Putera Sampoerna – Saint or Sinner?

Part 1 (of 4)

If I could, I’d place morally corrupt barstewards such as the Bakrie Brothers, Eka Tjipta Widjaja, oligarch-owner of Sinar Mas, and all those politicians and religious nutters whose ‘belief systems’ include corruption, exploitation and violence  in the stocks. Their medieval purpose was to expose offenders to ridicule and mockery; passers-by were encouraged to throw mud, rotten eggs, mouldy fruit and vegetables, smelly fish, offal, and excrement (both animal and human) at those being punished.

However, I can’t, but I can pillory them, now used as a verb but with the same intent as the original physical punishment: to publicly humiliate.

The pillory at Charing Cross in London, c.1808.

The question I am pondering here is whether Putera Sampoerna should join them. I’ve pilloried him before, and his Putera Sampoerna Foundation (PSF) is on the defensive once again, but this time from the main media and for basically the same reason: the debt cycle with which they entrap the erstwhile financially disadvantaged students in the many educational institutions which come under the PSF umbrella.

Saint?

I must point out that PSF has established ‘centres of educational excellence in Indonesia’, and a read of this page gives some confirmation of that.

Akademi Siswa Bangsa Internasional (ASBI) offers a holistic curriculum based on the Indonesian National Curriculum and 21st century learning that is supported by the Cambridge International Examination (International General Certificate of Secondary Education and International A Levels) and Advanced Placement (AP). All of our courses are in English. So when students graduate out of our school, they will be fluent in English and will qualify for any English-speaking university.

(It is to the government’s shame that in spite of 20% of the annual budget being allocated to the public education sector, it is the private sector which attempts to offer the best facilities, although not all necessarily the best education.)

ASBI emphasizes not only academic ability but also provides an educational experience at a world class standard that enables students to acquire and apply knowledge, concepts and skills. We equip our students with many different competencies including but not limited to: effective communication, collaboration and team work, decision making skills, problem solving and critical thinking abilities, creative thinking and the spirit of innovation information (eh?), media and technology literacy skills.

But, what is the ulterior motive of PSF? Why should the foundation be about “Creating leaders with vision and integrity”?

Education provides opportunity for children to reach their dreams. Unfortunately every four minutes, one kid has to dropout because of poverty. Putera Sampoerna Foundation’s initiatives give students a chance to be Indonesia’s future leaders.

Sampoerna Sponsored Students
“The brightest of the Poorest”

(Their uniform reminds me of the marines.)

I wanted to know more, so I watched this more than hour-long video, a paeon of praise and self aggrandisement . It starts with an introduction which praises Mr. Sampoerna as being “a true friend of America“, which is sure to raise the hackles of many of you. But then, the seminar* was sponsored by the Center for Strategic and International Studies  (CSIS) which “since 1962, has been dedicated to finding ways to sustain American prominence and prosperity as a force for good in the world. After 50 years, CSIS has become one of the world’s preeminent international policy institutions focused on defense and security; regional stability; and transnational challenges ranging from energy and climate to global development and economic integration.”

This is a.pdf file of Mr. Sampoerna’s speech in which he states the following: “Imagine the possibilities provided by thousands of American educated local scientists, scholars, public policy professionals, and business executives going back and contributing to the development of their home countries. Also consider what contribution the empathy of so many American-educated individuals towards their U.S. counterparts would bring towards our efforts to achieve peaceful co-existence. Peace and prosperity, you see, is actually less expensive than its alternative.

Isn’t it about time the paradigm shifted in U.S. international strategies: Instead of “Gunboat Diplomacy”, how about “Diploma Diplomacy” … How about shifting from the World’s Policeman to the world’s Educator?

If I am not mistaken, the ratio between the annual costs of supporting university students to soldiers deployed overseas in non-combat areas is 1:3.

That might sound somewhat idealistic until you focus on what kind of “‘leaders” he’d like to breed: (local) American educated scientists, scholars, public policy professionals, and business executives.

Aren’t these the very same categories of folk who’ve got the planet in the mess it’s in?
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The book referred to in the introductory remarks is Higher Learning, Greater Good the first book to systematically identify and develop the evidence necessary to measure comprehensively the benefits of higher education and to estimate their economic value. And that last bit would have been music to Putera Sampoerna’s ears!

It is not Improving Education Finance in Indonesia, published in 2002, which examines the then state budget allocation for and distribution to the country’s elementary schools which you can download from here.

Putera Sampoerna – Saint or Sinner? 2

Please read Part 1 first.
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A Healthy Dose of Scepticism

In 2001, PSF started out as a “philanthropic foundation” by offering “scholarships” to bright high school students and undergraduates from financially impoverished families. By any definition, a scholarship is a gift and, as will be outlined below, the Sampoerna family could afford to fund them from petty cash. In November last year, Putera was 9th on the Forbes Indonesia Rich List with $2.3 billion.

However, in 2009 the Koperasi Siswa Bangsa (KSB) was established by alumni and the previous “scholarships” offered to bright students from poor families became student loans. In other words, a credit union was established.

(The KSB website is a one page JPEG weighing a massive 636kb, which in itself offers a negative perception of the IT component of the curriculum taught in PSF education institutes.)

The foundation continued to refer to scholarships last year, presumably because altruistic actions are generally applauded. To be fair, the term ‘loans’ only crops up this year and the word used from 2009 onwards in their history is ‘assistance’.

And it is this aspect of the PSF operations which became newsworthy in June. They are operating a charm offensive to counteract complaints from parents of students at the Sampoerna Academy in Malang that their children were being coerced into signing a three-year debt contract with the foundation.

The principal of SMA South Sumatra, the Sampoerna Academy in Palembang*, Erma Retnowati confirmed this a week later when she was quoted as saying that “students are required to be accountable for the costs which have been provided by donors by making achievements.”

Naturally, CSF used their press room to explain at some length (in bhs. Indonesia) their student loan policy as well as exercising their right of reply  by saying that “the ‘chip-in’ fund was done by the State Student Cooperatives (Koperasi Siswa Bangsa) consisting of alumni of Sampoerna Academy.” Furthermore, the fund (Rp.150 million) could be paid in 30 years without interest. (Note: this is not the three years that the Malang parents were complaining about.)

This agreement (the educational contract) was bound to all Sampoerna Academy graduates first batch last year.

Given that 55 is the retirement age in Indonesia, then a 30 year repayment period is a working lifetime. Furthermore, “bound” (and gagged?) suggests that there was no coercion: it was compulsion!

I await with interest the report from Parliament’s People’s Welfare Commission from the Parliament who inspected the Malang Sampoerna Academy on the 20th of June after receiving the parents’ complaints.

The following poorly proofread press release was issued by PSF in July last year.

Dana Siswa Bangsa is the first student assistance, in the form of non collateral loans, in Indonesia that provides financing solution for top-scoring students with leadership potentials wishing to continue to tertiary level without placing financial burden on their families. Their contributions will beginsix months after graduating college/university and earn their own income. The college/university graduates are expected tocontribute 20% of their salariesduring their productive working age. The contributions will be distributed through Koperasi Siswa Bangsa to finance the next generation of students in pursuinghigher education.

So my original post from a year ago is substantially correct and we should remain perturbed by the continued self interest of PSF.

(Memo to self: tell Our Kid that I’d like him to refund the fees I’ve paid for his schooling – preferably in my lifetime rather than his.) 

Later this year, Universitas Siswa Bangsa Internasional (USBI) and Lone Star College (LSC) will open the first accredited U.S. Associate Degree program offered in Indonesia.

The Sampoerna Foundation is building the university and the Associate Degree program based on the amalgamation of its two existing colleges – the Sampoerna School of Business and the Sampoerna School of Education. The USBI’s six hectare rented campus is located in Pancoran, South Jakarta, quite close to Jakartass Towers.

The only problem appears to be a distinct lack of transparency from LSC, which does not auger well for future relations.
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That article about the Palembang Academy* in the Post was written by their local stringer Ansyor Idrus, who the next day followed it up with another which highlighted the undoubted scientific achievements of the Academy’s students. However, I feel justified in suggesting that due to the timing, so close to the bad news emanating from Malang, Mr. Idrus may have been ‘conned’ into writing his articles. After all, as this wiki page suggests, there are other “top schools” in Palembang!

Read Part 3 – Sinner tomorrow.

Putera Sampoerna – Saint or Sinner? 3

First read Part 1 and Part 2
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Sinner!

Through four pillars of activities, Putera Sampoerna Foundation (PSF) is committed to create Indonesian future leaders and entrepreneurs of high caliber with strong moral fiber to meet global challenges.
Putera Sampoerna

Given the major sources of the wealth of the Sampoerna conglomerate, I would question what right PSF has to instill “moral fiber” in its students.

On May 18th 2005, Philip Morris International (PMI) completed the acquisition of 97.95% of PT Hanjaya Mandala Sampoerna Tbk., the Sampoerna tobacco company. A block of approximately 40% of the outstanding stock was sold by the controlling Sampoerna family, especially by Putera Sampoerna and other insiders (i.e. family members including Sinta Dewi, Villia, Soenarni, Boedi and Sulistiani Sampoerna – the latter now deceased?) in a negotiated transaction. The series of transactions valued the company at approximately $5.2 billion. Which meant that Putera and his “insiders” trousered c.$2.08 billion.

At the time, the 58 year old Putera Sampoerna said that the sale was the right thing to do because PMI was positioned to foster growth of Sampoerna in terms of sales of kreteks. Although Sampoerna for the past year had recorded the highest revenue in the past ten years, he stated, the cigarette business would get tougher in Indonesia. In order to sustain the growth, Sampoerna would have to venture overseas. The Sampoerna family, he said, was now looking for re-investments in other areas, possibly agriculture and infrastructure.

Sampoerna Agro is one of Indonesia’s largest plantation companies. You can download their 2012 Annual Report (.pdf) from here.

A couple of years ago, PT. Union Sampoerna Triputra Persada (USTP) “a rapidly growing company in the field of oil palm plantations“, was one of several companies castigated for relocating orangutans to the Nyarumenteng Reintroduction Center, managed by the Borneo Orangutan Survival Foundation near Palangkaraya.

“Hardi Baktiantoro, the center’s habitat campaigner, said that rather than this program being a success, the relocation of orangutans from their original habitats exemplified the government’s failure to protect the species.”

I wouldn’t include gambling in the “infrastructure” sector but that is where Sampoerna has been highly visible. In 2003, an online gambling company Mansion.com  was established and registered in Gibraltar.

In 2006, Manchester United had been set to sign a huge £70m deal with gaming company Mansion, but talks broke down after the club raised concerns about being associated with a gambling operation.

There were no such qualms for Tottenham Hotspur and Mansion remained their shirt sponsor until 2010. From 2011 until the end of last season, Manchester City were the recipient of Mansion’s largesse.

Ties to SBY

In June 2006, two years after Susilo Bambang Yudhoyono won the presidency, the Sampoerna family started Jurnal Nasional, a daily newspaper in Jakarta. Political opponents of Yudhoyono – even journalists who work for the paper – say the publication’s content is controlled from the Merdeka Palace, Indonesia’s White House. Sunaryo Sampoerna, an art collector and a nephew of Putera, was chairman of PT Media Nusa Perdana, which publishes the newspaper.

Sampoerna’s most famous kretek brand is Djie Sam Soe or 234 in Hokkien..

In order “to encourage better, more accurate writing”, the Anugerah Adiwarta Sampoerna is an annual award for Indonesian print media journalists and photographers covering legal, arts, business and environmental matters. To the best of [PSF’s] knowledge*, this Award was initiated and organized by PT HM Sampoerna Tbk., The Award ceremonies are always filled with Sampoerna banners, logo and souvenirs. The juries have included Sampoerna executives.

Wahyu Dhyatmika, leader of Jakarta’s Alliance of Independent Journalists, said, “On top of their advertising and sponsorship, the journalist award is a very effective method to reach out to the subconscious of journalists,”

Another thread in the Sampoerna – Yudhoyono connection: Putera Sampoerna hosts Yudhoyono’s youngest son, Edhie Baskoro, the Democratic Party secretary-general, in an office inside his Sampoerna Strategic Square tower, in Jakarta. The 27-year-old politician has a whole floor for himself.

Sources: Andreas Harsono and the Center for Public Integrity

Offshore Accounts – Tax Evasion?

Between 2001 and 2010, Global Financial Integrity estimated that US$109 billion was illicitly transferred out of Indonesia

That is more than Indonesia’s foreign currency reserves at the end of June! Another comparison is that fuel subsidies cost about $20 billion in 2012.

At least one offshore account is, or has been, controlled by a member of the Sampoerna family. On May 31 2005, two weeks after the sale of their tobacco company, TrustNet established an offshore trust called Strong Castle Trust in the Cook Islands. Sulistiani Sampoerna is listed in the TrustNet files as “trust settlor”, possibly indicating it was her money the trust was to hold. Her address was given as Jl. Ambengan No.19. RT/RW Ketabang, Surabaya.

So, what and where are the other Sampoerna offshore accounts?

Download Secrecy For Sale: Inside the Global Offshore Money Maze
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Coming tomorrow: Putera Sampoena: Saint or Sinner?
——————————-You decide! (I have.)

Putera Sampoerna – Traitor?

Please first read Parts 1, 2 and 3.
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We are controlled by tiny corporate entities that have no loyalty to the nation and indeed in the language of traditional patriotism are traitors. They strip us of our resources, keep us politically passive and enrich themselves at our expense.
– Robert E. Gamer:  Developing Nations: A Comparative Perspective

“No loyalty to the nation?”

Excerpt from a profile in The Peak magazine (Sept. 2011)

After a long career of success, in which he made his family’s company into one of the most successful in the country, Putera Sampoerna says his business days are totally behind him.

Putera says that since the day he was born, he has been surrounded by people who believe in the virtues of hard work and dedication. It’s a value he has passed on to his children, and one he wants to pass on to the rest of Indonesia.

Despite having been born and educated abroad, Putera says he is dedicated to Indonesia and is proud to be a citizen of the country. “Indonesia has shaped who my family is today,” he said. “And it’s time to give back.”

Putera now lives in Singapore with his wife Kathleen.


“The language?”

Language is but a tool, but it must be used with care. My Indonesian is not strong enough to grasp the many levels and subtleties of the language, but my English most certainly is. If Putera Sampoerna chooses to use English, and he has a distinct, albeit faint, American accent when he speaks, then I am justified in offering this criticism, and my opinions of the man based on what he has said and written, and what others say about him in his presence.

His ‘Pearls of Wisdom’

There is a page on his blog – yes, he’s copied my example – containing bon mots presumably intended for the students in his various educational institutions.

Glossing over Winston Churchill’s alleged quote: “Keep Buggering On!!!”, several references can be found to the fact that many students, being Indonesian, are Muslim.

I don’t know what religion PS has on his KTP*, the Indonesian ID card meant to be carried at all times, but I suspect that he is Christian. He should know that in the New Testament it says this:
Give not that which is holy unto the dogs, neither cast ye your pearls before swine.
Matthew 7:6

Suggesting that some, many or any, of his students are ‘swine’ (pigs, hogs, etc.) is incredibly offensive.

Furthermore, as Michael Quinion, a lexicographer of some repute who runs World Wide Words, explains: The idea goes back … to one of the oldest books of the Bible:
No mention shall be made of coral, or of pearls: for the price of wisdom is above rubies.
Job, chapter 28, verse 18

These days ‘pearls of wisdom’ has to be classed as a cliché, a hackneyed phrase whose shine has been worn off through constant repetition.

So, methinks it’s time to go back to (language) school PS.

However, if he really does think of his students as ‘swine’, then he is subliminally alerting us to his true intentions.

*Students in the PSF educational institutes profess five different religions. For whatever reason, practical, financial or spiritual, PS is to be congratulated for his ecumenical approach.

Messianic Tendencies?

In entrapping students into a working life of servitude – the 30-year student loan repayment programme run by PSF graduates  – PS seems to be echoing Jesus who, in Matthew 4:19, “… said unto them, follow me and I will make you fishers of men.” (Or boys and girls?)

(Read this evangelical sermon but substitute ‘Putera Sampoerna’ for ‘God’, and ‘PSF’ for ‘church’, then try and spot the differences – if there are any.)

Intellectually immature yet academically gifted children of financially disadvantaged parents are easy targets. There are few parents who don’t wish the best for their children and don’t want them to fulfil their potential. Having PSF reach out and grab them, to feed, clothe and house them, and to put them through international schooling with other ‘gifted’ children, must be like winning a lottery or being struck by lightning. (The odds against either are very low, and both have potentially dangerous consequences.)

PS is by no means the first ‘visionary’ to ‘take’ children from their parents. Robert Owen (1771-1858), who owned a mill town, New Lanark (now a UNESCO World Heritage Site), was a philanthropist and social reformer and early co-operative pioneer. At that time, other factory owners paid their workers in part or totally with tokens, which were only redeemable in the company store, which often supplied shoddy goods at extortionate prices. Owen’s, however, were discounted retail shops whose profits were passed on to his employees.

Through the practical application of his ‘socialist’ vision, which included model housing, Owen came to believe that man’s character is made by circumstances over which he had no control, “that he is not a proper subject either of praise or blame.” In 1813 he published two of the four essays in A New View of Society; or, Essays on the Principle of the Formation of the Human Character, in which he expounded the principles on which his system of educational philanthropy was based. These principles lead him to the practical conclusion that the great secret in the right formation of man’s character is to place him under the proper influences – physical, moral and social – from his earliest years. Hence, Owen became an early pioneer of elementary schooling, what the Indonesian government calls ‘character building’.

Contrast that with the neo-capitalism of Putera Sampoerna (1947-?) ……… whose foundation (PSF) is committed to create Indonesian future leaders and entrepreneurs of high caliber with strong moral fiber.

A PSF student, Anto commented on The Usefulness of a University Education.

After spending 7 years in the university, my conclusion is [that] higher education does not contribute much in changing a person’s mindset. I found that one’s character, mindset and intellectuality does not change. Is it possible that these characters / factors have been permanently shaped during elementary school and high school?

Of course they are Anto, and surely that is why PS tells us that since 2005 PSF’s School Development Outreach (SDO), which is aimed at improving the quality of schools, including the quality of educators and educational staff, has served 118 schools and 9 madrasas involving 23,000 teachers. These programs are delivered through a comprehensive whole school development approach.


As a qualified educator and a professional through most of my working life, I have to ask the following:

  • In saying that “true to the mandate of the Constitution (UUD), education is indeed the government’s responsibility”, what right does PSF have to run ‘leadership’ programmes?
  • Who trains the teacher-trainers, and what is the educational philosophy and classroom methodology they are being taught?

In The Social System (1826), Robert Owen wrote: “To train and educate the rising generation will at all times be the first object of society, to which every other will be subordinate.”

Yes, in spite of 20% of the country’s annual budget being allocated to the education sector, as mandated by the Constitution, and, yes, academically bright children do need education to enhance their talents as, indeed do all children, I agree that Indonesia lags behind other countries in this sector. I’ve been saying this on Jakartass for over nine years.

However, in allowing the Putera Sampoerna Foundation to run its stated programmes, we are witnessing yet another delegation of responsibility, a capitulation to a non-accountable self-elected élite by the nation’s elected representatives who are, for better or seemingly worse, those chosen to be the country’s leaders.

Why CSIS and not the Indonesian Government?

The structures of power that exist are working to their own ends to extend their own capability at the expense of the freedom of our publics.”
Edward Snowden

The Center for Strategic and International Studies (CSIS) is not to be confused with the Centre for Strategic and International Studies (Indonesia), a think tank for the government on social, international, political and economic issues whose mission is to contribute to improved policy making through policy-oriented research, dialogue, and public debate.

Those two emboldened words encapsulate what the CSIS sponsoring Putera Sampoerna is not. A quick glance at its Board of Trustees page should make that patently clear. Start with Henry Kissinger, former director of Freeport, whose hands were bloodied in Indonesia before he became an architect of the Vietnam war.

The key question I’ve been reaching for in this series is this:
– Why is “leadership potential” a priority in the PSF programs?
– Furthermore, why is PSF doing this in partnership with American neo-cons?

The answers are clearly articulated in this recorded hour long CSIS Seminar – skip to minute 41.  To make it easier, I’ve cut an excerpt and converted it to an .mp3 file so you can listen along as PS says:

  • “I don’t have to educate everybody. I can educate the best.”
  • “We take in the top 5% academically from middle schools (SMP), and then put them through a very rigorous ‘culling‘ process for those kids who show leadership potential.” 
  • “The cooperative has clients – partnerships* with corporations such as Exxon … and Citibank who take the kids (i.e. post university graduation) on a ‘bonded’ basis.”
  • “I don’t have to solve the country’s education (sic) ; that’s for my Minister of Education to solve.”

The following ‘anecdote’ can also be read in the closing paragraph of this interview.

A lady journalist asked me at a press conference, “Putera, why are you doing all this?”

I sat there and said,”Have you seen my kids? They’re top notch, right?”

“Yes.”

“I’ve got 250 kids out there. Our Parliament is made up of 500 individuals. Now imagine if our parliament was made up of 250 of my kids.

“There’s nothing to say … it’s obvious.”

Yes, it is.

However, I’ll leave it to conspiracy theorists to determine and state categorically that Putera Sampoerna is planning a coup.

He is obviously furthering his “dream” in league with American neo-cons and multi-national corporations; this could well fit in with the ‘world government‘ plans of Exxon, Citibank, the Rockefellers, the Rothschilds and the masons.

So … ?
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*Browse the quarterly reports here to glean who the mostly upmarket partners are.

All four parts of Putera Sampoerna – Saint or Sinner? are available in sequence or download as a .doc.
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Mea culpa – ‘Er Indoors has just told me that we once, a dozen years or so ago, hobnobbed with the Sampoerna clan on their island, one of the supposed 1000 in Jakarta Bay, and that their rather expensive yacht brought us back to shore.

Putera Sampoerna – Slave Trader?

A couple of days ago I was aghast by what Putra Sampoerna said in an interview in theJakarta Post about “his social opus, the Putra Sampoerna Foundation.”

First a bit of background. According to the interview, he is the “heir to PT HM Sampoerna“. I don’t think so as it not his anymore: the Sampoerna family is incredibly wealthy having sold their 40% share in the cigarette company to Philip Morris for $5.2 billion in 2005.

However, he is the founder of Sampoerna Strategic, which has a number of ‘strategic’ businesses. These include telecommunications, agriculturea diversified plantation company currently engaged in the production of Germinated Oil Palm Seed, Crude Palm Oil and Palm Kernel, Slab Rubber and Sago, and forestry among the top five tropical hardwood plywood producers globally.

There is also a property division.

Standing gracefully with two magnificent towers, Sampoerna Strategic Square proudly distinguishes itself as a signature building in the heart of Jakarta with its unique glass dome and beautiful garden. While its exterior view entices, its interior embraces you with a warm welcome as you step into this luxurious iconic building.

Sampoerna converted this building, formerly known as Sudirman Square and the headquarters of Danamon Bank, in 2007. It is the coldest building I’ve ever been in, with the centralised air conditioning set at freezing throughout.

Apart from these company divisions, Sampoerna is a major partner in Mansion (Gibraltar) Limited, an online gambling company that operates casino and poker websites. Online gambling is banned in the USA. However, the small state of Gibralter is much more easy going: it is a tax haven and accounts of large companies “are not available to the public“.

Manchester City Football Club fans may be interested to know that “the global online gambling and entertainment business, Mansion Group, [is the] new International Betting Partner“, having previously had their logo on the front of the Tottenham Hotspur shirts.

(Local football fans may well wonder why they couldn’t be more involved in the Indonesian football leagues.)

Of course, you can’t really be a large Indonesian company without playing the Corporate Social Responsibility scam. For a start, there is this page of gobbledegook about Sampoerna Strategy’s Sahabat microfinance programme.

Even with the power of 1205 reliable Human Resources we continue to innovate to develop products that suit the needs of the society, we continue to reach out and without stopping we take steps together to give you the best. Together with Sahabat, not just to give and serve, but to reach the current evidence in order to achieve in the future.

IF IT’S SAMPOERNA, YOU KNOW IT’S SEMPURNA

Well, it isn’t ‘perfect’ in my estimation, not by a long mile. It’s the Putra Sampoerna Foundation and, in particular, the Sampoerna Academy which gives me grave concern.

In support of the Ministry of National Education’s initiative “Sekolah Bertaraf Internasional”, Putera Sampoerna Foundation embarked on a complementary effort to provide deserving teens, students with excellent academic achievements and leadership character who come from the lowest economic quintile*, with access to an international standard high school education through Sampoerna Academy. Sampoerna Academy is a partnership program between Putera Sampoerna Foundation and some provincial governments with a comprehensive boarding system to instill the values of leadership skills, morality, empathy, tolerance and social skills needed to facilitate the development of Indonesia’s future leaders.
(*fr. Websters: quintile: the aspect of two celestial bodies 72º, or one fifth of a circle apart. Eh? )

On the face of it, it seems to be a noble endeavour, not that I believe private businesses should be involved in the provision of schooling unless it’s a vocational school providing skills training in, say, car mechanics. Check out the Solo Techno Park for a fine example of synergy between government, businesses and academia.

But it is what Putera Sampoerna says, somewhat gloatingly, in the interview that reveals his true motivation.

For the Sampoerna Academy, we take the top five percent of academic achievers from junior high school and then select those that we believe have leadership potential.

These students are the smartest, the hungriest and come from the poorest families. We have them in our boarding school for three years so we can instill our value system into their DNA. The values are leadership, entrepreneurship, and giving back to society.

I do not give scholarships for my students. They have to pay me back a total of US$15,000 spent for the three years in the academy.

This is because I have invested in, let’s say, you, a student from a poor village. I call it an equity investment. I will support you through school and find other people to support you through school. As soon as you get a job, I’m entitled to 20 percent of your income throughout your life.”

So, these places aren’t awarded for purely altruistic reasons but because they will offer him a financial return, and if it’s 20% of future earnings “for life“, then potentially great profits. The expression “instill [his] value system into their DNA” has a sinister connotation: brainwashing? The society they will give back to is his, not mine or yours. That’s even more sinister in my book as it smacks of a dictatorial fascism.

Given that he has brought a number of “sponsors” into the programme who can be expected to employ the graduates from his ‘Academy’, he is in a position to render them unemployable within his network if they do not pay him his tithe.

Unfortunately, the research project “Contemporary Forms of Bonded Labour in Southeast Asia” was completed in 2009. Otherwise this particular instance of capitalism in its most inhuman form would have made a suitable case study.

Taking impressionable junior high school students, and tying them to an agreement for life, is surely a form of indentured labour, or debt bondage, as it is mediated through patronage relations which reduces the worker’s personal autonomy to the degree that s/he is prevented from protecting her/his legitimate personal interests.

I would also argue that it contravenes the Universal Declaration of Human Rights, particularly Article 4 which states: No one shall be held in slavery or servitude; slavery and the slave trade shall be prohibited in all their forms.

I recognise that it is possible that there has been a mistranslation of Putera Sampoena’s actual words, or perhaps they have been edited out of context. However, considering that the bulk of hiis wealth has come from the evil weed and gambling, he’s not a man I would entrust my son to.

Would you?

Civil Rights 2b (Business People)

Civil Rights 2a is here.

There are 32 billionaires on the 2016 Forbes list of the richest Indonesians, and 14 of them have made it onto the list through their palm oil businesses.

The following oligarchs have controversial track records in managing their palm oil holdings, and have also established education institutes named after their conglomerates and, in the case of one, himself.

*The aim of training ‘leaders’ is stated in the ‘brochure’ website of each of their educational institutes. In other words, they are inculcating their own personal values – which put vast profits before the rakyat not on their gravy trains.

Sinar Mas

Established by Eka Tipta Widjaja, the palm oil sector of the Sinar Mas conglomerate is under the umbrella of Golden Agri-Resources (GA-R), which is headquartered in Singapore. It has the largest area of palm oil plantations in Indonesia under the sub-umbrella of PT Smart Tbk. which is listed on Jakarta’s Bursa Efek (Stock Exchange). Although publicly committed to a zero deforestation policy, GA-R has a chequered history.

Another company founded by Eka Tipta Wijaya is Asia Pulp & Paper (APP) which as a result of the 1997 Asian financial crisis (krismon) defaulted on more than $10 billion of deb. Since then, the company has been at the center of many environmental controversies and has been accused of being involved in illegal logging in Cambodia, China, and Indonesia.

– In June 2012, APP published a sustainability roadmap representing its zero deforestation commitments: but APP is still continuously monitored by international environmental NGOs.

– In 2013 it was reported (p.13. WWF report) that Sinar Mas had a processing mill in what was the forest around the protected Tessa Nila forest complex in Riau. Also (p.4 ibid) APP had a plywood factory. With the increased economic value of the two commodities, illegal palm oil plantations encroached in the protected area.

Sinar Mas World Academy
Vision: “To shape the future as a dynamic learning community that embraces Asia and engages globally.

Values
A sound mind, a sound body …”
So those with physical and/or mental handicaps are not acceptable?
“… ability of life-long learning …”
If you’re not learning, you’re already dead.
“… an optimistic attitude towards life and a strong sense of social responsibility.”
Open to interpretation and/or indoctrination.

Mission
We will engage with our learning community.
We will act as members of our learning community.
Two statements with basically the same meaning.
We will thrive as leaders.*

Djarum

Budi and Michael Hartono have been the richest oligarchs in Indonesia for several years, Their Djarum Group has expanded from tobacco into palm oil via PT Hartono Plantations Indonesia (HPI), “which presides over tens of thousands of hectares in Kalimantan” but doesn’t seem to have a company website. The link suggests that through seven companies, mainly in West Kalimantan, HPI’s palm oil holdings at the end of 2013 totalled 85,225 hectares (Roughly 859 square kilometres/330 square miles = 25% larger than Jakarta.)

HPI does not appear to be a member of the Roundtable on Sustainable Palm Oil (RSPO) which, since 2004, “has been transforming the palm oil industry in collaboration with the global supply chain, to put it on a sustainable path.”

Getting more information about Djarum Group’s palm oil activities depends on the websites of sub-contracted companies, such as elma which offers “trustworthy natural services services“.
Such as …

Djarum don’t exactly hide their light under a bushel. Instead they offer a wealth of information about their Social Initiatives.

Djarum is committed to realizing Indonesia’s potential to become a well-rounded world citizen through the Djarum Foundation operates a number of programs in selected fields that have been chosen for their potential to make a positive difference to society. Specifically, Djarum Foundation promotes excellence through community, sport, environmental conservation, educational and cultural expression programs.”

Maybe it’s the cynic in me, but the feel good factor built into all these programmes ensures that the Djarum tobacco brands remain in the mind’s eye for all those susceptible to their addictive products. One would think that their Sports Initiative would be counter-productive. But no: “since 1969 Djarum has actively supported badminton, arguably Indonesia’s best sport. Furthermore, since 1992, nine PB Djarum athletes have scored Olympic medals for the nation, a record to be proud of.”

[Note: just 30 Olympic medals have been win by Indonesians.]

Their Environmental Initiatives are well co-ordinated and, it could be said, essential. Their co-ordinated corporate T-shirts worn by volunteers (or staff?) aren’t..

Educational Initiatives
Since 1984, through Djarum Scholarship Plus, the foundation has given “both financial support and soft skills training to good graduates with bachelor degrees, honing recipients’ abilities and skills to become intellectual leaders. As such, it is hoped that recipients can widen their horizons and develop the emotional and intellectual skills necessary to build Indonesia into a strong country capable of rising to future challenges.“.

[Click for the full-sized image of a carefully posed Djarum ‘Leadership Development’ session.]

Sampoerna Strategic

Putera Sampoerna gained his wealth as heir to the Sampoerna cigarette company (PT HM Sampoerna Tbk.) which he led from 1978 until 2000, when he was replaced by his son Michael. In 2005 he sold 97% of his family’s shares, and thus the company itself, to Philip Morris International which in the past had been charged with money laundering and racketeering.

After the sale, Putera and his family founded investment company Sampoerna Strategic which has businesses in the telecommunications, agriculture, forestry, and the micro-finance industry.

PT Sampoerna Agro TBK (SGRO) is their palm oil business.

  • As of September 2016 SGRO had 137,995 hectares of land. The company says it is committed to create a harmonious and balanced business practice through the triple bottom line concept (3P – People, Planet, Product)  … which … serve as a foundation and belief that welfare creation is the peak of a sustainable business performance.

  • SGRO does not have a No Deforestation, No Peat, No Exploitation (NDPE) policy with its CPO buyers: Golden Agri-Resources, Louis Dreyfous, Wahana Citra Nabati.

  • It claims to preserve High Conservation Value areas, yet the company does not make known the amount of preserved hectares.

In August 2016 the company was ordered to pay $76 million over fires that burned across one of its concessions in Riau province in 2014.

Putera Sampoerna Foundation

I wrote at some length three years ago about the PSF, and my posts remain high in the ‘top posts’ list in the right side bar. Read Putera Sampoerna – Saint or Sinner? online here or download a pdf file.

Sampoerna Strategic HQ, Jakarta

Thatcher: Dictators’ Friend …..


…. and Enemy of the People.

I’m not glad that Margaret Thatcher is dead – at last. Oh no: I merely wish that she had stayed in Grantham, Lincolnshire as her father’s daughter, helping him run his grocery store.

If she had, she might now be mourned by all its residents, rather than the few who wish to erect a statue of her. After all, she was the longest serving Prime Minister in recent times. But she left a “legacy [which] divides the town, much as it divides Britain.”

Christine Cooper, 91, who was a few forms above Thatcher at the Huntingtower Road primary school, … called for a statue, though said it should be in a “safe place” as it risked being vandalised.

Much as statues of such fallen dictators as Saddam Hussein and Mohammed Gadhaffi were.

That divide is reflected here in Jakarta, with a book of condolences waiting for signatures in the British Embassy, and those like me who won’t sign because we tried to prevent the havoc she wreaked on society. If I were still living back in Blighted Britain, in Brixton, South London, I might have been tempted to join the street party held to celebrate her death.

Why did I hate her so much? Why does my blood still boil at the mere thought of her?

Writing in the Guardian, Gary Younge says: Hers is a living legacy of marketisation, privatisation, economic stratification and social dislocation. Its victims and beneficiaries are not only still alive; they are still being born. A [UK] poll shows that Thatcher’s policies – such as cutting income tax and raising VAT, privatisation and cutting top tax rates for the rich – are among the least popular today.

In the parliamentary debate regarding whether Thatcher should be given a state or ceremonial funeral, Glenda Jackson MP said it best: “Everything that we had been taught were vices, under Thatcherism became virtues: greed, selfishness, no care for the weaker, sharp elbows, sharp knees – they were the way forward.” (A rivetting video of her speech)

It is sad that Thatcherism continues in many of those countries which lauded her, and that includes Indonesia which she visited in April 1985. At that time she said of Suharto that he was, “one of our very best and most valuable friends.”

Along with her support of the apartheid regime in South Africa, she was also a firm friend to many other strong leaders – more commonly known as ‘dictators’. Happily, none of them, such as Gen. Pinochet of Chile, are now around to attend her funeral.

Yet Thatcherism, a catchphase for neo-liberalism, continues to dominate the world.

Governments sell off their citizens’ birthrights to the highest bidders, or those prepared to offer blandishments, often as not in the form of fat brown envelopes.

Here in Indonesia, admittedly predating Thatcher, Suharto’s acolytes and those of most presidents since, have been eager pigs at the trough of perceived plenty supplied by transnational conglomerates.

The country’s natural resources have been sold off with little benefit for local indigenous populations or the environment.

– In Papua, the government owns just 9.36% of Freeport Indonesia’s contentious Grasberg copper mine. Mountains have been lopped and the tailings (residue) have poisoned rivers.

There is coal, but just 24.72% of it is designated for the domestic market. Much of the rest is ‘owned’ by the Bakrie Bros who sell it to China and India. Coal mines can also be sited in protected forests, and not all mining companies heed the culture of local communities.

– Vast tracts of forests, much of them supposedly ‘protected’, have been sold off for palm oil plantations, most of which appear to be owned by companies such as Sinar Mas headquartered in Singapore or Malaysia.

– Here in Jakarta, water delivery services were privatised in 1997, when the city-owned water company PAM Jaya made a cooperation agreement with two private companies: Suez (Palyja) and Thames (TPJ; now Aetra). Since then, the service has worsened and water tariffs have been increasing steadily. (video)

(New governor Joko Widodo has talked of renegotiating the contracts so that the city government will reassume responsibility.)

– Education has been privatised with more regard for profits than for the education provided. Competitiveness rather than creativity is encouraged, and where that is not true, oligarchs such as Putera Sampoerna seek to profit from their students’ futures.

– Indonesian oligarchs, such as Putera Sampoerna and Eka Tjipta Widjaja of Sinar Mas, hide their ill-gotten billions offshore, thus avoiding local taxation.

All that – and much, much more is why I say ….

…………………………………………………………
Worth reading
Municipal Services Project explores alternatives to privatisation.

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