Private Sector and CSRWhy CARE?

SEPTEMBER 2013

The Indonesia Canada Chamber of Commerce Monthly Newsletter

BACKGROUND CHECKS Important tool, but legal?

My Fellow Canadians:Wake up and smell

the kopi!

Canada-Indonesia: Foreign Direct Investment

Dear Readers, Canadian companies have always been at the forefront of new thinking on Corporate Social Responsibility (CSR) and have long known that embracing the community as equal stakeholders is not just the right thing to do, it helps to underpin business success by fostering loyal customers and happier employees.Communities and individuals are attracted to companies that contribute to society and share their personal values. Research shows customers around the world will consider a company’s CSR track record when deciding on what to buy or where to shop. In reality, money makes the world go round and it is tempting, especially in developing economies, for corporations to want to invest surplus funds into growing the business or rewarding their shareholders with higher dividends. However, as the Indonesian economy has risen from the ashes of the Asian economic crisis, it is encouraging to see how strongly CSR has grown into the fabric of Indonesian corporate society.

Companies throughout Indonesia have clearly received the message that the days of operating as a lone entity are quickly drawing to an end. Increasing pressure from consumers, governments and market forces demand companies to become more efficient, sustainable and ethically oriented. The good news is that those companies leading the way and integrating CSR into their regular business activities are enjoying enormous benefits in terms of public image, market penetration and employee performance.

As an added advantage, CSR offers Canadian companies and brands a wonderful platform from which to build strong, lasting business relationships with our Indonesian brothers and sisters. Has your company made CSR a part of its core business strategy? Gary PlantICCC Board Member

The August 2013 ICCC Biztro networking event was held at Shutters Bar at the Mercantile Athletic Club on the 18th floor of the World Trade Center and attended by a near sold-out crowd representing the Indonesian and foreign business community. Participants enjoyed an informative and entertaining presentation from Gary Plant, the President Director of Jakarta KwikFIND (jakartakwikfind.com), which is Jakarta’s premium business and lifestyle directory.To add to the great conversation and networking opportunities red wine was provided by the Embassy of Canada and numerous lucky prizes were donated by Mercantile Athletic Club, Polo Lounge, and What’s New Jakarta.See you on September 19th for the next ICCC Biztro.

atBiztro

Connecting

Readers: Thank-you for your ideas and comments. This is a reader-driven campaign and the Bahasa Business team are happy to report we are off to a great start.

Our Goal:

The Bahasa Buisness CGK <--> YVR Direct Flight! Air Canada Campaignaims to persuade Air Canada to provide customers a direct Jakarta-Vancouver flight.

Selected Reader Feedback:

“Just wanted to ask if there is demand for this and what’s the purpose?”from G.M

“You need to get in touch with the Vancouver Airport Authority for statistics on travel to and from Indonesia”from S.E

“There is a provincial government run program called British Columbia Connect who can help you with this type of initiative...”from S.K

“Not sure if Air Canada would be interested in this. I don’t believe they have direct flights to India and that is a much bigger market”from N.R

“Ask your readers for more specific support. For example ask for a direct email to top Air Canada officials.”from A.G

Send Us More:

Bahasa Business editors are compiling reader ideas into a Direct Flight! Air Canada communications strategy and will work with our readers to make this happen. This is an exciting project and we thank-you for all your support.

Send your ideas and comments to BahasaBusiness@klirkom.com

Air passenger flights in Indonesia grew 15% in 201272,000,000 flights were recorded in 2012 Jakarta’s main airport terminal is due for a $2 billion expansionCurrently Jakarta’s main airport terminal handles 150,000 flights a dayIn March 2013, Lion Air, Indonesia’s fastest growing airline ordered 234 airplanes worth USD 24 billion from Airbus - bringing its total amount airplanes own to 601!

BUILDING THE RIGHT

TEAM

HOW LEGAL

ARE BACKGROUND

CHECKS?

It has never been easy to terminate employees in Indonesia. The common practice in many countries of ‘termination on notice’ or ‘employment at will’ does not exist and Article 42 of the Indonesian Constitution declares every Indonesian citizen has a basic entitlement to employment.

While there are many reasons for terminating employees, employee termination is quite often a result of the right person not being hired in the first place, which makes background checks a critical component of employee acquisition due diligence. But can an

organization legally conduct background searches?

For a start, there are no specific privacy or dataprotection requirements under Indonesian employment laws for employers that want to obtain criminal records, school records, employment or financial information. And Indonesia does not have a data protection authority or governmental agency that controls background checks.

There are however, legal documents which allude to the background check process including Article 28G of the 1945 Constitution which forms a vague basis for more specific data privacy legislation and more specifically, Law No. 11 of 2008 regarding Electronic Information and Transactions which prohibits the transmission or use of the personal data of an individual through electronic media without the consent of such individual and provides that any person whose rights are infringed may file a claim for losses caused by such violation.

Following are some tips on conducting a background check:1. Before you start, protect yourself. As mentioned, Indonesia law on background checks are vague and open to interpretation. Legal tools which can help to protect you include unilateral employee consents, employment agreements, Company Regulations and collective labor agreements. These types of agreements permit the collection, retention, disclosure and use of the mployee’s personal data or other confidential information, including transmission within Indonesia or overseas to affiliates, services providers and government agencies. Additionally, these types of agreements and consents are justified by the freedom of contract principle under the Indonesian Civil Code.

4. Employment Records It is normal procedure to ask previous employers for employee references and Indonesian law (guided by Article 1602 Z of the Indonesian Civil Code) even obligates all employers to furnish an employment statement or reference letter upon request to any outgoing employee. Once the reference letter is received, you may further verify the information contained therein by making general inquiries directly to the previous employer. One note, if you are being asked for information on a previous employee take care not to divulge information that may be construed as defamatory, recognizing that defamation is a civil cause of action and a criminal offense. In addition, past salary / compensation information is not publically available and a prospective employer would be advised to obtain the consent of a candidate to verify past salary/compensation.

5. Credit Reports, Bankruptcy, Sanction Searches Credit reports and bankruptcy searches are not common for employment purposes in Indonesia and sanction searches are unheard of. As a note, personal bankruptcy is rare. A new credit rating bureau has recently been established by Bank Indonesia but is not yet fully functioning and is only searchable by financial institutions. There is no where to get a credit report for ordinary members of the public (but private service companies can get reports on the wealthy and famous).

6. Obtain professional counsel The better part of this article was based on excellent insight from SSEK’s Richard D. Emmerson and Indrawan Dwi Yuriutomo but we at Bahasa Business are not lawyers. We highly advise readers to obtain professional counsel like SSEK who will be in the position to professionally guide you through all the ins and outs of doing business here in Indonesia, including the process of conducting background checks.

2. Conducting a Criminal Background Check Centralized/national criminal records are not available or searchable. The closest document to a certified police background check is a Statement of Good Behavior, or Surat Keterangan Catatan Kepolisian (“SKCK”), obtained from the local district office of the Indonesian National Police. Based on a report by an authority in the village where the subject is domiciled, a SKCK confirms that the individual named in the letter is of good behavior and not presently involved in any criminal investigation or proceedings. The main weak points of an SKCK are that it is very local (only relates to the specific police district where the individual is domiciled) and it also does not indicate whether an individual has a criminal record.

3. Education Records A thorough background check of education records is a two step process. First, request copies of the applicant’s degrees or certificates that are certified as a true copy by the educational institution or by a public notary. Second, conduct further verification by directly making general inquiries to the educational institution. (Individual school policy will determine whether an individual’s consent is required). Remember, if the school wants to send the data via an electronic format, you require consent.

Business Tip 101:Learn the Language

some of the teachers on the steps of the school.

a family learning to speak bahasa Indonesia together. All students receive a certificate at the end of the course

Cinta Bahasa’s Academic Advisor and Senior Teacher Daniel Prasatyo, with his student, Tim Ferriss, New York Times Best-Selling Author of the “Four-Hour Workweek” at the end of a month-long intensive course

all the teachers and staff as of July 2013, except for Stephen who was the photographer

If you are interested in more informationvisit the Cinta Bahasa website at www.cintabahasa.com or call the Student Relations hotline at +62 812 3916 5005. You can also email Stephen directly stephen@cintabahasa.com

Native English speakers have always been lucky that English, while not always recognized as the universal language of business, definitely is the dominant language of international business and global communication, hence giving them a global communications edge. Indonesia is no different, and if the ubiquitous English schools are any indication, things are not about to change.

Does this mean that foreigners coming to Indonesia to do business should not attempt to learn the Indonesian language (Bahasa Indonesia)? According to Stephen Demeulenaere, a husband-wife partner in the Indonesian language school Cinta Bahasa, that would be a grave mistake.

Stephen, who was born at a Canadian Forces Base in Cold Lake, Alberta, came to Indonesia after the Asian economic crisis to assist Credit Unions in Yogyakarta Province. His key observation of Indonesia was similar to the one he had spending time in Timor Leste, Papua New Guinea, India, Thailand and Hong Kong, which was that learning the local language, even at rudimentary level, opens up a whole new dimension of experience.

Convinced they could develop a learning methodology better than any of the programs they had researched, Stephen and his wife Ochie started Cinta Bahasa in 2011 and have not looked back. Located in Ubud, Bali, it was only a few weeks after they opened their doors that they heard the statistic that in Bali less than 5% of foreign residents can speak Indonesian at a conversational level. In other words, business has been brisk and the

school now employs 16 full-time teachers and staff.

Interestingly, many of the school’s students do not live in Bali and have been provided with language learning opportunities from their employers which include private sector organizations, universities, schools, consulates, and international non-governmental organizations. A laugh-out-loud moment which Stephen has gotten used to is seeing students from non-English speaking countries converse with each other in Indonesian. Stephen has personally witnessed a big group of people from Japan, China, Korea, Switzerland, Germany, and France, all working hard to communicate with each other in Indonesian because the majority found it easier than going to English.

Stephen is excited about the future but also hopes to attract external support. Rental rates in Ubud are similar to rates charged in Tokyo or Hong Kong, which has capped growth. In previous years support from Canada has developed language schools in Yogyakarta and Stephen believes that once Canadian organizations and institutions find out about the valuable work he is doing with Cinta Bahasa, he could attract similar support.

Helen, in a nutshell can you please describe CARE for us and how do CARE Indonesia and CARE Canada fit into the picture?

It is my pleasure to talk to Bahasa Business. In a nutshell CARE International works to end poverty through a global confederation of 14 member organizations, one of which is CARE Canada. And one of the country offices coordinated by CARE Canada is Indonesia. You might find it interesting that Indonesia is the only country where CARE Canada and Canada’s Department of Foreign Affairs, Trade and Development ( the latter part of which was formerly known as the Canadian International Development Agency, or CIDA) both have a core focus.

Can you tell us why CARE embraces the private sector move towards CSR activities? Shouldn’t the private sector just concentrate on business issues?

CARE believes there is an increasingly important role for business to play in the fight against poverty, and that as an international development organisation CARE has a responsibility to find ways of maximizing the positive impact the private sector has on poverty.

So how do you go about doing that?

Well, CARE combines our understanding of the underlying causes of poverty and our expertise empowering poor people to find their own way out of poverty with the skills and resources of business so that, together, we push the boundaries of traditional business models in order to create development gains through partnerships that generate profits, have lasting impact, and allow poor people to play a significant role within markets.

Can you give examples of what CARE does here in Indonesia?

A large part of our focus here in Indonesia and elswhere is on women and girls because research and experience tells us that disempowerment of women is the primary cause of poverty and ensuring gender equity can lift families and entire communities out of poverty. Other key focus includes: economic development, natural resource management and climate change mitigation, water, health and sanitiation, all with the aim of building sustainable and resilient urban and rural communities. CARE is also well known for our emergency response and in a country like Indonesia which is so

disaster-prone we stand by to assist when needed.

Can you share with us some work you have conducted with the private sector?

One excellent example is our work with an international garment producer to empower their women employees. The training provided by CARE includes communication, problem solving and decision making, time and stress management, execution excellence, financial literacy, and general and reproductive health. The employees voluntarily give up one afternoon per week to attend the classes and we enjoyed a 90% completion rate with the graduates reportedly

enjoying greater financial and career opportunities and also stronger family unity. Interestingly, the employer

found that once the program finished, participant quality and productivity increased significantly

which supported business targets. That is just one example, but as I said we work with the private sector in other key areas like education, financial empowerment, climate change, and disaster risk reduction.

So is CSR always tied to the bottom line? Can engaging in CSR activities simply be a purely

altruistic endeavor?

The infamous line from English Poet John Donne reads, ‘No Man Is An Island’ and it is true that everything

and everyone on this earth is intricately connected. When the private sector engages in beneficial CSR campaigns they are making the world a better place which in turn can have positive direct and indirect impacts on their stakeholders. CARE is ready to work with the private sector to ensure their efforts are maximized.

I am so sorry but we have run out of time, are there any last words you have for the business community?

Continue to be involved in CSR activities it is beneficial to the recipients but also to the teams involved in implementation, building morale and spirit in the organization, which are only some of the benefits. I am so happy to see Indonesia progressing strongly economically but there are many social issues plaguing the country. So I would like to say is keep up with great CSR work and if you are engaging the community do consider working with a non-governmental organization (NGO) like CARE.

Corporate Social Responsibility:

Why should businesses CARE?

Helen Vanwel Country Director CARE in Indonesia

In a 2004 White Paper entitled, ‘A historic perspective of the CSR movement’ by Katsoulakos, Koutsodimou, Matraga, and Williams, the authors state, ‘the core principle that the corporation has responsibilities to society beyond the profit maximization objectives has long historical roots’, and give working examples of Cadbury’s in the 1870s and literary examples from the 1910s, 1930s and 1940s.And while the CSR seeds may have been planted a century ago, few would argue that business sponsored CSR activities, with its many interpretations and variety of activities, has gone mainstream. One organization which welcomes the business world’s embrace of CSR is CARE International Indonesia which operates under CARE Canada. Bahasa Business had the pleasure of sitting down with Helen Vanwel, the Country Director of CARE in Indonesia. The result of our pleasant discussion follows.

Inauguration of water and sanitation facility by Makassar Mayor and USAID

Hockey: The New Business Tool

“The most important aspect to conducting a successful

after-work relationship building activity is to leave your agenda at

home.”

Some great “doing business in Indonesia” advice which holds true across industries and sectors is that engaging in out-of-office activities to build personal relationships, whether that be an after-work dinner, karaoke, a few drinks at the bar, or a round of golf, significantly supports successful business development. Last month Charles Kidd, the General Manager at PT Sika Indonesia, took professional and personal relationship building to a Canadian level with an all-day street hockey tournament. “I actually aimed higher,” says Charles with a big grin, “I wanted to rent one of the ice rinks here in Jakarta and have a traditional Canadian ice hockey game but one of the key conditions of a successful business based activity is that you want to keep it inclusive and I did not want to put any one off with the thought of ice skates and proper gear.” For the inaugural street hockey tournament Charles invited what he considered easily willing participants, namely the Swiss business community in Indonesia. “The two main reasons I chose the Swiss business community are the close ties Canada has with Switzerland, including the love of hockey, but I also wanted to get closer to this community and find out their thoughts on how Canada could forge similar agreements with Indonesia as it does with Switzerland. Canada and Switzerland are party to a number of bilateral treaties and agreements, like the Trade and Economic Co-operation Arrangement (1997) and the Avoidance of Double Taxation Agreement (1998 and updated in 2011), and I wanted to get the Swiss perspective on the benefits to the

business community of these agreements and if Canada should pursue these with Indonesia.” Despite the serious sounding agenda, Charles’ key expectations were clear, “The most important aspect to conducting a successful after-work relationship building activity is to leave your agenda at home. Relationship building takes time and you really have to be sincere. Would I like to sit down with these players and discuss more serious business based subjects? Yes, but at a different time, a different place. My measure of success happens when the people you invite out have a great time and leave with a smile on their face. Just keep it simple.” And if smiles are the indicator, the first street hockey tournament was a huge success with new

friendships forming on both teams, the development of sports based mutual respect and the unanimous desire to play again. We know it’s not important but just for the record and (to get team Swiss eager for revenge), team Canada won the final game 11-4 to take home the homemade trophy.

My Fellow Canadians:

I found it reflective of the current Indonesia-Canada relationship that very few of the questions to Indonesian Foreign Minister Marty Natalegawa following his speech at the Chateau Laurier in Ottawa were trade/investment related.

As Editor of a recent anniversary book celebrating the 60th year of bilateral ties between Canada and Indonesia, I have studied the remarkable shared history our two countries and peoples enjoy and it is perplexing that both countries have not taken greater steps to become so much closer. Consider that President Soekarno, addressing the combined houses of parliament in Ottawa in 1956, stated, ‘While [Indonesia and Canada] are separated by the Pacific ocean, we are also joined as neighbours by the Pacific ocean’. President Soekarno officially recognized our relationship 57 years ago.

So what is impeding Canada and Indonesia from maximizing our relationship as neighbors? In my last 3 week visit to Indonesia, which took me beyond Java and onto Sumatera island, it is definitely not the lack of opportunities, which my research has shown expands across the arts, research, education and development, environmental issues management, and of course business and trade.

As I am based in Canada, I started to ask my friends, associates, and business people I met at networking events, their opinions on Indonesia. It was like conducting my own informal research and to support my future analysis I created a few hypotheses. Was the lack of relationship building with Indonesia a reflection of old prejudices linked to North-American-centric thinking? Was this the ‘what have we done for you lately’ mentality? Or do Canadians just not care about what is happening in Asia/Indonesia?

Although my research was informal and of a qualitative nature, I found an interesting discovery which touched on my hypotheses but were rooted deeper in a general unawareness of Indonesia and what a relationship had to offer.

Emotionally, Canadians have become more detached from Asia in general. Today only 18% of Canadians regard Canada as part of the Asia-Pacific region, compared to a

significantly larger 29% just a year ago.

In terms of national economic pride, a few of my respondents commented that while Indonesia has been identified as a priority country by the Canadian government, Indonesia (unlike China, South Korea, Japan, and Thailand) showed somewhat of a disinterest in pursuing a role in the Canadian oil and gas sector. In terms of ‘give and take’ Indonesia was also seen by some of my respondents as a ‘taker’. A common anecdote I heard was that Canadian companies employ tens of thousands of Indonesians but Indonesian investment in Canada is very limited. Yes, there are some success stories, largely in the pulp and paper industry, but in reality Indonesia – as the 3rd largest country in Asia - does not make the top ten list of Asian nation investors in Canada.

In terms of policy, some of my respondents stated that Indonesia seemed to be a protectionist country, and Minister Natalegawa was even believed to be opposed to free trade agreements such as those the Canadian government have been vigorously pursuing with China, India, and the European Union. One respondent quoted Minister Natalegawa as saying something on the lines of “There being much room for increasing and diversifying trade without the necessity of a free trade agreement”.

But the most common response I received from my survey participants is that Indonesia was just a developing country who didn’t have much to offer in the first place. If we gauge a country’s development on their manufactured versus raw exports, my respondents would be in for a big surprise. I am not disparaging my own country but if you look at Canada-Indonesia trade, it is Canada who has been sending Indonesia raw

wheat, pulp and potash, while Indonesia has been sending Canada manufactured goods including aluminum plates, sheets and strips, electronic integrated circuits and transmission apparatus for radio and television, television cameras, assembled flooring panels and flat hot rolled iron products, and even fine paper, to name but a few. Yes, some will argue Canada also exports aircraft and spacecraft related goods and services but that is an exception that prove the rule. To support my argument, when I asked an associate in shipping about information on the last big shipment to Indonesia, the first thing that came to his mind was a load of some sixty odd containers of potatoes from PEI being sent to Indonesia to be processed, and then re-exported, as chips.

The key to this article is that yes, Indonesians need to be made aware of the wide diversity of items and services they can be importing from Canada, but Canadians really do have to re-energize their efforts and really ‘wake up and smell the kopi’. There are many benefits to be had by an improved neighborly relationship and while it may sound strange, the best way to do this is if both Canadians and Indonesians take the first step.

Wake up and smell the kopi!

By Elizabeth McIninch

Elizabeth Moody-McIninch is President of Moody’s International Business Consultants (Canada) Ltd, . www.moodyinternational.ca and a registered immigration consultant. Moody’s offers sound business counsel to Canadian companies opening representative offices in Indonesia as well as Indonesian companies and entrepreneurs who wish to enter the Canadian marketplace.

A Healthy View of Indonesia’s Universal Health Care InitiativeWhat started as religious based health care providers (working on donations from the public and privates sector) freely serving all members of the public in the 1800’s, to formalization of government provided universal health care with the passing of the Saskatchewan Hospitalization Act in 1946, Canadians have a long history of enjoying free access to healthcare. And now, in 4 months time, on January 01, 2014 to be exact, it will be Indonesians who experience Universal Health Care. Or will they?

The universal health care plans are definitely in place, the government of Indonesia has earmarked nearly USD 3 billion dollars to support the initiative, and the January 01 launch date has been set. But many questions remain, and there is uncertainty on how the initiative will affect insured employees and the private sector.

To be fair, the government has stated the program will roll out over a 5 year span, but experts warn it may be five years fraught with problems. ‘All good things are worth fighting for’, and universal health care in Indonesia is no exception. In fact, Indonesian universal health care is ripe with opportunity.

Opportunity for Indonesians

Universal healthcare is something many Canadians take for granted. A heart breaking story, posted last year on youtube (http://www.youtube.com/watch?v=5W5pU-05UrU) describes how a profusely bleeding pregnant mother, at her third attempt to get treated at a hospital, is turned away because her husband can not provide a USD300 down payment. She dies an hour later. There are

numerous similar stories across the country. With Universal health care the approximately 120 million Indonesians who at this time have no coverage, will all be able to get some sort of free treatment, expected to improve with time. In the long run access to quality, affordable health care will not only improve health outcomes, but reduce financial risks associated with ill health, increase equity, and support poverty reduction.

Opportunity for the private sector

Unlike Canada, where private hospitals are few and far between, Indonesian legislation does not support a takeover of healthcare services by the government, which allows the country to partner with the private sector to share knowledge, facilities, and services to make the universal health care program fiscally sustainable while also improving equity and efficiency. In terms of universal health care implementation there is a huge gap in the demand-supply relationship ranging in everything from availability of hospital beds, actual availability of specific services, accessible health centers, to healthcare providers demanding more comfortable living arrangements in rural areas; and smart businesses will turn the many criticisms related to the universal health care initiative into profit making solutions.

Overtime the experiential learning of actual universal healthcare implementation

supported by critical transparency components, will raise awareness of the costs and basic benefits of healthcare and the private sector will need to provide their employees with meaningful healthcare coverage at a predictable cost, providing even more long term opportunities.

In summary Indonesia’s universal health care is the result of a commitment to improve social security for all Indonesians that goes back to the founding fathers (Soekarno/Hatta). Politically, legally, and socially, the universal health care initiative has reached critical mass support and won’t be stopped. Like any other country, universal health care will face challenges and complexity in implementation (i.e.: the US with “Obamacare”) but this really is the time to turn challenges into opportunity. Cheers to good health.

Manulife Financial is a leading provider of Employee Benefits in Indonesia offering group pension and severance funding schemes, group life & health for leading Indonesian companies. For further information, please contact

Nur Hasan. K (Nanang) Head, Group & Pension Operations Email: Nur_Hasan_Kurniawan@manulife.com

Canadian FDI: The Case for Indonesia

Canada’s role on a global scale is reflected in part by the foreign investment of it’s corporations, which increased YOY 2012 by 4% to CDN $711 billion (since 1990 Canada’s FDI has grown by 720%). And while 41% of Canadian FDI goes to its southern neighbor, Canadian businesses are making headway in reaching many other parts of the world.

Today, 53% of Canadian FDI is derived from finance and insurance, followed by 19% from mining and oil and gas extraction. Take into consideration the rapid growth in many other sectors, (for example the fact that Atlantic Canada has more than 200 aerospace and defence firms), and there is clearly room for foreign expansion across the economic board.

The Canadian government, and Canadian businesses’ prominent role at the upcoming APEC CEO Summit Indonesia in October indicate Canadian corporations are taking a serious look at Indonesia to do business. Undoubtedly, APEC participants will be hear the oft trumpeted strengths of doing business in Indonesia: - the world’s 4th largest population - steady economic growth above 6% a year - a moderate Islamic and very friendly country - a consumerist society with increasing disposable income

But there are key insights one gets from being here, doing business on the ground, in Indonesia, Consider it an informal reconnaissance mission as Bahasa Business

asked Canadians doing business here in Indonesia, “What do you notice about Indonesia that will be attractive for Canadian businesses?” Following are the top 4 responses:

Ubiquitous constructionThroughout Indonesia cranes and construction activities (malls, offices, soho buildings, and new homes) are seen everywhere. Yes, it adds to the traffic pains but it is a clear physical sign of a vibrant economy.

Restaurant heavenWhether you are looking for cheap fast food or fine dining, the numerous new eating establishments popping up throughout Jakarta (including whole malls dedicated to eating out) signal a growing confident consumer class who have extra money to spend.

Young people everywhereIt is possible that the older generations just like to stay home but the streets, malls, office buildings, and parks are filled with young Indonesians. Not only is this an attractive buying demographic but it bodes well for those looking for a new generation of employees. (Note: A quick check with the

national bureau of statistics shows that 50% of the Indonesian population are under the age of 29).

The positive business stories eclipse the negativeA quick mingle at the monthly “Biztro” ICCC networking event reveals much of the conversation is aimed at business development and taking advantage of the opportunities available. Is the business environment perfect, no; there is room for plenty of change – but people are focused on what is working. Many businesses are also enjoying pro-business policies including first class treatment from government, no requirement of minimal investment capital, government guarantees of repatriation of capital and profits, and more friendly permit services and facilities.

Granted, you can not rely solely on pure anecdotal evidence to make important business expansion decisions but hearing directly from the men and women who are conducting business in Indonesia on a daily basis reveals a key message that Indonesia is very much worth looking into.

Cambodian Discovery Bodes Well for Indonesia

‘Canadian engineering firm’s skilled use of LiDAR laser technology leads to historical find in Cambodia`

McElhanney LiDAR laser technology equipment is loaded on a helicopter to be brought on site. The technology can ‘see’ beyond obstrusive coverage.

The LiDAR system bombards the surface with billions of laser pulses resulting in a very accurate mapping of terrain elevation.

McElhanney President Director Francisco Goncalves in Cambodia to support the McElhanney team following the discovery of a 1,200 year old city.

Less than 40 kilometers to the south of a relatively obscure patch of jungle in Northern Cambodia, 2 million tourists a year visit Angkor Wat, the largest religious monument in the world. Today, the eyes of the international community are on the previously much ignored patch of jungle, as the results of a “LiDAR” scan, by McElhanney, a Canadian engineering firm, reveals it to be the site of a 1,200 year old city.

Explains Francisco Goncalves, McElhanney President Director SE Asia Operations,‘First of all, I would like to emphasize credit for the discovery of Mahendrapavarta must go to Jean-Baptiste Chevance, Phnom Kulen Program - Archaeology and Development Foundation, and to Dr. Damian Evans, leader of the Khmer Archaeology LiDAR Consortium (KALC) group and our client, and the many other groups that have been working on uncovering this magnificent city of Angkor for the last several decades. McElhanney are fortunate that we were entrusted to do the mapping work and that our team has the LiDAR light detection and ranging expertise and equipment, which is a remote sensing technology that measures distance by illuminating a target with a laser and analyzing the reflected light.” Despite Francisco’s modesty, it was McElhanney who approached the research team and offered their expertise and services at cost, as they understood the historical, cultural, social, and even

economic impact of the endeavor for Cambodia and the rest of the world. And while the government and academic community are now focused on assessing the newfound treasure, Francisco has already focused his attention on other possibilities. Says Francisco, “I am excited about the positive impact these findings will have for Cambodia, but I am also thinking how these findings bode well for Indonesia. Indonesia attracts nearly 500,000 people a year to Borobodur, the world’s largest Buddhist monument, and in my heart I believe Indonesia can attract millions of more visitors by uncovering the rich cultural history which I believe lies hidden throughout the country. In Indonesia, tree cover in many historically significant areas impede detection from most remote sensing systems and McElhanney are experts at using LiDAR which uses laser pulses to very accurately map terrain. I really believe Indonesia has so much more to offer the world in terms of historically significant sites, and we can help them.” One area Francisco would like to explore is Aceh, which he describes as rich with historical sites of Islamic, Buddhist, and Hindu significance. His eyes light up as he talks about the ancient settlements discovered in Lambaro bay, north-west of Banda Aceh, the Krueng Raya Bays, and the village of Beringin (close to Lhokseumawe), which Fransisco believes is just the tip of the iceberg. To date McElhanney has approached UNESCO to discuss engaging in LiDAR based work here in Indonesia but Fransisco admits he is hoping other organizations and especially the private sector will see the firm’s value in supporting the work in Cambodia and reach out to contact him for similar projects here in Indonesia.

ContributorsBahasa Business is managed by ICCC Secretary General Edwin Pieroelie in coordination with local PR agency klirkom (www.klirkom.com) and contributing members from the Indonesian and Canadian community. In this July 2013 edition, special appreciation goes to:Chris BendlRichard EmmersonRay ChristieWely KustonoKarina SherlenMinie

Sharing is CaringIf you are interested in contributing an article to Bahasa Business or have ideas to share please send an email to bahasabusiness@klirkom.com We are interested in news highlighting business related developments in Canada and Indonesia.

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CONTENT DISCLAIMERStatements and opinions expressed in articles, reviews and other materials in Bahasa Business are those of the authors, editors and publishers. Great care has been taken to ensure the contents of Bahasa Business are as accurate as possible but no responsibility can be taken by the ICCC or Bahasa Business for any errors or omissions. Furthermore we strive to provide high quality high value content but no responsibility can be taken by the ICCC or Bahasa Business for any losses, damages or distress resulting from adherence to any information made available.

The time is rightto join ICCC

With a vision of broadening the overall benefits provided to the Indonesian and Canadian business community, the Indonesia Canada Chamber of Commerce is increasing the number of valuable services and events which, combined with the introduction of new membership packages, makes it the right time for your organization to join the ICCC.

The ICCC rejuvenated approach has greater focus on how to sustainably maintain its position as a prominent chamber offering high-value membership activities and services to our constituents while collaborating more closely with our affiliates such as the Embassy of Canada, the Canadian Alumni in Indonesia (CALINDO), the Canadian Education International (CEI), and the Canadian Women’s Association (CWA).

ICCC has two categories of annual membership: Individual and Corporate. All members receive full rights and privileges of membership plus a special membership rate to all ICCC events. Our corporate membership offers three unique classes of corporate memberships: Maple, Oak and Pine, woods recognized for their elasticity, durability, and shock resistance – key attributes of any business.

contact our ICCC Secretariat at +62-21-527-7890 or secretariat.iccc@gmail.com for further information.

The ICCC wishes to welcomeManulife Financial

and Global Assistance & Healthcareas our newest Maple members