Issue Number 111 - May/June 2012
Dear AIBC Members and Friends
As we approach the mid-point of 2012, AIBC’s activities have reached a new high. In the first six months of this year, AIBC has held more than 20 events across Australia with a combined attendance of more than 1000 Members and guests. AIBC is committed to delivering ongoing value to AIBC Members and you’ll notice we are offering corporate rates at two hotels in Jakarta and Surabaya until 31 December (see details below).
AIBC memberships run to the financial year and I am pleased to advise Members that our membership renewal campaign is progressing well. For the second consecutive year, there has been no increase in our membership fees. If you have not yet renewed your AIBC membership, I encourage you to do so. If you require any assistance, please call 1300 902 878.
Throughout May, Australia’s Ambassador to Indonesia, Greg Moriarty, toured Australia for his mid-term consultations. AIBC hosted events addressed by Ambassador Moriarty in Perth, Canberra, Sydney, Brisbane and Darwin (see details and photos below). These events provided useful opportunities for Members and guests to speak with Ambassador directly and to hear his candid views on the current business climate in Indonesia.
In early July 2012, President Susilo Bambang Yudhoyono will visit Darwin to meet with Prime Minister Gillard as well as some senior Australian business leaders. Both AIBC and IABC will be involved in this visit and I look forward to providing an update on this important event in the next edition of AIBCnews.
July should see the commencement of bilateral business discussions on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). Arrangements for Australian and Indonesian Government support for these discussions have taken some time to achieve, but Members can look forward to opportunities for engagement in sectoral discussions on priorities for the IA-CEPA.
New BKPM Chair
In mid June, President Yudhoyono appointed economist Chatib Basri as Chair of Indonesia’s Investment Coordinating Board (BKPM).This appointment fills the vacancy created in the cabinet-level BKPM post resulting from the October 2011 cabinet reshuffle which Gita Wirjawan had been performing simultaneously alongside his duties as Trade Minister. Chatib “Dede” Basri had previously served as the secretary of the National Economic Committee (KEN) and is an independent commissioner in auto-maker Astra International and coal producer Indika Energy.
Following his induction, Basri pledged to “strive to ensure that investors are content in Indonesia”. He highlighted the interest of investors in Asia and said, “The opportunity is clearly there. What is left is from our side – what needs to be overcome. I think the solution is still classic: investment has begun to increase, but we also cannot hide the fact that the investment climate must be improved, beginning with the time required for business permits, the linkages of the bureaucracy and matters pertaining to infrastructure.”
AIBC looks forward to working with Pak Dede in his new role as BKPM Chair and to introducing him to AIBC Members.
Departure of AIBC Executive Officer, Kirrilee Hughes
AIBC’s long-serving and hard-working Executive Officer, Kirrilee Hughes, will leave AIBC in July to focus on completing her PhD thesis and seek employment in her field of expertise. In her three years with AIBC, Kirrilee has worked closely with the Board and State Branches to lift the level and quality of events and services to Members. We thank Kirrilee very much for her efforts and achievements and wish her well for her professional and personal future.
The Board is implementing a recruitment strategy for a suitable person to take on the executive leadership role for AIBC.
This month AIBC also farewells Reza Pahlevi Chairul from his position as Deputy-Director of the Indonesian Trade Promotion Centre in Sydney. Pak Reza is moving to a posting in the USA and we thank him for his close cooperation with AIBC over the past two years. We look forward to welcoming his replacement in the coming months.
In this month’s IndoView, we present the following articles and multimedia files:
AIBC Members meet Ambassador Moriarty WA, ACT, NSW, QLD and NT
Throughout May, Australia’s Ambassador to Indonesia, Greg Moriarty, visited a number of Australian capital cities for his mid-term consultations. Ambassador Moriarty addressed more than 300 AIBC Members at the following events:
At each event, Ambassador Moriarty provided an interesting and frank assessment of the Australia-Indonesia bilateral relationship, the current business and investment climate and the lead-up to the 2014 Presidential Elections. Ambassador Moriarty’s speaking notes will be available to AIBC Members via our website in early July 2012.
AIBC thanks the generous support of event sponsors Murdoch University, Doric Group and McRae Clough in Perth as well as the Commonwealth Bank of Australia in Sydney.
AIBC WA: Visit by Bupati of West Pasaman, West Sumatra
On Tuesday 5 June, a delegation from West Pasaman Regency (Kabupaten Pasaman Barat), West Sumatra, visited Perth. The group was led by the Regency’s Mayor, Bapak Baharuddin Rabaan, and also included representatives from the local departments of Human Resources and Education. Ibu Enceria Damanik, a doctoral candidate at Curtin University, was instrumental in arranging this visit, which aimed to explore opportunities for collaboration between WA businesses and West Pasaman focusing on education, agriculture, livestock and tourism.
From left: Mr Syahnan; AIBC Member Steve McMahon; AIBC WA Chair Phil Turtle,
Bupati Baharuddin Rabaan; Veronica Nivatvongs; Enceria Damanik; Saifuddin Zuhri
AIBC WA and QLD: Norton Rose Mining Law Update
Following a successful briefing held in April in Sydney and Melbourne, on Tuesday 15 May AIBC Queensland and WA branches presented a joint Members' Briefing, in cooperation with Norton Rose Australia, on recent changes to Indonesia’s Mining Law and the impact on Australian investors. This Briefing was presented from Norton Rose Australia’s Brisbane offices by Rebecca Mohr, Partner, with a live video broadcast to Norton Rose Australia’s Perth offices, meaning that AIBC Members in both Brisbane and Perth could participate in the briefing in real-time. This briefing was attended by 18 AIBC Members in Brisbane and 24 AIBC Members in Perth.
AIBC thanks National Corporate Member, Norton Rose Australia, for their hospitality and generous support in hosting these briefing across Sydney, Melbourne, Brisbane and Perth, allowing over 80 AIBC Members to access up-to-date information about this topic.
AIBC WA Members' Sundowner
On Thursday 10 May, over 60 AIBC WA Members and guests attended a Members' Sundowner hosted by the Consulate General of the Republic of Indonesia, Perth. Bapak Tamba P. Hutapea, Deputy Chairman for Investment Planning, BKPM, made a special trip from Jakarta to Perth to address this gathering.
Pak Tamba delivered an interesting and informative presentation on the Masterplan for Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (MP3EI) and progress in delivering a range of significant infrastructure and other projects. Bapak Muhammad Nasir and Ibu Leidy Surianingrat from BKPM’s Sydney office also attended. Pak Tamba's presentation can be downloaded here.
AIBC WA extends warm appreciation to Pak Tamba and BKPM and looks forward to welcoming them back to Perth again. AIBC WA also thanks the Consul General for his kind hospitality in hosting this event.
AIBC Members are able to access attractive Corporate Rates at the Shangri-La Jakarta and Hotel Majapahit Surabaya. These rates are part of AIBC’s ongoing commitment to deliver value to AIBC Members. In addition to Corporate Rates at both hotels, AIBC Members can also enjoy:
Australia’s Export Credit Agency, the Export Finance and Insurance Corporation (EFIC) has announced renewed support for WA business in response to increased demand for its services and to better assist WA companies.
Leela Hanson, Director, SME and Mid Market, will build on the work she has undertaken with a range of leading WA firms over the past three years by relocating to Perth full time, and opening a permanent office there. “EFIC has been a supporter of Western Australia's exporters for over five decades and this new presence is a mark of our commitment to helping more WA companies succeed in exports and overseas investment,” Ms Hanson said.
For more information on EFIC and their renewed presence in WA please click here.
ANU’s annual Indonesia Update Conference will be held on 21 – 22 September 2012 in Canberra and is themed “The State of Education”.
Education policies in Indonesia have undergone massive transformation over the past decade. In this period the country saw the administration of primary and secondary education decentralised to regional government level, a new paradigm of school-based management introduced and public spending on education required by legislation to reach one-fifth of total government spending. The tertiary education sector continues to be dogged by unsatisfactory performance and blurred lines of authority between institutions and government. And while enrolment rates at all levels continue to increase, quality remains low and has not improved.
Registration for the Update is free of charge and will commence from early July. For more information, please click here.
Asialink is hosting a State of the Nation forum focused on Indonesia on Wednesday 25 July from 6pm – 8pm at Ashurst’s Sydney Offices. The forum will include the following panel:
For more information about this event, including registrations, please click here.
The Asia Pacific Ministers’ and Regional Governors’ Conference on Sustainable and Inclusive Infrastructure Development held in conjunction with the Indonesian International Infrastructure Conference and Exhibition will be held at the Jakarta convention Centre between 28 – 30 August 2012.
These two conferences will host Indonesia’s national and international trading partners in support of infrastructure development across Indonesia’s 33 provinces. As an initiative of KADIN, and with the full support of the National Development Planning Board, BKPM, the Coordinating Minister for Economic Affairs and the Indonesian Provincial Government Association, these events will demonstrate the full range of public and private sector partnership (PPP) opportunities for developing sustainable and inclusive infrastructure projects across Indonesia.
For more information, please visit the conference website.