Gender Awareness Training

Socio Gender Constructive
In this session, we are going to learn about the Gender Concept as a socio construction, and about different thing between gender and sex. We may see the important question below.
How the society influence the perception about male and female?.
Why the culture can influence the habits of male and female? Its possible to change our perception about masculinism and feminimism in order to gain healty gender.

# Definition
Sex and Gender – Sex refer to the biological characteristics that catagories someone as either female and male; whereas gender refers to the society determined ideas and practices of what it is to be female or male.
In example
Female can give a birth but male can’nt this is true and that why distinquished about sex.
Female can cook and male can’nt this is false because female and male can cook, female are advised to cook coused by the society decided them to cook.
This is what we call as Gender

# AusAID Gender Policy

• From the viceversa issue of overarching.
• The purpose is to decrease a number of poorness with equal gender developed and right for female.
• Increase a female economically.
• Equal participation in decision making and leading, including in tough situation and conflict.
  Incresing a suit healty and education for male and female, boy and girl.
• Improving a gender stratety in district relationship.
  

# Four Demention of Gender Strategy
- Access
- Decision Making
- Women Right
- Improving Gender Strategy

# The Four A’s Strategy
Availability
Accountability / Adaptability
Accessability
Acceptability

Read more!

George Soros to invest in oil palm sector in Aceh

One of the world's best-known fund managers, George Soros, plans to invest in the oil palm plantation sector in Nanggroe Aceh Darussalam, its governor, Irwandi Yusuf, said Thursday after meeting with Soros in New York recently. "He said that he was interested in developing an oil palm plantation of about 20,000 hectares during the first stage.

This kind of investment could feed around 2,500 families in Aceh," Irwandi said as reported Thursday by Antara. The governor could not put a precise figure on the investment, or the likely timeframe.

However, he promised that his administration would work hard to help Soros realize the plan. "Both sides will immediately get to work on ensuring that this investment plan is realized," Irwandi said. Soros is best known for his famous bet against sterling as Britain was forced to pull its currency out of the European currency grid in 1992.

This eventually earned Soros an estimated US$1.1 billion. Following this, he was dubbed "the man who broke the Bank of England." During the 1997-1998 Asian crises, his name was repeatedly linked to speculation that led to the devaluation of Southeast Asian currencies, although he consistently rejected the accusations. Then Malaysian prime minister Mahathir Mohammad was particularly strident in making accusations against Soros.

With an estimated net worth of around $8.5 billion, he is ranked by Forbes magazine as the 80th-richest person in the world. A Hungarian-born U.S. citizen, Soros is said to have started investing in Indonesian companies in 1999, buying shares in investment firm PT Bhakti Investama and PT Agis, which is a distributor for 14 household and electronic brands, such as Sony, Toshiba, Philips, Goldstar and RCA.

Currently, he is the chairman of Soros Fund Management and the Open Society Institute. Both institutions are heavily engaged in philanthropic activities. With the price of crude oil continuing to increase in the recent years, biofuel has become the most sought-after alternative energy source, with crude palm oil (CPO) being one of the main raw materials. Currently, Indonesia has the largest oil palm hectarage in the world, with 6.1 million hectares in Sumatra, Kalimantan, Sulawesi, Papua and, to a lesser degree, Java. "Aceh has a vast land area with a lot of potential, especially in the oil palm sector.

However, we do not have the money to develop this potential," Irwandi said. Attracting foreign investment has been one of Irwandi's main tasks since he was elected governor in Aceh's first democratic local election in February this year. In the current era of peace and recovery following 32 years of civil unrest, as well as the 2004 tsunami disaster, Aceh is opening up its arms to investment, especially in the energy, mining, agricultural and fisheries sector.

In 2005, oil palm plantations in the province produced nearly 250,000 tons of CPO from an area of 163,000 hectares. Investment procedures in Aceh have improved since the establishment of the Aceh One-Stop Investment Service (KPTSP), where business permits can be processed within 7 working days at the latest.

Read more!

Aceh province seeks expertise from UN in India

Inspired by the networks of development practitioners facilitated by the United Nations in India under its Solution Exchange initiative, the tsunami-hit Aceh region of Indonesia has reached an agreement with the United Nations Country Team in India to seek expertise for establishing similar networks for disaster recovery and rehabilitation.

A Memorandum of Understanding was signed on 20 August in New Delhi by the Governor of Aceh Province representing the agencies for recovery and rehabilitation in Aceh region and the UN Resident Coordinator in India.

After the signing of the MoU, the Governor of Aceh Province, Dr. Irwandi Yusuf commented, “Earlier I had five advisors to provide me with policy making advice and now, with the establishment of Solution Exchange Communities of Practice, I will have five million advisors with me in Aceh.”

The United Nations Country Team’s Solution Exchange concept which was established in India in 2005 now has eleven Communities of Practice, offering development practitioners in India a forum for sharing knowledge and experience of development challenges in pursuit of the MDGs. This knowledge management partnership of the UN in India has offereds expertise and experience to assist in the development of the Solution Exchange model to foster communities of practice in Aceh and Nias.

At the signing of the MoU the Resident Coordinator for UNCT India, Dr. Maxine Olson said: “The UN in India has been very enthusiastic about Solution Exchange as a new role for the various UN agencies that taps its convening power and offers an impartial space for practitioners to share knowledge and experience. We are sure that the operations in Aceh and Nias will find these networks to have the same effect, and will add more value to the rehabilitation and reconstruction work of the UN Agencies in Indonesia.”

The Solution Exchange initiative in Aceh and Nias which will be initiated in November 2007, will catalyze in multi-level coordination in recovery and rehabilitation efforts, minimizing gaps, providing linkages and strategic policy advice.

Read more!

Aceh Inviting Foreign Investors

First Democratically-Elected Governor thanks Americans for supporting tsunami relief and presents future of job growth and economic development in Aceh
NEW YORK -- The American Indonesian Chamber of Commerce and the Building Bridges to the Future Foundation, Inc. today announced the beginning of Governor Irwandi Yusuf's visit to the United States.
"After 30 years of conflict and the devastating tsunami in December 2004, the people of Aceh are at an important cross-road that will determine success for future generations," said Sara Henderson, President of the Building Bridges to the Future Foundation. "For the first time in their history, the people of Aceh have a democratically- elected leader who will vigorously represent their interests in recovery and in sustainable economic development to create jobs."
"Aceh is open for business and the US is already their largest trade and investment partner," declared Wayne Forrest, President of the American Indonesian Chamber of Commerce. "Irwandi's vision for Aceh is to create jobs and encourage economic development. He is in the US to promote Aceh's world-famous Sumatran Arabica coffee beans, significant palm oil resources that can be produced into biodiesel, and his commitment to environmental policies that will generate carbon credits that can be sold to carbon-generating countries like the US."
Following is Governor Irwandi's schedule of events in the US, as of September 9th. He is accompanied by a delegation of Aceh business leaders and the Aceh Investment Office

Read more!

Business Regulation In Indonesia / Aceh

Doing Business in Indonesia
Business Regulations

Indonesia is in the process of updating the country’s business regulations to make them competitive with the international business community. This chapter discusses briefly some of the most important regulations and useful information to consider in doing business in Indonesia. These are employment regulations; financial reporting and auditing requirements; intellectual property rights and land rights; stock and bond listing requirements and; regulations of the Jakarta Futures Exchange.
1. Employment Regulations
The Department of Manpower is the government agency that regulates employment practices in Indonesia. It supervises employment conditions, acts as mediator in labor disputes,operates training institutes, issues work permits to expatriates, sets minimum wages, and handles other human resources matters.
Hours of Work and Overtime Payments
The basic 40-hour workweek is comprised of eight-hour days Monday through Friday. Some offices, however, are open seven hours per day, Monday through Friday and five hours on Saturday. For overtime, labor regulations specify that from Monday to Saturday the first hour should be paid 1.5 times the basic hourly rate and two times the basic hourly rate for each additional hour. For Sundays and public holidays, overtime pay is two times the basic hourly rate within the considered normal working hours of the company, afterwards overtime pay is three times the basic rate for the first hour and four times the basic hourly rate for each additional hour.
Wage Rates
Indonesia has competitive wage rates for unskilled workers in Asia but considerable differences exist between industries and geographic locations. For example, wages in the oil sector are higher than those in the agriculture sector, and wages in urban Jakarta are higher than in rural Java and other islands.The Ministry of Manpower regulates the minimum wage for each province or city. For example, the Ministry issued a regulation setting the monthly minimum wage rate in Jakarta at Rp. 426,250 as of January 1, 2001.
Attachment 1, shown at the end of this chapter, contains a list of the current wage rates for 26 provinces in Indonesia.
Leave and Holidays
There are generally 13 paid public holidays in a year. Based on Government Regulation No. 21 Year 1954, employees are entitled to a maximum of 12 working days of paid annual leave. An employee is entitled to receive sick leave for a period of up to 12 months. A female employee is entitled to a three month paid maternity leave. Employees are also given paid leave for occasions such as the birth of a child (one-day) and a death in the family (two days).
Fringe Benefits
Indonesian workers are generally entitled to fringe benefits from their employers. Some of these are:
Payment of income tax due on salaries and wages;
An annual bonus of one month’s pay, usually paid at Lebaran (theannual Moslem festival);
Medical expenses; and
Travel and meal allowances.
Termination
It is a normal procedure for employers to have their new employees (for permanent employment only) undergo a three-month probationary period. During this three-month period the employers, at their discretion, can dismiss these new employees. However, after this three-month period, dismissal requires the permission of the Committee for Settlement of Labor Disputes of the Department of Manpower. Should permission be granted, the company is required to provide severance payment, merit payment or service payment to the terminated employee.
Employee termination as well as the calculation of severance pay, merit pay and service pay must comply with the manpower regulations, which currently refer to the Decree of the Minister of Manpower No.150/2000. The amount of the severance payment depends on the number of years of service. Therefore, the longer the period of service, the higher the severance pay as well as the merit pay and the service pay. The service pay varies from onemonth to seven months gross salary. However, in special cases, the payment of severance pay, merit pay and service pay can be higher than the above stipulation. Again, this depends on the agreement between the employer and employee.
With regard to employment termination, the common practice is to give an employee three written warnings prior to terminating service.
Social Security
The cornerstone of Indonesia’s social security system is known locally as “Jaminan Sosial Tenaga Kerja” (JAMSOSTEK). Companies that employ at least ten persons and have a payroll of at least Rp. 1 million a month must participate in an employee social securityprogram provided by PT JAMSOSTEK, a limited state-owned social insurance company. PT JAMSOSTEK provides benefits to employees for workplace accidents, death, health care and retirement. Employer and employee contributions to JAMSOSTEK vary by industry and program. Employees only contribute a share of their income to the retirement program; contributions for the other programs are borne exclusively by the employers. These rules arealso applicable to expatriates, however not mandatory, and they are allowed to withdraw their accumulated premiums when they leave the country.

Labor Unions
The Law on Labor Unions dated August 2000 describes workers’ rights to establish and develop a labor union that is independent, open, self-reliant, democratic and responsible. The Law further indicates that a labor union can be established by at least ten workers and grants unions the right to enter into collective labor agreements with employers and to represent workers in settling industrial disputes.
With the Government of Indonesia’s ratification of ILO Convention 98, any party is permitted to establish a trade union. At the company level there are thousands of trade unions. Membership in any trade union is not compulsory.

2. Financial Reporting and Auditing Requirements
Books of Accounts and Statutory Records
The Indonesian law requires business enterprises to maintain books and records in such a manner that their financial position may be determined at anytime. The Commercial Code requires that books and records be preserved for 30 years. On the other hand, tax lawrequires that records be kept for ten years.
Companies or taxpayers with basic mining contracts, production sharing contracts with Pertamina (the state oil and gas corporation), and those undertaking business activities in the cooperation areas of the Timor Gap - Zone A, may use English and the US Dollar fortax record-keeping and tax reporting purposes. PMA companies, permanent establishments (PEs) and taxpayers who are affiliates of foreign companies, can use English and the US Dollar for tax record-keeping and tax reporting purposes provided they obtain approval from the Minister of Finance.
Generally Accepted Accounting Principles and International Auditing Standards
In Indonesia, the Generally Accepted Accounting Principles (Indonesian GAAP) are referred to as Pernyataan Standar Akuntansi Keuangan or PSAK and the Indonesian Generally Accepted Auditing Standards (Indonesia GAAS) are referred to as Standar ProfesiAkuntan Publik or SPAP.
The PSAK and SPAP are promulgated and issued by the regulatory body of accountants in the country - the Indonesian Institute of Accountants. The BAPEPAM (Badan Pengawas Pasar Modal) referred to as the Capital Markets Supervisory Agency, or the country’sSecurities and Exchange Commission, also promulgates and issues regulations and rules on the accounting treatment for certain accounts and transactions of public companies. In addition, BAPEPAM issues industry-specific guidelines for publicly listed companies and themutual fund, broker-dealer and securities industries. The Indonesian GAAP primarily adopts International Accounting Standards and some of the US Statements of Financial AccountingStandards while the Indonesian GAAS adopts most of the Auditing Standards promulgated by the American Institute of Certified Public Accountants.
Filing/Reporting Requirements
Companies of identified industries are required to submit their annual audited financial statements to specified government regulatory agencies. Publicly listed companies have to submit their annual audited financial statements to BAPEPAM and the Jakarta or Surabaya Stock Exchange 120 days after the end of their fiscal year. These companies are also required to submit their annual audited financial statements to the Department of Trade andIndustry 180 days after the end of their fiscal year. Technically there are no explicit regulatory requirements to submit audited financial statements to the Tax Office, however, practically some tax officials will expect the taxpayer to attach a copy of the audited financialstatements with the annual tax return when lodged. During tax examinations, examiners will normally ask for the corporation’s annual audited financial statements if there are any.The table below summarizes the specified industries and companies that are required to file audited annual financial statements, and their submission deadline.

3. Intellectual Property Rights (IPR)
Indonesia is a member of the World Intellectual Property Organization and a party to the Paris Convention for the protection of Intellectual Property. Indonesia is also a signatory of the General Agreements on Tariffs and Trade (GATT) and to its subsidiary agreement, GATS. The government recognizes the importance of intellectual property protection, and has drawn up a number of bills increasing the protection of intellectual property rights. Indonesianow has laws covering Patents, Copyrights, and Trademarks.
Recently enacted laws include the Law on Protection of Plant Varieties (Law No. 29 Year 2000), Law on Trade Secrets (Law No. 30 Year 2000), Law on Industrial Design (Law No. 31 Year 2000), and Law on Layout and Design of Integrated Circuits (Law No. 32 Year 2000).
Copyrights
Law No 6 of 1982 as amended by Law No 12 of 1997 governs copyrights in Indonesia. The laws specify the items eligible for copyright protection and the corresponding sanctions forinfringements. It should be noted that these laws only protect foreign copyright owners if Indonesia acceded to one of the international copyright conventions or signed a bilateral treaty with the country that granted the copyright.
As of May 2000, Indonesia’s Directorate of Intellectual Property Rights has submitted three bills on copyrights to the House of Representatives. The bills deal with industrial design, integrated circuits and trade secrets. The government also proposes raising penalties for copyright violators from Rp. 100 million to Rp. 300 million as well as raising the maximum penalty to seven years imprisonment.
Patents
Law No 6 of 1989 as amended by Law No 13/1997 governs patents in Indonesia. Under the law, patents are classified into regular or simple. Regular patents are special rights granted by the government allowing an inventor or other parties to develop the new invention fora certain period of time. A patent is granted for a period of 20 years starting on the date the application for the patent is received. Simple patents are those inventions, products or methods of production, that do not qualify as new inventions. They are valid for ten years starting from the date when the Certificate of Simple Patent is granted.
Patent holders are allowed to use the patent only in Indonesia except if approved by the Patent Office for outside use. If a product is imported to Indonesia and an Indonesian patent already protects the process by which the relevant product is made, the holder of therelevant Indonesian patent for the process is entitled to take legal action in Indonesia against the manufacturer of the imported product.
Trademarks
Law No 19 of 1992 as amended by Law No 14/1997 governs trademarks in Indonesia. Individuals or companies use trademarks to distinguish their products from other similar products. The Trademark Office may reject the application for the registration of atrademark that is similar, in principle or in whole, to well- known trademarks belonging to other individuals or companies for goods and/or services of the same type.Application for trademark registration using a priority right, as regulated in the International Convention on the Protection of Trademarks, is to be filed in Indonesia no later than six months after the initial filing for trademark registration in another country which is either a signatory to the convention or a WTO member.

4. Land Rights
The Basic Agrarian Law of 1960 is the foundation of land laws in Indonesia. There are 11 land rights under this law. The following are the laws most relevant to an investor:

Right of Ownership (Hak Milik) is an inheritable right reserved for Indonesian citizens only. While legal entities are theoretically entitled to this right, in practice it is no longer issued to them. The right can be sold, exchanged, bequeathed or otherwise transferred.

Right of Exploitation (Hak Guna Usaha) is the right to use land for purposes of agriculture, fishing or cattle raising. The title may be held by PMA companies and may be used as collateral or security for financing purposes. Recent regulatory changes allow title to begranted for 35 years with a guaranteed extension of 25 years if the land is properly used and managed. Thereafter, assuming certain requirements are fulfilled, title can be renewed.

Right of Building (Hak Guna Bangunan) is the right to construct and own buildings on land. This is the right most commonly obtained by PMA companies. Recent regulations provide for an initial grant period of 30 years and guaranteed extension of 20 years. Thereafter, the right is renewable provided the land is used for the same purpose and all regulatory requirements are met.

Right of Use (Hak Pakai) is the right to use land for a specified purpose. The law prescribes the right of use for a period of 25 years with a maximum extension period of 20 years. It is commonly granted to representatives of foreign governments for construction of embassy buildings and to social, cultural and religious organizations. It has no collateral value to the holders and is not transferable.

Right of Lease (Hak Sewa) is similar to leasehold. Leasehold rights are normally granted to tenants of both residential and commercial premises. Foreign residents in Indonesia as well as foreign corporate representative offices are entitled to lease property. No law or regulation limits the duration of a lease.The government offers foreign investors land rights that are relevant to the nature of their business. Prospective buyers of land for any purpose should consult the local government authorities on land use, planning and zoning. Based on a Presidential Decree issued in June 1996, foreigners domiciled in Indonesia are allowed to own one residential property.To meet the regulations of ownership of a house or an apartment, a foreigner must be deemed to be “beneficial to national development” and must be either:

• An Indonesian resident (domiciled permanently in Indonesia) in possession of a permanent resident permit; or
• A non-resident (domiciled in Indonesia only at particular times) inpossession of appropriate visit and immigration stamps in his/her passport.

A foreigner can purchase or construct a house built only on land with the right of use (Hak Pakai), the right of use with the right of proprietorship, or the right of lease (Hak Sewa). An apartment can only be purchased by a foreigner on land with right of use (Hak Pakai). Foreigners are not, however allowed to purchase houses or apartments classified as “low cost housing” or “very low-cost housing”.
Ownership is limited to 25 years, and is extendible for another 25 years provided that the foreigner remains an Indonesian resident or meets the status requirements. If the foreigner departs from Indonesia, the property must be sold or transferred within one year after departure. If the foreigner or his family does not use the house for more than 12 consecutive years, then the foreigner forfeits the “being domiciled” status, for the purpose of owning residential property.

5. Stock Exchange Listing Requirements
The Capital Market Supervisory Agency (BAPEPAM) supervises, regulates and monitors, the activities of the Indonesian capital market, and protects the interests of the investing public. Indonesia has two stock exchanges, the Jakarta Stock Exchange (JSX) or Bursa Efek Jakarta (BEJ) and the Surabaya Stock Exchange (SSX) or Bursa Efek Surabaya (BES).

Share Listing Requirements
On June 30, 2000 the BEJ introduced new listing regulations as part of its effort to increase its competitiveness among regional exchanges and to increase the level of confidence in the capital market. These regulations authorized the creation of the Main Board and Development Board and required companies to implement good corporate governance practices.
Creation of the Main Board and Development Board
Company listings will be classified under one of two boards - the Main Board and the Development Board. The Main Board lists large companies that have a track record of profitability. Companies that have good prospects but are not yet profitable and all othercompanies that fail to meet the requirements of the Main Board will be listed on the Development Board. Therefore, start up companies can list their shares on the secondary board.
The following are several of the requirements for listing on the Main Board:

1. Financial statements with an unqualified opinion for the last three years.
2. At least one million shares for listing with at least 200 shareholders, each owning at least one trading lot.
3. Operational and net profits in the last two fiscal years.
4. Total assets of at least Rp. 30 billion and paid-in capital of at least Rp. 3 billion.

Implementation of Good Corporate Governance Practices
The new regulation requires listed companies to implement good corporate governance practices. The companies are required to:

1. Have independent commissioners (not affiliated with the controlling shareholders and/or other directors, not an interlocking director, or not appointed by the controlling shareholders in the Shareholders’ General Meeting).
2. Have an Audit Committee composed of at least three members: an independent commissioner and the rest independent external parties with accounting and finance capabilities.
3. Have a shareholder composition in which the minority shareholders hold at least 5% of paid-up capital or 10,000 shares for the past six months.
4. Possess eco-labeling certificates for companies focused on forest concessions.
5. Submit financial statements to the BEJ on time, or face the risk of transfer to the Development Board if financial statements are submitted more than ten trading days after the set deadline.

Mutual Listing Agreement
The Jakarta Stock Exchange (JSX) and the Amsterdam Exchange (AEX) on March 2000 signed a mutual listing agreement. The bourses have agreed that all companies listed on the JSX as of the year 2000 will be given an automatic listing on the AEX as well.
Bond Listing Requirements
Listing of bonds, like shares, is regulated by the respective stock exchanges. To qualify for listing on the BEJ, bond issuers should have been operational for at least three years; report operating profits for the last two years with no deficit in the balance sheet; list bonds with a face value of at least Rp. 25 billion and a duration of the outstanding bonds of at least four years; and submit their latest audited financial statements with an unqualified opinion from apublic accountant.

6. Jakarta Futures Exchange
The Jakarta Futures Exchange (JFX) was established in August 1999 and commenced operations in December 2000. It is the first futures exchange in the country. The JFX serves as a central location where buyers’ and sellers’ agents meet to trade futurescontracts on the commodities the exchange lists for trading. The commodities traded include crude palm oil, robusta coffee, pepper, plywood, cocoa and rubber. The exchange also plans to include financial trading instruments such as foreign exchange, interest rates and government bonds. Its listed brokers are PT Batavia Futures, PT Artha Berjangka, PT Dana Graha Futures and PT Gading International Berjangka.

7. Regional Autonomy
Law No. 22/1999, “the Law on Regional Administration”, was designed to regulate regional administration and implement the principle of decentralization. Regional autonomy will beimplemented by providing wide-ranging, concrete, fair, and responsible authority to the regions in proportion to their share of national resources. Fundamental portions of this law shall include efforts to bolster the empowerment of the community, foster initiative and creativity, promote community participation, and develop the role and function of Regional Legislative Assemblies.
When Law No. 22/1999 came into effect January 2001, regional governments were granted the authority to regulate their own domestic matters including those related to local business activities. However, since the new system has just begun and is still being fully implemented, there is little information on this subject. The scope of regional autonomy and administration and the contents of future regional regulations have yet to be determined. It should be noted that future regulations issued by regional governments might differ from the existing regulations issued by the central government.
In relation to Law No. 22/1999 to establish regional autonomy, the government issued Law No. 25/1999 regarding Financial Equilibrium between the Central Government and Regional Administrations. The law regulates government financial systems and encompasses thedistribution of funds between the central government and regional administrations. The law is designed to promote inter-regional equity and takes into account the potential, condition and needs of a region. In addition the law addresses regional obligations, the distribution of regional authority and procedures for the exercise of said authority, including financial management and supervision.
Finally, the law regulates the authority of a region to establish reserve funds originating from regional revenues, and a system of financial management and accountability in implementingdecentralization and assistance tasks. The main purposes of this law are empowerment and promotion of regional economic capacity, creation of just, proportional, rational, transparent,participative, accountable and accurate systems of regional financing, and realization of financial equilibrium between the central government and regional administrations.

Attachment 1

Regional Minimum Wages for 26 Provinces As of January 1, 2001

No. Provinces Minimum Wages - Monthly (Rp)

1. D.I. Aceh 300,000
2. Sumatera Utara 340,500
3. Sumatera Barat 250,000
4. Riau 329,000
5. Jambi 245,000
6. Sumatera Selatan 255,000
7. Bengkulu 240,000
8. Lampung 240,000
9. DKI Jakarta 426,250
10. Jawa Barat 245,000
11. Jawa Tengah 245,000
12. DI Yogyakarta 237,500
13. Bali 309,750
14. Kalimantan Barat 304,500
15. Kalimantan Tengah 282,000
16. Kalimantan Selatan 295,000
17. Kalimantan Timur 300,000
18. Sulawesi Selatan 300,000
19. Sulawesi Tengah 245,000
20. Sulawesi Tenggara 275,000
21. Sulawesi Utara 372,000
22. Nusa Tenggara Barat 240,000
23. Nusa Tenggara Timur 275,000
24. Maluku 230,000
25. Irian Jaya 400,000
26. Maluku Utara 230,000
    

Source: Ministry of Manpower and Transmigration of the Republic of Indonesia.


Read more!

How to do Business In Indonesia / Aceh

Doing Business in Indonesia / Aceh
Foreign Direct Investment

The new government has been transforming Indonesia into a country with one of the most liberal policy and regulatory frameworks for investments in Southeast Asia. Serious efforts are being made to give investors clearly spelled out investment laws, rules and regulations.
This chapter briefly discusses the general policies and basic guarantees; sectors closed for foreign direct investment; forms of doing business and allowable share ownership; other forms of doing business; direct foreign investment application and approval; employment of foreign nationals and work permits; and environmental concerns.

1. General Policy and Basic Guarantees for Foreign Direct Investment
Indonesia welcomes foreign direct investment, whether by individuals or entities. The investment is made in the form of a limited liability company.

With regard to the percentage of allowable foreign ownership, foreign direct investment is conducted in two ways; namely joint venture with domestic investors or full (100%) foreign investment. The government is continuing to review those lines of business open to foreign direct investment and the allowable percentage of foreign ownership.

With regard to the size of foreign investment, in practice, the Investment Board (the Indonesian government office with jurisdiction over foreign and domestic investment matters) determines the minimum reasonable paid up capital of the limited liability company to be established, depending on the nature and type of business. For example, the reasonable paid up capital for a company in the service sector is normally US$100,000. The Indonesian constitution guarantees foreign investors’ the following basic rights:

• Freedom from expropriation without just compensation.
• Right to remit profits, capital gains, and dividends within the guidelines of the Bank of Indonesia, the country’s central monetary authority.
• Right to remit the proceeds of the liquidation of investments.
• Right to obtain foreign exchange to meet principal and interest payments on foreign obligations.

Indonesia is a full member of the Multilateral Investment Guarantee Agency (MIGA), which is a member of the World Bank Group. Investments entered through MIGA are protected against various political risks. The agency was designed to encourage foreign investment by providing viable alternatives for investment insurance against non-commercial risks in developing countries, thereby creating investment opportunities in those countries. Indonesia also has bilateral agreements with 54 countries concerning the promotion and protection of foreign investments. A standard bilateral agreement contains provisions to create favorable investment conditions for nationals of Indonesia and the contracting party on the basis of sovereign equality and mutual benefit. This is designed to stimulate investment in both countries.

2. Lines of Business Closed to Foreign Direct Investment
In principle, all lines of businesses are open to foreign investment, except for those business activities or lines of business that have a vital role in national defense and security, such as the production of weapons, ammunitions, explosives and martial/war equipment.

In addition to these vital business activities, the Government can also determine other lines of business closed to foreign investment as set forth in the Presidential Decree on the “Negative List of Investment” and other regulations. This decree describes not only the lines of business that are closed to foreign investment, but also the lines of business closed to all investment (foreign and domestic), the ratio of ownership between foreign and domestic investors in a joint venture, and the special criteria to be complied with by investors in investment in special lines of business.

According to the current Presidential Decree on the “Negative List of Investment” (Presidential Decree No. 96/2000 dated July 20, 2000 as amended by the Presidential Decree No. 118/2000 dated August 16, 2000), the lines of business that are totally closed to foreign investment include 1) germ plasma cultivation, 2) natural forest exploitation, 3) lumber contractors, 4) taxi/bus transportation services, 5) small-scale shipping, 6) trading and trade supporting services except large scale retailers (malls, supermarkets, department stores, shopping centers), wholesale trading (distributors/wholesalers, exporters and importers), exhibition/convention providers, quality certification service providers, market research service providers, warehousing service providers other than Line 1 and ports, and after-sales services,7) radio and television broadcasting, and 8) cinema operation.
The government has been showing a trend towards relaxing the negative list of investment, with more lines of business being opened up to foreign investment and foreign investors being allowed a greater percentage of ownership.
A summary of the new ruling on foreign investment restrictions is included at the end of this chapter and marked Attachment 1.

3. Setting Up a Foreign Direct Investment Company
A foreign direct investment company in Indonesia (known locally as “Penanaman Modal Asing” or PMA), can take the form of a 100% foreign owned limited liability company or can be established as a limited liability company through a joint venture with Indonesian partners. In the case of a joint venture, the Indonesian partner is required to own at least 5% of the shares. The Corporate Law requires that there are at least two shareholders in a PMA company, or any limited liability company. The shareholders can be two individuals, two companies, or a mixture of both. Therefore, in the case of a PMA company with full foreign ownership, the foreign investor initially planning the investment in Indonesia must invite another foreign party to participate in shareholding of the proposed company.
When a PMA company is established, the initial investment approval from the Board of Investment will be valid for three years. Once the PMA company is ready to start its commercial operations, it is required to apply for a permanent business license, which is valid for 30 years and can be extended for another 30 years. To obtain the permanent business license, the company has to secure the approvals, permits, and licenses required by the different government agencies.

Allowable Share Ownership
Foreign investors may own a maximum of 95% of the shares of PMA companies involved in construction and operations of ports and harbors; processing and provision of clean water for the public; electricity production, transmission and distribution; generation of atomic power; public railway service; shipping and medical services (covering among others building and operation of hospitals, medical check-ups, clinical laboratories and mental rehabilitation service). In the case of telecommunications and regular/non-regular/chartered commercial airlines, foreign investors who wish to participate in these industries must form a joint venture with an Indonesian company. Previously, the foreign ownership in these industries was limited to a maximum of 49%. However, based on Presidential Decree No. 118/2000 dated August 16, 2000, there is no limitation on the percentage. A more conservative interpretation based on the Investment Law, suggests foreign investors may own a maximum of 95% of the shares. A 100% foreign-owned PMA company is required to divest part of its shares to Indonesians within a maximum period of 15 years from the start of its commercial operation.

4. Other Business Forms
Representative Office
A foreign company may establish a Representative Office in Indonesia. There are three types of Representative Office in Indonesia:

1. Representative Office under the Department of Trade and Industry, which may only conduct promotional activities, market research and information gathering functions.
2. Representative Office under the Construction Service Development Agency (formerly this type of Representative Office was under the State Ministry of Public Works). This type of
   Representative Office allows a foreign contracting company to enter into a Joint Operation Agreement with a local contractor to execute a public works contract of limited scope and
   duration. One company may be the main contractor with the other as the sub-contractor.
3. Regional Representative Office under the Board of Investment, which may only supervise and coordinate the affiliates/branches/subsidiaries for, and on behalf of, its parent company.

Agency and Distributorship
A foreign business firm may appoint an Indonesian person or company to act as its agent or distributor to engage in trading activities. Expatriate personnel may be assigned to and be employed by the Indonesian person or company. However, for those foreign business firms who want to have a business presence in Indonesia, the recent regulations allow the foreign company to set up a PMA company, which can engage in large-scale retail and distribution/wholesale activities.

Cooperation Agreement
A business agreement with a domestic enterprise to provide technical assistance, management, and financial arrangements.

5. Foreign Investment Application and Approval
Foreign investment application and approval, except for investments in the oil and gas and financial sectors, can be obtained at any one of the following: 1) the Office of the Board of Investment (BKPM) in Jakarta, 2) the Regional Investment Coordinating Board (BKPMD) in
the province where the project will be located and 3) the representative office of the Republic of Indonesia where the prospective investor resides.
To apply for investment approval, the foreign investor has to submit to any one of these entities two copies of form Model 1/PMA containing the following information:

1. Names and descriptions of the applicants
2. Name of the company, location and main line of business
3. Annual production and sales of products
4. Land area, foreign and local manpower, and infrastructure requirements
5. Capital structure
6. Project timetable
   Foreign investors have therefore the choice of where to apply and secure investment approval. However, for foreign investment projects located in the Bonded Zones, investors should submit the application to the BKPM through the respective Bonded Zone Authority.
   After securing the PMA approval, the foreign investor has to secure the permits and licenses required to obtain a permanent business license to operate. For details on Investment Applications visit the Investment Coordinating Board’s website at www.bkpm.go.id.
   

6. Employment of Foreign Nationals
PMA companies are allowed to appoint foreign managerial staff and technical experts for whom qualified Indonesian nationals are not yet available. A company wishing to have expatriate employees must obtain a work permit for them. Work permits are usually valid
for a 12-month period. To obtain them the employer or sponsor must submit to the Ministry of Manpower, a Manpower Plan. This should include a plan to train Indonesians who will later take over the positions for which the firm is seeking approval.
Within seven days of arrival in Indonesia the expatriate worker and immediate members of his/her family must report to the District Immigration Office of the district where they are residing to obtain a resident (KIM/S) card.

7. Environmental Issues
Foreign investors should always consider environmental protection in connection with their activities located in Indonesia. Disregard of this issue can increase the risk that operations will be closed or interrupted as a result of pressure from non-government organizations or local residents.
Law Number 23 Year 1997 pertaining to the Environment Law, states that compliance with the environmental regulations is mandatory in Indonesia. Therefore, companies operating in
Indonesia should be increasingly aware of the need for environmental protection and preservation.
Attachment 1: Negative Investment List
(As regulated in the Presidential Decree No. 96/2000 as amended by
Presidential Decree No. 118/2000)

Business Fields Totally Closed to Investment:

Agricultural Sector

1. Cultivation and processing of marijuana and the kinds
   Marine and Fishery Sector
2. Collection/utilization of sponge
   Industrial and Trading Sector
3. Industries of chemical products harmful to the environment, like penta chlorophenol, Dichloro Dipenhyl Trichloro Ethane (DDT), dieldrin, chlordane, carbon tetra chloride, Chloro Fluoro Carbon (CFC), methyl bromide, methyl chloroform, halon, etc.
4. Industries of chemical products stipulated in the Schedule I of the Chemical Weapon Convention (sarin, soman, tabun, mustard, levisite, ricine and saxitoxin)
5. Industries of weapons and components
6. Industries of cyclamate and saccharine
7. Industries of alcoholic drinks (liquor, wine and drinks containing malt)
8. Operation of casinos/gambling
   Communications Sector
9. Air traffic system providers (ATS providers) as well as ship statutory and classification surveys
10. Management and operations of Radio Frequency Spectrum and Satellite Orbit Monitoring Stations
    Mining and Energy Sector
11. Mining or Radioactive minerals
    

Business Fields Closed to Investments with Ownership of Foreign Citizens and/or Statutory Bodies in Corporate Capital
Forestry and Plantation Sector
1. Germ plasma cultivation

2. Concessions for natural forest

3. Contractors in the field of lumbering
Communications Sector
4. Taxi/bus transport services

5. Small-scale sailing
Trading Sector
6. Trading and trading supporting services

EXCEPT: large-scale retailer (malls, supermarkets, department stores, shopping centers), wholesale trading (distributors/wholesalers, exporters and importers), exhibition/convention service providers, quality certification service providers, market research service providers, warehousing service providers other than Line I and seaports and after-sale service providers.
Information Sector
7. Radio and television broadcasting service providers, radio and television broadcasting subscription service providers, print media information service providers.

8. Film industry (film making businesses, film technical service providers, film export and import businesses, film distributors and movie house operators and/or film showing service).
Business Field Open to Foreign Investment on Condition of Joint Venture between Foreign and Domestic Capital
1. Building and operation of seaports

2. Electricity production, transmission, and distribution

3. Shipping

4. Processing and provision of clear water for public purpose

5. Public railway service

6. Atomic power plants

7. Medical services, covering the building and operation of hospitals, medical check-ups, clinical laboratories, mental rehabilitation service, public health maintenance security, rent of medical equipment, assistance services for health aid and evacuation of patients in emergency condition, hospital management services and services for testing, maintenance and repair of medical equipment

8. Telecommunications

9. Regular/non-regular/chartered commercial airliners
Business Field Open to Investments on Certain Conditions
Marine and Fishery Sector

1. Cultivation of fish in fresh waters
a. open to foreign investment for freshwater turtles, nila gift, sidat, kodok, lembu, freshwater giant shrimps and thillapya.
b. in cooperation with small-scale fishery businesses.
2. Fishing of demersal fish (big fish, grouper, and other sea fish)
- except ZEEI areas of the Malacca Strait and Arafura sea.

Industrial Sector

3. Industries of pulp made of wood
a. raw material coming from imported chips or guarantee of raw material supply from industrial timber estates (HTI).
b. other than sulfonating and/or chlorination (C12).
4. Industries of pulp made of other cellulose fibres or other materials
- other than sulfonating and chlorination (C12).
5. Chloro alkali producing industries
- other than those using mercury.
6. Processing of finished/semi finished goods of mangrove wood
- raw material coming from mangrove cultivation.
7. Money printing industry
- must secure operational licenses from BOTASUPAL-BAKIN and approval from Bank Indonesia.

8. Special printing industries (postal stamps, duty stamps, Bank Indonesia negotiable papers, passports, and stamped postal matter)
- must secure operational licenses from BOTASUPAL-BAKIN.

9. Milk processing industry (powder and sweetened condensed milk)
- processing, not merely repacking.

10. Plywood and rotary veneer industries
- only for Irian Jaya province (Papua).

11. Sawn timber industries
a. only for Irian Jaya province (Papua).
b. outside Irian Jaya province (Papua), only using logs from non-natural forests.

12. Ethyl alcohol industries
- technical grade, being only used as raw materials and auxiliary
materials of other industries.

13. Industries of raw materials for explosives (ammonium nitrates)
- must be in cooperation with business entities securing recommendation from the Ministry of Defense.

14. Industries of explosives and components for industrial (commercial) needs
a. must be in cooperation with business entities securing recommendation from the Ministry of Defense.
b. only manufacturing activities, while storage and distribution are executed by companies appointed by the government.

15. Electricity planning and supervision consulting services.
Open to foreign investment with the provisions that:
a. PLTA (hydro power plant) with a capacity of above 50 MW.
b. PLTU (steam power plant) with a capacity of above 100 MW.
c. PLTP (geothermal power plant) with a capacity of above 55 MW.
d. main electrical relay station with a voltage of above 500 KV.
e. transmission networks with a voltage of above 500 KV.

16. Electricity equipment construction, maintenance, installation services, development of technology supporting the supply of electricity and testing of electricity installations.
Open to foreign investments with the provisions that:
a. main electrical relay stations with a voltage of above 500 KV.
b. transmission networks with a voltage of above 500 KV.

17. Petroleum and natural gas drilling services
Open to foreign investments with the provisions that:
a. only for offshore drilling.
b. especially for locations outside the Eastern Indonesian Region, must cooperate with national partners operating in the similar business field.

18. Power plant businesses
- open to locations outside Java, Bali and Madura.

Trading Sector

19. Restaurants
- open to foreign investments with the special provisions that they must be located in tourism areas/zones and/or integrated with hotels.

20. Games services
- open to foreign investments with the special provisions that they must be located in tourism areas/zones and/or integrated with hotels.

Read more!

Macro Economic

• Positif and Negatif/Normatif Economic
  Positif economic is corcerned with what is.
  or concerned with the utilization of means or resources for the advancement of economic goods.
• Normatif economic is corcerned with what ought to be.
  or concerned about what economic conciders thing as they ought to be and its discussed the desiribility to be achieved.

1. Economic Classification
   Positif Economic or Economic Theory or economic Analysist --> Concerned of thing as the are.
2. Normatif Economic or Presciptive Economic --> Concerned with the thing as the ought to be.
3. Practical Economic --> Concerned with the Methods or Means or realising economic ideals.
4. Economic History --> Study of Economic Phenomena existing at any given period in the past.
5. History of Economic Thought --> Study of the the history of the analysist or scientific of economic science itself.
   

Deductive Methods
A study a proceed from from reasoning to a study of the past and verification of conclusions arrived at. and it also known as Hypothetical Methodes, because some of sapposation and assumption may not correspond to actual facts but near to actual facts. that may be used as premises for reasoning and deriving conclusion and its also call as Abstract Methodes, because the problem it simplified, removing all irrelevant facts.

* Advantage of Deduction Methode's

• - Its lead to correct conclusions provided the premises from which the reasoning proceed are correct.
• - Its only drawn back the conclusion derived though the deductive methods can have only a limited application because economic are continually changing.

* Advantage of Inductive Methode's

• - The methods of statiscal induction is indispensable for the formation of economic policy.
• - The economic laws which are arrived at by process of induction leads to precise exact measurable conclusion.
• Some of the important theory have been discovered as a result of use of induction.
• - It's used to check and verify the conclusion of deduction to bring the light deficiencies in their treatment and to amplify their conclusion.
• - The chief merit of Inductive methods is to show the complexity of economic phenomena and the imposibility of deriving conclusion and principle which would have numerial application.

Defination of Economic
1. Wealth Defination
2. Welfare Defination
3. Scarcity Defination
4. Growth Defination
Scarcity Defination as Prof. Robbins said" Economic is the science which studies human behaviour as a relationship between end and scace mean which have alternative used.

Pricing
1. Pricing of Good
2. Pricing of Factor Production
3. Factor of Production

Land --> The price of the used land is known as --> Land Rent
Labour --> The price for labour is call as --> A Wage
Capital --> The price for the sources of capital is --> Interest
Organization --> The price for services of the organizer is call as --> Profit

Read more!