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The Era of the Middle Class

The Era of the Middle Class

Indonesia is rarely mentioned in the same breath as the so-called BRIC economies that investors and exporters eye with envy. Yet the country is home to the world’s fourth-largest population, at 237 million, trailing only two of the BRIC countries, China and India, and the United States. Its economy grew 4.5% last year, the third-highest among the Group of 20 economies, and the momentum carried over into 2010, with first-quarter growth of 5.1% annualized followed by a 6.5% expansion for the April-to-June period. And, according to the International Monetary Fund, Indonesia was the only G20 country to lower its ratio of debt to gross domestic product during the financial crisis. “It certainly has the size that you would think it should be among the BRICs,” said Robert Simmons, chief representative for Export Development Canada in southeast Asia. “But it has never quite lived up to its potential.”

That may be about to change in the coming years. In its recent forecast on the Far East, CLSA Asia-Pacific Markets said Indonesia would be the region’s “outperformer” over the next two years when the global economy is expected to cool down in the post-stimulus era. It anticipates Indonesian GDP to expand 5.6% next year and 5.4% in 2012.

“Indonesia has a large domestic economy and favourable demographics with an expanding young and middle-class population,” said Anthony Nafte, CLSA senior economist. Foreign capital has flowed into the economy, with net foreign direct investment estimated at US$2.9-billion for the first six months of 2010– on track, Mr. Nafte said, to beating the previous annual high of US$5.3-billion in 2005. The main stock market in Jakarta has reached myriad highs in recent weeks, and investors hold a record amount of Indonesian bonds.

Long term, observers say, the $617-billion economy is going to be a place Canadian businesses want to tap as it looks to diversify from its historical reliance on the United States, which is undergoing a wrenching multi-year restructuring. Traditionally, commodities such as potash, used in fertilizer, were the leading Canadian exports to Indonesia. But Mr. Simmons said there’s an evolution afoot that Canadian firms could capitalize on. Engineering firms such as SNC-Lavalin and Stantec could tap into the myriad infrastructure projects likely to pop up, while technology companies can provide products required to get the country “wired,” so to speak.

Plus, analysts add, wage pressures in China and political risk in Thailand provide Indonesia a chance to expand its manufacturing sector.

Policymakers in the largely Muslim country have worked hard to position Indonesia for growth, especially given how far it fell just over a decade ago. Indonesia’s economy contracted more than 13% in 1998, making it the country that bore the biggest brunt of the Asian currency crisis. Banks collapsed, and millions were thrown into poverty. Exacerbating matters was the political instability, sparked by the fall of the Suharto dictatorship.

Indonesia’s transition to full-fledged democracy has taken time, but is bearing fruit. President Susilo Bambang Yudhoyono, or SBY, was re-elected for a second term in 2009, and is credited with implementing key economic reforms that make the country more attractive to foreign investors. Devolution of power and revenue sources from Jakarta to the regions has allowed for a more equitable transfer of wealth through the country, as opposed to being concentrated in the capital.

The country’s finance minister has said he wants Indonesia to obtain an investment grade rating, in an effort to attract even more capital — capital that is desperately needed to upgrade the country’s feeble infrastructure. “Attracting investment for infrastructure has been problematic in the past,” said Mr. Simmons of EDC.

In a recent report, the Asian Development Bank said “inadequate and poor” quality of infrastructure was holding the country’s economy back. Among the drawbacks: one of the lowest road densities in southeast Asia; overstretched ports; and fragile electricity distribution. This is why Indonesia’s manufacturing sector has yet to take off with vigour, and the economy relies on commodities and agriculture.

CLSA noted, as well, that restrictive labour regulations, lack of confidence in the legal system and perceptions that corruption remains rife are issues SBY has yet to fully address — and doing so would further entice businesses looking to expand in Indonesia and broaden their revenue base.

Writer: pvieria@nationalpost.com

Source: Canada.com

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The Essence of Pakistan and Indonesia

The Essence of Pakistan and Indonesia

On Indonesia and Pakistan

Traveling through Indonesia, I can’t but help think of Pakistan. Indonesia, I feel, is closer to what Jinnah had in mind for Pakistan. A country of Muslims with Islam as the core fabric of society but not an Islamic state. Jinnah stated in his 1947 policy speech on the character of Pakistan:

Now, if we want to make this great State of Pakistan happy and prosperous, we should wholly and solely concentrate on the well-being of the people, and especially of the masses and the poor. If you will work in co-operation, forgetting the past, burying the hatchet, you are bound to succeed. If you change your past and work together in a spirit that everyone of you, no matter to what community he belongs, no matter what relations he had with you in the past, no matter what is his colour, caste or creed, is first, second and last a citizen of this State with equal rights, privileges, and obligations, there will be no end to the progress you will make. I cannot emphasize it too much. We should begin to work in that spirit and in course of time all these angularities of the majority and minority communities, the Hindu community and the Muslim community, because even as regards Muslims you have Pathans, Punjabis, Shias, Sunnis and so on, and among the Hindus you have Brahmins, Vashnavas, Khatris, also Bengalis, Madrasis and so on, will vanish. Indeed if you ask me, this has been the biggest hindrance in the way of India to attain the freedom and independence and but for this we would have been free people long long ago. No power can hold another nation, and specially a nation of 400 million souls in subjection; nobody could have conquered you, and even if it had happened, nobody could have continued its hold on you for any length of time, but for this. Therefore, we must learn a lesson from this. You are free; you are free to go to your temples, you are free to go to your mosques or to any other place or worship in this State of Pakistan. You may belong to any religion or caste or creed that has nothing to do with the business of the State.

Jinnah would be shocked at what his Pakistan has become. If ever there was a Frankenstein and his monster discussion that I would like to see.

Pakistan Highlands

There are plenty of similarities between the two states. Both went through various periods of martial law, with fragile returns to democracy. Both fashioned themselves as bulwarks against communism in their regions. Both have had to deal with powerful separatist movements (See: Pakistan; see: Aceh, South Moluccas, Papua), both have brutally crushed the insurgencies.  Both have held tacit, albeit quiet, ties with Israel (See: my article on Pakistan-Israel ties; see Israel-Indonesia ties).

I feel some similarities here. The secular nature of vast portions of society and the warmth of the populace.  I feel like Indonesia is quite similar to the Pakistan I got to see firsthand, the Pakistan that doesn’t make the news.  I find it sad that Pakistan is toxic in public diplomacy terms while the majority of its society is closer to that of Indonesia.  I feel like Pakistan could do some wonderful cultural diplomacy with Junoon concerts and events here in supermusical Indonesia; Pakistanis would probably like Indonesia’s inel music that mixes subcontinent and middle east with its own easy Southeast Asian style.  Both would probably dig each other’s gastrodiplomacy, and they could swap cloves for bidis when done with the meal.

Indonesia's sea

There are also some major differences.  Indonesia never has had to deal with existential identity ideas like Pakistan.  And while Indonesia had issues with its neighbor Malaysia, it has had enough sense to let things cool over the years.  Pakistan has also stoked its Islamist elements in ways that Indonesia has never dared; as such, Pakistan find itself repeatedly burned by such fires that Indonesia has stayed away from.  Also, Indonesia’s security services are nowhere near as omnipresent or ominous as Pakistan’s ISI.  There was also an undercurrent of unrest I found in Pakistan (Bedsheet Diplomacy, The Atif Riots, my run-ins with the security service in Multan) that just aren’t here in Indonesia.

For now, I will keep examining.

Source: Levantine18′s blog

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Strong demand, strong economy

Strong demand, strong economy

BMW Indonesia announced that its Jan-Sep 2010 sales have exceeded the 2009 full year sales volume. The company delivered 929 units of BMW vehicles to its customers in the first nine months of 2010, above the 901 units delivered throughout 2009 and 50% more compared to the same period last year.

“We are extremely pleased with the achievement and bullish about our year-end result. The first nine months have been the busiest period for us in introducing 10 new models in the market. Our new BMW X1 and BMW 5 Series are in great demand, as well as the BMW Gran Turismo,” said Ramesh Divyanathan, President Director of BMW Indonesia.

The X models lead the overall BMW growth with 209 units sold compared to 48 units delivered in 2009, confirming BMW’s leadership in the premium Sports Activity Vehicle (SAV) segment in Indonesia. BMW X5 dominates the sales volume with 108 units, followed by the new X1with 58 units, X6 with 34 units and X3 with 9 units.

BMW Advanced Diesel has started to gain in popularity in the market, and as a result BMW Indonesia delivered a total of 41 units of the new BMW X1 sDrive20d to customers. The recent launch of the new BMW X5 that comes with design modifications, new 8 speed Steptronic automatic transmissions and a completely new engine portfolio will boost BMW’s SAV sales in Indonesia. The three new BMW X5 models – X5 xDrive50i, X5 xDrive35i Executive and X5 xDrive30d – are now available for customers at all BMW authorized dealerships.

During the period, BMW Indonesia registered sales increases for all its models, delivering 397 units of the BMW 3 series (+11.2%), 226 units of the BMW 5 Series (+35.3%), 22 units of the new BMW Gran Turismo and 54 units of the BMW 7 Series (+45.9%). BMW Indonesia has also introduced an additional variant of the new 5 Series, namely the 523i Business at the price of Rp. 788.000.000,- off the road in Jakarta.
“Our focus is on sustainable long-term growth and at the same time continuously reducing fuel consumption and CO2 emissions in every unit of BMW we sell in Indonesia. We will expand our BMW Advanced Diesel models and at the same time bring more EfficientDynamics technologies into every model and unit that we sell in the market,” added Mr. Divyanathan.

EfficientDynamics is an integral part of BMW Group’s product substance and corporate philosophy. The EfficientDynamics development strategy, resource-conserving production processes and high social standards of all employees are fundamental highlights of BMW Group corporate philosophy. The commitment has led to BMW Group being ranked “The World’s Most Sustainable Car Maker” six times in a row by the Dow Jones Sustainability Index (2005 – 2010).

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Garuda Indonesia and the Elite Group

Garuda Indonesia and the Elite Group

Flag carrier Garuda Indonesia is set to officially join international airline alliance SkyTeam in a bid to reach its target to become one of the top ten airlines in the world.

The carrier will meet delegates from SkyTeam partner airlines on Nov. 23 in Jakarta to sign an official agreement and discuss detailed practical matters.

Garuda president director Emirsyah Satar said Thursday that after officially joining the alliance, his carrier could fly passengers from the alliance’s partner airlines and vice versa, so the flight frequency of his carrier could be increased.

“It means that our passengers can fly anywhere with one ticket only,” he said as quoted by Gatra magazine, which was published Friday.

He said that joining SkyTeam was an effort from Garuda to provide traveling convenience and more choices for its passengers.

Currently, 13 airlines — Aerosoft, Aeromexico, AirEuropa, Air France, Alitalia, China Southern, Czeh Airlines, Delta Airlines, Kenya Airways, KLM, Korean Air, TAROM, and Vietnam Airlines — have joined the alliance. SkyTeam member-airlines travel to 841 destination cities in 162 countries with 16,409 flights per day.

To join the alliance, Garuda has to fulfill several requirements, such as having a dedicated terminal. The carrier must also fulfill 29 other criteria points covering aircraft numbers, punctuality and passenger-to-airport access.

The state airline has signed an MoU with state airport operator PT Angkasa Pura II, which manages the Soekarno-Hatta International Airport to improve the facilities at 2E and 2F terminals.

Garuda signed another agreement Thursday with state airport operator PT Angkasa Pura I to upgrade the quality of services Bali’s Ngurah Rai and Surabaya’s Juanda airports.

With Garuda Indonesia joining SkyTeam, it means that there is already international acknowledgements on the quality of Indonesia’s airlines.

In 2006, European Union (EU) banned all Indonesian airlines from flying to its member-countries due to safety reasons. In 2009, EU lifted the ban on four Indonesian airlines — Garuda Indonesia, Mandala, Premiair and Air Fast, while in 2010, two other airlines — Indonesia Air Asia and Metro Batavia — have also been allowed to fly to Europe.

Garuda resumed the Jakarta-Amsterdam flights on July 1 with a stopover in Dubai using Airbus A330-200. The airline plans to introduce direct flight services linking Jakarta and Amsterdam once it receives its Boeing 777-300ER aircraft.

Garuda received in January a four-star rating from UK-based Skytrax so that it was on par with airlines such as Air France and Emirates.

In October, it was revealed that a survey by the Centre for Asia Pacific Aviation (CAPA) has found Garuda the best carrier in terms of service quality in Southeast Asia.

The chairman of the Association of Indonesian Tours and Travel Agencies (Asita), Ben Sukma, said that joining an alliance such as SkyTeam would boost the popularity of an airline to an international level.

“In an airline alliance, each member can cooperate and promote each other. Garuda Indonesia will receive huge benefits from that,” he told The Jakarta Post on Friday.

However, he said that flight ease offered by the cooperation would not impact on tour and travel agencies.

Ben added that travel agencies would still prioritize lower prices over convenience and ease for their customers.

Source: JP/Rangga D. Fadillah

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Our Sweet “Sour Sally”

Our Sweet “Sour Sally”

Young and successful is how one would describe Donny Pramono, who has succeeded in turning Sour Sally into a major business in the frozen yogurt industry.

In just one year, Donny has opened 11 Sour Sally outlets in Jakarta, located in Senayan City, La Piazza Kelapa Gading, La Codefin Kemang, Mall Taman Anggrek, FX Lifestyle, Pacific Place, Mall Puri Indah, Mall Emporium Pluit, Plaza Indonesia, Grand Indonesia and Supermall Karawaci.

He plans to expand his business further in the near future by opening outlets in Surabaya and Bandung.

“Next to Jakarta, we will open branches in some major cities in the country as we realize there is a demand for frozen yogurt not only in Jakarta but also in many other cities,” said Donny, who was born in Jakarta on December 30, 1981.

Donny is indeed very happy with his successful business, which is somewhat related to his days of studying in the US. Donny, who is single, said that Sour Sally was born from his liking of frozen yogurt. When he graduated he returned to Indonesia and started his frozen yogurt business, which was not common in Indonesia at the time.

With his family’s full support, Donny conducted research and a number of tests of various frozen yogurts to create the perfect flavor. The fresh toppings he created have made it more delicious.

Yogurt is not only delicious, Donny said, it is also beneficial to health and can help reduce cholesterol. People in the Middle East have consumed yogurt for thousands of years and use it in their cooking.

Donny said yogurt is gaining popularity here and the number of people who consume it is constantly increasing, as are his outlets. Some cafes even include yogurt in their menus. “There are many varieties of yogurt, which has become trendy. Sour Sally’s presence in the past year has also actively contributed to this phenomenon . the yogurt phenomenon, that is,” he said.

After careful research, Donny decided to open his first outlet in Senayan City, Jakarta. The response was beyond his expectations and customers kept increasing every day. This prompted him to open more outlets in the city.

He said the success of Sour Sally required patience and innovativeness. His strategies included preparing a delicious range of yogurt and building a solid team. He also focused on his market segment, which mostly comprised teenagers, young professionals, foodies and those who like to hang out.

He has also had to be creative and never give up in times of difficulty. “When you have a dream you have to believe that you will realize it one day. That way you have the strength to fight for it. At the same time we must also be aware that from time to time there are always impediments, but they should not deter us from striving to reach our dream. In fact, the impediments should spur us on to be innovative and look for the right solutions,” said Donny, who loves to play futsal.

The way he plays futsal and does business are quite similar. “I prefer to be a striker, because a striker keeps moving forward and fights on and he is never desperate,” he said with a laugh. “We also have to maintain good relations with other parties, especially our customers and the media,” he added.

Although already successful, Donny continues to put all his best efforts into his business. He has even received requests to open Sour Sally outlets in other countries. “Of course, I would be extremely proud if this local brand could be successful in other countries, which would mean that Indonesia can create a trend or a brand that is competitive enough there,” he said.

To introduce Sour Sally to the public, Donny created a cute mascot of a little girl called Sally that is readily identifiable with Sour Sally.

While yogurt is sour, Sally is a sweet character, and hence the brand Sour Sally. Starting from its launch, the mascot and brand attracted numerous customers as they fell in love with both the cute little girl, Sally, and the frozen yogurt, Sour Sally, which is sour and sweet in taste yet delicious and healthy.

Sour Sally outlets also offer “Sour Sally Lover Cards” for discounts. Another innovation is the launch of new products, such as the Pinklicious Waffle, which was introduced on Sour Sally’s first anniversary.

The waffle was in fact created in response to customers’ requests. There are also various accessories available in the “Sour Sally Original Collection”, which can be purchased at all Sour Sally outlets.

There are various flavors of Sour Sally frozen yogurt, namely original plain, green tea and twist (original plain and green tea), as well as various fruit toppings, such as strawberry, peach, banana, pineapple, kiwi, lychee, mango, blueberry and strawberry.

Other toppings include nata de coco, mocha, almond, raisins, chocolate chip, Oreo biscuit, corn star, choco balls, fruity pebbles and cookie crisp. Sour Sally is available in small, medium and large sizes.

Donny said his success was due to the strategies he applied and hard work, and he thanks God for the success of Sour Sally. His studies in marketing also played a major role as he believes that a good product should have a good marketing strategy. He also said that good relations should be maintained with everyone, including customers, suppliers and the media.

When asked what success meant to him, Donny simply said success was relative. Some people, he said, considered a 70 percent achievement a success, while others accepted nothing less that 100 percent achievement as success.

“Success is a blessing. For me, it makes me work harder to realize my dream more fully. So don’t stop after one achievement, because success is never ending. There are further achievements to make after one success,” he explained.

So success is only measured based on one’s target. This is the case with Sour Sally, which is successfully developing and has plans to open more outlets in Jakarta and other major cities.

Background

Name: Donny Pramono
Place/date of birth: Jakarta, Dec. 30, 1981
Status: Single

Education
Pennsylvania State University, Accounting
University of LA Verne, CA, MBA Marketing

Experience
Director of PT Berjaya Sally Ceria (owner of Sour Sally)

Source: Jakarta Post (Faisyal Chaniago, Contributor)

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A Much-Needed Shark Sanctuary

A Much-Needed Shark Sanctuary

Indonesia has declared a vast sanctuary for sharks, turtles and manta rays in a region known as one of the world’s richest sources of marine biodiversity, officials and conservationists said Tuesday.

The sanctuary covers 46,000 square kilometres (17,760 square miles) of waters around the Raja Ampat islands in eastern Indonesia, part of the so-called Coral Triangle region of Southeast Asia.

Sharks, manta rays, mobulas, dugongs and turtles are fully protected within the sanctuary, and destructive practices including reef bombing and the aquarium fish trade are banned, local officials said.

Sharks, as apex predators, play a vital role in regulating the health of important commercial fish species, population balance, and coral reefs,” conservation group Shark Savers and the Misool Eco Resort, which are supporting the sanctuary, said in a statement.

“Despite this importance, up to 73 million sharks are killed annually with some shark populations declining by as much as 90 percent, mostly for shark fin soup.

In Raja Ampat, three fourths of its shark species are threatened with local extinction.

Peter Knights, executive director of US-based conservation group WildAid which is backing the project, said: “It?s tragic that so much of Raja Ampat?s biological treasure is destined for consumers who are unaware of the impact.

“Sharks are being killed for their fins, mantas are being killed for their gills, and rare reef fish are being caught for aquariums,” he said.

Raja Ampat marine and fishery office head Yohanis Bercmans Rahawaryn could not provide figures on shark numbers in the area, but said their numbers had “dropped steadily in the past few years”.

“Divers rarely find big sharks around Raja Ampat. That’s the main indicator,” he said.

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Obama’s Remark at the University of Indonesia (Full Version)

Obama’s Remark at the University of Indonesia (Full Version)

REMARKS BY THE PRESIDENT
IN JAKARTA

University of Indonesia
Jakarta, Indonesia

Terima kasih. Terima kasih, thank you so much, thank you, everybody. Selamat pagi. (Applause.) It is wonderful to be here at the University of Indonesia. To the faculty and the staff and the students, and to Dr. Gumilar Rusliwa Somantri, thank you so much for your hospitality. (Applause.)

Assalamualaikum dan salam sejahtera. Thank you for this wonderful welcome. Thank you to the people of Jakarta and thank you to the people of Indonesia.

Pulang kampung nih. (Applause.) I am so glad that I made it back to Indonesia and that Michelle was able to join me. We had a couple of false starts this year, but I was determined to visit a country that’s meant so much to me. And unfortunately, this visit is too short, but I look forward to coming back a year from now when Indonesia hosts the East Asia Summit. (Applause.)

Obama in the University of Indonesia

Before I go any further, I want to say that our thoughts and prayers are with all of those Indonesians who are affected by the recent tsunami and the volcanic eruptions — particularly those who’ve lost loved ones, and those who’ve been displaced. And I want you all to know that as always, the United States stands with Indonesia in responding to natural disasters, and we are pleased to be able to help as needed. As neighbors help neighbors and families take in the displaced, I know that the strength and the resilience of the Indonesian people will pull you through once more.

Let me begin with a simple statement: Indonesia bagian dari didi saya. (Applause.) I first came to this country when my mother married an Indonesian named Lolo Soetoro. And as a young boy I was — as a young boy I was coming to a different world. But the people of Indonesia quickly made me feel at home.

Jakarta — now, Jakarta looked very different in those days. The city was filled with buildings that were no more than a few stories tall. This was back in 1967, ‘68 — most of you weren’t born yet. (Laughter.) The Hotel Indonesia was one of the few high rises, and there was just one big department store called Sarinah. That was it. (Applause.) Betchaks and bemos, that’s how you got around. They outnumbered automobiles in those days. And you didn’t have all the big highways that you have today. Most of them gave way to unpaved roads and the kampongs.

So we moved to Menteng Dalam, where — (applause) — hey, some folks from Menteng Dalam right here. (Applause.) And we lived in a small house. We had a mango tree out front. And I learned to love Indonesia while flying kites and running along the paddy fields and catching dragonflies, buying satay and baso from the street vendors. (Applause.) I still remember the call of the vendors. Satay! (Laughter.) I remember that. Baso! (Laughter.) But most of all, I remember the people — the old men and women who welcomed us with smiles; the children who made a foreign child feel like a neighbor and a friend; and the teachers who helped me learn about this country.

Because Indonesia is made up of thousands of islands, and hundreds of languages, and people from scores of regions and ethnic groups, my time here helped me appreciate the common humanity of all people. And while my stepfather, like most Indonesians, was raised a Muslim, he firmly believed that all religions were worthy of respect. And in this way — (applause) — in this way he reflected the spirit of religious tolerance that is enshrined in Indonesia’s Constitution, and that remains one of this country’s defining and inspiring characteristics. (Applause.)

Now, I stayed here for four years — a time that helped shape my childhood; a time that saw the birth of my wonderful sister, Maya; a time that made such an impression on my mother that she kept returning to Indonesia over the next 20 years to live and to work and to travel — and to pursue her passion of promoting opportunity in Indonesia’s villages, especially opportunity for women and for girls. And I was so honored — (applause) — I was so honored when President Yudhoyono last night at the state dinner presented an award on behalf of my mother, recognizing the work that she did. And she would have been so proud, because my mother held Indonesia and its people very close to her heart for her entire life. (Applause.)

So much has changed in the four decades since I boarded a plane to move back to Hawaii. If you asked me — or any of my schoolmates who knew me back then — I don’t think any of us could have anticipated that one day I would come back to Jakarta as the President of the United States. (Applause.) And few could have anticipated the remarkable story of Indonesia over these last four decades.

The Jakarta that I once knew has grown into a teeming city of nearly 10 million, with skyscrapers that dwarf the Hotel Indonesia, and thriving centers of culture and of commerce. While my Indonesian friends and I used to run in fields with water buffalo and goats — (laughter) — a new generation of Indonesians is among the most wired in the world — connected through cell phones and social networks. And while Indonesia as a young nation focused inward, a growing Indonesia now plays a key role in the Asia Pacific and in the global economy. (Applause.)

Now, this change also extends to politics. When my stepfather was a boy, he watched his own father and older brother leave home to fight and die in the struggle for Indonesian independence. And I’m happy to be here on Heroes Day to honor the memory of so many Indonesians who have sacrificed on behalf of this great country. (Applause.)

When I moved to Jakarta, it was 1967, and it was a time that had followed great suffering and conflict in parts of this country. And even though my stepfather had served in the Army, the violence and killing during that time of political upheaval was largely unknown to me because it was unspoken by my Indonesian family and friends. In my household, like so many others across Indonesia, the memories of that time were an invisible presence. Indonesians had their independence, but oftentimes they were afraid to speak their minds about issues.

In the years since then, Indonesia has charted its own course through an extraordinary democratic transformation — from the rule of an iron fist to the rule of the people. In recent years, the world has watched with hope and admiration as Indonesians embraced the peaceful transfer of power and the direct election of leaders. And just as your democracy is symbolized by your elected President and legislature, your democracy is sustained and fortified by its checks and balances: a dynamic civil society; political parties and unions; a vibrant media and engaged citizens who have ensured that — in Indonesia — there will be no turning back from democracy.

But even as this land of my youth has changed in so many ways, those things that I learned to love about Indonesia — that spirit of tolerance that is written into your Constitution; symbolized in mosques and churches and temples standing alongside each other; that spirit that’s embodied in your people — that still lives on. (Applause.) Bhinneka Tunggal Ika — unity in diversity. (Applause.) This is the foundation of Indonesia’s example to the world, and this is why Indonesia will play such an important part in the 21st century.

So today, I return to Indonesia as a friend, but also as a President who seeks a deep and enduring partnership between our two countries. (Applause.) Because as vast and diverse countries; as neighbors on either side of the Pacific; and above all as democracies — the United States and Indonesia are bound together by shared interests and shared values.

Yesterday, President Yudhoyono and I announced a new Comprehensive Partnership between the United States and Indonesia. We are increasing ties between our governments in many different areas, and — just as importantly — we are increasing ties among our people. This is a partnership of equals, grounded in mutual interests and mutual respect.

So with the rest of my time today, I’d like to talk about why the story I just told — the story of Indonesia since the days when I lived here — is so important to the United States and to the world. I will focus on three areas that are closely related, and fundamental to human progress — development, democracy and religious faith.

First, the friendship between the United States and Indonesia can advance our mutual interest in development.

When I moved to Indonesia, it would have been hard to imagine a future in which the prosperity of families in Chicago and Jakarta would be connected. But our economies are now global, and Indonesians have experienced both the promise and the perils of globalization: from the shock of the Asian financial crisis in the ‘90s, to the millions lifted out of poverty because of increased trade and commerce. What that means — and what we learned in the recent economic crisis — is that we have a stake in each other’s success.

America has a stake in Indonesia growing and developing, with prosperity that is broadly shared among the Indonesian people — because a rising middle class here in Indonesia means new markets for our goods, just as America is a market for goods coming from Indonesia. So we are investing more in Indonesia, and our exports have grown by nearly 50 percent, and we are opening doors for Americans and Indonesians to do business with one another.
America has a stake in an Indonesia that plays its rightful role in shaping the global economy. Gone are the days when seven or eight countries would come together to determine the direction of global markets. That’s why the G20 is now the center of international economic cooperation, so that emerging economies like Indonesia have a greater voice and also bear greater responsibility for guiding the global economy. And through its leadership of the G20’s anti-corruption group, Indonesia should lead on the world stage and by example in embracing transparency and accountability. (Applause.)

America has a stake in an Indonesia that pursues sustainable development, because the way we grow will determine the quality of our lives and the health of our planet. And that’s why we’re developing clean energy technologies that can power industry and preserve Indonesia’s precious natural resources — and America welcomes your country’s strong leadership in the global effort to combat climate change.

Above all, America has a stake in the success of the Indonesian people. Underneath the headlines of the day, we must build bridges between our people, because our future security and prosperity is shared. And that is exactly what we’re doing — by increasing collaboration among our scientists and researchers, and by working together to foster entrepreneurship. And I’m especially pleased that we have committed to double the number of American and Indonesian students studying in our respective countries. (Applause.) We want more Indonesian students in American schools, and we want more American students to come study in this country. (Applause.) We want to forge new ties and greater understanding between young people in this young century.

These are the issues that really matter in our daily lives. Development, after all, is not simply about growth rates and numbers on a balance sheet. It’s about whether a child can learn the skills they need to make it in a changing world. It’s about whether a good idea is allowed to grow into a business, and not suffocated by corruption. It’s about whether those forces that have transformed the Jakarta I once knew — technology and trade and the flow of people and goods — can translate into a better life for all Indonesians, for all human beings, a life marked by dignity and opportunity.

Now, this kind of development is inseparable from the role of democracy.

Today, we sometimes hear that democracy stands in the way of economic progress. This is not a new argument. Particularly in times of change and economic uncertainty, some will say that it is easier to take a shortcut to development by trading away the right of human beings for the power of the state. But that’s not what I saw on my trip to India, and that is not what I see here in Indonesia. Your achievements demonstrate that democracy and development reinforce one another.

Like any democracy, you have known setbacks along the way. America is no different. Our own Constitution spoke of the effort to forge a “more perfect union,” and that is a journey that we’ve traveled ever since. We’ve endured civil war and we struggled to extend equal rights to all of our citizens. But it is precisely this effort that has allowed us to become stronger and more prosperous, while also becoming a more just and a more free society.

Like other countries that emerged from colonial rule in the last century, Indonesia struggled and sacrificed for the right to determine your destiny. That is what Heroes Day is all about — an Indonesia that belongs to Indonesians. But you also ultimately decided that freedom cannot mean replacing the strong hand of a colonizer with a strongman of your own.

Of course, democracy is messy. Not everyone likes the results of every election. You go through your ups and downs. But the journey is worthwhile, and it goes beyond casting a ballot. It takes strong institutions to check the power — the concentration of power. It takes open markets to allow individuals to thrive. It takes a free press and an independent justice system to root out abuses and excess, and to insist on accountability. It takes open society and active citizens to reject inequality and injustice.

These are the forces that will propel Indonesia forward. And it will require a refusal to tolerate the corruption that stands in the way of opportunity; a commitment to transparency that gives every Indonesian a stake in their government; and a belief that the freedom of Indonesians — that Indonesians have fought for is what holds this great nation together.

That is the message of the Indonesians who have advanced this democratic story — from those who fought in the Battle of Surabaya 55 years ago today; to the students who marched peacefully for democracy in the 1990s; to leaders who have embraced the peaceful transition of power in this young century. Because ultimately, it will be the rights of citizens that will stitch together this remarkable Nusantara that stretches from Sabang to Merauke, an insistence — (applause) — an insistence that every child born in this country should be treated equally, whether they come from Java or Aceh; from Bali or Papua. (Applause.) That all Indonesians have equal rights.

That effort extends to the example that Indonesia is now setting abroad. Indonesia took the initiative to establish the Bali Democracy Forum, an open forum for countries to share their experiences and best practices in fostering democracy. Indonesia has also been at the forefront of pushing for more attention to human rights within ASEAN. The nations of Southeast Asia must have the right to determine their own destiny, and the United States will strongly support that right. But the people of Southeast Asia must have the right to determine their own destiny as well. And that’s why we condemned elections in Burma recently that were neither free nor fair. That is why we are supporting your vibrant civil society in working with counterparts across this region. Because there’s no reason why respect for human rights should stop at the border of any country.

Hand in hand, that is what development and democracy are about — the notion that certain values are universal. Prosperity without freedom is just another form of poverty. Because there are aspirations that human beings share — the liberty of knowing that your leader is accountable to you, and that you won’t be locked up for disagreeing with them; the opportunity to get an education and to be able to work with dignity; the freedom to practice your faith without fear or restriction. Those are universal values that must be observed everywhere.

Now, religion is the final topic that I want to address today, and — like democracy and development — it is fundamental to the Indonesian story.

Like the other Asian nations that I’m visiting on this trip, Indonesia is steeped in spirituality — a place where people worship God in many different ways. Along with this rich diversity, it is also home to the world’s largest Muslim population — a truth I came to know as a boy when I heard the call to prayer across Jakarta.

Just as individuals are not defined solely by their faith, Indonesia is defined by more than its Muslim population. But we also know that relations between the United States and Muslim communities have frayed over many years. As President, I have made it a priority to begin to repair these relations. (Applause.) As part of that effort, I went to Cairo last June, and I called for a new beginning between the United States and Muslims around the world — one that creates a path for us to move beyond our differences.

I said then, and I will repeat now, that no single speech can eradicate years of mistrust. But I believed then, and I believe today, that we do have a choice. We can choose to be defined by our differences, and give in to a future of suspicion and mistrust. Or we can choose to do the hard work of forging common ground, and commit ourselves to the steady pursuit of progress. And I can promise you — no matter what setbacks may come, the United States is committed to human progress. That is who we are. That is what we’ve done. And that is what we will do. (Applause.)

Now, we know well the issues that have caused tensions for many years — and these are issues that I addressed in Cairo. In the 17 months that have passed since that speech, we have made some progress, but we have much more work to do.

Innocent civilians in America, in Indonesia and across the world are still targeted by violent extremism. I made clear that America is not, and never will be, at war with Islam. Instead, all of us must work together to defeat al Qaeda and its affiliates, who have no claim to be leaders of any religion –– certainly not a great, world religion like Islam. But those who want to build must not cede ground to terrorists who seek to destroy. And this is not a task for America alone. Indeed, here in Indonesia, you’ve made progress in rooting out extremists and combating such violence.

In Afghanistan, we continue to work with a coalition of nations to build the capacity of the Afghan government to secure its future. Our shared interest is in building peace in a war-torn land — a peace that provides no safe haven for violent extremists, and that provide hope for the Afghan people.

Meanwhile, we’ve made progress on one of our core commitments — our effort to end the war in Iraq. Nearly 100,000 American troops have now left Iraq under my presidency. (Applause.) Iraqis have taken full responsibility for their security. And we will continue to support Iraq as it forms an inclusive government, and we will bring all of our troops home.

In the Middle East, we have faced false starts and setbacks, but we’ve been persistent in our pursuit of peace. Israelis and Palestinians restarted direct talks, but enormous obstacles remain. There should be no illusion that peace and security will come easy. But let there be no doubt: America will spare no effort in working for the outcome that is just, and that is in the interests of all the parties involved — two states, Israel and Palestine, living side by side in peace and security. That is our goal. (Applause.)

The stakes are high in resolving all of these issues. For our world has grown smaller, and while those forces that connect us have unleashed opportunity and great wealth, they also empower those who seek to derail progress. One bomb in a marketplace can obliterate the bustle of daily commerce. One whispered rumor can obscure the truth and set off violence between communities that once lived together in peace. In an age of rapid change and colliding cultures, what we share as human beings can sometimes be lost.

But I believe that the history of both America and Indonesia should give us hope. It is a story written into our national mottos. In the United States, our motto is E pluribus unum — out of many, one. Bhinneka Tunggal Ika — unity in diversity. (Applause.) We are two nations, which have traveled different paths. Yet our nations show that hundreds of millions who hold different beliefs can be united in freedom under one flag. And we are now building on that shared humanity — through young people who will study in each other’s schools; through the entrepreneurs forging ties that can lead to greater prosperity; and through our embrace of fundamental democratic values and human aspirations.

Before I came here, I visited Istiqlal mosque — a place of worship that was still under construction when I lived in Jakarta. And I admired its soaring minaret and its imposing dome and welcoming space. But its name and history also speak to what makes Indonesia great. Istiqlal means independence, and its construction was in part a testament to the nation’s struggle for freedom. Moreover, this house of worship for many thousands of Muslims was designed by a Christian architect. (Applause.)

Such is Indonesia’s spirit. Such is the message of Indonesia’s inclusive philosophy, Pancasila. (Applause.) Across an archipelago that contains some of God’s most beautiful creations, islands rising above an ocean named for peace, people choose to worship God as they please. Islam flourishes, but so do other faiths. Development is strengthened by an emerging democracy. Ancient traditions endure, even as a rising power is on the move.

That is not to say that Indonesia is without imperfections. No country is. But here we can find the ability to bridge divides of race and region and religion — by the ability to see yourself in other people. As a child of a different race who came here from a distant country, I found this spirit in the greeting that I received upon moving here: Selamat Datang. As a Christian visiting a mosque on this visit, I found it in the words of a leader who was asked about my visit and said, “Muslims are also allowed in churches. We are all God’s followers.”

That spark of the divine lives within each of us. We cannot give in to doubt or cynicism or despair. The stories of Indonesia and America should make us optimistic, because it tells us that history is on the side of human progress; that unity is more powerful than division; and that the people of this world can live together in peace. May our two nations, working together, with faith and determination, share these truths with all mankind.

Sebagai penutup, saya mengucapkan kepada seluruh rakyat Indonesia: terima kasih atas. Terima kasih. Assalamualaikum. Thank you.

Thanks to US Embassy – Jakarta!

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Green Cities Are Indonesia’s Future

Green Cities Are Indonesia’s Future

I can tell you that Indonesia is home to newly built cities scaterred over the nation, where modern, green, and well-planned buildings, offices, and city layout is a must. In Jakarta and its surrounding area, there are tens of such cities covers an area 10 times larger of Singapore. Bintaro Jaya, Kota Modern, Kota Wisata, Harvest city, Jakarta Garden City, BSD, Kelapa Gading, are some examples just to name a few. One of the major and most ambitious new city and urban planning is BSD, stands for Bumi Serpong Damai.

BSD Biz District - Outshining Downtown Jakarta?

An area half the size of Paris, BSD City is the most ambitious urban planning scheme in Indonesia to combine housing, business and commercial properties. BSD City encompasses a total area of approximately 6,000 hectares. With around three quarters of the available land yet to be developed, this huge scheme represents a unique investment opportunity.

Another spot in BSD

BSD has been developed over the last 19 years. Since 2003 this gigantic project is fully managed by the Sinarmas Developer and Real Estate, a subsidiary of Sinarmas, one of the leading developers in Indonesia. First rate infrastructure and complete facilities. The best quality homes. A culture that is pro-business. A professional management team that is committed equally to both citizens and shareholders.

Roadmap ahead - BSD

BSD is transforming itself to be a very modern and green city, and set a benchmark for independent, self-sufficient, green, and well-planned city. No wonder, many people say that BSD will likely be outshining Jakarta downtown sometimes in the future. Well, we’ll see.

Sinarmas Land Building - Ecogreen in a green city

Source: www.bsdcity.com

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Why Australia Worries About Indonesia

Why Australia Worries About Indonesia

What country is most likely to upset American-Australian relations in the near future? One would be inclined to think of China but Michael Wesley, executive director of the Lowy Institute for International Policy, doesn’t think so.

At The Interpreter, Wesley points to “the Jakarta factor” instead. Indonesia was responsible for the most serious rift in relations between Canberra and Washington, he notes, back in the early 1960s, “when the Americans decided that Cold War interests were more important than backing their mates’ opposition to Jakarta’s annexation of West Irian.”

Things may seem to have moved on. Indonesia has no outstanding territorial claims, and it’s a democracy now. And even though President Barack Obama spent part of his childhood there, it’s still a major effort to get the Americans to think seriously about Indonesia.

Although consumer confidence in Indonesia was back up to prerecession levels in March of this year already, the island nation has yet not entirely recovered from the Asian financial crisis of the previous decade. Susilo Bambang Yudhoyono, president since 2004, has made serious efforts at reforming Indonesia’s obstructive regulatory environment, including measures to fight corruption, but impediments to economic growth remain. Investment, both foreign and domestic, is curtailed by government interference while judicial enforcement can be erratic and nontransparent. Nevertheless, Indonesia is doing better than a few years ago and, according to Wesley, that’s why it’s likely to clash with Australia eventually.

Australia and Indonesia get on because of the long-running balanced disparity between the two countries. Australia is small but wealthy; Indonesia is huge but poor. Indonesia has a huge army but small naval and air forces; Australia has a small army but potent naval and air capabilities. As Hugh White says, the Australian army could get to Indonesia but do nothing once it got there; the Indonesian army could overrun Australia but can’t get here. So we just accept each other and get along.

As Indonesia rises, being admitted into the G20 and recognized by the United States as a potential partner across the Pacific in counterbalancing China’s revisionist maritime claims in the Southeast Sea, Australia risks being sidelined.

Different countries across the region share a concern about China’s rapid growth and assertiveness. That is why the Vietnamese, for instance, have shown an interest in the Quadrilateral Initiative which Australia, India, Japan and the United States launched in May 2007 in Manilla. The country has since participated in naval exercises with the US and negotiated a nuclear cooperation treaty with the Obama Administration.

Japan, too, has been strengthening ties across East Asia, organizing military exchanges with Vietnam, building subways in New Delhi, and making a stance along with South Korea when the North sunk one of its ships in May. Indeed, “the Japanese and Koreans have their hands full helping India and Vietnam,” according to Wesley. “This leaves the US as most likely to awake to the strategic sense of helping Indonesia emerge as a great power.”

Wesley, writing from Australia, has reason to be concerned. “Are we sure our friends in Washington, entering a deepening spiral of strategic competition with Beijing, would take account of our strategic interests before investing in Indonesia’s strength?” The answer is probably no, though one shouldn’t worry too much about China’s navy and its posturing.

Plenty in Washington do worry however, whether they should or shouldn’t, and this should worry Australia in turn, especially with the Rio Tinto affair of last year still fresh in mind. One can hardly blame the Australians for dreading China rather more than we do, halfway across the globe. But with Australia, at the same time, invested in international peacekeeping, particularly in Afghanistan; dedicated to the War on Terror; and with the ANZUS Treaty firmly in place, Canberra hasn’t too much to fret about. If worse comes to the worst, America is rather more likely to pick sides for a prosperous, trustworthy ally than a country that just emerged out of semi-dictatorship ten years ago.

Nick Ottens is a graduate student at Leiden University, the Netherlands with a BA in History. He is especially interested in the later period of European imperialism and wrote his thesis on the causes of the First Anglo-Afghan War. He sympathizes with classical liberalism and blogs about politics and economics at Free Market Fundamentalist.

Source: Atlantic Sentinel

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Obama:”I Am Home”

Obama:”I Am Home”

US President Barack Obama finally made a much-delayed return to his boyhood home of Indonesia on Tuesday, seeking to engage Muslims and cement strategic relations on the second leg of his Asia tour.

Obama arrived in Jakarta under stormy skies on Air Force One from India, as his nine-day Asian odyssey took him from the world’s largest democracy to its most populous Muslim-majority nation.

The president spent four years in Indonesia as a boy with his late mother, but he will have little time for tourism on the 24-hour visit which will focus on improving ties with the Muslim world and courting opportunities for US companies.

White House spokesman Robert Gibbs told reporters that volcanic ash spewing from Mount Merapi in central Java could force Obama to make the whirlwind trip even shorter, but said a speech scheduled for Wednesday would still take place.

Jakarta was a leafy backwater still dotted with rice paddies when Obama last set foot in the city 39 years ago. Now it is traffic-snarled metropolis whose population swells up to 20 million people with its daily intake of commuters.

But Obama’s old schoolmates say they clearly remember the chubby boy they called “Barry”.

“I believe that he still remembers us although we haven’t met for about forty years,” one classmate, Sonni Gondokusumo, 49, told AFP.

Obama showed off some of his Indonesian language skills when he asked Foreign Minister Marty Natalegawa “apa kabar?”, or “how are you?”, as he greeted officials at the airport.

As lightning forked across the sky, his motorcade cut a swathe through Jakarta’s notorious traffic as he headed to the palace and into talks with President Susilo Bambang Yudhoyono, expected to focus on security and economic issues.

“It’s great to be here. It’s wonderful to see you all,” Obama told assembled dignitaries, before entering the palace where he sat to sign a visitor’s book.

The next day, Obama is scheduled to visit the Istiqlal Mosque, Southeast Asia’s largest, and leverage his popularity with an open-air speech to the Indonesia’s 240 million people, some 200 million of whom are Muslim.

Security has been beefed up in a country that has fallen victim to a number of deadly terror attacks in recent years, with about 8,500 security personnel, including the military, deployed in strategic locations across Jakarta.

US officials say that, just as with Obama’s trip to India, his visit to Indonesia is designed to reinvigorate relations with an “inspiring” emerging democracy and an economy with a key role to play in the early 21st century.

Indonesia is Southeast Asia’s biggest economy and is seen as a key strategic partner for the United States as it faces 21st-century challenges like the rise of China and the threat of radical Islam.

“We’ve had this focus on Asia and on emerging powers and on democracies as kind of cornerstones of the kind of strategic orientation of the United States in the 21st century,” Obama speechwriter Ben Rhodes said.

“India fits firmly in that category and so does Indonesia.”

Obama’s speech on Wednesday has the twin aims of engaging Indonesians on their embrace of democracy and the free market following the fall of the Suharto dictatorship in 1999, and of renewing dialogue with Muslims opened at his landmark Cairo address last year.

An embarrassed Obama cancelled two previous attempts to visit Indonesia earlier this year, as domestic crises intervened, and his snatched day in the country where he lived for four years as a boy may disappoint his hosts.

Originally, Obama had planned to show his family fondly remembered haunts of his youth, but given his diminished political standing following mid-term elections a wallow in nostalgia abroad would be a political step too far.

For a few days this week, it seemed Obama’s visit could be in doubt again, after Mount Merapi spewed ash high into the skies and raised fears that Air Force One would be unable to land in Jakarta.

But international flights to the city returned to normal on Tuesday, even as the volcano continued to belch debris and deadly gas some 430 kilometres (270 miles) to the east.

A total of 151 people have lost their lives since Merapi began its latest cycle of eruptions on October 26, and more than 300,000 have been forced to flee their homes.

Source: AFP

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