EU-ASEAN - · EU-ASEAN: Future More than 40 ... ASEAN 4,464,322 km2 Total Area 10 Countries ... Also ASEAN will have to focus on its institutional setup. In a recent interview to

EU-ASEANA Promising Future

Politics: Indonesia’s Contribution to Fight Climate Change

EKONID Special:The Clean Batik

Initiative

Portrait:Introducing the

Work of DEG

VOL. XIX / 1 / 2010

the MAGAZINe OF the INdONesIAN-GerMAN ChAMber OF COMMerCe ANd INdustry

SOROTAN 2010/1 1

P R E F A C E

Dear Reader,The first three months of 2010 already showed that we are at the beginning of an exciting year, full of events, projects and hot topics.

One of them is definitely ASEAN. With the importance of ASEAN growing, Jakarta, as the seat of the ASEAN Secretariat, is moving into the centre of attention. At the same time, the EU has ratified the Lisbon Treaty, in the hope of bringing the member states of Europe closer together. This is why we felt, it was time to focus on ASEAN and the EU in our title story and to highlight new trends in cooperation between the two regions. In our Interview Special, Jan Willem Blankert, ASEAN-Advisor of the EU, reflects on why, in his opinion, cooperation between the two is so important.

Another relevant and much debated issue of these first few months of 2010 was the free trade-agreement between ASEAN and China (CA-FTA), which was put into act at the beginning of the year. Necip Bagoglu, economic correspondent of Germany Trade and Invest, shows in his article, what this treaty is all about and why reactions are controversial.

In March, leaders from around the world met on Bali for another round of discussions about the environment. According to the participating German Minister of Environment, Dr. Norbert Röttgen, the major question was on how to proceed in the fight against climate change, after the failure of the Copenhagen Conference. Christina Schott, German correspondent based in Yogyakarta, writes in her article about the role of Indonesia in the fight against climate change.

We at EKONID have been busy in preparing the launch of The Clean Batik Initiative. Learn more about the newly introduced EU-project – in our EKONID Special. We have also been preparing a full relaunch of our SOROTAN magazine, which you are holding in your hands. I am happy to present to you the first English edition, packed with versatile, informative topics and fun to read articles.

Enjoy your read!

Yours

Jan H. RönnfeldManaging Director

2 SOROTAN 2010/1 SOROTAN 2010/1 3

4 SOROTAN 2010/1 SOROTAN 2010/1 5SOROTAN 2010/1SOROTAN 2010/1

T A B L E O F C O N T E N T

06Title Story:

EU & ASEAN06 A promising future by Katrin Sohns10 “Perhaps we wanted too much” An interview with Jan Willem Blankert14 The treaty of Lisbon: EU states finally united by Sonja Drexl-Trautmann & Kei-Lin Ting-Winarto

16Economy: China and ASEANAt the beginning of 2010 the new Free Trade Agreement between China and ASEAN became fully operational. Many Indonesian enterprises fear that the market could be flooded with cheap products from China by Necip Bagoglu

20Politics: After CopenhagenIndonesian policy makers have assumed an active role at international conferences on measures to counter climate change. Yet, environmental organizations demand that more should be done within the country by Christina Schott

38EKONID News38 Events44 New members44 Upcoming events45 Publications46 Job Market

48Member News48 PT Siemens Indonesia presents “Media Award 2009” to 13 journalists 48 DB Schenker receives accreditation49 Yayasan Allianz Peduli launching event 49 BMW Indonesia opens new office premises

54Culture: Book Review

No air conditioning, no modern communication? Without the luxury we know today Horst Geerken spent 18 years since 1963 in the exotic chaos of Jakarta. The book, “Der Ruf des Geckos” reflects his colorful memories

by Jasmin Abschütz

50Trade Fairs

30EKONID Special:

Cleaner Batik30 Batik between tradition & industrialisation by Teguh Sudarisman34 Introducing a new initiative by Martin Krummeck36 CBI Inauguration

24Legal: New V.A.T. Law

A new tax law will bring changes in the area of services, tax refunds as well as in

the assessment and collection of Value-Added Tax

by Sonja Drexl-Trautmann & Mareike Münnig

26Portrait: DEG

This time in our series German institutions: The DEG, a German

organization, financing investments in the private sector of developing countries

by Britta Weck

Biofach 2010 50 Trade fair calendar 52


T I T L E S T O R Y

E U & A S E A N

EU-ASEAN:

FutureMore than 40 years have passed since Thailand, Singapore, Indonesia, Malaysia and the Philippines established the Association of South East Asian Countries (ASEAN) to promote political stability, economic revival and social progress in their region. Since then the number of members as well as the economic and political importance of the community have grown. ASEAN is a significant regional factor and could thus become an important partner for the EU. In the last ten years India and – to an even greater extent – China have distracted international attention from Southeast Asia.

At present ASEAN is being heavily courted, primarily by its neighbours. On January 1 the biggest (according to the population) Free Trade Agreement (CA-FTA)

came into effect, bringing together China and the ten ASEAN countries. Plans are already afoot to expand this Free Trade Zone. The so called “Asian Tigers” who had been prematurely written-off by some in Europe during the Asian Crisis at the end of the 1990s have bounced back, more confident than ever before.

The CA-FTA is perceived by some as the last of four steps with which ASEAN has systematically positioned itself and strengthened its role in the world: The establishment of ASEAN in 1967 was a direct reaction to the Vietnam War. The association wanted to counter the Eastern Bloc and the communist People’s Republic of China. In the Bangkok Declaration, which is considered the official founder’s charter, the five founder members pledged to support economic growth, peace and stability in the region.

Following the principle that ASEAN’s size would also determine the importance of the region, more members were incorporated in the first step. After the entry of Brunei in 1984

Vietnam, Laos, Myanmar and Cambodia were accepted in the latter half of the 1990s.

Another leap ahead was the creation of an ASEAN Free Trade Area (AFTA) in 1993 to strengthen and improve the economic relations within the region. The primary goals were to increase the region’s competitive edge as a production base in the world market. This was partly achieved by eliminating tariff barriers within the ASEAN. Another aim was to attract more direct investment to the region.

Finally the ASEAN Regional Forum (ARF) was created in 1994, which has established itself as the most important platform for security policy discussions in the region. The ARF’s importance has also been consolidated by the fact that it is used as a forum by ASEAN’s dialogue partners, among them China, Japan, South Korea as well as America, Russia, India and Australia. In addition, ASEAN also provided the inspiration for the East Asian Summit which is laying the foundation for an East Asian association. Other regional tie-ups which are currently in the pipeline, such as an Asia Pacific Community, are also based on ASEAN.

Author: Katrin Sohns

A Promising

493Population Growth0,11%

Official languages23

Million People

15Trillion GDP

US$

1,9%

ASEAN4,464,322

km2 Total Area10Countries

Population of the largest city in ASEAN:

Jakarta (9.06 million)

Million People575

1,2Population GrowthTrillion GDP

Official languages10

EU 27 Countries

4,324,782 km2 Total Area

Population of the largest city in Europe:

London (7,51 million)

SOROTAN 2010/1 76 SOROTAN 2010/1

8 SOROTAN 2010/1

Today ASEAN is an interest group comprising ten countries, 575 million people and a Gross Domestic Product of US$ 1.2 trillion. Its highest decision-making organ is the annual summit conference (ASEAN Summit). The chair of the ASEAN summit and the ministerial conferences changes each year: it is held by the member states in rotation following an alphabetical order. The most important permanent organ is the ASEAN secretariat in Jakarta.

This institution is also expanding with its increasing importance. Since the beginning of the year, newspapers from the capital have been debating whether Jakarta could become the “Brussels of the East” in the near future. Jan Willem Blankert, EU’s ASEAN expert, does not consider it desirable. “Jakarta is much bigger and more exciting. The city shouldn’t model itself on the small and sleepy Brussels,” he says with a smile on his face. He adds that the structures of the EU and ASEAN are not similar. Hence, the influence of the ASEAN expatriates and diplomats on the city will remain within reasonable limits.

Yet the plans are ambitious: By 2015 the ASEAN member states want to set up an ASEAN Economic Community (AEC). Further plans include addressing trans-regional problems like environmental pollution, drug and human trade as well as strengthening ASEAN’s identity. The latter may well be among the biggest challenges, given the pronounced heterogeneity which is an integral feature of ASEAN. One important step in this direction was the ASEAN Charter which became effective in 2008 after lengthy debates.

ASEAN’s activities have escalated so rapidly that the need for consolidation is already being expressed. Also ASEAN will have to focus on its institutional setup. In a recent interview to the Brunei Times Malaysia’s International Trade and Industry Minister Mustapa Mohamed emphasised: “There is the need to restore ASEAN’s credibility and to do that we got to put our house in order.” And ASEAN’s Secretary General Surin Pitsuwan said: “ASEAN’s centrality will have to be sustained by the consolidation of its achievement. We are on track and we are talking about how to coordinate among ourselves to project our voices and profile on the world stage.”

The level of institutionalism differs greatly from that of the EU. This is partly due to the fact that ASEAN does not want a supranational organisation. But nevertheless the EU is considered an interesting model.

Many comparisons have been drawn between EU and ASEAN. Both associations bring together nations which had once been at war with each other; both consist of medium-sized and

smaller countries which have to adapt to being overshadowed by major powers; both are pursuing similar goals of cooperation and the surmounting of barriers.

Yet there are also obvious differences – apart from the level of institutionalism. While the EU focuses on integration – and relinquishes national rights to sovereignty in favour of Brussels – ASEAN prefers a strengthened cooperation between the governments in its member states; in other words cooperation between sovereign states.

This approach is also reflected by the fact that the ASEAN members are much more diverse than those in the EU – beginning with their level of development and their social disparities, all the way up to their religions and forms of government. While the EU only recognises democracies – in fact making this form of government a precondition for accession – ASEAN includes young democracies like Indonesia, a constitutional monarchy like Thailand, authoritarian states like Malaysia and Singapore, communist single-party systems like Laos and Vietnam – and last but not least the military Junta in Myanmar.

The latter, in particular, has hampered the EU and ASEAN from coming closer to each other since Europeans attribute a great degree of importance to human rights. The elections scheduled for later this year – however imperfect they might turn out to be – have raised hopes for a gradual change in Myanmar – which could perhaps also remove the hurdles between the EU and ASEAN.

This is crucial not only for ASEAN but also the EU. Even though the EU is currently the biggest trading partner of Asia, the EU should not sit back and wait. Asia is being courted by many. With great self confidence it is building on a set-up that will shape its regional structures for decades. The EU must articulate its own interests and be in constant dialogue with the region. Otherwise it faces the risk of being the odd one out.

Katrin Sohns is the Editor of this magazine. After moving to Asia in 2008, she has worked as an editor and freelance author, mainly focusing on the relationship between Europe and Asia.

T I T L E S T O R Y

E U & A S E A N


Jan Willem Blankert of the European Commission in Jakarta emphasizes that both EU and ASEAN aspire to a political,

economic and culture integration. Yet method and pace are very different.

Jan Willem Blankert of the European Commission on similarities and differences between EU and ASEAN

“Perhaps we wanted too much”

Jan Willem Blankert works as a Special Advisor for the relationship of the EU and ASEAN for the European Commission (EC) in Jakarta. As the author of the book “China Rising – Will the West be able to cope?” and an expert in his field, Blankert is closely watching the changes in the cooperation between ASEAN and the EU.

Mr. Blankert, how would you summarize the idea behind ASEAN when it was founded? Do you feel EU and

ASEAN share a common ground?

In the beginning ASEAN was mainly politically driven. It was preceded by SEATO, the Southeast Asia Treaty

Organisation, which in a sense was a sort of South-East-Asian NATO. The creation of ASEAN, in 1967, was in the first place to safeguard members against interference. The EU and ASEAN both share the idea of contact: The aim is to keep on talking. At least this ensures that you don`t fight with each other.

Gradually the wish for greater economic integration emerged. And as for today, I also feel that the aims of ASEAN is very similar to those of the EU. ASEAN, just like the EU, includes in its charter the “single market” – an EU word after all. Both the EU and ASEAN aspire to a political, economic and cultural integration.

However, the methods are very different and therefore the pace is different but the goals and the values are very similar.

Where do you see differences between ASEAN and EU?

One difference I see is that the EU, from the beginning, was more about economic drive. The aim was political,

the instrument was economic. For the EU it was the idea of a peace-treaty (“no more war”) which was to be achieved by economic interdependence and regulation. ASEAN was

initially more political driven and only gradually the economic aspect, the idea of economic integration, came in.

Another big difference is the way new countries are taken in. The EU has strict entrance-criteria. You may say that for the EU you have to do an exam and the exam is pretty tough. Only when you have done the homework and everything is in place according to EU standards, you are, or may be, let in.

ASEAN in contrast has the philosophy that by living together in one house, each country will “learn the language”. With Myanmar this was the clearest case. It was not easy and until today it is not easy. The term used is “positive engagement”, meaning “we don`t keep them out and tell them what to do.” That of course is a very different approach.

It is related to the idea of not interfering with each other’s state matters – another difference between ASEAN and the EU. Every state has the right to its national existence free from the interference of others. Of course one has to keep in mind that the EU has always been a group of democratic countries. ASEAN in that way has been much more tolerant. ASEAN is a club of very different countries with very different political systems.

One very big difference seems to be the sheer number working for the two institutions.

If you were trying to compare, if you were trying to find common ground, then you could say for the EU it is

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10 SOROTAN 2010/1

E U & A S E A N

Interview: Katrin Sohns

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the European Commission and for ASEAN it is the ASEAN Secretariat. For the ASEAN Secretariat there are 270 people working. For the European Commission it is some 32,000. You could also say the ASEAN Secretariat is more like the Council Secretariat in Brussels. There they have I think 3500 to 4000 staff but still you have a different number.

These figures show that the EU has a much larger bureaucracy. I feel that in ASEAN the institutions, the “engine rooms of the integration process”, are perhaps too small. The engine has a small capacity to move the ambitious project.

Also some refer to the ASEAN Charter. Have you seen it? It is a charmingly little book. So some say: This is our charter. It is so slim. We don`t need a big bureaucracy: slim charter, lean organisation. It is a nice idea.

But, nice as it may sound, ASEAN still has to implement and set up many things. Its institutional set up is modest when you consider its ambitions.

What other challenges is ASEAN facing compared with the EU?

The EU started with modest ambitions and strong institutions. ASEAN’s ambitions have grown, as I said

they are similar to those of the EU, but its institutions are still very modest. Not least the fact that decisions have to be based on consensus.

Another point: you may say that the EU makes its life easier by working with strict entry criteria. The EU had the advantage that it started with fairly similar countries. The first six were more or less at similar levels, with Italy being the poorest one. These richer economies were able to help the poorer countries who were taken in step by step. In ASEAN the two rich countries are relatively small: Singapore and Brunei. I refer to the problem of the huge income differences, the living conditions, which are much larger in ASEAN than in the EU.

Last but not least I would like to mention the different religions that are represented in the ASEAN countries.

In your point of view, is the EU a model for ASEAN?

There are a number of cooperation programs running, to show ASEAN as an institution how the EU dealt with

certain issues. Often this concerns fairly technical matters. A good example is a new program on statistical matters. A group

of statistical officers from ASEAN were invited to Europe, simply to show them how the EU deals with certain matters. At a higher political level there is open dialogue between the member states of ASEAN and the EU. On the ASEAN side one ASEAN country is appointed as the Coordinator of ASEAN-EU relations. Until last year this was Cambodia and now it is Brunei, until 2012. One example of the cooperation: in April the ASEAN Committee of Permanent Representatives, a group of ten Ambassadors, will be in Brussels and Berlin for one week to see the EU “engine room”.

Maybe in another way ASEAN can learn from the EU, also from the mistakes that were made: There was one major mistake in the process of EU: Everyone thought that it was all fine, that all citizens would love the EU. Only at a later stage political leaders became aware that it is actually not so, that citizens felt

disconnected. Now we have something called the “Euro-Barometer”. Every three months Europeans of all member states are asked what they like and what they don’t like about the EU.

ASEAN is very interested in the contact to its citizens. ASEAN has the

idea that much earlier, from the beginning, they want to reach out to the people, they want to make it a citizen`s ASEAN. So here, the “Euro-Barometer” might be an interesting tool for ASEAN.

There are many other examples. You have to keep in mind that it is very often about very technical matters: How do you organize that? How do you deal with that? Statistics, standards for food production. It`s about nuts and bolds, as I like to say.

When people from ASEAN are asked about the EU, I very often hear the sentence: “You are not our model you are our inspiration.” I think that describes our relationship fairly well.

Do you feel that people in Europe are aware of ASEAN as an institution and of their work? Do you feel the

exchange between EU and ASEAN has increased?

Even within Europe the work of the EU is often fairly unknown. I am afraid that with ASEAN as an institution,

this is even more the case.

As for the institution of the EU, yes I do have the feeling that the awareness for ASEAN has increased and this has really changed during the last few years. Of course China for example is still more “hot” but I do see a change in the

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“The EU for ASEAN is not model but

inspiration.”

T I T L E S T O R Y

awareness. More and more the EU is working with the region; the EU is asking how we can standardize products and markets and how also ASEAN and EU can work closer together. As for public awareness I am afraid that ASEAN is not yet a household name in Europe.

During ASEAN Summit meetings in 2009 Free Trade Agreements were ratified. Also China and the ASEAN

countries have agreed to establish a Free Trade Zone of China and ASEAN – ACFTA. Where does this leave the EU? Were the talks with the EU and ASEAN not a major failure?

As for the talks between the EU and ASEAN, I think the EU wanted too much at once, we were too ambitious.

We wanted much more than ASEAN could cope with. ASEAN was not ready for all these extras. So it was incompatible: ASEAN was trying to keep it fairly simple while we had higher ambitions. And that was where – at least in my reading – it failed. Had we gone for something simple, it could have worked. Now we work bilaterally, with ASEAN members that are ready to commit to something more ambitious. In March we will begin with Singapore. But let me stress that we see this in a regional context, our aim is to have a regional agreement.

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What about Asia`s interest in the EU?

As for China let me look back a few years: In October 2003, the EU-commission had its policy paper on

China. Also China issued for the first time ever, a China-EU policy paper. I believe that China had high expectations of the EU. I also believe that for China it was very relevant to look at the EU`s enlargement and how we dealt with former communist countries. China has always been aware that it needs economic reform and it works on it. At the time there was a very nice article in the Far Eastern Economic Review which titled: China`s love affair with Europe. The expectations were very high, unfortunately the EU didn`t deliver on all points and the two grew a little more apart again. So you could say we missed the chance. But may be the two partners also weren`t ready yet.

As for Indonesia I would say that the EU is fairly well seen. Especially the elite is very keen on dialogue. They push us to establish things. And also ASEAN: It is very clear that what we do, what we seek to do together is appreciated and they are looking towards Europe. So with ASEAN and even more with Indonesia, should we now say that we are in a new “love affair”? If so, I hope this time the love affair will last longer.

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FrankfurtOn March 1, 2010 the six members of the German

Chamber of Industry and Commerce Network (AHK) – Indonesia, Malaysia, Philippines, Singapore, Thailand

and Vietnam – opened a new ASEAN office in Frankfurt. Sandra Obermeier, who has several years of experiences in Asia from different management-level positions in the economic field, will provide information and advice for the whole of Germany about the prospects and entry-level career opportunities in the ASEAN region.

AHK-ASEAN-OfficeMs. Sandra Obermeierc/o IHK Frankfurt am MainBörsenplatz 460313 Frankfurt am Main

Phone : +49 69 2197-1271Email : [email protected]

E U & A S E A N

EKONID opens ASEAN office in


The Treaty of Lisbon:

finally united

In the past, leaders of the European Union have often been divided. With the Lisbon reform treaty, which was finally put into force on the of December 1, 2009, hopes are high that EU member states will move closer, together forming a more powerful voice on the world stage.

Since December 1, 2009 the Treaty of Lisbon has become the legal basis of the European Union. It represents an internationally recognised contract between the 27

member states of the European Union. Initially known as the Reform Treaty, it was signed by the heads of state and governments of the member countries in Lisbon on December 13, 2007. However, the original date of commencement, planned for January 2009, was delayed since the treaty was rejected by the people in the first referendum in Ireland. It was only in October 2008 after repeated public opinion polls that the Irish people finally gave their consent. On December 13, 2009 the Czech instrument of ratification – the last among the 27 instruments – was also deposited with the Italian government in Rome, paving the way for the Treaty of Lisbon. In Germany the Federal President signed all the necessary laws on September 23, 2009 after the Federal Constitutional Court endorsed the treaty with certain conditions and these conditions were fulfilled in time for its ratification.

At the last reworking of the European treaties in Nice in 2000 the European heads of state and governments already knew that an amendment would be required, especially in view of the imminent eastward expansion, for the EU to remain capable of acting. Hence, the next step towards a reform treaty was merely a question of time. For this purpose the European Council instituted a European convention which was originally supposed to come up with a common constitution for Europe. This plan failed because of the opposition of the French and Dutch populations in the year 2005.

However, since the need for a reform remained the heads of state and governments eventually settled on the Treaty of Lisbon which henceforth included the major innovations proposed in the original EU constitution. It represented an amended treaty replacing the Treaty of Nice, which had come into force on February 1, 2003, and was based on the Treaty on the European Union (EU-Treaty) and the Treaty establishing the European Community (EC-Treaty). The latter was later renamed as the “Treaty on the Functioning of the European Union”.

The Treaty of Lisbon governs the principles on which the EU is structured, as well as the functions and powers of the seven EU organs (European Parliament, European Council, Council of Ministers, European Commission, Court of Justice of the European Union, European Central Bank and European Court of Auditors) whereby the European Parliament, the European Council and the European Commission remain, as always, the main players.

The amendments will primarily safeguard the European Union’s ability to act and ensure more transparency with respect to decisions. An improved continuity in policy work will essentially be achieved by the appointment of a full-time President of the European Council for 2.5 years; so far the tenure was only 6 months. Majority decisions now require the so called “double majority” (i.e. 55% of the member states and 60% of the EU population must agree). Policy areas which do not require unanimous decisions and where majority decisions suffice will be significantly expanded.

T I T L E S T O R Y

EU states Since there is no distinction between the European Union and European Community now and the former exists as a legal entity in its own right, the Union will henceforth be able to project itself as one entity, conclude treaties and agreements and even join international organisations en bloc.

Through the Treaty of Lisbon the European Union’s Charter of Fundamental Rights has become legally binding – even if it is only through a reference in the treaty. Exceptions apply only to Great Britain and Poland, although the Czech Republic is also seeking the same status. The EU’s Charter

of Fundamental Rights guarantees its citizens all the rights which the Germans already enjoy, thanks to their Basic Constitutional Law.

The treaty also specifies the political responsibilities of the Union and its member states. In principle the European Union should only step in, if the member states cannot dispose of a matter equally well, or even better, at the national level. As far as possible all decisions should be made at the lowest political level. Hence, a call for action by the Union should arise only if a joint decision is required.

In addition, the decision-making procedures have been significantly simplified. Normally the European Council and the European Parliament enjoy equal powers in the European legislation. The rights of the European Parliament have been greatly expanded through the new agreement, which has also strengthened the democratic foundation of the Union. For the first time ever in its history, the citizens of the European Union can directly elect a representative of the people.

Besides being an expression of the right to co-determine, this measure also addresses the Parliament’s hitherto criticised lack of closeness to its citizens. The European Union was often accused of having a certain “ivory-tower approach” – a critique which should now become a thing of the past. With this step the Union has finally become down-to-earth.

Furthermore the Treaty of Lisbon provides for the office of a High Representative for the Common Foreign and Security Policy. For the first time ever the functions of the EU Minister for Foreign Affairs and the EU Commissar for Foreign Affairs

will be combined – a step which should ensure a unified stand by the EU in the field of foreign affairs.

It remains to be seen whether the expectations associated with the Treaty of Lisbon will be fulfilled. What matters at present is that the European Union can finally act as an entity and emerge as a bearer of rights and duties. As stated often elsewhere, treaties must prove themselves in practice. There will certainly be further modifications, not least because the community will expand even further. In any case, the conclusion of the treaty was an important step towards European unity which will eventually enable Europe to meet the requirements of the new power relations and global challenges of the 21st century.

Sonja Drexl-Trautmann is Head of the Department Corporate Services at EKONID, focusing on consulting in corporate and investment issues.

Kei-Lin studied Law at the Free University Berlin, focusing on international private & comparative law. She recently worked for the Corporate Services Department as part of her university studies.

Author: Sonja Drexl-Trautmann & Kei-Lin Ting Winarto

E U & A S E A N

© European Union

Institutions of the EU


Indonesia’s industry

fears an invasion from the North

E C O N O M Y

The Free Trade Agreement between ASEAN and China, which became fully operative at the beginning of 2010, has met with mixed reactions in the Indonesian industrial circles. While some manufactures expect the expansion of the market to yield new opportunities, an overwhelming majority are sceptical about this liberalisation. Quite a few firms in the area of textiles, apparel, petrochemicals and electronics see the overpowering Chinese competition as a threat to their very existence.

For many Indonesian enterprises in the manufacturing industry the New Year has begun with fears for their existence. The Free Trade Agreement between ASEAN

(Association of South East Asian Nations) and the People’s Republic of China which came into effect on January 1, 2010 was celebrated by the governments of the participating nations as an important breakthrough in the liberalization of trade in Asia. The increased competition is expected to lower consumer prices. At the same time, however, it will also usher in great challenges for many companies in Indonesia’s manufacturing industry. With this agreement a free trade zone has been created with approximately 2 billion consumers and an annual economic output of about US$ 6 trillion. The ASEAN-China trade for the year 2009 has been estimated at about US$ 200 billion. In 2005 it had only amounted to US$ 113 billion.

Many Indonesian manufacturers and associations are afraid that the market will be flooded with cheap products from China. At the same time disadvantages are also expected in the export markets. Wijayanto, the Vice Rector of Paramadina University and Executive Director of the Paramadina Public Policy Institute, even predicts a catastrophe for the industry due to insufficient preparation of the local enterprises for the free market and seriously reproaches the government in Jakarta for signing the agreement.

Author: Necip C. Bagoglu

Mixed reactions to the ASEAN-China Free Trade Agreement

According to CA-FTA (China-ASEAN Free Trade Agreement) the member states have agreed to implement a common preferential tariff in trade. Consequently, the tariff rate on imports for 6682 categories of commodities in 17 sectors, including 12 branches of industry, was reduced from 5% to 0% at the beginning of 2010. Only a few “highly sensitive” categories of goods were excluded from this tax relief. The duties on them will be reduced up to a maximum of 50% by 2015. Due to fears that the market could be overrun by Chinese goods many industrial lobbies in Indonesia tried to postpone a full implementation of the agreement and demanded an initiation of renegotiations by the government in this connection. The demand was primarily justified with the risk of rising unemployment, with the association of employers raising the spectre of up to 7.5 million jobs in jeopardy.

Lobbyists have found a good advocate for their interests in the person of the Minister of Industry Mohammad Hidayat, who also held the office of the Chairman of the Indonesian Chamber of Industry and Trade (KADIN) until October 2009. However it seems unlikely that the government in Jakarta will seriously try to question its contractual commitments and renege on the agreement – even if it is only to avoid losing face before the other CA-FTA signatory countries.

The Indonesian Minister of Trade, Elka Mari Pangestu, has also shown little understanding for the complaints and demands

16 SOROTAN 2010/1

The national emblem outside the Great Hall of the People in Beijing, China being uncovered after renovations. ©

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in thousands of US$

of the associations. Instead, she thinks that CA-FTA offers Indonesian enterprises a chance to improve their competitive skills by compelling them to streamline their operations. At an ASEAN council meeting at the end of 2009 the Ministry of Trade merely presented a memorandum about the difficulties faced by 218 categories of merchandise in the local industry in adapting to the free market. According to sources no official petition for renegotiations was tabled.

Actually the Indonesian industry is plagued by several structural weaknesses and many bottlenecks in infrastructure. The supplies of electricity and transport facilities remain inadequate. The prices of imported raw materials are relatively high. The productivity persists at a low level. Compared against the gross domestic product (GDP), the industry has posted a lower than average growth rate. It is largely inefficient and there is a considerable need for modernisation. The sectors of textiles, apparel, furniture, steel, mechanical engineering, petrochemicals and electronics have been particularly hard hit by CA-FTA.

The association of the plastics industry INAPl predicts that the implementation of CA-FTA will lead to a 50% decline in the capacity utilization rate in the petrochemical industry which will endanger about 100,000 jobs. Since 1998 there has already been a sharp escalation in plastic imports following the gradual reduction of the common ASEAN import duty from 40% to 5%. The reduction of duty from 10% to 5% in the year 2007 alone resulted in a 98% increase in imports that year. Many ready-made clothing companies, fearing an inundation of the market with cheap goods from the “North”, are also worried.

Despite the largely negative comments on free trade with China there are also some optimists who see a new market potential in the burgeoning economic integration. The President of the Association of Indonesian Food and Beverage Producers

(GAPMMI), Thomas Darmawan, sees China, with its over 1.3 billion inhabitants, as an extremely attractive market with an interesting export potential. The President of the Indonesian Downstream Plastic Manufacturers Association (APHINDO) Gunawan Tjokro expressed the readiness of the industrial firms to accept the new challenges. However, the local suppliers from the upstream field (petrochemical industry) are not yet in a position to survive in free competition.

Even the manufacturers of packaging material have positive expectations from the market liberalisation and are gearing up for the common market. In anticipation of an expanded market PT Dynaplast, the manufacturer of plastic packaging with twelve undertakings at present (ten of them in Indonesia), purchased a plant in Vietnam in 2005 in order to have another mainstay in the ASEAN zone. The company had already acquired the Berli Prospack plant in Thailand.

Analysts largely agree that Indonesia can only cope with the challenges of a free and expanded market in the medium term with a targeted modernisation drive, or rather a technological renovation of its industries, if the costs of the industries can be reduced and their competitiveness improved in the short term - for example, with a reduction of the import taxes on raw materials. An increased purchase of local products by state-owned utility providers is also being considered as an interim solution in order to avoid sharper slumps in industry. However, in the longer-term view the liberalisation of the market presents a great opportunity for launching long-neglected projects for streamlining industrial production to enable Indonesia’s industries to survive in the increasing international competition.

E C O N O M Y

Necip C. Bagoglu is the delegate of the foreign trade and investment promotion agency Germany Trade & Invest (GTAI) of the Federal Republic of Germany in Indonesia. Based in Jakarta since 2008 he reports about all aspects of the Indonesian economy and business opportunities for German Industry.

C H I N A - A S E A N F R E E T R A D E A G R E E M E N T


Fearing the effects of climate change, Indonesia has taken an active role at international climate conferences. Yet, critics are demanding that more should be done within the country to protect the environment.

With more than 17,000 islands and about 80,000 kilometres of coastline Indonesia is one of the countries which will be hardest hit by the results of

climate change. Indonesian policy makers have realised what this would imply for the common man, especially for fishermen and farmers. In the last years the government under President Susilo Bambang Yudhoyono has assumed an active role at international conferences on measures to counter climate change. In 2007 Indonesia hosted the 13th UN Climate Change Conference in Bali which led to the development of the Bali Roadmap for a new global climate agreement. In May 2009 the World Ocean Conference was organised in Manado to discuss the role played by the world’s oceans in climate change.

Last year in December Indonesia had also intensively participated in preparations for the 14th UN Climate Change Conference in Copenhagen. However, environmental organisations are critical of the fact that so far very few of the measures announced have been implemented in Indonesia itself: at present Indonesia is ranked third in the list of greenhouse gas producers worldwide. The main culprits are the conversion of the rainforest into agricultural area, illegal logging and forest fires. Large quantities of carbon dioxide are released when the peat beds under the rainforests, which are several metres deep, are set on fire to make them fit for plantations.

Indonesia’s climate policy cannot be separated from its agriculture and forestry. On one hand the island state has the third largest rainforest in the world (120 million hectares) after Brazil and the Republic of Congo. On the other hand, there is no other country in the world where so many trees are lumbered at such a rapid pace: More than one million hectares of forest disappear each year, mostly giving way to palm oil and pulp wood plantations. Presently there are plans for more than 20

million hectares of new palm oil plantations and 9 million hectares of new pulp wood plantations. In addition, the Ministry of Forestry plans to allot permits for 2.2 million hectares of forest land to mining companies in the next ten years. “This plan contradicts the President’s speech in Copenhagen. As a result 550 million tonnes of carbon dioxide could be released into the atmosphere,” announced Elfian Effendi, Director of the policy development institute Greenomics Indonesia, in a statement to the press.

According to the Kyoto Protocol, which will remain valid until 2012, developing countries are not obliged to reduce their greenhouse gas emissions. In contrast, industrial nations have to implement a 5% reduction in their carbon dioxide emissions by 2012. However, hardly any nation will manage to meet this deadline.

No legally binding follow-up agreement emerged at the Climate Change Summit in Copenhagen since the ideas of the participants were too disparate. Indonesia is among the 55 nations which signed the Copenhagen accord – an agreement which is only morally binding. The government also submitted a seven-page report to the United Nations right on schedule, confirming that Indonesia will reduce its present carbon dioxide emissions by 26% by 2020. The state has allocated about US$ 900 million for this purpose. In fact the government sees a possibility of reducing the emissions by 41% within the same amount of time if the country gets adequate financial support from abroad.

The Indonesian delegation rated the results in Copenhagen as a success even though the summit conference did not by far fulfill all expectations. Anyhow, the President still managed to negotiate a tenfold increase in the funds sanctioned by

Author: Christina Schott

P O L I T I C S

to fight climate changecontributionIndonesia’s

20 SOROTAN 2010/1

Indonesian rainforest is facing massive deforestation. No other country in the world is

cutting down so many trees at such a rapid pace. © Jo

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22 SOROTAN 2010/1

companies with industrial forestry permits. All the trees would be registered on location in keeping with UN standards so that the companies can qualify for compensations as per the REDD scheme.

However, this could also well apply to oil palms according to the latest definition: In mid-February it came to light that the Indonesian Forestry Ministry was working on a draft which would designate palm oil plantations as forest. The UN defines a forest which contributes to an abatement of climate change according to the height of its trees, and not according to their species. With this plan Indonesia is following the example of its neighbouring country Malaysia which is already receiving financial benefits for many of its plantations as per

the guidelines of the international carbon trade. While environmental organisations are up in arms, the ministry is asserting that the new regulation will not lead to further conversion of the rainforest into agricultural area.

While the climate protection measures in Indonesia are currently concentrating on forestry and agriculture, it is often overlooked that the energy industry could soon account for a large part of the country’s emissions. Therefore, geothermal energy production could play a major role in climate protection in the future: Indonesia has about 45% of the world’s geothermal potential.

Germany is already holding discussions with Indonesia in this regard. At an economic conference of the two nations last year in October the Indonesian ambassador in Berlin, Eddy Pratomo, emphasised that he would do every thing to support investors from Germany who wanted to invest in Indonesia’s energy and transport industry. “Germany is playing a significant role in the international negotiations on climate change,” said the ambassador. “We would like to learn a whole lot more from Germany in this respect.”

the industrial nations for climate protection measures in developing nations by 2020 – from the original US$ 10 billion to 100 billion.

Last September Yudhoyono had already stressed at the G20 summit in the USA that it had to be possible to save the planet without jeopardising the economy – most of all in the poorer nations. In November 2009 the Indonesian Finance Ministry published a green paper which emphasised that all environmental strategies must be synchronised with the economic goals of the nation. The paper proposed strategies which should create more incentives for investors and local governments to reduce carbon dioxide emissions in agriculture and forestry.

The international emissions trade and the UN programme “Reducing Emissions from Deforestation and Degradation” (REDD) are a part of these incentives. They recommend that forests should be preserved by replacing profits, which would effectuate deforestation, with a compensation payment. Thus industrial nations and companies would pay to enable the developing nations to preserve their forests and thereby not promote global climate change even more. The emissions thus economised could be earned by the investors in the form of “carbon credits” and credited to their environmental sin accounts. However, this system can only work if the compensations are higher than the profit generated by, for example, the palm oil plantations. A difficult proposition – at least in the near future.

Still, some industrial nations are already supporting REDD projects in Indonesia: Australia is financing a programme in the Jambi province with US$ 28 million. Germany has already provided € 27 million for REDD projects. The first pilot projects are currently starting in Kalimantan with the support of the German Development Service (DED), the German Society for Technical Cooperation (GTZ) and the Reconstruction Loan Corporation (KfW). Great Britain, Italy, Japan, New Zealand, the Netherlands, Norway, Sweden, Switzerland and the USA have also announced their support for Indonesia’s climate protection measures. However, most of the partner states expect more precise information about the Indonesian government’s longer term strategies in advance. An appropriate plan of action will be unveiled thereafter at the end of February.

In January the Minister of Forests Zulkifli Hasan announced that a billion trees would be planted this year, half of them at the state’s expense. The rest of them would be financed by

P O L I T I C S

“It must be possible to save the planet without affecting

economic growth, especially in the poorer countries.”

Christina Schott works as a Southeast Asia correspondent for German print media like Stern, Die Zeit, Asia Pacific Times and many more. She focuses on socio-cultural and environmental issues. In 2004 she co-founded the German correspondent network weltreporter.net that today has 40 members reporting from around the world.

24 SOROTAN 2010/1

L E G A L

An amendment in the Value-Added Tax Law was endorsed in September 2009. With this step all the changes in the Tax Law, under discussion since 2005,

have been concluded for the present. The amended law, which will come into effect on April 1, 2010, represents the third amendment in the Value-Added Tax Law of 1983 after the changes in 1994 and 2000.

The most significant change will be seen in the area of services. From now on services rendered by domestic enterprises abroad will be assessable even if the Value-Added Tax on them is presently 0%. Thus the legislature reserves the right to, if necessary, levy a Value-Added Tax. The new law does not clearly define “assessable services”. However, it is certain that the so called “maklon services” will fall within this category. According to a ministerial decree (KEP – 170/PJ/2002), “maklon” refer to the classical toll-manufacturing services rendered by a company. A more precise definition is still pending in the absence of an explanation by the finance ministry.

A regulation which assesses all transactions within the framework of mergers, restructuring, expansions or acquisitions as non-taxable processes could bring advantages. Whether this also applies to any capital gains from sale or disposal cannot, however, be clearly inferred from the law.

There are innovations in the method of tax refunds also. In general tax refunds remain routinely payable only at the end of the booking year. After the second amendment to the law in 2000 all exporters of taxable commodities or services who were rated as “low-risk” with regard to tax could claim their tax refunds on a monthly basis (pre-audit refunds).

What is new is that penalty interests for overpaid refunds now amount to a mere 2%, and not 100% as earlier. A monthly refund of pre-tax on capital assets can also be claimed by companies which are presently in pre-production. However, they must attain production line status within three years, failing which, the refunds become payable.

The amendment to the law also provides for greater ease in the assessment and collection of the Value-Added Tax – a measure which will primarily benefit companies with several branches. So far it had only been possible for companies to get the Value-Added Tax for all their branches assessed and collected by one responsible authority if this procedure had been filed with and approved by the Directorate General of taxes in advance. Now a simple written notification suffices.

Altogether, it can be concluded that the amendments are regularizing certain long-prevalent de facto practices. In many areas there is still uncertainty about the new regulations and their implications. Hence, even more significant than the amendments will be the regulatory statutes which, however, can only be expected within the next one or two years.

Amendment

A new law that has been pending since 2005, will bring about significant changes especially in the services sector. What impact this has in practice remains to be seen.

in the Value-Added

Sonja Drexl-Trautmann is Head of the Department Corporate Services at EKONID since 2007, focusing on consulting in corporate and investment issues.

Mareike Münnig recently worked for the Corporate Services Department as part of her university studies in law.

Tax LawAuthor: Sonja Drexl-Trautmann & Mareike Münnig


P O R T R A I T

S E R I E S : G E R M A N I N S T I T U T I O N S I N I N D O N E S I A

The DEG – German Investment and Development Company – promotes the private sector but it also keeps an eye on the positive effects for development cooperation

All good things come in threes, apparently also in the field of development aid. After GTZ and KfW now it is SOROTAN’s turn to be a guest in the stylish ambience of the 46th floor of the Menara BCA Grand Indonesia Office Tower in the centre of Jakarta, where the DEG is located.

Jürgen Hertel, Director of the DEG field office in Jakarta, has been familiar with Indonesia for over 20 years. In his opening remarks he declared: “The DEG is naturally also

an instrument of the German Development Cooperation (EZ) but it differs from other EZ institutions primarily in the fact that our partners are private companies whom we finance from our own resources. Only a small part of our budget comes from the federal ministry for economic cooperation and development (BMZ). We want our money back and that too with interest.”

The DEG’s story began in 1962 when it was established by the Minister for Development Aid at that time, Walter Scheel, and the prime minister of Schleswig Holstein, Kai Uwe von Hassel, as a financier of the private sector in developing and emerging market countries. Since 2001 the DEG has been a part of the KfW group of banks and today it is one of Europe’s biggest development financing institutes.

The DEG has been active in Indonesia since the beginning of the 1970s. Until the end of 2009 it has provided € 500 million from its own resources as funding for about 50 private companies. Jürgen Hertel says: “At the end of 2009 we had a

Author: Britta Weck

portfolio of € 186 million in Indonesia which was invested in 16 project companies out of which 35% belonged to the finance sector, 21% to the field of agro/foodstuff, 17% to infrastructure/logistics, 12% to the manufacturing industry, 10% to insurance and 5% belonged to funds.”

2009 was a particularly good year for the DEG in Indonesia. With a new business volume of € 95 million the country was ranked first in DEG’s entire portfolio of new commitments, and ahead of the competitors China and India.

“We want to be partners in good and in bad times,” says Jürgen Hertel, comparing the DEG’s business philosophy with a marriage. “We are ready to listen to the concerns of our clients. We are always at hand with help and advice and try to offer them customized financing models. We know many of our partners for decades. Hence there is a lot of trust between us and satisfied clients also like to recommend us to others.” However, some of the project proposals ending up on Jürgen Hertel’s table never get any further. The DEG only gets involved in certain sectors and on conditions which agree with their development policy goals. In certain cases a financing by

A textile factory at work. The DEG supports the private sector to invest in infrastructure projects in Indonesia such as textile factories, harbours, power plants and water supplies.

26 SOROTAN 2010/1

“Win-win” for all

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Jürgen Hertel outlining the focus of DEG’s second lighthouse project, IIF. The Indonesian government estimates that about US$ 200 billion will be required in the next five years to finance urgently required infrastructure projects in the field of harbours, power plants, toll roads, water supplies, airports and others. Since the Indonesian budget can only allocate about US$ 75 billion, the remainder will have to come from private investors. “The IIF will make a significant contribution in this field,” says Jürgen Hertel.

Along with the Asian Development Bank (ADB), the International Finance Corporation (IFC) as well as the Indonesian Finance Ministry represented by PT Sarana Multi Infrastructure (SMI) the DEG participated with US$ 20 million in the IIF’s share capital of US$ 200 million. Other equity-like funds, the so called Subordinated Corporate Debts in the size of US$ 200 million, will be provided by the World Bank (US$ 100 million) and the ADB (US$ 100 million). According to Jürgen Hertel, “the IIF will offer long-term finances as equity in the form of shares, and debts in the form of loans. Furthermore, it will also act as a catalyst, i.e. make infrastructure projects bankable, thus hopefully dissolving the current investment backlog.”

the DEG is ruled out from the very beginning, such as when critical biospheres are threatened by the project. Sectors like nuclear energy and tobacco cultivation are also a clear no-go. On the other hand, projects cannot be co-financed if the DEG’s requirements in the field of environmental and social criteria are not fulfilled such as in the mining and timber industry. “Compliance with these international standards is an absolute must for the DEG,” says Jürgen Hertel, “and we even look at the upstream and downstream areas of the supply chain besides the project itself. Sometimes this is a little tedious because it costs our clients time and money, but in the long run it is a strategy from which both parties benefit.”

Jürgen Hertel is especially proud of two “lighthouse projects”. In December 2009 the DEG had acquired a 23% share in the Indonesian assurance company Avrist, making Avrist the only assurance company in Indonesia with a stakeholder whose partner, the KfW banking group, has a Triple A rating. Holger Rothenbusch, divisional director of DEG’s Structured Financing II, says: “There is a rapidly increasing need for insurance products in growing markets like Indonesia. We wanted to get involved in this field on a long term basis because insurance products make an important contribution in poverty reduction. Avrist’s vision of offering comprehensive insurance solutions for low wage earners and SMEs within Indonesia is perfectly aligned with the DEG’s business principles.”

“In Indonesia there is a huge backlog of investments in the field of infrastructure. However, the completion of these projects is very important for the future development of the country,” says

P O R T R A I T

How long have you been in Indonesia?

I came to Jakarta in December 2006 and have been the director of the DEG field office since January 1, 2007.

Before that I was working in the DEG head office in Cologne where I was also responsible for the projects in Indonesia. Because of my close association with Indonesia, and because I was already familiar with Jakarta from an assignment for the Friedrich Ebert Foundation from 1986 to 1989, I didn’t have to think too long when I was offered the director’s position here in 2006.

You are a self-confessed fan of Indonesia. What is special about working with Indonesian project partners?

Indonesia is not an easy country for investors and the notion of time here is often very different from Germany.

Mostly I explain it to my clients in the following way: in Germany 2 plus 2 always adds up to 4 but here it can add up to anything between 3 and 5, depending on the situation and the circumstances. Not all the people coming here for business necessarily understand this because they think that every thing is spelled out in the contract, but contracts aren’t everything. The important thing is to find a good local partner and to build up a relationship of trust with him. Usually it saves people from unpleasant surprises. What I have learnt from my Indonesian partners is mainly the placidity and an easy pace. One cannot change things overnight. What one

in good and bad times”Jürgen Hertel on the work of the DEG in Indonesia

needs is to draw a deep breath and be patient. Those who have these qualities can work very successfully in Indonesia.

How does the DEG differ from local Indonesian banks?

We offer long term finances in the form of venture capital and loans, which is something that local banks don’t do,

or only to a very limited extent. Most of all it is the long term nature of our loans (4 to 10 years, but also longer) which makes us interesting for many private companies. We are not aiming for a short term maximization of profits. Instead, we want to cooperate with our partners on a long term basis with the aim of making a positive contribution in the lives of the Indonesian people.

How do you visualise Indonesia’s economic development in the future?

I am optimistic that Indonesia can look forward to a good economic development in the future. The country is

rich in mineral and agrarian resources. It has a large domestic market, low labour costs and meanwhile it has also become very stable politically so that it is becoming more and more interesting for investors.

A

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Britta Weck has been writing for this magazine and various English-speaking media in Indonesia such as the Jakarta Post since September 2006. Prior to working for EKONID as a freelancer, she was editor of the magazine of the German-Peruvian Chamber of Commerce in Lima.

S E R I E S : G E R M A N I N S T I T U T I O N S I N I N D O N E S I A

The German International School Jakarta (Deutsche Internationale Schule – DIS) is a place of international meeting, bringing together children

from all over the world. It is also “the face of Germans in Jakarta,” as Frank-Walter Steinmeier, the former German Foreign Minister put it, on his visit to Indonesia.

In our upcoming issue you can find out more about the the work of DIS as part of our series: German Institution in Indonesia and read why DIS has been awarded as an “Excellent German School.”

Next in our series German institutions in Indonesia:

German International School

“PartnersInterview: Britta Weck

Teguh Sudarisman is a travel writer with special interest in craft, culture, and promoting new destinations. His works are published in several travel magazines. He is the only travel writer from Indonesia who was awarded Friends of Thai in 2008 by Thailand’s Ministry of Tourism and Sports.


Introducing a newinitiative

In March 2010 the Clean Batik Initiative, a program implemented by EKONID and its partners and co-financed by the European Commission was officially launched.

Author: Martin Krummeck

Batik is one of Indonesia’s most highly developed art forms and one of its most valued traditional handicrafts. Nowhere else in the world batik has

developed such a high artistic expression as on the islands of Indonesia. The Department of Industry estimated in 2009 that there are 48,287 batik-producing companies in Indonesia, which employ some 792,285 workers.

EKONID is currently implementing the Clean Batik Initiative (CBI), a programme whose main objective is to “green” both the supply and demand side of batik products. The programme consists of three components: Sustainable Production, Sustainable Consumption, and Policy Dialogues. Sustainable Production concerns the supply side, focusing on the economic, social and environmental impacts of batik production processes; while Sustainable Consumption addresses the demand side, focusing on consumers’ behaviour and choices in purchasing, use and discarding of batik products. The Policy Dialogues focus on creating an enabling policy environment that supports and encourages sustainable production of batik in Indonesia and trade of clean batik products among Asian countries.

This CBI programme is targeting 100 batik SMEs in the province of DI Yogyakarta in 2010 before expanding to five other provinces in Indonesia (West Java, Central Java, East

Java, South Sulawesi, and East Kalimantan) in the following years, targeting a further 400 SMEs. A Clean Batik Initiative Centre has been established in the EKONID building to facilitate sharing on CBI programme information for interested stakeholders. A team of local technical consultants will be established in DI Yogyakarta to assist the batik SMEs in the adaptation period, involving activities such as workshop, field technical assistance, and continuous coaching as well as consultation by national and international experts. The aim is to successfully implement a cleaner production concept.

Clean Batik Initiative is a 4-year (2010-2013) programme co-financed by the European Commission under the SWITCH-Asia grant. The programme implementation is led by EKONID together with its partners, the German-Malaysian Chamber of Industry and Commerce (MGCC) and the IHK-Academy Munich. It also has strong technical support from the Indonesian Cleaner Production Centre (ICPC) of the Ministry of Environment, Republic of Indonesia.

Martin Krummeck is Head of the Business Development Department at EKONID. He has been working in Indonesia for more than 9 years, making him an expert of the country’s business scene.

Step 1:progrAMMe Intro• CleanBatikInfoCentre

(CBIC)• ProgrammeWebsite• LaunchingEvent• RegionalProgramme

Info DayS (RPID)• SMEProgrammeInfo

DayS (SME-PID)

- FORuMS-LoBByGRouPACtIvItIES

Step 2:1St LeveL trAInIng of trAInerS A (tot A) Environmental Oriented Cost Management (EoCM) & Good Housekeeping (GHK)

Step 3:WorKShop A

(EOCM & GHK)

Step 6:WorKShop B

(Wee & CM)

StAge II:MArKetIng

SeMInAr

Step 5:1St LeveL trAInIng of trAInerS B (tot B) + netWorK MeetIng– Water and Energy

Efficiency (WEE) & Chemical Management (CM)

Step 8:2nd LeveL

trAInIng of trAInerS A & B

(tot A & B) + netWorK MeetIng

StAge I:trAInIng of

trAInerS (tot)MArKetIng

SUStAInABLe ConSUMptIon

SUStAInABLe prodUCtIon

poLICY dIALogUeS

Step 9:evALUAtIon (TA A & TA B)

Step 4:teChnICAL

ASSIStAnCe A (tA A)(EoCM & GHK)

Step 7:teChnICAL ASSIStAnCe

B (tA B)(WEE & CM)

StAge III:trAde proMotIon• Businessmatchmaking• onlinemarketing(e-news,website,etc)• Domesticandinternationaltradefairssupport

MAIn progrAMMe ACtIvItIeS

AWAreneSS CAMpAIgnS– MediaLiaison– Press Conferences– Clean batik Consumption Promotion Events

C L E A N B A T I K I N I T I A T I V E

34 SOROTAN 2010/1

Artistic batik patterns are traditionally drawn on to fabric by hand. despite its beauty, the making of batik often includes toxic substances. A new eKonId programme has the aim to

green both the supply and demand side of batik products.

E K O N I D S P E C I A L

© Iie

Mau

lidia


E K O N I D S P E C I A L

C L E A N B A T I K I N I T I A T I V E

CBIThe Clean Batik Initiative was sucessfully inaugurated on March 2, 2010 in the Textile Museum Jakarta, with the support of:

(1) Right: Anwar al Said (Officer in Charge for the uNESCO)(2) Center: Erik Habers (Charge d’Affairs for the EC)(3) Prof. Dr. Ir. H. Gusti Muhammad Hatta (Indonesian Minister of Environment)

The PartnersProgramme Partners: Programme Associate:

Supporting Institutions:

Media Partners:Exclusive Media Partner

Supporting Media Partners

Indonesia Cleaner Production Center (ICPC)

Ministry of EnvironmentRepublic of Indonesia

KADIN INDONESIA

IHK Academy Munich, Germany

Malaysian-German Chamber of Industry and Commerce (MGCC)

(1) (2)

(3)

Inauguration


J O I N T L U N C H E O NB U S I N E S S L U N C H E O N

Business

EKONID and IGC held a business luncheon with the German Ambassador for Indonesia, H.E. Dr. Norbert Baas giving a speech about the topic: How to deepen and expand

relation between European Union and Indonesia at Asoka Room, InterContinental Jakarta MidPlaza, on January 26, 2010. It was a great honor to also welcome Dr. H. Fauzi Bowo, the Governor of DKI Jakarta as our guest.

(1) Left to right: Dr. H. Fauzi Bowo (Governor of DKI Jakarta), H.E. Dr. Norbert Baas (German Ambassador for Indonesia) and Dr. Arifin M. Siregar (Chairman of IGC).

LuncheonJoint European

INA together with EKONID, Britcham, Eurocham and IFFCI organized a European Joint Luncheon with Mr. Rachmat Witoelar (Executive Chair of The Nation Council on Climate

Change of the Republic of Indonesia) speaking about Indonesia’s Policy to Meet its Copenhagen Commitment on CO2 Emission Reduction, at Ballroom InterContinental Jakarta MidPlaza, on February 16, 2010.

(1) Left to right: Elmar Bouma (Director of INA) and Rachmat Witoelar (Executive Chair of The Nation Council on Climate Change of the Republic of Indonesia).

Luncheon

E K O N I D N E W S

(1)

(1)


M E M B E R S G A T H E R I N G

MembersEKONID

Our legendary members gathering at illustrative locations around Jakarta have been a great success, bringing together the who-is-who of the business scene in the capital.

Gathering

E K O N I D N E W S

JanuaryBacchus Lounge, InterContinental

Jakarta MidPlaza

FebruaryLobo Restaurant, the Ritz-Carlton Jakarta

MarchTable8 Restaurant,

Hotel Mulia Senayan


B U S I N E S S M A T C H M A K I N G & E X H I B I T I O NG R ü N K O H L E S S E N

This year EKONID celebrated the traditional Grünkohlessen on February 5, 2010 in Mezzanine Ballroom, Aryaduta Hotel Jakarta. It was a long cheerful night with lots of

delicious Grünkohl, drinking and singing. As in the recent years this popular event was a great success!

BusinessMatch Making

A matchmaking event was held on Thursday, February 11, 2010, at EKONID’s premises. This meeting has been organized jointly by Business Technology Center

(BTC) Network and EKONID, with support from Association of Indonesian Professional Small Medium Sized Enterprises (AIPSE), Merah Putih Associates, Business Innovation Center, and Germakon GmbH.

The Business Matching is an ideal platform for companies in search of mutual partnership for investment or joint venture. German representatives in Indonesia, AIPSE and Germakon GmbH, have been establishing a network with German companies for years - giving an opportunity of promotion in Germany for Indonesian participants of the Business Matching. During this event, a number of opportunities were offered, including exploration on gold and bronze mine, production of jelly powder from seaweed and production of premium quality Vetiver Oil. Another highlight of discussion was the technology transfer from Germany to Indonesia.

Eco ProductInternational Fair

2010

Clean Batik Initiative (CBI) was participating in the Eco Product International Fair 2010 from March 4-7, at the Jakarta Convention Center (JCC), Senayan. EKONID

was introducing and socializing the CBI programme aimed to “green” both the supply and the demand side of batik products, introducing sustainable development of the batik industry in Indonesia. Almost 100 visitors including media and entrepreneurs were given explanation about the programme and enthusiastic to be involved in CBI upcoming events.

Eco Product International Fair (EPIF) is the largest environmental exhibition and conference in Asia. This 6th EPIF was hosted by the Indonesian Chamber of Commerce (KADIN) in cooperation with the Asian Productivity Organization (APO) and the Ministry of Labor and Transmigration, Republic of Indonesia.

Clean Batik Initiative (CBI) at

E K O N I D N E W S


P U B L I C A T I O N S

PublicationsBusiness Partner 2010/2011:The EKONID Member DirectoryWith over 350 pages, the Business Partner is the definitive German-Indonesian business directory. This invaluable

compendium provides information on the Chamber and the Indonesian economy and lists all EKONID members, including their business activities, ownership and management, and full contact details.New edition 2010Language: EnglishPrice: Members EUR 55 / Non-members EUR 83

Business Guide IndonesienLooking to do business in Indonesia? This guide will introduce you to the country, its culture and people. It is also filled with practical information that will make a business trip or long-term stay just so much easier.Updated 2009Language: GermanNominal Charge: EUR 10

Wirtschaftsführer: „Erfolgreich in Indonesien“This complimentary economic guide presents business opportunities and perspectives for German companies in Indonesia.Published: 2009 Language: GermanNominal Charge: EUR 50

Fruit Export Development Centre: Ekspor buah ke Uni EropaThis publication addresses the European market for Indonesian fruit exports. The content covers the development and latest market trends in the fruit sector and explains the regulatory framework and procedures of exporting fruit to the EU. Published: January 2008Language: Bahasa IndonesiaNominal Charge: EUR 10

General Publications Legal Publications Sector StudiesArbeitsrecht in IndonesienBefore you invest abroad you need to understand the labour law of the country. This publication discusses issues like minimum wages, redundancies, or unionization that can make or break an investment.

Updated: 2009 Language: GermanNominal Charge: EUR 10

Business Guide IndonesienThis guide will introduce you to the country, its culture and people. It is also filled with practical information that will make a business trip or long-term stay just so much easier. Updated: 2009, Language: GermanNominal Charge: EUR 10

Fragen des Privatrechts in IndonesienHere you will find information on damages, limitation of actions, arbitration and the registration of intellectual property rights.Updated 2009, Language: GermanNominal Charge: EUR 10 Investitionsrecht in IndonesienThe content covers investment opportunities, new government regulations on Foreign Direct Investment (FDI) as well as information on working with local authorities.Updated 2009, Language: GermanNominal Charge: EUR 10 Aufenthaltsrecht für Ausländer in IndonesienThe content covers visas, work permits, moving to Indonesia and associated customs formalities, and addresses everyday problems like getting an Indonesian driving license. Also contains a list of useful addresses.Updated 2009, Language: GermanNominal Charge: EUR 10

Bankrecht in IndonesienPublished in collaboration with Deutsche Bank AG in Jakarta. You will find information about clearing systems, bank guarantees and the banking system in general.Updated 2009, Language: EnglishNominal Charge: EUR 10

Steuer- und ZollbestimmungenThis publication provides an introduction to the tax and tariff framework in Indonesia, including corporate taxes and personal income taxes.Updated 2009, Language: GermanNominal Charge: EUR 10

Sector studies in some industries (Construction, Chemical, Energy, Automotive, Mechanical Engineering, Medical Engineering, Mining, Information & Communi-cation Technology, Telecommunication & Retail)

These studies analyse the chances, risks and perspectives in the Indonesian construction sector.Published 2009Language: GermanNominal Charge: EUR 10

Geothermal Sector in Indonesia: Potential, Developments and PerspectivesThis publication provides an overview of Indonesia’s renewable energy market with a focus on the geothermal sector. It also covers legal aspects and the potential for new developments.Published: September 2008Language: EnglishNominal Charge: EUR 10

Die Entwicklung des Biokraftstoffsektors in Indonesien: Politik, Potentiale und PerspektivenThis publication provides an overview of Indonesia’s renewable energy market and discusses the development and future potential of the bio-fuel sector. Published: August 2007Language: GermanNominal Charge: EUR 10

Potential und Anwendung von erneuerbaren Energien in IndonesienThis publication covers the different sectors of renewable energies in Indonesia and provides an in-depth study of their development and potential.Published: June 2006Language: GermanNominal Charge: EUR 10

For futher information visit our website: www.ekonid.com or contact Mr. Iwan Nasution, Tel.: 6221-3154685, Fax.: 6221-3155276, E-Mail: [email protected]

Note: All prices excl. VAT

MembersEKONID’s New

DFDS TRANSPORT INDONESIA, PTMr. Stig KrogPresident DirectorJl. Buncit Raya No.6, 4th Floor - Jakarta Selatan 12740Phone : +62-021-7970550 Fax : +62-021-7970661 Email : [email protected] Activity : Freight Forwarding IHR CONSULTING INDONESIA, PTMr. Antonius LimGerman Centre Building Suite 4190, 4th FloorJl. Kapt. Subijanto Blok COA No.1BSD - Tangerang 15321 - BantenPhone : +62-021-5376263 Fax : +62-021-5376263 Email : [email protected] Activity : Business Consultant

Mrs. Eva IndrawatiPersonal MemberNVISION INDONESIA, PTPlaza Sentral, 7th FloorJl. Jend. Sudirman Kav 47-48 - Jakarta 12930Phone : +62-021-5205664 Fax : +62-021-5205622 Email : [email protected] Activity : CDM Consultant

EventsUpcoming

MANROLAND INDONESIA, PTMr. Tim KlappePresident DirectorManagement Building, 2nd FloorJl. Buncit Raya Kav. 100 - Jakarta 12510Phone : +62-021-79199818 Fax : +62-021-7984288Email : [email protected] Activity : Sales and service of offset printing equipment

WILO PUMPS INDONESIA, PTMs. Citra PuspitasariJl. Panglima Polim Raya No. 6K Blok AKebayoran Baru - Jakarta Selatan 12140Phone : +62-021-7247676 Fax : +62-021-7232677 Email : [email protected] : Trading

Month Date EventMarch 25 Joint Bilateral Chambers Business & Social

Gathering

April 6 Get Together

May 4 Get Together

9-12 GTAI Economy Delegation

10-13 BMWi Delegation of the Economy Minister

11/12 EKONID 40th Annual Member Meeting

13-15 APK Conference

23-27 Delegation from Bavaria

June 1 Get Together

7-9 AHK World Conference

18 Spargelessen 2010

20-24 Delegation from Baden Württemberg

N E W M E M B E R S & C O M I N G U P

E K O N I D N E W S


J O B M A R K E T S

Business Administration; Tarakanita Secretarial Academy; 8 y. exp. as secretary; Computer Literate; Language: English, is looking for a job in Jabotabek.V1I/03/10

General Affair/Secretary/Administration; 30 y.; F.; Christian University of Indonesia, Majoring Social Science, 6 y. exp. in same fields; Computer: Windows, MS Office, World, Excel, Internet, Language: English, is looking for a job in Jabotabek.V2P/03/10

Secretary; 34 y.; F.; INTERSTUDY Secretarial College, 6 y. exp. in same field; Computer Literate: MS Office; Language: English, is looking for a job in Jabotabek.V3D/03/10

Secretary/Administration; 43 y.; F.; Universitas Kristen Indonesia (UKI), English Literature Certificated, Computer Literate; Language: English, is looking for a job in Jabotabek.V4S/03/10

Secretary/Administration; 28 y.; F.; 6 y. exp. in same field; Computer Literate; Language: English, is looking for a job in Jabotabek.V5N/03/10

Sekretärin/Sachbehalterin; 22 J.; F.; Deutschabteilung, Philosophische Fakultät, Uni. Indonesia; Computer Literate; Language: English,is looking for a job in Jabotabek.V6Z/03/10

Finance/Accounting Staff; 28 y. M.; UPH Karawaci, majoring in accounting, 2 y. exp. in same field; Computer Literate; Language: English, is looking for a job in Jabotabek.F1R/03/10

Finance/Accounting Staff; 30 y.; F.; INDONUSA ESA UNGGUL UNIVERSITY, Majoring Accounting; 3 y. exp.; Computer : ArcGIS, SPSS, Microsoft Office, HTML, PHP; Languages: German,English, is looking for a job in Jabotabek. F3A/03/10

Manager Marketing; M.; Monash University Melbourne, Australia, Master of Marketing,

Job MarketsEKONID

8 y. exp.; Computer Literate; Language: English, is looking for a job in Jabotabek. I1C/03/10

Manager; 56 y.; F.; 13 y. exp.; Computer Literate; Language: English, German, is looking for a job in Jabotabek. I2S/03/10

General Affair/Secretary; 33 y.; F.; Magister Computer Linguistic, Stuttgart University, 3 y. exp.; Computer Literate; Languages: English, German, is looking for a job in Jabotabek. I3L/03/10

Chain Management-Maintaining; 8 y. exp.; University of applied sciences Hamburg, Germany Majoring in industrial Engineering; Computer: Microsoft Project Management, SAP R/3, MS Office; Languages: German, English, is looking for a job in Jabotabek. I5J/03/10

Diplom Betriebswirt; 28 y.; M.; FH Trier, Bachelor of Arts in Business Administration with specialization Marketing; working exp. 1 y.; Computer: MS Office, SAP/R3, Adobe InDesign, CMS Red dot; Languages: English, German, is looking for a job in Jabotabek.I6H/03/10

General Manager/Business Head; 47 y.; M.; Diplom Informatik, Uni. Hamburg, 7 y. exp. in same field; Compter: MS Office, MS Windows,OS; Languages: English, German, is looking for a job in Jabotabek. I7R/03/10

Analyist; F.; University of Applied Science of Brandenburg and Technical University of Cottbus, 1,5 y. exp.; Computer Literate: MS Office including Word, Excel, Powerpoint, Access, Outlook, Windows and UNIX / Linux, Programming Language SAS, Mathematica and Java, MySQL, R, UCINET 6, SPSS and SAP R / 3 Controlling; Languages: English, German, is looking for a job in Jabotabek. I8I/03/10

Maschinenbau-Ing; 29 J.; M. HS Reutlingen; 2 J. Arbeitserfahrung als CAD Konstrukteur; EDV Kenntnisse: Pro/ Engineer, Intralink, PC, MS Office; Sprachen: Deutsch, Englisch, sucht Tätigkeit im Bereich Automatisierung oder Konstruktion; Raum Jabotabek. I9A/03/10

Indonesian looking for position:

German/Foreigner looking for position:Photographer; 34 y.; M.; Languages: English, German, Spanish, French, is looking for a job in Indonesia. A1J/03/10

Terms & ConditionsFor this placing service we charge a handling fee of Rp. 50.000 per application profile (please name the box number). For the successful placement of higher management positions, companies pay a unique fee of one brutto monthly salary (members of EKONID), respectively 10% of the brutto annual salary (if no member of EKONID).

Candidates can apply on our website: www.ekonid.com and send us his resume. For futher information please contact Mr. Iwan Nasution, Tel.: 6221-3154685, Fax.: 6221-3155276, E-Mail: [email protected]

46 SOROTAN 2010/1

Engineering/Marketing; Uni. of Applied Science Ulm, Automobile Technology; Computer Literate; Languages: German, English, is looking for a job in Jabotabek. I10C/03/10

Business Development Staff; 27 y.; F.; Uni. Mercu Buana, Public Relation, 4 y. exp; Computer: MS Office, Design Software; Language: English, is looking for a job in Jabotabek. I11D/03/10

Marketing/Accounting; 32 y.; M; TU Berlin, majoring in economics; Computer: MS Office, E views, SQL, HTML, Java Basic; Languages: English, German. I12A/03/10

E K O N I D N E W S

EKONID looking for:Professional English native copywriter; Requirements: Willing to work part time (about 3 days a week) or full time; experienced in copywriting for high-profile client (i.e. premium brands like 5-star hotel, premium cars, etc.), Journalistic skill is of advantage; German language is of advantage; Have time flexibility for demanding project; Enjoys team work. Applications are accepted until April 9, 2010.


M E M B E R N E W S

PT Siemens Indonesia has carried out a competition for journalists writing articles about science and technology for national magazines and online media.

Hans Peter Haesslein, President Director and CEO of PT Siemens Indonesia, said, the reporting in science and technology had to be increased. The jury has chosen 52 relevant articles and appointed 13 of them as the best in five categories.

To celebrate SIEMENS’ 100th birthday, the competition was dedicated to those who work in the media industry.

PT Siemens Indonesia presents

Media Award 2009to 13 journalists

accreditation DB Schenker receives

DB Schenker has gained Accreditation as a Qualified Envirotainer Provider (QEP) at several stations in Europe and Asia by Envirotainer AB, the Sweden-based

provider of active temperature-controlled air cargo containers. The accreditation, which verifies that DB Schenker can manage temperature sensitive shipments that are shipped in Envirotainer containers in accordance with Good Distribution Practice, has been awarded for the European stations in Brussels, Basel, Frankfurt, Geneva, Mannheim, Stuttgart, Vienna and Zurich as well as the Singapore operation.

Christine Andersson, one of Envirotainer’s QEP Program Managers, said: “DB Schenker has been able to successfully comply with the strict requirements of QEP Accreditation because of its excellent quality management system and internal training program. Having these structured processes already in place has enabled the company to quickly satisfy the quality standards needed.”

launching eventYayasan Allianz Peduli

Allianz Utama Indonesia and Allianz Life Indonesia (Allianz Indonesia) have launched the Yayasan Allianz Peduli. This follows various social activities and a

successful start of a microinsurance program for low-income families. With Yayasan Allianz Peduli, Allianz Indonesia will further focus on sustainable community service programs aligned to its areas of expertise and business objective.

The community service programs for Allianz Indonesia staff, agents and business partners will be developed by the Yayasan Allianz Peduli, the companies’ social foundation. Yayasan Allianz Peduli is launched to act as the sole funder of Allianz Indonesia CSR activities in three key areas of education, healthcare, and humanitarian assistance.

“Allianz Utama and Allianz Life Indonesia have committed to support Yayasan Allianz Peduli with a regular corporate funding scheme. This also reflects the strong commitment of our shareholders to support our CSR initiatives,” added Jens Reisch, President Director of Allianz Life Indonesia.

new office premises BMW Indonesia opens

PT BMW Indonesia’s new office premises at The Plaza office building were officially opened by Graeme Grieve, Vice President of the BMW Group. Johannes Seibert,

Managing Director of BMW Asia and Ramesh Divyanathan, President Director of BMW Indonesia, also attended the inauguration in the state-of-the-art and environmentally friendly building.

“BMW Group is proud to have operated in Indonesia with our own subsidiary since 2001,” said Grieve who oversees emerging markets in Asia, Africa, Middle East, Eastern Europe, Central and South America. “This is a democratic developing country with vast potential. Indonesia’s strong growth in the face of last year’s economic crisis and the smooth elections served as the best image-builders for the country. Indonesia’s increasing prominence in ASEAN and the G20 group of nations reflects its enhanced position on the global stage.”

If you are a member of EKONID and would like to place your company news on these pages, please contact: Iwan Nasution, email: [email protected]


T R A D E F A I R

B I O F A C H 2 0 1 0

Biofach 2010

The BioFach and Vivaness 2010 exhibition indicated that the occurring global financial crisis has not stopped the demand on organic and ecologically sustainable products.

Author: Paula Yahya

Organic+Fair, the BioFach theme in 2010, received a positive feedback, politically as well as referring to media attention,” according to Claus Rättic, Member of

NürnbergMesse Management Board.

In the segment of organic fair products at the duo exhibition BioFach and Vivaness 2010, there were more than 52 exhibitors displaying over 100 new products, including Indonesian rice, displayed by PT Bloom Agro. Emily Sutanto, the founder and owner of PT Bloom Agro, was appointed to give a speech during

the fair trade seminar. She spoke about organic farming in Indonesia, focusing the success in combining organic farming and fair trade concepts with the SRI procedure (System of Rice Intensification) in Tasikmalaya, West Java. Both concepts are aimed to achieve sustainability and a higher income for farmers.

More and more consumers consider the quality and value of a consumed product important, especially referring to the organic aspect, the production process and fair trading conditions. Ethical trade concepts are also more frequently discussed. This

A report from Nürnberg, GermanyFebruary 17-20, 2010

trend can also be seen in body and wellness products: “Fair trade and sustainability for main ingredients of products and wrapping material have now become the decisive factors,” stated Dr. Alexandra Vogel, PR Director from i+m Naturkosmetik Manufaktur, Berlin. A total of 183 producers from 21 countries displayed their products at Vivaness 2010, an international platform for body treatment and natural wellness products.

At BioFach 2010 Indonesia was represented by the Indonesian Organic Alliance (AOI) as the main exhibitor. AOI is an alliance developing business opportunities and finding market access for Indonesian organic products by partnering with PT Bloom Agro as co-exhibitor.

AOI brought the Java Tea (orthosiphon stamineus) to the fair, a top product of their member PT Poros Nusantara which has received international organic certification. Visitors of the AOI’s 12 m2 large booth came from various countries, such as the USA, Argentina, the Netherlands, UK, India, Israel, Germany, Canada, Malaysia and Mexico as well as France, Poland, Sweden, Switzerland, Thailand and Turkey. AOI offered complete information on the situation and the potential of Indonesia`s organic products (concerning certification, guarantee and fair trade), on building new business networks and on the opportunities for procurement cooperation.

Sebastian Saragih, President of AOI, and Executive Director Rasdi Wangsa stated that they were satisfied with the achieved result this year. They hope that there will be more Indonesian organic products involved in the participation plan in 2011. He emphasized that there were some potential products now passing through the international certification process – one of the basic conditions to exhibit at BioFach. The products which enjoyed great popularity from visitors are cinnamon, clove, cardamom (kapulaga), black pepper, galanga (lengkuas), cashew nuts, forest honey, coffee, cacao, essential oil and herbal plants.

Independent funding for the participants was quite hard for the Alliance, whose members mostly come from farmer groups. But the international attention made the effort valuable and, of course, enriched all participants with lots of experience of both product presentation and marketing techniques. As for the the Java Tea: Even after the trade fair there was a huge demand. For

2011 AOI hopes that through vast support from the Indonesian government and the players in organic sectors an Indonesian pavilion can be formed. Especially after seeing the pavilions of many countries with limited natural resources like Ghana and other African states, the AOI intends to create better promotion to achieve maximum results in the coming year.

Emily Sutanto said that besides its main goal to become a connecting platform between buyers and sellers, BioFach was also a good place to make friends with people from different nationalities. In future this can also lead to new business opportunities. Emily Sutanto hopes to participate in the coming exhibitions and sincerely believes that government support is the key factor to the success of an organic marketing effort from a country.

Besides AOI and PT Bloom Agro, Indonesia was also represented by PT Dwipa Java Spices under a non-profit Switzerland organization pavilion, displaying products such as several spices and extracts of various commodities, such as coffee, clove or cocoa which can be used in numerous industries. Deutsche Welle reported on

all participants from Indonesia in the Bahasa Indonesia section.

Indonesian participants are confident to join the next BioFach, which is held on February 16-19, 2011 in Nuremberg, Germany. Indonesia’s presence, either as exhibitor or speaker, in the biggest organic forum in the world shows its big potential in becoming a key player in the Organic+Fair sector as well as in sustainable and ethical trade.

BioFach Series in 2010:BioFach China, Shanghai, May 27-29 BioFach Japan + Natural Expo, Tokyo, September 21-23 BioFach America, Boston, October 14-16 BioFach America Latina, Sao Paolo, November 3-5 BioFach India, Mumbai, December 7-9

Exhibitors: 2,557

International exhibitors: 75%

(including exhibitors from Indonesia)

Visitors to the exhibition: 43,500

International visitors: 38%

(including visitors from Indonesia)

Buyer’s countries of origin: 121

Amount of seminars & forums: 180

Participants: 8000

Paula Yahya is the Senior Trade Fairs Executive at EKONID. She has been working for the department since 2005, mainly dealing with big clients like Messe München International and Nürnberg Messe. For more information please contact: [email protected]

Facts & Figures


T R A D E F A I R

C A L E N D A R O F E V E N T

CalendarTrade Fair

Messe Berlin

ITB BERLINThe World’s Leading Travel Trade Show Berlin, Germany, March 10-14, 2010www.itb-berlin.com

postprint berlinTrade Fair for Printing and FinishingBerlin, Germany, May 05-07, 2010www.postprint.de

ILA Berlin Air ShowInternational Aerospace Exhibition & ConferencesBerlin, Germany, June 08-13, 2010www.ila-berlin.de

IT ProfitsTrade Show, Forum and Convention for IT, Internet and CommunicationBerlin, Germany, June 09-10, 2010www.it-profits.de

CeBITThe world’s leading event for Information Technology, Telecommunications, Software and ServicesHannover, Germany, March 02-06, 2010www.cebit.de

Deutsche Messe AG

musikmesseInternational Trade Fair for Musical Instru-ments, Musical Software & Computer Hardware, Sheet Music & AccessoriesFrankfurt, Germany, March 24-27, 2010www.musikmesse.com

prolight+soundInternational Trade Fair for Event and Communication Technology, AV-Production and EntertainmentFrankfurt, Germany, March 24-27, 2010www.prolight-sound.com

Messe Frankfurt

Kölnmesse

INTERNATIONAL HARDWARE FAIR COLOGNECologne, Germany, Feb-March 28-03, 2010www.hardwarefair.com

IDEM SingaporeInternational Dental Exhibition and Meeting SingaporeSingapore, April 16-18, 2010www.idem-singapore.com

THAIFEX – World of Food ASIAInternational Trade-Exhibition covering Food & Beverages, featuring Halal & Organic Food, Food Catering, Food Technology, Hospitality Service and Retail & FranchiseBangkok, Thailand, May 12-16, 2010www.worldoffoodasia.com

World of HalalInternational Trade Fair and Conference for the Halal IndustryBangkok, Thailand, May 12-16, 2010www.world-of-halal.com

SPOGA+GAFAThe Garden Trade FairCologne, Germany, September 5-7, 2010 www.spogagafa.com

KIND & JUGENDTrade Show for Kids First YearCologne, Germany, September 16-19, 2010www.kindundjugend.com

analyticaInternational Trade Fair for Instrumental Analysis, Laboratory Technology and Biotechnology and analytica ConferenceMunich, Germany, June 23-26, 2010www.analytica.de

BIKE EXPOCycling trends for city and natureMunich, Germany, July 22-25, 2010www.bike-expo.com

Messe München

DOMOTEX asia/CHINAFLOORThe Largest International Trade Fair for the Floor Covering Industry in Asia and ChinaShanghai, China, March 23-25, 2010www.domotexasiachinafloor.com

HANNOVER MESSEThe World’s Most Important Technology EventHannover, Germany, April 19-23, 2010www.hannovermesse.de

DOMOTEX Middle EastInternational Trade Fair for Carpets and Floor CoveringsDubai, UAE, May 10-12, 2010www.domotex-middle-east.com

CeBIT AustraliaAustralasia’s Leading Business & Technology EventSydney, Australia, May 24-26, 2010www.cebit.com.au

IAA Commercial VehiclesMotor Vehicles, Equipment and Systems for the Transport of Goods and PassengersHannover, Germany, September 23-30, 2010www.iaa.de

BIOTECHNICA 2010International Trade Fair, Conferences, Partnering & Award for BiotechnologyHannover, Germany, October 05-07, 2010www.biotechnica.de

PHOTOKINAThe World Leading Fair for Photography and ImagingCologne, Germany, September 21-26, 2010 www.photokina-cologne.com

INTERMOTInternational Motorcycle, Scooter and Bicycle Fair.Cologne, Germany, October 6-10, 2010www.intermot-cologne.com

ORGATECModern Office and Facility Trade ShowCologne, Germany, October 26-30, 2010www.orgatec.com

Sweets ChinaInternational Exhibition For the Sweet & Confectionery, Snack & Bakery Food and Ice Cream IndustryShanghai, China, October 28-30, 2010 www.sweetschina.com

CARBON EXPOGlobal Carbon Market - Fair & ConferenceCologne, Germany, May 26-28, 2010www.carbonexpo.com

CLEAN ENERGY EXPOTrade Fair and Conference, Covering Various Areas within the Renewable SectorSingapore, November 18-20, 2010www.cleanenergyexpoasia.com

baumaInternational Trade Fair for Construction Machinery, Building Material Machines, Construction Vehicles, Equipment and Mining MachinesMunich, Germany, April 19-25, 2010www.bauma.de

IFAT CHINA + EPTEE + CWS 2010International Trade Fair for Water, Sewage, Refuse, Recycling and Natural Energy SourcesShanghai, P.R. China, May 05-07, 2010www.ifat-china.com

BAKERY CHINA 2010 The 13th International Trade Fair for the Baking and Confectionary Industry in ChinaShanghai, P.R. China, May 12-15, 2010www.bakery-china.com

transport logistic China4th International Exhibition for Logistics, Telematics and TransportShanghai, P.R. China, June 8-10, 2010www.transportlogistic-china.com

IFAT 201016th International Trade Fair for Water - Sewage - Refuse - RecyclingMunich, Germany, September 13-17, 2010www.ifat.de

electronica 2010Components / Systems / ApplicationsMunich, Germany, November 09-12, 2010www.electronica.de

bauma ChinaInternational Trade Fair for Construction Machinery, Building Material Machines, Construction Vehicles and EquipmentShanghai, P.R. China, November 23-26, 2010 www.bauma-china.com

fensterbau/frontaleInternational Trade Fair Window, Door & Facade Nuremberg, Germany, March 24-27, 2010www.frontale.de

American Coatings SHOW Charlotte, NC, USA, April 13-15, 2010 www.american-coatings-show.com

Interzoo International Trade Fair for Pet SuppliesNuremberg, Germany, May 13-16, 2010 www.interzoo.com

BioFach China International Organic Trade Fair and ConferenceShanghai, P.R. China, May 27-29, 2010 www.biofach-china.com

Brau Beviale Raw Materials - Technologies - Logistics - Marketing Nuremberg, Germany, November 10-12, 2010 www.brau-beviale.de

BioFach Japan International Organic Trade FairTokyo, Japan, September 21-23, 2010 www.biofach-japan.com

Natural EXPO Nature - Wellness - Sustainability Tokyo, Japan, September 21-23, 2010 www.natural-expo-japan.com

Chillventa International Trade Fair for Refrigeration - Air Conditioning - Heat PumpsNuremberg, Germany, October 13-15, 2010 www.chillventa.de

BioFach America Organic Products ExpoBoston (MA), USA, October 13-16, 2010 www.biofach-america.com

BioFach América Latina International Trade Fair and Conference for Organic ProductsSão Paulo, Brazil, November 03-05, 2010 www.biofach-americalatina.com

BioFach India together with India Organic International Organic Trade FairMumbai, India, December 07-09, 2010 www.biofach-india.com

Contact Person in Indonesia:Mr Ferry [email protected].: +62-21-3154685Fax: +62-21-3155276www.messe.de

Contact Person in Indonesia:Mr Ferry [email protected].: +62-21-3154685Fax: +62-21-3155276www.messe-berlin.de

Contact Person in Indonesia:Mrs Dian [email protected].: +62-21-3154685Fax: +62-21-3155276www.messefrankfurt.com

Contact Person in Indonesia:Mrs Prieta [email protected].: +62-21-3154685Fax: +62-21-3155276www.messefrankfurt.com

Contact Person in Indonesia:Mrs Paula [email protected].: +62-21-3154685Fax: +62-21-3155276www.messe-muenchen.de

Contact Person in Indonesia:Mrs Paula [email protected].: +62-21-3154685Fax: +62-21-3155276www.messe-muenchen.de

light+buildingThe World’s Leading Trade Fair for Architecture and TechnologyFrankfurt, Germany, April 11–16, 2010www.light-building.com

IFFATechnology meats Business: No. 1 for processing, packaging, selling Frankfurt, Germany, May 08–13, 2010www.iffa.com

Nürnberg Messe


Horst Geerken:

Author: Jasmin Abshütz

des Geckos”„Der Ruf

C U L T U R E

B O O K R E V I E W

The scent typical of Indonesian towns – a mixture of Kretek cigarettes, Gorengan in coconut oil, hot spices, garlic and dried fish – floated in through the

open window on a cloud of damp, muggy air. (…) My ears were also assailed by many unfamiliar sounds: a gamelan orchestra was playing in the distance, the muezzin called the faithful to prayer, peddlers and cooks praised their goods with loud shouts, wooden carts creaked, becaks (cycle-rickshaws) and bicycles rang their warning bells and cars hooted importunately. There was also a layer of lung-searing smoke over Jakarta: at every edge of the city rubbish was burnt, whose smell continually overpowered the pleasant scents.” (Der Ruf des Geckos, P. 34)

With these words, Horst Geerken described his arrival in Jakarta in 1963. A reader well-acquainted with Indonesia gets the impression that not much has changed since then. In fact, one still encounters a lot of the things mentioned in this book which describes Geerken’s sojourn in Jakarta for the company AEG-Telefunken from 1963 to 1981. Even in those days the famous jam karet (literally: rubber time; delay), for example, taxed the patience of many punctual Germans and the belief in spirits and supernatural abilities and experiences existed back then just as it does now.

Yet, many things have changed with the passage of time. Today, when one is virtually spoilt by modern means of communication, air-conditioning and imported goods, it seems unthinkable that telephone calls to Germany, if at all possible, were really hard to manage in those days; or that Horst Geerken always carried two jackets with him in his car in case one was soaked with sweat. Air conditioners were still scarce in those times and even food from the West was not available in practically every supermarket as it is today. The travelling bread-seller found everywhere today did not exist in those days and a monastery in Bandung provided the German families with butter.

Besides the day-to-day living conditions Horst Geerken also writes about the struggle for independence, the turmoil in 1965, his personal acquaintance with Sukarno, his professional activities in Indonesia and the occasionally

quirky German community in Jakarta. The information and anecdotes are interesting as well as amusing. The book is supplemented with reports about business trips and projects in Bali, Sumba and the Weh Island. The description of several private trips helps the reader to become acquainted with the entire country instead of being restricted only to Jakarta.

While reading the book, the reader inevitably feels that the writer not only became a connoisseur of Indonesia after 18 years of staying here, but that he also developed a deep attachment to the country. Thus the book is not only worth to be read if one has recently come to Indonesia and started working here, just as Horst Geerken did. Even those who are already well-acquainted with the country will enjoy reading this book since they will rediscover much that they already know. Yet they will also recognise the differences between life in those days and the present day. Often they will smile when they see that they master many situations in exact the same way Horst Geerken did almost 47 years ago.

Selamat membaca!

From August until December 2009, Jasmin Abschütz was the editor of SOROTAN. Based in Jakarta, she currently works as a junior advisor at GTZ.

SOROTAN 2010/1 5554 SOROTAN 2010/1

© Wardhana B

56 SOROTAN 2010/1

I M P R I N T

Publisher:EKONID - German-Indonesian Chamber

of Industry & Commerce STT No. 062/DITJEN PPG/STT 1976

Managing Director:Jan H. Rönnfeld

Editor:Katrin Sohns

Contributor:Britta Weck, Christina Schott,

Galih Angga Rizki, Iwan Nasution, Jasmin Abschütz, Katrin Sohns,

Kei-Lin Ting Winarto, Mareike Münnig, Martin Krummeck, Necip Bagoglu, Paula Yahya, Sonja Drexl-Trautmann, Teguh Sudarisman, Valencia Naomi Subroto

Assistant to the Editor:Sonja Dreher

Translation:Anu Pande, Crescentia Novianti,

Iwan Nasution

Art Director:Bagus Ajie Mandiri

Design & Layout:Bagus Ajie Mandiri, Wagiyo Utomo,

Wardhana B

Illustration:Wardhana B

Photography:Iie Maulidia, Iwan Nasution, Purnama

Muharam

Advertisement:Mei Tobing

Production:Andi A. Maulana

Print:PT Persada Utama Tirta Lestari

Publisher is not liable to any content printed in this magazine

Distribution:Iwan Nasution, Soebardji, Lisna Suparta,

Winartania Massie

LanguageEnglish

EKONID, the German-Indonesian Chamber of Industry and Commerce, represents the bilateral business interests of its Indonesian and German member companies and institutions in Indonesia.

As part of the network of German Chambers Abroad (AHKs), EKONID is officially mandated by the German Federal Government to promote trade and investment between Germany and Indonesia. EKONIDS’s corporate, institutional and private members are supported through a wide range of network and lobbying activities, especially towards ministries and other government authorities.

Initiated in 1970, EKONID has today established itself as a reliable and competent provider of business services for its members and clients in both Germany and Indonesia. Its areas of expertise cover market entry, trade fair participation, event management, advertising and promotion. EKONID understands itself as a responsible corporate citizen of Indonesian society and is active in social, educational and economic development projects.

Our vision is to continuously improve our business promotion, networking and service activities. We also strive to remain a respected partner, both for business and the wider community in Indonesia and Germany, so that we can continue to be the most important bridge for trade and investment in these two magnificent countries.

For further information, please visit our website at www.ekonid.com

Circulation:2,000

Editorial Office:EKONID

Jl. H. Agus Salim No. 115Jakarta 10310 Indonesia

Tel. 6221-3154685Fax. 6221-3155276

PO Box 3151 JAKARTA 10031E-Mail: [email protected]: www.ekonid.com

Bank Details:Deutsche Bank, Jakarta000-5355-01-0 (Euro)

CIMB Niaga BankJakarta, Menteng Branch202-01-00041-00-9 (Rp)

Photo Credits:Cover: Bagus Ajie Mandiri & Wardhana B; page 1 (Editorial): Aam Muharam; page 4 (Content): Wardhana B; page 5 (Content): Iie Maulidia; page 10

(Title Story): Aam Muharam; page 16 (Economy): Guang Niu/Getty Images; page 20 (Politic): John Bevan/stock.

xchng; page 26 (Portrait): Danish Khan/istockphoto; page 28 (Portrait): DIS; page 29 (Portrait): Aam Muharam; page 30 (EKONID Special): Iwan

Nasution; page 33 (EKONID Special): Iwan Nasution & Teguh Sudarisman;

page 34 (EKONID Special): Iie Maulidia; page 36-37 (EKONID Special): Museum

Tekstil Jakarta, Iwan Nasution & Iie Maulidia; page 38-43 (EKONID News): Iwan Nasution & Iie Maulidia; page

48-49 (Member News): Iwan Nasution, DBSchenker & BMW; page 50 (Trade Fair): Thomas Geiger/NürnbergMesse;

page 54 (Culture): Wardhana B

Subscription:If you wish to subscribe to the SOROTAN Magazine, please contact: info@ekonid.

or.id

Contribution:If you wish to contribute your article or if you want your company event to be covered by SOROTAN, please contact:

[email protected] or [email protected]

Next Issue:Next issue of SOROTAN will be published

in June 2010

Cover of this issue:

EU-ASEAN flag: on the EU flag each star stands for one member state. The ten stalks of padi on the ASEAN flag represent the dream of its Founding Fathers for an ASEAN comprising all the ten countries in Southeast Asia bound

together in friendship and solidarity.

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