Night Life in Bangkok

It was a pleasure to visit Bangkok last week. A prestigious opportunity for me gathering within around 50 selected delegations from all around Asia countries discussing about corporate governance in State Owned Enterprises. But, let's skip the serious topic since I've provided a report on this here.

What I want to share here is the night life there. In my opinion, truly this is an opinion since my short time stay did not give me a lot information about whole Bangkok city. However I'm lucky to be in the right spot for the night life in Bangkok. I didn't know whether my colleague in purposely picking the hotel near to this place or it just simply a coincidence. I stayed two night in the hotel at Rama IV Road. Just a few block from Rama IV Road, it is Patpong Road. In this place, every night is party. A very right place for certain people who came to Bangkok for its entertainment.

I believe I will have no much time to buy souvenirs for my wife, family and colleagues. As I saw the map that few block from my hotel, Patpong Road, a place for buying some souvenirs is exist. I walk alone heading Patpong Road, and within only five minutes walked, the patpong Road is already in front of me. Once I arrived in the front of the Road, truly I am shocked with the views around me. I don't know whether they are men or women but absolutely they are dressing as women, well actually half dressed. Yes, this is Patpong Road the place that people said as a center of entertainment, a wild night life. There are some seller offering souvenirs, porno DVDs sellers who're seemingly afraid of selling their goods openly and other merchandise sellers. Even this is a very strange place for me but I tried to confidently walk through. My first intention was to buy souvenirs nothing others. For me it is enough to know that this kind of place available in Bangkok. I do think this place mixed between entertainment and prostitution.

In this place, everything illegal in Jakarta were seemingly so free. Can you imagine that a bar or something like that widely open for just sightseeing. They have a round table for the guests, and you know that in the middle of round table there are lot of women, half naked and dancing happily. Because the door is quite big and it is widely open, I can see all the activities there. A striptease parade are shown freely. Naudzubillah. Even maybe, somewhere in Jakarta, this kind of entertainment is also provided, I believe those kind of entertainment were not openly parade like in Bangkok. I think this is no difference with Red District in Holland.

Just a sharing experience, but this is meaningful for me. I don't think that Bangkok is better than Jakarta. I do even think that Jakarta much better. especially on this side, the night life.

The 4th Network on Corporate Governance of State Owned Enterprises

It was a prestigious opportunity for Forum for Corporate Governance in Indonesia (FCGI) to participate as Indonesian delegations in the international forum of 4th Asian Network on Corporate Governance of State-Owned Enterprises (SOEs) held in Bangkok 20-21 May 2009 (“Network”). The Network is annually held by Organization of Economic and Co-operation Development (OECD). An international organization established to help governments in tackling economic, social and governance of globalised economy.

The Network gathered around 50 participants, including the most prominent, active and influential policy makers, practitioners and experts regarding corporate governance of SOEs in the region. They constitute a peer of group that can press for legal, regulatory or other type of reform in this field. The Network aims to raise awareness, evaluate the currents policies of Corporate Governance, and support viable and effective reform on the importance and challenges related to the implementation of good corporate governance of SOEs in Asia countries.

To keep the dialogue focused and produces a tangible outcome, the Network has progressively developed a Regional Policy Brief, providing a set of recommendations and priorities for policy reform in order to improve the corporate governance of SOEs in the economic of Asia. The Network has also developed complete guidelines on the implementation of good corporate governance in SOEs notably in Asia. The guidelines are the first international benchmark in corporate governance of SOEs area. The use of the guidelines aims to raise awareness and promote implementation of good corporate governance in this sector.

As both policy brief and guidelines on the implementation of good corporate governments has progressively made, this 4th network focused on the implementation issues, discussing examples of international best practices, and how to implement the recommendations as provided by the policy brief and guidelines. It was also discussed about monitoring mechanism to follow-up implementation of the Policy Brief in the years to come in Asian countries.

During the Network session over the relevancy of the guideline on corporate governance of SOEs in Asia, all delegation has basically agreed with the guidelines and it has been widely accepted by Asian countries. Even some comments arisen, but generally speaking, the problem of guidelines contents are solely technical problem since the countries has different background, culture and system. Even the content of the guidelines has been accepted, In fact, some Asian countries found difficulties to straightly implement the guideline.

From the discussion within the session, the participants identified some common challenges faced in the implementation of corporate governance in SOEs. The major challenge is the state position as an owner of SOEs, somehow, considerably to much involve in the day-to-day management of SOEs. An excessive right of state as an owner causing some serious problem on the focus of corporate governance implementation in SOEs. This causing some dependency in decision making, bureaucracy problem, and lead to the less professional and undefined objectives.

The problem of director selection and nomination process also emerged. Some countries has problem with mechanism and process of getting the right people for this top job. Political interest in certain countries becoming an immense cause for this. Some government still inevitably appoints the SOE directors on their political future prospect as SOEs are a huge hope for political funding within the political process. In certain countries it worsened with the active participation of parliament in deciding the directors of SOEs either formally through the nomination and selection in the parliament so called fit and proper test or politically influence (intimidate-red) the government to choose on political interest-based, in this regard the president or related ministry who has the final right decision to appoint the directors. Other than state ownership and nomination of board directors, the challenges of ensuring implementation of corporate governance guidelines are regulatory reform, equal treatment to all shareholders, stakeholder interest as well as transparency and disclosure.

Some developments in some countries are also shared within the network session. Some countries like Thailand, Taiwan, Philippine, China, Indonesia and Bhutan shared their impressive development in this field i.e. Thailand has successfully develop principle guideline for their country to implement corporate governance in SOEs. Their focus on corporate governance in SOEs managed by State Enterprises Policy Office, structurally established under Minister of Finance. In the future they will make separation between policy, regulatory and operational responsibilities.

Philippine has developed a score card as an evaluation for SOEs performance on corporate governance implementation. They have also established some kind of independent steering committee in the selection and nomination of SOEs’ director. Even the final decision will be prerogatively made by the president but the steering committee will play an important role to select the right man for the right job. This is will also minimize the collusion or nepotism practice within the nomination process. Some countries has successfully setting up centralize ownership entities i.e. the SASAC in china, SCIC in Vietnam and most recently the Druk Holdings in Bhutan. Indonesia is now on the way to develop this ambitious plan to centralized SOEs ownership by establishing SOEs holding company.

Indonesia has progressively adopted the guideline through regulatory reform until ministerial level. Indonesia has also developed regulations which strictly oblige SOEs to compliance with corporate governance. This aims to provide good system and best practices as well as internalized the penetration of good corporate governance culture in SOEs. In providing the guideline for corporate governance implementation Indonesia has made guideline on sectoral based such as good corporate governance for bank, insurance company and other corporation which also applied for SOEs.

Further, after all challenges and development have been shared and some intriguing discussion has been made within the network delegations, it can be concluded that some priorities should be managed to ensure the implementation issues running well. The priorities are in the areas of regulatory reform, ownership by the state, equitable treatment for all shareholders, transparency and disclosure, selection and nomination process for the board as well the responsibility of the boars. Last but not the least, a monitoring mechanism should be developed to ensure that the priorities well implemented

Establishment of Representative Office under Department of Trade

Establishment of representative office enganges in trading activities can be applied in Department of Trade. The foreign trading representative office can be enganges as selling agent, manufactures agent as well as buying agent.

The foreign trading representative office acting as trading agent and/or manufactur agent is allowed to carry out activities as follow:

• to introduce and develop marketing of th goods produced by the father company abroad and to provide information or guidelines for using or importing the goods to the user in Indonesia
• to conduct market research and selling supervisory in Indonesia on behalf of its parent company

The trading representative office and/or manufactur agent is not allowed to conduct any trading and trade transaction, either in the initial level until completion level e.g apply for tender, signing contract, claim settlement etc.

The foreign trading representative office acting as buying agent is allowed to carry out following activities :

• to conduct market reseacrh over the goods needed by parent company and to connect an provides informationas well as guidelines on hiw to export to the national company.
• to close the contract to and on behalf of the parent company in the frame of export.

Requirements to set up this kind of representative office are as follow:

• Letter of appointment made by parent company includes the name of chief of representative office, line business, time frame or validity of its appoinment letter.
• Statement Letter that the chief representative will not conducted any other activities other than related to the representative office activities.
• Letter which describing about the parent company includes the name of the company, date of establishment, legal entity form, address and line business
• Working plan
• Letter of Intent
• Letter of Reference
• Letter Model TA00 from Department of Manpower
• Curriculum Vitae
• Copy of Passport for the proposed Chief of Representative
• To pay deposite as chief of representative in the amount of IDR 5000.000,- for foreigner and IDR 1000.000,- for Indonesian.

The proces to obtain approval from the Ministry of Trade will take approximately one month. Once the approval from BKPM is obtained, some supporting legal document should also arranged. Other supporting legal documents are company registry (TDP) Legal domicile (SKDP) and tax identity number (NPWP). The whole process is estimately accomplished within 2-3 months.

Establishment of Representative Office under BKPM in Indonesia

Many foreign investor at the early stages of investing their capital in Indonesia choose to open their representative in Indonesia. After the business starts they will aplly for foreign direct investment. The establishment of representative office is relatively easier as no need capital requirement nor complex procedure. Establishment of representative can be done dependin on the licenses type and business line needed. The type and business line for representative office in indonesia has been explained on my previuos post here.

Establishment of representative office for the company which has line business other than trade, banking as well as construction is through Indonesian Investment Coordination Board (BKPM). The establishment of representative office under BKPM is governed under its chairmand decree no. 57/2004.

Required documents for the establishment of representative office are as follow:

• Letter of Appointment from the parent company;
• Power of Attorney (if the application represented by proxy);
• Article of Association of the parent company and any amendment (s);
• Copy of valid passport (for foreigner) or copy of identification number (for Indonesia) who will be proposed as a chief of representative office; and
• Letter of Statement concerning the willingness to stay, and only work in the position as the chief of representative office without doing other business in Indonesia.

The approval will takes maximum ithin ten days after all the complete required documents is submitted. Once the approval from BKPM is obtained, some supporting legal document should also arranged. Other supporting legal documents are company registry (TDP) Legal domicile (SKDP) and tax identity number (NPWP). The whole process is estimately accopmplish within 2-3 months.

It is essential to know that representative office activities are limited to as supervisor, connector, coordinator and to arrange company’s interest or affiliated companies in Indonesia and or state outside Indonesia. No commercial transaction is allowed for representative office. specifically, representative office is pohibited to carry out activities as follow :

• Representative office is not allowed to seek revenue from the source in Indonesia including not allowed to carry out activities or to conduct a sale agreement/transaction and to purchase goods and services with company or individual in broad.
• Representative office will not participate in any form of company’s management, subsidiary or company’s branch in Indonesia
• Representative office management should domicile in Indonesia
• Representative office management should fully responsible of all office activities
• Representative office management is able to employ expatriate worker which has certain skill
• Representative office management is not allowed to carry out any activities other than office’s activities
• Representative office management obliges to carry out all prevailing government’s regulations
• Representative office management should submit annual report, not later than 31 January in the next year to the Chairman of Investment Coordination Board using KPPA’s form report

Republik Ironi

Anda mungkin pernah mendengar suatu negara bernama Republik Mimpi, negara tetangga Indonesia. Sebuah negara hasil kreasi insan media televisi swasta nasional yang digadangi oleh salah satu dosen ilmu komunikasi di Universitas Indonesia. Di Negeri ini segala harapan dan cita-cita Indonesia digantungkan. Segalanya di impikan seindah dan sesempurna mungkin. Namanya juga impian, sangat jauh panggang dari api.

Kalau mereka asyik bermimpi tentang indahnya ber-Indonesia, namun hari ini saya, mungkin juga untuk beberapa hari yang berkelanjutan, merasakan betapa Indonesia pada saat ini tak lebih dari sekedar Republik Ironi. Penegakan hukum di Indonesia mewakili begitu besar ironisme berkelanjutan di Republik ini. Saya begitu terhenyak bahkan kaget setengah percaya ketika Kepolisian RI sedikit demi sedikit mulai mengungkap dalang pembunuhan Direktur PT. PRB. Dugaan terlibatnya beberapa nama yang berasal dari kalangan yang begitu dikenal oleh publik semakin menambah ironisme penegakan hukum di negeri ini. Indonesia sudah bak film-film holywood. Begitu banyak intrik, trik dan konspirasi. Nyawa sepertinya sudah tak begitu banyak berarti. Pembunuh bayaran berkeliaran. Bukan sekedar penjahat kelas teri atau kelas ece-ece tapi sudah profesional dan expert menggunakan senjata Api.
Dugaan terlibatnya seseorang berinisial AA yang menjadi pimpinan lembaga super body dalam peperangan melawan korupsi adalah bukti ironisme di Republik Ini. Seseorang yang dipuji-puji sebagai Man of the Year karena keberaniannya dalam pemberantasan korupsi, diduga terlibat dalam kasus pembunuhan yang cukup kejam. Ditambah lagi, pembunuhan ini disinyalir bermotifkan cinta segitiga, ah benar-benar ironis. Seseorang sekelas AA harus terpeleset hanya karena cinta segitiga dengan seorang Caddy Golf.

AA memang ditakdirkan menjadi manusia kontroversial. Pria kelahiran Pangkal Pinang Tahun 1953 ini, sejak awal pencalonannya menjadi ketua KPK telah mengundang berbagai kontroversi. Track recordnya sebagai seorang jaksa banyak yang mempertanyakan. Ketidakberaniannya mengeksekusi Anggota DPRD Sumatera Barat yang telah divonis bersalah dalam korupsi berjamaah, serta keterlambatannya dalam mengeksekusi Tommy Soeharto yang berakibat Tomy Soeharto melarikan diri adalah beberaapa hal yang membuat masyarakat ragu AA dapat memimpin lembaga sekelas KPK.

Pro kontra dan kontroversi nyatanya tidak menggoyahkan Komisi III DPR RI untuk mendapuknya sebagai pimpinan KPK. Keraguan publik pun di jawabnya dengan menangkap beberapa pejabat publik karena dugaan korupsi. Al Amin Nur Nasution, Aulia Pohan, rekan satu Korpsnya Urip Tri Gunawan merupakan pihak-pihak yang menjadi korban kesungguhan AA dalam memberantas Korupsi. Namun sekali lagi Ironis memang, namanya disebut-sebut sebagai salah satu aktor intelektual (intelectual dader) dalam pembunuhan direktur PT. PRB Nasrudin.

Menarik apa yang dikatakan oleh Hidayat Nurwahid pada saat diwawancarai oleh wartawan tentang tanggapannya mengenai kasus ini. "Tentu saja praduga tak bersalah harus diutamakan dalam penegakan hukum dan semestinya penegakan hukum harus dilatarbelakangi oleh keinginan untuk mencapai keadilan dan bukan karena motif politik, balas dendam pribadi dan atau golongan, persaingan antar korps dan mendulang popularitas". Mungkinkah ini akar dari semuanya. Ketidakikhlasan menjadikan segala sesuatu menjadi kurang berkah. Ketidakikhlasan berarti bekerja bukan untuk mengharapkan ridho Tuhan. Coba kita perhatikan betapa Kejaksaaan melalui Kapuspenkumnnya begitu bernafsu untuk melakukan pencekalan terhadap AA, mengumumkan AA adalah tersangka padahal status panggilan pemeriksaan AA adalah sebagai saksi dan Kejaksaan sama sekali tidak berhak mengumumkan seseorang menjadi tersangka. Ah balas dendamkah ini.

Kalaulah ironisme penegakan hukum ini berkelanjutan, lalu kepada siapa kita-kita ini, rakyat kecil kaum proletar harus meminta keadilan. Kalaulah sang penegak hukum dan kriminal adalah dwi tunggal lalu apakah Dewi keadilan telah benar-benar buta dan sama sekali tidak bisa melihat dimana keadilan. Wallahu A'lam.