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Archive for the ‘Leadership’ Category

Prita Kemal Gani: A Woman Entrepreneur with A Passion for Education

Posted by Filly On August - 2 - 2010 Comments Off

Jeannifer Filly Sumayku | The President Post

Passion, Concept and Perseverance are three important factors that are needed to become an entrepreneur, according to Prita Kemal Gani, the recipient of Enterprise Asia’s 2009 Outstanding Entrepreneurship Award for Asia Pacific.

With her strong passion for public relations, she opened a training school on that subject with only 30 students and classes held two or three times a week.

Today, the small PR training school has been transformed into the most credible graduate school of communications, STIKOM London School of Public Relations (LSPR).

She also has a huge passion for education related to her childhood dream of becoming a teacher.

“My activities in managing LSPR allow me little time to teach. But my dream is to continue teaching when I retire later,” says Prita.

Prita, whose father hails from Surakarta, Central Java, and mother from Padang, West Sumatra, was born in Jakarta in 1961.

She was raised mostly by her mother after her father’s death when she was five.

She fell in love with PR when she realized that being a PR person is a great profession since she could meet ambassadors and famous and important people.

In the past years PR has undergone very advanced developments. The media information era is growing very fast, requiring organizations to become more transparent and communicative with targeted communities.

Therefore, the role of PR is very important, because every organization will have to package the information in presentable, accurate and timely ways.

“The duty of a PR person is not just talking to the media or the public, but also designing an overall public relations strategy within an organization, including evaluating designed and implemented programs,” explains Prita.

After graduating from Trisakti Hotel Management School in Jakarta, she continued her PR studies at the London City College of Management, Britain, and then earned a Master’s degree in business administration at the International Academy of Management and Economics in Manila, the Philippines. Later, she became the PR Director of Clark Hatch International Jakarta for three years, from 1989 to 1992.

It was during this time that she met her future husband, Kemal Effendi Gani, who was then the editor of Swa magazine. To Prita, journalism goes hand in hand with PR and she found she had a lot in common with Kemal. Amid her activities as a professional businesswoman, this wife and mother of three still finds time for her family.

Her background and experience enabled her to understand the concept in starting a PR education institution.

She used her networking with Clark Hatch members, who are mostly expats, to become freelance teachers.

The first three-hour classes were held at Wisma Metropolitan two or three times a week. Now LSPR has more than 5,000 students in four campuses.

The Bachelor program of LSPR has five majors, namely Public Relations Studies, Mass Communication Studies, Marketing Studies, Advertising Studies, and Performing Arts Communication Studies. The Master Program was opened in 2003 offering four majors: Corporate Communications, Marketing Communications, Journalism and Media Studies, and Mass Communications.

The curriculum is 60% international referring to London Chamber of Commerce and Industry Examination Board, The City and Guilds of London Institute and University of Cambridge International Examination.

Through March 2010, a total of 10.970 have graduated from LSPR.

Last but not least is perseverance, as it is needed the most in facing problems.

“I have proven that perseverance gives good results; when I lose my perseverance I start losing my grip,” said Prita.

Like others, LSPR also experienced growing pains, facing difficult problems along the way.

“During hard times, I pray, and I always ask God to lead me in everything I do,” she says.

Prita always shares with the teachers and staff members problems related to LSPR.

As a message to Indonesian women entrepreneur, Prita states: “Every woman must have dreams and goals and never be afraid to have any dream; the most important thing is to find the right way and to persevere in achieving those dreams.”

(The President Post printed edition July-August 2010)

Leadership in Southeast Asia: A Lesson from Singapore

Posted by admin On June - 29 - 2010 ADD COMMENTS

Ambassador of Republic of Singapore, H.E. Ashok Kumar Mirpuri, speaks on the subject on Leadership in Southeast Asia: A Lesson from Singapore, at a Seminar organized by the President University, located at Jababeka City, Cikarang, Indonesia.

The Physiology Of Leadership

Posted by admin On May - 14 - 2010 ADD COMMENTS

The Leading Edge
The Physiology Of Leadership
Sangeeth Varghese, 05.03.10, 1:40 PM ET

I was excited as soon as I saw the title of Daniel Coyle’s book, The Talent Code: Greatness Isn’t Born. It’s Grown. Here’s How (Bantam, 256 pp., $25). In my own first book, Decide to Lead, I put forward the idea that leadership is not a trait you’re born with but a skill you build, through a series of decisions you make as you respond to defining moments in your life. I based Decide to Lead on my research into the lives of some 100 great leaders in history. Coyle goes further, providing a scientific basis for the concept.

He built The Talent Code on scientific discoveries involving the neural insulator myelin, which some neurologists now consider the holy grail of the acquisition of skills. He argues that human ability, whether to play baseball or play Bach or lead a team, develops when chains of nerve fibers repeatedly carry tiny electrical impulses–when signals travel though circuits. When we practice doing something the right way, swinging a bat or playing a note or speaking to an audience, our myelin system responds by wrapping layers of insulation around the relevant neural circuits, each layer adding a bit more skill and speed and memory. The thicker the myelin gets, the better it insulates, and the faster and surer our thoughts and movements become.

According to Coyle, this observation tells us several important things about how we see and nurture talent. First, myelin is universal. Everyone can grow it, most swiftly during childhood but also throughout life. Second, it is indiscriminate. Its growth enables every kind of skill, both mental and physical. Third and most important, it provides us with a vivid new model for understanding skill. Skill, seen through the eyes of myelin theory, is nothing but cellular insulation wrapping neural circuits and growing in response to certain signals.

The idea that all our dazzlingly different skills grow by the same cellular mechanism seems strange and surprising. But the author supports his argument by describing this universal and uniform mechanism as an essential part of the evolutionary process. Just as elephants differ from amoebas but both use the same cellular mechanisms to convert food into energy, so tennis players, singers and painters don’t seem to have much in common yet all get better by obeying the same rules of the talent code–in short, by growing more myelin.

Coyle looks at three basic elements of the development of talent: “ignition,” which basically means motivation, “deep practice” and “master coaching.” Each is valuable on its own, but their convergence is the key to developing skill. For each he offers practical real-life examples. For example, for deep practice, he writes about how Brazil emerged as a world hotbed for football even though until the 1950s it was nowhere on the world football map. He credits deep practice as developed by Brazilian youth when they indulged in a sport called “futsal”–football in a room, played with a ball half the size but twice the weight of an ordinary soccer ball. Futsal gave Brazilians deep practice and increased myelin effects to directly strengthen their skills on the football field.

Deep practice is a conscious activity, involving a cycle of distinct actions. Ignition is a hot, mysterious burst of passion, an awakening, and it is indispensible for firing up a person’s motivation. Master coaching means guidance and feedback from a disciplined, committed coach. The development of great skill relies on the help of teachers who have the ability to nurture talent.

All of the above is covered in the book’s first two sections. It has less to offer in its third part, where it gets to practical coaching advice. Still, it is a good read for anyone who wants to understand the science behind great talent and skill. More important, it shows exactly how you can be expert at something though you weren’t born with it at all.

Rating: 3.5 out of 5

Sangeeth Varghese is a leadership thinker and the founder of LeadCap Ventures, a global market research and consulting firm. E-mail him at sangeethv@leadcap.net. Follow him on Twitter at @leadCap. For more from Sangeeth Varghese, click here.

Source: Forbes.com

Resistance to Change

Posted by admin On May - 9 - 2010 ADD COMMENTS

By Dr. Karan Singh MBA, DBA

Now an old cliché, that the only con­stant, is change.

And in this hyper dynamic world it is so true that humans have a natural re­sistance to change and are com­fortable with the given and sta­tus quo.

As an experiment, clasp your hands in front of you in a locked position, with thumbs folded on one another. Now exchange the position of your thumbs. How does it feel? Odd?

The same with folding your arms. Now change the position of you arms. Feels strange, right?

It is well known that peo­ple have an inertia against or re­sistance towards change. In the field of psychology, many reasons have been put forward for this re­sistance to change. One of the more important considerations is when the risk of change is greater than the risk of status quo. This is because current practices are tried and tested while new prac­tices require one to venture into new territories that have no exist­ing models to follow. Even if one is not concerned about the prob­ability of success, criticisms of current practices are likely to be more muted than those for new practices, as the former have prec­edents to fall back on.

Emotionally, people also feel connected to old folk tales, tra­ditions and past practices. Our availability heuristics, or the rules of thumb that we use for every­day decisions, are formed by our individual experiences and in­fluences through social practice and culture. And all future deci­sions are determined by the tem­plates we have formed based on the past; and it is always difficult to change what we believe is al­ready good.

As much as people loathe to admit, their inertia to change is also subconsciously driven by their fear of lack of competence to change. Who would not want to be the pilot of a new and suc­cessful venture? But to go for a new venture and then expose one’s own incompetence is more embarrassing than remaining sta­tus quo. To follow someone who takes the lead to a change also means a down gradation to the status of follower, so would natu­rally want to stay as an opponent to the change rather than be a fol­lower of the change.

It is also emotionally unap­pealing to forsake something that has a higher chance of suc­cess for something that has a low­er chance of succeeding as it re­quires venturing into uncharted territory.

This resistance to change hap­pens both at the individual as well as the organization level.

Amarjit Chopra, author of ‘The Many facets of Leadership’ puts it very interestingly: “There are conscious and unconscious forces at work in all human sys­tems, from the individual to the largest corporation, which func­tion to maintain homeostasis – keeping things as they are. When we think and perceive the world within a closed system, we are doing ‘inside-the-box thinking.’ Standing inside the box, there is no real possibility for funda­mental change. There might be change, but inside-the-box change is really only more of the same.”

Of course there is more to re­sistance to change in addition to inside-the-box-thinking and in­deed many of the following could also be contributing to that state:

Belief that Change is unnec­essary. Especially if there are no visible problems and things have been successful. And more so if top management has been advertising that success.

Lack of Trust possibly emanat­ing from a feeling that there may be a hidden agenda, es­pecially if top leaders are not fully open about all aspects concerned with the Change program.

Belief that Change is not fea­sible. When making a Change that is radically different, or if any earlier program has not been fully successful.

Economic threats. In case peo­ple perceive that they would suffer a personal loss in terms of job security, or income loss – which has historically hap­pened when many a compa­ny have downsized in a change program – in fact in the last 2 decades or so, Change has come to be associated directly with downsizing.

Concern about high Costs.

 •Fear of Personal failure – in not being able to cope up with new systems or methods of opera­tion.

*Loss of Status and Power – in the case of organizational re-structuring.

*Threat to Values and Ideals –  in being able to make adjust­ments to a new culture.

*Resentment of Interference and loss of Control.

Henry and Canella, in ‘The Many facets of Leadership’, clas­sify Change Resistance into three broad forms:

Blind Resistance. Those who 1. simply and naturally resist Change.

Ideological Resistance. Dis­agreement through different Values & Beliefs.

Political Resistance. Those who believe that there will be a loss in terms of Position, Status, Power, Resources at hand.

Greenberg & Baron, authors of ‘Behaviour in Organizations’, classify resistance to Change in terms of:

Individual barriers – Eco­nomic Insecurity; Fear of The Unknown; Threats to Social Re­lationships; habit; Failure to rec­ognize the need for Change, and

Organizational Barriers – Structural Inertia; Work group Inertia; Threats to existing bal­ance of Power; Previously unsuc­cessful efforts; and offer an ex­ample of GE (General Electric) which has gone through a series of Changes. “Throughout this process, several of the barriers just identified have been encoun­tered. For example, managers had mastered a set of bureaucrat­ic traditions that kept their hab­its strong and their inertia mov­ing straight ahead. The prospect of doing things differently was scary for those who were strong­ly entrenched in doing things the “GE Way.” In particular, the company’s interest in globaliza­tion triggered many fears of the unknown.

Resistance to Change also was strong because it threatened to strip power from those units that traditionally had possessed most of it (e.g., the Power Systems and Lighting Division). In addition, changes were highly disruptive to GE’s “social architecture”; friend­ship groups were broken up and scattered throughout the com­pany. In all, GE has been a liv­ing example of the many differ­ent barriers to Change – all rolled up into a single company.”

Greenberg and Baron go on to add that fortunately such re­sistance to Change can be over­come through Organizational Developmental Techniques that implement Change in a man­ner that is acceptable to employ­ees and which enhances the effec­tiveness of the organization.

 

Dr. Karan Singh MBA, DBA, Organization Development Consultant, is presently Management Development Director at President University, and Managing Consultant of PT King & Singh Consulting. In his seventeenth year in Indonesia, Dr. Singh has wide experience, across a range of multinational companies, in areas like corporate training, market entry strategy, integrated marketing (external and internal marketing), communications, and human performance improvement.

How to Crack the Self-Awareness Paradigm

Posted by admin On December - 29 - 2009 ADD COMMENTS
GEHarvardBusiness.Org
How to Crack the Self-Awareness Paradigm
04:22 PM Wednesday December 23, 2009

By John Baldoni

To bring people together around a common cause, it is critical that a leader be self aware. Jeff Immelt’s recent comments to the cadets at West Point reminded me of this fact.

Immelt, CEO of General Electric, said he he’s learned lessons from the Great Recession that have made him “humbler and hungrier… I needed to be a better listener coming out of the crisis… I should have done more to anticipate the radical changes that occurred,” he added. Such an admission reveals an executive who is comfortable in his own skin, even as he is making hard decisions about the future of his company.

Coming to terms with yourself is a private matter. But if you fail to come to terms with your own limitations and it affects your ability to lead then it could be worthy of public scrutiny. Toward that end, here are three questions leaders can ask themselves, or a trusted associate or two, about their own managerial performance.

1. What more do I need? This question might seem easy because a leader will always say she needs more time. True enough, but lack of time is often an excuse for failing to address simmering issues or to carry projects through to fruition. Ask yourself and others what you need to do more of; one answer might be “doing less.” That is, learn to delegate more and devote your time to thinking.

2. What else should I be doing? By focusing on less, you may learn to delegate not simply tasks, but also responsibilities. Too often executives feel they need to be engaged in the work when their job is really to engage other people. Let your people do their jobs. If they can’t, find out why. You may need to find employees with different skills sets or you may need to provide your people with additional training, resources, and manpower.

3. How do I accept feedback? “The day soldiers stop bringing you their problems is the day you have stopped leading them,” says Colin Powell. “They have either lost confidence that you can help them or concluded that you do not care.” None of us welcome bad news about ourselves and our work, but self-aware leaders are those that not only accept it, but invite it, and even seek it out. They do so because they are continually learning. Without learning there is no personal growth.

The answers to these questions should challenge your perception of yourself. Yet, your own questions can only go so far — you cannot be aware of things you don’t know. Comparing one’s own perceptions to what others observe can provide striking bits of insight. For example, you may think you communicate, delegate, supervise, and recognize others well, but until you receive others’ opinions on these things, you cannot truly know. Personality and leadership assessments, along with 360-degree evaluations are useful in this situation.

Once you’ve gathered the answers, you must integrate the feedback into your behavior and approach as a means of becoming more capable, knowledgeable, and self aware. Questions and assessments only go so far. Accepting feedback can be a spine-stiffening experience, especially when we hear things about ourselves that are not favorable. Yet, strong leaders acknowledge their shortcomings and resolve to make improvements. Easy to say, but very hard to do, unless you act on your ability to know yourself.

[Read transcript of Jeff Immelt's remarks at West Point.]

(Bloomberg.com)

Think Looks Don’t Matter? Think Again

Posted by admin On December - 25 - 2009 ADD COMMENTS

Laura
Laura Sinberg, 12.05.09, 10:00 AM ET

If you want to get a raise or a promotion, you might want to throw on a pair of heels and suck in that belly. Your looks can help–or hinder–your chances of getting a well-deserved promotion, regardless of qualifications, especially in a sour economy when advancements are few and hard to come by.

Women who advance most at work, studies agree, are more attractive, thinner, taller and have a more youthful appearance than their female colleagues who are promoted less often.

In Pictures: Seven Easy Ways To Look Your Best At Work

landmark study from Cornell University found that when white females put on an additional 64 pounds, her wages drop 9%. And according to a 2007 paper from the U.S. Bureau of Labor Statistics, there is a statistically significant “wage penalty” for overweight and obese white women. (“Previous studies have shown that white women are the only race-gender group for which weight has a statistically significant effect on wages,” according to the paper.) The obese take a bigger hit, with a wage loss of 12%.

Being large leads to negative stereotypes–thinking that person is sloppy, lazy or slow, for example–for women that just aren’t true, says Bill Fabrey, a director of the Council on Size and Weight Discrimination.

Fabrey recounts incidences of several plus-size female colleagues who have gotten interviews with prospective employers only to be told the job had been filled once they showed up for an in-person interview.

“There are interviewers who don’t care [about weight], but those are not as plentiful as the other kind,” he says.

Being average looking comes with a hefty price, too. The best-looking echelon of attractive females–the top one-third–make about 10% more annually than those in the bottom sixth of the genetic pool, according to research by Daniel Hamermesh, Ph.D., a professor of economics at the University of Texas at Austin.

Just what makes for attractive? According to Hamermesh in a interview with CNN, “It’s symmetry of features. … But not too [attractive]. It’s not perfect. If it’s perfect, it’s bland. There’s got to be a little off, otherwise you lose interest.” Apart from a balanced face–and good physical health–a woman’s appeal is also reportedly in having a low waist-to-hip ratio.

And youth. A study done this year by the American Society of Plastic Surgeons found that some 73% of women felt a youthful appearance played a role in getting a job, getting promoted or keeping clients. Many cited difficult economic times as part of the reason–with fewer raises and promotions to be given, the better-looking are the ones advancing.

“In this bad economy, as people age, employers and colleagues perceive them as having less energy and being less effective” notes Gordon Patzer, Ph.D., a psychologist from Chicago who has studied looks for 30 years. “Being older in the workplace is looked at negatively,” he adds.

Patzer says bleaching your teeth, wearing appropriate makeup or updating your hairstyle or wardrobe can take years off a person’s look.

What’s Behind Our Thinking?
Various psychological reasons can answer why we choose to promote better-looking people and keep the rest behind. For ancestral humans, better-looking people were thought to be more productive and fecund, according to Patzer.

And, interestingly, able to bring home more food. From a psychological standpoint, Patzer says, “people of higher physical attractiveness are more persuasive, which is critical in the workplace.”

That may be the reason women of short stature get the short end of the stick. Although there is no correlation between height and effectiveness or intelligence, a woman who is 5 feet 7 inches tall–well above the national female average of 5 feet, 3.5 inches–will make $5,250 more over the course of a year than a female co-worker standing 5 feet 2 inches.

“We like to look up to our leaders,” says Patzer, noting that a subordinate is more likely to respond positively to a taller manager.

Malcolm Gladwell calls the behavior an unconscious prejudice, a prejudice you reach without even thinking. In his best-selling book Blink, he polled about half the country’s top 500 CEOs and found that 58% were nearly 6 feet tall; in contrast, the average American male is 5 foot 9 inches tall.

Also, because most states don’t have laws against weight or height discrimination–currently Michigan is the only state that includes either group as a protected category under anti-discrimination law–women stand underprotected.

“Either the judicial and legislative arm of the market have decided that’s OK [to favor certain groups], or they’ve decided that trying to do something about it would be way too difficult,” says Bill O’Brien, founding partner at Miller O’Brien Cummins, a Minneapolis firm that specializes in labor and employment law.

“On the subject of physical appearance, there is not much protection under employment statutes,” he adds.

What Can You Do?
In a competitive work environment, it is only natural to want to do everything possible to get an extra edge, but if you’re thinking pricey cosmetic surgeries are the answer, you’re mistaken. Women who go under the knife make an extra five cents per dollar they spend on the dangerous procedures, according to Hamermesh’s research. “It’s a terrible investment,” he says.

Instead, Judy Jernudd, a leadership coach in Los Angeles, recommends honing certain psychological behaviors, like walking upright and with confidence, which will make you seem taller than someone who is slouched over or walking with her head down. It will also trick others into perceiving you as more physically attractive. Heels will also help, but not over an inch and a half, say most podiatrists.

Although there isn’t a lot you can do to make yourself look thinner–wearing dark colors and streamlined clothes help–Jernudd does note that women with confidence always come across as thinner and better-looking. “A lot of it has to do with personality,” she says.

So what about women who say looks shouldn’t matter in the workplace?

“It shouldn’t matter, but it does,” says Jernudd. “It is competitive enough today. Why sabotage yourself by not giving it the best you can?”

Source: Forbes.com


Robby Djohan: SBY Should Focus on Building Prosperity

Posted by admin On December - 7 - 2009 1 COMMENT

Robby Djohan is a former career banker (Citibank, Bank Niaga and Bank Mandiri) and at one time managed the country’s flag carrier, Garuda Indonesia.

In the past few years he has released three books, namely Lead to Togetherness, The Art of Turnaround and Leading in Crisis, all of which have enjoyed moderate suceess.

Nowadays Robby divides his time between Jakarta and Bali (he is the co-owner of The Legian and the BIFA flight school in Buleleng). He also chairs the Board of Trustees of Jakarta-based Al Azhar University.

He also devotes much of his time speaking in seminars and in limited discussions on social capital, which he articulates at length inhis books.

The President Post recently caught up with him in Jakarta and discussed several pertinent issues.

Excerpts:

Can you articulate your notion of social capital?

I like to refer to my book “Lead To Togetherness, which basically explains the importance of social capital. Social Capital is basical ly people participation, the feel ing of togetherness and the feel ing of happiness. You will only obtain those feelings if you live in prosperity, improved knowl edge and live healthy, physically and mentally.

In the book you also dis cussed leadership.

Social Capital can only be built if initiated by leaders. We have in our nation’s history of leadership what is known as feudalism, hi erarchies and bureaucracy. We need leaders with integrity and capacity to reform Indonesia.

What do you think President Susilo Bambang Yudhoyono (SBY) should pay close atten tion to in the context of the global economy?

Global economy means that in terms of trade, relationships, there are no borders.

Now who will benefit from the absence of borders? The stronger economies, of course, and they will benefit at the expense of de veloping countries. In the case of the US, they will benefit from services, banking, investments in natural resources etc. In terms of productions and products, Chi na and India are in very good po sition to become leaders in those areas.

If that should be the case, how then can Indonesia benefit from the global economy? By mak ing priorities on how to bring in investments in areas where we can be competitive against oth er countries. For example infra structure projects, give them the means for them to invest in cost and easier operations.

What other aspects are worthy of the President’s attention?

Another aspect in global economy is how we can benefit from exports, as in some areas it is still profitable. We have to remember that the global economy will always benefit the more advanced nations and as such we have to be careful.

As such, I believe that it is more important that we build local economy, which is basically making sure that the economy is stable and that we maintain high discipline in managing monetary and fiscal policies. Stability is very important even for multinationals, joint ventures, big and small industries.

We have to have stable inflation, sound balance of payments and state budgets. Key is how to manage economic growth. Capitalize from investments that are already in place, but I believe that economic growth can also come from the development of social capital, prosperity, knowledge and health.

So why is social capital very important?

We very much rely on the productivity of the small and medium income group. We have many of them but not all can rely on labor. The bulk of the people that are down below are in the agriculture, fishery and SME sectors.

So what do you do to make them potential, to empower them so that they can also be part of the economy? By improving their potential to spend; if they have income and have the money to spend, then they are potential to build markets.

What are your other major interests in the context of so cial capital?

We have to develop free educa tion at least from primary school up to senior high school because the students are the future of our country.

We have to build a generation through education. Believe me, it is much easier to manage a soci ety that is well educated than that which is not because uneducated people always feel that they have their backs against the wall.

Educated people often have al ternative ways of thinking. It is very important that people find alternatives in life. A new genera tion is a generation that is educat ed and understands how to live in the right kind of democracy.

What is your general impression of President SBY?

He is man of vision and has integrity. It is important that he builds up capacity based on the integrity he believes in. Most books written about that capacity says that it can only be obtained if you work with the right kind of people.

What do you think should be President SBY’s priorities?

I believe SBY should focus on prosperity, education and health. It should become a reality. It is not merely the integrity of the vi sion but also the capacity to make this vision work.

How should he go about im plementing them?

He has to have the best people as ministers of trade, agriculture, fishery and labor. He also has to have an able person managing our tourism. All those depart ments have much to do with the development of social capital.

How do you think President SBY should build prosperity?

If the President wants to build prosperity he should spend a great part of the state budget in agriculture by increasing produc tivity, new areas in agriculture through water systems, technol ogy and others.

Currently, many farmers work from hand to mouth. This is not fair because they work very hard. It is the government’s role to help in the area of developing prosper ity.

In building the economy, the market can take care of that and we don’t have to be involved. But in building prosperity in agri culture, fishery, SMEs and oth ers, this is where the government should come in. The govern ment should get involved by pro viding sufficient capital through the state budget to help the peo ple and make sure that the funds from the state budget are well dis tributed.

Can you further elaborate on this?

When we talk about develop ing an economy, we talk about developing regions and crerat ing a good relationship between the central and regional govern ments.

So, we have to come up with very strong programs and that everybody should be committed to these programs. It is also im portant that the banking system, through the state budget, sup portts microbusinesses.

How do you see the role of banks?

The banking system is fully responsible for what they’re do ing, but the government should help. Officials shouldn’t just rely on banks and say they want them to spend 20-30% of their portfo lio to develop small-holders. The government should also help in funding. The government should channel funds through the bank ing system. It is more efficient and you have a grip on the banks. This has been my experience as a banker.

If people don’t spend, there is no market because a market is about buying and selling. Not only foreigners but also locals will invest if they know that whatever they invest they can sell. That is why social capital is very impor tant.

You are well-known as a professional who has turned around major companies such as Bank Mandiri and Garuda. How would you turn around the nation?

Turning around of the country can be done by taking advantage of the global economy and mak ing yourself competitive among nations. But you can also do it by developing its social economy, and this is where the government plays an important role.

Past presidents have focused on getting out of the crisis that was caused by the Old Order. What I expect SBY to do is to build a new generation with new para digms where people’s participation is very important. But if you want people to participate, they must have the capacity, which is basically education, health and prosperity.

It is important that SBY prioritizes on building prosperity and education so that the function of social capital works.

Indonesia is basically an agriculture-based country. How can we improve the lot of our farmers?

To improve farmers is very simple: through irrigation, fertil izers and pricing of products. You also have to increase yield, market that are useful to the farmers and the small holders .

Do you think Indonesia is still attractive to foreign investors?

People will always come to Indonesia to invest because we are a potential market. Investors will not come to Indonesia because of tax policy, infrastructure; they’ll come here because they know that whatever they produce here can be sold. So, we have two things: a developing market and a society that is prosperous.

We don’t have to worry, because a prosperous society has very strong social capital capabilities.

We were successful during Soeharto’s time, and we should improve this by being more independent, having less conflicts and focus more on social capital.

What would you do if you were the president of Indonesia?

I am too old to be president, but I believe that 50% of the state budget should be allocated to build the people’s economy, and that we must work with the best people committed to make Indonesia a country we can be proud of.