OUR REPORT ON PRESIDENT'S JOKOWI FIRST VISIT TO GERMANY - AHK INDONESIEN
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VOL. XXV / 2 / 2016
t h e m a g a z ine o f t h e g er m an - I N D O N E S I A N c h a m b er o f ind u str y A N D C O MM E R C E
Our report on President’s Jokowi first visit to Germany
COVER STORY: ON THE SPOTLIGHT:
We interview Minister Rudiantara Exclusive interview with
and other key players of Indonesia’s Indonesian Ambassador to
burgeoning digital economy. Germany Fauzi Bowo.
VOL. XXV / 2 / 2016
CLOSER RELATIONS
Larger than life.
The new V-Class.
The MPV to amaze your world. The new V-Class, comes with a perfect design with versatile 7-seater, easily
turned into a spacious 8-seater system, giving you the maximum space and comfort. Thanks to 7G-TRONIC PLUS
automatic transmission and AGILITY CONTROL suspension, you’ll get the best driving experience.
Completing the Mercedes-Benz line-ups, crafted for your every need.
www.mercedes-benz.co.id
Specifications in this press may differ from the actual product for Indonesian market.
Digitalization makes cities smart.
Intelligent infrastructure helps urban environments become more efficient,
sustainable and livable.
Digitalization is changing the way cities work. It is enabling supply, smart mobility, and efficient buildings. For cities of
them to rise to the challenges they are facing: dealing with all sizes they are the key to maximize their resources, lower
population growth, traffic congestion, and power outages. operational costs, and reduce their environmental footprint.
And more than ever before, they are relying on integrated
and intelligent technologies to come up with solutions.
Siemens is working with infrastructure decision-makers
around the world to keep doing what matters most: allow-
Providing leading software and the know-how to interpret ing cities to grow and prosper, making them better places
massive amounts of data, Siemens is their trustworthy part- to live in.
ner. Digitalized automation helps create a reliable energy
siemens.com/intelligent-infrastructure
Contents
On The Spotlight
20 A Landmark Visit
Multi-million dollar deals and
intensified cooperation in
vocational education. Plus,
an exclusive interview with
Indonesian Ambassador to
Germany Fauzi Bowo.
Economic Review REGULARS
Blockchain in ASEAN
40
8 Member Updates
Shyamasri Das
52 EKONID News
Sharma, Director of
64 EIBN News
Working Capital Advisory at
66 Notes from Surabaya
Deutsche Bank, shares her
68 News in Brief
views on this cutting-edge
74 Trade Fairs Report
technology.
Column
Going Going Gone
44 The Indonesian
e-commerce
industry will continue to lure
businesses and investors,
despite the lack of clear
regulations.
Digital Highlights
26 Revolution
Uwe Beckmeyer visits
Indonesia
48 Pushes forward
committment to
How Indonesia plans to become intensify cooperation in
trade, vocational education
the Digital Energy of Asia and training.
2 SOROTAN EDITION 2 / 2016
20th July,
Foreword
THE MAGAZINE OF THE GERMAN-INDONESIAN
CHAMBER OF INDUSTRY AND COMMERCE
Managing Director & Chief Editor: Jan H. Rönnfeld
“Ich bin ein Kölner”
Editor: Andra Wisnu
Journalist & Photographer: Iwan Nasution
Creative Manager: Bagus Ajie Mandiri
T
hose were the words of President Joko Widodo at the German-
Digital Manager: Syafruddin Arief
Indonesian Business Forum in Berlin on April 18th, referring to his
Production Supervisor: Andi A. Maulana past experience of participating at trade fairs in Cologne during his
Print: time as a furniture producer. With that one phrase, he had, perhaps, truly
PT. Harapan Prima Printing caught the attention of the German business community. But impressing
The publisher is not liable to any content printed in is one thing. Delivering on the promises is quite another.
this magazine One important step in the right direction was achieved in Brussels,
Advertisement: Mei Tobing, Lembayung Fratiwi
Belgium, this April with the concluding of the scoping process for the
Comprehensive Economic Partnership Agreement (CEPA) between
Contributors: Birgit Steffan, Hardy Hoffman, Indonesia and the European Union. The official start of the negotiations
Laura Aramo, Lisa Hartmann, Mike Neuber, Prieta is now expected to take place within the next months. Another positive
Perthantri
development to be reported is the signing and enacting of the revision of
Digital Edition: http://indonesien.ahk.de/en/ the so-called Negative Investment List by the government in May, which
publications/media/sorotan/ includes some improvements for foreign businesses activities in Indonesia
Bank Details: and, most importantly, the increase of foreign share ownership in B2B
distribution companies.
Deutsche Bank, Jakarta
000-5355-01-0 (Euro) On the other hand, a wrong step in increasing business confidence,
CIMB Niaga Bank as well as improving the business environment in Indonesia, was taken
Jakarta, Menteng Branch with the termination of the German – Indonesian Investment Protection
800055828700 (Rp) Treaty, which will become effective in a year from now. This will create
uncertainties for new German investors between mid-2017 to the time the
Next Issue: Next issue of SOROTAN will be published
in September 2016 CEPA agreement will be effective.
But that’s a story for another day. In this edition, SOROTAN has prepared
a comprehensive report on President Widodo’s visit, including that of the
counter visit from Parliamentary State Secretary at the Federal Ministry
of Economic Affairs and Energy, Mr. Uwe Beckmeyer. We would also like
to extend our gratitude to His Excellency the Indonesian Ambassador to
Germany Mr. Fauzi Bowo for his contribution to the article.
For our main topic, we are taking a look at the somewhat invisible,
yet critical, part of infrastructure in Indonesia: the Digital Economy. As an
archipelago of over 17,000 islands, connecting its more than 255 million
people to the online world is a daunting, yet important task. We have gathered
interviews from many key players in the government and the private sector,
including that of Minister of Communications and Information Technology,
Mr. Rudiantara, and the proprietor of the Indonesian technology company
that is changing how transportation is being operated in the capital city of
Jakarta, Mr. Nadiem Makarim of Go-Jek.
As in every June issue of SOROTAN comes the first edition of the
year of the biannual Newsletter Law & Taxes. Spearheaded by our Head
SOROTAN is published by EKONID (German-Indonesian Chamber of Corporate Services, Mrs. Cassandra Stephanie Paulira, and in close
of Industry & Commerce). © Copyright EKONID 2016. All rights cooperation with our Law & Taxes Network partners, you should find the
reserved. SOROTAN is published quarterly by the Publication information within its pages useful to your business endeavors.
& Design Department of the German-Indonesian Chamber of Lastly, I would like to thank our members of the Board of Management
Industry & Commerce. Copying for other than personal use for the smooth execution of this year’s 46th Annual Members Meeting. On
or internal reference or of articles or columns not owned by behalf of the EKONID team, I wish you a great and successful second half
SOROTAN without written permission of EKONID is expressly
of 2016.
prohibited.
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Jan Rönnfeld
smm-hamburg.com
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Summitmas I, Lantai 16-17
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Selamat Hari Raya Idul Fitri
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Mohon Maaf Lahir dan Batin
Member Updates
Premium Partner
The Mercedes Among MPVs
The new V-Class sets new benchmarks in its
segment with modern design, high-class appeal
design and host of innovations
M
ercedes-Benz Indonesia recently announced the highest level in Indonesia’s premium segment”, says Roelof
youngest and largest member of the passenger Lamberts, Sales and Marketing Director for Passenger
car family, the new V-Class. This vehicle combines Cars Mercedes-Benz Indonesia.
room for up to seven people and exemplary functionality Looking at the exterior, the V-Class is unmistakably a
with the high-class appeal, comfort, efficient driving member of the Mercedes-Benz passenger car family. At
pleasure and safety that distinguish automobiles bearing the center of the powerful front is an upright radiator grille
the three-pointed star. The car offers ultimate experience with three-dimensional central star and the progressively
for everyone who appreciates great spaciousness but designed headlamps, which for the first time in this
does not want to sacrifice style and comfort. segment utilizes all lighting functions in LED technology.
“With the new V-Class we are expanding the Mercedes- The sculptured V-shaped bonnet merges elegantly with
Benz premium passenger vehicle range with an MPV for up the sporty chrome frame of the radiator grille and the
to seven adult occupants. This is a versatile, multitalented headlamps. The lower air intakes and the radiator grille
vehicle which offers value, efficiency and safety at the feature narrow louvres. In conjunction with the headlamps,Member Updates
which extend far into the wings, they emphasise the of 380Nm. The engine is combined with the tried-and-
width of the vehicle and underscore the self-confident tested 7G-TRONIC PLUS 7-speed automatic transmission,
appearance of the new V-Class. offering outstanding ease of shifting, fast and smooth gear
The clearly contoured side-wall is structured by two shifts, and high potential for fuel saving
elongated, taut lines. Both lines smoothly continue the The V 220 d can sprint from 0-100km/h hour in 11.8
distinctive contour lines of the front bumper and rise seconds and has a combined fuel consumption of 6.2l/100
slightly as they continue on towards the rear – appearing km. In the context of environmental friendliness, V 220
stretched when viewed from the side and suggesting d comes with oil and water pumps that are activated
dynamism. “The new V-Class demonstrates that an on demand to reduce fuel consumption and untreated
elegant and dynamic appearance is also possible in size emissions. Not to be left behind, the ECO start/stop
XXL”, added Roelof. function underlines how environmentally friendly the
Never was space as variably usable as in the new V-Class is.
V-Class, which makes it an MPV with virtually no
restrictions. With a load volume up to 4.630 liter, it can Safety and Comfort
be tailored to meet with any specific requirements. As A high level of driving comfort and an exemplary standard
standard, the V-Class is equipped with a 2-2-3 luxury of safety in the new V-Class raises the bar in the MPV
seats configuration. Thanks to improved technology and segment. Innovations from Mercedes-Benz Intelligent
operating logic, they can be folded forward intuitively to Drive such as the PRE-SAFE® system, LED Intelligent Light
afford fast and easy access to the rear. System, CROSSWIND ASSIST, Active Parking Assist with
The V-Class offers versatility down to the last detail PARKTRONIC, and the wide-angle reversing camera are just
and maximum flexibility in terms of seating position. In the some of the features available to keep your mind at ease.
standard seat configuration two comfortable individual Furthermore, the new V-Class is the only MPV in
seats are installed in the first rear seat row. They feature Indonesia that is equipped with DYNAMIC SELECT that
armrests on sides, a luxury head restraint, an integrated offers the four transmission modes of “C”, is the standard
3-point seat belt and ISOFIX child seat attachment points setting for comfort-oriented driving; “S”, for a sporty
for highest seating comfort and facilitate flexible use. The driving style with more direct accelerator and engine
many possibilities for settings and installations offer a response combined with faster 7G-TRONIC PLUS gear
perfect solution for many requirements: for example the shifts; “E” for efficient, economical driving; and “M” for
seats can be moved into a vis-à-vis position, and provide a manual gear shifts using the DIRECT SELECT steering
stowage surface when the backrest is fully folded forward. wheel shift paddles for a more direct engine response
The new V-Class is also equipped with electrical Last but not least, a ground-breaking and unrivalled
operated sliding doors on left and right, which allow the feature in the new V-Class is AGILITY CONTROL
sliding doors to be opened or closed electrically for more suspension with selective damping system. It adjusts the
convenience of the passengers. Meanwhile, the EASY- damping behavior to the road and the driving conditions,
PACK tailgate makes load compartment easily accessible ensuring that there is an appropriate balance between ride
through electric opening and closing of the tailgate. comfort and agility by varying the ride behavior, damping
characteristics and stabilization in accordance with the
Engine and Performance road surface and driving conditions.
The new V-Class is available as V 220 d and comes with “Our MPV is developed with a feel for driving pleasure
the state-of-the-art 2.1 litre four-cylinder turbo diesel and dynamism, which surely will become a real eye-
engine, which has already proven highly successful in catcher whether you’re on tour with your whole family
many passenger car model series worldwide. It is able to or travelling in style on business with a full load of
produce an output of 120 kW (163 hp) and maximum torque passengers,” Roelof concluded.
SOROTAN EDITION 2 / 2016 9Member Updates
Siemens and PLN sign
energy cooperation agreements
S
iemens and the state power company Perusahaan generator and the transmission and distribution grid will
Listrik Negara (PT PLN) signed two Memorandums be used mainly to electrify the eastern part of Indonesia,
of Understanding (MoU) at the sidelines of President particularly in areas with a large cluster of small islands.
Joko Widodo’s visit to Germany on April 18, 2016. The Furthermore, she said the PLN and Siemens
agreements entail the development of 500 megawatts cooperation, which she dubbed as a National Capacity
(MW) of distributed power generation capacities and an Building program, is further aimed to develop local
Indonesian transmission and distribution grid. manufacturers, to improve the expertise to operate and
The agreement is part of Indonesia’s effort to increase maintain, as well as to develop the local workforce.
its electricity supply. Under Indonesia’s comprehensive “PLN, starting this year, is looking to hire up to 5,500
infrastructure program, the nation aims to expand its new employees per year. Through this National Capacity
power generation capacities by 35 gigawatts by 2019. Buildling program, we hope to have more local content
Moreover it also comprises an expansion of the power [in power generating machines]. We also hope to be able
transmission and distribution grid in order to secure the to meet our need for skilled workforce effectively, and in
power supply of urban areas and improve the electricity speedy and as-required manner,” Nicke said.
access for other regions at the same time. Siemens and Indonesia has had a business relationship
“Siemens is ready to support Indonesia’s ambitious that dates back to 1855 when the company supplied 10
energy infrastructure program. With our broad portfolio telegraph machines to the country. Its first office was
and expertise we can help to develop a sustainable, established in Surabaya, East Java, in 1909. Today, the
affordable and modern power system,” said Dr. Roland company remains a reliable partner in Indonesia with its
Busch, Member of the Siemens Board. “Furthermore we wide range of solutions of services with focus on the areas
can provide support with our expertise for project financing of electrification, automation and digitalization.
and we are ready to expand our manufacturing capabilities
in the country.”
In a separate press statement, PLN Director of
Corporate Planning, Nicke Widyawati, said the power
10 SOROTAN EDITION 2 / 2016Member Updates
Facebook economics or Gado-Gado investing
Bosch holds a dialogue and networking event to
discover how the private sector can bring about
societal improvements to Indonesia.
W
hat does a company that produces household 14, focused on how businesses like Bosch could affect
appliances and automotive aftermarkets has to change in Southeast Asia’s largest economy. The title of
do with public welfare and social justice? That the event refers to how Facebook targets their customer
is the question PT Robert Bosch wants its employees demographic with extreme precision as opposed to the
to ask themselves. This question relates not only to the gado-gado, an Indonesian salad dish where a variety of
sustainability of the world’s resources, but also to the vegetables are mixed up with peanut sauce dressing – an
sustainability of corporate entities such as Bosch. allegory to his question as to which strategy will end up
To ignite the conversation, Bosch invited founder being more sustainable and profitable.
and CEO of The Global Institute for Tomorrow (GIFT), Setting his talk against the backdrop of a faltering
Chandran Nair. Mr Nair has long been promoting the global economy, Mr. Nair called on companies like Bosch
to think about how it should go about doing business
in regards to providing what the world actually need as
opposed to simply meeting their success metric. He
“Nothing is easy in identified food and housing as the major challenges facing
Indonesia, but nothing is Asia today, further adding that businesses have a place
in making food and housing available to the millions of
impossible either”. people living in this part of the world.
- Ralf von Baer, Bosch Indonesia One solution proposed by Mr. Nair is to have companies
Managing Director tap into sovereign wealth funds or create a social wealth
fund to be invested into social programs. He set the
example of the ASEAN Economic Community (AEC), one
need to understand the impacts of globalization and the of the world’s largest economies, whose strength could be
role of business in society. He serves on the Governance used to tackle the aforementioned challenges.
for Sustainability Global Agenda Council of the World In closing the dialogue, Bosch Indonesia Managing
Economic Forum and is also a regular speaker and panelist Director Ralf von Baer said he hoped the discussion could
for the APEC CEO Summit and conferences organized by inspire his employees, as well as professionals from other
the UN and OECD (Organization for Economic Co-operation companies among the guests who attended the dialogue,
and Development). to think about how business can affect the world.
The dialogue, which was dubbed “Facebook In quoting the remark he made earlier in that evening:
Economics or Gado-Gado Investing” and was held at “Nothing is easy in Indonesia, but nothing is impossible
Satoo Garden in Shangri-la Jakarta on the evening of April either”.
SOROTAN EDITION 2 / 2016 11Member Updates
BASF introduces Soy Doctor program
BASF helps farmers to increase “BASF developed the Soy Doctor program with the
Australia-Indonesia Partnership for Promoting Rural
competitiveness through Soy Doctor Income through Support for Markets in Agriculture
program (PRISMA). Through this partnership with PRISMA, we
are helping farmers to increase their competitiveness
O n April 5, 2016, BASF introduced the Soy Doctor
program at the soybean harvest day in Bima, West
Nusa Tenggara, with the aim of improving the productivity
by improving productivity, fostering innovation and
applying Good Agriculture Practice in crop cultivation,”
said Asrul Iman, Market Development for BASF Indonesia
of soybean farmers. Through the program, 15 farmers who presented certificates to the soy doctors during the
were selected as soy doctors and trained on good soy soybean harvest day.
cultivation techniques. The soy doctors then share the At the harvest day, farmers shared the positive results
knowledge and practical skills on seed treatment and from the program which included higher yield by 20%,
planting method with their fellow farmers. Each soy doctor soybean plants that are more vigorous and with more root
reaches out to about 50 to 100 farmers. mass and pod filling.
MasterEase® from BASF The combination of low viscosity and concrete mix stability
reduces the time and effort for pumping and placement of
concrete, making installation much easier and faster.
“We collaborate with our customers to continuously
work on new products and solutions as well as innovative
technologies. With the launch of MasterEase®, we are
offering our most advanced products in Indonesia to
support our customers in overcoming construction
challenges and to realize their projects,” said Bjoern
Peine, Head of BASF’s Construction Chemicals Division
in Indonesia.
Concrete producers and users will benefit in many
ways from the new technology, which is flexible and can
be adapted to challenging situations such as temperature
and material variations. Being easy to place, trowel and
pump, the concrete helps save time and cost in every
single construction project. It improves the utilization of
the transportation fleet and equipment, and reduces the
BASF launches new technology for wear of mixers, pumps and pipelines.
concrete industry in Indonesia High-strength concrete with low water/cement
ratios, as well as mixes with higher levels of secondary
B ASF has launched MasterEase®, a new generation
concrete admixture based on new technology that
reduces viscosity in concrete by up to 30%, in Indonesia.
cementitious materials reduce the CO2 footprint, helping
engineers and investors to improve the sustainability
ratings of their projects. During the launch in Jakarta, a
The new admixture range improves the rheological demo session was held whereby guests witnessed the
properties and the stability of high-performance concrete. quality and advantages of the technology up-close.
12 SOROTAN EDITION 2 / 2016We create chemistry that makes compost love plastic.
Member Updates
BMW presents:
The all-new BMW X1 & the BMW M2 COUPÉ
BMW X1: the sportiest compact Sport BMW M2 COUPÉ: A High-performance
Activity Vehicle (SAV) sports machine with intoxicating
performance
B M
MW Indonesia has introduced to the country the all- eanwhile, setting a fresh benchmark in dynamic
new BMW X1, the sportiest compact Sport Activity potency and agility in the compact high-
Vehicle (SAV) in the segment and a vehicle that performance sports car segment, the all-new BMW
oozes class and boasts remarkable agility. The launch M2 Coupé offers motorsport technology for both the road
of this tremendous new model also highlights BMW’s and the race track. At the same time, it provides proof that
commitment to adding more locally-assembled models to M is still the most powerful letter in the world.
the Indonesian market. “M stands for motorsport and M stands for emotion.
All the vehicle’s outstanding elements were on show at The long-awaited BMW M2 Coupé represents a new entry
the launch event held in Jakarta. This vehicle is not only point for the BMW M family, and this remarkable vehicle
sportier and more robust, but also more comfortable, and makes an extremely powerful statement in the expanding
features increased space, premium quality in its details and fiercely contested compact high-performance
and particularly classy equipment features. segment. There is no doubt in my mind that BMW will win
The all-new BMW X1 has been developed in a way over many new and younger customers with this vehicle,”
that shows off its exterior appearance and interior said Karen Lim, President Director BMW Group Indonesia.
design to amazing effect, and is completely befitting of Since 1972, BMW M has built numerous legends that
a member of the BMW X family. The all-new BMW X1 went on to conquer the hearts of motorsport fans across
features a combination of all the ingredients to become the world. This includes the classic BMW 2002 Turbo,
the leader in the segment founded by its predecessor, which was one of the most emotionally rich cars of its
while introducing new target groups to the thrilling time as well as the first series-produced European car to
unlimited driving pleasure which has long been the feature a turbocharger.
signature of BMW. Another feature of the all-new BMW “It has been over 40 years now since the BMW 2002
X1 unique in the compact segment is an interior design turbo set the benchmark for driving dynamics and
which guarantees the ultimate in driving enjoyment. agility. Then, as now, the aim was to offer our cherished
customers sheer driving pleasure in a compact design.
Now, the car so many people have been waiting for has
arrived,” added Karen.
14 SOROTAN EDITION 2 / 2016Member Updates
K.D. Feddersen returns to Indonesia
business in the largest economy in ASEAN.
“We are very excited to open a representative office
here in Jakarta. After doing business in Indonesia for so
long, and having representatives offices in other countries
in Southeast Asia, it is only fitting that we have a physical
presence in the most important market in Southeast
Asia,” said Leonard Brand, the Managing Director of K.D.
Feddersen who flew to Jakarta from Germany to attend the
launching of the new office this May.
K. D. Feddersen had previously operated a representative
office in Jakarta. It closed following the Asian economic
crisis in the late 1990s, though it continued its business
via a local partner. Prior to that, K.D. Feddersen has done
K
.D. Feddersen Ueberseegesellschaft GmbH, a business in Indonesia since the late 50s and early 60s –
company that specializes in trading and importing mostly on the import of raw chemicals and woodworking
raw materials, spare parts and capital goods for the components. With its business now having developed
automotive industry, steel manufacturers, the furniture further to supplying plastic material for industry, the
industry, chemical industry and agrobusiness, to name company saw fit to reopen its Jakarta representative office.
a few, has finally re-opened its representative office in K.D. Feddersen belongs to the Feddersen Group, which
Jakarta, Indonesia. was founded in 1949 by Karl Detlef Feddersen. In 1985, it
Located in Wisma Keiai in Jl. Sudirman – at the heart of became K.D. Feddersen Holding GmbH, with K. D. Feddersen
Jakarta Central Business District – the company’s return Foundation acting as the holding’s sole owner.
to form in Jakarta shows its committment in expanding its
Indovickers Furnitama launches
collaboration with Teknion
P
T Indovickers Furnitama launched a cooperation with In 1998, Indovickers began operating a 10,000 sqm
Teknion, one of the world’s most well known brands production factory in Cipinang, East Jakarta. Indovickers
and one of the five strongest companies in the field of has been supplying office, hospitality and public facility
furniture, to meet the growing demand from the Indonesian furnitures. Its portfolio include office desk and office
market for quality products. This cooperation is expected chairs, executive desks, storage and filing, conference
to improve market penetration for both companies. room furniture, system furniture, LCD arm and many more.
“With this cooperation, we aim to be even stronger and Sani Loekman, Director of Indovickers, expresses the
bigger, be it in Indonesia or in Asia Pacific. The growing same hope for the joint venture. “We will, together, meet
demand for local furniture is our main reason for partnering the demand of the Indonesian furniture market. With good
with Indovickers,” said Saiful Anwar, Direktur Marketing production, as well as the right team and facilities,” he said.
and Customer Teknion at an “Exclusive Event” held by PT. “Indonesia is a great market for furniture products.”
Indovickers Furnitama at hotel Mulia, Jakarta on March.
SOROTAN EDITION 2 / 2016 15Member Updates
TÜV Rheinland launches first independent
tire testing lab in Indonesia
T
ÜV Rheinland has opened the first independent tire- countries as well as investing in potential markets. The
testing laboratory in Indonesia. Located at Taman goal is to simultaneously support customers and to make
Tekno BSD in South Tangerang, Banten, the new the TÜV Rheinland brand synonymous with laboratory
530 sqm lab is fully certified by the Indonesian National best practice.
Accreditation Body (KAN) Staffed by an expert
and is qualified to test team offering tire testing
passenger car, truck, bus and approval services,
and motorcycle tires to the facility has already
the latest national and won clients from across
international standards. 16 countries and
The opening comes issued nearly 200 SNI
amid accelerating econo- Certificates for tires. “The
mic growth in Indonesia. planning was meticulous,
Indonesian car sales are from the selection
predicted to rise by up to of the location and
10% (yoy) to 1.1 million equipment to recruiting
vehicles in 2016. The and training a talented
facility will support the workforce, achieving
Indonesian Ministry of An ‘Indonesian’ ribbon cutting ceremony marks the launching of TÜV KAN accreditation and
Industry’s goal of boosting Rheinland’s tire testing lab. being appointed by the
industrial competitiveness Indonesian Ministry of
through increased standardization, as well as the Ministry Industry. It has been built on over 140 years of experience
of Transport’s goal of reducing road accidents to zero by in the certification sector, as well as a commitment
meeting the need for world-class tire testing in the country. to constantly improve our quality in order to provide
“The large and growing population in Indonesia is outstanding services to our local and global clients,”
driving demand for rapid, reliable and, above all, safe said Ralf Scheller, a Member of the Executive Board of
transportation. As a leading independent international Management for TÜV Rheinland AG.
provider of technical services for testing, inspection, “The opening of the TÜV Rheinland tire testing facility
certification, consultation and training, TÜV Rheinland’s is a reflection of the long-term growth potential of the
Tire Testing Laboratory will support that demand while Indonesian tire market. It will support the industry’s
meeting the quality and safety needs of our customers tire quality goals and ensure that specifications meet
– in the country, around the region and across the the standards and regulations set by the Indonesian
globe,” said Nyoman Susila, Managing Director of TÜV government. We wish TÜV Rheinland every success and
Rheinland Indonesia. warmly welcome the launch of this facility,” said Pascal
The Tire Testing Laboratory is part of TÜV Rheinland’s Nouvellon, Managing Director of PT Michelin Indonesia.
global strategy for 2016-2020, under which the Group
intends to continue expanding its network of over 69
16 SOROTAN EDITION 2 / 2016Member Updates
Allianz announces
5 top players
for Allianz Junior
Camp 2016
A fter some very tight competitions, five talented young
players were finally chosen to represent the Jakarta
zone for the Junior Allianz Camp 2016 at an announcement
Bayern’s legendary footballer and former striker (circa
1997-2003), and Brazil’s national squad member, Giovane
Elber.
event at Soemantri Brodjonegoro Stadium in Jakarta on “Out of the 2,000 participants that enrolled, you are
April 28. the only ones that are left remaining. You should be proud
Aditya, M. Fauzan, Haikal, Agung Batara dan Rizki Nur but also to continue working hard. Don’t be satisfied your
is set to join the Asia Camp in Bali, which will last from performance yet. There will always be the next challenge,
July 19 to 22, this year, where they will go to head-to- the next level,” said Elber to the players.
head with the winner of the Surabaya zone. Two players The event also saw a quick coaching clinic and a
who performed the best will then be eligible to represent meet-and-greet between Elber and fans of the bundes
Indonesia to Bayern Muenchen headquarters in Germany. liga team, as facilitated by the FC Bayern Fan Indonesia
These young players may consider themselves lucky (FCBFI) fan club.
as they got to gain valuable lessons on some football
basics such as passing, shooting and dribbling, fromMember Updates
Tanjung Pinang govt. calls out to investors
O
n May 12, 2016, in Jakarta, the Tanjung Pinang city Indeed, one of the points that were stressed during
government from the Riau Islands (Kepri) province the briefing was the fact that Tanjung Pinang FTZ and
administration held an investment-briefing event to Batam FTZ were two completely different zones, with
introduce the city’s potential as an investment destination. each zone having its own authority that coordinates and
Held at the InterContinental Jakarta MidPlaza Hotel, the handles investments.
event was attended by about 50 potential local and foreign It is important to note that Batam is both an island and
investors, ranging from managerial-level representatives a municipality in Kepri province. The Batam metropolitan
from the hotel industry to representatives from office area consists of the three main islands of Batam, Rempang
furniture companies. and Galang, all of which are connected via the 642-meter
“Our goal in having this event is to promote our city, Bareland Bridge. Batam is currently the largest city in
Tanjung Pinang city, as an investment destination because Sumatra after Medan in North Sumatra and Palembang
we must no longer rely on our regional income. We need in South Sumatra. Kepri province’s Batam, Bintan and
to develop faster. We can develop it faster. We hope that, Karimun Islands are home to hundreds of premium resorts
with this event, in the future, we’ll have more visitors, more and shopping establishment, which is largely due to marine
investors coming into Tanjung Pinang,” Drs. Syahrul, the tourism and accessibility from neighboring Singapore.
Deputy Mayor of Tanjung Pinang City, told SOROTAN at the Meanwhile, Tanjung Pinang is the capital city of
sidelines of the event. Kepri. The municipality boasts a historical record that
Under the form of a panel discussion, the investment can be traced back to the Melayu Kingdoms prior to the
briefing event had Drs. Syahrul spoke at length about colonization of the area by the British, Dutch and Japanese
the various policies that have been laid in place by the forces. Recently, following its acquisition of an FTZ status
Indonesian central government, as well as the multitude in 2007, the city has set aside an 80-hectare area for the
of potential investments available in Tanjung Pinang. development of an industrial park. The Tanjung Pinang
Alongside Drs Syahrul was Mr. Husen Maulana, Director of FTZ itself follows the concept of an enclave, with two
Regional Promotion Facility at the Indonesian Investment areas within the city, 1,300 hectares in Dompak and 1,333
Coordinating Board (BKPM); and Mr. Zamzami Karim, hectares in Senggarang, designated as free trade zones.
Deputy II of the Tanjung Pinang Integrated Service and “With this in mind, we’ve travelled across the nation
Licensing Facility; to promote our city as an investment destination. And
The city of Tanjung Pinang was declared a Free Trade we’ve already had a number of investors interested in
Zone (FTZ) in 2007. However, development of the area investing in Tanjung Pinang who will be visiting our city
is largely considered to be moving at a snail-like pace soon. We will announce who these investors are in due
due to the failure of the region to attract investors – a time,” Syahrul enthused.
problem that was further exacerbated by confusion on
the part of overlapping authorities with the neighboring
Batam FTZ Authority.
18 SOROTAN EDITION 2 / 2016Invest in
Tanjungpinang
Dompak Sector
Industrial Area Techno Park Residental Area
Shipyard
Warehouse
Port Tanjung
Dompak Island Batu Sawa
Port Mocco
Free Trade Zone in the
Tanjungpinang capital.
Malaysia
Dompak in Tanjungpinang is designated to be
JOHOR BARU
the region’s center for heavy industries and
trade. It is home to the Tanjung Mocco Sea- Singapore
port: a vital trading hub of the Riau Islands
(Kepri) Regional Government. It stands to rea- SINGAPORE
son then that Dompak is also the center of
Batam Bintan
the Kepri administration, making it the per- Island Island
fect bridge to neighboring FTZ Bintan and the
Central Government. In further ensuring that
the growth and economic welfare are evenly TANJUNGPINANG
distributed to all elements of society within Riau Islands
Kepri, the Tanjung Pinang administration has
prepared a masterplan to assist investors in Tanjung Pinang is strategically located between
utilizing all the benefits of FTZ Dompak such Singapore, Johor in Malaysia, and Riau Province
as land acquisition and one-stop shop. Make in North Sumatra. Within the city is the 2,633 ha-
large FTZ Dompak and FTZ Senggarang. Tanjung
FTZ Dompak your next destination to grow Pinang can be reached by a 2-hour ferry ride from
your business. Tanah Merah, Singapore, or a 3-hour ferry ride
from Stulang Laut, Malaysia.
Housing & Schools Hotels & Industry Sports Banks & Offices
Entertainment
Badan Pengusahaan Kawasan Perdagangan Bebas www.bptanjungpinang.id
dan Pelabuhan Bebas Bintan Wilayah Kota Tanjungpinang
Jl. WR. Supratman Km 09 (atas) - Tanjungpinang
Telp./Fax. : (0771) 4440015
Email : ftztanjungpinang@gmail.com / bpk_tpi2014@yahoo.comOn the Spotlight
A Landmark Visit
President Joko “Jokowi” Widodo became the second Indonesian President to embark
on an official visit to Germany after his predeccessor, former-President Susilo
Bambang Yudhoyono, first visited the country in 2013. His main agenda of economy
and business was facilitated by EKONID in the form of a top-level business forum and
a visit to one of Germany’s largest vocational training facilities.
T
he visit, which was part of a nearly week-long (from Bowo and Deputy Chief of Protocol of the Federal Republic
April 17-23), four-country tour across Europe that of Germany Kondrat H. Arzvob Straussenberg.
spans Germany, Great Britain, Belgium and the
Netherlands, carried with it the mission of strengthening The Business Forum
bilateral economic and business cooperations between President Jokowi began the next Monday morning by
Indonesia and the European nations. meeting with CEOs and top-level managements from over
200 German companies. Arranged by EKONID, the forum
The President, who was accompanied by Cabinet Secretary gathered together the German business leaders with
Pramono Anung, Trade Minister Thomas Lembong, government officials, as well as 42 Indonesian business
Coordinating Minister for Economic Affairs Darmin leaders from various fields.
Nasution, Chief of the Indonesian Intelligence Agency
Sutiyoso, Chief of the Indonesian Investment Coordinating The forum further allowed the German business leaders
Board Franky Sibarain, and presidential staff/presidential to hear firsthand the various developments that had been
communication team member Ari Dwipayana, flew to on the forefront of Indonesia’s solid economic-growth,
Berlin via Halim Perdanakusuma Airport in Jakarta at including the President’s much talked-about deregulation
8.30am on April 17, Sunday, arriving at Tegel International policies.
Airport at 8.45pm (local time) in the evening.
“Ich bin ein Berliner [I am a Berliner],” the President said in
On arrival at the Tegel airport, President Jokowi was opening the forum, quickly adding that: “If Kennedy, not far
greeted by Indonesian Ambassador to Germany Fauzi from this place, 50 years ago said so, I would prefer to say
20 SOROTAN EDITION 2 / 2016On the Spotlight
Meyer Werft, Ferrostaal, Bayer, Siemens, Daimler and
Deutsche Bank. Concurrent with President Jokowi’s official
visit, a number of companies from the two countries has
signed business agreements worth at least US$875 million
(over Rp 11.68 trillion).
Towards better vocational training
After the German-Indonesian Business Forum, President
Jokowi met and talked with German Chancellor Angela
Merkel and German President Joachim Gauck.
The German-Indonesian Business Forum was arranged by the joint effort
of the Indonesian Government, EKONID, and the Asia Pacific Association. With Chancellor Merkel, President Jokowi emphasized
their willingness to intensify economic cooperation. It was
also revealed that the two countries have agreed to further
‘Ich bin ein Kölner [I am a Cologner], because 15 years ago develop the cooperation with a special emphasis on
I came to Cologne for the International Meubel Messe as educational vocational training, in compliance to President
a furniture entrepreneur and furniture exporter,” he said – Widodo’s wish.
earning him the applause of the attendants.
The Chancellor added that the Parliamentary State
President Jokowi went on to allay concerns in regards to Secretary at the Federal Ministry for Economic Affairs and
investing in Indonesia, saying that his administration’s Energy Uwe Beckmeyer would, during his stay in Indonesia
then-last 11 economic deregulation policy packages in May, evaluate the first steps as to, ”how we can support
assures the world that Indonesia was serious about the vocational training system in Indonesia and improve
reforming its economy. “I will continue to reform, I will the incorporation of the dual vocational education [the
continue to simplify licensing, I will make Indonesia’s concept of working and studying at the same time]”. The
economy more open,” he said. main focus was to gain interest among the private sector.
Moreover, the visit shows the Indonesian government’s
He added that Indonesia’s GDP had also grown relatively huge interest in settling a free-trade agreement with
stable at around 5 percent in the last few years amidst the European Union. Germany is committed to turn the
declining growth among other emerging economic. Jokowi preliminary discussions into negotiations, emphasized
received another applause from the audience with his the chancellor.
closing remark: “I am like the German people, I don’t like to
talk a lot, but I like to [work] a lot”. Meanwhile, with President Gauck, President Jokowi
issues that range from human rights, the incursion of
After opening the forum, President Jokowi had meetings China into international waters, and Indonesia as model
with CEOs from a number of German companies, including of democracy and Islam co-existing. “President Gauck
22 SOROTAN EDITION 2 / 2016On the Spotlight
valued President Jokowi as a progressive leader who can
move Indonesia forward politically and economically,”
said presidential staff/presidential communication team
member Ari Dwipayana, as quoted by Liputan 6.
The President ended his official visit with a trip to the
Siemens Professionals Education Facility in Siemenstadt,
Berlin. The visit is an important as Indonesia believes it
needs to improve on its workforce following the advent of
the ASEAN Economic Community.
“Indonesia is serious in replicating the German vocational
education system in order to move the Indonesian industry
forward, particularly in the field of energy, textile, maritime
and other fields,” said President Jokowi, as quoted from a
press release.
MoU signings
Value
No Indonesian signee German signee
(US$ million)
Cronimet and
1 PT Aneka Tambang 800
Ferrostaal
2 PT Pelni Meyer Wertft 40
3 PT Pindad Junghans Microtech 5-20
Asia-Pacific Resources TOP: The business forum also saw a signing of a number of MoUs
4 Inapa Group 35
International Limited between Indonesian and German companies. BOTTOM: The forum was
attended by some of the most highly respected CEOs and Government
5 PT PLN Siemens Undisclosed representatives from both nations.
Vocational Visit
measurement in vocational education in Germany. Mr.
Leubner further explained the principles of vocational
education, which include a Government and Industry
Partnership, National Standard Application, Vocational
Education Staff, and Research Institution Availability.
“Siemens has successfully developed a vocational
education system. We are focusing on improving
vocational education to meet the needs of the current
market. In Indonesia, labor skills should be developed
to face challenges in the implementation of the ASEAN
economic community,” said Indonesian Minister of Foreign
Affairs Retno L.P. Marsudi, who accompanied the President
during his visit to the Siemens Professional Education
A t his last day of his official to Germany, President
Joko Widodo took the opportunity to visit the
Siemens Professional Education Facility in Siemenstadt,
Facility.
Siemens Professional Education offers vocational education
Berlin. He was welcomed by Dr. Busch and Thomas for the whole area in Germany (41 locations). The facility
Leubner, the Senior Director of Siemens Professional trains approximately 10,000 participants under an annual
Education (SPE) Training Center. investment of €187 million, making Siemens one of the
biggest facilitator of dual education in Germany. Every year,
The President received general information related to Siemens produces approximately 2,000 graduates.
German vocational education and on the successful
SOROTAN EDITION 2 / 2016 23Behind
the curtain ANDRA WISNU & Iwan Nasution
President Joko Widodo’s visit to Germany would not have ran as smooth as it
did without the active role of the Indonesian Ambassador to Germany, Mr. Fauzi
Bowo. We interviewed the former Jakarta Governor for his take on how the visit
will affect further relations between Germany and Indonesia.
SOROTAN:
partnership between Indonesia and Germany. Another
Mr. Bowo, President Joko Widodo’s visit to Germany
important point of cooperation that was confirmed by both
is the second official visit from an Indonesian President to
leaders is the cooperation on technical and vocational
Germany after, in 2013, then-President Yudhoyono visited
education and training (TVET). This has been quickly
Berlin. How do you foresee this official visit affecting
responded by German side with the visit of Parliamentary
German-Indonesian relations in the future?
State Secretary to the Federal Minister for Economic Affairs
and Energy, Mr. Uwe Beckmeyer, to Indonesia on May 2016,
FAUZI BOWO:
and from the Indonesian side with the visit of Minister of
The recent visit of President Joko Widodo to Berlin
State Development Planning [BAPPENAS], Mr. Sofjan Djalil,
was his first official visit to Germany as President of the
which occured back-to-back with the ADB Annual Meeting
Republic of Indonesia. The visit has made a great impact in
in Frankfurt, also on May 2016. I believe that this visit will
terms of Indonesian-German relations, not only signaling
be followed by even more official exchanges between the
an even closer relationship but also strengthening
two countries.
cooperation in every aspect of bilateral relations such as
politics, economic, socio-cultural and security.
What about the Indonesian-German business forum
that took place on the second day? Do you feel that
The highlight of the visit was that both leaders have
the forum had achieved what it had set out to do, which is
agreed to commence the process of updating the 2012
to promote further business cooperations between the two
Jakarta Declaration, the foundation of the comprehensive
countries?
24 SOROTAN EDITION 2 / 2016On the Spotlight
The organization of Indonesian-German Business its products. Meanwhile Indonesia will see Germany also
Forum is indeed one of the highlights of President as a potential market for its products and potential source
Joko Widodo’s visit to Germany. The Forum managed of foreign direct investment. The visit of Mr. Beckmeyer is a
to attract more than 200 businessmen and witness the strong signal of German’s continuous interest in Indonesia
commitment of President Joko Widodo towards German and for that, Germany needs to follow up with even more
business community in doing business with Indonesia, plans to invest in Indonesia.
with various economic prospects and potentials, less
bureaucracy, business-friendly deregulation packages, What do you think of President Widodo and
and attractive incentives as a way to simplify doing Chancellor Merkel’s plan of intensifying cooperation
business in Indonesia. in vocational education? Based on your own experience,
what do you expect Indonesians to gain from this
The visit of President Joko Widodo to TVET center in cooperation?
Siemensstadt is also considereded as another highlight of
the visit, as the President directly observed how the German Germany excels in vocational education, a feature
Duale Systeme works and how it is an important element which Germany receives recognition from all over the
of German industry and competitiveness. President Joko world. Dual system in the TVET has kept the unemployment
Widodo sees the immediate necessity for Indonesia to in Germany at a low level, especially for people under 24
give more attention to vocational education as the way to years old, effectively making it the second lowest youth
enhance competitiveness of human resource in Indonesia. unemployment rate in the world at 7.3%.
One of the main areas of bilateral cooperation that Indonesia has to learn a lot from Germany especially
President Widodo wanted to improve is economic in educating the youngsters. Indonesia is facing a
cooperation. On the other hand, Indonesia makes up less liberalization with the implementation of the ASEAN
than 1% of Germany’s total outward investment, or about Economic Community, which also includes freedom of
US$552 million in the 2010-2015 period according to the movement of people. In order to remain competitive in
Indonesian Investment Coordinating Board. How do you ASEAN, especially in human resource and competence,
think we can improve this cooperation? Indonesian needs to upgrade the skills of its labor force
so that they could sell themselves at least at the same
German is indeed still one of Indonesia’s most level with other ASEAN nationals. This is where Indonesia
important investors. While the statistics is certainly should take the German vocational training as an example
undebatable, it is also however true that Germany is one of a proven system on seamless transition between
of Indonesia’s strongest investors. There are more than education and professional career. This is also another
300 German companies operating in Indonesia and, in way of how Indonesia could switch from a consumption-
2015, the overall volume of trade reaches $6.13 billion driven economy to a production-based economy.
with an upward trend. It is also important to note that
2015 indicates the turning point of flow of German FDI to Can you share any future plans the Indonesian
Indonesia, which has been declining in the last 5 years. Embassy might have in improving German-
German FDI in Indonesia reached $57.27 million, an Indonesian relations?
increase of 14% compared to 2014 with the value of $50.2
million. The Embassy will work closely in monitoring and
coordinating the follow up of the meeting. There
Indonesia’s investment performance still indicates are a numbers of already existing cooperations such as
positive signal and shows some positive impacts that training, cultural exchange and also participation in events
is driven by, among others, the creation of labor force, a that are especially related to tourism, trade and investment
steady investor trust to the Indonesian economic and for both countries. The Embassy will also facilitate visits
good political fundamentals, as well as the prospect of of German business delegation to Indonesia as well as
Indonesia’s long-term economic growth in the coming participation of Indonesian business and industries in
years. The robustness of German economy is also a various trade fairs in Germany. Specific activities will also
determining factor for a greater bilateral trade and focused on enhancing access for Indonesian products
investment cooperation between Indonesia and Germany. in Germany and in EU, especially in the framework of
Despite the current global economic slowdown that has the ongoing process of establishing Indonesia-EU trade
taken its toll on many major economies, German economy liberalization through the Comprehensive Economic
remains steady, supported among others by impressive Partnership Agreement [CEPA].
export performance and increasing import.
This is where Indonesia and Germany can improve their
economic relations. Germany still sees Indonesia as a
potential market and, in a longer run, production base for
SOROTAN EDITION 2 / 2016 25Cover Story
Digital Revolution
With an estimated 88.1 million active internet users, US$20 billion in sales volume,
and 21.5% digital buyer penetration as of 2015, the Indonesian e-commerce
sector has all the right ingredients to become one of the world’s largest digital
economies. However, massive changes must be undertaken for the country to
fully achieve that goal. SOROTAN has interviewed a number of key figures who are
instrumental to these changes. Here is our full report.
26 SOROTAN EDITION 2 / 201628 Unleashing e-Commerce
“With a population of about 250 million people and
an average age of below 30 years, Indonesia is
positioned as the ‘El Dorado’ for the e-commerce
sector.”
Rudiantara
32
Communication and
Information Minister
Lead the way Chief
“The target is January 1, 2019. Everyone. All
capital cities, regencies, municipalities, all of these
must have broadband connection. What I mean
by broadband is that the connection must have a
capacity of at least 10 Gigabytes in each area.”
36 34
David Rimbo
Managing Partner at Ernst &
Digital pitfalls Young Indonesia
“Major mistake thinking you can
just go alone and just improvise
without actually talking to experts Get digital or
in these technology hubs around
the world on what works. Huge
get left behind
mistake.” “The days of, that style of, ‘hey, I
produce the best products in the world,
the best services, you come and buy it
and I determine the price’, that’s long
gone.”
Nadiem Makarim
CEO of Go-jek
SOROTAN EDITION 2 / 2016 27You can also read
