Forbes Indonesia 2013 January (e magazine full)

Indonesia
ACEH SPECIAL REPORT: 8 YEARS AFTER TSUNAMI
JANUARY 2013
VOLUME 4 ISSUE 1
www.forbesindonesia.com
BUSINESSMAN yEAr
of the
Dr. Boenjamin Setiawan
HIS KALBE FARMA LEADS THE WAY IN HEALTHCARE
RP 50,000
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2 | FORBES INDONESIA JANUARY 2013
Indonesia
contents — JAnUARY 2013 volUme 4 issUe 1
10  FACT & COMMENT  Steve Forbes
Where is Keynes when we need him?
12  PUBLISHER’S LETTER  Jusuf Wanandi
What strategy should Indonesia set for its future?
16  REALITY CHECK  James Kallman
New year – new approach or same old story.
18  FRESH THOUGHT  Tauk Darusman
In the presence of political shamans.
COMPANIES & PEOPLE
20  BEAUTY MARKET
L’Oréal has picked Indonesia as home of its largest plant in the world,
which it hopes to help with its regional ambitions as well.
BY GLORIA HARAITO
26  NICHE PLAYER
Intraco thrives on providing heavy equipment targeting specific markets.

BY GLORIA HARAITO
28  MARKETING INSIGHTS  Hermawan Kartajaya
“Anak Singkong” a presidential candidate?
BUSINESSMAN OF THE YEAR
30  MEDICINE MAN
At 80, Dr. Boen has built Kalbe Farma into the country’s largest pharmaceutical
company, and still sees plenty of growth ahead.
BY ULISARI ESLITA
37  AGELESS AND PEERLESS IN AN ERA OF FABLESS
Morris Chang, 81, has lit another fire under TSMC, as it builds on his
chipmaking breakthrough. Eyes now for Apple?
BY RUSSELL FLANNERY
COVER PHOTOGRAPH BY
AHMAD ZAMRONI / FORBES INDONESIA
p PAGE 30
“WE HAVE BEEN
DEVELOPING VERY
FAST, BECAUSE WE
ARE PUTTING A
LOT OF EMPHASIS
ON RESEARCH AND
DEVELOPMENT. I
THINK THIS IS OUR
KEY OF SUCCESS.”
—BOENJAMIN SETIAWAN,
KALBE FARMA FOUNDER &
HONORARY CHAIRMAN
JANUARY 2013 FORBES INDONESIA | 3
NISSAN
NISSAN INFINITI JAN 2013 EDIT 1 12/17/12 4:56 PM

4 | FORBES INDONESIA JANUARY 2013
MAYAPADA
www.bankmayapada.com
Mayapada Tower, Ground Floor – 3rd Floor
Jend. Sudirman Kav.28 Jakarta 12920 – Indonesia
Phone : +62 21 5212288, +62 21 5212300
Leading you to Indonesia
For over two decades, Bank Mayapada has proven to be a strong and reputable bank
in Indonesia. We offer a wide range of financial services to meet our clients’ personalized
business needs supported by state of the art IT and knowledgeable staff. With over than
170 branches in 19 provinces in Indonesia, Bank Mayapada will continue to serve the ever
growing economy in Asia.
dps mayapada final.indd 8 7/3/12 7:46 PM
JANUARY 2013 FORBES INDONESIA | 5
MAYAPADA
www.bankmayapada.com
Mayapada Tower, Ground Floor – 3rd Floor
Jend. Sudirman Kav.28 Jakarta 12920 – Indonesia
Phone : +62 21 5212288, +62 21 5212300
Leading you to Indonesia
For over two decades, Bank Mayapada has proven to be a strong and reputable bank
in Indonesia. We offer a wide range of financial services to meet our clients’ personalized
business needs supported by state of the art IT and knowledgeable staff. With over than
170 branches in 19 provinces in Indonesia, Bank Mayapada will continue to serve the ever
growing economy in Asia.
dps mayapada final.indd 8 7/3/12 7:46 PM
6 | FORBES INDONESIA JANUARY 2013
ENTREPRENEUR
42  LET THEM EAT CAKE
Lal de Silva is the rare chef who successfully grew his own business.

BY GLORIA HARAITO
46  SEWING THE SEEDS OF FORTUNE
A single sewing machine and an eye for detail helped Donda Hutagalung
build a Rp 10 billion a year industrial clothing business.
BY GLORIA HARAITO
ISSUES & IDEAS
52  ACEH: EIGHT YEARS ON
Columnist Scott Younger returned to Banda Aceh shortly before the eighth anniversary
of the tsunami to file this personal account of Aceh’s recovery from the tragedy.
58  BUILDING A STRATEGIC RELATIONSHIP
From multi-billion investments to K-Pop, South Korea’s Ambassador to Indonesia
Young-sun Kim see a growing relationship between the two nations.
BY MEE-HYOE ALANA KOO
60  A CHAT WITH THAKSIN SHINAWATRA
Forbes Asia caught up with deposed Thailand prime minister Thaksin Shinawatra
in his Dubai refuge.
66  DELIVERING INFRASTRUCTURE  Raj Kannan
Infrastructure crisis—time for an “IBRA-like” agency for infrastructure.
68  LEGAL VIEW  Eddy Leks
The challenge of minimum wage increases.
70  CEO WISDOM  Andrew Tani
CEOs, pay attention!
71  GLOBAL VIEWPOINT  Jennie S. Bev
Will a financial bubble pop in 2013?
LIFE
72  DANCING FOR LIFE
After 37 years as a performer, Didik Nini Thowok remains an icon
for cross-gender dance in Indonesia.
BY SONYA ANGRAINI
74  LIQUID GOLD

The modest but growing market for rare whisky has investors
seeking big returns dram by dram.
BY CALEB MELBY
76  UPSCALE MOBILITY
Vertu under Perry Oosting aims to strengthen its position in the luxury cell phone segment.
BY YESSAR ROSENDAR
78  THE EYE  Yessar Rosendar
u PAGE 42
“IT IS MY BABY, I WANT TO SEE IT GROW. “
—LAL DE SILVA,
HARVEST CAKES & CHEESE CAKE FACTORY OWNER
p PAGE 26
“I WAS FAMILIAR
WITH THE
COMPANY. BACK
IN ELEMENTARY
SCHOOL, I WAS
DRIVING A BOBCAT.”
—PETRUS HALIM,
INTRACO PENTA
PRESIDENT DIRECTOR
contents — JAnUARY 2013 volUme 4 issUe 1
JANUARY 2013 FORBES INDONESIA | 7
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8 | FORBES INDONESIA JANUARY 2013
EDITORIAL DEPARTMENT
Chief Editorial Advisor Justin Doebele
Editor-At-Large Tauk Darusman
Senior Writers Ardian Wibisono

Writers Ulisari Eslita, Gloria Haraito,
Renjani Puspo Sari
Reporters Sonya Angraini, Yessar Rosendar
Art Director Mirna Lidya Aprilla
Photo Editor Ahmad Zamroni
Executive Assistant Seli Widiati
Editorial Intern Mee-Hyoe Alana Koo,
Adelia Anjani Putri, Arya Satya Nugraha
BUSINESS DEPARTMENT
Publisher Jusuf Wanandi
Associate Publisher Grace Wong
Circulation & Subsription Manager Andriansyah
Circulation Executive Desi Yulieta
Production Manager Mudad Riyanto
Adv & Sales Manager Tanti Jumiati
Senior Advertising Sales Executive Ade Sapto,
Hilman Ahmad
PR & Event Manager Rai Ismael
Executive Assistant Marketing Nancy Heryana
Accounting Manager Indrawati Sonjaya
Accounting Supervisor Inge Stephanie
Accounting Executives Ary Purnomo
Administrative Assistant Fitriyah
PT WAHANA MEDIATAMA
President Director Millie Stephanie
Vice President Director Victoria Tahir
President Commissioner Jonathan Tahir
Vice President Commissioner Maria Lukito
FORBES MEDIA LLC
Chairman & Editor-in-Chief Steve Forbes

President & CEO Mike Perlis
Chief Product Ocer Lewis D’Vorkin
President & Publisher, Forbes Asia
William Adamopoulos
Editor, Forbes Asia Tim Ferguson
FORBES INDONESIA
siDelines
I
n December, Forbes Indonesia held its second annual Best of the Best
awards and gala dinner. The event was graced by the Coordinating Minister
for Economic Aairs Hatta Rajasa and Forbes Vice Chairman Christopher
Forbes. The event was to recognize the top 50 best performing listed companies
in the country and it was attended by more than 350 VIP guests. The event was
well covered by the media, and Forbes Indonesia also worked with Metro TV to
produce a special program aired on that channel about the event.
The event neatly capped o another successful year for the magazine.
Among this year’s highlights were some notable cover stories:
• Garudafood’s Sudhamek in February, discussing his plans for an IPO.
• Minister Dahlan Iskan in April for our special state-owned enterprises
feature, appearing just after he made headlines taking control of a tollgate.
• Astra’s Prijono Sugiarto in May, coinciding with the 55th anniversary of
Astra International’s founding.
Some other important articles were on KPK’s Abraham Samad, Yogyakarta’s
Sultan Hamengkubuwono X and BKPM’s Chatib Basri.
In events, aside from our December event, we held in May our first
Leadership Forum on the State Owned Enterprises, well attended by senior
figures from the state-owned sector plus Minister Dahlan. In that vein, this
year our Forbes Global CEO Conference, the biggest and most prestigious event
held by Forbes worldwide, will be held in Bali in September, the first time for it
to be in Indonesia, after visiting many other places such as Dubai, Hong Kong,

Shanghai and Singapore.
Our readers were also oered an exclusive excerpt from Jusuf Wanandi’s
newest book, “Shades of Grey” in August. We are now strengthening that
relationship with Jusuf and are pleased to announce that starting with this
issue, he will join us as publisher. As many may already know, Jusuf is senior
fellow and co-founder of the Centre for Strategic and International Studies,
vice chair of the board of trustees of CSIS Foundation and the chairman of
the Prasetiya Mulya Business School. He also has an unmatched journalism
background as president director of the Jakarta Post, and as a prolific editor,
writer and commentator.
We are honored to welcome him in his new role. He will continue as well to
be a regular columnist for the magazine and has a special column in this issue
about what strategy Indonesia should have for its future, an apt topic for the
first issue of the year. We are looking forward to another good year, and we hope
the same for our readers.
Looking Back
and Looking Ahead
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 INFORMATION

Forbes 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
Subscriber Enquiries: Please contact Circulation Division. SMS to
0817 0109 777, email: Or visit
www.forbesindonesia.com to subscribe or advertise. Single copy
price Rp 50,000, local subscription rate
Rp 420,000 + postal fee (Jabodetabek) for 12 issues.
JANUARY 2013 • VolUme 4 IssUe 1
Indonesia
Justin Doebele
Chief Editorial Advisor

CORRECTION:
In our last issue, on p. 36, we identified Tahir as being 62 with three children. He is 60 with
four children. On p. 38, Kartini Muljadi’s name was reversed. We apologize for these errors.
JANUARY 2013 FORBES INDONESIA | 9
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10 | FORBES INDONESIA JANUARY 2013
FAct & comment — steve FoRBes
FORBES INDONESIA
“With all thy getting, get understanding”
Politicians love
the late
British economist John Maynard
Keynes because he gave intellectual
respectability to what politicians love

to do: spend other people’s money.
Keynes was also an enemy of plying
taxes when economies are wobbly,
yet his supposed heirs are today
crushing consumers and businesses
with ever heavier exactions in the
face of economic weakness. There
hasn’t been such a destructive binge
of balancing budgets via taxation since the early
1930s. The results were catastrophic then and
won’t lead to a happy outcome today.
France, Spain, Portugal, Greece, Italy and
others are boosting levies on all sorts of things,
while making minimal structural reforms to
their bloated public sectors and their antigrowth
regulations. Japan is an even worse oender. Its
tax-increase binge is one of steroidal proportions.
It’s no surprise Japan’s economy is careening
into recession. Its third-quarter GDP crashed to
an annual rate of –3.5%.
All of this self-destructive activity makes
our own leaders’ performance more bizarre. We
have a President whose party’s policymakers
supposedly worship Keynes. Yet they are pushing
for tax increases that would make Keynes cringe.
Any solution to the fiscal cli involving tax
boosts of any sort should be fiercely resisted. Any
promises of genuine spending cuts will prove
to be illusory, as they always do. But burdening
investors and capital creators even more is self-

defeating when it comes to economic growth.
Republicans should stop fighting on
Democratic turf. Instead they should
immediately come up with vigorous pro-growth
proposals and proclaim 24/7 that the debate
should be about how we expand the
economy quickly and substantially.
There’s no secret as to how to do
that: institute sound money, lower
tax rates, dismantle the Frankenstein
horror of Obama Care and halt the
blizzard of regulations soon to come
from the EPA, financial regulators,
the FCC and numerous other
government bodies. Republicans
should endorse the concept of a flat
tax as the goal of tax simplification—
if you make money, you pay on it.
The GOP should quickly print a booklet of
exciting Reaganesque ideas and wave it at every
opportunity as Mao’s followers did with the
Chairman’s Little Red Book decades ago.
Republicans must repeat this mantra: Don’t
fight by White House rules; fight by optimistic,
dynamic and very American Ronald Reagan-
like rules.
WHERE IS KEYNES
WHEN WE NEED HIM?
BY STEVE FORBES, EDITOR-IN-CHIEF
Another fiscal cli looms in March. Once again

we will hit the national debt ceiling, which will
have to be raised. The GOP will want to enact a
price of slower spending. This is always a loser
for Republicans because they’re easily portrayed
as willing to stop payments for Social Security,
Medicare and everything else people hold dear.
The GOP should move to enact another way
to brake spending. Instead of a ceiling, they
should go for spending as a percentage of GDP.
David Malpass and others argue that such a
change can be both eective and a political
winner, even if the Senate and the President
block it for now.
F
Fiscal Cli II
JANUARY 2013 FORBES INDONESIA | 11
SENTUL CITY
L I F E S T Y L E L U X U R Y Q U A L I T Y
A S M A R T I N V E S T M E N T
W W W . H A B I T U R E . C O M
S E N T U L C I T Y, I N D O N E S I A
SENTUL CITY JAN 2013.pdf 1 12/14/12 3:04 PM
12 | FORBES INDONESIA JANUARY 2013
pUBlisheR’s letteR
JUsUF WAnAnDi — vice chAiR, BoARD oF tRUstees, csis FoUnDAtion
been relatively successful. Repeated
crises have shaken the system at
rising frequency and severity as
great economists such as Joseph
Schumpeter and John Maynard

Keynes and many before and after
them have pointed out. Yet the system
always comes out with renewed vigor,
albeit with diminished credibility.
Capitalism is sparsely equipped
with measures of social justice.
It relies instead on competitive
mechanisms that reeks of “the survival
of the fittest” paradigm. It also leaves
great mass of citizens with little of
the spoils as recently documented
by economists Emmanuel Saez
and Thomas Piketty, whereby the
top 1% income earners garner a
disproportionate national income.
To mitigate the apparent injustice of
capitalism, governments put in place
welfare mechanisms at dierent
levels to compensate, with varying
rates of success. In parallel, the state
turns increasingly social by claiming
a larger and larger share in aggregate
expenditure, again of course more so
in one country than in others.
In the 21st century the state has
to face an increasingly complex set
of problems. Some of them, such
as globalization, have haunted
governments for a long time. But
others are new, such as the need to

adapt to the increasingly binding
limitation-carrying capacity of the
earth and climate change. The greater
the complexity of problems society
faces, the less eective the market
becomes and the bigger role the state
is expected to play.
In the Washington Consensus
of over 20 years ago the role of
the state in economic control and
production was reduced by way of
deregulation and privatization. In the
realm of people’s welfare its role was
reduced to the minimum. It is falsely
assumed that unleashing market
forces would produce a just outcome.
But crisis after crisis struck under
the Washington Consensus, and no
continent was spared. In the course of
time the Beijing Consensus has gained
in appeal as the state is accorded
a much more active role, national
dierences are respected and financial
self-reliance is deemed essential.
When the crisis hit at the core of
capitalism in 2008, the indispensabil-
ity of the state was vividly demonstrat-
ed by the manner with which it extin-
A
t the core of the forces

that drive human
development, and
improvement toward
perfection, are ideology
and human greed. Ideology is most
obvious in communism, which
determines how the human race and
the economy are organized—the state
or the party decides what, how and for
whom to produce. In most instances
this means state-run enterprises,
central planning and the egalitarian
communal reward system take center
stage. In practice it diers across
national borders as we have seen in
the Stalinist system, the workers’
self-management of the now defunct
Yugoslavia, the state-communal
synthesis of Hungary and the peasant
communism of China.
But in general the system is passé
except for one aspect that pertains
to distribution. Social justice is
the hallmark of communism and
remains relevant today. However, the
productive part of communism has
been a failure, as it is proven unable to
deliver what the people need for the
advancement of life. In the end, there
was nothing to distribute and as such

the system as a whole collapsed.
Capitalism, or more accurately
now the market system, where
personal and individual interests are
paramount and define the system,
has been tested out for a much
longer period and in general has
WHAT STRATEGY SHOULD INDONESIA
SET FOR ITS FUTURE?
JUSUF WANANDI IS A SENIOR FELLOW OF THE CENTRE FOR STRATEGIC AND INTERNATIONAL STUDIES CSIS, AND THE COFOUNDER AND VICE CHAIRMAN OF THE CSIS FOUNDATION,
BOTH BASED IN JAKARTA. HE HAS WRITTEN AND EDITED EXTENSIVELY ON INTERNATIONAL ISSUES.
JANUARY 2013 FORBES INDONESIA | 13
guished the flame of the crisis. Its role
is going to be even more critical in
solving the debt crisis which is partly
the consequence of the banking crisis
of 2008. Whatever the chosen solu-
tion it is bound to leave a political di-
vide in both the European Union and
the U.S. with unknown consequences
to the world economy.
Needless to say, a dierent kind
of discourse on the role of the state
is taking place in China. Through the
central and provincial governments
and state-owned enterprises, the state
has been playing a dominant role in
the making of the “Chinese miracle,”
perhaps the greatest event in recent
human history. Sustainability of state-

led strategy is anything but assured in
an environment of demassifying and
decentralizing technology changes,
social media being a prime example.
Hence, the state-led strategy is also at
a crossroads.
Emerging out of the ashes of co-
lonialism, Indonesia opted almost by
necessity for a Fabian-type of eco-
nomic constitution. Seeking to prac-
tice a third way with socialist lean-
ings, it crawled on a Sisyphean path
with a deep trough in the mid-1960s,
after which a crisis opened a win-
dow for market-friendly reforms that
almost instantly attracted a big wave
of foreign direct investment. Flow-
ing with the Washington Consensus a
big-bang deregulation was launched
in the 1980s. Ironically, it ended up
in the crisis of 1997-1998 marked by a
period of anarchy, misery, poverty, and
social strife. Economically bankrupt
Indonesia had no choice but to sell
some state-owned enterprises and a
large number of private enterprises to
international investors.
Indonesia has recovered economi-
cally and has ascended with stability
toward democracy at a painstaking

pace after 40 years of autocracy. It is
now placed by international investors
in a respectable position. However, as
the nation regained strength prob-
lems of nationalism also rose—partly
as a reaction against globalization—as
they also do across the globe. Here,
many Indonesians resent outsiders
owning assets considered critical to
basic needs such as staple food, vital
infrastructure, oil, natural gas, coal
and other natural resources. Rising
inequality, which is one of globaliza-
tion’s ugly sides that is exacerbated by
rampant corruption, abuses of politi-
cal and market power and its associ-
ated rent-seeking practices, fuels na-
tionalism even more.
Forbes Indonesia subscribes to the
capitalist approach or method for the
pursuit of human happiness and is
willing to participate actively in the
debate on Indonesia’s future develop-
ment and modernization. A shared
modernity in Indonesia requires a
trinity of reforms. First, to sustain an
inclusive growth a more explicit lean-
ing on market mechanisms is needed.
MANY INDONESIANS RESENT OUTSIDERS
OWNING ASSETS CONSIDERED CRITICAL TO

BASIC NEEDS SUCH AS STAPLE FOOD, VITAL
INFRASTRUCTURE, OIL, NATURAL GAS, COAL
AND OTHER NATURAL RESOURCES
Second, to glue society with a com-
mon endeavor for a better tomorrow,
inclusive measures of social protection
are needed as well as social protection
that must be as market-conforming as
possible. Third, to balance the market
and inclusive measures the proper role
of the state needs continuous align-
ment that focuses on aiding citizens to
accelerate attainment of better health,
access to educational facilities and ac-
quisition of entrepreneurship skills or
social capital.
Simultaneous progress in the
trinity of reforms or a grand policy
coherence is the core challenge of
Indonesia’s medium-term policy as it
works itself up to become an upper-
middle income nation. Assuming
Indonesia progresses, it will then have
created an escape velocity in ways
many in East Asia have in the past.
F
14 | FORBES INDONESIA JANUARY 2013
AUTO ONE
P
T Auto One Group, the ocial

authorized dealer of the brand
and also, the biggest dealer of
Chrysler in Indonesia, is having
a stellar performance and is looking
beyond expansion but also catering
to the needs of its premium car own-
ers, whom can be very demanding.
“As the authorized dealer, we’re
always looking to cater our custom-
ers with the most complete collection
for their needs and the best service in
town,” Wisly Jayadi, the branch man-
ager of Chrysler Pondok Indah under
Auto One, said.
Chrysler has 5 branches in Jakarta
, namely: Chrysler Pondok Indah ,
Slipi, Jatiwaringin, Kelapa Gading,
Gatot Subroto, but the Pondok Indah
branch in Jalan Sultan Iskandar Muda,
operated by Auto One is the most
complete of them all. The number
of Chrysler dealers will continue to
expand to meet demands.
The dealership sells Completely Built
Up (CBU) cars imported all the way
from the heart of the United States
automotive capitol in Detroit. The
cars available ranges from, the Chrys-
ler 300C, various Jeep variants, and
Dodge Journey SUVs.

“In an agrarian country like Indone-
sia, big cars are the preferred way to
travel. In this case, the Jeep stands
out. But, it is not always about size.
We also have the elegant luxury
sedan Chrysler 300C and the 300C
SRT-8, and the Dodge models which
are suitable for daily use,” he said.
The Chrysler price starts at Rp 1.1
billion, the Jeep starts at Rp 600 mil-
lion, while Dodge is priced around Rp
500 million.
Wisly said that Jeep is the best seller
here due to its heritage as a durable
all terrain military car.
As for the Chrysler and Dodge, he
added that the models are better
than its competitors in their respec-
tive classes because of its price-to-
performance value.
“A good family man would say
Dodge Journey Platinum is the best
choice for the whole family because
it combines luxurious interior and
an ALPINE Premium Sound System
which will make you feel like home. It
also comes with a sophisticated GPS
navigation,” Wisly said.
“The Chrysler 300C features an el-
egant and masculine design. Its Pen-

tastar 3.600 cc V6 engine is capable
of generating a powerful 286 horse
power. Driving this car will boost
your confidence and will certainly
makes you the center of attention,”
he added.
For Chrysler and Auto One, customer
satisfaction is greater than sales fig-
ures. Wisly said the aftersales service
covered your standard home pickup
SPECIAL ADVERTISING SECTION
Chrysler Indonesia
Chrysler, the Detroit-based car manufacturer, ocially debuted in Indonesia in 2011
and it has made a strong statement in a market still dominated by Japanese and
European players. Chrysler is here to stay.
JANUARY 2013 FORBES INDONESIA | 15
AUTO ONE
P
T Auto One Group, the ocial
authorized dealer of the brand
and also, the biggest dealer of
Chrysler in Indonesia, is having
a stellar performance and is looking
beyond expansion but also catering
to the needs of its premium car own-
ers, whom can be very demanding.
“As the authorized dealer, we’re
always looking to cater our custom-
ers with the most complete collection
for their needs and the best service in

town,” Wisly Jayadi, the branch man-
ager of Chrysler Pondok Indah under
Auto One, said.
Chrysler has 5 branches in Jakarta
, namely: Chrysler Pondok Indah ,
Slipi, Jatiwaringin, Kelapa Gading,
Gatot Subroto, but the Pondok Indah
branch in Jalan Sultan Iskandar Muda,
operated by Auto One is the most
complete of them all. The number
of Chrysler dealers will continue to
expand to meet demands.
The dealership sells Completely Built
Up (CBU) cars imported all the way
from the heart of the United States
automotive capitol in Detroit. The
cars available ranges from, the Chrys-
ler 300C, various Jeep variants, and
Dodge Journey SUVs.
“In an agrarian country like Indone-
sia, big cars are the preferred way to
travel. In this case, the Jeep stands
out. But, it is not always about size.
We also have the elegant luxury
sedan Chrysler 300C and the 300C
SRT-8, and the Dodge models which
are suitable for daily use,” he said.
The Chrysler price starts at Rp 1.1
billion, the Jeep starts at Rp 600 mil-
lion, while Dodge is priced around Rp

500 million.
Wisly said that Jeep is the best seller
here due to its heritage as a durable
all terrain military car.
As for the Chrysler and Dodge, he
added that the models are better
than its competitors in their respec-
tive classes because of its price-to-
performance value.
“A good family man would say
Dodge Journey Platinum is the best
choice for the whole family because
it combines luxurious interior and
an ALPINE Premium Sound System
which will make you feel like home. It
also comes with a sophisticated GPS
navigation,” Wisly said.
“The Chrysler 300C features an el-
egant and masculine design. Its Pen-
tastar 3.600 cc V6 engine is capable
of generating a powerful 286 horse
power. Driving this car will boost
your confidence and will certainly
makes you the center of attention,”
he added.
For Chrysler and Auto One, customer
satisfaction is greater than sales fig-
ures. Wisly said the aftersales service
covered your standard home pickup
SPECIAL ADVERTISING SECTION

Chrysler Indonesia
Chrysler, the Detroit-based car manufacturer, ocially debuted in Indonesia in 2011
and it has made a strong statement in a market still dominated by Japanese and
European players. Chrysler is here to stay.
Chrysler Indonesia
Aims Beyond Growth
service and a 24 hours towing ser-
vice, and other perks that you would
not find anywhere else.
“Starting next year, for every pur-
chase of our car in Auto Onedealers,
the customer will be given a JK One
membership card. This card would
provide the customers with discounts
in our selected partners and even free
valet service in Jakarta’s high end
malls,” he said.
According to Wisly, this card is more
than just discounts oers, but also a
community identity which shows that
you are a Chrysler, Jeep, or Dodge
owner. “Be prepared to participate in
our events next year”.
Auto One is preparing events for the
community, which will include gath-
ering, o road, and charity.
Chrysler Pondok Indah
Jl. Sultan Iskandar Muda No. 79E
Arteri Pondok Indah
Jakarta Selatan

Phone: (021) 700 11111
Auto One Group
Jl. Letjen S Parman Kav 72 ,
Jakarta Barat - Slipi
Menara Citicon Tower Lantai 3
Phone: (021) 2930 8684/5
(021) 68889761
www.autoonegroup.com
16 | FORBES INDONESIA JANUARY 2013
ReAlitY check
JAmes kAllmAn
lieve he has loftier goals to play a role
on a global stage. With a natural flair
for statesmanship, it would come as no
surprise to see him as a member of an
“eminent persons” group in the future.
As we begin 2013, a man whose
political star is in the ascendency is
the new Jakarta Governor Joko Wido-
do, or Jokowi as he is more familiarly
known. The ex-mayor of Solo brings a
freshness and vitality to his new posi-
tion. It remains to be seen how long
this will hold true before frustration
erodes his resolve to tackle Jakarta’s
seemingly insoluble problems. It is
worth noting though that few gave
him a chance of achieving much when
he was elected mayor of Solo back in
2005—how wrong they were.

With the perspective of a
businessman rather than a politician,
Jokowi built on observations he made
during his trips to Europe. Noting
how each city made the most of their
cultural heritage, he determined that
Solo could do the same. Melding
the talents of both citizens and the
business sector, his administration
succeeded in creating a sense of civic
pride that was rewarded when Solo
played host to the Organization of
E
ach New Year brings
great hopes that this
time around things re-
ally will be dierent and
for once we will live up
to our lofty resolutions. All too often,
though, these are made in the heady
spirit of the holiday season, a conquest
of idealism over practicality and thus
a ready-made recipe for failure in a
non-perfect world. Perhaps we should
instead look at the alternative mean-
ing of resolution, the sense of solving
problems of which we are already well
aware and through practical means.
In the U.S., of course, we have a
good idea of what 2013 will look like.

For as the days dwindle down towards
the year end “fiscal cli” deadline, the
two sides are still at odds over what
constitutes a balanced approach to-
wards the budget deficit. To many, it
seems incongruous that this game of
Russian roulette with the U.S. econo-
my continues. Certainly businessmen
are in disbelief, for such irresponsible
inaction on their behalf would lead to
severe sanctions from stakeholders.
With only some 18 months left
in oce, it is interesting to speculate
what legacy President Susilo Bambang
Yudhoyono will have, such as a bridge
linking Sumatra and Java, for example.
The President is viewed by some as
the “founding father” of Indonesian
democracy. He is the first to be demo-
cratically elected in two terms and will
hand over the oce to an elected suc-
cessor. Perhaps he will be content to
be remembered for his initiatives to
improve the transparency and account-
ability of government. Yet others be-
NEW YEAR  NEW APPROACH
OR SAME OLD STORY
THE PRESIDENT IS VIEWED BY SOME AS
THE “FOUNDING FATHER” OF INDONESIAN
DEMOCRACY. HE IS THE FIRST TO BE

DEMOCRATICALLY ELECTED IN TWO TERMS
AND WILL HAND OVER THE OFFICE TO AN
ELECTED SUCCESSOR
JAMES S. KALLMAN IS A SENIOR PARTNER OF GLOBAL ACCOUNTING AND CONSULTING FIRM, MAZARS. A 30YEAR VETERAN OF EMERGING MARKETS, JAMES IS ALSO THE
PARTNERINCHARGE OF MAZARS’ GLOBAL EMERGING MARKETS PRACTICE.
World Heritage Cities conference
in 2008. Of course, the nation’s
capital oers greater challenges,
especially with its annual flooding
and its infamous macet (trac
jams). Seeking firsthand knowledge,
Jokowi looks unlikely to make hasty
decisions, as shown by his request for
clarity on the loan repayment to fund
the proposed Jakarta MRT Project.
Such a businesslike approach to
ensure payment will not hang like
millstones round the necks of the next
generation is certainly new. Whether
this will lead to an aordable and
eective public transport system for
Jakarta is another matter. After all, it is
only the start of another new year.
F
JANUARY 2013 FORBES INDONESIA | 17
LIPPO CIKARANG
LIPPO CIKARANG JAN 2013 EDIT.indd 1 12/12/12 5:23 PM
18 | FORBES INDONESIA JANUARY 2013
FResh thoUght
tAUFik DARUsmAn

Hatta Rajasa face an even bleaker
future than they already do. For the
record, all six Indonesian presidents
are Javanese except for B.J. Habibie,
which may or may not explain his
shortlived presidency (17 months).
INES says non-Javanese should
consider being a vice presidential
candidate, but only if coupled with a
Javanese presidential candidate.
In the same month a survey by
the Indonesia Youth Alliance for
Change (API) showed that the young
generation want Jakarta Governor
Joko Widodo (aged 52), better
known as Jokowi, to be the next
president. If that may not be possible,
then Dahlan Iskan (62) or Mahfud
MD (56), if not Prabowo Subianto
(62) or even Jusuf Kalla (71), would
do. API did not oer to explain how
60 plus leaders can be expected to
bring much change to the country.
Then early in December the
Institute Survei Indonesia (Indonesia
Survey Institute or INSIS) announced
that a polling across all 33 provinces
showed a majority (86.5%) wish to
see the 2014 election as a chance for a
“regeneration of national leadership.”

Respondents selected under-55
political leaders such as Priyo Budi
Santoso (Golkar), who is their rst
choice, followed by Pramono Anung
from PDIP, Hidayat Nur Wahid
(PKS), Puan Maharani (PDIP), Anas
Urbaningrum (PD) and Luthfi Hasan
(PAN) to be their next leader.
With all pollsters claiming to
use standard methodology but
arriving at dierent results, it is
small wonder that they have come
under heavy criticism. The executive
director of the Institute of Soekarno
Hatta Economics and Politics Hatta
Taliwang accused them of bias. The
latest LSI survey, he said, represents
“certain political interests.”
Prominent historian of the state-
run Indonesian Institute of Sciences
(LIPI), Asvi Warman Adam, has also
noted that surveys fail to rank credi-
ble figures such as antigraft body chief
KPK Abraham Samad, Chairman of
the Regional Representatives Council
Irman Gusman and Muhammadiyah
chairman Din Syamsudin.
Both Hatta and Asvi stopped short
from saying commercial interests and
political agendas lie behind the

pollsters’ surveys. What is clear is that
the public and media are captivated
by surveys—despite the pollsters’
dwindling reputation. To many, it
seems, what borders on political
shamanism will do in the absence of a
better credible reference.
F
I
f the 2014 presidential elec-
tion had been held a few
months ago, Indonesia
would have at least four dif-
ferent persons at the helm
of the nation—or so according to
pollsters. For in late November the
Indonesia Survey Institute (LSI)
conducted a poll of 223 business-
men, retired generals, and what they
describe as “opinion leaders,” on the
2014 presidential candidates. Con-
stitutional Court chief Mahfud MD
took the top place, followed by for-
mer Vice President Jusuf Kalla, State
Owned Enterprises Minister Dahlan
Iskan, former Finance Minister Sri
Mulyani and former People’s Con-
sultative Assembly (MPR) Chairman
Hidayat Nur Wahid.
Also in November, a survey of

voters by the Indonesia Network
Election Survey (INES) showed the
chief patron of the Great Indonesia
Party (Gerindra) Prabowo Subianto
would be the next president. Arguing
that primordialism sways voters’
minds, INES said 59% insisted on a
Javanese for a president. That being
the case, 33% wanted Prabowo as the
next president, with former President
Megawati Soekarnoputri (22.2%),
First Lady Ani Yudhoyono (7.1%),
Coordinating Minister for Political,
Legal and Security Aairs Djoko
Suyanto (9.3%) and the First Lady’s
brother, Pramono Edhie Wibowo
(8.8%), trailing behind him.
Thus non-Javanese presidential
aspirants such as Aburizal Bakrie,
Surya Paloh, Akbar Tanjung and
IN THE PRESENCE OF
POLITICAL SHAMANS
TAUFIK DARUSMAN IS ONE OF INDONESIA’S MOST EXPERIENCED JOURNALISTS. HE HAS HELD CHIEF EDITOR ROLES AT BUSINESS WEEK INDONESIA AND INVESTOR MAGAZINES,
AND THE INDONESIAN OBSERVER NEWSPAPER.
JANUARY 2013 FORBES INDONESIA | 19
BRI
BRI JAN 2013 EDIT.indd 1 12/20/12 7:18 PM
20 | FORBES INDONESIA JANUARY 2013
Beauty Market
L’Oréal has picked Indonesia as home of its largest plant in the world,

which it hopes to help with its regional ambitions as well.
BY GLORIA HARAITO
L’Oréal’s new factory in
Cikarang, West Java.
BAY ISMOYO / AFP / GETTY IMAGES
JANUARY 2013 FORBES INDONESIA | 21
FORBES INDONESIA
COMPANIES & PEOPLE
L’ORéAL
M
any international investors
come to Indonesia in
search of commodities or
cheap labor. Not the French cosmetics
giant L’Oréal. It sees Indonesia has
an important domestic market and
also a base to export to the rest of
Southeast Asia. To that end, L’Oréal in
November opened its biggest cosmetic
plant in the world, out of 43 around
the globe, in an industrial estate in
Jababeka, West Java. The cost? The
66,000 sqm plant took two years and
€100 million to build.
“Today we see L’Oréal make
Indonesia its production base for Asia
Pacific,” says Chatib Basri, head of the
Indonesia Investment Coordinating
Board. He was one of a throng of
VIPs that attended the opening

ceremony of the plant in November
that included the Industry Minister
Mohamad S Hidayat and L’Oréal’s
Executive Vice President Asia Pacific
Zone Jochen Zaumseil. Also on
hand at the opening ceremony were
L’Oréal brand ambassadors Dian
Sastrowardoyo and Laudya Chintya
Bella, along with about 1,000 other
guests. The gala opening ceremony
included speeches by the dignitaries,
followed by some entertainment
and a tour of the new facility, which
claims to be environmentally friendly
with low CO2 emissions. Besides
production, this plant will also
Jochen Zaumseil
OSCAR SIAGIAN FOR FORBES INDONESIA
BAY ISMOYO / AFP / GETTY IMAGES
conduct research and development
and be a training facility.
The expansion cannot be sepa-
rated from the L’Oréal’s goal to be
number one in Asia Pacific market
within the next three years. “Current-
ly, Indonesia is the fifth biggest coun-
try in terms of sales of L’Oréal in Asia
Pacific. We are expecting Indonesia
become the third biggest country in
the near future. Indonesia’s cosmetics

industry is very promising, otherwise
we would not be here. L’Oréal is not
investing for the short term but for the
long term,” says Jochen Zaumseil.
Indonesia’s promising market
is also reflected on L’Oréal’s global
performance. From January to
September 2012, L’Oréal SA had €7.16
billion in revenues, up 11% from the
same period in 2011. Asia Pacific sales
contributed €3.19 billion, up 21% and
the highest growth in the world on
a regional basis. The rapid growth
of the middle class in Indonesia is
also a reason for L’Oréal to expand
here, with L’Oréal targeting to add
22 | FORBES INDONESIA JANUARY 2013
FORBES INDONESIA
COMPANIES & PEOPLE — L’ORéAL
60 million new customers in the
coming years. The new plant will
focus on producing skin care and hair
care products under brands L’Oréal
Paris and Garnier. About 30% of the
products will be sold to the domestic
market, while the most will go to the
export market.
L’Oréal has a long history in
Indonesia. Guy Laroche and Cacharel
perfume were the first products that

were introduced in 1979. Seven years
after that, in 1986, L’Oréal cooperated
675,000
People
rp 9.8 trillion
Jan-Oct 2012
DOMESTI
C S
ALES
rp 3.9 trillion
EXPORTS
Jan-Oct 2012
160
Manufactures
SHINING BEAUTY
INDONESIA’S COSMETICS INDUSTRY IS EXPERIENCING FAST GROWTH.
with local cosmetics maker PT
Mustika Ratu Tbk to set up plant in
Ciracas, East Jakarta, under name
PT Yasulor Indonesia.
With the opening of the new plant,
L’Oréal shut down facilities in Ciracas
and moved all the employees to Ja-
babeka. The new Jababeka plant will
accommodate 800 workers, almost
two times that of the previous plant.
Moving locations was a big challenge
for the employees, who were incentiv-
ized with a special house ownership program. L’Oréal oered to subsidize
the cost of buying their own homes by

50%, if the employee stays with the
company for three years. At present,
as many as 75% of L’Oréal Indonesia
employees don’t have a house. As a
result of this generous program and
other steps, L’Oréal managed to retain
96% of its employees.
Although the Indonesian cosmetics
market is promising, it is also not with-
out challenges. Imported products have
increased competition. “To be competi-
tive, we strive to make our products
accessible, innovative, aordable, and
oer added value and diversity,” says
Jochen. One way to diversify is to cre-
ate special products for the local mar-
ket, such as Garnier Light Complete, a
special whitening cream.
Another point of dierentiation is
to use local ingredients as much as
possible. “Currently, we use local raw
materials in as much as 55% [of our
products] and we are expecting to
increase that to 75%,” says Jochen. A
higher use of local ingredients will also
help L’Oréal to lower prices as well.
F
Workers packaging L’Oréal products.
Source : Industry Ministry and Trade Ministry
BAY ISMOYO / AFP / GETTY IMAGES

”Indonesia’s cosmetics
industry is very
promising, otherwise
we would not be here.
L’Oreal is not investing
for the short term but for
the long term.”
JANUARY 2013 FORBES INDONESIA | 23
BAY ISMOYO / AFP / GETTY IMAGES
BW PLANTATION
P
T BW Plantation Tbk is
an Indonesia palm oil
plantation company with
primary business activities
in developing, cultivating, and
producing Crude Palm Oil (CPO)
and Palm Kernel from Fresh Fruit
Bunches (FFB). The company
manages eight subsidiaries; four
are located in Central Kalimantan,
two in West Kalimantan and two
in East Kalimantan. The company
currently has 3 palm oil processing
facilities with a total capacity
of 135 tones FFB per hour. The
company listed its shares on the
Indonesia Stock Exchange (IDX)
on October 27th 2009.
BW Plantation has an experienced

management team comprised
of experienced and dynamic
personnel with successful track
records in managing the business.
The company employs more than
10.000 employees. Management
is actively mentoring the next
generation of leaders to ensure
continued growth and the
maximum utilization of assets.
Growing Into The Future.
The Company and its subsidiaries
operate land bank of
approximately 105.000 hectares
located in West, Central and
East Kalimantan. Out of which,
approximately 64 thousand
hectares is planted, and the
balance comprises land bank for
future expansion. The majority of
the mature oil palms are in early
prime age. The mature area will
increase significantly in the future
as only 43% of the total planted
area is matured.
Combination of Industry Best
Practices Application and
Technology for the Future.
BW Plantation believes that
the application of industry

best practices and plantation
techniques such as maintaining
vegetation to maintain the soil,
mechanization of harvesting
and collection and fertiliser
application results in higher FFB
yield for the company.
The combination of up to date
machinery, innovative technology,
timely delivery of FFB to the mill
and vigilant management
also improves the quality of
the oil we produce.
Corporate Social
Responsibility (CSR).
As BW Plantation has grown,
the CSR program has been
part of the company strategy
to maintain sustainability.
BW Plantation has a strong
commitment to community
development through the CSR
program which focuses on
education, the environment, and
employment opportunities for
the local people who live around
the plantations.
Good Corporate Governance.
BW Plantation is committed
to improving company values

through the implementation of
GCG with the active participation
of all employees.
The GCG principles are
transparency, independence,
integrity, accountability,
responsibility and fairness.
special advertising section
The Future is
“A Successful Step Forward”
PT BW Plantation Tbk
Menara Batavia 22
nd
Floor
Jl. KH Mas Mansyur Kav.126
Jakarta 10220
BW PLANTATION ADV JAN 2013 1HALAMAN.indd 2 12/20/12 4:35 PM