Indonesia's super-wealthy still love their Gulfstreams and Harley Davidsons
Veven Sp Wardhana & Herry Barus
What if we try to track down some of Indonesia's super-rich for whom
travelling is a hobby � and find out something about their special
travel preferences? The first thing we discover is that the travel
bureaus in Indonesia are coy about providing any information. We
suspect that this is not because their clients insist on
confidentiality but more because it's a mystery to the travel bureaus
themselves. The problem is that most of your Indonesian super-rich
don't book their plane tickets through travel agents. They just jump on
a private jet. Nor are the companies which look after the privately
owned planes keen to talk. They are unwilling to release information,
many of them, because they are close to ex-president Suharto's family,
and our own enquiries came just after Suharto announced his resignation
from the presidency. Only one or two of them were able to help us, and
even then they wouldn't say much.
The existence of aviation charter companies in Indonesia is not a new
phenomenon. PT Dayajasa Transindo Pratama for example has been going
since 1986, while Indonesian Air Transport (IAT) started up even
earlier, in 1968. The majority of air charter aircraft are leased out
by the oil companies. Recently, however a number of private individuals
have begun to appreciate the benefits of jet-powered travel.
And we don't necessarily mean leasing. Many of them find the purchase
option increasingly attractive, especially with the demands of business
being what they are in this era of globalisation, when fast
communications with the outside world have become an absolute
necessity.
Once you have the jet, of course, you find that it's useful not only
for business purposes but also for taking the family on trips abroad �
business permitting, that is. Families who often make use of private
jets include Pontjo Sutowo, Sudwikatmono, Aburizal Bakrie and also
Abdul Latief.
Private jet prices can range from US$3 million to US$33 million. This
figure does not include the cost of fitting out the interior of the
aircraft. After the purchase has been transacted, the interior decor
and external colour scheme are dependent on customer taste.
Communications and navigation equipment likewise: although standard
installations are provided, it is common for executives everywhere,
including Indonesia, to specify more sophisticated equipment � as they
might if they were buying a yacht to sail around in.
On larger aircraft, the cabin lends itself for conversion to sleeping
quarters. The ALatief Corporation's BAC 1-11, for example, in its
original configuration could accommodate 100 passengers. After
purchasing the aircraft, ALatief remodelled the interior completely,
leaving seating for only 18 passengers. This made space for a large
bedroom, a bathroom complete with shower and vanity with gold-plated
faucets, and two sofas. The additional cost of conversions like this
can be as much as US$3 million or from 10 to 20 percent of the purchase
price of the aircraft.
Apart from the capital cost, the expense of using an aircraft can be
gauged from the operating costs. Fuel, maintenance and catering alone
can cost up to US$2,500 per flying hour. And then there are crew
salaries, training, insurance and hangarage which might be as much as
US$30,000 per month. These rates are for a new aircraft, whereas the
rates for a used aircraft can be even higher. The maintenance cost for
the aircraft operated by Sudwikatmono and associates is US$100,000 per
month. 'Not including spare parts as required,' said the cinema chain
king Sudwikatmono.
But are they privately owned, these aircraft? Isn't private ownership
of aircraft banned by government regulation? Well, just as the shadow
puppeteer is never without a story, so your Indonesian entrepreneur is
never without a way around the regulations. As in the case of the
prohibition on private ownership of islands, where it was found that
Indonesian executives who were rich enough could acquire them in the
name of a company, so also can your private plane be acquired in the
name of a company.
Unlike private islands, though, most private planes are made available
by their owners for commercial use by others. In other words, the
private aircraft is actually placed in the hands of an aviation charter
firm and made available for hire. Pontjo Sutowo's Gulfstream IV, for
example, is looked after by Indonesian Air Transport, as are the
aircraft of Aburizal Bakrie and Sudwikatmono. 'The maintenance costs
are prohibitive if you don't get some commercial return,' explained
Sudwikatmono.
Disneyland
Setya Novanto, president director of PT Citra Permatasakti Persada,
a consortium of companies active in a variety of fields, and also the
owner of the Tee Box Cafe, a watering hole in South Jakarta, tends to
choose his travel destinations with the help of the rest of the family.
'Once, before the difficult times caused by the monetary crisis, the
children would all come along. I would arrange my own holidays to
coincide with the children's school vacation time. Usually I would make
the arrangements a month ahead. But in the critical times we're going
through now I haven't made any plans, and I think the children
understand the situation,' said this businessman, author of the book Manajemen Soeharto (1997).
If the children were on their long vacation, Novanto would take them to
Disneyland or other places suitable for children of their age.
Otherwise, in the summer, they might choose to go together to Europe.
For the shorter vacations, they might go somewhere within Indonesia.
Bali was a favourite destination.
Harley Davidson
Another kind of travelling is indulged in by members of a different
set of super-rich Indonesians. They are the Harley Davidson motorcycle
enthusiasts. They have an association called the Harley Davidson Club
of Indonesia, HDCI. Because of their love of this particular make of
motorcycle, you can be sure that the travelling the members of the
association do will always involve this favourite mode of transport of
theirs. Recently they organised a tour to Daytona, USA.
Achmad Rizal, executive director of the well-known Jakarta restaurant
'Waroeng Kemang', a member of HDCI, hasn't missed one annual visit to
South Dakota in the last three years. Sturgis, South Dakota is the
world's other Harley Davidson Mecca. Harley Davidson enthusiasts flock
here from all over the world at the same time every year. 'At that time
there would be upwards of 250,000 Harley Davidson enthusiasts getting
together to talk about the Harley or show off their riding skills on
the Harley Davidson. It's a lot of fun. One year, 1997, there were a
million people there, all Harley Davidson enthusiasts,' he said.
Rizal usually goes with ten other HD enthusiasts from Indonesia. When
they arrive in the land of Uncle Sam, the Indonesian team members go
straight off to collect their Harley Davidsons from a hire company and
set off on the road to the rallying point on their hired machines �
complete with all the essential attributes and accessories. And what
does the Indonesian delegation do when they get to their destination?
'Ya, immerse ourselves in the general Harley-mania, buy up gear and
accessories sporting the HD logo or buy HD parts and equipment to take
home and install on our own machines in Indonesia.'
When it comes to cost, Rizal explains that the members of the group
will each have their own budget. 'On a tour like this, involving your
favourite hobby, there's no limit to the amount you might spend. Each
person would spend at least Rp15 million. That would be just for the
plane ticket and hotel. Then you would need about Rp10 million to hire
a Harley. Some people would spend Rp 35 million to Rp 40 million on one
trip,' Rizal said.
Besides touring America on Harley Davidsons, Rizal with a number of
Jakarta and Bandung business associates once made a round trip of 960
kilometres on the continent of Australia. Starting from the Gold Coast,
this trip took them along the Eastern seaboard and into the mountains,
with opportunity to sample the renowned Australian seafood and visit
all the popular tourist spots. As well, they are frequent visitors to
Singapore, Malaysia and Thailand � needless to say, on their Harley
Davidsons.
Abdul Latief, Minister of Labour (1993-1998), Minister of
Tourism, Art and Culture (16 March � 21 May 1998), CEO of the holding
company ALatief Corporation with subsidiaries in the construction,
retail, agribusiness and hotel industries � including the supermarket
chain PT Pasaraya Toserjaya.
Aburizal Bakrie, Board Chairman of Grup
Bakrie & Brothers, Chair of the Chamber of Commerce and Industry
(Kadin), major shareholder in Bank Nusa, May Bank Nusa International,
PT Daya Sarana Pratama and other companies.
Achmad Rizal, well-known professional in the
hospitality industry, especially bars and cafes, executive director of
Jakarta restaurant 'Waroeng Kemang'.
Pontjo Nugro Susilo Sutowo, President Director
of Nugra Sentana, major shareholder in about 30 business companies
including a marine dry dock, CEO of PT Indobuild Company which manages
the Jakarta Convention Centre, and Chairman of the Indonesian Hotels
and Restaurants Association (PHRI).
Setya Novanto, Executive Director of PT Dwisetya
Indolestari; board member of a number of companies, including PT
Solusindo Mitrasejati, PT Dwimakmur and PT Multi Dwisentosa, board
chairman of PT Bukit Granit Mining Mandiri and PT Nagoya Plaza Hotel;
as well as having a key role with one of Siti Hardiyanti Rukmana's
companies in the national driver's licence computerisation project.
Sudwikatmono, owner of a business empire
comprising the Subendra Group, Jababeka Group and Golden Truly Group,
and one of the four Indonesian business tycoons known as The Gang of
Four � the other three being Liem Sioe Liong, Djuhar Sutanto, and
Ibrahim Risjad.
Veven Wardhana (veven@indosat.net.id)
is a virtual media editor with Gramedia Majalah in Jakarta. He also
coordinates the Media Watch programme at the Institute for the Free
Flow of Information (ISAI). Herry Barus is a journalist with Warta Kota
(Jakarta), and before that covered professional lifestyles for Tiara
magazine. This article is extracted with permission from their book
'Para Superkaya Indonesia' (Jakarta: ISAI, December 1998). John Gare (johngare@melbpc.org.au) was the translator.
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