FACILITATING TRADE & INVESTMENT BETWEEN

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1 ISSUE UPDATE FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN THIS MONTH S FEATURES Meet the New Chair of Indonesian Chamber of Commerce and Industry - Rosan P. Roeslani [P. 31 ] Indonesia A GOOD PLACE TO DO BUSINESS, A GOOD PLACE TO RELAX B jkt jakarta BUSINESS & ECONOMICS Business Confidence Index 2015 [P. 14 ] LEISURE AND RECREATION Sports Diving in Indonesia [P. 37]

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3 ISSUE TABLE OF CONTENTS 04 Forthcoming Events 05 Chairman s Message 06 Executive Update 07 Overseas Business Network Update BANKING & FINANCE 08 Trade Winds: Shaping the Future of International Business (HSBC) 10 Are You a Winner or a Loser in the Oil Game? (COLIN BLOODWORTH PPI INDONESIA) 12 Indonesia: Sustaining Growth Momentum (ALDIAN TALOPUTRA STANDARD CHARTERED) BUSINESS & ECONOMICS 12 Indonesia: Sustaining Growth Momentum 14 BCI 2015: Global Factors Drive Index Down, but Key Indicators are Positive (EUROCHAM) 17 UK Visit Seminar 2016 Surabaya 19 Vice-President Launched Three- Hours Investment Licensing Service (BKPM) 21 Ownership of Homes or Residences by Foreigners in Indonesia (MICHAEL S. CARL AND MIFTAHUL KHAIRI SSEK)) 22 Strong Forces behind the Growth of F&B Sector (GIGI LIU THE EXECUTIVE CENTRE) 37 Sports Diving in Indonesia SPECIAL EVENTS 24 BritCham Christmas Party UK Visit Seminar Bandung 28 Meet the New Indonesian Ambassador to the UK 30 Meet Pak Rosan the New Chair of Indonesian Chamber of Commerce and Industry (KADIN) THIS MONTH S FEATURES 31 Rosan P. Roeslani The New Chair of Indonesian Chamber of Commerce and Industry (KADIN) 33 Ross Hunter Executive Director of the UK-ASEAN Business Council 34 Bamband Sudradjat Deputy Chairman of Indonesian Chamber of Commerce Central Area (Bali, Jawa and Kalimantan) LEISURE AND RECREATION 37 Sports Diving in Indonesia (DR BRANDO INTERNATIONAL SOS) 38 Cultural Survival Guide Travelling in Indonesia (DR BRANDO INTERNATIONAL SOS) 39 E-Books: A New Page in Reading (POONAM SAGAR PT INFOTECH SOLUTIONS) 43 The Future Paradise Bali (GIGI LIU THE EXECUTIVE CENTRE) 45 A Journey to Exotic Indonesia (ANKA BRITCHAM) 48 Travel Safe (RAFFLES HOSPITAL) 49 A Magical Trip to Nepal (IRENA BRITCHAM) 52 Wonderful Indonesia: 2016, the New Excitement of Indonesia Tourism Sector (CHENNY BRITCHAM) 53 Borneo: A Hidden Paradise (CHRIS COOK BRITCHAM) LIFESTYLE AND HEALTH 54 The Fitness Industry (RON WHITE BALI HEALTH) EVENTS 55 Giving Kids A Sporting Chance + Nusantara 7s 56 EIBN Joint Gathering 57 Breakfast Briefing with APINDO: In Support of a More Conducive Regulatory Environment 58 Business and Social Gathering January 59 Business and Social Gathering February 60 OBNi Webinar: Doing Business in Indonesia: The Biggest Economic Power in ASEAN! A Country too Big to Ignore? MEMBER S ANNOUNCEMENTS 61 CPA Australia, Drs. Hanny, Wolfrey & Rekan, and Pernod Ricard 62 Howden Indonesia and Now Health International Our patron: Proudly sustained by: The Executive Office is kindly sponsored by: Airline partner of the year 2013/2016: This publication is not for sale. It is distributed free to members of the British Chamber of Commerce in Indonesia (BritCham). The articles selected for this publication represent a range of views on significant current issues in Indonesia. The views expressed in this journal cannot be assumed to represent the official views of BritCham as a whole nor of its Board of Management and Executive Office. Any errors of fact that occur in the articles are the responsibility of the contributing author or publisher. The articles are not intended as formal advice and should not be relied upon as such. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 3

4 FORTHCOMING EVENTS British Chamber of Commerce in Indonesia April 2016 Indonesia to the UK 28 April 2016 Business and Social Gathering British Chamber of Commerce in Singapore British Chamber of Commerce in Thailand British Malaysian Chamber of Commerce 14 April 2016 BritCham Rugby 7s Networking Evening 28 April 2016 BMCC Premier Luncheon: The New Frontier of Entrepreneurship 19 April 2016 How 4 Billion-Dollar-Brands used Digital to Transform their Marketing britcham.org.sg 22 April 2016 Joint Chambers Eastern Seaboard Networking Evening 23 April 2016 Bangkok St. George s Society 54 th Annual Ball members.bccthai.com Get the latest information of the upcoming events, business, trade, and investment related matters on our social media as follows: British Chamber of British Chamber of Commerce in Indonesia For further information or to make a reservation, please contact events@britcham.or.id or call Kishi at For sponsorship, please contact salesmkt@britcham.or.id EDITORIAL TEAM The Executive Office: chriswren@britcham.or.id DESIGN, LAYOUT & PRINTING One Asia Group UP.DATE is published by BritCham (British Chamber of Commerce in Indonesia). This publication may not, in whole or part, be lent, copied, photocopied, reproduced, translated or reduced to any electronic medium or machine readable form without the express written permission of the publisher. 4 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

5 CHAIRMAN S MESSAGE WE HAVE RECENTLY LAUNCHED THE BUSINESS CONFIDENCE INDEX 2015 (BCI) REPORT. THE REPORT INCLUDES AN IN-DEPTH ANALYSIS OF THE CONFIDENCE LEVELS OF BOTH BRITISH AND EUROPEAN BUSINESSES REGARDING INDONESIA AS A PLACE TO DO BUSINESS As you may recall the survey expanded its audience to include EKONID, INA, IFCCI and EuroCham. The BCI 2015 provides insightful findings into the thoughts of CEOs and Senior Managers operating and investing in Indonesia. A special thanks goes to Nielsen, our official partner in conducting the survey. For me, the key finding to take away from the report were that whilst the index has dropped quite significantly, ( partly due to global conditions and the prevailing macro-economic indicators) there were some encouraging statistics - concern over a lack of skilled labour, poor infrastructure, corruption, political and social stability have decreased by between 14 and 21 percent. We now see what I would suggest is a more normal set of top issues for European businesses operating in Indonesia, namely concerns around bureaucracy, regulatory environment and policies. Through the UK Embassy prosperity team we are working with the UK Better Regulation Delivery Office to scope out how we can assist with improving the environment in these areas. All this is to support Indonesia s ambition to significantly improve its current ease of doing business ranking. If you haven t seen the results, they can be accessed through our website. I am also pleased to announce that BritCham will be taking an active role in the forthcoming Presidential visit to the UK in April 2016 along with BKPM. The fact that we have been afforded this opportunity is testimony to the hard work and dedication within the chamber to create a more conducive business climate in Indonesia. The Chamber will use this to highlight our successes and primary role as the facilitator of the UK SMEs/Firms who have interest in doing trade and/or expanding their business to Indonesia. Given the facts of the huge potential of this country and interests of the UK SMEs/Firms, we are committed to assisting you through the Overseas Business Network Initiative. For more information, you can contact uksme@ britcham.or.id and visit our website. Finally, as we head towards the Easter holiday period we have focused on the Leisure and Recreation sector in this issue. This sector in particular presents IT IS POSITIVE NEWS FOR BRITISH BUSINESSES WHO HAVE CONCENTRATED ON THIS SECTOR AND PLAN TO EXPAND THEIR BUSINESS IN INDONESIA. a great deal of potential for British Businesses. The sustained support from the Government is evident by the revised Negative Investment List (DNI). The Tourism sector includes restaurants, bars, cafés and recreation centres which, according to the media reporting, are all now open for Foreign Direct Investment (FDI). It is positive news for British Businesses who have concentrated on this sector and plan to expand their business in Indonesia. We hope that the Government will allow us to continually assist in bringing the best advice and support to help grow these areas to their full potential. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN ADRIAN SHORT Chairman of British Chamber of Commerce in Indonesia World Trade Centre 5 / Wisma Metropolitan 1, 15 th Floor Jl. Jend. Sudirman Kav Jakarta Indonesia Phone Fax bisnis@britcham.or.id OFFICERS CHAIRMAN Adrian Short VICE CHAIRMAN Harun Reksodiputro HONORARY SECRETARY James Bryson HONORARY TREASURER Daniel Hankinson FOCUS GROUPS CHAIRMAN OF ENERGY & NATURAL RESOURCES SECTOR David Braithwaite MBE CHAIRMAN OF H.R. DEVELOPMENT & EDUCATION David Knowles CHAIRMAN OF INFRASTRUCTURE Richard Michael CHAIRMAN OF FOOD, FORESTRY, FISHERIES & AGRICULTURE Roger Pinder SECTOR COMMITTEES CHAIRMAN OF MEMBERSHIP SECTOR COMMITTEE Aziz Adam Sattar CHAIRMAN OF YOUNG PROFESSIONALS GROUP Andrew Sutedja CHAIRMAN OF PROFESSIONAL WOMEN COMMITTEE Sony Jethnani BOARD MEMBERS John Arnold OBE (Former Chairman), David Burke, Rob Daniel, John Galvin, Colin Harvey, Malcolm Llewellyn OBE (Former Chairman), Tonny Pranatadjaja, John Slack, Darwin Silalahi, Aziz Adam Sattar, Ainsley Mann, Anthony Cottan, Cynthia Wihardja, Jeremy Kemp EX OFFICIO Lizzy Hawkins Director of UKTI, Sally Goggin Director of British Council, Heru Dewanto IABA, Maxi Gunawan KADIN (CORRESPONDENCE FOR BOARD MEMBERS may be addressed to: info@ britcham.or.id) EXECUTIVE OFFICE EXECUTIVE DIRECTOR Chris Wren (chriswren@britcham. or.id) GENERAL AFFAIRS COORDINATOR Safiera Nadya (administration@britcham.or.id) COMMUNICATIONS OFFICER Anka (anka@ britcham.or.id) MARKETING & SALES Maria Harliyono (salesmkt@britcham.or.id) EVENTS COORDINATOR Kheista Leoni (kishi@britcham. or.id) FINANCE OFFICER Daliana Tiono (finance@ britcham.or.id) FINANCE & ACCOUNTING STAFF Orlin Cicilia (fin_act@britcham.or.id) PUBLICATIONS communications@britcham.or.id OVERSEAS BUSINESS NETWORK DEVELOPMENT PROJECT DIRECTOR Karen Butterfield (uksme@ britcham.or.id) 5

6 EXECUTIVE UPDATE I WOULD LIKE TO FIRSTLY WELCOME EVERYONE TO THIS FIRST EDITION OF UP.DATE, ANKA AND HER TEAM HAVE BEEN WORKING ON THE DIVERSITY OF CONTENT WITH BUSINESS FEATURES AND INTERVIEWS. PLEASE SHARE YOUR THOUGHTS WITH US. THE NEW BRITCHAM HANDBOOK, 2016/17 We are replacing the Guide To British Business in Indonesia (GBBI) with a new HANDBOOK that will feature GBBI. The Handbook will have more messages from key stakeholders, represent documentation of our vast range and volume of activities, PLUS an expanded directory that will tell the 1200 plus British businesses who are looking at Indonesia, which businesses are here and can offer services to support them. So, two things to ask you to note: Advertising in the Handbook - many, but not all, of the higher profile slots have been booked. Please respond to Olivia and Maria for more information. We have been more creative with our settlement terms allowing our members to straddle payments over two financial years. We hope this will help more of our members to profile more prominently. THE BRITCHAM WEBSITE All of the increased activity via webinars, outside the Jakarta and with partners in the UK has led to average website hits per month topping We expect that number to rise. For members to benefit and to promote their credentials, we have recently created a new value-added feature for use by members only and it is FREE. Submit articles of business interest and relevance and they can CHRIS WREN Executive Director of British Chamber of Commerce in Indonesia be accessed by all visitors giving you the opportunity to profile your credentials. We have also added more banner advertising spots on the most visited pages. You can take these for just one month at a time. Or save money, contract for longer but with flexibility to change your messages. Again, I invite you to to talk to Olivia to discuss the best options and special member discounts. MEMBERSHIP SATISFACTION SURVEY (MSS) You will recently have had your personal invitation to complete our BritCham MSS. It will only take minutes. But your thoughts on what we do, how well we do and what other things you would like us to do for you are all important. Our thanks in advance. THANKS AND BEST WISHES Some of our team are moving on. Karen Butterfield has progressed the Overseas Business Network project extremely well and now moves on with her husband to Tanzania. Afit is off to represent Indonesia at their Embassy in Namibia. Lulu has used her internship as a platform for her first career rung. And Nadya, feels the time is now for her Masters. My sincere thanks to each of you for your personal contributions to a great team. Very best of luck. 6 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

7 OVERSEAS BUSINESS NETWORK INITIATIVE BRITISH BUSINESS CENTRE: Updates and Developments for Members ONE OF BRITCHAM S FOCUS HAS BEEN ON INCREASING ITS NETWORKS WITH KEY STAKEHOLDERS, PRIVATE AND GOVERNMENTAL INSTITUTIONS TO SUPPORT UK INVESTMENT IN INDONESIA. BUSINESS REPORTS & SERVICE DELIVERIES OBNi have assisted almost 1000 UK companies for service delivery since it began in We have provided our service to UK companies who are interested in expanding their business in Indonesia as a potential new market. This service is providing a mutually beneficial agreement between UK SMEs and local BritCham members. We have produced almost 40 customized Business Reports for UK SMEs which will see further growth with the increasing of business interest to the Indonesian market. These reports have led some of the companies to visit Indonesia to further discuss their business plans with local companies. EVENTS & TRADE MISSIONS The list of OBNi events include the recent MoU signing with Kadin Surabaya (Chamber of Commerce) and the UK visit seminar in Surabaya, East Java as an initiation for a program to visit the UK in Mid-April. The purpose of the seminar is for East Java businesses that are looking to the UK for investment to understand more WE HAVE PRODUCED ALMOST 40 CUSTOMIZED BUSINESS REPORTS FOR UK SMES WHICH WILL SEE FURTHER GROWTH WITH THE INCREASING OF BUSINESS INTEREST TO THE INDONESIAN MARKET. about what opportunities will interest British counterparts. WEBINARS Since it started in August 2015, OBNi s monthly webinar has gained almost 500 registered companies joining the online presentation from various sectors. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN EXHIBITION OBNi has been successfully participating as an exhibitor in Manufacturing Expo in Jakarta and partnering with UK companies to join under the BritCham booth. TEAM UPDATE In January 2016, the OBNi team has welcomed new members. Patricia Grace Veronica, as a Senior Business Development Coordinator, and Jusuf Agung, as a Business Development Coordinator who is based in Surabaya. If you would like to know more about OBNi and the services we provide, and/or to participate in any of our events, please feel free to contact us on IN PARTNERSHIP WITH: 7

8 BANKING & FINANCE Trade Winds: SHAPING THE FUTURE OF INTERNATIONAL BUSINESS 8 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

9 THE WORLD IS ENTERING A THIRD PHASE OF GLOBALISATION THAT WILL BOOST TRADE, CHANGE THE WAY COMPANIES WORK AND IMPROVE THE QUALITY OF LIFE OF MILLIONS OF PEOPLE, ACCORDING TO A NEW HSBC REPORT. Trade Winds: shaping the future of international business examines the key trade and business trends of the past 150 years and looks ahead to It forecasts that total goods exports will reach USD68.5 trillion by 2050 nearly four times the value of global exports in 2015 and more than 150 times that traded in Developments in technology, public policy, operations and logistics will bring many benefits, according to the report: This third wave of globalisation will take millions of people out of poverty, raise income levels and improve quality of life. Emerging economies will increasingly catch up with mature economies as economic prosperity is spread more evenly. For businesses there will be new opportunities these include new ways of working, new business models and new skills requirements. Physical borders will become less important and how we define trade will change. Asia is expected to be a big beneficiary of these changes, with the region s share of global exports predicted to reach 46 per cent in 2050, compared with 33 per cent in That shift is likely to see China extend its lead as the world s top exporter, while India exerts increased power. Western Europe and North America are expected to see their shares of global exports decline but in absolute terms they will be larger than today. Produced by Oxford Economics on behalf of HSBC, the research finds that the third stage of globalisation will be driven by continued industrialisation and a sharp drop in transport and communication costs. It predicts new markets will open up thanks to changes in trade policy, and that the cost of trade will fall. Advances in technology will continue to trigger rapid change, driving the development of new products and business models. Companies will also establish better ways to manage their businesses and distribute goods more efficiently. Stuart Tait, Global Head of Trade and Receivables Finance, HSBC, says: There will be a huge change in current supply chains. Logistics will become even more efficient as each element becomes trackable. Currently there is waste in the production cycle. The report highlights several other developments that will influence trade over the next four decades: There will be more multilateral efforts to counter climate change, which will lead to advances in fuel efficiency, renewable energy and energy storage. The development of 3D printing will gradually revolutionise the way DEVELOPMENTS IN TECHNOLOGY, PUBLIC POLICY, OPERATIONS AND LOGISTICS WILL BRING MANY BENEFITS, ACCORDING TO THE REPORT: THIS THIRD WAVE OF GLOBALISATION WILL TAKE MILLIONS OF PEOPLE OUT OF POVERTY, RAISE INCOME LEVELS AND IMPROVE QUALITY OF LIFE. EMERGING ECONOMIES WILL INCREASINGLY CATCH UP WITH MATURE ECONOMIES AS ECONOMIC PROSPERITY IS SPREAD MORE EVENLY. customers access goods, enabling customised build to order production. Trade flows will increasingly relate to the movement of services rather than products, in the same way that films, books and music are increasingly sent digitally. The rise of intelligent technology will mean devices will increasingly be able to interact with each other. TAKEN FROM: HSBC.COM/GLOBAL/EN/ARTICLES/TRADE- WINDS-SHAPING-FUTURE-INTERNATIONAL- BUSINESS FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 9

10 BANKING & FINANCE PERSONAL FINANCE: Are You a Winner or a Loser in the Oil Game? ECONOMISTS ARE ALWAYS EXPERTS WHEN IT COMES TO EXPLAINING WHY EVENTS HAVE OCCURRED IN THE FINANCIAL MARKETS. BUT FEW, IF ANY, ACCURATELY PREDICT WHAT WILL HAPPEN IN THE NEAR FUTURE. No-one ever dreamed eighteen months ago that the price of oil would fall by some 70% to levels not seen since This inability to predict events is why we should be prepared for a wide range of outcomes when making financial plans. The first principle to follow being if you are likely to need cash in the short term stay in cash. Investing in assets such as stocks, commodities and property is strictly for the medium (minimum five years) and preferably the long term (ten years plus). Investing in oil is certainly a long term matter. The major oil companies have to plan years ahead when they make investments. At the same time they have to watch their quarterly results and dividends to keep their shareholders happy. In normal times they have been very successful in maintaining this balance but the shock fall in oil price has hit their bottom lines hard with some of the majors reporting a quarterly loss for the first time in decades. SO WHO ARE THE LOSERS IN THE OIL GAME? The big oil companies whose profits and cash flows have been slashed. The smaller oil companies and the service companies that serve the oil industry, some of whom have already gone out of business with others facing insolvency if the price of oil remains for long at current levels. Thousands of employees worldwide whose livelihoods depend on the oil industry directly or indirectly and have lost their jobs. Oil exporting countries including those in the Middle East who now have to drastically cut their national budgets and countries like Russia whose economies and currencies have been severely hit due to their high dependence on oil. Investors in oil and energy shares and funds which have fallen by up to 50% in value since the price of oil started falling. All stock market investors around the globe as the shock in the energy industry has impacted a wide range of non-related stocks and brought all indexes down, particularly at the start of the year. Pension funds and institutional funds. No escape for them either. Many of them count on dividends for their cash flow but these are also under threat. According to a Sky report, Shell accounts for 1 in every 6 received by UK pension funds. The environment. Cheap oil is going to slow down moves to develop alternative energy solutions. Gas guzzlers will come back into favour in the US. Sales of fuel-efficient and electric cars have slumped. Alternative energy industries. In the UK a major airline has shelved a 340 million project to produce aviation fuel from household waste. 10 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

11 BUT THERE ARE WINNERS TOO! WHO ARE THEY? Countries that rely on imported oil. Motorists. Prices of petroleum products are falling. Airlines. We may even see those fuel surcharges disappearing. Industry as a whole. Cheaper energy means lower costs and more efficiency. Companies and in turn their share prices which will benefit from lower costs. Some airlines are now reporting significant profits thanks to lower fuel costs. Small businesses with reduced energy bills. The tourism industry. Lower costs should mean cheaper air fares and more tourists, coupled with lower fuel bills for hotels. Investors in non-oil related industries, as reduced costs improve profits, dividends and share prices. Investors with regular savings plans as they are buying in right now at very low unit prices and are therefore buying more units than they were a year ago for the same monthly contribution. The benefit will come in future years when prices rise again (as they always do after a crash). IS INDONESIA A WINNER OR A LOSER? In fact it is both. Now that half of the oil the country consumes is imported the impact on the country s budget and also foreign trade balance is significant. The crippling fuel subsidy before President Jokowi took office has disappeared and fuel prices may be reduced further at the next review in April. On the downside however the country, as elsewhere, is seeing a major shrinkage of the oil industry and related investment. Several thousand jobs have gone or will go before a balance is restored. Large numbers of expatriates in the industry have been forced to leave. This in turn adds to job losses among the people who provide services to them such as drivers, domestic staff and so on. Cheaper petrol has only made Jakarta s traffic jams worse. This would be an ideal time to tax petrol as in Europe. It would discourage non-essential motoring and produce a useful income to the country. But it s not going to happen. Perhaps more serious is the long-term impact of a smaller oil industry and lower production. Not such a problem while cheap imported oil is available but the crunch will come in the future when the oil price rises again (as it will) at which point the reduced local production and the cost of importing most of the oil to satisfy a growing economy could become a serious issue. It will mean either further subsidies again or the risk of labour unrest. Either way there will be further pressures on the economy. WHERE WILL THE PRICE OF OIL GO FROM HERE? Predictions vary wildly. Movements can alternate up or down on almost a daily basis. Several major banks have suggested the price of oil could fall to as low as 10 and 20 a barrel before recovering. On the other hand, there is a wide consensus among analysts that a forced reduction in production levels could cause the price to rise to between 45 and $50 a barrel by year end. There are those however who believe that the addition of Iranian oil into the equation will hold prices down. The fact is, noone really knows for sure and any one of many factors could cause a major surge in price, such as an agreement between several major producing countries to reduce production or a serious spat between arch rivals Iran and Saudi Arabia. ARE THERE INVESTMENT OPPORTUNITIES FOR SMALL INVESTORS? Human nature is such that people flock to invest when prices are high but are reluctant to invest while prices are low like today. This applies to any asset. The usual rationale for not investing is that prices may fall even further. Indeed they may, but in due course they will rise again but people will not be convinced at the first signs and when they finally take the plunge prices will have already made half their gains. Sales of any given asset are almost always at their highest when prices are close to their peak. This is why people rarely make money when investing! Colin Bloodworth, has spent over 25 years in Indonesia, part of which was in the oil industry. If you have any questions on this article or related topics you can contact him at or colin.bloodworth@ ppi-advisory.com The key is to look long term. There is a good chance that the oil price will reach $40 to $50 a barrel by year end, compared to the current price of around $30 a barrel. Of course the price could also fall to $20 a barrel. But at that price, and even at today s price, more production facilities would be shut down and this in turn will diminish supply to a point when it is in balance with demand. Then we could see a significant rise. But as it could take longer than is currently predicted patience is essential. Just looking at the history of energy funds I would be very surprised if today s energy fund prices have not trebled in five years. The International Energy Agency in a report dated 22 February said that due to a rapid fall in output oil prices will start recovering in 2017 and there could be a spike in oil prices by This really makes investing in oil and energy today a nonbrainer if you can hold on through nearterm volatility. Cautious investors can hedge against a delayed rise in prices by investing each month into an energy fund via a long term savings or pension plan. This will avoid any sudden short term shocks and will reap benefits in later years. As many expatriates have long term savings plans with life companies a simple switch costs nothing. Similarly, a portfolio switch would cost little compared with the potential gain over five years. And while you are at it, don t overlook gold. But that s another story! FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 11

12 BANKING & FINANCE Indonesia SUSTAINING GROWTH MOMENTUM INDONESIA S ECONOMY GROWTH SLOWED TO 4.7% Y/Y IN 2015 FROM 5.1% Y/Y IN THE PREVIOUS YEAR DUE TO SLUGGISH GLOBAL DEMAND AND EASING PRIVATE INVESTMENT, ESPECIALLY IN THE MINING SECTOR. GOVERNMENT SPENDING, EXPECTED TO ACT AS A CUSHION, WAS UNABLE TO REVIVE THE ECONOMY BECAUSE OF DELAYS IN BUDGET DISBURSEMENT. CHANGES IN THE MINISTERIAL STRUCTURE AND THE BUDGET REVISION AT THE BEGINNING OF THE YEAR HAVE BEEN CITED AS THE MAIN CULPRITS. However, the recent development suggests that we might have seen the bottom of the economy. Indonesia economy expanded by 5.04% y/y Q (vs. 4.73% y/y) beating market expectation, as government infrastructure spending started to stoke up investment. The momentum appears to linger in January. The consumer confidence reading suggested improvement in optimism up to in Jan16 up from in Dec15. Investment activity has also been recovering, indicated by healthy growth in cement demand. Cement sales grew by 5.7% y/y in Jan16 led not only driven by bulk cement for infrastructure project but also from the bag cement sales that usually used for property sector. Both government and private investment are likely to improve further, in our view. The government has allocated IDR 313tn for infrastructure spending in 2016, up 8% y/y. The pre-auction preparation of some infrastructure projects under the Public Works and Housing Ministry and the Energy and Natural Resources Ministry have been prepared since October 2015 to accelerate spending absorption. On the private side, the government has been launching a series of deregulation packages, aimed at 12 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

13 cutting red tape, synchronising central and regional regulation, improving the investment climate, and providing incentives to attract investment we expect all these to have an impact in the medium term. Furthermore, in the latest policy package issue in February 11 th, the government revised the investment negative list and open up more industries for foreign investment. The aim is not only to attract foreign investment, but also to promote healthier competition in some of concentrated industries. We believe IDR stability will also play important role on private investment recovery. Low oil prices are lowering inflationary pressure, which creates room for monetary policy loosening by the central bank (Standard Chartered projects three rate cuts of 25bps each in 2016, from the current rate of 7.5%). As global oil prices continued to decline, the government cut regular fuel and diesel prices by 5% and 16% to IDR 6,950/litre (l) and IDR 5,650/l, respectively, effective 5 January The price cut is larger than initially intended, as the government postponed its plan to impose fuel charges for the energy sustainability fund. The government also cut electricity tariffs for mediumto-high household subscribers by 7% and the 12kg LPG price by 4%. These factors should help support consumer purchasing power. The government s ability to push infrastructure spending will depend on government capacity to collect tax, given the sluggish commodity prices. To boost tax revenue, the government plans to expand its tax base and increase tax compliance, by issuing a tax amnesty and improving tax administration by developing tax database, electronic reporting, and strengthen corporation with other government institution. In summary, we expect the economy to rebound in 2016 grew by 5.2% y/y faster than 4.8% y/y growth in 2015, on stronger investment growth. We believe faster government spending and implementation of policy deregulation that will help to provide business friendly Aldian Taloputra is Economist at Standard Chartered Bank, Indonesia. Before joining Standard Chartered Bank in December 2015, Aldian was Chief Economist at Mandiri Sekuritas for eight years, since he joined in February He provides economic and market analysis and often invited as speakers in several forums. environment will be the key to recovery in In addition the consolidation of political power will create more efficient policy making process that will be important to guide the economy sailing through global uncertainty. Treasure Your Health Prevention. Detection. Enhancement. Health screening is essential for the early detection of diseases and conditions that cause disability and death. The lifestyle and stress of modern living can have an adverse impact on our health by predisposing us to silent killers such as heart disease, diabetes, hypertension and cancers. Therefore, health screening is vital as it detects diseases, which do not produce early warning signs. HealthScreeners is a dedicated health screening centre that offers holistic and personalised approach to your well-being. With over 30 years of experience, our professional team offers comprehensive, one-stop health screening services. You can enjoy a healthy breakfast buffet after your tests, attend to your business needs or even surf the web with free wifi within the hospital. We aim to make your visit with us worthwhile and comfortable. For more information and appointment booking, please contact: Raffles Medika Indonesia Menara Anugrah, Lt. 1, Kantor Taman E3.3, Jl. DR Ide Anak Agung Gde Agung Lot , Mega Kuningan, Jakarta Tel: (62-21) Fax: (62-21) enquiries_indonesia@raffleshospital.com Your Trusted Partner for Health Hospital Singapore 585 North Bridge Road Raffles Hospital Singapore Tel: enquiries@raffleshospital.com youtube.com/raffleshospital

14 BUSINESS & ECONOMICS ADRIAN SHORT (Chairman of BritCham), HMA MOAZZAM MALIK (British Ambassador to Indonesia), ULF BACKLUND (Chairman of EuroCham), CHRIS WREN (Executive Director of BritCham) BCI 2015: Global Factors Drive Index Down, but Key Indicators are Positive ENCOURAGING NEWS FOR NEW JOBS AND INTERNATIONAL INVESTMENT, CONCERNS REMAIN FEBRUARY 3 RD, 2016 CHAIRMAN OF BRITCHAM, ADRIAN SHORT UNVEILED THE RESULTS OF THE 4 TH JOINT EUROPEAN BUSINESS CONFIDENCE INDEX 2015 (BCI) TO BKPM REPRESENTATIVE, THE BRITISH & SWISS AMBASSADORS, BOARDS OF THE EUROPEAN CHAMBERS, AND AN AUDIENCE OF EIGHTY EXECUTIVES MOSTLY REPRESENTING EUROPEAN INVESTORS DOMICILED IN INDONESIA. In his opening, British Ambassador Moazzam Malik referred to a refreshing new era of productive collaboration between the European Chambers and their Indonesian counterparts. He also advocated that speeding up EU-CEPA talks would pave the way for exponential growth in trade between Europe and Indonesia. Adrian Short began by outlining why we should not be surprised that the Index has fallen from the survey period of last year when everyone in Indonesia was highly aspirational following President Jokowi s election. Last year was exceptionally positive for quite obvious reasons. This year we report that the index has fallen HMA MOAZZAM MALIK (British Ambassador to Indonesia), delivering a speech during BCI quite significantly. But, as we shall see, this fall can be attributed to the global situation and the prevailing macro-economic indicators. The world is almost at a standstill; China is experiencing a huge downturn; natural resource prices have crashed, Indonesian GDP growth continues to slip; there is pressure on domestic inflation and consumer confidence is challenged of course confidence is down from a high point in 2014! But this is a survey that has many encouraging outputs. International business does want to be here under-scored by these statistics: 66% of businesses expect to see revenues increase in 2016; 51 % of businesses expect to see profits increase; 46% of firms hope to make major investments in Indonesia in the next two years and that has to be very good for the creation of new jobs. In fact, only 16% of businesses have a negative outlook for The BCI findings also threw out some specific and encouraging statistics concern over a lack of skilled labour, poor infrastructure, corruption, political and social stability have eased by between 14 and 21 percentage points. 14 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

15 ASHRAF AL-OUF (Bayer Indonesia), JAN RONNFELD (Managing Director of EKONID) JOHN ARNOLD (BritCham Board Member), LUIGI CARLO GASTEL (Chairman of IBAI) ULF BACKLUND (Chairman of EuroCham) DANIEL NICHOLLS (Head of the EU Desk at BKPM) HE DR. YVONNE BAUMANN (Switzerland Ambassador to Indonesia) CHRIS WREN (Executive Director of BritCham) Business certainly welcomes the much-needed physical improvements to infrastructure and the availability of skilled labour added Short. However, the top three issues from last year remain the issues from this survey bureaucracy, policy and regulation. There is a sense that the intention of government is sound however a more coordinated focus on implementation remains pivotal to driving up the ease of doing business, vital to heading off competition from SEA neighbours. Ulf Backlund, EuroCham Chairman summed up the key survey findings by saying that there must be lots right with the Indonesian business environment if one out of two European businesses are positive in their outlook and plan to invest further. But, that means there are also one in two businesses that need to be convinced by evidence that the business environment is maturing sufficiently to invest further. As Chambers, we welcome all opportunities to work with agencies and stakeholders to further improve the attractiveness of Indonesia, added Backlund. The Chambers are pleased to note that 27% of respondents plan to invest further outside Greater Jakarta-the top 2 quoted destinations being Sumatra and Sulawesi. BritCham Executive Director Chris Wren said Overall, these improvements are good news and represent a very welcomed story to tell as European nations promote investment opportunities from across the whole of Indonesia. The audiences FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 15

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17 BUSINESS & ECONOMICS UK VISIT SEMINAR 2016 SURABAYA Understanding the Opportunities for East Java Business with British Business THURSDAY, 14 JANUARY 2016 HOTEL MAJAPAHIT, SURABAYA JANUARY 14 TH, 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA (BRITCHAM) IN COLLABORATION WITH KADIN SURABAYA, TODAY TOOK THE FIRST STEPS TO A TRADE VISIT OF SURABAYA AND EAST JAVA BUSINESSES TO THE UK IN THE FORTHCOMING MONTHS. THE UK VISIT SEMINAR 2016 IN SURABAYA, WAS ATTENDED BY 50+ BUSINESSES THAT REPRESENT KEY SECTORS INCLUDING INFRASTRUCTURE (FOCUS ON MARINE & PORTS), AGRI-TECH, RENEWABLE & CLEAN ENERGIES, HOSPITALITY AND MANUFACTURING SUPPLY CHAIN. THE SEMINAR INCLUDED A MACRO-ECONOMIC OVERVIEW FROM BANK INDONESIA, AS WELL AS THE LATEST FOREIGN INVESTMENT GUIDELINES FROM BKPM SURABAYA. A ROUND-UP OF THE SEMINAR WAS CONDUCTED BY BRITISH AMBASSADOR HMA MOAZZAM MALIK. ADRIAN SHORT (Chairman of BritCham), CHRIS WREN (Executive Director of BritCham), DR. IR. JAMHADI (Chairman of KADIN Surabaya), JAY SINGGIH (BritCham Board Member, BKPM Surabaya representative) During the seminar, Pak Jamhadi, Chair of KADIN Surabaya and his team presented some of the opportunities available to foreign investment within the focus sectors. Executive Director of BritCham, Chris Wren has pledged to mobilise the support of the 53 regional Chambers in the UK to find matches for East Java business opportunities. We are here in Surabaya because we accept that Surabaya is the natural hub for East Indonesia and possibly a location for access to parts of ASEAN as the AEC develops. We are keen for British investors to participate in the opportunities in East Java. We are greatly encouraging local businesses to engage with British SMEs as agents and distributors and to make best use of pioneering British technologies. The next step will be for a mission of around 20 businesses to invest in the UK visit just a few days before President Jokowi s trip to London in mid-april. Chris Wren added that the timing is perfect as British media will already have the focus on Indonesia. Indonesia will be very much on the radar of British business at this time. BritCham Chairman, Adrian Short, confirmed that BritCham had just put a full time business development resource into Surabaya as a part of the commitment entered into via a KADIN FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 17

18 BUSINESS & ECONOMICS Surabaya/BritCham MOU entered into back in October. That is part one. Part two is to match-make businesses in the UK. Part three is to bring a reciprocal UK business trade mission back to Surabaya soon after in May. The audiences To join the UK visit, businesses need to demonstrate a clear business opportunity and to have identified what type of partner they are seeking. In the UK, BritCham and the initiative will be fully supported by Bank Indonesia and BKPM in London. In summing up, HMA Moazzam Malik reminded everyone that British business has been actively involved in more than 18 regencies in East Java since 1970 with significant investment and real job creation. The time is perfect to build on this mutually rewarding relationship. 15 members of the media took part in the event and showed a great deal of interest. The event was a huge success with Indonesian businesses from all sectors attending and asking questions. The process of matching particular businesses to key areas in the UK will be crucial. For example business sectors in the energy industry are likely to be partnered with businesses in Scotland and those in the manufacturing industry can be placed in the midlands. This is a very exciting time for the Indonesia and UK partnership with great opportunities available. WE ARE HERE IN SURABAYA BECAUSE WE ACCEPT THAT SURABAYA IS THE NATURAL HUB FOR EAST INDONESIA AND POSSIBLY A LOCATION FOR ACCESS TO PARTS OF ASEAN AS THE AEC DEVELOPS. WE ARE KEEN FOR BRITISH INVESTORS TO PARTICIPATE IN THE OPPORTUNITIES IN EAST JAVA. WE ARE GREATLY ENCOURAGING LOCAL BUSINESSES TO ENGAGE WITH BRITISH SMES AS AGENTS AND DISTRIBUTORS AND TO MAKE BEST USE OF PIONEERING BRITISH TECHNOLOGIES. The Panel CHRIS WREN (Executive Director of BritCham), having a talk with the audiences The Audiences CHRIS WREN (Executive Director of BritCham), HMA MOAZZAM MALIK (British Ambassador to Indonesia), DR. IR. JAMHADI (Chairman of KADIN Surabaya), ADRIAN SHORT (Chairman of BritCham) CHRIS WREN (Executive Director of BritCham), DR. IR. JAMHADI (Chairman of KADIN Surabaya), Ban Indonesia representative, JAY SINGGIH (BritCham Board Member, BKPM Surabaya representative) 18 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

19 BUSINESS & ECONOMICS Vice-President Launched Three-Hours Investment Licensing Service JAKARTA, JANUARY 11 TH 2016 VICE-PRESIDENT JUSUF KALLA OFFICIALLY LAUNCHED THE THREE-HOURS INVESTMENT LICENSING SERVICE AT ONE STOP SERVICES IN INDONESIA INVESTMENT COORDINATING BOARD (BKPM) OFFICE. The event was attended by more than 400 prominent stakeholders which include the Coordinating Economic Affairs Minister, along with Minister of Foreign Affairs, Minister of Industry, Minister of Trade, Minister of Manpower, Minister of Agrarian and Spatial Affairs/Chief of National Land Agency, Chief of National Police, Ambassadors, foreign business associations, captain of industries, and potential investors. Vice-President Jusuf Kalla highlighted the importance of the said service to support the achievement of 7% economic growth target. Before I come to this event, I asked my people to check the three-hours licensing services, and it is really a tremendous achievement for us in order to assist investors in Indonesia, he said on his speech on the opening ceremony in Nusantara Room, BKPM office, Monday (11/1). Kalla asserted that the competition with other countries to attract foreign direct investment is becoming more competitive. During the event, Kalla accompanied by Chairman BKPM and fellow ministers are visiting the investment lounge that is particularly designated for three-hours licensing services and having made small conversations with the representatives of 22 ministries in BKPM s one stop services. Chairman of BKPM, Franky Sibarani stated at the launching of Three-Hours Investment Licensing Service that the simplifying services is part of Revolusi Mental (mental revolution) which is President Joko Widodo s flagship program. Vice-President Jusuf Kalla is always supportive on BKPM program. When we launched the one stop services back on January 26 th last year, it could not have happened without his support and directive, said Franky. Franky mentioned that BKPM has undertaken three steps improvements to bolster the investment acceleration. First is to simplify the investment licenses, and to facilitate investment projects that are facing some obstructions (debottlenecking), and lastly to boost investment. According to Franky, Three-Hours Investment Licensing Service retains a strategic role in accelerating investment flow to Indonesia, foreign and domestically. With this service, we expect that in the terms of license and regulation simplification, Indonesia could improve its competitiveness, he explained. Furthermore, BKPM has allocated trained priority investment officers to provide assistance for investors in the three-hours investment licensing service. Investors who come directly with their investment plan equals to over IDR 100 billion (USD 8 million) and/or employs at least manpower, are expected to bring their ID (passport or the deed of foreign company ownership) and the flowchart of their production activity. The service process flow would be like this, firstly, the eligible investors have to come to BKPM in person and take the queuing number. Then they will be greeted by Director of Investment Services. Investors are welcome to wait in the investment lounge for threehours investment licensing service. The priority investment officer will deal with all the documents needed and hand them out to the investors when all of the processes are finished, he mentioned. In addition, Franky asserted that the launching which took place today is an improvement of the previous three-hours licensing service. The former service which was launched on October 26 th 2015 comprised three license products and one land-booking certificate. Up until January 11 th 2016, there are 7 companies that have utilized the three-hours service with total investment value worth IDR trillion. Those companies come from industrial sector, real estate, power plant, port, and livestock production, he described. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 19

20 Rolls-Royce, powering land, air and sea. Rolls-Royce provides advanced power solutions to over 150 countries with manufacturing and service facilities in over 50 countries. We have a longstanding relationship with Indonesia of over 50 years. Our operations in the country cover our full product portfolio supporting customers in land, air and sea applications. We are committed to investing in, and supporting Indonesia with educational, humanitarian and environmental programmes. Trusted to deliver excellence

21 BUSINESS & ECONOMICS Ownership of Homes or Residences by Foreigners in Indonesia INDONESIA ISSUED GOVERNMENT REGULATION NO. 103 OF 2015 REGARDING THE OWNERSHIP OF HOMES OR RESIDENCES BY FOREIGNERS RESIDING IN INDONESIA ( GR 103/2015 ) IN LATE DECEMBER GR 103/2015 ENTERED INTO FORCE ON DECEMBER 28, THE GOVERNMENT MADE THE NEW RULING PUBLIC EARLIER THIS WEEK. CHANGES GR 103/2015 does not introduce any radical changes, as foreigners residing in Indonesia could already own homes or apartment units in the country under Government Regulation No. 41 of 1996, which was revoked by GR 103/2015. There had been some speculation that the government, as part of the economic stimulus packages it has been introducing since last year, would make major changes to the rules on home ownership by foreigners, in order to stimulate the property market. Speculation included the possibility that foreigners domiciled abroad may be permitted to own homes/apartments units in Indonesia. However, that is not the case under GR 103/2015, which requires foreigners to have a legal stay permit to own a home/residence in Indonesia. Significantly, foreigners must sell their homes to a qualifying person within a year after relinquishing their legal stay permit. This is an important consideration for any foreigner looking to acquire a home in Indonesia as a long-term investment. IMPORTANT POINTS IN THE NEW REGULATION GR 103/2015 addresses the previously ambiguous provision concerning qualification of foreigners who are eligible to own a home in Indonesia. GR 103/2015 stipulates that foreigners who hold a legal stay permit diplomatic stay permit, official stay permit, residence stay permit, limited stay permit or permanent stay permit who give benefit, conduct business, work or invest in Indonesia may own homes/apartment units in Indonesia. GR 103/2015 also introduces the following provisions that were not in the previous regulation: Homes owned by a foreigner in Indonesia may be passed by inheritance. If the heir is a foreigner, the heir must also have a legal stay permit in accordance with the prevailing laws and regulations. Indonesian citizens marrying foreigners do not lose the right to own title over land insofar as the title to the land is not part of the marital property. This must be evidenced by a notarized prenuptial agreement. GR 103/2015 allows foreign ownership of a landed house under Michael S. Carl (michaelcarl@ssek. com) has been with SSEK Legal Consultants since He is recognized by independent legal publications as a leading practitioner in the fields of banking and finance, capital markets, corporate/m&a, mining, projects and energy, real estate, and restructuring and insolvency. Michael was voted an External Counsel of the Year for Indonesia by the readers of Asian-MENA Counsel, who cited his wide-ranging knowledge and experience with Indonesian law and responsiveness to client needs. Michael received his J.D. in 1994 from the University of California at Berkeley (Boalt Hall) School of Law, and earned an Indonesian law degree in 2012 from Atma Jaya University. He is fluent in Indonesian. right-of-use (hak pakai) not only on state land, as before, but also on freehold (hak milik) land Miftahul Khairi owned by an (miftahulkhairi@ssek. Indonesian. com) is an associate at Foreigners may buy and own a landed SSEK Legal Consultants. He received his Bachelor of Law from the University of Indonesia in house under right of use (hak pakai) for an initial period of 30 years. This may be extended for an additional 20 years and further renewed for 30 years. If the right of use (hak pakai) is on freehold (hak milik) land, the consent of the owner of the freehold land will be required to extend. GR 103/2015 provides that the grant, release or transfer of ownership of a home or residence by a foreigner will be further stipulated in regulations to be issued by the National Land Agency. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 21

22 BUSINESS & ECONOMICS Strong Forces behind the Growth of F&B Sector THE FOOD CONSUMPTION PATTERNS AROUND THE GLOBE HAVE BEEN CONSTANTLY EVOLVING, MAINLY ATTRIBUTABLE TO THE FACTORS OF POPULATION GROWTH, DEMOGRAPHIC TRANSITION AND RAPID URBANISATION, AND THAT PHENOMENON IS NOTED PARTICULARLY IN EMERGING MARKETS. INDONESIA, HOME TO THE WORLD S FOURTH LARGEST POPULATION, HAS BEEN EXPERIENCING BUOYANT ECONOMIC GROWTH, TRIGGERING A SHIFT IN FOOD AND BEVERAGE (F&B) CONSUMPTION AND A FLOURISHING F&B SECTOR WHICH IS EXPECTED TO KEEP GROWING IN THE YEARS TO COME. HIGHLY COMPETITIVE SECTOR WITH IMPRESSIVE GROWTH Indonesia has boasted an economic growth of approximately 5% and remains a very large market for F&B products. Fuelled by rising disposable incomes, increased spending on food by the middle class, and change in urban lifestyles, the F&B sector has seen a constant impressive growth over the last decade. The sector s output has contributed as much as 7% of the GDP, and over 31% of the total industrial manufacturing output, representing the biggest contribution towards GPD for non-oil sector. Foreseeing the promising business prospects, local and foreign companies are already competing for the F&B market share. The sector as a whole is estimated to encompass more than 6,000 local and foreign companies, out of which approximately 90% are classified as large or medium sized. Key players are, namely Indofood and Garuda Food as well as Danone and Nestlé. On the other hand, the food retail sector is characterised by convenience stores, hypermarkets and supermarkets. French-based firm Carrefour dominates hypermarket retailing, and the Belgian-based Delhaize owns a large stake in the biggest supermarket operator. STRONG PURCHASING POWER AND CONSUMER CONFIDENCE The Indonesian consumer group is projected to be persistently growing in number, primarily driven by the growth of young population (approximately 40% of Indonesian citizens are below 24 years of age) and speed of urbanisation coupled with vast improvement in purchasing power and consumer confidence. According to Economist Intelligence Unit, by 2030, Indonesia is forecasted to register 35 million households earning disposable income exceeding US$5,000 p.a. at constant prices, representing the 3 rd largest growth market in the world in this regard, and its capital Jakarta would be the biggest city with young and consumptive population in the world. The process of urbanisation in Indonesia is anticipated to continue, with the United Nations forecasting that 2/3 of Indonesian consumers will be urbanised by Meanwhile, the level of consumer confidence continues to surge, paralleling the growth of the country s economy and the increase in the minimum wage 22 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

23 level. Based on the perception of local career prospects, personal finances and immediate spending intentions, the Nielsen s Global Consumer Confidence Index Q Report revealed a high level of consumer confidence in Indonesia, posting the third highest quarterly global index score, following India and the Philippines. SHIFTING FOOD CONSUMPTION PATTERNS The rise of income implies a shift in consumption patterns, leading to a greater demand for animal products, meat and dairy products, especially if those products are to be offered at a lower price resulting from a higher abundance of refrigeration facilities and improvements in the supply chain. Despite the fact that Indonesia s level of animal product consumption (meat, fish, diary, egg, milk, etc) per person is still considered low compared to other rapidly developing countries, the consumption figure increases at a steady rate year-on-year. Along with the growing trend for animal proteins consumption, new consumption behaviour arises simultaneously. Apparently, a more educated class has emerged in the Indonesian population, with a remarkable growth in the number of health-conscious consumers who tend to make more intelligent choices to maintain a healthy diet and are willing to pay extra for better quality. That new consumption pattern, driven by the attention to quality and health, has given rise to a growing consumption of healthy, F&B products, such as organic fruits, sugar-free drinks, and gluten-free food. For this reason, the F&B market has witnessed more food manufacturers innovating a variety of healthy F&B products namely nutritional drinks and cereals enhanced with vitamins and minerals to accommodate the buoyant consumer demand and gain market preference; and more retailers using healthy motivations to attract consumers in their marketing campaigns. Consistent with the increased share growth of healthy food products in the food consumption data, retail sales of packaged food have also grown rapidly. The prevalence of packaged food products corresponds in part to the urban consumers need for timesaving convenience and desire for variety. Meanwhile, packaging acts as a partial guarantor of food quality and food safety and allows storage for a period of time. That s why small convenience stores like Alfamart and Indomaret are burgeoning in both big cities and small towns benefitting from the advancing packaging technology. POSITIVE PROSPECTS OF BEVERAGE MARKET Leveraging the world s largest Muslim population and motivated by the increasingly health-conscious consumers, the non-alcoholic beverage market in Indonesia is flourishing with stable year-on-year growth. The top 3 Indonesian favourite consumptions are hot coffee, tea and iced tea drinks. Conversely, the alcoholic beverage market is more regulated and is subject to heavy taxes and exercise duties, and closed to foreign investment. Common alcoholic drinks available in Indonesia are beer and wine, both of which are produced by local manufacturers such as Multi Bintang and Orang Tua. Notwithstanding the government regulations and policies, there is still potential development in alcoholic beverage market fuelled by the demand from upper-income bracket local consumers, as well as from expatriates and tourist communities. In particular, the wine sector in Indonesia is outperforming given the widespread perception of wine being a healthier alternative than other alcoholic beverages. Ostensibly, the consumption of wine in Indonesia has increased by an annual average of 20-25%, and is expected to sustain a similar growth rate in FUTURE TRENDS According to the Business Monitor International Report on Food and Beverages in Indonesia, the food consumption growth rate is forecasted to be 9.4% for For alcoholic drinks, sales growth is expected to amount to 13.3% whilst soft drinks sales growing by 11.4% in Ferrianto Pranata, City Head of Jakarta, The Executive Centre is optimistic about the F&B market in Indonesia, saying The economic growth and urbanisation in Indonesia over the past decade has been accompanied by a fast-growing modern retail food sector and changes in food Gigi Liu, Corporate Director Marketing Communications, The Executive Centre. With over 15 years of experience in corporate branding, marketing, public relations, corporate social responsibility and stakeholder management. The Executive Centre provides serviced offices, virtual offices, meeting and conference facilities, and business concierge services to multinational corporations, smalland medium-sized enterprises, and startups locally, regionally and internationally. consumption patterns. The F&B industry is expected to keep its growing momentum in the future, and evolving food consumption patterns will also characterise the future trends as a young and urbanised population tends to have a greater concern for healthy food and beverages. In addition to this, the growing Indonesian tourism will also result in a higher demand for specific foreign food products. CHALLENGES AND MOVING FORWARD Looking ahead, despite the promising opportunities, it is important to note that many national policies immensely regulate the trade of F&B and a number of requirements have to be strictly followed such as Halal regulations and labelling that can hardly be ignored. And the lack of cold chain infrastructures and cold storage facilities especially outside the main island of Java are also the challenges facing today s sector that may persist in the medium-term. Albeit these hurdles, supported by the favourable micro- and macro-level factors, the Indonesia s F&B Industry is and will continue to be an important industry for the country. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 23

24 SPECIAL EVENTS BritCham Christmas Party 2015 THURSDAY, 10 DECEMBER 2015 MANDARIN ORIENTAL HOTEL, JAKARTA ALICE IN WONDERLAND WAS THE THEME OF THIS YEAR S BRITCHAM CHRISTMAS PARTY. THE BRITCHAM TEAM WORE COSTUMES RELEVANT TO THE THEME WITH CEO CHRIS WREN BRINGING SMILES TO THE ROOM DRESSED AS THE MAD HATTER. Nearly 200 people attended both members and non-members enjoying the show and performance of Arkadius Ari Wibodo and The Arc Music Organizer. The guests were also savouring the food and drink provided by Mandarin Oriental Hotel Jakarta. We were delighted to welcome VIP guests, Hasan Soedjono, Independent Commissioner at Garuda Indonesia, Juliet Maric, Deputy Head of Mission, British Embassy Jakarta and Carol Hinchley, prosperity and Economic Team Head. All fundraising is in support of the BritCham community initiative, Giving Kids a Sporting Chance (GKSC) Special thanks to Mandarin Oriental Hotel Jakarta. Britcham would like to express its gratitude to the parties below for their genuine support of the 2015 BritCham Christmas Party: PLATINUM SPONSOR: GOLD SPONSORS: CHRISTMAS CRACKER: PHOTOWALL: BOOKLET: NOVELTRY: AIRLINE SPONSOR: COGNAC: SILVER SPONSOR: WITH APPRECIATION TO CORPORATE TABLE SPONSORS: Kelly s Express Premier Oil Cushman Wakefield JLL Matahari Dept. Store Hill Konsultan Ben Line Agencies ISCI Hockey Numada OTHER PARTNERS: 24 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

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27 SPECIAL EVENTS UK VISIT SEMINAR 2016 BANDUNG Understanding the Opportunities for West Java Business with British Business MARCH 10 TH, 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA (BRITCHAM) IN COLLABORATION WITH KADIN JAWA BARAT, TODAY TOOK THE FIRST STEPS TO A TRADE VISIT OF WEST JAVA BUSINESSES TO THE UK IN THE FORTHCOMING MONTHS. THE UK VISIT SEMINAR 2016 IN BANDUNG, WAS ATTENDED BY 40+ BUSINESSES THAT REPRESENT KEY SECTORS INCLUDING INFRASTRUCTURE (FOCUS ON MARINE & PORTS), AGRI-TECH, RENEWABLE & CLEAN ENERGIES, HOSPITALITY AND MANUFACTURING SUPPLY CHAIN. THE SEMINAR INCLUDED A MACRO-ECONOMIC OVERVIEW FROM BANK INDONESIA, AS WELL AS THE LATEST FOREIGN INVESTMENT GUIDELINES FROM BKPM JAWA BARAT. A ROUND-UP OF THE SEMINAR WAS CONDUCTED BY BRITCHAM CHIEF EXECUTIVE DIRECTOR, CHRIS WREN. During the seminar, Pak Agung Suryaman Sutisno, Chair of KADIN Jawa Barat and his team presented some of the opportunities available to foreign investment within the focus sectors. Chief Executive Director of BritCham, Chris Wren has pledged to mobilise the support of the 53 regional Chambers in the UK to find matches for West Java business opportunities. We are here in Bandung because we accept that West Java is the natural hub for Indonesia and possibly a location for access to parts of ASEAN as the AEC develops. We are keen for British investors to participate in the opportunities in West Java. We are greatly encouraging local businesses to engage with British SMEs as agents and distributors and to make best use of pioneering British technologies. The next step will be for a mission of around 20 businesses to invest in the UK visit just a few days before President Jokowi s trip to London in mid-april. Chris Wren added that the timing is perfect as British media will already have the focus on Indonesia. Indonesia will be very much on the radar of British business at this time. BritCham Chairman, Adrian Short, confirmed that British Embassy had just put a full time business development FROM LEFT TO RIGHT: CHRIS WREN (BritCham Exec. Director), AGUNG S. SUTISNO (Chairman of West Java Chamber of Commerce and Industry), BKPM Representative in West Java, DUDI DERMAWAN (Bank of Indonesia) resource into West Java as a part of the commitment entered into via a KADIN Jawa Barat/BritCham MOU entered into back in last year. That is part one. Part two is to match-make businesses in the UK. Part three is to bring a reciprocal UK business trade mission back to West Java soon after in May. To join the UK visit, businesses need to demonstrate a clear business opportunity and to have identified what type of partner they are seeking. In the UK, BritCham and the initiative will be fully supported by Bank Indonesia and BKPM in London. West Java Businesses and Journalists FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 27

28 SPECIAL EVENTS BRITCHAM YOUNG PROFESSIONALS GROUP Meet the new Indonesian Ambassador to the UK Panel Discussion THURSDAY, 21 JANUARY 2016 MERCANTILE ATHLETIC CLUB JAKARTA BRITCHAM WAS PROUD TO INTRODUCE RIZAL SUKMA, THE NEW INDONESIAN AMBASSADOR TO THE UK ALONGSIDE J.S MEYER SIBURIAN THE COORDINATING MARKETING OFFICER OF EUROPE FOR BKPM INDONESIA. HE RIZAL SUKMA (Indonesian Ambassador to the UK) and MEYER SIBURIAN (Coordinator Marketing Officer Europe of BKPM Indonesia) HE SUKMA BELIEVES THAT PAK JOKOWI WILL BE ABLE TO PUSH THE ECONOMIC POLICY AND IMPROVE THE SITUATION WITH DOING BUSINESS INTERNATIONALLY. NEW BUSINESS OPPORTUNITIES OUTSIDE OF JAVA IS CURRENTLY HIGHLY FOCUSED ON, WITH THE EAST INDONESIA UK MISSION GOING WELL UNDER WAY. TOURISM AND MANUFACTURING ARE THE KEY INDUSTRIES THAT WILL HELP PUSH THE LOCAL ECONOMY FURTHER. Chris Wren, CEO of BritCham welcomed the speakers congratulating HE Sukma to his new position and opened with a question regarding his interests in becoming ambassador. In response; HE Sukma explained about his time as a student in the UK, he found the visa process slow and frustrating promising to himself that he would one day change this situation. His parents also had close connections to the UK and these two factors are the driving force for his interests to work with this country. Pak Sukma mentioned five points which he will focus on during his role in the UK these include; Trade and Investment, Maritime Infrastructure, Tourism, Strategic Defense and Education. He also realizes the fact that Indonesia is a great opportunity for the UK for investment; however more work needs to be done to ensure Indonesia stands out on the map. HE Sukma mentioned that there had been a big change in terms of the licensing process in the country for International businesses. BKPM has started offering the promised threehour licensing service for investors planning to open businesses in a bid to attract large-scale investment and eventually create jobs in the country. HE Sukma believes that Pak Jokowi will be able to push the economic policy and improve the situation with doing business internationally. New business opportunities outside of Java is currently highly focused on, with the East Indonesia UK mission going well under way. Tourism and manufacturing are the key industries that will help push the local economy further. Chris Wren asks Pak Siburian what he would like to see between BKPM and UKTI take place in the near future. Pak Siburian talks about the Business mission trip to the UK where 20 Indonesian businesses will partner with UK businesses and discuss trading opportunities. This 28 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

29 JAKA SINGGIH (Bumi Laut Group) The participant asking question in Q&A session ANDREW SUTEDJA (Chairman of YPG) and HE RIZAL SUKMA (Indonesian Ambassador to the UK) ADRIAN SHORT (Chairman of BritCham) and MEYER SIBURIAN (Coordinator Marketing Officer Europe of BKPM Indonesia) CHRIS WREN (Executive Director of BritCham), HE RIZAL SUKMA (Indonesian Ambassador to the UK) and MEYER SIBURIAN (Coordinator Marketing Officer Europe of BKPM Indonesia) 2. The participants of YPG event 3. The participants of the event with ANDREW SUTEDJA (Chairman of YPG), MEYER SIBURIAN (Coordinator Marketing Officer Europe of BKPM Indonesia) and CHRIS WREN (Executive Director of BritCham) 4. The participants of YPG event will be a focused trip, with a key goal of promoting Indonesia as part of the global supplier outside of palm oil and other current exports. Pak Suburian mentions jewelry, wooden door frames and electronic products are just a few of the products Indonesia can provide in the global supply chain. In May, a selection of UK businesses will make a trip to Indonesia exploring the industries this country has to offer, creating key contacts for future business relations. When asked which football team HE Sukma will support to Chris frustration the answer comes as Manchester United. Pak Sukma explains his daughter follows this team and would let her down if he decides to cheer on a rival. Keen to further explore the country Pak Sukma would like to visit Belfast, Edinburgh and Liverpool taking in the sights from every corner of Britain. Also discussed on the panel was tourism and the potential Indonesia has to expand and promote this key industry. Indonesia has some of the most beautiful natural destinations on the planet and this can be promoted further to increase tourism- expanding the local economies in wider regions of the country. The audience were invited to ask questions to the panel, a key discussion was education and young Indonesian citizens living abroad. There are currently over 2,000 Indonesians studying abroad, which is a small figure when compared with Malaysia or India s statistics. Pak Siburian explained that 96% of Indonesian international students return to Indonesia after their studies abroad. A member of the Young Professionals Group who studied in England explained that there is little support for Indonesian citizens wanting to work in the UK. A group in which promoted this group of expats was agreed to be beneficial with the new Indonesian ambassador taking notes. Opening up an authentic Indonesian restaurant was recommended by a member of the group- with key areas of focus being the South West of England and also Covent Garden in London. The evening was a huge success with an interesting discussion taking place and a lively audience asking great questions. We wish HE Sukma the best of luck in London and are confident he will succeed in his ventures. Thank you to our sponsors ICAEW, AETNA and Stedja & Associates. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 29

30 SPECIAL EVENTS BRITCHAM LUNCHEON Meet Pak Rosan the New Chair of Indonesian Chamber of Commerce and Industry (KADIN) THURSDAY, 4 FEBRUARY 2016 RITZ CARLTON MEGA KUNINGAN JAKARTA ON THURSDAY 4 TH FEBRUARY BRITCHAM HELD A LUNCH MEETING AT THE RITZ CARLTON IN JAKARTA INTRODUCING PAK ROSAN; THE NEW CHAIR OF KADIN. 65 people attended the event with many thanks to our sponsors; PT.TMF Indonesia. BritCham s Chairman Adrian Short introduced the event welcoming all members and guests of BritCham. David Burke gave a short speech regarding brief updates to Kadin and the economic state of Indonesia. Pak Rosan gave his speech about the current investment climate, and updates to business regulations to Kadin. ROSAN P. ROESLANI (Speaker of the Event, Chairman of KADIN) DAVID BURKE (BritCham Board Member) and ROSAN P. ROESLANI (Chairman of KADIN) The participants SHAVEEN (Business Development Manager of OBNi), PERMANA ADI SAPUTRA (PB Tax) and RINA SUTRISNO (Cushman Wakefield) ADRIAN SHORT (Chairman of BritCham), CHRIS WREN (Executive Director of BritCham), and ROSAN P. ROESLANI (Chairman of KADIN) Marizca Tambunan (PT SHL Indonesia), Irhoan Tanudiredja (PwC Indonesia) and Mikail Jaman (TGS AU Partners) JAY SINGGIH (BritCham Board Member), CHRIS WREN (Executive Director of BritCham), ROSAN PERKASA ROESLANI (Chairman of KADIN), ADRIAN SHORT (Chairman of BritCham) and DAVID BURKE (BritCham Board Member) 30 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

31 THIS MONTH S FEATURES Rosan P.Roeslani The New Chair of Indonesian Chamber of Commerce and Industry (KADIN), WHAT IS KADIN S MAIN AGENDA FOR 2016? Our main agenda is to review the negative investment list with the Indonesia Investment Coordinating Board (BKPM). The final report will be given to them immediately, this is regularly done by KADIN. Most of our key stakeholders include international chambers, businesses, and delegations have suggested to open the negative investment list. This is perceived as the primary agenda of KADIN in 2016, to coordinate such regulations with associated government body. WHAT ARE THE BIGGEST OBSTACLES/ CHALLENGES THAT BUSINESSES EXPANDING TO INDONESIA ARE FACING? Over the past years, there were significant growth on commodities, industry has expanded across Indonesia. The price of commodities has declined and has caused a lack of revenue and layoffs on related business and industries. Indeed, this is identified as the biggest challenge to be encountered by local and foreign businesses. ACCORDING TO UK AMBASSADOR HMA MOAZZAM MALIK DURING BCI 2015, DIALOGUE IS ONE OF THE MOST CRITICAL PARTS IN GENERATING A POLICY, ESPECIALLY WITH ASSOCIATED STAKEHOLDERS. IN YOUR PERSPECTIVE, HOW TO COPE WITH COMPLEX BUREAUCRACY IN INDONESIA? Yes, Indonesian bureaucracy is deemed as complex, we have discussed our concerns with the President, Vice President, and Ministers to discuss with KADIN prior any regulation changes or new policies. We are representing many business associations from a variety of sectors across Indonesia both local and foreign. It is important for us to be involved in policy making with the government regarding business matters. In my view, the Indonesian government has been really open to KADIN, and it is a very positive start, whereas some of the government staff from the ministries are still having management issues. This is a huge obstacle in creating a positive business climate in Indonesia. The policy makers should be more open minded and proactive in dealing with issues, also focus on similar purposes and encourage businesses with regards to its policy making decision. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN ARE YOU OPTIMISTIC REGARDING THE LATEST REGULATION OF BKPM S 3 HOURS LICENSING? A very positive action from the Government. On the other hand, it is well acknowledged that ministries remain less coordinated amongst themselves. This is seen as a critical issue and has had an impact on the implementation. Consistency and sustainability are the most important things in which BKPM should execute when implementing the 3 hour licensing. WHAT ARE THE MOST POTENTIAL SECTORS IN INDONESIA? Infrastructure, the creative industry, and also tourism. Although we are not as advanced as our neighbours, such as Singapore and Malaysia, we have lots of potential in the tourism industry. We should improve the transport systems to encourage more foreign and local tourists to visit. Wellplanned marketing strategies are vital in promoting Indonesia to the world. WHAT IS THE BEST STRATEGY TO PROMOTE INDONESIAN TOURISM ACROSS THE GLOBE? The government should add more funding with regards to promotional strategy/activities. The service of locals should be improved, and the infrastructure should be developed sufficiently. Likewise, business licensing should be a priority of the government. WE HAVE HEARD ABOUT PALAPA FUND, HOW IS THE PROGRESS SO FAR AND HOW MANY SMES HAVE YOU HELPED? Currently, we have helped entrepreneurs across 28 provinces in Indonesia. There are 4-10 businesses in each province and we have given these entrepreneurs at total of IDR 500 Million. The Palapa Fund (Start-up initiative) will be launched around June Funding will be facilitated by KADIN, and we would like to invite foreign investors to be involved in future programmes. INTERVIEW BY ANKA 31

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33 Ross Hunter Executive Director of the UK-ASEAN Business Council HAVE YOU BEEN TO INDONESIA BEFORE? IF SO, WHAT S YOUR FAVORITE DESTINATION AND WHY? I first went to Indonesia nearly 20 years ago as an excitable backpacker on my way around the world, where I took in the beautiful Dutch architecture and the stunning beaches of Bali. I returned some 15 years later wearing a suit, taking in the inside of hotels and offices! WHAT IS THE MAIN ROLE OF UK- ABC AND HOW WILL YOUR SERVICE BENEFIT UK BUSINESSES? The UK-ASEAN Business Council provides a window to ASEAN for UK companies by signposting the latest information, relevant events and providing access to senior government and business figures. The UKABC gives SMEs an appreciation and insight into ASEAN s dynamic markets giving them a head start in their decision making process, enabling them to so focus on their export or investment strategy. For larger companies, the UKABC works hard to ensure they have opportunities to raise specific issues with the regular flow of ministers and senior officials visiting the UK, helping to ensure the ASEAN business environment is as friendly to UK companies as possible. As part of the UK-ASEAN business network, the UKABC works with the British Chambers of Commerce across ASEAN. By providing this point-to-point service for British companies they are better prepared to enter the ASEAN markets and land on the ground business ready. IN YOUR OPINION, IS THE CURRENT REGULATORY FRAMEWORK THAT INDONESIA HAVE ATTRACTIVE ENOUGH TO DRAW INVESTMENT? Every regulatory framework could be more attractive and one of the quotes I heard recently about Indonesia was nothing is easy, but everything is possible. This is where having an in-market partner such as the British Chamber of Commerce is key to helping you understand and then navigate the regulatory environment relevant to your business. THE TOURISM INDUSTRY IS KEY TO INDONESIA S ECONOMY, DO YOU FEEL THE UK CAN FURTHER PROMOTE BRITISH TRAVELERS TO INDONESIA? I think so. Everyone knows about the beaches of Bali, but there is so much more to Indonesia that I was able to see when I was a backpacker. Global tourism is a fierce competition and Remarkable Indonesia needs to be the new go-to-destination for UK tourists. THE COMPETITION AMONGST ASEAN COUNTRIES IS INTENSE, WHAT ARE THE STRENGTHS OF INDONESIA? The key strengths of Indonesia are its sheer scale as ASEAN s powerhouse economy and central location at the heart of Asia Pacific. It currently has a population of 250 million and will have the world s largest smartphone market by 2020, reflecting its young, digital population. Indonesia is already the world s 16 th largest economy in the world 45 million members of the consuming class and in just 15 years FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 33

34 THIS MONTH S FEATURES time Indonesia is predicated to be the 7 th largest economy in the world 135 million members of the consuming class. As part of the integrated ASEAN economy of some 600 million, the size of the prize is clear. WHAT ARE YOUR EXPECTATIONS DURING AND AFTER THE UK VISIT IN APRIL? The visit of the President of Indonesia is hugely significant for strengthening UK-Indonesian relations. Increasing Indonesia s profile to UK audiences will be key and the visit of Indonesia s charismatic President will ensure this happens. It will be important to raise the awareness of the whole of Indonesia and not just the capital city of Jakarta. As part of the visit, the British Chamber Indonesia will be bringing over delegations from Surabaya and Bandung, key economic centers on Java, to meet with UK companies to discuss commercial THE VISIT OF THE PRESIDENT OF INDONESIA IS HUGELY SIGNIFICANT FOR STRENGTHENING UK- INDONESIAN RELATIONS. INCREASING INDONESIA S PROFILE TO UK AUDIENCES WILL BE KEY AND THE VISIT OF INDONESIA S CHARISMATIC PRESIDENT WILL ENSURE THIS HAPPENS. partnerships. The visit will also expose the presidential delegation to the latest UK expertise and cutting edge innovation to help drive collaborative efforts across a number of sectors. These collaborations will be key to ensure the visit drives an increase trade between the UK and Indonesia. WHAT ARE UK-ABC S MAIN AGENDA IN THE FORTHCOMING MONTHS? The first half of 2016 sees the UKABC pick up where it finished 2015 busy! There are a number of inward visits to the UK from across ASEAN planned; the new UKABC digital platform goes live; working with the British Chamber and LCCI to bring a trade mission to Indonesia; and running our regular series of events across the UK. The UKABC will also be hosting a number of ASEAN focused events at the UK s largest business festival the International Festival of Business 2016 ( in June, in Liverpool. INTERVIEW BY BRITCHAM COMMUNICATIONS TEAM (ANKA, IRENA AND CHRIS COOK) Bambang Sudradjat Vice President and Shareholders of PT. Konsultasi Pembangunan Semesta & Deputy Chairman of the Indonesian Chamber of Commerce and Industry Central Area (Bali, Jawa and Kalimantan) THE PRESIDENT SAID THAT VARIOUS SECTORS HAVE BEEN IMPROVED TO ATTRACT INVESTMENT, WHICH PARTICULAR SECTOR DO YOU FEEL IS MOST LIKELY TO SUCCEED WHEN COMPETING WITH THE ASEAN COUNTRIES? Tourism is the likely sector to succeed. Indonesian citizens take hospitality seriously and always respect guests, treating them very well. Alongside our rich and diverse culture, Indonesia has many beautiful nature spots which hasn t been affected by industrial action- another reason as to why nature preservation is vital, not only for climate change but for the sustainable development of Indonesia. HOW HAS THE KADIN JOURNEY BEEN SO FAR IN INDONESIA? The vision and mission of KADIN has been progressing however, if the Government does not cooperate and work with KADIN then it is a much slower process. KADIN is very different compared to the Chamber of Commerce s abroad. Overseas Chambers become the spearhead of a country, the Chambers co-ordinate with the ministries of trade, industry etc. But in Indonesia is not that way. The function of KADIN is still ambiguous and overlapping with other agencies. WITH REGARDS TO THE AEC, WHAT ARE THE MAJOR CHALLENGES ADDRESSED BY BUSINESSES IN INDONESIA? 34 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

35 Bureaucracy, law enforcement, regulatory reform and policies. Indonesia is one of Asian countries that is well known for the long periods of handling goods. In the sense that if there are goods that will enter or exit through one of the ports in Indonesia, the process is complicated and very long. For example in other countries when the process is only a matter of hours, in Indonesia this will take at least 3 days. WE RECOGNIZE THAT THE INDONESIA INVESTMENT COORDINATING BOARD HAVE LAUNCHED A SET OF LICENSING SERVICES, ONE OF THE MOST RECENT IS THE 3 HOUR LICENSING PROCESS. WHAT IS YOUR STANDPOINT IN REGARDS TO THIS? DO YOU THINK THIS IS THE MOST EFFECTIVE WAY TO DRAW INVESTMENT? In connection with BKPM and its one-stop service, I strongly agree that there is only one door that can handle all licensing. We want to attract potential investors by improving the licensing process and making the overall process of investment much more straightforward than it currently is. I believe that Indonesia needs a lot of investment from other countries and this one-stop service is one of the things that can help. WE WANT TO ATTRACT POTENTIAL INVESTORS BY IMPROVING THE LICENSING PROCESS AND MAKING THE OVERALL PROCESS OF INVESTMENT MUCH MORE STRAIGHTFORWARD THAN IT CURRENTLY IS. I BELIEVE THAT INDONESIA NEEDS A LOT OF INVESTMENT FROM OTHER COUNTRIES AND THIS ONE-STOP SERVICE IS ONE OF THE THINGS THAT CAN HELP. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN HAVING KNOWN THE GOVERNMENT S AGENDA TO REFORM THE DIRECT NEGATIVE INVESTMENT LIST IN THE UPCOMING MONTHS, DO YOU THINK THAT THIS WILL IMPROVE LOCAL INDUSTRIES COMPETITIVENESS? FOR INSTANCE, THE ABILITY OF MULTI- NATIONAL COMPANIES EXPLOITING LOCAL INDUSTRY. There are two alternatives, either encourage or discourage. This is determined by several factors, two large factors include the government as a facilitator and the market conditions. In terms of exploitation, we have entered the era of globalization, so I feel it is important we start to work together. INTERVIEW BY BRITCHAM COMMUNICATIONS (ANKA & IRENA) 35

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37 LEISURE & RECREATION SPORTS DIVING IN INDONESIA INDONESIA HAS A UNIQUE AND OUTSTANDINGLY BEAUTIFUL HABITAT, BOTH ABOVE AND BELOW THE WATERLINE AND IS AN INCREASINGLY POPULAR HOLIDAY DESTINATION OF A LARGE NUMBER OF RECREATIONAL DIVERS. THIS ARTICLE IS AIMED AT THE LESS EXPERIENCED SPORT DIVER ADVENTURER RATHER THAN THE SEASONED PROFESSIONAL. As with many such holiday destinations, divers want to maximize their adventure but also challenge and advance their own diving expertise. With warm clear seas and an abundance of tourist operators then the opportunities seem enormous. There are some general caveats however. Local dive operators may or may not conform to an international standard. Their adherence to good practice standards, equipment maintenance and staff training may not offer the same level of safety as many will have experienced in the more established dive holiday locations. When booking a dive holiday use the on-line forums, get word of mouth personal recommendations and use reputable travel agents. Before you travel, get fit. Both physically fit and dive fit. By dive fit, this means regular diving activity, getting the body used to the stresses and strains of the in-water environment and also used to taking on a gas load and off-gassing also. The risk of Decompression Illness is much higher in those unfit or overweight. Whilst many sport diving organizations don t require a diving medical these days, if you have any concerns about your own health then book an appointment with a recognized diving physician. If choosing more remote locations, then bear in mind that they are just that, remote. The access to general medical care can be exceedingly limited, there may be no-one who speaks English well and for many new dive adventurers, the look and feel of local national medical facilities may be unfamiliar and uncomfortable. The doctor to population ratio is very low in Indonesia compared to many developed countries and whilst a larger number of medicines are available without prescription at pharmacies, if you are on any long term medication then you should bring enough supplies with you to cover the whole trip. It is also very worthwhile to bring a small first aid kit. In the event of a dive emergency you need to know who you can call for advice and how you can call. Mobile phone reception must not be taken for granted, nor can access to oxygen. Recompression facilities may also be limited and the travel to them certainly not straight forward. You need to take reasonable levels of cash with you. ATMs may not be as frequent as in the cities and electronic payment fraud is not unheard of. Many clinics and recompression chambers do not work with insurance companies directly either, so you may have to pay and claim it back later. Given this, then plan your diving days on the conservative side of the tables and keep yourself in good condition with Dr Brando Tamayo s first career was as a commercial diver before becoming an offshore medic and then going to medical school in Scotland. He served as a medical officer in the Royal Navy for 20 years and was qualified crew in both Polaris and Trident submarines. As an anaesthesiologist he served tours in both Iraq and Afghanistan. He left the military in 2010 and worked initially for the NHS as well as a defence contractor and an aeromedical company. To expand his understanding of management he undertook an MBA at Portsmouth Business School during this period. His first major move abroad was to Russia where he was Medical Director for a European standard new hospital project. He joined International SOS here in Jakarta in October He has an interest in aviation and holds a private helicopter pilots licence. healthy eating, good hydration, little alcohol and good sleep. Also be wary of taking on new technical competencies, such as night diving or deep diving, unless you are very comfortable with the dive operator, your buddies and your own abilities. On your final day don t forget to leave a gap before flying; at least a 12 hour gap for a single dive or 24 hours for multiple or deep dives. In general terms, there are many online guides to travel and holidays in Indonesia which you should look at. Don t forget about the usual risks around food hygiene, tropical diseases, safety and security, cultural awareness and even volcano eruptions interfering with air travel! So in summary. Plan your trip well, get fit, take cash, expect the unexpected, be flexible, plan conservative dive days and of course, enjoy! If you are an International SOS Member then you can get advice and help from the Jakarta Assistance Centre on or Bali FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 37

38 LEISURE & RECREATION CULTURAL SURVIVAL GUIDE TRAVELLING WITHIN INDONESIA TRAVELLING ON BUSINESS OR LEISURE WITHIN INDONESIA CAN BE A TREMENDOUSLY INTERESTING EXPERIENCE. THE HABITAT IS RICH AND DIVERSE, THE PEOPLE WARM AND FRIENDLY AND THE SCENERY SPECTACULAR IN THE EXTREME. Dr Brando Tamayo s first career was as a commercial diver before becoming an offshore medic and then going to medical school in Scotland. He served as a medical officer in the Royal Navy for 20 years and was qualified crew in both Polaris and Trident submarines. As an anaesthesiologist he served tours in both Iraq and Afghanistan. He left the military in 2010 and worked initially for the NHS as well as a defence contractor and an aeromedical company. To expand his understanding of management he undertook an MBA at Portsmouth Business School during this period. His first major move abroad was to Russia where he was Medical Director for a European standard new hospital project. He joined International SOS here in Jakarta in October He has an interest in aviation and holds a private helicopter pilots licence. First of all, try to make you travel relaxed and easy. Plan your journey with ample time to get to airports and bear in mind very congested roads in places like Jakarta. Don t pre-load your journey with stress by packing the schedule too tight. In Indonesia delays are common and should be expected. Not the least of which is the risk of volcanic eruptions and the interruption with air travel. Understand the culture and have so-called cultural intelligence. That is to understand the impact of the environment and local people on you and the effect you have on them in return. If you are a person that gets upset or angry with what you perceive to be slow service or lack of pace in people then expect this and find strategies to not show your frustration and mitigate your response. If you do show it, then of course you cause an affect in the people around you and the level of help and support being offered may lessen as a consequence. Try to understand who you are and who are the people and the culture of Indonesia. Another dimension of this is religious and social constraints. What passes as accepted in your home country, or indeed in a major city like Jakarta, may not do so in a more rural region, so be more cautious with your behavior and clothing. We all work in industries where we have difficult customers, difficult colleagues, difficult staff and difficult bosses. We all know what bad and good service looks like or we know it in the context of where we come from. Similarly, the look and feel of hotels and healthcare clinics, for example, will be different to many developed world countries. It may feel to you at a lower standard, but in fact you must accept it at a different standard. Expect it to be different, accept it and plan for how you might cope in an emergency. The angry foreigner, complaining about their perception of a 3 rd world service, helps no-one and certainly not the person on trouble. In Indonesia, the people are courteous and respectful and are pleased to be treated so in return by foreigners. Even if you do not speak any of the 38 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

39 LEISURE & RECREATION Indonesian language, your body language and affect will give you away if you are angry or frustrated. Part of the planning you need to do for your trip is to know your travel insurance company procedures. Certainly you should not be travelling without insurance and when that unforeseen event occurs you need to know who to call and how you will call them. Have an understanding of where you are going to visit and what the facilities are at that location. Give yourself an impression of what could happen and what you want to happen given an emergency. This gives you best chance of coping when in times of stress in a unfamiliar location. Knowing what is realistic and achievable will allow you to get the best out of your insurance or assistance company. Some general advice: Don t plan too tight schedules be flexible Have cultural intelligence Do your research. Know where you are going and what the facilities are at that location Know your travel insurance company procedures and who and how you well seek assistance if you need it On board the aircraft. Sit in a row as close to the emergency exit as you can. Your highest chance of survival in a ditching incident is if you are sitting close to an emergency exit. Don t take you shoes off until the aircraft is well established in the air after take-off and have them on for landing. In a ditching incident, running across a runway in bare feet is not recommended. Similarly keep your passport and mobile telephone in your pocket during take-off and landing also. You may need them if you have to get of the aircraft quickly and certainly you should not stop to collect bags. Carry in your hand luggage hand wipes, a small bottle of alcohol gel, mobile telephone charges, a back-up phone battery, pen & paper and all the small artefacts we carry around daily that seem ordinary but are critical. Think about carrying a small high quality flashlight. It s useful onboard during lights outs periods, but again if the plane ditches at night it can be a life saver. Try to be as self-sufficient as possible. If you can, travel light and take all your possessions on to the aircraft. Checking-in luggage is slow and there is the ever present risk of lost luggage and theft Carry cash. Access to ATMs can be limited in rural locations and electronic payment fraud is not unheard of Lastly, there are many on-line guides to travel and holidays in Indonesia which you should look at. Don t forget about the usual risks around food hygiene, tropical diseases and safety and security. E-BOOKS: A NEW PAGE IN READING IF YOU ARE A BOOK LOVER LIKE ME AND ENJOY READING AS A LEISURE ACTIVITY, THEN MOST PROBABLY YOUR BEDSIDE TABLE TOO HAS A STACK OF BOOKS. YOU WILL AGREE THAT GETTING YOUR HANDS ON THE LATEST BOOKS IN INDONESIA CAN BE DIFFICULT AND SOMETIMES EVEN IMPOSSIBLE. E-BOOKS ARE THE ANSWER TO THIS PROBLEM. Indonesian language, your body language and affect will give you away if you are angry or frustrated. Part of the planning you need to do for your trip is to know your travel insurance company procedures. Certainly you should not be travelling without insurance and when that unforeseen event occurs you need to know who to call and how you will call them. Have an understanding of where you are going to visit and what the facilities are at that location. Give yourself an impression of what could happen and what you want to happen given an emergency. This gives you best chance of coping when in times of stress in a unfamiliar location. Knowing what is realistic and achievable will allow you to get the best out of your insurance or assistance company. Some general advice: Don t plan too tight schedules be flexible Have cultural intelligence PART OF THE PLANNING YOU NEED TO DO FOR YOUR TRIP IS TO KNOW YOUR TRAVEL INSURANCE COMPANY PROCEDURES. CERTAINLY YOU SHOULD NOT BE TRAVELLING WITHOUT INSURANCE AND WHEN THAT UNFORESEEN EVENT OCCURS YOU NEED TO KNOW WHO TO CALL AND HOW YOU WILL CALL THEM. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 39

40 Celebrating 48 years of investment and progress in Indonesia. For over four decades, BP has been working in partnership with Indonesia. We take great pride in the progress we have made, from opening the first vertically integrated liquid natural gas operation at our Tangguh plant to the $25 million investment in local communities through our Integrated Social Programs. We plan to deepen our commitment in Indonesia in the coming years: expanding Tangguh with a third LNG train, allocating a targeted 40% of the LNG produced from this train for domestic consumption, and aiming to employ an 85% Papuan workforce at Tangguh by To learn more about BP in Indonesia, please visit bp.com/indonesia

41 LEISURE & RECREATION Do your research. Know where you are going and what the facilities are at that location Know your travel insurance company procedures and who and how you well seek assistance if you need it On board the aircraft. Sit in a row as close to the emergency exit as you can. Your highest chance of survival in a ditching incident is if you are sitting close to an emergency exit. Don t take you shoes off until the aircraft is well established in the air after take-off and have them on for landing. In a ditching incident, running across a runway in bare feet is not recommended. Similarly keep your passport and mobile telephone in your pocket during take-off and landing also. You may need them if you have to get of the aircraft quickly and certainly you should not stop to collect bags. Carry in your hand luggage hand wipes, a small bottle of alcohol gel, mobile telephone charges, a back-up phone battery, pen & paper and all the small artefacts we carry around daily that seem ordinary but are critical. Think about carrying a small high quality flashlight. It s useful onboard during lights outs periods, but again if the plane ditches at night it can be a life saver. Try to be as self-sufficient as possible. If you can, travel light and take all your possessions on to the aircraft. Checking-in luggage is slow and there Poonam Sagar is the ever An ecommerce solutions consultant and coowner of PT Infotech present risk of lost luggage Solutions, a technology company specializing and theft in web services and Carry cash. software products for the broadcast and Access to media industry. ATMs can be limited in rural locations and electronic payment fraud is not unheard of Lastly, there are many on-line guides to travel and holidays in Indonesia which you should look at. Don t forget about the usual risks around food hygiene, tropical diseases and safety and security. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 41

42 42 UP.DATE ISSUE COPYRIGHT 2015 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

43 LEISURE & RECREATION THE FUTURE PARADISE Bali Gigi Liu, Corporate Director Marketing Communications, The Executive Centre. With over 15 years of experience in corporate branding, marketing, public relations, corporate social responsibility and stakeholder management. The Executive Centre provides serviced offices, virtual offices, meeting and conference facilities, and business concierge services to multinational corporations, smalland medium-sized enterprises, and startups locally, regionally and internationally. BALI IS MAGICAL. AS THE WORLD-RENOWNED SLICE OF PARADISE IN INDONESIA, BALI BLENDS BREATHTAKING MOUNTAIN SCENERIES AND WHITE SANDY BEACHES WITH A FASCINATING CULTURE AND SMILING RESIDENTS. THIS ISLAND HAS BEEN NAMED AS THE WORLD S BEST ISLAND IN 2009 BY TRAVEL & LEISURE MAGAZINE, RANKED SECOND PLACE AMONG THE WORLD S TOP REGION BY THE LONELY PLANET S BEST OF TRAVEL 2010, AND HONORED AS THE WORLD S BEST ISLAND BY THE CONDE NAST TRAVELER BEST OF READER S CHOICE AWARD Anointed by the global reputation, Bali has long been a tourism hotspot, pulling in 4 million holidaymakers in However, with the beauty of the paradise being under threat owing to the over-development and the increase in foreign tourism, the Indonesia Government is taking major action to conserve it. THE PARADISE ISLAND Bali, one of the smaller islands of Indonesia, goes under many names - Island of Gods, The Hidden Paradise, The Last Paradise on Earth, the Emerald Isle of Asia, Morning of The World, Island of a Thousand Temples, and Island of the Smiling People. Bali has always been one of the top leisure destinations. It appeals through its natural beauty of mountains and volcanoes, amazing terraced rice fields and exotic beaches that exude tranquility and peace. It enchants with its ceremonial dances and festivals, its traditional arts and crafts, its stunning beachfront resorts and hotels, as well as its magnificent temples and palaces. This tropical island has much to offer, from inspirational spirituality to fine dining and exciting night life, from world class surfing, beach sports, snorkelling and diving to exhilarating treks in the wild. This fascinating paradise has a unique blend of modern recreation facilities combined with wonderful shopping precincts and a rich past and heritage. Exceptional beauties and captivating local cultures successfully gathers a variety of tourists from all around the world: from those who come to surf the waves of Kuta, Uluwatu and Dreamland, to others who are fascinated by the spectacular mountains and lakes at Batur, Kintamani, or Lake Beratan FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 43

44 LEISURE & RECREATION at Bedugul, to those who merely love shopping or resting on the beach. FLOURISHING TOURISM Indeed, tourism in Bali only began in 1970s when World Bank advised Indonesia to strengthen its economy through tourism industry and that did apparently bring numerous advantages for the island and transform Bali from an unimportant economic area of the country to the second most significant area in Indonesia. Over the past few years, tourism in Bali has been evolving and growing rapidly as it receives special attention from the government in order to achieve the government s middle-term target of attracting about 20 million foreign tourists by 2020 in the whole archipelago. The number of tourists doubled from 2 million in 2009 to 4 million in The foreign tourists are mostly from the neighboring countries in Asia Pacific, namely Australia, China, India, Japan, Malaysia and Singapore as the biggest main. Unlike any other destinations, the tropical climate makes Bali an attractive destination all-year round with very high hotel room occupancy. As a major leisure destination in Indonesia with key contribution to the tourism sector of the local economy, Bali is expected to see the development of 50 hotels in 2016 with a total of 8,283 rooms, a 100% increase in the number of hotel development projects on the island compared to that in 2015 in which around 25 new hotels were established. IMBALANCE BETWEEN GROWTH AND SUSTAINABILITY Beyond the luxurious hotels and crystal waters however there is a negative side to this economic prosperity. Alarmingly, the mass tourism and over-development are not in line with a proper planning and have caused some damages to the island s social and natural environment. Every year, over 1,000 hectares of agricultural land are lost to hotels, luxury housing for rich foreigners or just roads to improve connections on this island with 3.5 million inhabitants. Every day, more than 20,000 cubic metres of waste are dumped on public tips and only half is recycled; and hundreds of hotels use up a large share of freshwater reserves, with each four-star room consuming 300 litres a day. The cumulated effects of mass tourism, frenzied consumption and an ecological disaster are putting the paradise at risk of being lost. STEPS TOWARD SUSTAINABLE TOURISM In an attempt to mitigate the adverse effects of mass tourism on Bali s economic and culture landscapes, the Indonesian Government has put greater emphasis on the environment and sustainability, and implemented ongoing initiatives to drive the tourism sector through sustainable growth. Building rules and regulations have gradually been tightened and the development criteria expanded. Building heights have been restrained by a rule that stipulates that no new buildings can be taller than the tallest palm tree; and one of the provisions also makes it compulsory for resorts to be set back at least 150 metres from beaches. A new decree has been issued to ban new buildings in already developed areas so as to prevent future concrete jungles. Local Balinese authorities now closely monitor the building of new tourist facilities, issuing permits and supporting the required infrastructural development to sustain new buildings; and implement sustainable practices with which agriculture, tourism and small scale industry synergistically support each other. The Government has also revealed plans to develop ten tourist destinations in 2017 to shift the focus of Indonesian tourism away from Bali. The ten destinations are Tanjung Kelayang in Belitung, Tanjung Lesung in Banten, Thousand Islands in Jakarta, Borobudur Temple in Central Java, Mount Bromo in East Java, Mandalika in South Lombok, Labuan Bajo in East Nusa Tenggara, Wakatobi in Southeast Sulawesi, Morotai in North Maluku, and Lake Toba in North Sumatra. Meanwhile, to preserve energy sustainability, the Government, through the Ministry of Energy and Mineral Resources (ESDM), has announced plans to make Bali the first province using 100% clean energy in the country by Ferrianto Pranata, City Head of Jakarta, The Executive Centre commented, Sustainability can go hand in hand with economic growth, and sustainable tourism is the way ahead. Apparently, the Indonesian Government s latest tourism policy has taken on board the principles of environmental protection and sustainable development and is also based on the four-pronged approach: pro-poor, pro-growth, projob, and pro-environment. He continued, In reality, there are numerous factors like rulemaking, funding, capacity that shape and determine how that policy is implemented and ultimately, the impact it will have, regardless of how well the policy is formulated. Overall, effective policy requires input and commitment from the whole Bali community, and the local Balinese authorities play an important role in monitoring and evaluating the implementation of new rules and regulations. CONSERVING THE PARADISE Striking the balance between economic growth and sustainable development is proving to be a great challenge for the Balinese authorities as tourism is big business and is proven substantial as means for economic development. At any rate, compared with other holiday venues in South-East Asia, Bali has retained much of its magic, at least in the areas so far not affected by mass tourism. But if nothing is executed to halt the current alarming trends, it may suffer the same fate as other dream destinations. Conserving Bali thus cannot be ignored. 44 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

45 LEISURE & RECREATION A JOURNEY TO EXOTIC INDONESIA HOLIDAYS ARE ALWAYS FUN AND EXCITING. IT S A WAY TO REFRESH YOUR MIND AND SOUL WITH NEW ADVENTURES, ACKNOWLEDGE YOURSELF WITH DIVERSE CULTURES, MEET DIFFERENT PEOPLE, AND REALISING THAT LIFE IS MORE THAN SITTING IN THE OFFICE ALL DAY. Nowadays, travel is recognised as a lifestyle for young adults in Indonesia. Low cost fares are likely the main factor of the current vogue. Indeed, not only that, Indonesia is also famously known as a vast archipelago with endless natural landscapes. Considering several options of marvellous destinations, I decided to spend my Christmas and New Year s Eve exploring one of the most enchanting places in Indonesia named the Komodo Islands. The trip was quite spontaneous as I travelled by myself. I successfully managed to book a 5 day and 4 night sailing journey from Lombok to Komodo Islands. I have short listed a few must-visit destinations in East Indonesia. There is so much to explore right here in the Komodo Islands. SATONDA ISLAND water lake in Satonda crater. The eruption of Mount Tambora on 15 April 1815 formed an ancient lake. It was once filled with fresh water, however the lake now contains salt water after the tsunami happened due to eruption. The outcomes of the eruption was enormous across the world, one of these included non-stop rain in throughout the UK. The phenomenon triggered a typhus epidemic that killed 65,000 people. Further, it also resulted in darkness which inflicted on crop failure in China, Europe, and Ireland and also led to food shortages within these countries. GILI LABA ISLAND Anka Communications Coordinator BritCham heavy luggage, whereas bring your backpack and wear sport shoes. The trekking route is quite tough, make sure you prepare water and food. The journey to the top takes time roughly 1 hour and 45 minutes to go back to the beach. If you are into nature, Gili Laba is definitely a paradise for you! With such a credible local guide, you will often find hidden place to enjoy the view from the top of island. Perhaps, no one has ever heard about this island as it s hard to find. The island is situated in the northern coast of the island of Sumbawa, near to Moyo Island. Satonda Island was created by a volcanic eruption on the sea floor at a depth of 1,000 meters, and thrust upwards some millions of years ago. What makes the island unique and enchanting is the presence of a salt The second destination and also the second day of my trip was the Gili Laba Island. Sailing for 20 hours from Satonda Island was definitely worth it. We arrived there around 6 am, perfect moment to spend some time and laying on the beach which seemed like ours because no one lives there. The island has been well preserved over the years by the Government. Gili Laba looks outstanding, it is the most enchanting island amongst others in Komodo Islands. If you decide to visit the island, I would suggest not to carry MANTA POINT Manta Point is an area where Manta Rays are often encountered. Divers and snorkellers will recognise this place as it is greatly popular amongst FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 45

46 LEISURE & RECREATION those who loves diving and snorkelling. Manta rays are huge marine creatures that are capable to grow up to 4 meters wide. Although they are vast in size, the sea creature is not harmful to humans. Manta Rays are identified as one of the most extinct animals on earth making this place a must visit location. Divers and marine life lovers have been doing their best to keep them safe from illegal fishing practices. I was very grateful to see them, they beautifully swim in a group (approximately 9 Manta Rays) from one spot to another. A place like Manta Point is a true hidden gem for a diver like me. If you are into sea life, I recommend you to stop by at Manta Point after your tour to see the Komodo Dragon in Loh Liang. Snorkelling and diving can be done on your way back to Labuan Bajo. Although seeing Manta Rays are not guaranteed, you will get a memorable and excellent snorkelling experience. Reefs are laying from only 2 meters to 9 meters depth. There are a number of creatures that you could see during your snorkeling experience such as sharks, eagle rays, giant trevallies, huge clams, turtles, cuttle fish, and several types of sponges. If you are fortunate, you might get an exceptional experience of swimming with the Manta Rays. It s recommended to use a life vest to keep your self-floating if you are not a good swimmer. You can also request one of the boat crew to swim along with you for your safety. It is easier to be rescued if an unexpected incidents occurs. Boats during snorkelling on this spot are usually following you from behind. This is to prevent being drifted far away by the currents. PINK BEACH Upon my arrival on Pink Beach, I saw the charming portraits of Pink Beach on the internet for unique areas around the islands. A trip to Pink Beach is discovering a jewel of Indonesia. The hidden paradise have pink sand which are created from pieces of red coral. However, the truth is a type of amoeba microscopic animals named Foraminifera which produce red or pink light on the reef. The water is very clear, clean, and healthy, makes it always perfect for snorkeling. The corals are multi-coloured and rich, makes snorkels wondering even more what s inside. Once you are there, the water seems to seduce you to jump off the boat and start swimming. Grains of sand was smooth and soft like cotton, sunbathing can be a good choice when you are there. This place makes people do not want to go home or back to their boat. My new friends and I spent a whole day exploring the sea creatures and reefs. Not only that, we also played football and learnt several moves of capoeira. I really enjoyed witnessing the beauty of East Indonesia. RINCA ISLAND Located in East Nusa Tenggara, Rinca is a tumble little island. Often, public are not aware about Rinca, whereas you are more likely to spot Komodo dragons in Rinca Island where there is less impact from tourism, which is perfect! Some weighing in at 300 pounds, komodo dragons can grow up to 10 feet long, are poisonous, and have affected several human fatalities. Komodo dragons are the largest lizards on earth, but do not let their size fool you; Komodo can chase down prey - usually a hapless water buffalo - at 15 miles per hour! Rinca Island attracted the world s attention when five scuba divers were discovered stranded there in The group survived on shellfish and had to fend off the dragons by throwing rocks and dive weights. Rinca is a part of Indonesia s Komodo National Park and has been granted UNESCO World Heritage status. If you find yourself in search of the famous Komodo dragon, avoid the crowds on well-known Komodo Island and stop by at Rinca instead! I N V E S T M E N T OPPORTUNITIES A number of investment opportunities in Komodo islands are available. Infrastructure is one of the key sectors the Government are focusing on. Komodo is officially recognised as a top 10 destination in Indonesia. The Indonesian Government encourages FDI to build more hotels, adequate seaports and collaborate with local people in order to boost economic growth. 46 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

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48 TRAVEL SAFE TRAVELLING SHOULD BE A TIME FOR US TO RELAX, TAKE TIME OUT OF OUR HECTIC SCHEDULES, OR VISIT FAMILIES AND FRIENDS WHO RESIDE IN DIFFERENT CORNERS OF THE WORLD. BY TAKING TIME TO UNWIND AND RECHARGE, THIS CAN GIVE OUR BODY THE REST WE NEED TO STAY HEALTHY WHILE BRINGING THE PEACE OF MIND. Travelling can always be fun if everything falls into place. If you have any of these health issues, make sure they are well taken care of and will not disrupt your travel plans. HEADACHE DR TAUQEER AHMAD Specialist in Neurology Raffles Neuroscience Centre Headache may occur on one or both sides of the head, radiating across the head from one point. Seek medical advice if it worsens over days or weeks, accompanied by persistent nausea and vomiting, or associated with a fever or stiff neck. One can overcome common headaches by maintaining normal sleep and wake patterns. Discuss travel plans with your healthcare provider with advance planning. Do not skip or delay meals and drink more fluids daily. LEISURE & RECREATION for signs of possible contamination through bad hygiene. ASTHMA DR STEVE YANG Specialist in Respiratory Medicine Raffles Internal Medicine Centre Although there is no cure for asthma, it can be managed and treated for normal daily living. There are a few methods to manage your asthma. Before travel, visit your physician regularly to create an asthma management plan. During the visit, ask the correct questions. Seek proper advice and learn selfmanagement skills on asthma. During travel, avoid areas with high exposure to asthma triggers. Also keep calm, assess and monitor the symptoms. Always stay in control of your asthma. PREGNANCY The risk of deep vein thrombosis (usually redness and swelling of one calf) and pulmonary embolism (occasionally breathlessness with chest pain) increases if there is long haul flight for 4 hours or more, and especially if there are other risk For further information, appointment booking and medical enquiries, please contact: PT. Raffles Medika Indonesia Menara Anugrah 1 st Floor, Kantor Taman E 3.3, Jl. Mega Kuningan Lot , Kawasan Mega Kuningan Jakarta Phone: (62 21) Fax: (62 21) Hour Hotline: (65) enquiries_ indonesia@ raffleshospital.com factors present e.g. past history, positive family history, increased body mass index, and dehydration. Wearing tight stockings, drinking fluids in the plane, and calf exercises or walking should be encouraged where possible. The risk of miscarriage is not increased with flights unless you fly very frequently. Most airlines do require a letter from your attending obstetrician to certify your fitness to fly once you are 28 weeks pregnant or more, and will not allow you to fly once you are 36 weeks or more pregnant for singleton pregnancies, and 32 weeks or more for twin pregnancies. DR TONY TAN YEW TECK Specialist in Obstetrics & Gynaecology Raffles Women s Centre DIARRHEA DR AMITABH MONGA Specialist in Gastroenterology Raffles Internal Medicine Centre Diarrhea refers to watery and loose stools that usually occur more than three times a day. This discomfort can last for a few days or weeks resulting in dehydration due to fluid loss. During travel, a bowel infection could be acquired from food or water that has been contaminated or possibly from another person, who is infected. Therefore, avoid filthy environment and untrusted food handlers. Look out 48 UP.DATE ISSUE

49 LEISURE & RECREATION A MAGICAL TRIP TO NEPAL WHAT DO YOU THINK ABOUT WHEN YOU HEAR OF NEPAL? I AM SURE THAT 99% OF PEOPLE WOULD THINK OF MOUNT EVEREST OR THE HIMALAYAS. WHILE IT S TRUE THAT THE HIGHEST MOUNTAIN IN THE WORLD IS LOCATED IN NEPAL, SOME PEOPLE DON T KNOW THAT NEPAL HAS MANY MORE ATTRACTIONS AND OTHER BEAUTIFUL SCENERIES. Irena Communications Coordinator Assistant BritCham It can be said that Nepal is a dream destination for nature lovers, however for some other people visiting Nepal could be a spiritual journey. Nepal is a small, land-locked country located between China and India. With a population of 27 million, the majority of people are Hindu followed by Buddhist. This is largely due to the fact that Siddhartha Gautama or the Buddha was born in Nepal. During my travels to Nepal, most of my activities included visiting the famous Hindu and Buddhist temples. Based on my experience visiting the country the Nepalese respect the values between religions, so conflict between the two has never occurred. The following are the destinations I visited during my two weeks in Nepal in chronological order from arrival. SWAYAMBHUNATH TEMPLE Swayambhunath Temple is an ancient temple located on top of the hill in Kathmandu Valley, west of Kathmandu city. Bagi Buddhist Newars (the inhabitants of Kathmandu Valley) whose mythological history and origin myth as well as day-to-day religious practice. Swayambhunath occupies a central position, it is probably the most sacred among Buddhist pilgrimage sites. For Tibetans and followers of Tibetan Buddhism, it is second only to Boudhanath. I saw a lot of monkeys during my visit at the temple which makes sense to the nickname it s received as Monkey Temple. There are holy monkeys living in the northwest parts of the temple. Although the site is considered Buddhist, the place is revered by both Buddhists and Hindus. Numerous Hindu monarch followers are known to have paid their homage to the temple including Pratap Malla, the powerful king of Kathmandu, who is responsible for the construction of the eastern stairway in the 17th century. Despite the temple complex suffering damage during the April 2015 earthquake, during my visit the buildings and the stupa have already been although with slightly different appearance prior to the earthquake. The stupa consists of a dome at the base and above is a cubical structure painted with the eyes of Buddha looking in all four directions. KATHMANDU DURBAR SQUARE Nepal has several Durbar Squares, the generic name used to describe plazas FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 49

50 LEISURE & RECREATION and areas opposite the old royal palaces in Nepal. It consists of temples, idols, open courts, water fountains and more. In particular, three Durbar Squares in the Kathmandu Valley belonging to the three Newar kingdoms situated three before unification, are most famous: Kathmandu Durbar Square, Patan Durbar Square, and Bhaktapur Durbar Square. Due to the major earthquake which happened in 2015, several buildings in the Square have collapsed. At the southern end of Durbar Square is one of the most curious attractions in Nepal, the Kumari Chok. This gilded cage contains the Raj Kumari, a girl chosen through an ancient and mystical selection process to become the human incarnation of the Hindu mother goddess, Durga. She is worshiped during religious festivals and makes public appearances at other times for a fee paid to her guards. BOUDHANATH Boudhanath or Bauddha by Nepali speakers, is a stupa located in Kathmandu, Nepal. The ancient Stupa is one of the largest in the world. Along with Swayambhunath, it is one of the most popular tourist sites in the Kathmandu area. When refugees entered Nepak from Tibet in the 1950s many decided to live around Boudhanat, that s why when you come to this place you will see a lot of Tibetan monks around the place. The Stupa is also said to entomb the remains of Kassapa Buddha. Too bad during my visit to this place, the earthquake in 2015 badly damaged the Stupa, severely cracking the spire. As a result, the whole structure above dome and the religious relics it contained, had to be removed, which was completed by the end of October The reconstruction began on 3 November 2015 with the ritual placement of a new central pole or life tree for the stupa at the top of the dome. POKHARA On my fourth day in Nepal, I decided to go to Pokhara, the second largest city of Nepal, located 200 km west of the capital. The journey took around 5 hours by bus from Kathmandu, withbreathtaking scenery along the way. The city is also a base for trekkers undertaking the Annapurna Circuit through ACAP region of the Annapurna ranges in the Himalayas. Although claimed as the most expensive city in the country, I still got the inexpensive hotel when I was there. I stayed in a hotel nearby Phewa Lake, overlooking the Himalayan Range. It was surely a magical experience for me. Because of the misinformation, I didn t have a chance to do the trekking activity but I m sure I ll come back for it! POKHARA SHANTI STUPA Still located in Pokhara, Shanti Stupa (Shanti means peace in Sanskrit) is the first World Peace Pagoda in Nepal and seventy-first pagoda built by Nipponzan-Myōhōji in the world. The IT CAN BE SAID THAT NEPAL IS A DREAM DESTINATION FOR NATURE LOVERS, HOWEVER FOR SOME OTHER PEOPLE VISITING NEPAL COULD BE A SPIRITUAL JOURNEY. NEPAL IS A SMALL, LAND-LOCKED COUNTRY LOCATED BETWEEN CHINA AND INDIA. WITH A POPULATION OF 27 MILLION, THE MAJORITY OF PEOPLE ARE HINDU FOLLOWED BY BUDDHIST. pagoda is 115 feet tall and 344 feet in diameter. Standing on top of the Ananda hill, Shanti Stupa. Adds more beauty to Pokhara Valley. It really is a beautiful place as you can see a clear view of the Himalayan range, Phewa Lake and Pokhara city. There are several ways to reach the peace pagoda. There are hiking trails, cycling tracks and the blacked surfaced road to the Stupa. One of the most popular and adventurous hiking trails is done by crossing the Phewa Lake with l boat and climbing uphill through the local villages takes which will take 45 minutes to an hour to reach the top. However, I chose to go uphill by bike and it takes 20 minutes from Phewa lake, and 10 minutes climbing to the pagoda. Being very unfit, I had to stop a couple of times to catch my breath. Make sure to prepare yourself when you want to go here. PASHUPATINATH TEMPLE Since I went to many of the Buddhist temples during my visit in Nepal, the day before I came back to Indonesia I finally went to a Hindu temple. The Pashupatinath Temple is a famous, sacred Hindu temple dedicated to Pashupatinath. Lord Pashupatinath is an incarnation of the Hindu God Shiva as lord of the animals. He is revered throughout the Hindu world, but especially in Nepal, where he is unofficially regarded as a national deity. The temple is located on the banks of the Bagmati River, 5 km north-east of Kathmandu Valley in the eastern city of Kathmandu. It is considered one of the sacred temples of Hindu faith and locals said it s the Vatican of Hindu, the holiest shrine of the Hindus, to worship Shiva. One of the major festivals of the temple is Maha Shivaratri, where over 700,000 devotes from all over the world visit. An interesting fact about the festival is that it s the only day in the annual calendar where the cannabis ban is lifted temporarily during the festival. The only explanation for this is that the ascetics are imitating Shiva, who enjoyed smoking marijuana. 50 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

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52 LEISURE & RECREATION WONDERFUL INDONESIA: 2016, THE NEW EXCITEMENT OF INDONESIA TOURISM SECTOR Chenny OBNi Project Assistant LOCATED IN SOUTH EAST ASIA, INDONESIA IS THE MOST POPULOUS COUNTRY IN THE WORLD, 17,000 ISLANDS LAYING BETWEEN THE PACIFIC OCEAN AND THE INDIAN OCEAN. IT S THE LARGEST ISLAND COUNTRY WITH AN ABUNDANT OF NATURAL RESOURCES. AS AN ARCHIPELAGIC COUNTRY, INDONESIA OFFERS NUMEROUS INVESTMENT OPPORTUNITIES IN VARIOUS SECTORS PARTICULARLY TOURISM. By 2020, 20 million tourists are targeted to come to Indonesia, bringing in foreign exchange of USD$24 billion and making the tourism sector a pillar of the national economy. Minister Arief Yahya said that in 2016, 12 million foreign tourists and 260 million local visitors are expected to travel for leisure in Indonesia. The table below shows that for the past five years, the number of foreign arrivals in Indonesia has grown steadily. According to The Ministry of Tourism, the planned budget for 2016 is US$390 which is almost double compared to the 2015 allocation for tourism sector, as part of its target to attract 12 million foreign visitors. To strengthen its digital marketing outreach to potential tourists, Tourism Minister Arif Yahya held a meeting with Google founder, Sergey Brin, and met the Communications and Technology Minister, Rudiantara in Jakarta. Google agreed to cooperate with Indonesia and promote underwater tourist destinations in the archipelago on Google networks. That includes Google View exposure which focuses on the underwater view of the top five marine destinations in Indonesia such as Raja Ampat in West Papua, Wakatobi in Southeast Sulawesi, Bunaken in North Sulawesi, Komodo Island and in addition to the already established view of Labuan Bajo in East Nusa Tenggara. Another example of the focus on tourism includes the partnership with other countries in terms of promotion and marketing of Indonesia. Marketing partnerships has increased from just 5 countries in 2015 to 12 countries in 2016 and the marketing budget has increased to USD$75 million. The Deputy Tourism for Overseas Promotion, I Gde Pitana, mentioned that the majority of tourists are predicted to come from the 12 countries where the current focus is on, including 1.09 million visitors from Europe, mainly from the UK, France, Germany, and the Netherlands. He also added that Indonesia cooperates with the top wholesaler tour agents such as Thomas Cook and TUI who sell travel package trips to Indonesia worldwide. Another strategy of the Indonesian government increasing the number of foreign tourists is the granting of the visa-free entrance to citizens of 30 countries. The United Kingdom has also joined the list of countries which is exempted from the previous visa requirements. This new policy has been effectively implemented since 1st of July 2015 and this also means that there are now 90 countries that don t need a paid visa to enter and stay in Indonesia for a maximum period of 30 days. With this new policy, Indonesia offers a huge opportunity in the tourism sector. There is growing demand in the tourism sector including hotels, condominium, conference and exhibition venues. The momentum of ASEAN Economic Community also improves trade relations creating more demand for the hotel and leisure industry. Foreign Tourists (in million) *Government target * SOURCE: STATISTICS INDONESIA (BPS) For more information about business opportunities in Indonesia, please contact our Business Development Manager, Shaveen Sharma at shaveen@britcham.or.id 52 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

53 LEISURE & RECREATION BORNEO KALIMANTAN IS THE INDONESIAN PART OF THE ISLAND OF BORNEO WITH THE NORTH SECTION OF THE ISLAND OCCUPIED BY MALAYSIA. BORNEO IS THE THIRD LARGEST ISLAND IN THE WORLD, WITH THE INDONESIAN PART COVERING SOME 580,000 KM 2 THE VAST AREA IS HOME TO ONLY 12 MILLION PEOPLE. The rainforests here are some of the most bio-diverse areas in the world. Balikpapan, located on the east of the island, is called Oil City because most of the major oil and gas companies have offices there. Sepinggan International Airport, near Balikpapan is the primary airport on the Indonesian side with regular flights from Kuala Lumpur and Singapore as well as many other Indonesian cities. On the east side of Borneo you can find the Derawan Islands; a wonderful hidden spot that s paradise on earth. The diving resort is a popular destination amongst the tourists with high quality licensed staff available to take you out and explore the beauty of the ocean. Pulau Kakaban, a lake full of sting-less jellyfish is another great spot to explore the underwater wildlife. Maratua Paradise Resort is a spectacular hotel on Maratua Island with some great reviews on Trip Advisor. The best place for a quiet getaway with plenty of options in terms of diving opportunities. Fisheries Eco Villa is another possible location to stay during your time in paradise on the Derawan Islands. On east Kalimantan as you go from South to North, or east to west, you see Islam becoming a minority and the banjars becoming smaller ethnic pockets. Dayak civilization is divided A HIDDEN PARADISE into tribes which hold their domains across the region. In all but the furthest reaches of the rivers, the Dayak has modernised and urbanized. Apo Kayan is a remote highland plateau inhabited by the Dayak tribes. The Mancong and Tanjung Issui Villages are inhabited by Dayak Banuaq living on a very traditional long-house. Tanjung issui has a very well preserved long house, remodeled on the inside as a museum and hotel in the back with great rooms and a lovely view. The two story long house is inhabited by families and there are regular dance performances- a great sight to see. Further up Mahakam River are the Dayak Tunjung and Kenyah tribes where long eared women live. Next to Tering is Melak Village, the location of Black Orchid garden, it is called Gersik Luai it is a good 20 or 30 minute drive deep into the wilderness. Black Orchid season is late spring through autumn but you can see other species throughout the year. Kutai National Park (KNP) is a lowland tropical forest in East Kalimantan. KNP has an area width of 198,629 hectares. Its bio-diversity and vegetation makes it a great destination for locals as well as foreign nature lovers and researchers. At present, about 900 types of vegetation in the park have been identified. For local students in its surrounding areas IN CONCLUSION KALIMANTAN AND PARTICULARLY THE EAST SIDE OF THIS BEAUTIFUL ISLAND HAS A LOT TO OFFER. FROM HUGE SHOPPING MALLS TO THE TRIBES OF THE DAYAK BANUAQ THE PLACE BOASTS A DIVERSE AND INTERESTING CULTURE. Chris Cook Communications Assistant Intern KNP is a facility to learn about the nature. Foreign visitors are charged with an entry fee of Rp 15,000. In terms of sporting activities, East Kalimantan offers a range of different fun sports to take part in. For golf lovers there is Padang Golf Sepinggan in Balikpapan which is just one amongst the four of the courses available here. There are biking trails in Balikpapan and also Bontang which go through wide ranges of landscape, from the woodlands to the sand dunes. A trip to East Kalimantan s Kumala Island tourism park is a great way to spend your holiday. Being located on the Mahakam River this increases its exotica and impression when enjoying the various facilities provided. There are a number of activities available including the Sky Tower where visitors could see the whole island and Tenggarong city from the 78 meter tall tower. To take a trip around the island, tourist cars are provided for Rp 3,000-Rp 4,000 per person for each trip. If less than 5 passangers, this car must be rented for Rp 20,000. It is easier and closer to reach Tenggarong city from Samarinda. In conclusion Kalimantan and particularly the east side of this beautiful island has a lot to offer. From huge shopping malls to the tribes of the Dayak Banuaq the place boasts a diverse and interesting culture. There are endless amounts of wildlife to see and beaches to relax on. Due to the location, the Derawan Islands haven t received many tourists but currently the tourism is on the rise as the diving community increases and an improvement in transport makes travelling to the islands much easier. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 53

54 LIFESTYLE & HEALTH The Fitness Industry AN EMERGING MARKET I VE BEEN LIVING IN JAKARTA FOR THE PAST 8 YEARS AND I HAVE SEEN THE INDUSTRY GROW FROM STRENGTH TO STRENGTH, BUT NOT ALWAYS FOR THE RIGHT REASONS. This article was written by Ron White; who has been a personal trainer for over 30 years,he has worked under Doctors, physical therapists and chiropractors. Ron s passion for fitness comes from his love of playing sport, he lives by the motto of you get fit to play sport. Bali Health improves the health, productivity and morale of a company s workforce. Unique, proven exercise and diet programs generate major healthcare savings. I remember going to one of the first trendy fitness venues, where there were more staff than customers. This was at off peak hours of course but then I made the mistake of going at peak hours, where all staff were occupied with clients looking to get the body of a Greek Adonis. What confused me was the lack of machines available during the peak hours and the Personal Trainers all had the same generic programs, which involved going between Single stations and Cardio and the clients never achieving their own personal goals after completing the 10 sessions they had purchased. It s not really the fault of the personal trainers, the blame rests with the managers who drive them to reach sales based goals and targets. It s certainly a different mentality in a western society, where experienced trainers are focused on getting results which leads to client retention and loyalty. If any of the following sound familiar it may be worth searching for a new Personal Trainer ONE: He never records anything. If he cannot produce any data on how you have made progress outside of weight on scale, he is not up to par. TWO: He is more into entertaining you than training you. Jumping from a Bosu ball to a bench, with no structure to your workout. THREE: His program design is boring with very little variation. It should instead be a function of your goals. Four: He talks to you about random stuff while you are doing your set. He should instead be monitoring your rep count and tempo pace. FIVE: He tells you about his personal problems. Hey, you pay him to get you in shape, not to be his personal counselor. SIX: He uses his cell phone to take calls, make calls, or text while you are working out. You are paying for his time and attention! He has to resemble the look of a Personal Trainer, Look the part to sell the part, you wouldn t go to a dentist who has rotten teeth! Ask him questions about his experience and even better if he has testimonials of previous clients, with positive results! If he has met the above criteria have a look at the structure of his program if it relates to the F.I.T principal, then you re onto a winner. FREQUENCY; the amount of time a person can commit in a weekly basis to reach their goals (this consist of 4-5 times per week) INTENSITY; the amount of effort you are willing to put into your workout, the feeling where your PT is your worst enemy, but in a nice way. TIME; 1 hour per session should be more than enough, unless the gym is busy of course, but if you find yourself waiting in between sets and reps, then this is a sign where your trainer lacks the knowledge and understanding of basic human Kinetics. Once you have these 3 principals in place then the rest is easy, right? Well technically yes but we are forgetting the most important thing when starting your fitness journey, diet! The average person s conception of diet is food reduction and that s the dangerous part, this of course will work on the initial phase of your program, but generally after 6 weeks the body will start to plateau. Weight loss will cease and over the period of just a few weeks you will start to gain weight and feel physically and mentally flat. There is a simple explanation for this, all you have done is play around with the bodies metabolism by reducing the calories you are starving your body of energy. SO WHAT SHOULD I DO? Start by putting good nutritious food into your body, this doesn t mean fueling your body with Sugar, another Diet myth I look at people in the gym with all these Isotonic drinks, with more than enough Sugar to cover the R.D.A (recommended daily allowance). Of course you need to replenish your energy stores, but leave that until after your workout and replenish them with something nutritious like a banana. My suggestion is to eat protein with every meal and also snacks between meals, this allows the metabolism to keep working and will speed up the process of weight loss. Most importantly consume water, your body is made up of 70% of it, starving the body will starve your vital organs, which can lead to other complications. Try to consume 5% of your bodyweight, i.e. 80kg = 4 liters. 54 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

55 EVENTS Giving Kids A Sporting Chance + Nusantara 7s On the 27 th February as part of the Rubypass.com Nusantara 7s Competition, BritCham s Giving Kids a Sporting Chance held a training session for school children across Jakarta. The session took place during the largest Rugby 7s tournament in Indonesia- held at Nusantara Polo Club Field, Jagorawi. 120 kids attended from 5 elementary schools and 4 junior high schools. For many of these kids, this was the first time they held a rugby ball or even seen the sport being played. There were laughs, smiles and sweat from everyone. 4 rugby coaches who came all the way from Malaysia and conducted the session in a professional yet fun approach. The Jakarta Komodos (Sponsored by BritCham Indonesia) Junior Women s Rugby Team ended a three-year wait SATURDAY, 27 FEBRUARY 2016 NUSANTARA POLO CLUB for tournament success with a victory at the competition. After years of hard work on the training paddock and playing in Jakarta schools games, this was the first time that most of the young ladies from the Jakarta Komodos had come up against older players said Head coach Stephen Barber. The winners from the university category was Universitas Negeri Yogyakarta with the overall winners of the tournament being the Jakarta Benteng Rugby Club. Thank you to the Malaysia Rugby Union for sending out four referees especially for this event. The tournament couldn t have gone ahead without the support from the sponsors Rugby Pass, Singapore Rugby 2 s and APAC Assistance. Also supporters Starbucks, Fez by Aphrodite Bar, Coca Cola Amatil Indonesia and Now Jakarta. Lots of fun and laughter had by all! The Bandung rams vs Jakarta Intercultural School shaking hands at the end of the game Group photo at the end of the training session. 120 kids from 9 schools across Jakarta took part in the event. The Jakarta Banteng team watching from the side line against UNJ Komodo women vs Universitas Pendidikan Indonesia Rugby coach Rendy Yusuf introducing the kids to the first training activity of the day Improving the passing techniques- a key skill in the game of rugby FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 55

56 EVENTS EIBN Joint Gathering WEDNESDAY, 20 JANUARY 2016 INTERCONTINENTAL HOTEL, JAKARTA The EIBN Joint Gathering event took place on the evening of Wednesday 20 th January at Rasa Restaurant InterContinental Jakarta MidPlaza. Over two hundred people attended covering all business sectors with chambers from Germany, Netherlands and France. The Business Chambers present at the event included IFCCI, EKONID, EUROCHAM, BRITCHAM, INA. Jan Rönnfeld (Managing director of EKONID) introduced the event, welcoming all members to the evening and encouraged the opportunity to meet new possible business connections. The gathering was a huge success with a lot of networking taking place. 56 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

57 EVENTS BREAKFAST BRIEFING WITH APINDO: In Support of a More Conducive Regulatory Environment THURSDAY,18 FEBRUARY 2016 MANDARIN ORIENTAL JAKARTA BritCham s first event in 2016 was a breakfast briefing in cooperation with the Employers Association of Indonesia (APINDO) on 18 February 2016 at the Mandarin Oriental Jakarta. The briefing was opened with a short talk from Executive Director Chris Wren, and continued with a presentation by Shinta Widaja Kamdani, the Chair of APINDO. Shinta Kamdani is the CEO of Sintesa Group, an Indonesian company with 17 subsidiaries which operates in the consumer and industrial product in property and energy sectors. Highlights of the presentation included the current implemented regulations of the government which could attract investors to expand in Indonesia. The Indonesian government is planning to increase their investment target, as it contributes to about 35% to Indonesian income. In 2016, about 59% of the investment are targeted in Java and 41% to be outside of Java. The government is also targeting 65% to be fulfilled by foreign investors and 35% by domestic investors. The high target of investment could only be reached by a supporting regulatory environment. Shinta said that even though the 3 hours licensing process still needs evaluation it is a step in the right direction to attract large scale investment. As an opening of the year, the briefing was very fruitful and attended by around 45 participants. Thanks to Cushman & Wakefield-our briefing sponsor. SHINTA WIDJAJA KAMDANI (CEO of Sintesa Group, the Speaker of the Event) CHRIS WREN (Executive Director of BritCham) ADRIAN SHORT (Chairman of BritCham) MAYA BUDIMARYANTI (PT Finansi Jaya Consultindo) DAVID BRAITHWAITE (Q Energy) SHINTA WIDJAJA KAMDANI (CEO of Sintesa Group) and CHRIS WREN (Executive Director of BritCham) in Q&A session ADRIAN SHORT (Chairman of BritCham) giving a Certificate of Appreciation to SHINTA WIDJAJA KAMDANI (CEO of Sintesa Group) Participants at the event FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 57

58 EVENTS Business and Social Gathering THURSDAY, 28 JANUARY 2016 CROWNE PLAZA, JAKARTA This month s BSG was held at the Turkish bar/ restaurant; Maroush at the Crowne Plaza Jakarta. There was a great turnout of 60 people enjoying the atmosphere amongst a range of directors across all industries. BritCham alongside our sponsors; Rentokil Initial and the Maroush were able to provide a raffle draw for participants of the event- with a generous selection of 12 prizes up for grabs. The lucky winners received vouchers for Starbucks, Pizza Express, Maroush Dining, a stay in Merlin Park Hotel and also at the Art Hotel. RAFFLE SPONSORS: CASH SPONSORS: ADRIAN SHORT (Chairman of BritCham), giving a raffle prize to ELLIOT HAWKINS (Cushmand and Wakefield) The audiences RICHARD MICHAEL (BritCham Board Member) and ADRIAN SHORT (Chairman of BritCham) David Ramsay (Pegasus BRMS) and Colin Harker (Pegasus BRMS) I.D REYNOLDS, MALCOLM LLEWELLYN - BritCham Board Member, CHRIS EDWARD WURANGIAN (Hanny Wolfrey, JUNED RAHADIAN SHOU BAKU (Hoshino Group), TUKUKI HOSHINO (Hoshino Group), AMY (Hoshino Group) and RAVENIA JULIA (Hoshino Group) MAHESH, GRAHAM GARVEN, BritCham Board Member 58 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

59 EVENTS Business and Social Gathering THURSDAY, 24 FEBRUARY 2016 LE MERIDIEN HOTEL, JAKARTA February s BSG was held at the atmospheric Al Nafoura, Le Meridien Hotel Jakarta. 56 people attended the event both members and nonmembers. The BritCham team said a farewell to Daniel Hankinson (Honary Treasurer) who s leaving Jakarta for new adventures in Hong Kong. We welcomed new and familiar faces, connections were made and a good time was had by all. RAFFLE SPONSORS: BritCham team taking last picture with Daniel Hankinson Students of International Internship, MARGDALENA BIRA (Santa Fe Relocation Services), and JACK MCNAUGHT (International Intership) DANIEL HANKINSON (HSBC Honorary Treasurer of BritCham BoM), CHRIS WREN (Executive Director of BritCham), ADRIAN SHORT (Chairman of BritCham) JAMES BRYSON (HB Capital Indonesia) and OLIVIA TANTI (Business Manager of BritCham) The crowd BritCham s Board of Members (Top Bottom): CHRIS WREN (Executive Director), ADRIAN SHORT (Chairman), NICK HOLDER (BoM), JOHN ARNOLD (BoM), DANIEL HANKINSON (Hon. Treasurer), JAMES BRYSON (Hon. Secretary), MALCOLM LLEWELLYN (BoM) VANESSA IZKA VIRGINIA (Global Expandia), ELSYE YAW (Global Expandia), NURMALA MARTIN (European Union Indonesia Trade Cooperation Facility), DANIEL NICHOLLS (Head of the EU Desk at BKPM) FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 59

60 EVENTS OBNI WEBINAR: Doing Business in Indonesia: The Biggest Economic Power in ASEAN! A Country too Big to Ignore? WEDNESDAY, 10 FEBRUARY BritCham, in partnership with UKTI London and Indonesia Investment Coordinating Board (BKPM), recently conducted a webinar about Doing Business in Indonesia. This is one in a series of webinar sessions which attempts to elucidate the export and investment opportunities in Indonesia. It was hosted by key presenters, OBNi Project Director Karen Butterfield, Executive Director of BritCham Indonesia, Chris Wren, and Head of EU Desk at Indonesia Investment Coordinating Board (BKPM), Daniel Nicholls. Undoubtedly, the webinar was a huge success. Over 250 registered participants that is double the attendees of last year including companies from 21 different countries- the majority British. UKTI London have run 400 webinars this year and it was during the GREAT Indonesia the biggest economic power in ASEAN webinar that the 15,001st attendee tuned in. The audience showed their high interest in expanding their business in Indonesia and it was reflected during the Q&A session. Thanks go to UKTI and Indonesia Investment Coordinating Board. For further information, and if you are interested in becoming a speaker at the webinars please contact Karen on or uksme@ britcham.or.id TOP: CHENNY (Project Assistant of OBNi), DANIEL NICHOLLS (Head of EU Desk at BKPM), KAREN BUTTERFIELD (Project Director of OBNi), CHRIS WREN (Executive Director of BritCham), and LULU (Project Assistant of OBNi) BOTTOM: DANIEL NICHOLLS (Head of EU Desk at BKPM), KAREN BUTTERFIELD (Project Director of OBNi), and CHRIS WREN (Executive Director of BritCham) Testimonials from participants: Concise - relevant - knowledgeable and honest appraisal of opportunities and challenges. Very clear speaking form the presenters, to which gave a good understanding to the region. Detailed and clear information about the market, which really does help when making strategic marketing decisions as regards to investing in the region. Full of very relevant information by people clearly experienced and enthusiastic about the region. Good overview of the market and how to learn more. IN PARTNERSHIP WITH: 60 UP.DATE ISSUE COPYRIGHT 2016 THE BRITISH CHAMBER OF COMMERCE IN INDONESIA

61 MEMBER S ANNOUNCEMENTS CPA Australia Mayapada Tower 1, 7 th Floor, Suite 07 01C Jl. Jend. Sudirman Kav 28. Jakarta Tel Fax Mr. Arya Lukito Sudjarwo Business Development Manager arya.lukito@cpaaustralia.com.au CPA Australia are counted amongst the world s elite accounting and finance professionals with over 155,000 members across 118 countries. The CPA Program is internationally focused with segments such as Global strategy & Leadership. Three times as many CPAs work abroad as members of the next largest Australian professional accounting body. Drs. Hanny, Wolfrey & Rekan Jln. Raya Gubeng no. 56 Surabaya, East Java Indonesia Tel , , Fax Mr. Hanny Wurangian Managing Partner hannywurangian@ kap-hwr.com Mr. Fritz William Accounting Information System and Tax Supervisor fritzwilliamw@kaphwr.com Mr. Chris Edward Audit and Accounting Procedures Senior chris.edward@kaphwr.com Our firm provides financial services and consultancy to help you running your business. With our experience in the industry and the support of professional partners and staff since 1977, we will provide various services, namely Auditing, Management advising, Tax consulting, Accounting system designing, and other Accounting services are our specialisations. Pernod Ricard Indonesia Tempo Scan Tower Lantai 21 Jl. H.R. Rasuna Said Kav. 3-4 Jakarta Tel Fax Mr. Edhi Sumadi Managing Director edhi.sumadi@pernod-ricard.com Pernod Ricard is the world s leader in the Premium spirits industry. It operates in more than 85 affiliates and 100 production sites. Pernod Ricard has chosen to focus on sustainable growth through a large portfolio of international brands and a high-end strategy, known as Premiumisation. FACILITATING TRADE & INVESTMENT BETWEEN INDONESIA AND BRITAIN 61

62 MEMBER S ANNOUNCEMENTS PT. Howden Insurance Brokers Indonesia Mayapada Tower, 8 th Floor Jl. Jend Sudirman Kav.28, Jakarta 12920, Indonesia Mr. Willy Ignatius President Director willy.ignatius@ id.howdengroup.com Mr. Armand Wibisono Marketing Director armand.wibisono@ id.howdengroup.com Ms. Violetha Manurung Senior Vice President violetha.manurung@ id.howdengroup.com Tel Fax Howden Indonesia is a fast-growing and ambitious insurance broker operating under Hyperion Insurance Group. Howden comprises certified and experienced workforce with extensive knowledge of the risks inherent with Indonesian industries including Human Life & Health, Corporate & Industry Risk, Financial & Professional Risk, and Small, Medium Enterprise & Affinity Risk. PT Now Health International Indonesia Indonesia Stock Exchange Building Tower II, 17 th Floor Jl. Jend. Sudirman Kav Jakarta Indonesia Tel Fax Ms. Christine Onggowati President Director Christine. Onggowati@ now-health.com Ms. Jane Suriaatmadja Business Development Director Jane.Suriaatmadja@ now-health.com Mr. Ralph Tam Commissioner Indonesia (Managing Director of Now Health International Asia Pacific Limited) Now Health International is a specialist international health insurance provider. At the heart of its offer are benefit-rich products combined with its aim to provide unparalleled service. All customers are covered anywhere in the world, excluding the USA, with an annual maximum limit of USD 3m. The company leads the way with its award-winning service and guarantee on how long it takes to complete tasks like processing claims. Now Health s website is also designed to make it simpler to manage international health insurance. It s complete online solution means that customers can access their plan documents, track their claims and add members. VISIT #PAYONLINENOW

63 For further information about the British School Jakarta, please contact the Admissions office at Tel: (62-21) Fax: (62-21)

64 INVESTING IN YOUR PEOPLE INTRODUCING MICHAEL PAGE HUMAN CAPITAL CONSULTING With 154 offices in 35 countries, Michael Page has more than 30 years of global experience, providing human capital consulting services to some of the world s leading brands. Now operating in Indonesia, we are well-placed to provide our clients with the best practice advice when it comes to talent sourcing and retention strategies. We leverage our global knowledge and relationships to bring cutting edge insights and knowledge to our clients, statutory bodies and educational institutions with a specific focus on the following practice areas: Banking Finance & Accounting General Management Human Resources Legal Sales & Marketing Supply Chain & Manufacturing CONTACT US Please contact Olly Riches, President Director at ollyriches@michaelpage.co.id to find out how we can help you better manage your greatest resource: your people. PT Michael Page Internasional Indonesia One Pacific Place, Level 11 Sudirman Central Business District Jl. Jend. Sudirman Kav Jakarta 12190, Indonesia P F Get Connected. Stay Ahead. #15425 Specialists in human capital consulting