i  

TABLE OF CONTENTS

CONTENTS  ..............................................................................................................................................  i  

WELCOMING  NOTES  .............................................................................................................................  1  

VENUE  PROFILE  .....................................................................................................................................  3  

INDONESIA  AT  A  GLANCE  ......................................................................................................................  4  

JAKARTA  AT  A  GLANCE  ..........................................................................................................................  4  

ECONOMIC  OUTLOOK  .........................................................................................................................  12  

SOCIAL  CULTURAL  ASPECT  ..................................................................................................................  15  

INFRASTRUCTURE  ...............................................................................................................................  20  

GENERAL  FACTS  OF  INVESTMENT  IN  INDONESIA  ...............................................................................  24  

ABOUT  PRASETIYA  MULYA  AND  PRASETIYA  MULYA  EXECUTIVE  LEARNING  INSTITUTE  .....................  29  

Prasetiya  Mulya  ..................................................................................................................................  29  

Prasetiya  Mulya  Executive  Learning  Institute  .....................................................................................  33  

AFLP  PARTICIPANT  ..............................................................................................................................  41  

PROGRAM  OFFICER  .............................................................................................................................  43  

EMERGENCY  PHONE  NUMBER  ...........................................................................................................  44  

REFERENCES  ........................................................................................................................................  45  

APPENDIX  ............................................................................................................................................  46  

1

WELCOMING NOTES

Prasetiya Mulya Executive Learning Institute

Dear executives,

We welcome you to the Asian Financial Leaders Programme (AFLP). As the

partner of Singapore Management University, it is our honour to conduct the

segment of AFLP in Indonesia .

As you are the executives who may have exposures on global and regional

business, we are very sure that at a certain extent you have already had the

knowledge on financial business in Indonesia. This segment is designed and

conducted not only to provide you with more data and information on the

financial industry but also to introduce you to the real situation, opportunities

and challenges which may not reflected on the numbers. We have invited

prominent resource persons to interact with you. We also have arranged some

programs to relate you to the leaders in Indonesian financial industry.

We do hope you will enjoy this program and obtain a substantial benefit from it.

Warm regards,

Deddi Tedjakumara

Executive Director

Prasetiya Mulya Executive Learning Institute

2

Singapore Management University

Welcome Message

A warm welcome to all of you to Module 3A of the Asian Financial Leaders

Programme (AFLP), held at the Prasetiya Mulya Business School (PMBS), Jakarta,

Indonesia.

We are honoured to partner with PMBS to conduct the 3-day programme

focusing Southeast Asian Markets. This module aims to provide a

comprehensive overview of the operating and regulatory environment of

emerging South East Asian countries. A good understanding of the operating

and regulatory environment is critical for financial institutions to operate

profitably and successfully in emerging financial markets. Country experts will

discuss the major trends developing in these markets and the associated

operating risks. These risks are related to political dynamics, demography,

religious tensions and transparency of regulatory frameworks.

I wish you a rewarding journey of learning and achievement in this 3-day

programme in Jakarta, Indonesia.

Warm regards,

Benedict Koh

Associate Dean

Lee Kong Chian School of Business

Singapore Management University

 

 

 

3  

VENUE PROFILE

Prasetiya Mulya University

*the session will be conducted in Room 2101 - 2103

Contact Information

Address: JL. RA. Kartini (TB Simatupang),

Cilandak Barat Jakarta Selatan, Jakarta 12430

Indonesia.

Phone: (+62 21) 751-1126, 750-0463

Fax: (+62 21) 7500 460

Prasetiya Mulya was founded in 1980 by a group of prominent Indonesian business

leaders. The first MBA program in Indonesia was then established in 1982 with

assistance from prestigious international scholars and experts. Today it remains the

leading private business education program provider in the country, upholding the

original aims of the founders to offer the highest standards in business management

education and training. Being founded by members of the country's business

community has ensured an effective balance of comprehensive curriculum

between theoretical knowledge and practical application. Prasetiya Mulya is now

benchmarking itself among the leading business schools by undergoing the AACSB

accreditation process.

Prasetiya Mulya Business School has over thirty years of experience in teaching

graduate business courses in preparing the next generation of Indonesia's

executives and entrepreneurs. It is exclusively taught by Prasetiya Mulya's leading

faculties who have extensive professional experience as well as academic

accolades giving students the opportunity to learn from renowned figures in a given

field. For graduates wishing to build upon their business knowledge,

Prasetiya Mulya offers full time (MM Regular) and part time

program (MM Business Management and Strategic Innovation)

for those studying alongside full time employment.

 

 

4  

INDONESIA AT A GLANCE

As the largest country in Southeast Asia, a diverse archipelago nation which cover

more than 300 ethnic groups, Indonesia has shown impressive economic growth

since overcoming the Asian financial crisis on the late 1990s. The country’s gross

national income per capita has steadily risen, from $560 in the year 2000 to $3,630 in

2014. Today, Indonesia is the world’s fourth most populous nation, the world’s 10th

largest economy in terms of purchasing power parity, and a member of the G-20. It

has made enormous gains in poverty reduction, cutting the poverty rate to more

than half since 1999, to 11.2% in 2015.

Indonesia’s economic planning follows a 20-year development plan, spanning from

2005 to 2025. It is segmented into 5-year medium-term plans, called the RPJMN,

each with different development priorities. The current medium-term development

plan – the third phase of the long-term plan -- runs from 2015 to 2020, focusing,

among others, on infrastructure development and improving social assistance

programs in education and healthcare.

JAKARTA AT A GLANCE

Brief History

Spanning an area of 661 square kilometers (255 sq mi) Jakarta is

the largest city and capital of Indonesia. Jakarta is an

autonomous province consisting of five municipalities, namely:

Central Jakarta, North, West, East and South Jakarta and the

District of Pulau Seribu or the Thousand Islands.

 

 

5  

Since Indonesia’s Independence in 1945, Jakarta’s population grew by leaps and

bounds, new suburbs emerged, absorbing the one-time surrounding rural villages or

kampungs. The metropolitan capital spread to all directions, first adding the

Kebayoran area, then Pondok Indah, in the south, but now growing east, north,

further south and west, so that today, Jakarta has become one almost seamless city

with the adjoining towns of Bogor, Depok, Tangerang, and Bekasi. The greater

Jakarta area is, therefore, known following its acronym: Jabodetabek.

Fortunately, town planning in this sprawling metropolis is such that each suburb is

self-contained, complete with facilities like hospitals, schools, universities, shopping

centers, and religious buildings that are all available within easy reach in one

neighborhood.

Nonetheless, since the thousands of offices in high rise buildings are still centralized in

the city, the millions of commuters who travel at peak hours in the morning and in

the evenings from and to the suburbs, cause daily traffic snarls that are almost

impossible to overcome, even with the construction of wide toll roads, overhead

roads and traffic tunnels.

Climate

Jakarta is a tropical, humid city, with annual temperatures ranging between the

extremes of 24 and 34 °C and a relative humidity between 75 and 85 percent. The

average mean temperatures are 26 °C in January and 28 °C in October. The annual

rainfall is more than 1,700 mm. Temperatures are often modified by sea winds.

Jakarta lies on a low, flat alluvial plain with historically extensive swampy areas; the

parts of the city farther inland are slightly higher. It is easily flooded during the rainy

season.

 

 

6  

Currency Information

The currency of Indonesia is the Rupiah, usually marked as Rp or IDR and freely

convertible. Coins start at Rp.100,- up to Rp.1.000,- and banknotes come in

denominations of Rp.1.000,- , Rp.5.000,- , Rp.10.000,- , Rp.20.000,- , Rp.50.000,- , and

Rp.100.000,-. At the time writing, US$ 1 is equal about Rp.13.207,50. Major

international credit cards (Visa, MasterCard, American Express, and JCB Card) are

widely accepted in Jakarta. Automated Teller Machine (ATMs) are found

throughout the city.

Culture

Jakarta has its own special Betawi culture, which the influences reached the city’s

shores over the centuries. Along process of selectivity borrowing and uniquely

blending Chinese, Arab, Portuguese, and Dutch elements with native ingenuity has

produces the colorful. The word “Betawi” is derived from Batavia, the old name of

the capital during the Dutch administration.

Traditional Foods and Drinks

 

 

7  

Jakarta, as its original people called as Betawi, has Kerak Telor as its traditional food.

Kerak Telor is made from glutinious rice fried with duck egg, and topped with

shredded coconut, fried shallots and dried shrimp. Duck egg is considered to be

more flavorful over chicken eggs, which I have to agree. Kerak Telor vendors are

most prominent during the annual Jakarta fair and considered a popular choice for

visitors. In the past, Kerak Telor was also considered to be food for the wealthy and

served during parties.

Ketoprak is another typical street food in Jakarta but has also spread across Java

with its popularity. The vegetarian Ketoprak consists of tofu, lontong (compressed

rice cake), bihun (angel hair), boiled egg, bean sprouts and cabbage, doused in

peanut sauce and topped with fried shallots and kerupuk (deep-fried flavored rice

crackers). You may also request for the level of spiciness you desire in each

individual Ketoprak in most places, with a choice of mild, medium or burn your

tongue off.

There’s also Gado-gado. Gado-Gado is an Indonesian salad with a rich mix of

boiled vegetables such as potato, string beans, corn, bitter gourd, cabbage,

spinach along with tofu, tempeh and hard-boiled egg all mixed in peanut sauce.

Kerupuk are also sometimes added in. The peanut sauce for Gado-Gado has Terasi

(dried prawn paste) as one of its common ingredients.

Besides foods, there are several signature traditional drinks in Jakarta.

 

 

8  

These two drinks are best served cold. First, Cendol is a traditional dessert with

coconut milk, jelly noodles made from rice flour with green food coloring (usually

derived from pandan leaf), shaved ice, and palm sugar as the basic ingredients.

Sometimes, it served with additional topping, such as red beans, glutinous rice, grass

jelly, creamed corn. Next is Es Doger. It is coconut milk based shaved ice cold

beverages with pinkish color and often served as a dessert. It contains some

ingredients, such as Cincau, Tape, Kolang-Kaling, and Coconut. This drink commonly

sold by travelling vendor carts in major Indonesian cities.

In addition, there are also several drinks which are most delicious when consumed

while it is hot. Wedang Ronde is one of the most popular traditional beverages

made by hot ginger water and Ronde. Ronde is special dough of mixing corn flour

and brown sugar in round shape with crushed peanut inside. Some people mix

Wedang Ronde with cincau, bread slice in square shape and fried peanut.

Interesting Places in Jakarta

• Jakarta Central Area

SCBD or Sudirman Central Business District is known as Jakarta central Area. It is

developed by PT Danayasa Arthama TBK and was founded in 1 April 1987. The

business park occupies 45 hectares of land, which divided into 25 lots/parcels. 13

hectares of the complex are allocated for road and parking lot. There are a lot

of important buildings in SCBD such as Indonesia Stock Exchange Building, Artha

Graha Building and Equity Tower. Besides office building, there are also some

residential tower, mall, and hotel for accommodation.

 

 

9  

• Malls

• Grand Indonesia Shopping Town

Jalan MH Thamrin No. 1

Plaza Indonesia Shopping Centre

Jalan MH Thamrin Kav 28-29

Plaza Senayan

Jalan Asia Afrika No. 8

Pondok Indah Mall

Jl Metro Pondok Indah

Gandaria City

Jl Sultan Iskandar Muda

Pacific Place

Jalan Jend. Sudirman Kav. 52-53

 

 

10  

• Museums and Point of Interest

National Museum Fatahillah Square Ragunan Zoo

Jl. Merdeka Barat no. 12

Tuesday – Friday: 08.00-16.00

Saturday – Sunday: 08.00-17.00

*Closed every Monday and public holiday

Admission:

IDR10,000 for foreign tourist

Jl. Taman Fatahillah no. 1

Tuesday – Thursday: 08.30-14.30

Friday : 08.30-11.30

Saturday: 08.30-13.30

Sunday: 08.30-14.30

*Close every Monday and public holiday

Admission:

IDR 10,000 for foreign tourist

Jl. Harsono no. 1

Tuesday – Saturday: 08.30-14.30

Sunday : 06.00-16.00

*Close every Monday and public holiday

Admission:

IDR 10,000 for foreign tourist

National Monument Wayang Museum Ancol Dreamland

Silang Monas, Central Jakarta

Monday – Sunday: 08.30-17.00

*Closed on every Monday at the end of the

month

Admission:

IDR 7,500 for foreign tourist

Jalan Pintu Besar

Tuesday-Friday: 09.00-15.00

Saturday-Sunday: 09.00-20.00

Admission:

IDR 10,000 for foreign tourist

Jalan Pantai Indah

Weekdays : 11.00-18.00

Weekend :10.00-20.00

Admission:

IDR 10,000 per person and required additional charge for each of entertainment

 

 

11  

Sunda Kelapa Old Port Taman Mini Indonesia Indah

Jalan Maritim Raya No. 8

Available all day

best view in the evening

Admission:

Free of charge

Jalan Raya Taman Mini

Monday - Sunday: 07.00-21.00

Admission:

IDR 10,000 for foreign tourist

• Hotels

As a developing city, there are a lot of hotel

in Jakarta for accommodation. Hotel in

Jakarta vary from one to five stars hotel with

different prices at each level. Here are the

list of several hotels in Jakarta:

Five Star Hotels:

• Mandarin Oriental

Jakarta

• JW Marriot Hotel

• Hotel Indonesia

Kempinski

Four Star Hotels:

• Century Park Hotel

• Millenium Hotel

• Hotel Borobudur

Jakarta

Three Star Hotels:

• Swiss-Belinn Airport

• Ayaka Suites

• Ibis Jakarta

 

 

 

12  

ECONOMIC OUTLOOK

Below are summary of major factors to consider before opening a business venture

in Indonesia.

-­‐ 2014 Gross Domestic Product (Purchasing Power Parity): $2.676 trillion*

-­‐ 2014 Gross Domestic Product (Official Exchange Rate): $ 888.5 billion*

-­‐ 2014 Income per Capita (Purchasing Power Parity Estimate): $10,517*

-­‐ Bank Indonesia Rate (dated June 16th, 2016): 6.5%**

Year Real GDP Growth*** Inflation (At the end

of each year)**

Unemployment (At the end of each

year)**

2009 4.60% 2.78% 7.41%

2010 6.20% 6.96% 6.80%

2011 6.50% 3.79% 6.32%

2012 6.20% 4.30% 5.92%

2013 5.62% 8.38% 6.25%

2014 4.97% 8.36% 5.9%

2015 4.74% 3.35% 6.2%

2016 (projection)****

5.3% 4.7% 5.2-5.5%

Source: *World Bank, **Bank of Indonesia, ***Trading Economics, ****State Budget Assumption

 

Indonesia managed to grow at more than 6% per year from 2010 through 2012 and

recently slowed down to below 5% in both 2014 and 2015. The newly elected

president, Mr. Joko ‘Jokowi’ Widodo’s made significant change in the State Budget

by reallocating fuel subsidy budget to infrastructure, health, and social assistance

programs. This is expected to fuel growth for the upcoming years, considering weak

global economy will cause export and investment to remain low.

 

 

13  

In 2015, some major macroeconomic events heavily affected domestic growth.

These included the decline of China’s growth; a persistent downtrend of commodity

prices; and a lower than projected world growth. All of these factors–together with

the failure of public spending to take the role of growth booster–contributed to the

sluggish growth in 2015. Nevertheless, the rupiah was traded at its weakest level in

the late September 2015, second only to the monetary crisis of 1998, adding up to

the nervousness of Indonesians in regards to the nation’s economy prospect. In

addition, to ease capital outflow and selling pressure on rupiah, Bank of Indonesia

decided to sustain the interest rate for the whole year, despite sufficient room for

policy relaxation provided by the low inflation. As a result, economy grew at only

4.74%, marking the continuation of the declining growth.

The Role of Middle Class in Indonesian Economy

Indonesia’s economy is growing rapidly, and a large portion of the population is

entering the middle-class and affluent consumer (MAC) socioeconomic category.

According to a recent Bloomberg article, Indonesia’s 250 million people are

currently “basking in a consumer and resources driven boom.”

Demographic trends show the size of the opportunity. There are currently about 74

million MACs in Indonesia, and this number will double by 2020, to roughly 141 million

people. During that period, some 8 million to 9 million people will enter the middle

class each year. These emerging middle income earners – said to number 35 million

– are proving eager and discerning consumers, who will seek out and pay for

quality. Furthermore, this large base of potential consumers is the underlying reason

that many multinationals consider Indonesia as their investment destination in South-

East Asia. A recent KPMG report elaborates that controlled wage growth and

sustained improving employment outlook will assist this trend to persist.

 

 

14  

In addition, since of this rising economic tide, Indonesians are extremely optimistic

about their financial futures—more so than people in any other country, including

both emerging and developed markets. They expect to make more money next

year than this year, and they believe that their children’s lives will be better than

their own. As those in this group begin to ramp up their spending in key segments—

such as home goods, vehicles, consumer durables, and financial services—this is a

critical window of opportunity for companies that sell consumer goods.

Economic Prospects

The year 2015 exposed a number of weak spots in Indonesia’s economic setup and

demonstrated that the country remains vulnerable to capital outflows. At the same

time, GDP growth slowed and consumer sentiment was dragged down by weak

currency and global market turmoil. To some extent, 2015 could be described as a

desperate year for a nation that was so confident with its economy prospect,

considering the economic reform the new president was planning for, and it begs

the question as to what 2016 will become.

Jokowi administration has a growth target of 5.3% to be achieved in 2016. This

forecast is influenced by rapid growth in public spending on infrastructure, private

consumption, and investment. These will be attained by ambitious expansive

monetary policy, which will then stimulate virtually every economic activities.

Additionally, the Tax Amnesty scheme is expected to increase capital inflow to

Indonesia; thus, provide more space for government to issue more bonds so that the

giant infrastructure projects could keep going. Finally, the introduction of several

economic packages would help increasing Indonesia’s ease of doing business

rating to improve the quality of business climate. These are the main reasons that

enable Indonesia to achieve the projected growth.

 

 

15  

SOCIAL CULTURAL ASPECT

With a population totaling around 255.5 million individuals in 2015, Indonesia is the

fourth largest country with regard to population size. Its ethnic composition is

characterized by a wide variety as the country contains hundreds of different ethnic

groups and cultures. Based on Indonesian Statistic Data (2016), Until December 2014,

Indonesia consists of 34 provinces, 17.504 islands, and 12.827 coastal islands. Over

the last forty years the country has experienced a process of rapid urbanization,

resulting in the current situation in which over half of Indonesia's total population

resides in urban areas (see table below). For the economy this constitutes a positive

development as urbanization and industrialization are necessary to grow into the

ranks of a middle income country.

1995 2000 2005 2010 2015

Rural Population (percentage of total population)

64 58 54 50 46

Urban Population (percentage of total population)

36 42 46 50 54

Source: World Bank Staff estimates based on United Nations, World Urbanization Prospects (indexmundi.com)

AGE STRUCTURE OF INDONESIA

One important strength of Indonesia's demographic composition in relation to its

economy is that the country has a young population. This young population implies

a - potentially - large workforce (thus making it of vital importance that this

workforce is absorbed by employment opportunities). Below Information is included

by sex and age group as follows: 0-14 years (children), 15-24 years (early working

age), 25-54 years (prime working age), 55-64 years (mature working age), 65 years

and over (elderly).

 

 

16  

Source: CIA World Factbook (Est. 2015)

0-14 years : (male 33,651,533/female 32,442,996)

15-24 years : (male 22,238,735/female 21,454,563)

25-54 years : (male 55,196,144/female 53,124,591)

55-64 years : (male 9,608,548/female 11,328,421)

65 years and over: (male 7,368,764/female 9,579,379) (2015 est.)

National Identity and Symbolism

Indonesia has a very wide cultural diversity. As the largest archipelago nation in the

world, each island of Indonesian geographic region has its own culture inherited by

past kingdoms. This situation is both a national treasure and also a source of many

identity problems. To unite all the different background and avoid primordial

behavior, the national motto “Bhinneka Tunggal Ika” is formed. It is an old Javanese

expression, which means "Unity in Diversity."

The Indonesian Government follows the presidential system based on the Five

Principles (Pancasila). Pancasila consists of five principles, namely:

25.82%  

17.07%  42.31%  

8.18%  

6.62%  

Indonesian  Popula9on  Age  Structure  

0-­‐14  y.o   15-­‐24  y.o   25-­‐54  y.o   55-­‐64  y.o   >  65  y.o  

 

 

17  

1. The Belief in One God;

2. A just and civilized humanism;

3. Unity of Indonesia;

4. Democratic citizenship led by wise guidance born of representative consultation;

5. Social just for all the people of Indonesia.

Business Etiquettes

Indonesian standard business culture is quite different. First of all, it should be

understood that there is no single Indonesian culture. Indonesia with its 17,000 islands

and hundreds of different ethnic groups is a vast collection of different peoples and

cultures. However, Javanese culture has long dominated the archipelago and is the

standard for Indonesian business culture today.

Successful business partnership can often be directly linked to one’s correct

assessment of the proper etiquette. There are several things that should be consider

by business people in Indonesia.

• Business relationships are based on trust in Indonesia. It is important to make

personal contact with potential partners when doing business here.

• Indonesia is a mainly Muslim country, therefore, it would be wise to get

acquainted with the major Muslim holidays and practices. For example, bringing

alcohol as a gift to a practicing and devout Muslim is inappropriate, as

consuming alcohol is forbidden in Islam.

• The business characteristics in Indonesia utilize the fundamental Asian values of

respect for hierarchy. It is considered to be impolite to have lower – ranking

employees from your company interfacing with the higher – level managers

from the Indonesian organization.

 

 

18  

• A manager in Indonesian companies is expected to take on the role of a father

with all the emotional and in-depth concern to gain much loyalty from

subordinates. Such bonding is more respected rather than task oriented quality.

• Meetings are usually formal occasions with formal body language and

communication patterns. It is important to always try to create a sense of

harmony and ease among meetings members. Time is less of an issue in

Indonesia than in many other countries. It is not unusual for meetings to start or

finish late.

• Handshakes are customary when meeting someone for the first time. Contrary to

many Western societies, where a firm handshake is a sign of a strong character,

most Indonesians apply only very light pressure to shake. Women’s hands may

be shaken as well if they offer to. It is also courteous to shake the eldest person’s

hand first, when meeting several people in a group.

• Negotiations can be lengthier than you may be used to from your country origin.

Multiple meetings may be necessary in order to come to a final decisions or

agreement. Refrain from hurrying your Indonesia business partners along, as this

may be taken as an offense.

• Indonesia is having a consensus based discussion culture. One of the

constitutional principles is to make decisions based on consultation and

consensus (“musyawarah dan mufakat“).

• This principle is also quite common in Indonesian business culture. Decisions are

made based on long lasting discussions and consultations between business

partners. It is not that important to find a solution which might the best one.

• A solution either if it is a contractual relation or any business deal must meet the

agreement of everybody involved. Indonesian culture is based on a collective

principle where everyone needs to agree in order to have a working solution.

 

 

19  

• One of the most important issues in Indonesia is building up good relation with

business partners. This process is time consuming and requires you to present

yourself more as a person rather than a businessman. This will set the baseline for

a good business with your partner.

• Nepotism is an undeniable element of Indonesian business life and it is essential

to have the right contacts in the right places. It may be necessary to have locals

make the initial introductions, often at an expensive price to pay. A mixture of

intense dependency on hierarchy and nepotism has resulted in the

development of extremely cumbersome bureaucracies, which requires

patience.

 

 20  

INFRASTRUCTURES Public Transportation

TransJakarta Busway is an public

transportation in Jakarta that supported

Rapid Transit System. It has a separated

lane and station from other vehicles and

supplemented with air conditioner,

which makes the trip by the bus more

comfortable. TransJakarta services

operate from 05.00 AM to 22.00 PM. The cost of TransJakarta ticket is IDR 3.500

(USD 0.30) per trip at 07.00 to 22.00, or IDR 2.000 (USD 0.22) per trip at 05.00

AM to 07.00 AM. Since mid 2014, electronic ticketing system has been

implemented to TransJakarta. To ride TransJakarta Busway, people must buy

TransJakarta Smartcard in the nearest bank or merchant that collaborates

with TransJakarta.

Train and train stations in Jakarta has

been renovated and developed since

the year 2011 and now it has become

one of the major public transportation in

Indonesia.

Due to Jakarta traffic condition, train is

more effective and cost efficient transport rather than

using cars. Moreover some of the trains in Jakarta are

now equipped with air conditioner and a new seat

which makes it more comfortable. Train in Jakarta

operates for 22 hours with a varying price from IDR 2000

to IDR 5000.

 

 21  

There are a lot of taxies in Jakarta. Basically, Taxies in Jakarta can be

classified into three categories based on the fare:

Name Class Cars Fares Telphone Number

Silver Bird

Premium • Toyota Vellfire • Mercedez Benz

C and E Class

IDR 9.000 (USD 0.7) and IDR 550 for every subsequent 100 meter or a minute in traffic

(+6221)7981234

Blue Bird

Moderate • Toyota Vios • Honda Brio

IDR 6.000 (USD 0.5) and IDR 300 for every subsequent 100 meter or a minute in traffic

(+6221)79171234

Express Taxi

Moderate • Toyota Vios IDR 5.000 (USD 0.38) and IDR 250 for every subsequent 100 meters or a minute in traffic

(+6221)1500122

Bajaj is a three wheeled vehicle used as

transportation facility and produced by Indian. Bajaj

is recommended only for short distance trip.

Additionally, bajaj is prohibited to enter the main

streets like Thamrin, Sudirman, Gatot Subroto and

HR. Rasuna Said (Kuningan).

 

 22  

Communication

Jakarta has entered a digital era where its communication is now relying on digital

media. Most of the news in Jakarta can be accessed easily using personal

smartphone or gadget. As for the Internet in Jakarta, almost all Internet provider in

Jakarta is now supplemented with 4G with a minimum download speed of 1 Mbps.

The number of user of Internet in Indonesia has been increased to a number of 83.7

million users since then.

Future Plan

Mass Rapid Transit

The Development of Mass Rapid Transit (MRT) has grown rapidly and now is entering

construction stage. Indonesia MRT project is expected to finish at the year of 2018

with a total length of 110,8 KM and 13 stations. Supported by Japan International

Corporation Agency (JICA), this project costs around 15 Trillion Rupiah. The

development is forced by the future urban mobility trends, which mostly are

underground. The implementation of Mass Rapid Transit is a breakthrough for solving

the main problem in Indonesia, which is traffic.

 

 23  

New Airport

Jakarta is now developing new terminal for Soekarno-Hatta International Airport

called "Terminal 3 Ultimate". With a unique modern design, Jakarta terminal 3

ultimate has 28 check-in gates with a capacity of 25 million passengers per year. This

new terminal is supported with solar cell energy that is eco-friendly. For access to

Jakarta Airport, bus stations and monorail is also supported by terminal 3 ultimate.

As for in Indonesia, Indonesia is now developing 15 new airport that is planned to be

build across Indonesia. Indonesia will also increase the length of airport runway in 27

locations.

 

 24  

General Facts about Investment in Indonesia

Indonesia welcomes foreign investment on its own terms. Government

policies aim at ensuring that foreigners work with Indonesians to assist in

development of the country’s economy and skill-base. There is a general

recognition that Indonesia needs the development capital, and the technical and

management skills of foreigners.

Government regulation of foreign investment in Indonesia is manifested in a

variety of ways, for example:

• approved and monitored through governmental bodies

• companies can employ only a limited number of expatriates, and are required to

demonstrate plans for replacement of

• those expatriates by Indonesians (with the exception of expatriate directors and

commissioners)

• certain fields of business are closed to investment by foreigners

• foreign individuals are permitted to acquire land or land rights with a number of

restrictions.

A “foreign investor” is usually a foreign company incorporated under the laws

of its host nation; however foreign individuals are also acceptable.

Direct and Indirect investment

Law No.25/2007 concerning Capital Investment (“Investment Law”) defines

investment as Direct investment and Indirect investment. Indirect investments, also

known as Portfolio investments, are transactions made through the domestic capital

market/stock exchanges of a country. The Indonesian equity market is highly

institutionalized, whereby over the period from 2002 to 2014 foreign institutions

generally held around 65-70% of the free-float value of the Indonesian equity

market. At 31 December 2014, the foreign portfolio ownership was 72.1% of the Total

Free Float Value of the Jakarta Composite Index (JCI).

 

 25  

The Indonesian government encourages Direct investment by foreigners or

Foreign Direct Investment (“FDI”) in most areas of the Indonesian economy, and less

so in others. Foreign investment approvals can be issued either by BKPM in Jakarta or

an Investment Board (BPM) in every Province, Investment Institution in Regency

Municipality or through Representative Offices of the Republic of Indonesia in

several countries.

 

 26  

Practical insights and observations

Indonesia has an abundance of foreign capital lining up for investment, but a

relative lack of readily identifiable targets and deals to invest in. For a combination

of reasons, deal origination, execution and completion presents significant

challenges right across the transaction cycle for foreign and local investors alike.

Sustained investment interest and transaction activity are accompanied by high

deal execution risks which translate into volatile country FDI inflows. It is common for

transaction and due diligence timetables to experience slippage, and the rate of

deals “falling over” or aborting is high. Reasons include overcooked pricing or

pricing mismatch, transactions structuring complications and other “deal breakers”

or deficiencies found in due diligence.

Despite all the challenges and frustrations, for foreign investors that

“get it right” by finding the right local Indonesian partner, and the right

“best fit” target at the right price, a not uncommon story is that a

multinational’s Indonesian investment can be its most profitable and

favorite in South-east Asia.

 

 27  

Many global and local PE firms, foreign strategic corporates and international

Trading Houses from diverse countries (with Japan and Korea featured prominently)

have prioritized Indonesia as one of their “Top 3” preferred FDI destinations in South-

east Asia, if not the destination of choice. A number of governments have also

openly signaled that Indonesia is their country’s preferred investment destination.

Post GFC, the large international PE Houses generally started to shift attention away

from China and India finding those countries’ investment landscapes too difficult,

crowded or overpriced, with better opportunities and less competition for foreign

capital in South-east Asia. There are indications that investment activity by global PE

Houses in Indonesia may finally be gaining some momentum and traction in 2015

after a slow start. Local PE Houses have been active to varying degrees for many

years.

2014 and 2015 has seen the potential for M&A deal origination opportunities with

Indonesian targets slowly starting to surface and become more visible, in what is still

however a seller’s market. The passing of time has seen prospects of opportunities

opening up for foreign investors in large, diversified family owned Indonesian private

company groups as the aging patriarch or a key decision maker becomes resigned

to the fact that immediate family succession options are “stretched too thin”, and

there being no option but to divest certain businesses, many of which are well

performing despite perhaps not getting the management attention they deserve.

Previous “willingness to sell” barriers may finally be starting to

alleviate within these often large diversified groups. A “prodical

son” or daughter returning from overseas studies and/or business

experience is usually more approachable and commercial than

his or her father, also bringing home a recognition that

partnering with the right foreign Investor can deliver scale,

expertise, a new customer platform or other values to a business

operating in a competitive Indonesian domestic environment to

preserve is longevity.

 

 28  

To conclude, there are risks and challenges in investing and doing business in

this emerging, high growth market, and Indonesia continues to be a difficult country

in which to do business, relative to Western or more developed Asian markets. A

successfully planned and executed investment however can be very rewarding.

Foreign investors, of course, take a country’s investment risk profile into their overall

investment models and decision-making policies. Indonesia is no different. To

successfully invest in Indonesia and reap the benefits from a large, rapidly

expanding population and all the upside of a quite remarkable economic growth

story, having a degree of risk appetite is fundamental.

 

 29  

ABOUT PRASETIYA MULYA AND PRASETIYA MULYA EXECUTIVE LEARNING INSTITUTE

PRASETIYA MULYA

Prasetiya Mulya was the first business school

in Indonesia to offer a Master of Business

Administration (MBA) program. The MBA

program was launched on 6 September 1982

with initial help from national and

international experts of professors who hailed

from overseas institutions such as Erasmus University Rotterdam, Arizona State

University and Lowell University and Texas A&M University, USA. As a business school

founded by prominent members of the country’s business community, Prasetiya

Mulya offers a leading program that emphasizes learning by actually implementing

business concepts in real-world situations. Today it remains the leading private

business school in the country, upholding the original aims of the founders to offer

the highest standards in business and management education for graduates,

undergraduates and executives.

Being founded by members of the country’s business community has ensures an

effective balance between theoretical knowledge and practical application within

the curriculum. To cater to the corporate sector, the school offers both degrees and

non-degree programs as well as research and training for individuals, local

companies and major multinationals. As the result, the school has a leading

reputation in delivering MBA program (following the regulation from Ministry of

Education and Culture, the degree was altered from MBA to Magister Manajemen

(MM) in 1993) that is relevant to the Indonesian and the international business world

since the establishment and Prasetiya Mulya is now benchmarking itself among the

leading business schools by undergoing the accreditation process for AACSB

certification.

 

 30  

Responding to the new realities of the global economic landscape following the

financial crisis and the continuing economic rise of the Asia-Pacific region, Prasetiya

Mulya has embarked on strategic shift in its focus at all levels of teaching and

research to specialize in Asian Business Studies. Entering this new phase in the

evolution of the school, Prasetiya Mulya will continue to forge links with similarity

focused institutions in the ASEAN and Asia Pacific region to become an

internationally renowned centre of excellence and point of reference in the field.

In 2016, Prasetiya Mulya University is established. Prasetiya Mulya open 9 new major

like Business Tourism, International Business Law, Business Mathematics, Food

Technology, etc.

The Prasetiya Mulya logo represents the structure of the MBA program that consist of

the foundation or basic module (integrated management process), 4 pillars of

functional management modules and the capstone module on strategic and

business policy management. The logo also shows a representative of Joglo, a

traditional Indonesian Javanese house. And the circle is stands for togetherness in

diversity and pluralism.

VISION

Outstanding learning partner for principled* business leaders

*principled business leaders: business leaders who have intellectual and moral virtue

MISSION

To develop business leaders to make meaningful contributions for the well-

being of societies

 

 31  

Moreover, Prasetiya Mulya also started its undergraduate program in 2005. Prasetiya

Mulya Undergraduate Program continuously develops team building spirit in a four-

year of study period. This process is starting with an out-bound activity for new

students, team-based project assignment, leadership workshop, and final business

project at the end of the program, as shown on pictures below.

Prasetiya Mulya has been accredited by national and international associations.

Referring to the Law (UU No. 20 of 2003) and Government Regulation (PP No.19 of

2005) also other policies of higher education that emphasizes on quality and public

accountability, it is necessary for Prasetiya Mulya to have accreditation on its

programs. Master Program (S2) accredited superior or "A" since year 2000. Whereas

in 2010, undergraduate program officially receive accreditation from the National

Accreditation Board (BAN) and obtained 374 (very good) from scale 400. This

accreditation rating has been using new forms of accreditation (Borang) which

include the legal aspects of government policies and accreditation processes that

accepted internationally.

 

 32  

Furthermore, in 2013, Prasetiya Mulya won a distinguished "Perguruan Tinggi Swasta

(PTS) Unggulan 2013" or Leading Private Higher Education Award from KOPERTIS

(Koordinasi Perguruan Tinggi Swasta) Region III DKI Jakarta, Indonesia in four (4)

categories. The competition is held annually that aims to improve the quality of

higher education sector and to facilitate learning session among private education

institutions in Jakarta.

Through strictly assessment and evaluation, Prasetiya Mulya won the first rank in 4 of

5 categories:

- Education Learning Process

- Research, Community Development & Services

- Student Affairs & Development

- Governance

 

 33  

PRASETIYA MULYA Executive Learning Institute

Prasetiya Mulya Executive Learning Institute is part of Prasetitya Mulya Business

School that focuses on business and management solutions related to Organization

Development, Performance Management, Human Capital Development,

Performance Management, Human Capital Development, Leadership Transition,

and Grooming Leaders through various forms of design and method of solution.

Prasetiya Mulya Executive Learning Institute has long-term relationships with leading

local and international companies based in Indonesia to support the development

of their human resources and business strategy and management. Developmemt

program is designed to improve specific skills and strategy to facing the future.

Our Vision

TO BECOME A REFERENCE AND PREFERENCE …

In developing business and management competencies, improving the

effectiveness of organizations and echancing the sustainability of the organizations.

(for clients)

In disseminating the inspiration the practitioners and bringing the solution to the

organizations. (for faculty of Prasetiya Mulya and consultants of ELI)

In exploring the real management challenges and developing the contextual and

applied knowledge. (for Prasetiya Mulya)

In living the life. (for people of ELI)

 

 34  

Our Values:

Caring

Consider to interests, needs, and problems of Participants, Partners, Guests, Peers, as

well as Social and Physical Environment

Humility

Humble, does not feel perfect or superior, eager to committing self development

Achieving

Desire to be “the best”, full of heart, innovative

Integrity

Honest, unbroken completeness, loyal to the mission and vision of organization

Prasetiya Mulya Executive Learning Institute offers to become a partner in human

capital development

to enhance the capability

to enrich the perspectives,

to elevate the confidence,

to improve the performance

to shape the future

by designing and executing

the relevant solutions

in terms of system, method and content

The prolonged service of Prasetiya Mulya Executive Learning Institute have been

commencing since 1980.

 

 35  

The meaning of the logo:

People raise his hands to represent the atmosphere of ' eureka '.

Symbolizes our commitment to provide inspiration to every constituent, thus they

could find a solution for a better future.

The letter ' V ' formed to represent the word ' victory’.

Symbolizes of the winning spirit should always be maintained. In addition, it also

symbolizes that through us, the winners was formed, honed and polished.

Kurtosis on the letter ' V ' indicates the sharpness.

Remind us to continue to hone ourselves so that we can provide a solution that is

sharp and accurate.

The circle represents the wave ripple out.

Symbolizes our presence should always have a positive impact to the world. Also

describes our hope that every person who set up with us can be a positive impact to

his organization.

The green color represents growth.

Symbolizes that everyone in the institution as well as those who are formed, honed,

and polished through us should grow and developed.

Dark blue symbolizes the robustness and bonding.

Describes that what we do should be based on a solid foundation. The color also

reminds us to bond with Prasetiya Mulya.

Lowercase letters in the logotype represents of Humility.

Reminds us for always be humble and friendly.

 

 36  

Prasetiya Mulya - Executive Learning Institute offers:

INTEGRATIVE SOLUTION and CONTEXTUAL to develop business management and

business leadership competencies, to bridge individual gap and equal standard of

competence.

INSPIRATION, NEW KNOWLEDGE, REFRESHING OR CONFIRMATION of business

knowledge through the materials in Prasetiya Mulya Executive Learning Institute

programs.

Alternatif to FORM, POLISH OR HONE the company’s talents through the systems and

methods applied.

PARTNERSHIP in a long journey to build and nurture human capital in organization.

Our Program

Public Programs

Short Course Human resource Management • Effective Leadership • Effective Supervisory • HR for non HR Manager • Problem Solving and Decision Making • Business Presentation and Writing (in English and Bahasa) • Training for Trainers • Managing People: Personality Perspective • Coaching, Counseling & Mentoring • Team Leadership • Talent Management • The New Manager • Golden Age Planning

 

 37  

Marketing Management • Building Powerful Brand • Negotiation Skills in Business • Effective Selling Technique • Integrated Marketing Communication • B2B-Sales-Presentation Financial Management • Financial Analysis • Basic Financial Management for Non Finance Manager • Personal Finance: Helping Your Staff to Improve The Quality of Life

Operation Management

• Effective Purchasing Management

• Inventory Management

• Operation Strategy for Business Competitiveness

• Supply Chain Management

• Project Management

• Risk Management

Strategic Course

• Effective Business Plan

• Strategic Business Analysis

• Business Process Management

• Corporate Valuation

• Innovative Marketing Strategy

• Intergrated New Product Development and Innovation

• Strategic Alliances in Business

• Pricing Strategy

• Strategic Execution

 

 38  

International Certification Program

Certification Program

• International Professional Certification Program in Purchasing and SUpply Chain

Management

• Sertifikat International di PSCM Module 1-6

• International Advanced in PSCM Module 7-12

• International Diploma in PSCM Module 13-18

Certificate Programs

Certificate of Business Management

• General Business Management

• Marketing Management

• Financial Management

• Human Resource Management

• Operation Management

• Business Strategic Management

• Certificate of Financial Performance Analysis

• Ceriticate of Strategic FInancial Management

Customized Programs

Programs of business management and capabilities and leadership development

that are specifiaclly designed, systematic, integrative, and contextual in

transforming ways of thinking and develop the capability of the businesses, and

formulate solutions for business leaders which are related to Organization

Development, Performance Management, Human Capital Development,

Leadership Transition, and Grooming Leaders through various forms of design and

method of solution.

 

 39  

These are some of Prasetiya Mulya Executive Learning Institute’s partners are:

Abbott Indonesia Charoen Pokphand

Adhi Karya Chandra Asri

Aerowisata Cigna

Angkasa Pura I Cipta Kridatama

Aqua Danone Charoen Pokphand

ASDP Indonesia Ferry Chandra Asri

Astra Agro Lestari Cigna

Astra Credit Company Cipta Kridatama

Astra Daihatsu Charoen Pokphand

Astra Graphia Chandra Asri

Astra International Cigna

Astra Isuzu Cipta Kridatama

Astra Otoparts Charoen Pokphand

Astrindo Group Ciputra

Asuransi Jiwa Manulife Indonesia Combiphar

Bank Central Asia Conoco Philips

Bank Syariah Mandiri Kementrian Keuangan RI

Bank BTN Djabesmen

BFI Finance EISAI Indonesia

Bogasari Flour Mills EPSON Indonesia

Bredero Shaw Indonesia Freeport Indonesia

Bumitama Gunjaya Agro Garuda Maintenance Facilities

 

 40  

Golden Retailindo Prudential

Indonesia Power PT Pos

Indosat Ramayana Lestari Sentosa

Jakarta Post Schneider Electric Indonesia

Jasa Raharja Sinarmas Forestry

Jiwasraya Sinarmas Land

Kalbe Farma SMART Agribusiness & Food

Kaltim Nitrate Indonesia Smart downstream

Kapal Api Global Sugar Group Companies

Kompas Gramedia Summarecon Agung

Local Governance Innovation for

Communities in Aceh (LOGICA 2)

TASPEN

Mega Central Finance Telekomunikasi Indonesia

Metro TV Telkomsel Indonesia

Minamas Plantation TNS Indonesia

Ministry of Trade and Industry Singapore Tugu Pratama Indonesia

Mitsubishi Chemical TRAC

Multifabrindo Gemilang Tripatra

PAM Lyonnaise Jaya Triputra Group

Perhutani Hutama Karya

Pertamina Indonesia CBP Sukses Makmur

PP Indonesia Fashion Week

 

 41  

AFLP PARTICIPANT Below is the list of AFLP 2016 Participants. SN Name (Dr/Mr/Mrs/Ms) Company / Organisation Name

1 Ms. Juliana Ang NTUC Income Insurance Co-operative

2 Mr. Jacky Ang Credit Suisse AG, Singapore Branch

3 Mr. Gary Chan Citibank Singapore

4 Ms. Chan Kok Seong United Overseas Bank

5 Mr. Ronny Chng United Overseas Bank

6 Mr. Goh Soon Hong DBS Bank

7 Mr. Kelvin Goh Morgan Stanley

8 Mr. Han Kwee Juan Citibank Singapore

9 Mr. Johnny Heng Nomura Singapore Limited

10 Ms. Lai Pei – Si Standard Chartered Bank

11 Ms. Elaine Lam OCBC Bank

12 Mr. Kelvin Lam United Overseas Bank (Jakarta)

13 Mr. Lee Guan Liu Standard Chartered Bank

14 Mr. Alvin Lee Maybank Singapore

15 Mr. Lee Lung Nien Citibank Berhad

16 Mr. Lee Shyong The Warranty Group

17 Mr. Lim Choong Meng Maybank Singapore

18 Mr. David Lim Bank Julius Baer & Co.

19 Mr. Lim Leong Guan UBS AG

20 Mr. Paul Lim Standard Chartered Bank

21 Mr. Philip Lim ANZ Banking Group

22 Ms. Claudia Loh Nordea Bank S.A. Singapore Branch

23 Mr. Alvin Mah Alpha Investment Partners Lts

24 Mr. Ravi Manchanda Westpac Banking Corporation

25 Mr. Jimmy Ng DBS Bank

 

 42  

SN Name (Dr/Mr/Mrs/Ms) Company / Organisation Name

26 Mr. Jeremy Ong NTUC Income Insurance Co-operative

27 Ms. Png Chin Yee Temasek International Pte Ltd

28 Mr. Alfian Sharifuddin DBS Bank

29 Mr. Shee Tse Koon Standard Chartered Bank

30 Mr. Jeremy Soo DBS Bank

31 Mr. Robert Sung Alpha Investment Partners Korea

32 Mr. Tan Chor Sen OCBC Bank

33 Mr. Gerald Tan ICBC Standard

34 Mr. Sebastian Tan Tokio Marine Life Insurance Singapore

35 Ms. Tan Ying Ying Deutsche Bank AG

36 Ms. Wee Wei Min OCBC Bank

37 Mr. Martin Wehling DZ Bank AG

38 Mr. Wong Taur – Jiun Rabobank Singapore

39 Mr. Kenneth Yeo HSBC Private Bank

40 Ms. Loretta Yuen OCBC Bank

 

 

43  

PROGRAM OFFICER

Below is the list of Liaison Officer of AFLP 2016.

Ajeng Gusvidyandra

+62896 0156 2837

ajeng.gusvidyandra@pmbs.ac.id

Elita Chandra

+62812 8237 6942

elita.chandra@pmbs.ac.id

Nina Karina

+62852 8766 4571

nina.karina@pmbs.ac.id

Albertus Axel

+62812 9039 6462

albertusaxel@gmail.com

Anggi Indriani Tami

+62878 7329 1099

anggii.tami@gmail.com

Annisa Larasati

+62812 8850 927

annisalarasati.d@gmail.com

Arline Prinabela Ruslim

+62812 8591 0668

arlinepr@gmail.com

Davin Chandra Salim

+62818 0817 0719

davin.salim94@gmail.com

Denis Shunjaya

+62812 9595 9517

dsh.info@gmail.com

Fanuel Akwila

+62877 7452 3385

akwila.fanuel@gmail.com

Irene Giarto

+62812 1901 2051

irene.giarto@gmail.com

 

 

 

44  

1. Police (Emergency)

2. Information (Public)

3. Fire Station

Fire Department (Central Jakarta)

4. Electricity (PT PLN) 5. Telephone Problem

6. Drinking Water Supplies (PAM Jaya) 7. National Gas Company 8. Ambulance Service

Health Department (Central Jakarta)

9. Search and Rescue (SAR) Natural Disaster

Jakarta Red Cross (PMI) 10. Flood Centre Flood Control (Central Jakarta) 11. General Toll Road Information 12. Postal Information 13. Jakarta (DKI Jaya) 14. Singapore Embassy

110, 112 108 113 384 1216, 344 1494 123 117 34833076 500 645 118 3813217 352 1111 129 390 8422 819 6945 384 6608, 380 3302 801 1735 161 113 2995 0400

 

 45  

REFERENCES

 http://www.worldbank.org/

https://www.britannica.com/

http://flights.indonesiamatters.com/

http://www.jakarta-tourism.go.id/

http://www.bps.go.id/

https://www.cia.gov/

http://www.indexmundi.com/

www.indonesia-investment.com/

www.kpmg.com/

http://www.cnnindonesia.com/

http://finance.detik.com/

http://www.initempatwisata.com/

http://tekno.kompas.com/

http://www.krl.co.id/

http://www.bi.go.id/

http://www.worldbank.org/

http://www.tradingeconomics.com/

https://www.iseas.edu.sg/

http://www.bloomberg.com/

http://www.kpmg.com/

http://pmbs.ac.id/

 

 

46  

APPENDIX

Sheraton Hotel

Contact Information

Address: Jalan. Sultan Iskandar Muda, Kebayoran Jakarta, Jakarta 12240 Indonesia

Phone: +6221 806 30888

Fax: +6221 574 806 30889

Mail: sheraton.jakartagandariacity@sheraton.com

Sheraton Grand Jakarta Gandaria City Hotel offers accommodation in the heart of emerging commercial hub and primer residential area in South Jakarta. The hotel has an outdoor pool and views of the city, and guests can enjoy a drink at the bar. The hotel is a part of a superblock complex offering a retail shopping mall, offices and convention/exhibition facilities. Sheraton Grand Jakarta Gandaria City Hotel is 5 km from the central business district and 32 km away from Soekarno-Hatta International Airport. Halim Perdanakusuma Airport is 11 km from the property. This property is also rated for the best value in Jakarta! Guests are getting more for their money when compared to other properties in this city.