonesian Ministry of Trade taking the opportunity to network. 4.Dining voucher from Madeleine Bistro valued at Rp. 400,000 - 3. Poonam Sagar (PT Infotech Solutions), Sony Jethnani (JAC Recruitment), Debbie Nigel Landon (PT. EnviroSolutions & Consulting) Clarke (UKTI). 5.Dining voucher from Maroush and Anatolia valued at Rp. 4. Adji Sujianto (Maroush), Chris Wren (BritCham Executive Director), Sean Tham, (Voffice) Malcolm Llewellyn (BritCham Board Member) 400,000 - Michelle Sanchez (PM Communications) 5. Marc Joly (PM Communications), Chris Wren (BritCham Executive Director), 6.Pinot Noir wine - Francois Rousselle (Safeway Relocations) Michelle Sanchez (PM Communications) | 11agustus-september_16august.indd p11 8/16/12 7:34 PM
    • EVENTS Wisdom from Extra-ordinary Experiences and Breast Cancer Awareness Professional Womens Group June, 28th 2012 event Sony Jethnani (JAC Recruitment) weloming Shinta McDonald (DMAC), Esti McMillan Sony Jethnani (JAC Recruitment), Esti McMillan Poonam Sagar (PT Infotech Solutions), left, the guest speakers to the stage. (EMC Home Search), Mariko Yoshihara (EMC Home Search), Poonam Sagar (PT and Sony Jethnani (JAC Recruitment), right, (PT. JAC Indonesia), Sony Jethnani (JAC Infotech Solutions), Mariko Yoshihara (PT. JAC presenting a certificte of apreciation to Dr. Recruitment) during the pannel discussion. Indonesia), Tinneke Agustina (Asian Tigers Felicia Tan (Raffles Hospital Singapore). Indonesia) Mina lie (Gelamisto). N early sixty women packed into the she keeps healthy by choosing foods that minimum insurance for hospitalisation crowded function room at the Mercantile are antioxidant and anti–cancer. She stays benefits and stressed the importance for Athletic Club for the Professional energetic and vibrant through her hobby income providers of the family to take out a Women Group’s Thursday, June 28th event. of dancing, working hard and having fun. life-insurance policy to ensure their families would be taken care of should something Following our usual half hour coffee break Mariko shared the most important lesson unfortunate happen to them. and networking time, we started our panel she had leant. This was to be mindful and discussion with Mariko Yoshihara, CEO of present in the moment and not concentrate Mariko also advised to consider acquiring PT. JAC Indonesia and PT. JAC Business too much on 5 & 10 year goals, which had a source of earning passive income for our Center, who is one of the survivors of the been her main focus before the incident. “old age” and times when we are unable JW Marriot Bomb blast of July 17, 2009 She is living more in the NOW and has let to work due to illness or accident, as this and Esti McMillan, Founder & Director go of all attachments to material things. will provide us with security and financial of EMC Home Search, who has overcome She is not afraid to be fully herself in all freedom to continue maintaining our current breast cancer. situations. She reminded us to love ourselves, standards of living. our family and friends. We chose these two women to share their The panel discussion was followed by a stories with our group as they are living The most important lesson detailed and graphic presentation on the examples of how they took the wisdom from [is] to be mindful and Prevention and Treatment of Breast Cancer their individual extraordinary experiences and present in the moment and by Dr. Felicia Tan, Specialist in General continue to live with passion and purpose. Surgery at Raffles Hospital Singapore. Dr. Their vision and determination for what they not concentrate too much Tan is actively involved in promoting breast want out of their lives and their self-belief on 5 & 10 years goals cancer awareness internationally. Her research are the qualities, which propelled them interest lies in breast oncology. through these life-threatening challenges. Our third panellist, Shinta Mc Donald - F ounder of DMAC- explained how Esti and Dr. Tan explained breast cancer is the No 1 Both women were very light-hearted and jovial Mariko both benefitted since the treatments cancer in the world right now. The ratio of about their experiences and answered my they had to undergo would have been a women to men with breast cancer is about questions, which they found to be deep and huge financial burden on them had they 100 to 1. Incidence of cancer in today’s world intense, with humour and grace. I explained not acquired insurance protection. Mariko is around 1 in 8 women. Research has not to them that some of us have moments required medical treatment for around 6 come up with the cause of breast cancer as when we struggle with our emotions, and months. Esti is still undergoing chemotherapy yet. Our genes play a major role and older hearing their stories would help to inspire us in Singapore, 3 years after her initial diagnosis. age, radiation and hormonal medicines can to look beyond the events and circumstances All the expenses these women have incurred increase the risk of breast cancer. to learn the lessons and stay positive and for their recoveries have been reimbursed determined to live our lives as best we can. by their insurance coverage, enabling them Overall, the vulnerable and open sharing of all Esti shared that the breast cancer made her to maintain their standard of living. the speakers made us all feel connected and become aware of her priorities - which are united for having been part of this truly special herself and her two children. Since her surgery, Shinta recommended all women acquire and unique session of real-life inspiration. 12 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p12 8/16/12 7:34 PM
    • Effective Networking Strategies Professional Womens Group July, 26th 2012 event Golden Rule of Networking : “All things being equal, people will do business with, and refer business to those people they know, like and trust.“ Guests listening to Sonny’s talk I n today’s business world, off-line or face- to-face networking is still a required aspect of conducting business for most of us, despite the rapid and continual growth of online networking, especially amongst the X & Y generations. Sony Jethnani (JAC Recruitment), Poonam Sagar (PT Sony Jethnani (JAC Recruitment), receiving thanks from Juliette Williams (BritCham Board Member) for her talk. Infotech Solutions), Tinneke Agustina (Asian Tigers Indonesia) with guests. For anyone who is considering networking or already an avid networker, three useful attitudes I recommend are; 1) Be Enthusiastic – have an attitude of enjoyment and fun and be positive 2) Be willing to share and give information – Don’t ask “what can you do for me”, ask Sony delivering her talk Guests enjoying the chance to network “what can I do for you.” 3. Be Present. A networking event is an person remember us for our uniqueness 3) Be open to learning – everyone we meet opportunity to talk to people face-to-face and the value of what we are representing. knows or does something that we may not and involves interaction and connection. already know and having a willingness to This requires us to listen, talk, ask Taking notes when talking to someone who listen and learn will encourage others to questions and make introductions. Don’t is interested in your company or service and share and talk to you. be distracted by past meetings or your going out of your way to connect two people next meeting. Don’t focus on your phone you know during an event are other good Combine the above attitudes with the or blackberry. Recognise this uniqueness traits you want to make efforts to practice. following three qualities and you will be of offline networking – it’s those one-to- ensured to have a productive networking one conversations and connections that “You get what you bring” from an event session : may turn into leads, referrals and potential so be conscious and mindful of the energy clients for you. you are bringing and your thoughts and 1. Be Prepared. Choose the event that you actions while you are networking. attend carefully and do your research on Online research shows that for networking the Chamber and its members. Check if the to be successful, we need to do at least 6.5 Please join our Facebook page : http://www. participants are your target audience. Prepare hours of networking per week, or attend 3 and practice your 10 second introduction events for 2 hours each. at-BritCham/168739736491714. speech. Bring at least 30 name cards – especially if your aim is to collect name We will only see the results from our cards for your database. networking activities, when we use the name cards collected to add to our database 2. Be Positive. Speak with appreciation and also send follow up emails to those who and gratitude. A networking event is an we met. Again, online research shows that Sony Jethnani Life Coach - Mindfulness, Values & opportunity to meet people. There are follow up contacts lead to a business deal Well-being usually between 50-100 people so, don’t between the 7th to 20th follow up action. www.sonyjethnani Email: only focus on the food, drinks and venue. We need patience and persistence and we Realise the potential of the event by being need to be authentic and creative in our style “people-minded”. of follow up. The key is to make the other | 13agustus-september_16august.indd p13 8/16/12 7:34 PM
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    • BUSINESS AND ECONOMICS THE POWER OF ACTION LEARNING IN CREATING accumulated through natural resources, more capital and superior technologies or SUSTAINABLE COMPETITIVE ADVANTAGE better economies of scale. It is becoming increasingly clear that the dominant competitive force in the twenty-first century I hear and I forget; I see and I remember; I do and I understand. will be the capabilities derived from people (Confucius, 551-479 BC ) and better economies of scope. While conventional capital depreciates, intellectual capital appreciates with use. It has been widely acknowledged, particularly over the past two decades, that the source of corporate wealth is no longer material, but information and knowledge, applied at the workplace to create value. Consequently, the vital process of managing corporate knowledge and intellectual capital for generating and sustaining competitive advantage has gained the mainstream recognition that it so truly deserves. ORGANISATIONAL DEVELOPMENT Within the context of organisations, ‘development’ could be defined as ‘creating the realisation of optimum potentialities’. It is not a state or condition, but a process. It is an increase in capacity and potential for improvement, and not necessarily an increase in attainment. It is more a matter of motivation, knowledge, understanding and wisdom than it is of material wealth. THE “WAKE-UP CALL” technology and variety are becoming It is a means of creating organisational The latter half of the 20th century evidenced a available at relatively low cost, the only sustainability and value creation. One quantum leap in technological development. sustainable competitive advantage that a of the most effective means of creating Major trends towards globalisation, company can create may be the ability to sustainable competitive advantage is through virtualisation, shorter product life cycles, learn faster than its rivals and to anticipate a ‘differentiation’ strategy that generates faster imitation of products and services, changes in the business environment”. ‘causal ambiguity’, which is defined by cheaper labour rates in developing Lipmann and Rumelt as “possessing multi- economies, and the ever increasing pace Recent phenomena such as the global dimensional competitive advantage, each of mass communications challenged the economic crisis, the unfolding economic of which is based on complex bundles of validity of a number of existing management crisis in the Euro-zone and shift of economic capabilities rather than individual resources paradigms. The ‘information era’ brought power to emerging super powers such as and capabilities, such that it is more difficult with it major changes in our personal and China and India have been a ‘wake-up call’ for a competitor to diagnose the determinants work interactions. Earlier this year, the for Captains of Industry. A paradigm shift in of success” At the heart of this definition is the impact of social media during the ‘Arab management thinking and a quantum leap vital need for optimising individual, team and Spring’, was credited with catalysing major in developing and sustaining competitive organisational learning, which leads to the political and social change and indeed the advantage has become the ‘mantra’ for conclusion that organisational development fall of many despotic regimes. ensuring survival. For companies to succeed is the most effective means of generating in this millennium, they would have to ‘causal ambiguity’ and consequently creating Arie De Geus (Dutch Shell) once pointed out innovate ways of managing the present sustainable competitive advantage. the startling statistic that 30% of Fortune by looking to the future rather than the 500 industrial companies listed in 1970 past. This implies that organisations should GROWTH AND DEVELOPMENT had vanished by 1983, and suggested that excel in developing the future potential of Growth and development is not the those that did survive were those whose their capabilities and competencies. same thing. Growth can take place with “rate of learning was greater than the rate or without development, and vice-versa. of change of their operating environment”. KNOWLEDGE MANAGEMENT Growth is an increase in size or number. There is now widespread recognition that Development is more closely associated with Senge (1991) endorsed this view and the sources of competitive advantage have the quality of work life and the realisation cautioned that “In an age when quality, changed. In the past corporate wealth was of an organisation’s optimum potential. | 15agustus-september_16august.indd p15 8/16/12 7:35 PM
    • BUSINESS AND ECONOMICS The principal limits to growth are external abrasion’. AL is based on the premise that Questioning insight, Revans emphasis was and imposed from without, while those to there is no learning without action and based on critical reflection and using peers development are internal and self-imposed. no deliberate action without learning. It is to generate action plans and generating Development consists of a desire and ability an integrative approach that inter-relates learning from reflection on practice and and therefore cannot be imposed on another. academic and workplace domains, and it reasoned that “The mark of a person is Organisational development is therefore is this synergy that holds out the greatest not in the statements they make but in the about encouraging and facilitating another’s promise for promoting learning. questions they ask”. The grounded theory learning and motivation. here is that people learn more effectively Zuber Skerritt (1993) from their peers, because more creative ORGANISATIONAL LEARNING describes AL as reflection is achieved. Argyris (1990) asserts that organisational “Learning which learning occurs whenever “Errors are is experiential and Schon (1990) endorses this detected and corrected, or when a match reflective – that is, by arguing that life-long between intentions and consequences is people can learn and learners practice ‘reflection produced for the first time”. He adds that create knowledge on the in action’ – the ability to there are two ways to correct errors. One is basis of their concrete reflect on one’s thinking to change behaviour. This kind of correction experience, through observing and reflecting while acting. He adds that requires ‘single-loop learning’ (concern on their experience, forming abstract phrases such as thinking with improving efficiency). The second concepts and generalisations, and testing on your feet, keeping your wits about you, is to change the underlying programme, the implications of these concepts in new and learning by doing suggest that we can or master programme. This, he refers to situations, which will lead to new corporate not only think about doing but also that as ‘double-loop learning’, which style is experience and, hence, the beginning of a we can think about doing something while more radical and challenges existing beliefs new cycle” actually doing it. Argyris supports this view and paradigms, and is concerned with by asserting that the learning skills of action effectiveness, including the effectiveness There are three essential features which must science are based on the skills of reflection of existing goals, assumptions and beliefs. be present in any legitimate AL programme: and inquiry. P and Q are therefore very Senge (1990) suggests five major pillars for • There must be action in the real clearly two mutually dependent parts of organisational learning as follows; world rather than in some simulation the total developmental process. • Personal mastery • The activity must be conducted in a • Surfacing mental models way which involves others, Based on the argument that for organisations • Building shared visions specifically other participants to survive in this very dynamic and volatile • Team learning, and who are working on the same economic environment, organisational • Systems thinking or quite different projects, and learning must be faster than the rate of Despite the various definitions a common • The emphasis must be upon learning, change of the environment, it is reasonable thread runs through – the challenge of not just the taking of action, and that to assume that the key to generative learning educating, mind, body and soul. One of is what differentiates action learning within an organisation is through working in the tried and tested learning methods from project team membership teams on real life business issues whether which encourages individual, team and they are within or from across particular organisational learning, and is therefore Reg Revans (1982) functions. This is precisely what AL provides. ideal for generating sustainable competitive proposed that learning advantage, is described below. (L) was a function of The corner-stones of AL are as follows: programme knowledge • Experiential learning ACTION LEARNING (AL) (P) and questioning • Creative problem solving AL is an approach pioneered by Reg Revans insight (Q), and that • Acquisition of relevant knowledge, and (1982), who defined it as a “means of effective learning is equal to the sum of • Co-learner support group development - intellectual, emotional and programme knowledge (P) and questioning physical, that requires its subject, through insight (Q), which produced the equation: It must be emphasised that AL is about responsible involvement in some real, complex attacking problems, not puzzles. A problem and stressful problem, to achieve intended has no existing solution, whereas a puzzle change sufficient to improve his observable has a solution that isn’t presently known, Learning = behaviour henceforth in the problem field”. for example a cross-word, how to measure It can be defined as a method by which Programme Knowledge costs, how to simplify delivery systems people learn best, with and from each + etc. Action learning poses questions from other as they attempt to identify and then Questioning Insight conditions of ignorance, risk and confusion, implement solutions to their problems or when nobody (including the experts) knows development issues. The heart of AL is the (L = P + Q) what to do next. It is not about finding “action learning set”, a diverse group that solutions to symptoms but rather about elicits the maximum amount of ‘creative identifying the root cause of the problem 16 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p16 8/16/12 7:35 PM
    • before solving it. Ackoff (1981) refers to this as “problem-dissolving”, (those that deal with the recall or recognition of knowledge and and emphasises that solutions derived through creative problems the development of intellectual abilities and skills). It does not solving are ‘optimising’ (as opposed to ‘satisficing’). balance the need to develop the affective domain (those describing The obvious benefits of AL are: changes in interest, attitude and values, and the development of • Learning about the job (personal mastery) appreciation) or the psychomotor domain (those dealing with • Creating alignment between the corporate culture and the manipulative, or motor, skills). strategic vision (‘ideological’ indoctrination) • Learning about the future (scenario planning) This is perhaps why it is often found that university graduates • Learning about the operating environment, supply chains are unable to integrate academic theory with practice. AL fills etc. (systemic thinking) this lacuna. In the corporate world the concept of competence • Challenging ingrained paradigms (avoiding ‘corporate focuses on what is expected of an employee at the workplace myopia’, generating and evaluating options) rather than on the learning process, and embodies the ability to • Developing an organisational memory (the ability to capture transfer and apply skills and knowledge to new situations and and store knowledge and expertise, i.e: intellectual property) environments. AL is a more holistic approach to executive learning that conceptualises the ability to draw in and integrate a variety Learning by doing may be sufficient, if you are attempting to acquire of knowledge, skills and attitudes to address realistic workplace a basic mechanical skill, like riding a bicycle. If you try often enough problems. It encourages individual, team and organisational learning and succeed often enough, you will eventually learn how to do it while educating mind, body and soul. efficiently whenever you wish. In the complex world of problem solving however, doing does not in itself, lead to learning. You will not learn anything about solving your next problem purely from the act of solving your present problem. For learning to take place you need to do more than just experience solving your problem effectively; you need to reflect on that experience in order to identify exactly what it is you have learned, internalise the lessons that you can learn from it, and pragmatically devise action plans, so that you can take effective action in the future in a new and different situation. That is what action learning does. That is how it varies from learning by doing. CONCLUSION PEOPLE POWER ACTION LEARNING CENTRE is the exclusive COGNITIVE THE HEAD THINKING Accredited Study Centre in Indonesia for the professional qualifications awarded by THE CHARTERED INSTITUTE OF MARKETING (CIM-UK @ and is commited to AFFECTIVE THE HEART FEELING the action learning paradigm of organisational learning. PSYCHOMOTOR THE HANDS DOING Dr. Suresh Marcandan One of the major criticisms of the conventional learning method Completed his DBA and MBA degrees through the action learning method of executive is that it does not encompass the three basic domains identified learning.PP-ALC could be contacted by email at: or or by phone at + 62 21 2555 8597 or + 62 878 8173 in Bloom’s (1956) taxonomy of educational objectives, and is too 1900. heavily weighted towards development of the cognitive domain | 17agustus-september_16august.indd p17 8/16/12 7:35 PM
    • BUSINESS AND ECONOMICS Health, Wealth and Happiness (please) Three things most of us strive for with different emphasis, and as the years add on it seems we value the happiness more, often leaving the health to good luck and wealth to whatever the past has built for us. It is however important to take active control of all three from as early in your life as you can, as many ‘wiser’ older men can testify. Health in Indonesia is not free, and is of variable quality often depending on the amount you can pay for the medical skills, everyone should endeavour to make provision for the major health issues that come along from time to tine – most of us will need to do that by taking out health care insurance. There is a plethora of product to choose from and some can be quite daunting in getting to understand exactly what you are covered for and what you are not – I would suggest that the most expensive is not necessarily the best, try and work out what it is you are trying to achieve with the cover and then work against that as your reason for choosing a particular policy. The 2012 Towers Watson Global Medical Trends Survey found that the cost of employee medical benefits in the region was expected to rise by 10.2 per cent this year, compared with 10.1 per cent in 2011. In terms of the top conditions that are driving claims, Asia-Pacific respondents cited cardiovascular illness, gastrointestinal disease and cancer/respiratory disease, which is in line with their global counterparts. Globally, almost three-quarters of respondents said that in five years, cancer would be a top claim driver. With the cost of treatment for a major illness, such as cancer, in excess of $100,000 it is essential that each of us actively review our strategy to cover such an event. Unfortunately it is not always possible to save a life, and so planning for the family and dependents should you die or have a critical illness that prevents you from continuing to bring in the wealth to them should be the cornerstone of any balanced life plan. There are a number of providers in the domestic market as well as international players, cover varies so it is important to make sure you know what you are trying to provide for in the event of a claim on the policy. This extends to business risk mitigation and Keyman assurance to ensure a business and its employees continue to operate in the event one of their key personnel dies or suffers a critical illness. With the cost of treatment for a major illness, such as cancer, in excess of $100,000 it is essential that each of us actively review our strategy to cover such an event. With no effective public emergency ambulance or trauma medical system in place in Indonesia it is key that individuals and companies look to mitigate as much of the risk they can for those crucial early minutes of a trauma. I wrote in the January 2011 Update edition about the private emergency medical service being built in Jakarta, and to be expanded across Indonesia, by Medic One – I am pleased to see that some Insurance providers are now looking to include this essential emergency medical service in their policies. For those readers not aware of this service please review at their website ( 18 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p18 8/16/12 7:35 PM
    • Wealth often becomes the driver for individuals, as it is said that both health and happiness require some wealth to fund them. It is increasingly important therefore to take good advice and to be clear on the outcomes you are aiming for when looking to take some of your hard earned cash and place into an investment. Many aspects of investments are tightly regulated, and that is a good thing, however some areas remain open to novice investors that can cause immense harm to your future wealth if you do not understand the risks associated with the activity, such as day trading. There are many investment products being pushed in the market from education fee savings plans to retirement and these range in value and return – often the prime attribute of the advisor explaining the product to an individual is their sales skills, not his financial acumen. Make sure your advisor and his firm are regulated in Indonesia so you have some redress if the outcomes do not meet your expectations. The regulatory framework in Indonesia is changing with new stronger enforcement coming into place, but what remains lacking is well- costed, transparent products for individuals to invest via. Key questions need to be asked before you invest in any scheme, make sure you ask for all the charges being levied and what the reduction in yield will be on the investment, particularly important is to know if there is any penalty for stopping investments. Often people are focused on the projected annual returns, however, this is usually the wrong thing to be focused on in isolation, more important is the volatility, the underlying risk of the structure invested via and accessibility to the funds once invested. There are very good, licensed and qualified advisory firms in Indonesia, always make sure you are happy with the advice given before making a decision. “Happiness is much more subjective and comes most often from within.” It is important therefore to make time to do things that make you happy every week, none of us know how long we have on this earth so looking back and regretting is not a productive plan. The term Wellness is growing in popularity, as people become more aware of ways to ensure they remain healthy and so visits to Doctors should now include at least an annual checkup Jeremy Kemp with a routine of exercise now an accepted strategy for a balanced lifestyle. Jeremy Kemp is an Executive Partner with the One Asia Group and has been based in Jakarta since 1994. One Asia Group [OAG] – a strategic business advi- Stress is necessary for life, but too much causes problems, sory group – provides a broad range of management often change is a trigger for increased stress as human advisory solutions to businesses in the region. OAG solutions include: strategic and operational consult- beings we do not function well with the unknown. As ing, business plan, sales and strategy development. it seems that the world economy is still in the grips of OAG acts as a bridge between businesses in various increasing change, this makes for opportunities as well regions that require professional management, trans- action support and the development of innovative as risks, the Chinese symbol for Crisis is made up of two solutions. characters, each one alone commonly accepted to represent “danger” and “opportunity.” Advisory – Financial Solutions - Procurement t | 19 br or.idagustus-september_16august.indd p19 8/16/12 7:35 PM
    • BUSINESS AND ECONOMICS Killer Sales Presentations Kill the competition not the audience! Microsoft believes that there are 300 million users of PowerPoint pay attention or not within the first few minutes. The killer slide giving one million presentations a day. The vast majority are is usually the last, or the penultimate slide. It tends to be a list with a blue backgrounds and bullet-points with white text, more of features, not explicit benefits, and if the audience has already commonly known as ‘Death by PowerPoint’. switched off, it has come too late. Usually presentations are too long and fail to hold the audience’s The charisma of the presenter to retain the audience’s attention attention. Why is this? Why does the audience switch off, or worse, is considered key, but in reality while the presenter believes they fall asleep? Is it purely because they are dull and boring? are firing key bullet points, they are only firing blanks. Of the thousands of presentations I have seen, nearly all of them Great presentations require a paradigm shift. When constructing are just: presentations, design and structure them from the audience’s • Decks of slides containing lists of bullet points and text perspective, never use bullets and text again, and always keep them • Written for the presenter’s benefit within 20-30 minutes’ duration with the last 5-7 minutes for Q&A. • A tick sheet or a cue card to make sure nothing is left out. The irony is that they are supposed to be for the benefit of Pictures, not words – Why? the audience! A picture paints a thousand words. Yet the world is preoccupied with populating PowerPoint with text, and Excel spreadsheets that Most presentations are also too long and lack structure. The nobody can read. Good presentations have images that help explain attention span of an audience is about 22 minutes and less the points, diagrams that bring clarity to arguments, and photographs more senior the audience and they will make their decision to that add value to the message. 20 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p20 8/16/12 7:35 PM
    • and it is called Visual Cognitive Dissonance - a complicated way of saying ‘great presentation.’ BAD PRESENTATIONS HAVE: • Clip Art Slides should not make sense until they are explained clearly. The manner in which a slide builds and is revealed can also engage the • Text so small that it cannot be read. audience. It is far more effective to present diagrams and pictures • Distracting and annoying effectsi.e. words that build or reveal elements on the click of a mouse, rather like flying in with the sound of a type-writer or storytelling, and are a massive boon to those devoted to ensuring screeching tyres. audiences receive and understand messages in presentations. Does this sound familiar? Change your perspective In summary, I believe that business presentations are about imparting knowledge, convincing people to share a point of view Picture not words – How? or make a buying decision, not making people laugh, although Think about the message and then think about how to draw a the odd piece of humour is sometimes welcomed. Presentations picture to help people understand this message. The basis of a need to be designed to get information across to the audience good slide starts on paper with a pencil and a rubber. without distracting or confusing them. Engage the audience, don’t bore them – Why? The most valuable advice I can give is this: stop writing Bored audiences struggle to stay awake. If they cannot pay presentations that cue the presenter. The point of a presentation is attention, they will not remember the points made. In that case, not to help the presenter get through the information, it is to help why bother presenting at all? the audience comprehend, and retain, the information conveyed. So when was the last time you saw a presentation that ticked all Engage the audience don’t bore them – How? the above boxes and had you fully engaged? Most presentations contain slides that are self-explanatory and, because the audience can read seven times faster that the presenter can articulate, the presenter becomes an irritation and a nuisance factor. Ray Bigger Slides should not make sense until they are explained by the Consults in Singapore and Indonesia. He will be travelling between both countries in 2012 consulting in his area of expertise. He may presenter. This forces the audience to listen to the presenter be contacted at: because they need to in order to understand precisely what is being communicated. This is the most powerful technique I know | 21agustus-september_16august.indd p21 8/16/12 7:35 PM
    • BUSINESS AND ECONOMICS Are You ? You’ve heard it a million times: “Success is The key to getting the most out of being say as thoughtfully as you would in an not just about what you know; it’s about a member is to take time with building interview. Also research your recruiters who you know.” And this is especially up relationships and helping others. The or interviewers. You can learn more about true if you are looking for your dream job. more you put in the more you will get out. their background to have an edge over Recommendations from peers as online other candidates. With the explosion of social media testimonials build trust and showcase networking sites, business networking strengths. When you think there is a 4. Check out the Jobs too has taken to the online platform in potential benefit in talking with someone Job listings on LinkedIn Jobs are growing leaps and bounds. It allows you to connect then you can always pick up the phone and rapidly: untill a year ago there were no job with far more people than you would perhaps arrange to meet. listings for Indonesia and currently there manage face to face and allows you to are over 50 high level jobs. You can search make contacts across the globe, thus, “Success is not just about using keywords, titles, companies and broadening your business opportunities locations to find the perfect opportunity from your local town to cities worldwide. what you know; it’s about from thousands of job listings for each The other advantage is 24/7 accessibility who you know.” category. Leverage the elements on your and freedom from having to be in a profile to help make yourself stand out. particular place at a particular time to Follow these four steps in creating your network online. online resume that showcases your skills 5. Leverage your connections and connects you to your dream job. Leverage your connections to help you find Online networking is NOT the same the right contacts at the company you are as online job search portals. Think 1. Profile yourself interested through introduction requests. Facebook for business. The world’s largest This is your resume online. Create an As Guy Kawasaki says ‘Find a connection at professional online network is LinkedIn. engaging profile with all the information the company who can get the inside scoop Introduced in the year 2003, LinkedIn that you would like to be available on what really matters for the job. You has more than 150 million members to a prospective employer. Put more can do this by searching for the company worldwide in over 140 industries, with information than you have on your resume. name; the results will show you who in your a million in Indonesia. Most members Everything you list increases your chances network connects you to the company.’ are professionals not looking to post of being found. Add your photograph to something on your Wall or date you. your profile. If you have examples of your Consider online business networking as Executives from all the Fortune 500 work such as presentations or videos complementary to face to face networking companies are on LinkedIn. The member online, link them to your profile. activities – it may not replace it however, profiles are based on their work skills, it provides further opportunities you certifications, interests, current and past 2. Get recommended might not otherwise find. You will need employment and recommendations. Recommendations are a great way to to participate intelligently and carefully to add quality, less biased content to your establish a business-like online presence LinkedIn has become a highly effective tool profile. Use email, phone calls and personal for yourself. Then connect with other for branding, networking, and job-seeking requests to your business associates human beings, off-line, usually to close if applied correctly and used with the right and employers to get testimonials on the deal. The more active you are and the intention. It is free to join with an option to your work and build your professional more people you engage with, the more upgrade your membership to include the credibility. More is better as head-hunters success you will have. Get involved to land facility to directly contact and search the look at this number, the quality of the your dream job. profiles of members of the whole network. recommendations, and of course who is The online learning centre on the site can giving them. support whether you are a new user, job seeker or an established entrepreneur 3. Do your research wanting to develop your business further. Do you know the companies you want to Any networking is building relationships work at? There is so much information Poonam Sagar with 3 fundamental stages of: to be found online about companies, Certified Project Management Professional, Technology their culture and staff. Interact actively and Online Media Consultant at PT Infotech Solutions ( - an international IT firm 1. Knowing, through online professional groups and empowering media broadcasters, content providers 2. Liking, and forums where they are in and participate. and distributors to optimize business processes with 3. Trusting. Listen, interact, and treat everything you integrated, scalable and optimized IT solutions. 22 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p22 8/16/12 7:35 PM
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    • BUSINESS AND ECONOMICS Renewable Energy in Indonesia It is commonly known that energy is playing Indonesias average power per capita renewable energy, the 2025 national primary one of the key roles in the economy. A consumption is just 61 watts per person, while energy mix is estimated at 17%, consisting of greater economy means bigger energy in Singapore is 816, Malaysia - 377, China - 389. 5% biofuel, 5% geothermal, biomass, nuclear, consumption. According to a January 2012 At the same time, the average growth of energy hydro, and wind power as well as liquefied coal statistic, electrification of Indonesia in 2011 consumption etween 2008 nd 2027 is predicted at 2%. The government will take measures to was 70,4%. Electrification is not evenly spread to be about 9.7% per annum. Currently, the increase the capacity of Micro Hydro power across the archipelago, but mostly focused on growth of energy production facilities is growing plants of 2,846 MW by 2025, Biomass of 180 Java where almost 99% of the population enjoy at only 4% per year. According to the numbers, MW by 2020, wind power of 970 MW by 2025, the supply of energy in comparison to NTT and Indonesia is consistently lagging behind in the solar of 870 MW by 2024, and nuclear power Papua where energy is only availabe to 28% of development of energy supply. to 4,200 MW by 2024. the population. Most of the public energy production and One of the ways to increase the energy supply Energy distribution in 2011 was allocated consumption is under the control of the State is proposed under the Master Plan issued by mostly to home usage (41%), followed by Electricity Company (PLN). At the same time not the Minister of Energy and Mineral Resources industry consumption (34,8%). Commercial all electricity is produced by PLN. Approximately (ESDM). In short, there are two types of Master consumption was responsible for 18% of the 17% of total energy in Indonesia is produced Plan; Rencana Umum Ketenagalistrikan total energy consumed, while public energy by Independent Power Producers (IPP) and Nasional (RUKN) and Rencana Umum consumption was only 6 %. Energy production Private Power Utilities (PPU). The difference Penyediaan Tenaga Listrik (RUPTL). Both in Indonesia was lead by steam power plants, between IPP and PPU is that IPP owns and are designed to run for a duration of 5 years. producing almost 40% of total energy, followed operates power plants, which energy is sold to The Master Plan for 2010-2014 focuses on by gas fired power plants at 27%. Hydropower the national grid, whereas energy produced by the fulfillment of the current programme plants produced only 12%, while gas only and the PPU plants can be sold directly to customers by developing new power facilities focusing diesel power plants produce 10% and 9.7 % through their own grid and distribution facilities. towards renewable energy. There are strong respectively. intentions to lower the usage of diesel power Based on the Presidential Decree, regarding the plants and change these with coal fired and Comparing with other industrial Asian countries national energy policy contribution of new and renewable energy power plants. 24 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p24 8/16/12 7:35 PM
    • According to RUPTL, business wise there are two main ways to participate in the energy business within Indonesia. The first is to build a mouth mine or coal fired power plant. The second way is to be involved in renewable energy production. Besides conventional types of energy production - such as coal and liquid fuel firing - Indonesia has great potential in the use of renewable sources such as geothermal and hydro power. If fully utilised, this could readily meet up to 25 percent of Indonesia’s energy needs. “PLN has to approve and buy energy from any renewable energy power plants, which are using biomass and biogas Power plants producing energy through the plant with a capacity of under 10 as fuel, have a higher price of 975 Rp./kWh, means of solar, wind turbines, biomass or MW without negotiation of price also multiplied by the location factor. At the geothermal plants are considered renewable. and approval from the Ministry.“ same time, power plants using waste as fuel are The development of new technology has priced Rp./1,050 kWh. All prices are for medium significantly decreased the cost of building The question now is how private companies voltage, while low voltage prices are 20-40% renewable energy power plants. Fixed prices can participate in the renewable energy higher. Geothermal energy is covered by the and an obligation by OLN to puchase renewable business of Indonesia. The latest regulation Ministerial Regulation 2/2011, which has set enrgy leads to very strong forces in attracting from Ministry of Energy and Mineral Resources the highest price for geothermal energy at 9,7 private investors. These factors are to play (No 4 / 2012) manages cooperation between US cents / kWh (apporimately 917 Rp./kWh) a key role in the attraction of investment private entities and PLN. By this regulation and business oportunities resuting in the PLN has to buy renewable energy produced PLN has to approve and buy energy from all development of Indonesias energy system. by private power plants at a fixed price. The renewable energy power plants that have a regulation covers small and middle scale capacity of under 10 MW without negotiation of Example: power plants with up to 10 MW capacities. price and approval from the Ministry. This is so – As an example, lets assume there is a10 MW The benchmark price for renewable energy is called fast track. In general, the signing process renewable energy (hydro, wind, solar) power 656 Rp./kWh multiplied by the location factor. will take about 4 to 6 months to complete. plant located somewhere in Sulawesi. Based Power plants with a capacity that exceed 10 on the benchmark price of 656 Rp. / kWh and The location factor shows the necessity of MW are covered by regulation ESDM 1/2006. the Sulawesi price factor of 1.3 the price will energy in a particular region. For Java and Bali This regulation allows independent renewable be 656x1.3 = 852.8 Rp/kWh or per month (where supply of energy is relatively good) the energy power producers to sell energy to PLN. 6,140,160,000Rp (approximately 660,000 USD). factor is 1, while in Maluku and Papua where The price of energy is determined by an open As an added incentive, there are always carbon there is a lack of energy the factor is 1.5. Power auction or direct appointment. credits to boost that income !? Grigoriy Ryabtsev Director PT. Serdang Biopower PT Serdang Biopower, subsidiary of PT. Xoma Power Nusantara is developing a 22 MW renewable energy power plant in Serdang Bedagai Regency, North Sumatera Province. The companys main focus is on renewable, clean energy projects in Indonesia. | 25agustus-september_16august.indd p25 8/16/12 7:35 PM
    • INDONESIAN BUSINESS NEWS Angel Investing for Emerging Entrepreneurs in Indonesia Entrepreneurship has now become one of the strong indicators of economic growth in developing countries and emerging economies, and Indonesia is certainly a country of entrepreneurs, be it by choice or by condition. Whilst there are no standard definitions for entrepreneurship, an entrepreneur is somebody who has an idea of starting and growing a business. They distinguish themselves with their ambitions and achievements. Entrepreneurs have ideas and ambitions, although they may lack the resources, they have the willingness and hunger to succeed and make things happen, and for that, they put their mind and heart into action. One of the best ways to promote entrepreneurship, particularly GEPI is part of a wider initiative called the Global emerging entrepreneurs in Indonesia is through entrepreneurship Entrepreneurship Program (GEP), which grew incubation, mentorship and angel investing. With this, I would from an initiative of President Obama and it like share a little bit about some of the angel investing activities is now a core program at the US Department in Indonesia which was initiated by the Global Entrepreneurship of State guided by Secretary of State Hillary R. Program Indonesia (GEPI) – an entrepreneurial organisation Clinton, to promote entrepreneurship as a key which aims to catalyse Indonesia’s entrepreneurship strategies pillar of economic development among developing countries. by working in partnership with existing programmes and linking aspiring Indonesian entrepreneurs to global developments and GEPI is an umbrella organisation that aims to work in partnership investment prospects. with the many organisations and companies focused on developing 26 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p26 8/16/12 7:35 PM
    • entrepreneurship in Indonesia to do a number of initiatives, and angel investing. including: By creating this more friendly and conducive environment, this will create more entrepreneurs, creating wealth and employment 1) Raising the awareness of entrepreneurship and innovation in Indonesia. "Since its inception, GEPI has been committed 2) Working together to provide the right ecosystem for emerging entrepreneurs. to enhance a conducive entrepreneurial 3) Working together with entrepreneurship groups and the environment and to facilitate Indonesian Government of Indonesia to improve the enabling environment entrepreneurs" for entrepreneurship. 4) Working together to ensure that emerging entrepreneurs can have access to finance and domestic as well as international angel as well as economic growth. It will also empower private sectors investors. which serve as the back-bone of the nation. GEPI would be able 5) Helping to facilitate entrepreneurs and innovators to go regional to facilitate angel investing in Indonesia in; knowledge sharing, and global. providing the required materials, providing experience as well as sharing the know-hows so that angel investing in its many stages Since its inception, GEPI has been committed to enhance a will progress, and ultimately flourish in Indonesia. conducive entrepreneurial environment and to facilitate Indonesian entrepreneurs, where soon, GEPI will have incubator facilities and For further information on GEPI, will be launching the Angel Investor Network Indonesia (ANGIN) please visit: or and the ANGIN fund, which is aimed to be a catalyst and start-up fund for selected entrepreneurial ventures. Since angel investment is at its infancy stage in Indonesia, it therefore needs to have proper mentorship and training programme, proper structure and good governance in place, have transparency and good-will amongst all parties, as after all, the confidence level will increase and trust could be established between angel investors and entrepreneurs. JAY A. SINGGIH, B.A. (Economics) As stated, angel investing is at its infancy and it is facing some Mergers & Acquisitions Advisory / Transaction Advisory Services at ERNST & YOUNG , Chairman of Young Professionals Group at British Chamber of Commerce in Indonesia obstacles. These, I believe, GEPI will be able to advocate in the , Depa, DBS Mentor at Durham Business School UK , B.A. in Economics from Durham near future so that there wil be less red-tape and bureaucracy, University UK SINGGIH.JAY@GOOGLEMAIL.COM as well as an introduction of investment-friendly policies such as tax incentives and simplified legal structures for entrepreneurship | 27agustus-september_16august.indd p27 8/16/12 7:35 PM
    • INDONESIAN BUSINESS NEWS Trade and Investment Opportunities for Indonesia in Special Economic Zones of IndiA On 25 July 2012, the Indonesian Chamber of Commerce and Industry (KADIN) and the Embassy of India in Indonesia hosted a delegation visit from the Government of India which comprised of the Indian Ministry of Commerce and Industry, as well as the Export Promotion Council for Export-Oriented Units (EOUs) and Special Economic Zones (SEZs) of India (EPCES), with the aim of attracting investments from Indonesia into India’s SEZs. There were several presentations on Investment Opportunities in SEZs, Setting-up SEZs in India, as well as SEZs in IT Products and Services. Presentations also included Key Success Factors of SEZs and Effects, Tax Benefits, Growth as well as Successful Case Studies. EPCES was set up in 2003 by the Indian Ministry of Commerce and Industry to boost the export promotional needs of EOUs, SEZ units and SEZ developers. EPCES is an integrated multi-product framework specific to the Export Promotion Council and represents the interests of 6000 operational EOUs and SEZs across India. The Indian Government has so far formally approved 587 SEZs, out of which 380 SEZs have been notified and 154 SEZs already operation. 7 of these are run by the Central Government and 12 by the State Government. Exports from the EOU/SEZ sector in India during the year 2011-2012 contributed to approximately 30% of India’s national exports, out of which, exports from SEZs were to the extent of USD 69 billion, representing a growth of 15.38% from the previous year. This sector provides employment to 1.1 million of India’s population and covers major industrial sectors such as textiles, garments and yarn, gem and jewellery, leather goods, food and agro products, electronics and software, pharmaceuticals and chemicals, engineering, granites and other stones, plastic and rubber goods and many others. In addition, under the SEZ framework, there are also investment opportunities for developing units in SEZs in India. The delegation visit also comprised of businesses representing various sectors such as food processing, furniture and accessories, IT, software solutions, plantation industry, handicraft, pharmaceuticals, biotechnology, stainless steel, chemicals, coffee plantations, machineries and others. The objectives of the visit were; to disseminate information on the concept of the SEZ scheme of India 28 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p28 8/16/12 7:35 PM
    • by projecting the facilities and incentives available in SEZs in India and inviting Indonesian investments; to provide an opportunity to EOUs, SEZ units and SEZ developers of India for interaction with the business community, buyers and investors of Indonesia; to increase trade and economic cooperation between businesses and exporters of India and Indonesia; and the opportunity to project products and services available at the EOUs and SEZs in India as well as seeking partnerships. "Exports from the EOU/SEZ sector in India during the year 2011-2012 contributed to approximately 30% of India’s national exports" After visiting Jakarta, the delegation visited and did a study on the Jakartan Industrial Estate - Pulogadung, after which the delegation also visited the Batam Indonesia Free Zone Authority (BIFZA). During this visit, there was a Joint consultative committee between Santacruz Electronics Export Processing Zone – Special Economic Zone (SEEPZ SEZ) and BIFZA, so that both countries could jointly identify the opportunities and potential that exists in their countries for mutual cooperation and benefit. This meeting took place in pursuance of the MoU between the two organisations signed during the visit of Indonesian President Susilo Bambang Yudhoyono to India in January 2011. Indian Ambassador to Indonesia, H.E. Gurjit JAY A. SINGGIH, B.A. (Economics) Mergers & Acquisitions Advisory / Transaction Advisory Services at ERNST & YOUNG , Singh mentioned that bilateral trade between India and Indonesia Chairman of Young Professionals Group at British Chamber of Commerce in Indonesia reached USD 17.65 billion in 2011, and he is positive that bilateral , Department Chairman for Europe & US Relations at Indonesia Young Entrepreneurs Association Jakarta (BPD HIPMI JAYA), Executive Committee Member of the Indonesian visits of business delegations could further increase trade and Chamber of Commerce and Industry (KADIN INDONESIA), President of Durham investments between the two countries. University – Indonesia Alumni Association, DBS Mentor at Durham Business School UK , B.A. in Economics from Durham University UK SINGGIH.JAY@GOOGLEMAIL.COM | 29agustus-september_16august.indd p29 8/16/12 7:35 PM
    • BANKING & FINANCE HSBCS Global Connections Report Global Outlook Annual growth rates year on year, World 2012-2026 250 World trade is forecast to grow by 98% to 2026 against previous forecast of 99% 200 -indexed to Jan 2011 Over the 15 year period April 2012 to April 2026 growth is forecast at 88%, steady 150 from Feb 2011 forecast of 86% Emerging market trade growth to outpace 100 developed world, leading to an eventual rebalancing of trade flows 50 Companies to increase trade activity by 4.7% annually, with growth weak at first 0 before accelerating 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Trade Confidence Index positive; 9 of World1 06.225 109.9591 12.949 117.0591 20.017 124.5211 37.261 152.98 155.5111 60.139 164.8261 72.727 182.2371 90.986 197.959 the 10 most confident countries from emerging markets Global trade overview Emerging markets to lead trade growth Despite the ongoing difficulties in the global 6.00% economy, notably in the Euro Area, global CAGR 2012-2016 trade is forecast to grow at a robust rate of CAGR 2012-2026 4.7% annually over the next 15 years, giving 5.00% a total rise in trade over that period of 98%. This figure has been indexed to January 4.00% 2011, and remains relatively flat from the previously forecasted figure of 99% growth indexed to Jan 2011. However, it should 3.00% be noted that the recent deterioration in economic and financial conditions would, if sustained, dampen this forecast as it was 2.00% based on parameter data that was collected up to the middle of April. Even this forecast reflects the current uncertainty to a degree, 1.00% with the near term projection over the next five years showing the weakest growth, at 3.7%, before an acceleration to 5.9% in the 0.00% Developed Developed Emerging Emerging five years to 2021. What the forecast does Import Export Import Export show is that the underlying forces driving global trade forward remain very much intact, led by Emerging Market countries. are showing much slower overall growth, Share of world trade Those countries continue to outpace the with Europe particularly weak. Increased share of trade developed world in terms of speed of trade Partly as a result the forecast predicts some The Emerging Markets countries are growth, with Poland, India and the Czech re-balancing of global trade, with the rate of forecast to see the biggest gains in trade, Republic expected to show export growth growth of US exports expected to be faster with Latin America up by 6% and Asia by of around 5.5% while Brazil and India are than that of its imports whilst in Germany, 5.4% to 2016. China, despite its increasing forecast to see import growth of over 7%. China, Brazil and India, we expect to see size, is still forecast to see strong growth in Developed nations continue to grow in the rate of growth of imports exceed that both imports and exports of 5.1% and 4.7% places, and are clearly still represent the of their exports. to 20 16. India sees the fastest growth in largest share of global trade by volume, but exports of 5.4% and with imports to grow 30 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p30 8/16/12 7:35 PM
    • Note: (1) The Overall Global Index is the unweighted average of the 20 markets listed above 7.2%. Poland and the Czech Republic are Market nations seeing faster import growth. international businesses, suggests the the two other fastest growing exporters, Emerging Market nations are also becoming short-term outlook for the global economy while Brazil and Saudi Arabia are 1st and more dominant in global trade, with China is positive. Almost three quarters (71%) of 3rd for import growth. forecast to be the dominant trade nations by respondents believe it will remain stable or 2026. Equally the trade corridors between grow in the next six months with an Index Decreased share of trade those nations are growing in strength, most score of 113, above the neutral score of 100. The weakest trade growth is expected in notably in Asia, but also between South Europe at just 2.1%. France, the UK and Italy East Asia, India and Latin America. Echoing the Trade Forecast, the Index finds all expected to see trade growth of 2.5% or that emerging markets remain considerably less Spain sees very weak growth in imports Global Trade Confidence Index more confident about international of just 1.3%, but exports should grow by The Trade Confidence Index, a study trading prospects than their developed 3.3%. A similar re-balancing is expected in of current sentiment amongst 5,800 counterparts. Canada is the only western the US with exports growth of 3.5% and international businesses, suggests the nation in the top 10 most confident nations, imports of just 1.6%. Japan broadly holds short-term outlook for the global economy which features countries from Latin America, its own with exports to grow 2.9% and is positive. Almost three quarters (71%) of the Middle East and Asia. Turkey has grown imports by 2.7%. respondents believe it will remain stable or in confidence most significantly over the grow in the next six months with an Index last six months (up 13 points) and now Macroeconomic Trends score of 113, above the neutral score of 100. stands alongside India as one of the most The spillover from turmoil in Europe is the confident countries studied. Indonesian biggest concern in the forecast Echoing the Trade Forecast, the Index finds and Saudi Arabian respondents are most Although the forecast is more optimistic that emerging markets remain considerably assured overall. than four months ago, the recent rapid more confident about international deterioration in economic conditions and trading prospects than their developed Trade Corridors markets highlighted by the recent poor counterparts. Canada is the only western Global Overview PMI surveys, suggests we have to treat nation in the top 10 most confident nations, As noted above we are seeing strong growth the improvement in the forecast with which features countries from Latin America, in Emerging Market trade. Interestingly some caution. That is particularly the case the Middle East and Asia. Turkey has grown trade in Asia is predominantly intra-regional now the weakness in the data appears to in confidence most significantly over the with 10 of the top 15 trade partners be reaching places like India, China and last six months (up 13 points) and now coming from the region, whereas the Latin Australia. The forecast is most vulnerable stands alongside India as one of the most American trade is predominantly extra- in the near term and there would be scope confident countries studied. Indonesian regional with 9 of the top 15 from outside for the 3.7% forecast over the first five and Saudi Arabian respondents are most the region. We are also seeing growing trade years to be revised lower should the turmoil assured overall. corridors between those two regions. The continue. Nevertheless, there are some fastest growing export partners for Asia are trends which will likely continue despite this. Global Trade Confidence Index Brazil and Panama, with Mexico also in the First and foremost the re-balancing of global The Trade Confidence Index, a study top seven, while for Latin America the top trade with the big surplus and Emerging of current sentiment amongst 5,800 seven, while for Latin America India is the | 31agustus-september_16august.indd p31 8/16/12 7:35 PM
    • BANKING & FINANCE fastest growing trade partner, with China, They are followed by Saudi Arabia at 6.4%, from Emerging Markets. Asian and Latin Thailand, Indonesia and Singapore in the with Indonesia and the UAE both better American imports of Medicines forecast top 5 of import partners. than 5.5%. Indonesia is also expected to see to rise by around 7% and Latin American the 10th fastest growth in exports. Poland imports of Biopharma by more than 11%. Current trade corridors and the Czech Republic are expected to see The US, Germany, China and France are the 1st and 3rd fastest growth in exports Current Trade Sectors the top four trading nations globally and at 5.6% and 5.4% Poland is also the 6th Non-Crude Petroleum is the other top three are expected to remain that way over fastest growing importer with a similar sector And care of the assumed growth in the forecast period, although Japan is growth rate. Malaysia also shows up in the world economy is expected to see solid growth. Again this is led by emerging market projected to overtake France on exports the top 10 growing markets both imports countries, with Brazil’s non-crude imports to become 4th in the world by 2016. China and exports, while Singapore is the 4th forecast to rise by 10.7% and China’s by becomes the dominant trade nation by fastest growing exporter and just makes 6.8% to 2016. Not surprisingly MENA plays some distance by the end of the forecast the top 15 for import growth. a key role in this with Crude Oil exports period, as its strong growth trajectory will projected to rise by 4.3%, Gas by 5.7% and result in it overtaking the US as the world’s Trade Sectors Non-Crude Oil by 4.1% by 2026. Outside of second largest importer after Germany, and Global Overview the top three sectors, computers are still strengthening its position as the world’s Cars, Non-Crude Oil and Medicaments are expected to see solid growth at around 5%. largest exporter by 2026. India is also the sectors that dominate world trade. forecast to make considerable progress Auto trade is a good proxy for the speed Emerging Trade Sectors rising to be the 10th largest importer and at which economies are developing and it The fastest growing secto rs are expected to be Printing, Telecom Equipment and 12th largest exporter. Russia also becomes is no surprise to see emerging countries Gold with growth of around 8-9%. Growth a large import destination rising to be the leading the growth. Brazil is expected to in Telecom Equipment is again Emerging 9th largest in the world. Spain shows one see car imports rise by more than 13% Market driven with China expected to see of the largest downward moves as it goes over the next five years, with exports up growth of around 11% in exports and 12% from the 11th to 14th largest importer, but 4.9%. Similarly Chinese imports of cars in imports over the next five years. Brazil it remains the 13th largest exporter. are expected to rise by nearly 12%, while and India are expected to see growth in exports of cars from India should grow by imports of 14.7% and 11.4%. Shipping is Emerging trade corridors nearly 13%. Imports of Medicaments are also expected to be a fast growing import Brazil and India are forecast to see the expected to grow by 5.3% and Biopharma sector globally at around 6.8%, led by South fastest import growth globally over the by 6.6%. Much of this trade emanates from Korea, Japan and China. next five years at 7.7% and 7.2% respectively. the US and Europe, but the demand is All figures shown are 2012-2016 CAGR 32 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p32 8/16/12 7:35 PM
    • Alan Keir Group Managing Director and Global Head HSBC Commercial Banking “Our latest Global Connections report has shown the key role that ‘emerging’ markets are playing within the global economy and their growing position as a lynchpin in global trade. Although still known as ‘emerging’, these markets have firmly established themselves as the long term driving force behind global growth. With a tipping point in the balance of trade power predicted we will soon see that imports will grow faster than exports in ‘emerging’ markets. This will signify a shift where traditionally export driven countries will drive developed and emerging market growth as their own trade demands become more powerful. Similarly, the short term snapshot provided by our Trade Confidence Index shows that traders in emerging markets are reporting significantly higher levels of confidence, with seven out of ten of the top countries in the index currently noted as emerging. These insights will help businesses to understand how demand patterns and optimism are changing and how these seismic shifts are re-balancing the global economy. “The message for international businesses, small or large, is to look at the bigger picture. Those in developed nations have to look beyond their borders at the opportunities in rapidly growing markets, while emerging market businesses need to access the growth of these new trade powerhouses closer to home.” Notes on the data: The forecast predictions in this document have been provided by The economic and business narratives stem from a broader documentary Delta Economics, and should not to be construed as HSBC advice or guidance. The research search that includes material from National Statistical Offices, the World Bank was commissioned by HSBC as part of a marketing campaign for HSBC Commercial Banking. and International Monetary Fund, economic blogs, the Economist Intelligence The findings are based on Delta Economics’ interpretation of data which has been sourced Unit, Bloomberg, the Financial Times and other professional and financial from publicly available sources. services news websites. This forecast predicts how trade is going to develop over the next five, 10 and 15 years, based on data compiled by Delta Economics, an independent research house. It forecasts About Delta Economics: overall trade growth (exports, imports and total trade) globally, in global regions, and Delta Economics is a leading research-led economics consultancyfounded in individual countries. With data from over 200 countries, the report covers the top 50 sectors 2006 by Dr Rebecca Harding, a trade economist. Delta specializes in economic for exports and imports for 19 selected countries. The Forecast has a unique approach to growth and trade modelling/forecasting. It also has extensive expertise in understanding the drivers of trade from a business perspective, informed by: trade trends, quantitative and qualitative market research, market intelligence and thought macroeconomic and market influences trade, and business environment influences on leadership with a specialism in the entrepreneurial and small and medium trade (including regulation, demographics, access to capital and finance). This research sized business sector. has been commissioned by HSBC and undertaken by Delta Economics. HSBC Commercial Banking HSBC Commercial Banking serves more than 3.5 million customers, from small enterprises to large multinationals, in over 60 developed and emerging markets around the world. Whether it is working capital, trade finance or payments and cash management solutions, we provide the tools and expertise that businesses need to thrive. With a heritage stretching back nearly 150 years, and a network covering three quarters of global commerce, we make HSBC the world’s leading trade and business bank. For more information see Designed and produced by HSBC Global Publishing Services. 120621_53010 For more enquiries, call: Suwandy : (021) 524 6348 Delia Melissa : (021) 524 6346 Nuraini Lubis : (021) 524 6531 Email : For other trade analysis reports, please click Issued by The Hongkong and Shanghai Banking Corporation Limited. HSBC is one of the world’s largest banking and financial services organisations. With around 7,200 offices in both established and faster-growing markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and ultimately helping people to fulfill their hopes and realise their ambitions. We serve around 89 million customers through our four global businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 85 countries and territories in 6 geographical areas: Europe, Asia Pacific region, the Middle East, Africa, North America and Latin America. Our aim is to be acknowledged as the world’s leading international bank. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by over 220,000 shareholders in 132 countries and territories. | 33agustus-september_16august.indd p33 8/16/12 7:35 PM
    • BANKING & FINANCE Indonesia – Investment-grade euphoria fades Mood swing investors fleeing the domestic capital markets. To prevent a full- The euphoria that followed Indonesia’s rating upgrades to blown currency crisis, Bank Indonesia (BI) – which had previously investment grade by Fitch Ratings in December 2011 and Moody’s exercised limited FX intervention and applied strong moral suasion in January 2012 has largely faded. Since then, parliament has to onshore banks to maintain IDR stability – was compelled to vetoed the government’s plan to hike subsidised fuel prices by intervene more aggressively. BI ran down its FX reserves to 111.5 33% to cap the fiscal deficit, calling into question the government’s billion at end-May from USD 116.4 billion in April. To beef up the policy credibility. Indonesia’s current account deficit swelled reserves, BI introduced USD term deposits in June to attract some to USD 2.9 billion in Q1-2012 from USD 1.6 billion in Q4-2011 of the estimated USD 4-5 billion of funds placed by Indonesian and a surplus in the first three quarters of 2011, pressuring the banks in the offshore interbank market, which lack sufficient Indonesian rupiah (IDR). The global slowdown has affected export counterparty limits to be placed onshore. On the fiscal side, the volumes and prices, while Indonesia’s rapid GDP growth has government has secured a USD 5.5 billion off-budget standby kept import growth high. On the policy front, following a cabinet facility from the World Bank, the Asian Development Bank and reshuffle last October, there have been concerns about trade Japan, to be disbursed in case funding in the bond market becomes protectionism and a lack of policy continuity; the scrapping of too costly (the government secured a similar facility during the the plan to tax coal exports is an example. Finally, while Indonesia global crisis in 2008 and did not use it). While BI has sufficient FX is relatively insulated from the global slowdown, GDP growth reserves to cover potential future capital flight, its ability to limit slowed modestly to 6.3% in Q1-2012 from 6.5% in Q4-2011. We IDR volatility, and the government’s success in minimising the expect growth to moderate to 6.0% in 2012 from 6.5% in 2011. impact of the global slowdown, will depend on the severity of Considering the risk of slowing GDP growth in Europe and the US the euro-area crisis in H2-2012. in 2013, we marginally revise our forecast for Indonesia’s GDP growth in 2013 to 6.3% (from initially 6.5%). We revise our inflation call Energy prices continue to fall given slowing global demand. The The euro-area crisis has further weakened sentiment towards average Indonesian crude price (ICP) fell to USD 116.9/barrel (bbl) Indonesia, with exporters hoarding US dollars and portfolio on 11 June from USD 128.1/bbl in April. By end-May, ICP’s rolling 34 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p34 8/16/12 7:35 PM
    • six-month average was at USD 119.2/bbl, below the USD 120.75/ growth and boost the current account surplus. We still expect bbl level set by parliament to trigger subsidised fuel-price hikes. Indonesia’s balance-of-payments surplus to rise to USD 14.9 billion Given the recent decline in ICP prices, we no longer expect the in 2012 from USD 13.9 billion in 2011 (accounting for errors and government to hike subsidised fuel prices this year. As such, we omissions). The capital and financial accounts are set to recover lower our end-2012 inflation forecast to 4.5% from 6.5%; our end- in H2 as global risk aversion recedes and as Indonesian bond and 2013 forecast of 5.0% remains unchanged. We lower our forecasts equity prices rebound from significant corrections in H1. for annual average inflation to 4.2% for 2012 (from 5.2%) and 4.8% for 2013 (from 5.7%). We remain bearish on the IDR The IDR has under-performed other Asia ex-Japan (AXJ) currencies Although the government is unlikely to hike subsidised fuel prices year-to-date due to illiquidity in the onshore FX market and this year, the Ministry of Finance has reiterated its commitment deteriorating external balances. There are early signs that to capping the central government budget deficit at 2.2% of GDP. onshore FX-market liquidity is improving, while our transaction It plans to achieve this by cutting IDR 18.9 trillion of expenditure flows suggest that custodian clients are long USD-IDR. For now, we allocated to ministries and government agencies and reallocating remain Underweight the IDR short-term given lingering concerns budgeted funds. Assuming ICP prices continue to decline, and about FX policy and flow dynamics. We have a medium-term given the government’s track record of slow spending and strong overweight recommendation on the IDR given Indonesia’s strong revenue generation, we project this year’s budget deficit at only economic fundamentals. 1.5% of GDP. “The Ministry of Finance has reiterated its commitment to capping the central government budget deficit at 2.2% of GDP. “ Balance of payments to remain in surplus Depressed global commodity prices will affect the trade balance, Fauzi Ichsan as Indonesia is a net energy exporter. That said, slower GDP growth and lower prices of imported capital goods and raw materials (around 92% of imports) should keep the current account in surplus. We forecast a USD 1bn surplus in 2012, down from USD Eric Alexander Sugandi 2.1 billion in 2011. If the euro-area crisis worsens and the region’s recession deepens, Indonesia’s GDP growth is likely to fall towards 5% in 2012. Past experience suggests that this would slow import | 35agustus-september_16august.indd p35 8/16/12 7:35 PM
    • BANKING & FINANCE PERSONAL FINANCE ARE HIGH INVESTMENT RETURNS STILL POSSIBLE TODAY? When discussing investment options some people tell me they are looking for 10% per annum or more but they want their capital to be absolutely safe and accessible at all times. In fact there is no such investment, although there are indeed many that will pay 10% or more. Some have guarantees but there is invariably a condition that ties up the investment for several years. As for the guarantee itself, it is only as good as the institution or country providing it. At the height of the banking crisis in 2008 the Irish government issued a blanket guarantee on all bank deposits to stem the flight of money from troubled Irish banks. But once it was realised the government was also running out of money it was quickly followed by a qualifying statement to the effect that the guarantee was subject to the country’s ability to honour it. If we want to ‘play safe’ how much should we expect? Bank deposits are close to ‘risk free’ but if your money is in US Dollars, Pounds Sterling or Euro you will be lucky to earn 1% per annum in the current low interest rate environment. Even then, there is a small risk of the bank failing so it would be wise to hold accounts with several banks if savings exceed the limits of government guarantees. If you deposit funds in Rupiah, you can expect a higher return, currently 5% or more, but if you are converting from a major currency you have to watch out for currency movements. to governments knowing they will get back less in real terms. But for many this is prudent money management. Take the case Government Bonds – your choice of return: 1.3% to 27.5% of pension schemes for example. If a scheme is investing funds Government bonds are considered to be among the safest of for thousands of employees, it has to be certain it can meet its investments. Why? Because governments can always print money obligations to pay out pensions in full as they are due. It is not the to meet their obligations. The exception is Europe where the scheme managers’ concern if inflation has eroded the purchasing currency is managed by the European Central Bank. Countries power. While they can address this aspect by investing part of the such as Greece and Spain would like to print money to meet their fund elsewhere for the long term they must have access to enough debt obligations but stronger countries like Germany are resisting liquid funds to meet their short and medium term obligations. as the move would be damaging to their economies. Consequently This is where bonds play a major role and why zero real returns we have an absurd situation where, at the time of writing, you are acceptable. could invest in Euro bonds in Germany and earn only 1.3% pa or in Spain which will pay you a handsome 6.9%. If you buy the bonds What returns are available if we accept some risk? from Greece, you will earn a whopping 27.5%! The fact is the sky is the limit – if risk is no object. But as for realistic expectations let’s review what opportunities exist. So why would anyone wish to invest in German bonds for a miserable 1.3%? The answer is investors are confident they will get Corporate bonds: Companies are prepared to offer higher yields their money back. On the other hand, where Greece is concerned than governments in order to attract capital, returns of 5% to 8% and to a lesser degree Spain, there is a risk that the countries will pa would be typical. Bond mutual funds offer easy access but keep default and their money will be lost. Investors also feel safe with in mind capital values can fluctuate. US, British, Japanese and Swiss bonds, all of which are currently yielding less than 1.5% per annum for a 10 year term. Equities: These provided the foundation of the modern industrialised world. Potential returns are not easy to quantify as there are so many different markets and variables but, over But 1.5% is less than the rate of inflation the long term an investment in a wide range of global stocks Correct. And that means investors are actually lending their money should produce returns in excess of cash and bonds since stocks 36 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p36 8/16/12 7:35 PM
    • can generate capital gains as well as regular dividends. 6% to 10% pa over time would be a reasonable expectation but returns can be very erratic. The past 12 years have not been good for the major markets. Real Estate: In the right location and at the right time an investment in real estate should produce a return comparable or superior to equities. But while stocks are highly liquid a real estate investment cannot be turned easily into cash and can be a serious burden should you need to sell at the wrong time. Still, if time and liquidity is not an issue, you could invest in a buy-to-let property in London for example and reasonably expect an annual yield of between 5% and 8%. The icing on the cake would come many years down the line with a possible capital gain when you come to sell it. What investments can produce regular positive returns? the profits when the project is completed or the company is sold The last few years have produced sparse returns for investors. Lack off. In one case an investor can help fund a project initiated by of real returns in the money markets, falling property values in the the British Government, often initially for military purposes, but west and the erratic performance of stock markets have led many with commercial potential. Past examples of commercial spin-offs to seek investments that produce consistently positive returns. include microwave ovens, video recorders and GPS systems. In Ironically, the banking crisis of 2008 has provided opportunities successful cases returns to investors have exceeded 15 times the for small investors to step into the role of bankers and invest in amount invested. With an average time-frame of five years that funds that lend to industries and groups. Many of these funds, would amount to an annual return of 300%. Is there a downside? while based offshore for tax efficiency, are UK – focused. Yes, if the project is not commercial, you lose all your money! Much the same as if you invest in your own business. "Government bonds are So what return should an ordinary investor be seeking? considered to be among the It depends on many individual factors. But for a person with a steady income and good future prospects a sensible strategy safest of investments." would be a blend of the various options. Having cash reserves is important, even if real returns are zero. But once reserves are in place it is time to invest in assets which will produce real returns. To manage the risk of those assets the key is diversification. If you Examples are agricultural lending, mortgage lending, student can consistently achieve an annual return of 5% to 10% above accommodation, litigation funding and even the funding of inflation, you are doing well. If you are aiming for returns of 300% garbage recycling plants. Current returns are in the region of 6% pa, by all means do so, but only with surplus money you don’t to 12% pa although investments in litigation funding can return mind losing! 20% or more if the fund offers a share in case winnings. What are the risks of these funds? The biggest risk is liquidity. Your investment may be tied up for two or three years or longer or may be subject to an early redemption penalty. In all cases if there were a serious run on the funds, they could be ‘gated’ until assets are gradually sold. Nevertheless, a long term investor would be wise to consider these alternative funds as part of a diverse portfolio. Indonesia Where are the really high returns? Colin Bloodworth This would be the domain of private equity. Not so long ago this has worked as a financial consultant in Indonesia since 1992. He is Director of PPI field would be open to only the ultra-wealthy. Private equity can Indonesia and can be contacted at or +62 21 take a number of forms but it generally involves investing in a 3004 8024 project or perhaps a distressed company with a view to sharing in | 37agustus-september_16august.indd p37 8/16/12 7:35 PM
    • SECTOR GROUP - fffa Imports of Fruit & Vegetables into Indonesia An update on new regulations Hatta). • In line with the new regulations, Indonesia have advised trading partners that the seaport of Tanjung Priok in Jakarta will no longer be a port of entry for all fresh fruits, fruity vegetables and layered tuber vegetables • In June, the Agriculture Ministrys Quarantine Agency announced preferential treatment to signatories of the Mutual Recognition Agreement (MRA) • Under the MRA, horticulture imports are already exempt from complete-checking procedures, such as the supervision per consignment and sampling for laboratory testing • As signatories of the MRA, produce from Australia, Canada, New Zealand and the US is still able to enter the local market through the countrys biggest trading gateway - the port at Tanjung Priok • This was postponed to 19th June by Permentan 15/2012 • On June 19th, there was another new Regulation, 42/2012 which replaced Whereas a decade ago imported fresh fruit products to prevent any negative impact on #89/2011 and #42/2012; and which and vegetables were a luxury few could health, as well as to protect local products," outlines 42 items which are forbidden afford, today we are spoilt for choice, with Mr. Saleh said. to enter via Tanjung Priok. We assume our diets diversifying thanks to a greater this means no residue tests, although variety of quality fresh produce available. Here is a summary of the most recent we are not sure about this In 2006 Indonesia imported US$600 million Government Regulations relating to the worth of horticulture (fruit & vegetables) import of fresh fruit and vegetables into This explains why some items from China products, rising to $1.7 billion in 2011. Indonesia. are still permitted to enter Indonesia via Tanjung Priok - because they are not included In an effort to protect domestic producers of 1. Number 88 (Dec 2011) - Ministry of in the list of #42 fruit and vegetables as well as the potential Agriculture – Food Safety Control dangers of unsafe food for consumers, the •Food Safety Control for Import and 3. Number 90 (Dec 2011) - Ministry of Indonesian government is tightening their Export of the fresh Food Originating Agriculture –Restriction of Ports control on the imports of several types of from Plants • Similar to Number 89, but applying to goods, especially fruit and vegetables. Deddy •This regulation mandates testing for Tuber Vegetables Saleh, Director General of Foreign Trade at various minimum residue levels • #90 scheduled to apply starting Mar 19, the Trade Ministry, said the Ministry was •The regulation raises the number of 2012 delayed by Permentan 16/2012. working closely with the Food and Drug items that require testing, from 38 to • From June 19th the Government Monitoring Agency (BPOM), the Quarantine 100 items (the 38 items as outlined by issued another regulation, #43/2012, Agency and other institutions, to closely Number 37 (2009) which supersedes both #90/2011 and monitor imported products, particularly 2. Number 89 (Dec 2011) - Ministry of #16/2012. This is applies to Onions fresh fruit and vegetables, canned food, Agriculture - Restriction of Ports only: Bawang Merah, Bawang Bombay, meats and processed food and beverages. • Effective from 19th March 2012, imports Bawang Putih, Bawang Daun, all of "There is no policy to restrict imported of fruit and vegetables are restricted to which are not allowed to enter via goods, but we have to tighten import three seaports (Surabaya, Medan and Tanjung Priok port. regulations related to the entry of certain Makassar) and one airport (Soekarno- 38 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p38 8/16/12 7:35 PM
    • "It is presumed that the aim of all this new regulation is to protect the market and encourage local production of fresh fruit and vegetables." Delayed to mid-September be conducted by companies that hold an vegetables. However, it is not enough merely 4. Number 30 (May 2012) – Ministry of import permit issued by the Ministry of to limit the import of fruit and vegetables; Trade – Import Permits (IT-Produk Trade, once an RIPH permit is obtained there must be more support for farmers, Hortikultura) from the Ministry of Agriculture. specifically in the following areas: Main points: • Education • The Government determines what What is needed for an RIPH permit? • Marketing and logistics may or may not be imported • Administrative requirements – NPWP, • Availability of capital • Importers must have cold storage and SIUP, etc. • Improved access to better raw materials, cold transport (cold chain) capability • Technical requirements, including fertiliser, pesticides, seed • Importers must not sell directly to - Producer registration varieties, etc. retailers or end users, but most appoint - Packing house registration distributors. It is not clear whether - Implementation of Good Agricultural Despite these efforts to protect the raw distributors must demonstrate Practices or food safety material industries, we believe that it would ownership of a cold chain. - Certificate of pesticide screening be more beneficial in the short term for - Sanitary phyto the government to OPEN the market to For every incoming shipment starting - Harvest time imported raw materials. This would generate September 28th, 2012 the following - Storage time in the warehouse employment and encourage businesses documents are required: to invest in production and value adding a. IT-Produk Hortikultura Imports – So what’s happening now? throughout the horticultural supply chain. b. RIPH → the explanation and regulation Regarding the new import permits, to date by #03/2012 (see below) the Department of Trade has issued no c. Indonesian labelling (SKPLBI) permits. This is the first requirement to apply to the Department of Agriculture for Note: It is believed that no import permits an RIPH. Without a RIPH the Department (IT) have been issued to date for all submitted of Trade will, in turn, not issue the final This article was contributed by applications, eventhough it’s a prerequisite Import Permit. BritChams Food, Fisheries, Forestry for RIPH (as described below) and Agriculture (FFFA) sector group. Relevance to the local horticultural industry The FFFA Sector group can be reached at 5. Number 03 (Jan 2012) – Ministry of It is presumed that the aim of all this new Agriculture - RIPH regulation is to protect the market and Import of horticultural products may only encourage local production of fresh fruit and | 39agustus-september_16august.indd p39 8/16/12 7:35 PM
    • SECTOR GROUP - manufacturing & retail When Japanese customers are actually right and truthful There are good customers and bad customers, but is it too much to expect retail shop managers to distinguish the difference? In my circle of friends of businessmen plastic wrapping and package boxes for with cutting only the cellotape on the folded and women and ex-investment bankers reuse. He is surprised that the cushions thin overlay of the plastic envelop and that the who work for a development agency in white foam covering is ripped already and plastic wrapping indeed showed that the Jakarta, there is a brand that attracts their the white synthetic material cover has black customer had not cut the cushion edges customs. It is a Japanese Private Label brand mould all over. The customer immediately was accepted. Instead, stubbornly rejected with retail stores that can be found in the asks his driver (who is fasting) to return by Mr Herry Sxxxx. best shopping malls in Jakarta. They offer the goods for exchange at the shop but stationary, clothes, cooking utensils and gets a call that the store manager refuses The same home owner had some months furniture with distinctive minimalist designs to refund even though the goods or are earlier bought a Japanese brand air (at a premium price). Recently one regular not sale items. conditioning unit at a Japanese electronic customer was attracted to cushions on goods store, also in capital city, during a late display and asked the assistant for a large “Sir, you must have put your knife or scissors evening after office with his wife. sized cushion and a smaller one and bought through the stitching when you unpacked...” the matching covers that were displayed The store manager, named Mr. Herry Sxxxx, The couple did not inspect the goods as separately on the shelf. The cushions have speaks through the customer’s driver’s it was to be delivered to their home that a metallic clicking mechanism for back mobile phone. No amount of explanation weekend for installation by the contractor support and are stored in a corner office about how the customer was very careful - arranged by the big international retail near the cashiers counter. The shop assistant store. It does not occur to the couple brought out the two cushions from the that the delivered air conditioner outdoor office, partially lifted the chairs that are component needs inspection, after all the wrapped in plastic and put the inspected brand is well known and of Japanese origin. cushions back into the corrugated carton By coincidence the house was under some box and sealed them with cellotape. The roof repair and the repair contractor’s chief customer qualifies for membership reward noticed that the outdoor unit looked dirty. as his custom clears the two million Rupiah On closer inspection the unit was clearly a spending minimum (The amount is the take previously used one, the upset housewife home pay for an average factory worker who got the information called the store and in Jakarta). He fills in the form and pay for the unit was changed without question the the purchase with platinum credit card and next working day. since he trusts the Japanese brand, he does not closely inspect the cushions. An hour The customer in both cases are not imagined later in his central Jakarta home he opens characters and the experiences were real. the box carefully, being an environmentally The same customer’s wife, as in the two minded individual, he habitually stores stories earlier, last month purchased a 40 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p40 8/16/12 7:35 PM
    • famous American electronic tablet device, named after a fruit at The store manager of the furniture seller explained that the a non-Japanese big retailer of electronic goods, near the central Indonesian operation is a locally owned franchise and no Japanese business district. The shop assistant offered to put on a transparent manager was available to handle the complaint. The customer film to protect the screen for free. The assistant whispered to her wrote on their Facebook page and described the problem and that payment has to made in cash and to keep the transaction there was an acknowledgement of the message but no further quiet from his supervisors, and if any question is asked please communication to the customer. lie and say that the film was purchased elsewhere and that he is doing a”pro bono” service. At a BritCham Young Professional meeting, the head of Citibank and a management partner of a hedge fund pointed out human “These cases demonstrate the need for instilling resources as potential bottlenecks for economic growth in Indonesia. These cases demonstrate the need for instilling ethics ethics and concepts of good governance to the retail and concepts of good governance to retail staff and, to the brand staff ” owners - the potential peril of damage to your reputation when working with local franchise owners. The brand owners need For any manager and business owner these incidences are a sign to keep constant and vigilant control over the top management of a lack in inspection quality and inventory control. In Japan the within the retail supply chain environment. Finally the lesson for furniture would have been discarded and incinerated. In Indonesia the customers, be aware! there are good repair shops who will replace the defective film and the furniture can be saved from the flames and provided to another user. The quality control department of the manufacturer and the receiving parties could not detect the defects and the stains were probably caused by high humidity and lack of storage facilities. In any case, the local store manager succeeded in passing off the defect as perfect goods and refused to acknowledge selling defective products. Joseph Hwang M.Sc. Chairman of BritCham’s Manufacturing and Retail In the case of the air conditioner, there are two probabilities; the Sector Group. retail shop’s warehouse controllers delivered a second hand unit Director of Gokoko Kogyo Indonesia to the installation, or the installation team swapped the new one from the warehouse with an old one the team procured elsewhere. | 41agustus-september_16august.indd p41 8/16/12 7:35 PM
    • SECTOR GROUP - HR Mediators to service its offices round the world. It offers employees mediation and adjudication for work-place disputes. Users of adjudication report a 15% satisfaction rate, whereas users of mediation report a 95% satisfaction rate. Fourthly and Fifthly, Lee described how mediation could achieve out-of-the-box solutions that reflect the parties’ interests, solutions that are not available in a rights- based adjudication processes So, mediation gives us a higher chance to get what we need out of a dispute. "A successful mediation requires the willingness of the parties, the presence of The Hunting Knife the decision maker, and the competence of the mediator. " versus the Penknife During question time, a member of the Mr. Raymond Lee, a mediator with the Indonesian Mediation Centre audience spoke of how she had been (Pusat Mediasi Nasional) presented a lively case for mediation. As dissatisfied with mediation since the business leaders, Lee argued, our task is to achieve a certain outcome mediator had shuttled between the for a certain cost within a certain time. Why then, when faced with parties brokering a deal, and did not give conflict, do many in business turn to a conflict resolution tool that her an opportunity to face the other party. offers an uncertain outcome, uncertain costs, and an uncertain time Lee explained that was not the style of frame, namely adjudication? mediation he advocated. Being heard is necessary. Parties need to ‘let off steam’ Lee contrasted two conflict resolution risk. In an adjudicated process, risk runs and tell the other part how they have tools: adjudication, an adversarial process wild and once battle begins - after filing suffered. Lee explained that a successful where a judge or arbitrator decides the a claim - conflict escalates. Lee spoke of mediation requires the willingness of outcome based on the rights of the his experience filing a claim for USD 1 the parties, the presence of the decision parties; and mediation, where a mediator million against an Indonesian company maker, and the competence of the assists the disputing parties to decide the only to be served with counter claim for mediator. outcome for themselves based on their USD 10 million. Mediation minimises risk interests. since the parties are in control of the Finally, Lee invited us to consider three process and the outcome, and the costs things: It seems, faced with the prospect of and time needed are a fraction of that of 1. Ask, what is our conflict resolution battle, we crave a champion. So, if we can adjudication. culture? afford it, and even if we cannot, we opt 2. Consider conflict competency training for a large gleaming hunting knife – a top Secondly, mediation is useful for handling to manage conflict in a constructive lawyer whose skills are honed to flail our conflict in external relationships with way. opponent’s claims, dice their arguments customer, partners, and key suppliers. 3. Consider incorporating a ‘willingness to and stab home our version of events. When the relationship is important to mediate’ clause in contracts. Hiring a champion has more appeal than maintain, mediation, being confidential, hiring a mediator, a neutral who only offers allows difficult conversations to take place to use a puny many-bladed penknife - behind closed doors thus saving precious none good for stabbing opponents. face and not exposing anyone to public humiliation. However, the many blades of mediator’s penknife are excellent for problem solving. David Knowles Lee set out five ways we can use the Thirdly, large organisations are turning Mr. Knowles is presently a Managing Partner of OPUS mediator’s penknife to our advantage. to independent mediators to help with Management & the Chairman of BritCham HR Group. work-place disputes. The World Bank e-mail: website: The first way, mediation helps manage Group employs a network of Regional 42 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p42 8/16/12 7:35 PM
    • SME SPOTLIGHT The Rich are Getting Younger Back in the old days, starting your own business was something that you did after you have worked for other people. Nowadays, people are starting younger than ever. We have tech-preneurs, student-preneurs, teen-preneurs, and if we count the girl scouts and their cookies, one can argue that we’ve even got kid-preneurs. "DREAM: 2. They act on Lead Measures, which means they have identified 2-3 key activities that will Dare to Reach, Earn, and drive the achievement of the WIG. All the rest Aspire for More that is happening on a daily basis is just “stuff.” And although “stuff” must be taken care of, the team understands and quickly refocuses back GUT: on the Lead Measures as a key priority. Gave Up Thinking" 3. They keep score. On a weekly/daily basis, Where previous generations tend to settle for they know their progress towards achieving what’s realistic and achievable, the youth start their WIG. They know whether or not they’re with a market opportunity and great optimism winning or losing. And corrective action can to go for it. They dare to reach for more and be made asap. have a higher standard of wealth and lifestyle. On the gut side, maybe it’s good that they don’t 4. They keep accountability. Using meeting think too much before they take action. At least rhythms, the team keeps each other accountable it gets the ball rolling and, as all entrepreneurs on their promises to make sure things progress do, they rise and fall through the process. Some forward. of them win big, and others keep striving for results. At the end of the day, most businesses measure success by their numbers. Every number on If I, as a Business Coach, may give advice for the your financial reports is created by a certain Jokes aside, I get more and more invitations young-preneurs (and for any business owner for activity (or lack of activity) done by the team. these days to speak about entrepreneurship in that matter) it will be to keep in mind that results Ensuring great execution ensures that you are universities and even high schools. And when come from a process. The correct execution doing the right activities to achieve your business I meet these youths, they are utilising online of that process will ensure the achievement of results consistently. tools to get their business soaring. Some of them the results. Many entrepreneurs are too results are making way beyond a manager’s salary in oriented wanting to quickly make money. They Make it a great business and a great month terms of profits from their businesses. We are fail to map out the process of execution and ahead. seeing organisations like Young on Top filled the systems needed to coordinate & leverage with young leaders & entrepreneurs. their resources. Most businesses don’t get results, not because they don’t have a great Gen Y and Z are raised as a confident generation, plan, but because their execution (excuse my encouraged to have big dreams, fed with French) sucks! messages like “Yes, You Can!” and convinced that success is measured in months rather than Let’s go through some commonalities among years. In the corporate world, we also see them businesses that execute well: aspiring to be at the top a lot faster and younger, Coach Cynthia with dreams to retire early. 1. They focus on one WILDLY IMPORTANT GOAL. We call this a WIG. Focus is derived from Firm Owner, ActionCOACH Coach Cynthia is a thought leader and owns an What is it about the young generation that the Latin root that implies one. When you have ActionCOACH Business and Executive Coaching makes them more daring, gung-ho, and business too much focus, technically you have foci (plural franchise that helps to grow businesses faster with a proven system. For a FREE BUSINESS HEALTH CHECK, savvy? Perhaps they just start with a DREAM form). In business, too much to focus means go to and take action from the GUT. you are not focusing on anything at all. | 43agustus-september_16august.indd p43 8/16/12 7:36 PM
    • THIS MONTHS FEATURES Entrepreneurship Policies for Sustainable Economic Growth The term ‘entrepreneurship’ is used in a range of contexts with widely varying meanings. In the neoclassical economic tradition, an ‘entrepreneur’ is simply the owner/manager of a (small) business. Such a person receives the residual returns from the business operations and therefore, has the appropriate incentives to monitor any costs incurred that would otherwise arise from internal team production (Alchian and Demsetz, 1972). the process of starting and continuing to enlarge new businesses. This article will be divided into 2 main ideas; firstly, it will discuss what the characteristics of entrepreneurs are and Secondly, How to implement policies that promote entrepreneurship and how to deal with the accompanying challenges in developing countries. I will also give a comparative study on how such a policy is implemented in the United Kingdom through its Enterprise and Regulatory Reform Bill. WHAT ARE THE CHARACTERISTICS OF AN ENTREPRENEUR? ENTREPRENEURSHIP POLICY There are at 3 important points to take Entrepreneurship policies aim to boost heed of if you are looking to become a socially maximum level of such Entrepreneurs are thought to act as an entrepreneur: (1) entrepreneurs are venturing. Commonly, policy makers seek catalysts for change in the economy aware of the option and perceive it as to raise the level of entrepreneurship; through their capacity for innovation sociably desirable one; (2) they perceive entrepreneurship policies, thus, do not and risk-taking. Many people are still that opportunities exists and that they only relate to actual entrepreneurs but thinking that entrepreneurship gives a will have, or could gain, support to also to those who are considering starting less contribution in the economic growth. pursue business ideas; and (3) they have a new business. On the other hand, as economies have confidence in their own ability to conduct become increasingly ‘knowledge-driven’ business. In other words, there will be If entrepreneurship is a system that and ‘novel inventions-based’, policy makers higher levels of entrepreneurial activities includes entrepreneurs (and potential have embraced the urgency of unification in economies where people are aware of entrepreneurs), government and of entrepreneurship policies and they tend entrepreneurship as a feasible and viable institutional actions and the desired policy to be more enthusiastic. option and who are willing to explore outcome is a merit level of entrepreneurial its motivation. Having access to good activity, then the role of governments and In the recent years, there have been so networking opportunities, where new institutions is to foster environments that many definitions of entrepreneurship that skills, experiences and knowledge can be will produce new entrepreneurs in the its true meaning has nearly been blurred. gained, will assist in the development of an future. Many sectors, including Government entrepreneurs business. They will also gain Institutions try to create their own ready access to the start-up support they The idea of constructing entrepreneurship interpretation about “entrepreneurship” need such as; information and new ideas, policies should focus on all parts of the and none of these neologisms address the inventions, counselling, advisory services, individual entrepreneurial process, from true meaning of “entrepreneurship policy”. contacts, capital and most importantly the awareness of entrepreneurship, as In reality, we adopt a broad meaning of encouragement. early as possiblein. All stages, including “policy” but “entrepreneurship” means how to raise funds for start-up, advocacy 44 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p44 8/16/12 7:36 PM
    • in setting up an entity all the way through and receiving all of the correct documents to how to run and manage a sustainable Cultural factors such as a success story in place to start operations. According to business, indeed, require the support or a failure from an individual in setting- the World Bank, Indonesia was ranked from governments and well-established up and developing a business may give number 45 in 2011 in terms of time firms. The later could become a motivator inspiration to others who wish to engage required to start a business. It shows the for new businesses to expand and offer in entrepreneurial businesses. complicated bureaucracy is still a barrier for encouragment in the face of risks. many entrepreneurs to own a business in Relevant economic facts play a big part the country. In comparison, New Zealand CHALLENGES IN IMPLEMENTING towards the engaging entrepreneurial was ranked number 1, Singapore number ENTREPRENEURSHIP POLICY businesses. On top of that, the readiness of 3rd, Malaysia ranked 6th and the United The existing literature has identified several financing, which supports entrepreneurial Kingdom 13th. challenges in conducting entrepreneurial businesses, is still relatively low. activity. These can be distinguished as; (i) (ii) The legal protection of intellectual individual (ii) cultural (iii) economic (iv) Geography may relate to entrepreneurial property (IP) is extremely important, geographic and (v) legal factors. businesses, especially if it is related to the although controversy reigns as to the development of innovative technology. precise way in which IP rights affect At the individual level, risk tolerance is Indonesia still lacks on the technological incentives. The enforceability reduces likely to affect the willingness to engage side. For example; the internet is still rather the speed at which new ideas (transfer of in entrepreneurship. Entrepreneurship primitive outside of Java. knowledge) may be transmitted from one will attract individuals with lower risk or business to another. loss aversion given the high variability in Finally, Legal issues surrounding business outcomes. Most importantly, individuals in a country are related to the amount of (iii) Changes on labour regulations and who express highly optimistic thinking and entrepreneurial activity in a country. These the potential of labour strikes have a direct an open mind are more likely to become are as follows; impact on the business itself. entrepreneurs as they have overestimated the likelihood of success. (i) Time required in setting up a business (iv)Taxation, in particular the relative levels | 45agustus-september_16august.indd p45 8/16/12 7:36 PM
    • THIS MONTHS FEATURES “If entrepreneurship is a system that includes entrepreneurs (and potential entrepreneurs), government and institutional actions, and the desired policy outcome is a merit level of entrepreneurial activity, then the role of governments and institutions is to foster environments that will produce new entrepreneurs in the future.” of income tax (for employees and also the Secondly, it is related to Competition will gather momentum and undoubtedly, entities) might cause extra costs, which Reform. Fair competition between business it will create opportunities for market and small businesses should take into account. and access to market entry helps small economic growth. The Government’s policy enterprises to compete and grow. The UK is required to ensure that the availability There is urgency for the government Government aims to stop small businesses of funding is open for start-up businesses. to protect the Small-Medium sized from being at a disadvantage if they enterprises by implementing clear experience anti-competitive behaviour. In addition to that, for the entrepreneurs, it regulations. It is right to take an example Furthermore, the UK Government concerns is important to understand how to manage from the UK Government’s Policy in the on consumers and small enterprises who entrepreneurial firms. The emphasis on small support of SME’s. At the time of writing have suffered loss due to anti-competitive entrepreneurial firms as engines of dynamic this article, the Department of Business behaviour will receive damages. Indeed, efficiency, may seem startling after decades of Innovation and Skills recently proposed a fast tracking to solve any loss incurred is looking to the corporate giants as engines of new legislation creating the right conditions a priority. growth and development, but in fact may, the for UK business growth, called - Enterprise idea may not be so new. and Regulatory Reform Bill” (“New Bill”). Thirdly, issues on Regulatory Reform. There are 3 major issues which will be Under the bill, will enable enterprises highlighted under this New Bill. who share an approach to compliance- perhaps because they belong to a trade Firstly, Issues related to Employment. The association or franchise-to rely on advice UK Government aims to give businesses given by a single local authority. This will the media to resolve disputes without the allow thousands more small enterprises to need for an employment tribunal. Small, access the scheme so that more businesses medium and micro businesses will benefit can gain recognition and credit for how well Andrew Sutedja Gained a LL.M in Commercial Law from the University from the lower costs involved in settling they comply with regulations. of Sheffield, UK. disputes. The UK Government will work to Committee Member of Young Professionals Group at British Chamber of Commerce in Indonesia. develop the rapid process of employment CONCLUSION Legal Manager at PT. Coal Networks Resources; tribunals, so that parties do not need to The challenges in implementing Member of Young International Arbitration Group – attend a hearing. This will save businesses entrepreneurship policies should be solved the London Court of International Arbitration and individuals time and money. immediately as development in this area 46 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p46 8/16/12 7:36 PM
    • Indonesian Entrepreneurs as the Agents of Change in Facing the impact of the eurozone crisis on the indonesian Economy Indonesia is a rich country with plenty of natural recourses and human capital. Both are important assets that are vital in the support and development of Indonesia’s economy. According to the Home Affairs Ministrys data of 2011, Indonesia had approximately 260 million citizens. Human capital can be categorised as the prime capital to run and support businesses. However, Indonesia is also vulnerable to becoming trapped in a demographic disaster due to a possible high unemployment rate. It is therefore vital that jobs are created in-line with the ever growing Indonesian population. Creating more entrepreneurs and domestic market. Furthermore, according SME’s is a solution to prevent Indonesia to the Bisnis Indonesia Newspaper, the becoming trapped due to the amount number of entrepreneurs in Indonesia of jobs they will create across the also has increased significantly from 0.24% many industries. The contribution of in 2009 to 1.56% in 2012. The increasing SME’s in supplying their products for numbers of entrepreneurs will not only Indonesia’s domestic consumption also increase the domestic product supply but, supports Indonesia in becoming a more will also increase export levels to other economically independent country. In countries in the long run. Consequently, the current Eurozone Crisis, where export the Government will also receive more levels are declining, the large number of foreign exchange and tax income. Indonesian citizens can be an advantage to SMEs as there is a substantial market, on their doorstep, to sell their products “By allocating more to to. Moreover, the Ministry of Trade has education, the quality of promoted the ‘Cinta Produk Indonesia’ university degrees increase. or 100% Indonesia tag line in order to In turn, developing more increase the awareness of our domestic products so that import levels can be young, enthusiastic and reduced further and to persuade the innovative entrepreneurs.” Indonesian population to buy Indonesian These ever increasing number of as suppose to imported products. Several strategies from the Indonesian entrepreneurs and SME’s in Indonesia Government, to minimise the impact of the will contribute significantly to the growth Eurozone Crisis on Indonesia’s economy, of Indonesia’s economy. The domestic “The increasing numbers also support the growing number of market will keep on expanding pushing of entrepreneurs will not SME’s in Indonesia. These include the Indonesian products to the International only increase the domestic gradual increase of the education budget Market. product supply but will and security budget which in turn, create economic stimulus. By allocating more also increase export levels to education, the quality of university to other countries in the degrees increase which develop more long run.“ young, enthusiastic and innovative entrepreneurs. The investment and development of domestic security results In the current situation, where most in a safer environment, minimising the countries are feeling the pinch of the security risk to entrepreneur’s supply Eurozone Crisis, Entrepreneurs and SME’s chains. If the Rupiah remains stable and play a more important role as the agents inflation stays at the 5.75% level, as set Jennifer Hadinugraha, B. Arch., of change in Indonesia. The growth level by Bank Indonesia, businesses will be MSc in Strategic Entrepreneurship of Indonesia’s economic development encouraged to take out loans encouraging (University of Southampton) Operational Director of CONAKA General Contractor grew by 6.3% in the first quarter of the expansion of SME’s. As a spin off and Committee Member of Young Professionals 2012 (Republika, 2012). This growth was effect, more and more people might be Group, British Chamber of Commerce in Indonesia achieved because of the contribution from encouraged to start up on their own. Email: SME’s in the further development of the Website: | 47agustus-september_16august.indd p47 8/16/12 7:36 PM
    • THIS MONTHS FEATURES IS Team Building Training Really Worth the Investment? I often get asked by HR Managers if “fun” team building activities can really be effective in developing teams, and more specifically be worth the investment? Fun learning is good. People retain more information and for longer in a conducive learning environment, where they are relaxed and can enjoy the process. Learning should be fun, but that is not necessarily useful. Fun alone is non-existent in the training world! Team development training programmes should be able to help impelled to step out of their box, and trust me, this process can build relationships among the people, but further than that be be difficult for some people, let alone fun! Human beings grow able to give key inter-personal communication tools which they the most when their mind is stretched and when their old views can use afterwards. Training participants should go home with a are challenged. So if you’re thinking of investing money on fun in sense of empowerment and team cohesiveness. the name of training, you’d better think again. There are a few mistakes that HR Managers often make when Investment tip: Begin with the end in mind. Ask yourself these addressing a team building need, that consequently can result questions, what do you want to get out of a training programme? in a bad training investment: What do you want your teams to look like? What is the ideal team environment you would like to have? How should a training Misconception #1: TEAM BUILDING = FUN programme help you achieve these goals? Unfortunately, many HR Managers get the notion of team development all wrong. Many confuse team building as some kind Misconception #2: TEAM BUILDING = HAPPY PEOPLE of a paid vacation that’s injected with some amount of learning Don’t get me wrong, we want our people to be happy during sponsored by the company. When Dr. Kurt Hahn pioneered the learning process as well as afterwards. Although the truth experiential learning methods in the 40s, as an educational is, more often than you’d like to admit, people in your company concept for young sailors to develop their character, tenacity and have communication issues with each other, and they are not ability to work with others, he never put fun as the ingredient. In happy about it. Depending on how critical and serious the issue fact, his fundamental philosophy of self growth comes from having is, addressing it is always the best policy. It’s not always going people put through challenging environments where they will be to make people happy in the process, but raising the issue and 48 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p48 8/16/12 7:36 PM
    • resolving it can give a more permanent and productive result in homework is to find ones that can deliver the output you want. the long run. We all desire a team that works like a well-oiled machine and Investment tip : Ensure that the training programme will give you yields high productivity. Sometimes we have them, sometimes a lasting and productive output for your people and organisation. we don’t have them yet. For those who don’t have them yet, don’t be disheartened. We call it teamwork because it is work. In order to have a well-coordinated and engaged team, it requires “We call it teamwork because it is work. action and nourishment, it doesn’t operate automatically. When In order to have a well-coordinated you nourish your people, you’re investing in them in the hope of and engaged team, it requires action higher returns for the organisation. If you invest correctly and and nourishment, it doesn’t operate wisely, you have taken the first crucial steps to a healthy return. automatically. ” Misconception #3: TEAM BUILDING = QUICK FIX Rome was not built in one day, and neither are teams. A good team building training should be able to offer a solution for your teamwork issues. But be mindful, it’s not a quick fix for every problem or for ever. It requires steady work and commitment from all stake holders, even after the training is over. A culture and system that support productive teamwork can go miles in reaching success for the company. Wendy Kusumowidagdo She is the Senior Consultant for Outward Bound Indonesia. An international licensed organisation for outdoor learning, focuses on maximizing businesses performance by Investment tip: Make sure that you’ve identified your training empowering leadership, developing winning attitude and building teams. To learn how needs and objectives before you select the type of training we can help you accelerate your teams, visit programme to match. There are dozens of training methods, your | 49agustus-september_16august.indd p49 8/16/12 7:36 PM
    • THIS MONTHS FEATURES NEW TAX PLAN FOR SMes Enterprises can be classified as micro, small or medium. This is based on a firm’s assets, its sales, or the number of employees working for the firm. The definition of an SME varies amongst countries or Institutions depending on the different levels of economic wealth a country may have Article 6 of Law No. 20 from 2008, regarding Micro business and Small and Medium Enterprises, defined MSMEs by the following characteristics (see table of characteristic); Table 1. Characteristic of Micro business and Small and Medium Enterprises 2008 CHARACTERISTIC NO. DESCRIPTION ASSETS*) TURNOVER 1. Micro business Enterprise Max. IDR 50 million Max. IDR 300 million > IDR 50 million - IDR 500 > IDR 300million – IDR 2.5 2. Small Enterprise million billion > IDR 500 million - IDR 10 billion > IDR 2.5 billion - IDR 50 3. Medium Enterprise billion *) excluding land and buildings are corporations. Millions of people are engaged in productive activity, and SMEs employ 69% of people working in the private sector. SME’s contribute significantly to development, as 35% of Gross Domestic Product comes from these enterprises (see table of Number of Enterprises in Indonesia in 2010). The Directorate General of Taxation (“DGT”) plans to impose a revenue-based tax on micro, small and medium enterprises. Micro Businesses, which the DGT defines as enterprises, with annual revenue of less than IDR 300 million, would be taxed 0.5 percent of their revenue. SME’s , with annual revenue of between IDR 300 million and IDR 4.8 billion, would have to pay a 3 percent tax. The DGT plans above raise various arguments for and against the targeting of taxes on SME’s. First, the difference in definitions between the DGT and the Ministry of Cooperatives and SME’s creates confusion, and as a consequence SME policies may not reach the desired target group. A unified definition of SME’s is Undoubtedly, SMEs have dominated economic activities in many essential to achieve a focused SME tax policy for all taxes. developing countries. Job creation and more equally distributed incomes are the most significant contributions of SME’s. In Indonesia, Secondly, the taxation system (legislation and administration) often SME’s have played a significant role in the economy of the fifth hampers the growth of SME’s or forces them into the informal largest population in the world. Of the country’s more than 616,000 sector. Laws and regulations can generate cash flow through tax enterprises, 99% are small and medium enterprises and only 1% payments, but also cause high compliance costs through formal 50 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p50 8/16/12 7:36 PM
    • Table 2. Number of Enterprises in Indonesia in 2010 GDP Enterprises Number % Labour % % of Export % (In billion IDR) Small 573,601 92% 3,627,164 39% 3.47% 597,770 15% Medium 42,631 7% 2,759,852 30% 11.06% 816,745 20% Sub Total 616,232 99% 6,387,016 69% 14.53% 1,414,515 35% Corporate 4,838 1% 2,839,711 31% 85.47% 2,602,370 65% Total 621,070 100% 9,226,727 100% 100% 4,016,885 100% Source: and administrative standards such as bookkeeping requirements, businesses, pressure groups, tax consultants), further studies tax self-assessment, and penalties. should be initiated with a view towards unifying the definitions of SME’s and determining an appropriate tax treatment for them, Third of all, often, these constraints relate not only to tax laws including tax compliance, their tax knowledge, and review of other but also to bureaucratic behaviour. Interaction with government possibly burdensome tax regulations. officials is often encountered in the forms of lengthy procedures and lack of transparency. Finally, even though promising attempts have been undertaken to reduce formal requirements, as well as the administrative burden, the overall tax environment is still SME unfriendly due to legal uncertainty. In an attempt to overcome these situations, tax procedures, as well as the overall administrative climate, still require a thorough review. A working group should be established to review the tax Sri Wahyuni Sujono regulations and procedures on SMEs with specific attention towards Sri Wahyuni Sujono Is the managing Partner of SF Consulting She is a certified Tax Attorney, Tax Consultant and holds a Brevet C, also a Chartered further simplification of administrative and formal requirements. Financial Consultant (ChFC) and a qualified Lawyer. She is also Vice Chairman of the Taxation Committee at KADIN and the Head of Foreign Affairs in the Indonesian Tax With the participation of private stakeholders (small and medium Consultant Association (ITCA) | 51agustus-september_16august.indd p51 8/16/12 7:36 PM
    • THIS MONTHS FEATURES The success of Indonesia’s SME development The future prosperity of any economy depends, to an extensive extent, on its success in promoting innovation, entrepreneurship, infrastructure and technological advancement. In all of these processes, small and medium enterprises play a vital role in the development and growth of an economy. Indonesia, being the fourth largest country in the world in terms of population and the world’s third largest democracy, has recognised the importance of SME’s as the pillar of the economy over the last decade, which is well illustrated in their growing contributions on the country’s total employment and GDP. In Indonesia, SME’s are defined as enterprises serviced offices in Indonesia has been with less than 100 employees. Currently, on the steady rise, making the serviced SME’s account for more than 90% of office market in Indonesia one of the all firms outside the agricultural sector, best-performing growth sectors in the being the biggest source of employment and commercial property market. According providing the major source of income for to The Executive Centre, the number more than 90% of the country’s workforce. of its serviced office workstations has grown by 250% over the last 5 years, with In the early 2000s with the aim of overcoming occupancy currently reaching over 80%. the weakness - as unveiled after the Asian The top 5 industries using the company’s Financial Crisis, of the past development serviced office solutions include Mining, policy in maintaining high economic growth many small producers, exerting positive IT technology, Engineering, Finance & performance through massive support to influence on the entire economy. Investment, and Manufacture - proof that big businesses - Indonesia enforced an SME SMEs are on the rise in Indonesia. clustering strategy to develop a competitive The effective implementation of the then cluster of SME’s. The SME development was SME Development Strategy has turned Commenting on the influence of SMEs enacted under the National Development SME’s into the backbone of the Indonesian on the future of Indonesia’s economic Programme, with action plans including the economy. They have provided employment and political environment, Viera Djawahir creation of a; conducive policy environment opportunities and helped maintain the said, “Globalisation of economy and trade at national and local level, Improvement of sustainable growth Indonesia has been liberalisation implies greater competition access to both financial and non-financial seeing recently. On another note, the to Indonesian SME’s. The key to the future resources, strengthening entrepreneurship potential of Indonesian exports is growing success of SME’s will be capacity building, development, information access, steadily and firmly, registering 8.5% growth which will enable them to capitalise on technology sharing and human resources opportunities arising from globalisation. It is development. expected that the evolving need to develop "The key to the future success of SME’s that are capable of competing in the With access to larger markets, SME’s SME’s will be capacity building, global marketplace will lead to the constant benefited from economies of scale, which will enable them to review of the country’s SME development generated greater revenues, and acquired capitalise on opportunities strategy.” new skills, new technology and new marketing techniques, allowing for more arising from globalisation." effective productivity and efficiency. Exporting also sped up the multiplier effect and helped spread the skills acquired by last year as well as an 18% rise in foreign direct investment. Indonesia has been turned into another hot emerging market following China and India. Gigi Liu, Communications Director, An experienced communications professional The Executive Centre (www.executivecentre. with expertise in corporate branding, marketing, com), Asia’s leading premium serviced office public relations, corporate social responsibility and provider with operations in Indonesia stakeholder management. The Executive Centre provides serviced offices, virtual office representation since 1996, has witnessed the success of services, meeting and conference facilities, and the Indonesia’s SME development, which business concierge services to multinational has translated into the driving force of corporations, small and medium enterprises, and start-ups locally, regionally and internationally. the company’s business. The demand for 52 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p52 8/16/12 7:36 PM
    • LIFESTYLE & HEALTH Minimal Access Neurosurgery – fiction or reality ? Minimal access surgery (MAS) and its techniques have been available for other surgical disciplines for a long time. We are familiar with procedures such as laparoscopic cholecystectomy and laparoscopic thyroidectomy. However techniques for use in Neurosurgery have been slowly developed and this has only been a recent trend. Conventional surgery has three main stages endoscopic third ventriculostomies, creating via incisions smaller than an inch in size. – exposure, operation proper to deal with an internal shunt and so avoiding the need Stabilisation and fusion procedures for not pathology and closure. In minimal access for a shunt, which being a foreign body, is only degenerative but also trauma related surgery, the impact of the first and last stage prone to infection and also blockage. Through conditions can be completed without the of surgery is reduced. This is done through the endoscope, it is also now possible to need for long unsightly incisions. In fact, the approach of gaining access via natural resect many skull base tumours and also vertebroplasty, a procedure which involves orifices or operating through small holes. sellar tumours such as pituitary adenomas. the injection of cement into the vertebral The surgery is normally aided by specialised With improved optics and the availability bodies to treat osteoporotic compression equipment using miniature video cameras of working ports, even intraventricular fractures commonly afflicting the elderly or fibre optic light sources and even the tumours are excellent cases for endoscopic population, need only a stab incision for use of stereotactic radiation. resection. Intracerebral hematomas can also access and is done with local anaesthetic. be effectively evacuated with the endoscope. This makes it a procedure suitable for The advantages of MAS are reduced In fact, the endoscopes are getting so small the patients who would otherwise need postoperative pain, faster recovery and that for thoracic sympathectomies for to depend on long term analgesics and shorter hospital stay. The wounds are also palmar hyperhidrosis (aka sweaty palms), calcium supplements life-long. Even vertebral cosmetically more acceptable to patients. the procedure is called needloscopic metastasis can be stabilised enough for On the contrary, the disadvantages are that sympathectomy due to the small sized external beam radiation to be added on the surgery is usually more challenging, endoscopes used! in the postoperative period. there is need for specialised equipment which may not be available in some centres The advantage of using MAS techniques in and certainly the costs involved are higher "The advantages of MAS spinal operations is the avoidance of the than normal conventional surgery. are reduced postoperative need for muscle dissection off the vertebra pain, faster recovery and and the minimal blood loss from the small The goal of MAS is to achieve the same shorter hospital stay." access incisions. As a result, the patient is surgical outcomes with less disruption to able to ambulate with minimal pain in the normal anatomy and as such quicker recovery. immediate postoperative period, aiding their The challenges faced by Neurosurgeons Another tool which Neurosurgeons use is recuperation and enabling earlier discharge! performing MAS for neurosurgical pathology stereotactic radiation by way of Gamma Knife Minimal Access Neurosurgery is certainly are many folds and these include factors Surgery (GKS). GKS uses focal, conformal reality and not fiction. The advantages are such as the brain and spine being non- radiation to treat a variety of conditions clear and patients stand to benefit from compressible and room for manoeuvring in an outpatient setting without the need the use of such techniques. Currently is very small. In addition, there are very for general anaesthesia or incision. It’s a MAS options are available for both brain few natural orifices for the Neurosurgeon versatile tool which is not only used to and spine pathologies and with the ever to access. treat neurooncologic conditions whether evolving technologies, the repertoire of malignant (for example cerebral metastases conditions which can be treated in this To assist the Neurosurgeon in performing or high grade glioma) or benign (for example minimally disruptive manner will increase. MAS, neuronavigation systems play a vital meningioma or acoustic neuroma), it is Without a doubt, in the not too distant role. With neuronavigation providing a also used in vascular pathologies like future, Minimal Access Neurosurgery will roadmap for surgery, Neurosurgeons can now arteriovenous malformation and functional become the standard of care! plan preoperatively the best approach for the conditions such as trigeminal neuralgia. least anatomical disruptions during surgery. Patients not only can be effectively treated Neurosurgeons can also very accurately and without the risks associated with procedures precisely localise pathologies and so limit the done under general anaesthesia, the Raffles Cancer Centre incisions required during the initial access. outcomes are not significantly different For appointment booking and medical enquiries, Let’s see how endoscopic surgery is employed if they had opted for conventional open please contact our office: in Neurosurgery. Hydrocephalus is by the far surgery. RAFFLES MEDIKA INDONESIA the most common condition is neurosurgery. Menara Anugrah 1st Floor, Kantor Taman E 3.3 The conventional technique involves inserting Minimal access techniques are also Jalan Dr Ide Anak Agung Gde Agung Lot 8.6-8.7 Kawasan Mega Kuningan, Jakarta 12950 a shunt diverting cerebrospinal fluid from frequently employed in spinal procedures. Phone: (62 21) 5785 3979 ext. 105, Fax: (62 21) 5785 the ventricles to the peritoneal cavity. Neurosurgeons who perform spine surgeries 3977 However, Neurosurgeons can now perform now have the abilities to insert spinal implants | 53agustus-september_16august.indd p53 8/16/12 7:36 PM
    • LIFESTYLE & HEALTH Naked Conversations How Blogs Are Changing the Way Businesses Talk with Customers Successful blogger, Robert blog than what’s covered Scoble, and co-author Shel in chapter 9 Meryl K. Israel, push businesses Evans “The Thorns in the to blog and explain why Roses.” This chapter could it would benefit them. be expanded further as The “naked” in the title it practically says anyone represents talking straight can blog except people in to the readers rather the security field, boring than filtering the blog’s people, and those full contents through company of fear, uncertainty, and public relations, lawyers, doubt. Just like anything in executives, and phoniness. business, I believe that a company needs to evaluate The book starts with whether or not a blog fits a foreword from Tom their model. However, Peters and proceeds to it’s vital that companies show why blogging is an follow the conversations efficient way for businesses and hear what’s said about to communicate with their product, service, and customers, prospects and industry. the world at large. The authors go back in time With this book, readers get and give an overview of a well-rounded overview of blogging’s history. Many blogging and how to make examples appear to show it work for businesses how companies have even during times of a benefited from blogging. business crisis. Of course, blogging isn’t all rosy and the authors cover the dark Also included are interviews with the side. Thanks to blogs, people have gotten executive bloggers whose names appear how to do it right and make the most of fired, employees have shared company in just about every article on business blogging. I picked up a few things and I’ve confidential information with the public, blogging: Mark Cuban, Bob Lutz, and been involved with blogging before its first and companies’ reputations have gone Jonathan Schwartz. But they also talk with application came to life. The book focuses downhill because they didn’t listen to the other lesser known business bloggers. on business blogging rather than those who blogosphere (the blogging world). treat it like a diary or a personal journal. The book has an easy to read and understand But no matter the kind of blogger you are, I recommend the book to any business that writing style so anyone who barely knows remember that a future employer could blogs, those considering it, and executives anything about blogging will be able to find your blog. who don’t understand what the deal is with grasp it. The authors clearly point out the blogging. An employee who can’t convince dos and donts when blogging. Not only do But what about those who haven’t been upper management the virtues of blogging, they cover how to blog, but also how to baptised in the world of blogging? This well- or at least listening to the conversations, get involved in the conversations instead of rounded book should give them all they might be able to change their minds with doing things one-way (always talking and need to get familiar with blogging and will this book’s help. For existing bloggers, the never listening). As a long-time blogger, I save a lot of time. Those of us who started book is a great resource especially the last believe the tips and advice hit the bull’s eye. earlier had to learn through reading stories chapters that cover the problems with Those participating in blog conversations for and trial and error. Learn how blogging has blogging, how to do it right, what not to over a year will most likely be familiar with changed business communications and do, and most important, how not to get many of the stories covered in the book. what strategies businesses should consider fired for blogging. when diving into the world of blogging. Even those who have been blogging benefit Written by Meryl K. Evans. from the book especially the advice for I believe there are more reasons not to 54 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p54 8/16/12 7:36 PM
    • This Month in History BIRTHDAYS A UG UST HISTORICAL BRITISH DATES 2 1894 AUGUST A U GU ST 5 1583 Death duties 1st introduced in Britain 17 1943 The first British colony During World War II in Europe, the Allies SEPTEMBER in North America was completed the conquest of the island of founded by Sir Humphrey 2 1752 Sicily after just 38 days. Gilbert. The British ended their use of the A U GU ST Julian calendar, switching instead to the Gregorian calendar. 6 1881 AUGUST 31 1997 Penicillin discoverer Alexander Fleming (1881- INVENTIONS Britain’s Princess 1955) was born. DISCOVERIES & DEBUTS Diana died at age 36 after a high- A U GU ST speed car crash. 13 1899 British film director Alfred SEPTEMBER Hitchcock (1899-1980) was born. 2 1666 The Great Fire of London began in a SEPTEMBER bakery in Pudding 15 1890 A UGUST Lane near the Tower. British mystery author 1 1941 Agatha Christie (1890- The first jeep rolled off the assembly SEPTEMBER 1976) was born. line. Willy’s Truck Company was the first company to create a jeep. 3 1939 SEPTEMBER Great Britain and France declared war 22 1791 SEPTEMBER on Nazi Germany after its invasion of Poland two days earlier. British scientist Michael Faraday 25 1956 (1791-1867) was born The first transatlantic telephone SEPTEMBER NATIONAL EVENTS cable went into operation. 29 1829 AU G U S T Britain’s “bobbies” made their first public 1 1834 appearance. Slavery abolished throughout the british empire SEPTEMBER AU G U S T SEPTEMBER 28 1066 1 1883 20 1452 The Norman conquest of England began Inland postal service beings in Britain The first book was published, Johann Guttenberg’s Bible. | 55agustus-september_16august.indd p55 8/16/12 7:36 PM
    • LIFESTYLE & HEALTH THE GAMES IN NUMBERs 3 Number of times the Olympics have come to The Olympic Park London (1908, 1948, 2012) • 587 Size of the Olympic Park in acres (2.5 sqkm) • 10,500 Olympic athletes from 205 nations • Over 200 number of buildings that had to be demolished to • 4,200 Paralympic athletes from 165 nations accommodate the new site • 302 Olympic events over 19 days • 30+ number of new bridges being built within the Olympic • 8,000 Inspirational people carried the flame across the Park country in the Olympic Torch Relay. • 300,000 Number of wetland plants in Olympic Park’s Urban River and Wetland Area The Venues • 17,320 Number of beds in the Olympic Village • 32 Olympic sports venues • 98 Percentage of construction waste that has been reused, • 700,000 (approximate) total capacity for all venues recycled or recovered • 80,000 capacity of the Olympic Stadium, including 25,000 permanent seats It is the lightest Olympic Stadium ever built Money Talks • 2,500 tonnes of steel tubing recycled from old gas pipelines • £625m Amount Londoners will contribute to the Olympic used for Stadium’s roof and Paralympic Games • 532 number of floodlights • £10bn Estimated amount of revenue the Olympics will • 12,000 sqm: size of the roof of the Aquatics Centre generate for the British economy • More than 800,000 tiles used in the Aquatics Centre • £2.1bn Estimated revenue generated by tourists during the • 17 km total length of steel cables used to cover the London 2012 Olympics Velodrome. • £537m Cost of Olympic Stadium (revised from £280m) • £214m Cost of Aquatics Centre (revised from £74m) The Events • 100 support vehicles out on the course during the Cycling Road Races Miscellaneous • 27 degrees celcius – Temperature of the pool • 4bn Estimated global audience for the opening ceremony • The ExCeL Centre hosted 165 events • 20,000 accredited media • Olympic Stadium hosted 208 events • 200,000 Total workforce for the London Games • 5,000 Estimated new homes available to East Londoners after Games, The Equipment • The London 2012 Olympic gold medal was made up of 92.5% • 510 adjustable hurdles used throughout the Games silver, 1.34% gold and the remainder copper • 600 basketballs, 800 water polo balls and 2,400 footballs • The silver medal was made up of 92.5% silver, with the • 1630 discs for the Weightlifting competition remainder copper • 432 pairs of boxing gloves worn • The bronze medal was made up of 97% copper, 2.5% zinc • 270,000 clay shotgun targets and 0.5% tin • 190 sets of Paralympic blackout goggles and eyeshades • 200 gate poles for the Canoe Slalom 56 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p56 8/16/12 7:37 PM
    • NEW MEMBERS CORPORATE MEMBERSHIP VSO INDONESIA VSO is the world’s leading independent, international development organisation that works through volunteers. With more than 50 years of experience in recruitment, training and management of volunteers in development programming, VSO works in partnership with government, civil society, media and private sector organisations in Indonesia to promote and support a culture of volunteering for sustainable development. Promoting and supporting corporate engagement in development, through innovative Partnerships for Development is a fundamental part of VSO’s approach in Indonesia, Mike Silvey and across Asia. We provide support to companies to develop employee volunteering Country Director initiatives as integral components of their CSR strategies and to engage, motivate and retain employees. VSO provides training, consultancy, and brokering services to corporate partners to help them develop employee engagement programmes which deliver both clear business benefits to the company and employees, and a positive impact in the Faye Alund community Programme Manager For more information, contact us on or visit our website: STANDARD MEMBERSHIP MELIÁ HOTELS INTERNATIONAL Meliá Hotels International was founded in 1956 in Palma de Mallorca (Spain) and is one of the world’s largest resort hotel chains, as well as Spain’s leading hotel chain. It currently provides more than 350 hotels in 35 countries on 4 continents under its brands: Gran Melia, Melia, ME, Innside, Tryp by Wyndham, Sol, and Paradisus. Its product and service portfolio is complemented by Club Melia, the only vacation club operated by a Spanish company. In 2011, the family company founded by Gabriel Escarrer Julia, that operated under David G.A. Perry General Manager the name “Sol Melia” for decades, began a new stage in its development under the brand name that represents its present and its future: Melia Hotels International. PT FTI CONSULTING INDONESIA PT FTI Consulting Indonesia, a part of FTI Consulting, Inc (NYSE: FCN), is a global business advisory firm dedicated to helping organisations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic Ms. Ricole Tan Managing Director environment. FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges in areas of finance, risk, governance, performance, reputation, intelligence, compliance and liability within the five main practice areas of Corporate Finance/Restructuring, Economic Consulting, Forensic & Litigation Consulting, Strategic Communications and Technology. In Asia Pacific, FTI Consulting is the largest specialist business advisory firm, with a team of more than 400 professionals situated in 13 major business centres across the region. Mr. Mark Chadwick Senior Managing Director | 57agustus-september_16august.indd p57 8/16/12 7:37 PM
    • NEW MEMBERS STANDARD MEMBERSHIP PT SWIRE ALTUS SHIPPING PT. Altus Logistics Services Indonesia is the leading provider of integrated, value-added, and customized services to the oil and gas and infrastructure industries. Our strong focus on quality, health, safety and environment is demonstrated by our DNV ISO 9001, 14001, and 18001 certification of our integrated management system. We have extensive experience managing and optimizing solutions for top oil and gas companies in Indonesia. We operate supply bases where we provide skilled personnel, equipment, warehousing, open storage, bulk plant and procurement services, complemented by our logistics and customs clearance services; vessel chartering, agency, and crew change services; and rental of cargo carrying units (CCUs) and other equipment. Our footprint in Indonesia covers from north Sumatra, Natuna, Java, Makassar Strait, and East Indonesia. Mr.Marc Peter Thomson Mr.Alan Richard Mossman Country Manager General Manager PT FEDERSEN CONSULTING Victor Dumitrescu Consultant PT GRAMA BAZITA Mr Fernandes Dolreich Mr Sukamto Ms. Refolies Yvonne Director Sales Engineer Marketing Executive PT SHL INDONESIA Neil Aldrin Matondang Marizca Tambunan Director Managing Director 58 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p58 8/16/12 7:37 PM
    • MEMBERS ANNOUNCEMENTS INDIVIDUAL MEMBERSHIP Mikail Jam’an Ms. Myra Panjaitan Mr. Zulmy Ikhsan Wiharsya ETIHAD AIRWAYS CELEBRATES ‘CLEAN SWEEP’ OF SKYTRAX FIRST CLASS AWARDS Etihad Airways has landed all three First Class titles at the prestigious Skytrax World Airline Awards 2012. The hat-trick of awards picked up by the Abu Dhabi-based airline are: • Best First Class • Best First Class Seats • Best First Class Catering Etihad Airways has now won the Best First Class title for three consecutive years. The First Class accolades follow the airline’s previous successes in the Skytrax Best Business Class awards which confirms the airline’s leading premium product position. ETIHAD AIRWAYS AND AER LINGUS UNVEIL CODESHARE DETAILS Etihad Airways and Aer Lingus have signed an historic interline and codeshare agreement which follows the UAE national airline’s recent 2.987 per cent equity purchase in the Irish carrier. Within the agreement Etihad Airways will place its “EY” code on Aer Lingus flights between Dublin, Manchester and London Heathrow, and destinations in Ireland, the British Isles, theChannel Islands, Portugal, the Netherlands and the US. In return, Aer Lingus will place its “EI” code on Etihad Airways flights between Abu Dhabi andDublin, and have full access to flights across the network beyond Abu Dhabi, to points including Australia, Asia-Pacific, the Indian Subcontinent and the Middle East. | 59agustus-september_16august.indd p59 8/16/12 7:37 PM
    • MEMBERS ANNOUNCEMENTS Appointment of the One Asia Group as Strategic Advisors to Asia Medical Assistance Group Asia Medical Assistance Group (AMA) a family owned company that has served the community for over 40 years today announced the appointment of the One Asia Group (OAG) as Strategic Advisors to further expand the group’s service offering and extend the footprint across Asia. AMA is a provider of B to B travel and health insurance solutions, with an integrated service offering a one stop solution for companies requiring grade A solutions for their clients. The services include product development, product support and induction to the market as well as IT Support and back office systems. OAG is a broad based strategic business advisory firm with expertise in international business structuring, management and development of businesses throughout Asia. The company is incorporated in Sri Lanka, Indonesia and Hong Kong. Abhijeet Singh Sachdev, CEO of AMA said ‘ with this partnership we will be looking to bring the best solutions to the wider Asian marketplace, One Asia brings us the expertise to take advantage of the rapid development of the various domestic marketplaces and the connections to expand our services globally.’ PEOPLE POWER INTERNATIONAL Appointed as study centre for the chartered institute of marketing in indonesia P.T. PEOPLE POWER INTERNATIONAL (PPI) is very proud to announce our appointment as the exclusive Accredited Study Centre in Indonesia for the UK-based CHARTERED INSTITUTE OF MARKETING ( CIM is a globally reputed Centre of Excellence that is at the heart of marketing; shaping the profession, developing people and transforming businesses. It is the largest community of professional marketers in the world with a membership of over 40,000. All CIM professional qualifications couple marketing theory with practical knowledge. PEOPLE POWER ACTION LEARNING CENTRE (PP-ALC) is now able to deliver the globally recognised professional qualifications awarded by CIM, right here in Indonesia. All programmes would be delivered through the Action Learning method of executive learning, which would enable the participants to apply the knowledge gained and the marketing tools and techniques learnt directly to drive business growth at their workplace. Considering the dynamic nature of marketing the Continuing Professional Development programme enables marketers to continuously update their knowledge. CIM offers a four-stage core qualification programme leading to the Chartered Post-Graduate Diploma in Marketing which is a route to the Chartered Marketer status. It is ideal for marketers working at a strategic level or aspiring to do so, who wish to gain a professional Master’s level professional qualification in Marketing. / + 62 21 2555 8597 / + 62 878 8173 1900 60 | AUGUST/SEPTEMBER 2012agustus-september_16august.indd p60 8/16/12 7:37 PM B BRIT
    • What are your values? Situated in Bintaro, south-west Jakarta, the British International equipment; tennis courts and ample playing fields.These resources School houses a series of uniquely designed buildings set in support a demanding and successful academic programme. extensive grounds and providing an attractive, well-planned, healthy environment where fresh air and open space abound, The British International School follows the English National and keep learning free from distraction. Curriculum (for children 3 to 14 years), I/GCSE (15 to 16 years), followed by the International Baccalaureate programme (17 Classrooms are equipped with interactive whiteboards and to 18 years); all conveniently located on one campus. Guided computers, making for a stimulating environment. Other facilities by experienced and caring overseas teachers, who engage the include a well-equipped music department; computer suites; students constantly, the emphasis is on providing students with science laboratories; language centre; workrooms for design and the very best educational environment, equal to any school technology; a state-of-the-art theatre; modern secondary library; across the world and creating happy and responsible citizens Olympic-size swimming pool with touch-pad time recording of tomorrow who share our values. For further information about the British International School, please contact the Admission office at | 61 Tel: (62-21) 745-1670 Fax: (62-21) 745-1671 E-mail: www.bis.or.idBRITCHAM august-sept1 indd 1 p61agustus-september_16august.indd august-sept1.indd 8/16/12 5:20 PM 8/9/12 7:37
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