Day Fourteen

It makes me really happy to see that people are reading my blog. You should all know I have a stats page I can look at and while I don’t know you by name it gives me all kinds of fascinating statistics like what countries you are reading it from and which posts you seem to look at. I’m glad I could entertain you with my travels this summer so thanks :)

Indonesia has been amazing so far. I already filled you in on my remarkable first day where we toured the old town area, if you will, and got to see firsthand some of the issues that plague Indonesia every day. On Monday we began with a very long introduction to the financial markets of Indonesia. While necessary, it was rather unfortunate to sit in a conference room from 9-4:30. You know how speakers are- some of them have a captivating sense about them and some of them just seriously lack in charisma. We heard from a few people who work at the U.S. Embassy here in Indonesia who definitely had some interesting perspectives on how focus shifts between diplomacy, development, or defense. As you can imagine in the United States, serious funding gets allocated towards defense which has an incredible weakening effect on the other two. 

Jakarta

 

Some random interesting takeaways from this session include:

• 38% of the population earns $2-4 a day

• Bribery is incredibly rampant and well-known; it is not uncommon for citizens to bribe police officers instead of paying official tickets, etc.

• Out of the 240 million people, only 15 million pay taxes – very large ‘informal’ economy

• Obama has helped the image on the United States in Indonesia because citizens identify with him and feel he is a part of their culture as well since he lived there briefly

• Education is struggling, while systems are in place physically there is little focus on the actual teaching and instruction taking place

On Tuesday we went to visit btpn Bank which was founded in 1958. Today, it is known for its presence in what most people would refer to as micro-financing. Basically what this means is that people who cannot get loans or financing by traditional means you or I may have access to, can get small loans (roughly $200) that can help establish them as reputable business people in the local markets. People who are approved for loans are often already in business and need the extra capital to hold more inventory or expand. Now when I say ‘in business,’ what I really mean is that they probably own a small store front (think maybe 10x10) or some kind of mobile cart/location in a market. Very different world. The pay-back rates for these loans are surprisingly high and hover around 70% for this particular bank. The bank maintains a strong relationship with all of its customers and works with those who cannot pay to figure out a way to make it work for both of them. 

Typical market people work in

During this visit, we got to sit in on a class they offered some of their customers on personal finances. You can see that it is mostly women who attend these classes in place of their husbands so they can remain at work. It is still very much a male-dominated society, given that the overwhelming majority of the population is Muslim. While certainly a progressive nation with regards to the way women are treated, there are still some observable differences between men and women that you notice while walking down the street or through subtle behaviors like having specific parking places for women in public. At the end of the class, they asked everyone questions and gave out prizes for correct answers. They are so enthralled with Americans that they wanted a lot of us to hand them the prizes and give them hugs/kisses. Nothing like being a blonde haired, blue eyed girl in Indonesia. Or better yet, a 6ft tall white male. All kinds of attention.

attending class at a local btpn branch

Tuesday afternoon we visited P.T. Astra Honda Motor Manufacturing Plant which turned into a really fascinating experience. I wish I could have taken pictures! This particular plant manufactures about 3,000 motorbikes/scooters a day which works out to be one new, finished bike every 20 seconds. We got to walk through the entire process that included literally melting metal into parts, painting the bike casing, and the final complete assembly line that started with the engine and came out a completed bike at the end. I would guess this assembly line was around 60-70 yards long (could be way off) with a test drive station at the end. This was mesmerizing to watch as bikes were assembled in minutes. 

people love their motorbikes, affordable option

Tuesday evening we had some much-needed free time which consisted of an afternoon swim, some spa treatments, and room service. Staying at the Ritz certainly has its perks. We tried to go out that evening but most of us failed as we were very tired and needed some rest. We did manage to check out the club downstairs, Mystere, which proved to be less than thrilling.

random tools at Kawan Lama

Today, Wednesday, we had a late start (and a much-needed sleep in period) and went straight to a company called Kawan Lama. This company literally started out of a scruffy shop on the street in 1955 and today has grown to have approximately 3000 employees and is thriving in a variety of different business avenues. Translated to mean ‘old friend,’ Kawan Lama is a family owned company that includes various branches such as retail and manufacturing/engineering. With 23 different product categories and more than 300 brands, Kawan Lama sells through a variety of formats to both consumers and industrial users. They also have the rights to Ace Hardware in Indonesia. Now this is not your typical Ace layout- see pictures below. It is pretty much a fancy target with anything you could imagine being sold.

they love everything family style

fancy pants Ace store

This evening we had a cocktail reception for any UVA alumni living in Indonesia at a local Bistro. Guests included people who graduated as little as one year ago and as many as thirty years ago. It is always interesting to meet people around the world that you have somewhat of a connection with. Some alumni are originally from Indonesia while others simply moved here to explore new opportunities. Still feeling tired, I decided to go back to my room after the reception to take a bubble bath while looking out at the city lights. What a trip. - Becca

dealing with some serious seat recline issues

I fear for my life every time we enter traffic, there are no rules