THE DOER - tuskadvisory.comtuskadvisory.com/Document/Forbes_Nov_2017.pdfLeonika Sari Njoto...

WWW.FORBESINDONESIA.COM

FORBES 400 • BIG DATANOVEMBER 2017 • VOLUME 8 ISSUE 11

RP 50,000

THE DOERCoordinating Minister for Economic Affairs

is delivering infrastructure and financial inclusionDARMIN NASUTION

2 | FORBES INDONESIA NOVEMBER 2017

Contents NOVEMBER 2017

8 | FACT & COMMENT // Steve ForbesPlea to High Court: Know Your Limits

12 | UPDATESinar Mas Opens an Oleochemical Plant and Beyond Taxis

14 | TOPICAL SUBJECTS // Jusuf WanandiASEAN and the regional comprehensive economic

partnership

ISSUE & IDEAS16 | BETTER FRIENDS THAN EVER

Japan’s Ambassador sees the already strong Japan-Indonesia relationship growing stronger.

BY TAUFIK DARUSMAN

18 | PROPERTY PERSPECTIVE // Todd LauchlanIndonesia’s future of work

20 | GLOBAL VIEWPOINT // Jennie M. XueHow blockchain is changing the business world

22 | MONEY & MARKETS // Rainer Michael PreissIndonesian rupiah sovereign bond issue

24 | STARTUP NATION // Alessandro GazziniIndonesian startup investments are booming

COMPANIES & PEOPLE26 | HEALTHY APPROACH

Benoit Martineau is growing Sanofi’s presence with innovative strategies.

BY AASTHA MAHESHWARI AND ANUSHKA DHOOT

28 | PAINT POWERThe Tanoko family’s Avian paint company is big and getting

bigger. BY SHINTYA FELICITAS

OUTLOOK 201832 | THE DOER

Economic Affairs Coordinating Minister Darmin Nasution gives his outlook on how recent reforms and infrastructure will

improve the country.BY RAJ KANNAN AND JUSTIN DOEBELE

32

16 28 26


Contents NOVEMBER 2017

FORBES 40044 | THE FORBES 400

The rich just keep on getting richer. The minimum fortune required to make our annual ranking of the wealthiest

Americans is a record $2 billion, up 18% over last year. Their average net worth is $6.7 billion, and in total, these tycoons

are worth some $2.7 trillion.

46 | TRUMP UNFILTEREDOn October 6, President Trump sat down for a frank

exchange of views with Forbes’ editor, Randall Lane, and chief product officer, Lewis D’Vorkin.

58 | POORER PRESIDENTDonald Trump’s net worth has dropped some $600 million

since last year. Here’s what has changed.BY DAN ALEXANDER AND MATT DRANGE

TECHNOLOGY62 | TICKET MAN

Now part of Go-Jek, Loket’s Edy Sulistiyo isrevolutionizing the events industry.

BY ARDIAN WIBISONO

64 | BLOOD DRIVELeonika Sari Njoto Boedioetomo’s Reblood improves

blood donations.BY SHINTYA FELICITAS

66 | EMPOWERING MICRO-ENTREPRENEURSAndy Taufan Garuda Petra’s Amartha is pioneering P2P

microlending. BY R JOE REGAN

24 | GUEST COLUMN // Will OngkowidjajaFinding opportunities for Indonesian retailers in

The online to offline space FORBES LIFE70 | REDEFINING LUXURY

Hongkong and Shanghai Hotels’ Peter Borer keeps the Peninsula brand fresh while respecting its history.

BY ERZA S.T.

72 | LOST OPPORTUNITIESVeteran journalist John McBeth finds the former

president did well, but squandered his chanceto be even better.

BY SEKAR KRISNAULI

76 | THE SOUL OF SANURThe Santrian group’s founding family pioneered

Bali’s tourism industry.BY ANTON MUHAJIR

78 | THE EYE

64

62

66

70 76


FORBES INDONESIA is published by PT Wahana Mediatama under a license agreement with Forbes LLC, 60 Fifth Avenue, New York, New York 10011. “FORBES” is a trademark used under license from FORBES LLC. ©2010 PT Wahana Mediatama • ©2010 FORBES LLC, as to material published in the U.S. Edition of FORBES. All Rights Reserved. ©2009 FORBES LLC, as to material published in the edition of FORBES ASIA. All Rights Reserved.FORBES INDONESIA is published monthly, 12 times per year. Copying for other than personal use or internal reference or of articles or columns not owned by FORBES INDONESIA without written permission of FORBES INDONESIA is expressly prohibited. CONTACT INFORMATIONForbes Indonesia: Menara Sudirman 19th Floor, Suite 19D, Jl. Jendral Sudirman Kav. 60, Jakarta 12190. Tel: (021) 522 6828, Fax: (021) 522 7208. Website: www.forbesindonesia.com

: Forbes Indonesia Magazine : @forbes_id : forbesindonesiaSubscriber Enquiries: Please contact Circulation Division. Email: [email protected]. Or visit www.forbesindonesia.com to subscribe or advertise. Single copy price Rp 50,000, local subscription rate Rp 480,000 + postal fee (Jadetabek) for 12 issues.

Doers and DoingsBY JUSTIN DOEBELE

[email protected]

The original name for Forbes magazine was meant to be “Doers and Doings.” That name seems appropriate for this annual outlook feature on the year ahead. In previous outlook editions (always in

November), the section has featured forecasts taken from a range of ex-perts. This year, the section features an outlook from just one individual: Economic Affairs Coordinating Minister Darmin Nasution. The change in format came about due to the stature of the minister in question. Among those in President Joko “Jokowi” Widodo’s administration, few have a bet-ter grasp of—and authority over—the shape of things to come. As coordi-nating minister, he stands between the president and the ministries in his portfolio. He has already had a huge impact across the country, working through the ministries inside and outside his purview (as well as regional authorities). He has created much actual, and badly needed, infrastruc-ture. In addition to this, he has implemented many innovative initiatives, such as to issue land titles to small landholders, as well as other reforms in agriculture and bureacratic matters.

With that impressive track record, it’s easy to see how he is the perfect candidate to discuss the outlook for the country. In his position, he has the power to turn ideas into reality in 2018—perhaps more than the others in previous issues, as he has a higher probability to make his forecasts come true. While the president has set the agenda, it has been Darmin’s respon-sibility to translate those ideals into bricks and mortar on the ground (and red tape cut). The accomplishments of Darmin are more noteworthy in the context of his reputation of being an academic. While most of his ilk more comfortable in ivory towers, Darmin has, like his president, focused on getting it done in the here and now. Yet, in person, Darmin maintains a calm and low-key demeanor—almost professorial. His academic qualifi-cations (including a Sorbonne doctorate) means he understands, in a di-mension better than some, the full long-term impact of the improvements happening throughout the country. New highways mean improved logis-tics and lower costs, and a more productive economy. One of the lessons of the Asian financial crisis, now two decades old, is that increased inputs can only take a country so far—at some point, nations must boost produc-tivity to take themselves to the next level of growth. With his ambitious program, already well on the way but not yet completed, Darmin has been helping move the country in the direction of enhanced efficiency, with all the benefits that derive from that enhancement. With that type of leader-ship and outlook for the coming year, there are plenty of reasons for opti-mism that there are better days ahead. F

SIDELINES

NOVEMBER 2017 — VOLUME 8 NUMBER 11

EDITORIAL DEPARTMENTCHIEF EDITORIAL ADVISOR Justin DoebeleEDITOR-AT-LARGE Taufik DarusmanSENIOR EDITORS Ardian Wibisono, Ulisari Eslita, Yessar Rosendar WRITER Shintya Felicitas SENIOR GRAPHIC DESIGNER Hidayat AbubakarGRAPHIC DESIGNER Dennis A. PratamaEXECUTIVE ASSISTANT Hanna AzuraaPHOTO EDITOR Ahmad ZamroniCONTRIBUTING WRITERS Aastha Maheshwari, Miri Hwang, Putri Kadarmanto

BUSINESS DEPARTMENTPUBLISHER Jusuf Wanandi EXECUTIVE DIRECTOR Tanti Jumiati DIRECTOR Ryan WiranataSENIOR SALES & EVENTS MANAGER Rafki IsmaelASST. MANAGER EVENTS & COMMUNICATIONS Rio ZikrizalMARKETING SUPPORT Josephine Hanna M.CIRCULATION DIRECTOR Seli WidiatiCIRCULATION MANAGER Habibie HasanuddinCIRCULATION EXECUTIVE Dahlia Komala SariPRODUCTION MANAGER Mudafid Riyanto ACCOUNTING MANAGER Indrawati SonjayaACCOUNTING SUPERVISOR Inge Stephanie ACCOUNTING EXECUTIVES Tjhin AnnaACCOUNTING STAFF Aldina Anggraini

PT WAHANA MEDIATAMAPRESIDENT DIRECTOR Millie Stephanie LukitoVICE PRESIDENT DIRECTOR Dewi Victoria PRESIDENT COMMISSIONER Jonathan Tahir

FORBES MEDIA LLCCHAIRMAN & EDITOR-IN-CHIEF Steve Forbes PRESIDENT & CEO Mike Perlis CEO / ASIA William AdamopoulosEDITOR, FORBES ASIA Tim Ferguson

Main Sponsor: Supported by: Multimedia Powered by:

Congratulates the Winners of the

Thanks to All Sponsors

TRIFECTA AWARDS(3 Consecutive Years)

GOLDEN AWARDS(5 Consecutive Years)

PT. Media Nusantara Citra Tbk. PT. Tiga Pilar Sejahtera Food Tbk.

Recognizing the Top 50Best Public Companies in Indonesia

OUR METHODOLOGY IDENTIFIES COMPANIES WITH GOOD LONG-TERM PERFORMANCEIN MULTIPLE AREAS. THEY ARE THE 50 BEST OF THE BEST.

PT. Acset Indonusa Tbk. • PT. Akasha Wira International Tbk. • PT. Asiaplast Industries Tbk. • PT. Bank Bukopin Tbk. • PT. Bank Mandiri (PERSERO) Tbk. PT. Bank OCBC NISP Tbk. • PT. Bank Pan Indonesia Tbk. • PT. Bank Tabungan Pensiunan Nasional Tbk. • PT. Champion Pacific Indonesia Tbk. • PT. Destinasi Tirta Nusantara Tbk.

PT. Indal Aluminium Industry Tbk. • PT. Indoritel Makmur International Tbk. • PT. Japfa Comfeed Indonesia Tbk. • PT. Jasa Marga (PERSERO) Tbk. • PT. Jaya Konstruksi Manggala Pratama Tbk.PT. Kedawung Setia Industrial Tbk. • PT. Kimia Farma (PERSERO) Tbk. • PT. KMI Wire And Cable Tbk. • PT. Link Net Tbk. • PT. Multifiling Mitra Indonesia Tbk. • PT. Pan Brothers Tbk.

PT. Plaza Indonesia Reality Tbk. • PT. Reliance Sekuritas Indonesia Tbk. • PT. Sekar Laut Tbk. • PT. Siloam International Hospitals Tbk. • PT. Sumber Alfaria Trijaya Tbk.PT. Tiga Pilar Sejahtera Food Tbk. • PT. Tunas Ridean Tbk. • PT. Wijaya Karya Beton Tbk. • PT. Wilmar Cahaya Indonesia Tbk.

Cong Ad BOB 2017.pdf 1 10/31/17 12:01 PM

In years past, the annual Outlook package has taken a standard format, a roundup of perspectives from a range of experts. This year, a decision was made to take a different approach—the Outlook is provided by a single—

and important—individual, Economic Affairs Coordinating Minister Darmin Nasution. The reasoning is simple: Darmin and his accomplishments will have a major impact on the country’s economy going forward. Thus an

analysis of Darmin’s programs and where he, and others involved in these programs, would like to take the country can be a lenses through which to

understand the outlook for the country.


THEDOER

Coordinating Minister for Economic Affairs

Darmin Nasution gives his outlook on how recent reforms and infrastructure will

improve the country.

BY RAJ KANNAN AND JUSTIN DOEBELE

AH

MA

D Z

AM

RO

NI /

FO

RB

ES IN

DO

NES

IA

NOVEMBER 2017 FORBES INDONESIA | 33


TThe infrastructure process is

important not just in size but scope, as it encompasses the entire coun-try. While the more populated Java and Sumatra have gotten about $40 billion of $72 billion figure, other re-gions, often overlooked, are finally getting a share as well, such as Kali-mantan, Sulawesi, Papua and the Ma-lukus—in total over 129 priority and

he Coordinating Minister for Eco-nomic Affairs Darmin Nasution, 68, is known for being a well-trained academic, with a PhD in macro-economics from the Sorbonne in Paris. Yet he has proven that he can focus on concrete results as well as theories—he has been the driving force in President Joko “Jokowi” Widodo’s cabinet translating the president’s nation-building aspira-tions into actual infrastructure on the ground. The normally low-pro-file Darmin laid out his outlook for transforming the country through new infrastructure, and other re-forms, in an exclusive interview with Forbes Indonesia in mid-Sep-tember in his offices.

Darmin’s track record speaks for itself—since 2014, approximately $72 billion worth of infrastructure has been completed or is now under construction (excluding electricity programs). No recent administra-tion has accomplished so much in so little time—one has to go back to the early phase of the Suharto re-gime to find a comparable build-out. In the process, Darmin, the former head of Bank Indonesia, has built a reputation as a doer. Darmin makes

clear that these accomplishments are from a collective effort, composed of ministers and ministries, both inside and outside his preview, and region-al heads. “It’s a solid team effort, the president sets the vision that we im-plement—not only just building infra-structure but implementing economic policies that lift the living standards of our citizens concurrently”, he says.

Indonesian Infrastructure under Construction or CompletedTotal Infrastructure Investment Under Construction as of June 2017 $ 72 Billion(*Exc. Electricity Program)

SUMATERA26 Projects >> $ 9 bln

NATIONAL LEVEL PROJECTS7 Projects >> $ 0.31 bln

KALIMANTAN14 Projects >> $ 16 bln

ENERGYSEZROAD

ROADSEZTRAIN

JAVA61 Projects >> $ 29 bln

ROADSEZTRAINENERGY

ENERGY$ 0.29TECHNOLOGY$ 0.02

94%

6%


strategic infrastructure projects are currently under construction across the archipelago.

Some of these projects look to be transformational once completed, such as the Trans Sumatra Highway, as a backbone linking together Su-matra—and its development. Other notable projects are the concurrent construction of the Jakarta MRT and

LRT projects, a major railway in Su-lawesi, and a special economic zone in Papua. Yet Darmin is focused not just on concrete and steel, but also on bringing greater financial inclusion to those often marginalized. Darmin has spearheaded vital policy reforms to improve the livelihood of millions. One of the most important is agrarian reforms, which will, when completed,

1 US$ = 13.000 IDRSOURCE: TUSK ADVISORY ANALYSIS

SULAWESI21 Projects >> $ 8.6 bln

MALUKU & PAPUA9 Projects >> $ 9 bln

BALI & NUSA TENGGARA11 Projects >> $ 0.5 bln

SEZTRAINROADDAM

SEZPORTDAM

SEZENERGY Achieving

Equitable Prosperity

The 4 Pillars of Joko Widodo’s Nation Building

Program

INFRASTRUCTURE DEVELOPMENT

FINANCIAL INCLUSION AND AGRARIAN REFORM

HUMAN CAPITAL DEVELOPMENT

BEAUCRACRATIC TRANSFORMATION


deliver land titles to millions of small landholders. Last year over 600,000 land titles were issued, and so far this year, another four million, and Darmin is aiming for five million land titles is-sued by year-end. By 2019, the end of the Jokowi’s first term, Darmin proj-ects the government can create 21 mil-lion new land owners.

Darmin sees a huge benefit coming from more widespread land owner-ship. “Can you imagine the impact this

will have in increasing the wealth of the small landholders across the country? For the first time, they have assets that they can use as legitimate collateral, so they become direct participants and not just spectators of the economic growth in the country,” he says. Another major government program is introducing and supporting farmers in new farm management reforms to change the way the farmers grow their crops. “We are encouraging the creation of cluster

farming to increase economies of scale as well as to increasing productivity of the farms with better seeds,” he says.

Darmin is also the chairman of the KPPIP, the government’s co-ordinating agency for priority and strategic infrastructure projects. Along with his vice chair, Coordi-nating Minister for Maritime Affairs Luhut Panjaitan, the pair have been credited with driving the KPPIP, as an extension of the government, to A

HM

AD

ZA

MR

ON

I / F

OR

BES

IND

ON

ESIA


ensure the delivery of these proj-ects. “KPPIP is a unique govern-ment committee, it’s fully funded by government, and yet it is led by both government officials and private sec-tor infrastructure experts. They help ministries to debottleneck project delivery, solve issues with feasibility studies, and develop smart funding solutions,” he says.

Another innovation of Darmin is the One Map Policy (OMP), which his ministry has been leading for several years. OMP is aimed at mapping and charting the entire nation onto a sin-gle definitive map, showing all prop-erty and concession boundaries and owners, to ensure that land disputes become a thing of the past. The OMP will also increase the certainty of in-vestments for private sector investors and avoid the messy issues of two en-tities being offered overlapping min-ing or planting concessions because of poor quality maps.

On the perception that SOEs are crowding out the private sector in in-frastructure delivery, Darmin explains that when the Jokowi administration came in, it had to start with projects that would have the biggest bang for the buck. However, many of these projects were not attractive to the private sector. “The president’s vision was very clear, stop talking and start building infrastructure, so we called on the SOEs to start economically important projects, like the Trans Su-matra Highway, which we assigned to the government owned PT Hutama Karya,” he says.

He adds that, starting from 2018, the government will increase its en-gagement with the private sector for infrastructure and other social proj-ects. “We understand that the private sector is keen to invest in bankable projects and even better if they are brownfield projects, so as we speak, we are developing a new policy for government asset optimization that will monetize key government assets such as operating toll roads, power

plants, seaports, airports and so on,” he says. Recently, Mandiri Sekuritas led the securitization of the coun-try’s oldest toll road, the Jagorawi toll road. Jasa Marga successfully raised Rp 2 trillion as an initial sum, which it plans to use to develop more toll roads across the country.

Darmin also mentioned that the government is exploring the issu-ance of Limited Concession Schemes (LCS), in which the government of-fers a concession to a private opera-tor in exchange for an upfront pay-ment from the private operator to the government for the concession right, typically for about 17 to 20 years. “The upfront payments for some of the gov-ernment’s assets could be in the bil-lions of dollars, can you imagine how many socioeconomic projects that the government can build with that kind of money?” he asks. He notes that the LCS is not a sale of the government asset to the private sector, but it was merely harnessing the financing and operating capabilities of the private sector to develop key government as-sets that require massive capital ex-penses such as airports.

In simple terms, Darmin explains that the president’s vision for nation building can be categorized as hav-ing four pillars. Aside from infra-structure, and land titles and clus-ter farming, the other two pillars are increased vocational training and reducing bureaucracy throughout the government—such as the Investment Board (BKPM)’s new streamlined three-hour approval process for busi-ness licenses. “The BKPM’s three-hours approval process for business

licenses is no longer a dream, it’s a reality. Now we want to expand fur-ther into other investment sectors. We also want to ensure even bond is-suances are achieved in record time, unlike the past,” he says.

He was quick to add that the gov-ernment’s infrastructure delivery programs have well defined socioeco-nomic components to them. He said the government is now insisting that toll road developers allow entrepre-neurs who live near toll roads to open a business in the rest and service areas. “So a toll road doesn’t have to mean that local communities are dis-advantaged, we want the benefit of the toll road to be shared with nearby communities,” he says.

The government is also building series of Special Economic Zones across the country, which are meant to be connected by newly built in-frastructure. “Previously, toll roads were simply built without taking into consideration the needs of the industry and the society, but now we insist that both of these components be achieved in every project. In short, we aim to convert every infra-structure corridor into an economic corridor,” he says.

When asked about what is the outlook for next year, Darmin says 2018 will be a year in which social equity will take greater importance, and the private sector will be har-nessed to play a greater role in nation building. This process, he says, will happen not only through infrastruc-ture projects but also for projects that increase social equity, financial inclusion and investor certainty. F

“The president sets the vision that we implement. Not only just building infrastructure but

implementing economic policies that lift the living standards of our citizens.”

THE DOER - tuskadvisory.comtuskadvisory.com/Document/Forbes_Nov_2017.pdfLeonika Sari Njoto...

Documents

Transcript of THE DOER - tuskadvisory.comtuskadvisory.com/Document/Forbes_Nov_2017.pdfLeonika Sari Njoto...