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Architecture, equipment and design features
The museum entrance and a grid-like façade present the Museum Tower Kyobashi's new identity. The museum occupies the 1st to 7th floors, with viewing galleries on the 4th to 6th floors and the museum offices on the 7th. The gallery space is approximately 2,100 ㎡ , roughly twice the total area of the old museum. A vertical layout of galleries, museum shop, café and museum offices signifies a museum in a new urban style.
Measures to ensure business continuity
To minimize damage in the event of a disaster and ensure business continuity, a seismic isolation structure was adopted for Museum Tower Kyobashi. Emergency generators that can supply power for 72 hours have been provided for use in the event of a power outage. The substation equipment, emergency generators, heat source equipment have been placed on the 8th and 9th floors of the building so building functions can be maintained even in the event of flooding, tsunami or other water damage. Moreover, the art galleries have been placed on the 4th through 6th floors to ensure the safety of the artworks. In this way, the infrastructure itself is designed to enable the art museum to continue to function.
Museum Tower Kyobashi
Seismic isolation rubber placed underground
The creation of open spaces
Relocation of art museum front entrance
The front entrance of the former art museum which faced Yaesu-dori has been moved to the Chuo-dori side which is the main street. In addition, an open plaza has been placed at the entrance to give the museum an intuitive and welcoming design.
1st and 2nd floors integrated through enclosure with large glass windows
The 1st and 2nd floor area that constitutes the museum entrance has been enclosed with highly transparent eight-meter-high glass windows, forming an integrated open ceiling design and creating an atrium whose interior is visible from outside. Among these windows, the nine large glass doors in the cafe area on the 1st floor are motor-operated and can be rotated to connect the interior and exterior and create an open cafe with an even greater feeling of spaciousness.
5F gallery open ceiling (looking down on 4F gallery)
State-of-the-art displacement air conditioning system for galleries
The galleries have a new displacement air conditioning system that uses the flooring joints (5 mm) as vents. Fresh air that is temperature- and humidity-controlled is emitted gently from the entire floor, pushing up the upper air so it can be ventilated from the ceiling. The system is highly energy-efficient and that is both people- and artwork-friendly, achieving an interior environment that has no noticeable air currents or temperature and humidity unevenness.
Specially designed LED spotlights
The Artizon Museum worked with the Yamagiwa Corporation to develop high-quality LED spotlights that provide flexibility to gallery lighting and present the artworks in optimal lighting. The spotlights use ultra-high color rendering VIOLEDs (purple LEDs) that can be dimmed and color-adjusted (2,700K – 4,500K). Wireless system control makes it possible to control the spotlights individually using a tablet, making adjustment easy in galleries with high ceilings. These next-generation spotlights strike a balance between design elegance and meticulous control that is user-friendly.
Advanced display cases
In addition to expanding the genres for artwork exhibition, the Artizon Museum also has an area on the 4th floor to house display cases for exhibiting antiquities and the like. The integrated display case of highly transparent laminated glass have a heretofore unprecedented length of 15 meters, making this space an ideal and seamless environment for appreciating Japanese screens and other works in the collection. The display case also have built-in organic electroluminescent (EL) and other cutting-edge lighting systems to enable artworks to be exhibited in an ideal lighting environment.
15-meter-long integrated glass exhibition case
An open museum with advanced design features
The Ishibashi Foundation has been working to digitalize both the collection and related information. In 2016, an IT Project was initiated to ensure that information is managed safely and improve operational efficiency, and to study mechanisms and infrastructure that would make it possible to provide data in an open manner to stimulate the intellectual creativity of visitors. As a result, a data archive was created for the artworks in the museum's collection and museum exhibitions, etc., and a system (cloud environment) was established to link this information and make it available.
Free WiFi available throughout the museum
Visitors can view a wide variety of high-definition images and data about the museum's collection and exhibitions using the terminals in the Info Room on the 4th floor, as well as by viewing the Digital Collection Walls on the 4th and 5th floors. WiFi is also available throughout the museum, and visitors can download the Artizon Museum app and use their smartphones to access an audio guide and explanations of the artworks.
Digital Collection Wall
Ensuring that the Artizon Museum remains on the cutting edge
Recently there has been a trend toward "Open Data Innovation" in which organizations make their data publicly available to encourage widespread access. The Artizon Museum is working to compile databases with this goal in mind. Moreover, based on its concept of "Experiencing Creativity", the Artizon Museum will also combine the data with state-of-the-art technology to create a cloud computing environment that will enable various exhibitions and special projects.
Crystal LED Display
Use of digital signage
Digital Collection Walls created by teamLab Inc. that enable visitors to intuitively experience the Ishibashi Foundation collection have been set up in the exhibition lobbies on the 4th and 5th floors. There is also a Crystal LED Display (made by Sony Corporation) in the 1st floor entrance lobby that allows visitors to view ultra-high-definition images of artworks and other information on a large screen.
Carefully selected materials and attention to detail
The exterior design has been given a universal design with a particular emphasis on striking a balance between modernity and harmony with the buildings on Chuo-dori. Latticework befitting the face of an art museum and walls of steel panels that have been treated with phosphoric acid have been used to depict a feeling of authenticity using colors and textures reminiscent of materials such as roof tiles and inkstone.
Stone wall pattern and cylindrical columns
Cylindrical columns measuring 1.8m in diameter and 8m in height, with the same square pattern of granite stones as the wall of the 1st floor entrance, were placed outside. These continue into the interior as stone column artworks that appear in the 16.5-meter-high atrium open ceiling that spans the 3rd to 5th floors. Each column resembling a single large enormous trees that seems to pass straight through the building, making the columns function as a symbol of the Artizon Museum.
The interior materials have been carefully selected to express modernity and human warmth, in order to give the museum an atmosphere of friendliness and openness.
Large terrazzo tiles (1F)
Large terrazzo tiles (1,200 mm square) were used for the flooring material on the 1st floor to create the impression of lines running across the floor. Black granite and Indian sandstone and other natural materials were used for the 1F walls. The subtle changes in the finish of the stone surface give the walls an overall softness.
Brass cut panel walls
Wall panels (3F – 6F)
Vibration-polished brass panels were used for the wall panels on the 3rd through 6th floors to give the interior a soft warmth and a golden brilliance. These panels were used on all floors as a distinctive design element. For the lights, a decisive factor for the interior design, wall indirect lighting was adopted, so the wall surface would be illuminated by gradations of soft light. This provides an added three-dimensional resonance and depth and emphasizes the continuity with the entire space.
Original furniture design
As with all other design elements in the building environment, the furniture is based on original design. From the wooden armchairs that are used primarily in the cafe, to the sofas in the galleries that allow visitors to sit on all four sides, to the built-in furniture, all of the furniture has been carefully designed for use in an art museum.
The Design Collection
The Artizon Museum has a design collection that can be seen nowhere else. One of its highlights is the display of furniture by Kuramata Shirō (1934-1991), a leading figure in interior design in Japan. Those works are placed in the lobby at the entrance to the 6F Gallery, where anyone can sit on them. His single-seater sofas (armchairs) made of expanded metal and "How High the Moon," his famous two-seater copper sofa, await you. They are joined by a semicircular glass bench that has almost never been on display.
Kuramata sofas installed in the Ishibashi Foundation Art Research Center (Machida)
On first floor, the decorative shelves in the Museum Café display work by Kuramata's friend Ettore Sottsass (1917-2007), an Italian design world maestro. The core of this group of rare works from his Memphis Group period is his Venetian glass.
Ettore Sottsass glass displayed in the Museum Café
Sign planning
An original sign system that includes pictograms was developed for the art museum, both to guide visitors and to serve as an important architectural accent. Innovative ultra-thin slit lights that employ LEDs ensure that text and pictograms stand out, making them easier to see and lending a gentle touch to the interior.
Creating a safe and comfortable viewing environment
IPM cleaning and environmental study
Beginning July 9, a special cleaning process that took approximately one month was conducted to remove the accumulated dirt and dust generated by the construction from the galleries on the 4th through 6th floors and the temporary artwork storerooms and so on. The cleaning was based on the Integrated Pest Management (IPM) approach, which is designed to minimize the impact on human beings and the environment. The process minimized the emission of chemical substances that might affect the artworks and prevented the propagation of insects that might harm cultural artifacts.
The cleaning process resulted in a clean environment for the exhibition of artworks. The National Center for the Promotion of Cultural Properties has been contracted to conduct environmental studies of the galleries and temporary artwork storage and so on. The results of air quality studies and temperature and humidity studies are reported on an ongoing basis, and advice and recommendations are solicited. In addition, in preparation for the museum's opening, the Center conducted a site survey on August 29 to ensure that the environment is optimal for storing and exhibiting cultural artifacts.
Reservation system introduced
To reduce visitor wait times and create a more pleasant viewing environment, it adopted the museum's online reservation system to reserve a time for viewing the exhibitions.
Introduction of hazardous substance detection gate system
To safeguard the artworks and ensure visitor peace of mind during viewing, a body scanner for detecting hazardous substances (manufactured by Evolv Technology Inc.) has been placed in front of the elevator on the 3rd floor. This scanner detects metallic hazardous substances and also includes the world's first system for the detection of nonmetals and liquid explosives using millimeter waves.
Development of general use crates
The Art Research Center (ARC) established by the Ishibashi Foundation in May 2015 stores artworks and materials, conducts research into works of art, performs restoration of artwork and so on.
Recently, working in cooperation with Yamato Global Logistics Japan Co., Ltd., the Center developed an environmentally friendly zero emissions reusable general use crate for transporting artworks. Following a trial-and-error process to determine specifications and material safety performance, a metal (aluminum) "F-20" size crate was completed. The crate was used to transport artworks in preparation for the opening exhibition.
Ishibashi Foundation Art research Center
Awards and Prizes (As of December 2021)
CTBUH AWARDS 2021 (USA)
MEP Engineering Award Winner
Project: Museum Tower Kyobashi, Artizon Museum
Organizer: Council on Tall Buildings and Urban Habitat
The project was highly evaluated for the comprehensive sustainability efforts throughout the building, including a large-scale natural ventilation system that allows the entire skyscraper to utilize natural wind and energy.
Best Tall Building 100–199 meters, Award of Excellence Winner
The project was highly evaluated as a skyscraper with innovative exterior louvers that integrate with the context and history of the city, while providing openness to the city and environment.
ABB LEAF AWARDS 2 020/21(UK)
Mixed Use Building Award
Project: Museum Tower Kyobashi
Organizer: Leading European Architecture Forum (in associati on with ABB)
The project was highly evaluated as an architecture that sets a standard for the next generation in terms of its sophisticated integration of office and museum by innovative technology and design.
MIPIM Asia Awards 2020 (France)
BEST INFRASTRUCTURE, COMMUNITY & CIVIC BUILDING, Silver
Organizer: Reed MIDEM
The project was highly evaluated as a mixed-use building of high-end offices and a museum with various innovative technology initiatives and high-level design.
2021 Sky Design Awards (Canada)
Interior Design, Gold Prize
Project: Artizon Museum
Organizer: Merci Media Corporation
This award is presented to a wide range of design areas, mainly from Japan, Asia, and Canada. In the interior division, the Artizon Museum was highly evaluated for its simple and contemporary design.
DFA Design for Asia Awards 2020 (Hong Kong)
Organizer: Hong Kong Design Centre
The DFA Design for Asia Awards is an international design award that recognizes outstanding designs from an Asian perspective. The project was highly evaluated on four axes: excellent design, technological application, influence on Asia, and social success.
API DA – Asia Pacific Interior Design Awards 2020 (Hong Kong )
Honourab le Mention
Organizer: Hong Kong Interior Design Association
The APIDA – Asia Pacific Interior Design Awards is the most prominent award for interior design in Asia. The Artizon Museum was highly evaluated in a balanced manner in terms of innovation, functionality, and space planning.
IFLA ASIA-PAC L A Awa r ds ( Singapore )
Skyrise Greenery, Award o f Excellence
Project : Museum Towe r Kyobashi
Organizer: International Federation of Landscape Architects
The skip-floor rooftop garden was highly evaluated for its excellent design of a three-dimensional green space continuous both indoors and outdoors and for the effectiveness of its biophilic effect confirmed by the demonstration experiment.
JIA Architects of the Year 2020
Organizer: The Japan Institute of Architects
In the overall architecture division for office and commercial facilities, the project was highly evaluated as a complex architecture of offices and an art museum that incorporates a high level of design and environmentally friendly technology.
KUKAN DESIGN AWARD 2020
Museum/Cultural space, Gold Prize
Organizer: Japan Commercial Environmental Design Association /
Japan Design Space Association
KUKAN DESIGN AWARD is the most prestigious award for space design in Japan. The design was highly evaluated for creating a comfortable connection between the indoor and outdoor spaces, as well as for the large interior space and comfort of the galleries.
The 62nd BCS Prize
Organizer: Japan Federation of Construction Contractors
The project was highly evaluated for its outstanding overall quality as a building jointly created by the client, designer, and contractor in terms of project planning, design, construction, environment, and operation/maintenance management.
Japan Sign Design Award 2020
Bronze Prize
Organizer: Japan Sign Design Association
The project was highly evaluated for its design of a precise and intelligent signage system based on the motif of vertical louvers covering a skyscraper.
Gold Prize
Project: Artizon Museum sign planning
The simple glowing graphics with built-in LEDs were especially evaluated for their novelty and improved functionality for visibility.
Environmental and Equipment Design Award
Integrated M&E Design, Best Design Award
Organizer: Association of Building Engineering and Equipment
The project was highly evaluated as an environmental architecture for the next generation that integrates architecture and facilities with a high level of design from concept to detail.
GOOD DESIGN AWARD 2021
GOOD DESIGN BEST 100
Organizer: Japan Institute of Design Promotion
The project was highly evaluated in the construction/space design for public facility category for embodying an urban art museum and providing a space for rich experiences. It was chosen as one of the GOOD DESIGN BEST 100 out of 1,608 winners of the G Mark Award from 5,835 total entries.
2019 Good Lighting Award
Organizer: The Illuminating Engineering Institute of Japan
The project was highly evaluated as outstanding overall lighting facilities in both the offices and the museum, in terms of the visual environment, lighting techniques, and lighting effects.
Rooftop and Wall Greening Technology Competition
Rooftop Greening, The Nikkei Prize
Organizer: Organization for Landscape and Urban Green Infrastructure
The design of the greenery, which is based on improving the health and comfort of workers, was highly evaluated as an effective example of a biophilic design that realizes a new form of an office environment in urban high-rise buildings.
Artizon Museum Building profile
Ishibashi Foundation Artizon Museum
1-7-2 Kyobashi, Chuo-ku, Tokyo Museum Tower Kyobashi
Area / District
Commercial area, fire prevention area
Special urban regeneration area, district planning, etc.
Main application
6,715㎡(museum area)
2,052㎡(4th floor 702㎡, 5th floor 612㎡, 6th floor 738㎡)
Base seismic isolation, S structure, some RC / SRC structures
B1-7th floor
Museum Tower Kyobashi 23 floors above ground, 2 floors below ground, 2nd floor towers
Design / Supervision
Nikken Sekkei Co., Ltd.
Museum design
TONERICO: INC.
Toda Corporation

redpajama_set_name: RedPajamaCommonCrawl


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Corker, Coons Introduce Bill to Modernize U.S. Approach to Development Finance
Legislation to Establish Single, Self-Sustaining U.S. International Development Finance Corporation
WASHINGTON – U.S. Senators Bob Corker (R-Tenn.) and Chris Coons (D-Del.), both members of the Senate Foreign Relations Committee, today introduced bipartisan legislation to promote sustainable growth in developing economies through U.S. business investment and provide more accountability for taxpayers at no expected cost. The Better Utilization of Investments Leading to Development Act of 2018 (S.2463, the BUILD Act) will establish a single, full-service, self-sustaining international development finance entity to reform and streamline the tools of multiple agencies with an emphasis on free-market principles. The concept was outlined in the president's FY 2019 budget request (Pg.81). The development finance corporation will leverage the U.S. private sector's expertise and investment capital to generate economic growth in the developing world that will support American interests. Cosponsors are Senators Johnny Isakson (R-Ga.), Chris Murphy (D-Conn.), Todd Young (R-Ind.), Jeanne Shaheen (D-N.H.), Rob Portman (R-Ohio), and Tim Kaine (D-Va.).
"Taking a free-market approach to development finance will provide more accountability for taxpayers at no expected cost, create new opportunities for U.S. businesses to invest overseas, and expand American influence around the world," said Corker. "The president embraced this concept in his budget because sustainable growth in the developing world promotes U.S. interests in security and stability while expanding markets for American companies. I am proud to join Senator Coons in this effort and look forward to working with my colleagues to make it a reality."
"The bipartisan BUILD Act will create a 21st century development finance institution with the full suite of tools to attract private sector investment to low income countries," said Coons. "This new institution will make targeted investments to reduce poverty in countries that are critical to our national security. I look forward to working with my cosponsors to pass a strong bill that helps make markets work throughout the developing world."
The BUILD Act will establish the U.S. International Development Finance Corporation (IDFC), assuming the activities of the Overseas Private Investment Corporation (OPIC), USAID's Development Credit Authority, USAID's Enterprise Funds, and USAID's Office of Private Capital and Microenterprise.
The IDFC will operate in low and lower middle-income countries where it furthers the U.S. national security and economic interests and where the project can be shown to have a demonstrable development outcome. Congress will maintain oversight of the IDFC by reviewing the agency's public reports on its development impact and through independent audits and the establishment of an inspector general in the corporation.
The IDFC will have the authority to: issue direct loans, including local currency loans; issue guaranties, including local currency guaranties; provide political risk insurance; fund first losses; participate in equity investments; provide technical assistance; make limited grants to unlock larger investments; and attract private sector talent.
BUILD Act of 2018 Text.pdf


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Mansfield Town vs. Charlton Athletic 'CJ Hamilton in first half action.
Lee Bowyer was unhappy that his injury-hit Charlton Athletic squad face yet another game with today's 1-1 FA Cup draw at Mansfield forcing a replay.
Charlton made nine changes and only had five subs on the bench and had to come from behind to square the game after the break.
"Yes we stay in the cup, but it was the worst outcome possible for us – and now we have got to play Tuesday and a lot of them that played today will have to play 48 hours later which is ridiculous," he said.
"It is what it is. We can't change it and we should have won the game anyway. We've missed three clear cut chances first half and Nicky (Ajose) was one v one second half. But we weren't ruthless enough.
"We didn't play well first half. I thought we were poor. We didn't pass the ball.
"We were a little bit better second half but overall I was disappointed.
On the nine changes, he added: "Apart from Toby no one really stood out for me.
"We have a lot of games coming up Saturday/Tuesday and I wanted them to tell me they are ready when I need them.


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Meet Danielle Fitzko, Vermont's new Director of Forests. Story by Christine McGowan, Forest Program Director.
VWA has been participating in a project with the Central Vermont Regional Planning Commission and the Friends of the Winooski known as Water Wise Woodlands.
Woods, Wildlife, & Warblers, a 4-county initiative, offers technical assistance to woodland owners in the counties of Rutland, Bennington, Windsor, and Windham. Our recent webinar series videos are available for download and viewing.
Managing Wildlife Habitat and Resources for Landowners: Andrea Shortsleeve, VT Fish & Wildlife Dept.
The two dry summers of 2016 and 2017 marked a challenging time for trees. Lack of water, high temperatures, and dry soils added to the growing list of environmental stressors that often tax Vermont's forests. Sometimes, stress can trigger development of larger-than-average seed crops, and by most reports, the maple seed crop of 2017 was massive. All over Vermont, maple seedlings sprung from the moist soils that followed snow melt this past spring.... Read full article on Adapting Forests to Climate Change.
A letter from FPR Commissioner Michael Snyder on ACT 47, passed to address potential changes to ACT 250 Review: the next 50 years.
Heavy Cut Law: An Intent-to-Cut Notification must be submitted to the Vermont Department of Forests, Parks and Recreation ONLY IF a landowner plans to conduct a HEAVY CUT of FORTY ACRES or more.
Beginning July 1, 2017, specific types of equipment and repair parts are exempt from the Vermont Sales and Use Tax.
Attachments: Summary and Timeline for ACT 171 an act relating to timber harvesting.
Proposed State Rule Amendment to the Acceptable Management Practices (AMPs) for Maintaining Water Quality on Logging Jobs in Vermont. The Department of Forests, Parks and Recreation is now accepting public comments on the proposed state rule amendment to the Acceptable Management Practices (AMPs) for Maintaining Water Quality on Logging Jobs in Vermont. Public Comments Are Due By February 16, 2016.
The 2015 legislative session brought several changes regarding Vermont's Use Value Appraisal (UVA aka "Current Use") program. A summary of these changes is in the link above, but perhaps the biggest change relates to how the Land Use Change Tax (LUCT) is to be calculated and a temporary "Easy Out" period in which landowners can remove an entire parcel, or portion of a parcel, without paying the full LUCT liability.
2015 Vermont Forest Fragmentation Report to the Vermont Legislature. This report was prepared by the Vermont Department of Forests, Parks and Recreation pursuant to Section 2 of Act 118 of 2014 with assistance from the Vermont Fish and Wildlife Department and the Office of Planning and Legal Affairs in the Vermont Agency of Natural Resources.
About My Woods, a free smartphone app, is now available for download. Woodland owners in Maine, New Hampshire, Vermont and New York now have a new tool to help learn about their woods.
Available for both Android and iPhones (and tablets), you can access the app by going to the App Store (Apple) or Play Store (Android) and simply typing "About My Woods" in the search bar.
Vermont Voluntary Harvesting Guidelines: In 2013, the Vermont Legislature passed Act 24 that directed the Commissioner of the Department Forests, Parks and Recreation to develop voluntary harvesting guidelines in support of forest health and sustainability by January 15, 2015.
Current Use Fee Change: The application fee for the Current Use Program, also known as the Use Value Appraisal Program, has changed. The Use Value Appraisal Application (CU-301) fee rises to $90.00 for any application received on or after July 1, 2014.
Working Lands Enterprise Board (WLEB) announced the release of available grant funds to invest into agricultural, forestry and forest product enterprises and organizations. Applications are available at www.vermontworkinglands.com along with tools and resources to assist applicants.
The Women Owning Woodlands web project strives to bring topical, accessible, and current forestry information to female woodland owners and forest practitioners.
This PSA campaign aims to inspire tweens (aged 8-12) and their parents to re-connect with nature, experiencing it first-hand.
A resource for woodland owners, by woodland owners to help you protect and enjoy your woods.
ImapInvasives website for tracking invasive plants and insects in Vermont.
UMass Extension has a new publication aimed at landowners who have concerns about harvesting biomass from their woodlands. "Harvesting Biomass from Your Woods: Make an Informed Decision" explains, in eight pages, what biomass is generally used for, what a biomass harvest entails, and its effect on aesthetics, wildlife, and forest soils. The publication also provides guidelines for such harvests. It can be downloaded here.
This link will take you to the webpage with links to updated guidelines for Instream Work, Culvert Replacement and more stream restoration information.
The Vermont Department of Forests, Parks and Recreation is offering "Don't Move Firewood" customizable tools on the state firewood website www.firewood.vt.gov. A "Don't Move Firewood" poster is also available.
UNH Cooperative Extension has published the second edition of a keystone forestry publication Good Forestry in the Granite State: Recommended Voluntary Forest Management Practices in New Hampshire. It is available for free on-line at www.goodforestry.org. Ordering information for the hard copy is there as well.
The Vermont Council on Rural Development is facilitating a non-partisan and broad-based partnership to support local agriculture and forestry, grow and attract farm and forest entrepreneurs, and conserve Vermont's Working Landscape far into the future.
The Vermont Woodlands Association is an organization partner in the Working Landscape Partnership. Consider joining the partnership as an individual.
Farm Bill, like EQIP, contact your local NRCS office.
New Vermont Wetland Rules Available.
The Agency of Natural Resources has released the new Vermont Wetlands Rules. You can also visit www.anr.state.vt.us.
If you have a maple stand that is not tapped and would like to explore leasing opportunities, the Vermont Maple Sugar Makers' Association is looking for trees to tap. You can contact VMSMA at www.vermontmaple.org.
The document "Estate Planning for Forest Landowners: What Will Become of Your Timberland?" has been finalized an the electronic version was posted on the web. This document replaces the September 1993 document of the same name. The link to the pdf document is: http://www.srs.fs.fed.us/pubs/31987. For more information please contact Neal Bungard at the US Forestry Service at nbungard@fs.fed.us.
Vermont WildWoods is looking for forest-salvaged butternut.
We are looking to speak with any landowners who have diseased and dead butternut logs in their woodlands to potentially buy those logs. We only work with landowners who will agree to leave and not cut any healthy butternut trees in hopes of finding a disease resistant strain of trees. We have been collecting landowner records of potentially healthy butternut trees for 10 years and are starting to work with UVM School of Forestry to give them that information.
We are buying logs year round, and need 1000 board feet minimum to be able to purchase logs. We now have the capability to do the logging with a crew in east central Vermont using a 70hp 4wd Kubota tractor with logging winch and forwarder to minimize stand damage. When we are acting only as log buyers, and not doing the logging, we are paying an average price of $450/mbf International 1/4" scale log run on your landing.
If you are interested, or have questions, please call Parker Nichols, Owner, Vermont WildWoods, Marshfield, VT at 802-426-3449 or visit www.vermontwildwoods.com.
Heavy flowering of maple can lead to a large seed crop necessary for establishing regeneration, but can come at a significant energy cost to the tree.


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All posts tagged "Von Erich"
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TIG-TAG® You're it! The HOT new outdoor toy this summer
TIG-TAG®
You're it!
The HOT new outdoor toy this summer
www.tig-tag.co.uk
TIG-TAG® is an exciting new outdoor game designed to get the whole family up and playing together. Mum, Sister, Brother, Friend, Grandad – who's in for a game of TIG-TAG this summer?!
TIG-TAG is a super-lightweight and soft to the touch flying toy, designed to be thrown at your opponents. The aim of the game is to throw your TIG-TAG and hit your friends or family, whoever it touches, is then 'it'! Dodge, jump or run to avoid being 'it'! Is the aim of the game!
Sound familiar? Did you play 'Tig' when you were younger? No? How about 'Tag'?! These are just some of the names used to describe the popular children's game in which the player who is 'it' chases the other players in a bid to touch them, thereby making them 'it'. Popular around the world, this game has many names BUT, none of them quite like the reinvented game of TIG-TAG…
TIG-TAG is designed to be a softer, fairer, safer way to play the game. Tig-Tag removes the physical pushing or hitting of others to make them 'It', kids of all ages can simply throw the lightweight TIG-TAG. This means fewer accidents, while bigger children no longer have such an advantage! Making the game inclusive for all age groups to play together, Children as young as 3 get a real 'shot' at joining in with the family fun, adults, watch your back!!! Fun and laughter typically ensue!
TIG-TAG is cleverly designed to be easy to hold and to travel quickly through the air. Made from quality neoprene, it's incredibly gentle and soft on contact, it's also safe to wash and dries quickly.
Thinking of an outdoor game to take on holiday? Look no further. Lightweight and incredibly compact, TIG-TAG is the perfect travel companion when holidaying this summer.
Available from www.tig-tag.co.uk and Amazon
TIG-TAG® is designed and developed in the UK


2006 chrysler town and country repair diagram Chryslers minivan line continues for 2006 with only minor modifications and heated leather seats. Have had to have major repair 4 of the 6 years weve owned this including head gasket replacement Dear car talk my 2006 chrysler town amp country has an interesting problem that could require an actual mechanic a wiring diagram a voltmeter and maybe a couple of hemlock roots and an eye of Remedy chrysler will notify owners and dealers will repair the vehicles free of charge recalling certain model year 2008 and 2009 dodge grand caravan and chrysler town amp country passenger.
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It's possible to get or download caterpillar-wiring diagram from several websites. If you take a close look at the diagram you will observe the circuit includes the battery, relay, temperature sensor, wire, and a control, normally the engine control module. With an extensive collection of electronic symbols and components, it's been used among the most completed, easy and useful wiring diagram drawing program. 2006 Chrysler Town And Country Repair Diagram. The wiring diagram on the opposite hand is particularly beneficial to an outside electrician. Sometimes wiring diagram may also refer to the architectural wiring program. The simplest approach to read a home wiring diagram is to begin at the source, or the major power supply. Basically, the home wiring diagram is simply utilized to reveal the DIYer where the wires are.
In a parallel circuit, each unit is directly linked to the power supply, so each system gets the exact voltage. There are 3 basic sorts of standard light switches. The circuit needs to be checked with a volt tester whatsoever points. 2006 Chrysler Town And Country Repair Diagram. Each circuit displays a distinctive voltage condition. You are able to easily step up the voltage to the necessary level utilizing an inexpensive buck-boost transformer and steer clear of such issues. The voltage is the sum of electrical power produced by the battery. Be sure that the new fuse isn't blown, and carries the very same amperage.
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Cube 1 was created by artist Misia Slemp in 2016. This art piece , which is part of the Graphic Designs portfolio, is a Decorative Arts, Drawings / Sketch, Illustration, Tattoo artwork. The style of this artwork is best described as Abstract, Chance, Commercial Design, Cubism, Dadaism, Expressionism, Fauvism, Minimalism, Modernism, Opticality, Surrealism, Symbolism. The genre portrayed in this piece of art is Architecture, Conceptual, Decorative, Inspirational. The artwork was created in Ink. The size of the original art is 30 (cms) H x 30 (cms) W.


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Silver Dirt – Sonic Boom
Posted on June 1, 2006 by Olivier in Uncategorized // 0 Comments
SILVER DIRT
Released 2006 (sUISA/Silver Dirt)
01. Go! She Said
02. Sonic Boom
03. City Prowler
04. About Rock 'N' Roll
05. The Last Time
06. Last Exit/Voodoo Land
07. Mean Machine
08. Angel With Silver Wings
09. Room 666
10. She's Got To Be
11. Wasted Dream
12. Zero Gravity
13. Freedom Haven
Silver Steff – lead vocals
Dirty Lyo – all guitars and backing vocals
Dirty Seb – bass and backing vocals
Silver Gregg – drums and backing vocals
Produced by Johnny Cat and Silver Dirt. Recorded, mixed and mastered by Jean Cataldo.
A band who started out as a Zeppelin cover-band have paid their dues and has made their way into sleaze rock. Without paying any attention to what is out there for music today, they play their guitars loud and they play with their own set of rules.
Silver Dirt has a sound that is nearly extinct in the rock and roll world today. Whether it's a live show or on the album, you can hear the dirty rock and roll of the 70's and 80's apparent in their art. Their sound is very much like their influences of the Rolling Stones, AC/DC and Iggy Pop. Each song is filled with catchy power chords that pay tribute to rock and roll and the feeling of style that rock and roll presents to us.
The album is filled with passion and love for a time when rock and roll was everything and everything was rock and roll. With that passion is power but they mix so well together that they blur together and it's a perfect match.
The members of Silver Dirt are guys who live for rock and roll and have a story to tell through their songs and through their music. They even have a song dedicated to the great artists and the great songs that have influenced them: "About Rock 'N' Roll", which mentions a lot of the bands and songs that are about rock and roll excess and life on the road.
The feeling of this record is nothing short of a rock and roll party with no limits to what can occur. Each song is distinct and has a sound like none of the others, and the album has the music on it to be one of the top rock and roll albums of the time.
The band is truly at home when making music and this album is proof of that. They have the talent, the sound and the music to become a name in rock and roll!
www.silverdirt.com.
Reviewed by Sarah for Sleaze Roxx, June 2006.
"Hey you, crank up the volume it's a rock 'n' roll record goddamn it!" That is the opening line from Switzerland's Silver Dirt and are words that describe Sonic Boom perfectly. There is no flash or outrageousness here, it is simply a collection of stripped-down guitar oriented rockers that harkens back to the golden age of rock 'n' roll – the age in which song structure was more important than image.
I first heard of these guys through Perris Records' Hollywood Hairspray 5 compilation and named them as one of the most surprising bands on the disc due to the excellent "Go! She Said". Ironically Silver Dirt started out as a Led Zeppelin cover band, but this release doesn't follow Led Zep's majestic leanings (aside from "Angel With Silver Wings"). Instead it dives headfirst into the simplified sounds of 70s garage rock, the Rolling Stones, Gilby Clarke and even AC/DC.
Some of these songs are simply great, like the aforementioned "Go! She Said" and the raunchy "Wasted Dream". Also the no-frills rockers "About Rock 'N' Roll" and "Mean Machine" have a three-chord swagger that would make AC/DC proud. The guitar riff on the seven plus minute epic "Angel With Silver Wings" is a memorable one, but the solo itself seems to lose focus. A better epic is the closing southern-fried "Freedom Haven" which is a cross between Tesla and Raging Slab's "Good Morning Little Schoolgirl". I thought "She's Got To Be" was going to wander too deep into punk territory for my liking, but it ended up being a fun retro rock number. And the band perfects the Rolling Stones' "The Last Time". It has a similar feel to old Amboy Dukes material and I couldn't help but wonder if this is what the Dave Clark Five would have
sounded like is they had arrived in this decade as opposed to the 60s British Invasion.
Don't expect to hear anything really groundbreaking on Sonic Boom, but do expect to hear awesome guitar driven rock 'n' roll. This is the type of music that goes over well at an outdoor festival with ample amounts of alcohol – I like it.
Reviewed by Skid for Sleaze Roxx, March 2006.


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In a world increasingly starved for growth, we believe Indonesia has several substantial macro tailwinds that will continue to drive its GDP higher – and potentially with lower than average volatility. However, recent economic growth has come at a significant cost, and in our view, the country now needs to address the notable increases in both its fiscal and current account deficits. If the country can successfully address these challenges, then we think Indonesia could represent one of the more compelling opportunities in the global capital markets over the next five to seven years.
When I first went to Indonesia in 1995, I trekked to Bukit Lawang in northern Sumatra with my best childhood friend to see orangutans in the rainforest. To this day, it remains one of the highlights of my international travels. My next trip to Indonesia was in 2001, and I spent the lion's share of my time in Bali with my wife snorkeling and surfing near the beautiful beaches and then hiking upland in the country's lush rainforests.
So as one might imagine, when I touched down in the country's largest city, Jakarta, a few weeks back, to tackle an agenda that was 100% work-related, the tall buildings, traffic and crowds were all certainly a shock to my previous memories. So, I guess there is—indeed—a reason that Indonesia's national motto, which is taken from a 14th century poem, is "Unity in Diversity." Importantly, though, Indonesia's breadth of offerings is not limited to just geography; it also applies to the country's rich backdrop of religious, ethnic, cultural and commercial diversity.
Nonetheless, this trip too was quite memorable as I left the country with a sound understanding of why Indonesia is becoming such an important linchpin in the meteoric rise of the overall Southeast Asia region in the global economy. Indeed, using both its "unity" of purpose and "diversity" of resources, Indonesia now boasts an economic trajectory that is on pace to become a top-10 economy by 2030. Potentially more important to investors is that Indonesia's consumer economy could become the third largest by 2050, trailing only China and India.
But to fully understand what is changing in Indonesia, our recommendation is that folks need to get out of Jakarta, the nation's capital and economic power (e.g., Jakarta accounts for 20%+ of GDP growth1), and spend time in cities like Surabaya and Medan. Why? Because we believe it gives an investor a true appreciation for the smaller, but faster growing and more dynamic parts of the country's economy. Moreover, by visiting existing ports, roads and retail outlets in these smaller cities, an investor gains a better understanding of how even small improvements in technology, education, and infrastructure can materially accelerate improvements in the country's GDP per capita.
However, economic success in recent years has come at a significant cost. After more than a decade of notable discipline surrounding macro-related matters, Indonesia is now one of the few Asian emerging market (EM) countries with both a fiscal and current account deficit, with India being the only other major EM country with this 'distinction.' A key culprit for this conundrum is the country's fuel subsidy program. All told, the government now spends 3.7% of total GDP on fuel subsidies to placate an increasingly vocal voting base2. In our view, this type of policy is extremely shortsighted and has already begun to create significant currency and inflation concerns.
By overspending on fuel subsidies, the country is also misdirecting its limited government monies away from the infrastructure, healthcare and education initiatives that the country desperately needs to fulfill its long-term potential. This viewpoint is not to be under-estimated, we believe, as history shows that such misguided spending can often act as a cancer, destroying both long-term productivity and potential growth.
Favorable Demographics Will Likely Drive Further Increases in GDP per Capita Similar to India, Turkey and Brazil, Indonesia is one of the demographic 'elite' countries, with 50% or more of its population under the age of 30 (Exhibit 17). 2012 GDP per capita was just $3,596, 3/5 the level of China and only 1/3 the level of Brazil (Exhibit 22). The good news is that the gap is now narrowing as Indonesian GDP per capita (in USD) has compounded at an annual growth rate of 18% between 2005 and 20113, and we look for a further 40% aggregate increase from 2012 to 2017. Given such strong tailwinds, Indonesia is projected to be the fourth biggest consumer economy in the world by 2030 versus just 18th today (Exhibit 10). Within this consumer market, we see health and beauty, transportation, leisure, and education/training all as attractive markets.
High Corporate Sector Profitability in Fast Growing Region of the World Indonesian companies are highly profitable, ranking among the most lucrative in Asia. In fact, return on equity for the Indonesia index of publicly traded companies is around 21.5% versus 16.5% for Thailand and 13.5% for Malaysia4. In our view, strong profitability represents not only sound execution but is also reflective of the positive macro tailwinds that Indonesia enjoys by being part of the fast-growing Southeast Asian region. Already, 70% of Indonesia's exports now stay within Asia, which is significant as the OECD is projecting middle class consumers in the region to increase by a staggering 515% to 3.2 billion by 2030 versus 525 million in 2009.
However, There Are Definite Signs of Economic 'Slippage' In 2012, Indonesia ran a 2.7% current account deficit, while its fiscal deficit reached negative 2.1% versus a mandatory legal limit of 3.0%6. In 2013, the issues surrounding these deficits have only gotten more challenging. Twin deficits are rare in fast growing economies, and as such, they often portend an imminent 'adjustment' period, including currency weakness and/or inflation headwinds. Given that the Fed may now be finally withdrawing excess liquidity, Indonesia may be forced to make adjustments to its deficits precisely at a time when its cost of capital is now almost certain to rise. Exacerbating the issue is the country's large fuel subsidy program, which now totals around 3.7% of GDP. To put this in perspective, the outlay for its current fuel subsidy program is almost equal in both absolute dollars and as a percentage of GDP to what the government now spends on public healthcare and education programs combined7. We certainly acknowledge that the government is now in the process of reigning in spending on fuel subsidies, but – unfortunately – it appears that the monies will be redirected towards other programs that keep its imbalances at notable levels.
Hard Place to Do Business According to the World Bank's Ease of Doing Business Index for 2012, Indonesia is ranked 128 out of 185 economies, slightly better than Brazil and India but more difficult than China. Importantly, this ranking could fall further after it was announced that foreigners owning local mines must "sell back" their properties to locals by 2018. We also heard repeated concerns from business executives about the growing power of labor and its impact on operating results, margins and operating flexibility in particular. Finally, as has been consistently documented in the press, corruption remains an ongoing issue in Indonesia that foreign investors must consider carefully.
Need to Translate Recent Commodity Economy Into a 'New' Services-based Economy In our view, the country can move faster to capitalize on the significant opportunity to leverage its recent 'commodity dividend' into other areas of the economy, including services and infrastructure. At the moment, Indonesia has just 39% of its industry in services versus 56% in India and 68% in Brazil (Exhibit 16). The risk of missing this opportunity is significant as the economy still has 35% of total employment related to agriculture; moreover, 74% of the increases in exports in 2011 were driven by price, not volume (Exhibit 46). Recent results seem to reflect this view as real 1Q13 GDP fell to 6.0% y/y from 6.8% in 4Q2010, driven largely by declines in the prices of coal, crude oil, palm oil and rubber8. And with China now shifting its growth priorities towards less capital-intensive growth, there is already heightened risk that Indonesia may have already missed its window of opportunity.
So what is our bottom line on Indonesia? Simply stated, in a world where it is increasingly hard to find growth, we think that Southeast Asia, Indonesia in particular, represents one of the more compelling long-term investment destinations. Unlike many of the larger and higher profile EM countries, Indonesia has a more balanced economy, its debt load is lower, and its resource base is richer in many instances than some higher profile emerging markets like China, India, and Brazil. And with reasonable productivity, Indonesia's GDP growth should shine bright on both a relative and absolute basis.
Data as at May 31, 2013. Source: Factset Aggregates.
Data as at May 31, 2013. Source: MSCI, Factset.
In the near-term though, there are several reasons why some patience and skepticism is required. Public valuations are now rich in many instances at a time when significant wage growth is beginning to pressure margins. And with U.S. interest rates rising, the competition for capital is now going up, and it is likely to pressure emerging market currencies and interest rates in the future. Finally, we think GDP growth in Indonesia is likely to disappoint in the near-term, driven largely by lower commodity prices and weaker export growth.
Data as at June 18, 2013. Source: Bloomberg.
Data as at June 20, 2013. Source: Bloomberg.
On the private side, the story is even more complex. From our vantage point, a local presence is likely required, but so too is a regional one to be able to compare and contrast both macro and micro influences affecting current investment decisions and business trends across the region. Also, given that the cost of capital is now so low relative to history, private equity firms should bring more than just their capital base; they should be good partners with strong operational capabilities and industry expertise. Equally as important, private equity investors may need to work harder with the local communities in which they invest to navigate the secular trend towards increasing government intervention, nationalism and income equality.
Data as at June 19, 2013. Source: Departemen Keuangan, Biro Pusat Statistik, IMF WEO, Haver Analytics.
Data as at December 31, 2008. Source: OECD. To find out more about the methodology used to calculate the OECD employment protection indicators, see www.oecd.org/employment/protection.
In a world of increasing macroeconomic instability, the speed and – potentially more importantly – the steadiness – of Indonesia's growth rate is a notable point of distinction. In 2012, for example, the country maintained a 6.2% growth rate, despite the fact that exports were actually negative for the first time in eight years (Exhibit 8).
And over the last 12 years, the country has had among the lowest volatility and cyclicality of GDP in the major economies we follow. One can see the stability and breadth of recent economic trends in Exhibits 7 and 8 below.
Data as at April 16, 2013. Source: IMF estimates, KKR Global Macro & Asset Allocation calculation.
Data as at May 6, 2013. Source: Biro Pusat Statistik, Haver Analytics.
A major reason for Indonesia's success is that the economy is not too dependent on one sector or product. In particular, the Indonesian economy has its own vibrant domestic consumption economy. By comparison, many emerging markets we visit are either overly reliant on low-end exports and/or high fixed investment. If there is a shortcoming in GDP composition, we would argue that it is the government's low spending ratio. As one can see in Exhibit 9, Indonesia's government contribution to GDP substantially lags that of its peers.
PPP=purchasing power parity. Data as at June 4, 2013. Source: Instituto Brasileiro de Geografia e Estatística, India Central Statistical Organization, Biro Pusat Statistik, and China National Bureau of Statistics.
PPP = purchasing power parity. Data as at January 2010. Source: Brookings Institution, OECD Development Centre Working Paper No.285 DEV/DOC (2010).
(1) Real GDP as of 2012. Source: Biro Pusat Statistik, Haver Analytics. (2) Population estimates as of May 11, 2011. Source: United Nations World Population Prospects, Haver Analytics.
Source: McKinsey Global Institute "The archipelago economy: Unleashing Indonesia's Potential" dated September 2012.
Another key attribute of the economy is that Indonesia is blessed with strong productivity (Exhibit 11). While it certainly may not feel that way when stuck in one of Jakarta's well-documented traffic jams, Indonesia's productivity growth is notably above other emerging market countries, including India, Malaysia, Philippines, Vietnam, Brazil and Mexico. We link the strong productivity to several things. First, there is an ongoing shift from a rural to an urban population, which provides an inherently attractive productivity tailwind. Second, as we mentioned earlier, a lot of the fastest growing parts of the country are smaller cities outside Jakarta where the introduction of basic services like the Internet, water infrastructure and public transportation are all helping to drive growth (Exhibit 12). As these cities become more modern, we believe it will continue to drive productivity levels higher. Third, the manufacturing sector has become more formidable as the country transitions from low-end manufacturer (food processing and clothing) to higher value-added products like equipment and machinery.
Importantly, Indonesia has also been able to grow its economy without the use of significant leverage from either the government or private sector. One can see this in Exhibits 13 and 14. These low leverage ratios are hugely important for several reasons. First, in terms of downside protection, the low level of credit gives us comfort that strong underlying GDP trends will not be overshadowed by de-leveraging in any part of the economy. Second, no sector of the economy appears to be over-earning by using credit to facilitate strong growth. Third, leverage levels are so low that there is actually the potential to help improve the build-out of key industries like housing, which can serve as an important cornerstone in the trend toward urbanization/GDP per capita.
Data as at 3Q2012. Source: Bank for International Settlements, Respective National Statistical Agencies.
Data as at April 16, 2013. Source: IMF WEO, Haver Analytics.
Our trip also left us with the distinct impression that there is a major opportunity to make the country's remaining agricultural sector more productive. As Exhibits 15 and 16 illustrate, agricultural employment accounts for a full 35% of total employment, but just a modest 15% of total GDP. Importantly, the government is starting to do its part, pushing heavily for improved farming techniques, including fertilizer improvements and more sophisticated seeding. Rice is still the country's staple crop, but given surging demand, the country is still a net importer as at 2012. The country is also now the world's second largest producer of palm oil, and it is also among the leaders in rubber production.
There is also significant opportunity for GDP growth in the country's services sector. As Exhibit 16 shows, Indonesia's services sector is still relatively small at 39% of GDP. By comparison, China, India and Brazil all have services sectors that are between 6 to 29 percentage points of GDP higher than Indonesia. A key reason is that credit penetration is relatively low, and with low credit penetration and a modest GDP per capita, the country's retail and lending segments of the services market are still in their infancy relative to many other emerging market countries.
Data as at December 2009-2012. Source: World Bank, Haver Analytics.
Data as at April 15, 2013. Source: Biro Pusat Statistik, India Central Statistical Organization, China National Bureau of Statistics, IMF, Haver Analytics.
So while there is more work to be done in terms of more focused government spending and the need to energize the private sector to do more in partnership with the government on the infrastructure front, we believe the Indonesia GDP growth story is not likely to suffer the same significant slowdown in GDP that we are seeing in India, China and Brazil. To be sure, export growth linked to commodities and international trade is likely to disappoint in the near-term, but wages are rising, spending is growing, and GDP per capita is ticking higher. Equally as important, the country already has enough internal demand to make it less dependent on the global economy to meet its growth forecast. As a result, we think that the long-term outlook for the country makes it an attractive destination for emerging market-oriented growth capital.
When it comes to consumption, which is already the largest part of the Indonesian economy at 56%, there is no question that Indonesia is in the Michael Jordan "make it happen" category. Indeed, as Exhibit 17 shows, Indonesia has not only a young population but also a growing one, with huge consumption potential. Importantly, this trend is likely to gain momentum because, as we show on Exhibit 18, Indonesia's working population is not likely to peak until 2036. And unlike a country like China, which needs to encourage savers to spend, Indonesia has a pretty good balance between savings and consumption.
Data as at September 26, 2012. Source: United Nations World Population Prospects, Haver Analytics.
In aggregate, Indonesia's middle class is expected to grow to 95-125 million people, or 35-45% of the total population by 2030 versus 45 million, or 18% of the total population today (Exhibit 20). And if one has the time and patience to look out to 2050, Indonesia will have the third largest middle class population in the world, behind only China and India (Exhibit 21).
Source: Article by Asosiasi Pengusaha Indonesia dated October 8, 2012 quoting Deputy Finance Minister Mahendra Siregar.
Data as at April 16, 2013. Source: Biro Pusat Statistik, IMF, Haver Analytics.
Given its strong demographic profile and shifting economic drivers, we expect the trend towards rising GDP per capita to maintain strong momentum over the next five to seven years. At the moment, urbanization is only around 51-52% of the total population (Exhibit 23). We believe this can easily continue to increase on an annual basis by 70-80 bps, reaching 57% percent over the next five to seven years. So unlike the "catch-up" in urbanization that some are forecasting in India or the rebalancing that some are forecasting in China, the Indonesia story is really about staying the course, including steadily lifting GDP per capita via urbanization efforts in many of its smaller cities.
Data as at March 18, 2013. Source: World Bank, Haver Analytics.
Data as at April 16, 2013. Source: World Bank, Biro Pusat Statistik, India Central Statistical Organization, China National Bureau of Statistics, Fundaçâo Instituto, Banco Central do Brasil, IMF, Haver Analytics.
Overall, as we look ahead, our base view is that demographic trends, including the sizeable increase in the country's middle class through 2030, are likely to make Indonesia one of the most compelling consumer growth stories in the global economy. Importantly, the country does not need to rely on a lot of external macro forces to be successful. Rather, it just needs to focus on two goals, both of which we think are achievable. First, it should execute on building out basic goods and services, including infrastructure, education, and healthcare. Second, the country should then allow its demographic forces to help drive its economy away from more traditional agriculture and commodities toward more services and value-added exports.
As part of our trip to Indonesia, we spent time talking with leading executives and senior government officials about which sectors would benefit from the ongoing changes we are seeing in the country's demographic profile. To be sure, no one knows exactly how a doubling of the country's middle class will exactly play out over the next decade, but we do believe that one can make reasonable assumptions – often using historical comparisons – to forecast which sectors are likely to be the star performers. Not surprisingly, many of the industries we view favorably are in the consumer part of the economy. Importantly, this viewpoint is consistent with our approach to other leading emerging economies, though – as we discuss below – every country has political, economic and social nuances to which one must pay attention.
To this end, we spend time in this section highlighting macro-related trends that we think may benefit certain micro-related sectors, including education and training, healthcare, retail, and housing/financial services. Please note, however, that we address the Indonesian infrastructure opportunity in our savings and investment section, given that it includes a large degree of government involvement.
Education and Training One of the great ironies of visiting an emerging market like Indonesia these days is that, despite its booming labor force growth, there is still a shortage of skilled laborers in many sectors of the economy. At the moment, the unemployment rate in Indonesia is just 5.9%, down from 8.5% five years ago.9 However, after talking with leading executives across a variety of sectors in Jakarta, we strongly feel that the unemployment rate understates what we think is a large and growing issue: the ability of many businesses to find local workers with the required technical expertise to compete in an increasingly competitive economy. To remain competitive as well as to drive further long-term economic growth, our strong view is that Indonesia needs to immediately invest much more aggressively in higher-level education and vocational industry training initiatives.
Our research shows that Indonesia faces multiple issues in the area of higher education. As we show in Exhibit 25, education spending in Indonesia is still well below many of its emerging market peers on a per capita basis. Probably more important though, to us is that only 7% of adults complete post-secondary education (Exhibit 26).
UNESCO statistics as at December 31, 2010, except China per OECD 2008 estimate. Source: UNESCO, OECD.
Source: JPMorgan Education in Brazil report dated February24, 2011; UNESCO Global Education Digest 2010.
One alternative that an increasing number of affluent Indonesians are choosing is to send their kids to the United States or Europe for higher education. However, this approach clearly does not address how the country will deal with the 50 million or more middle class Indonesians who are eager to improve their standing in the global workforce. If there is an encouraging trend, we think that it is linked to the fact that more students are beginning to again embrace vocational programs (Exhibit 27). Importantly, we view the trend towards greater participation in higher education and vocational training as secular, not cyclical, and one that is likely to be a major opportunity for private capital, which can help to expedite certain aspects of this growth, including facilities, publishing, education and technology.
Data as at December 31, 2009. Source: Newhouse and Suryadarma, 2009 (based on Susenas).
Healthcare Without question, after our most recent trip to Indonesia, we think that healthcare demand can grow materially faster than GDP per capita over the next 5-10 years. Key to our thinking is that GDP per capita in Indonesia is historically at a level where we typically see private sector practices start to emerge and take share from crowded government-run facilities. Because there is no real regulation of pricing and quality of services, the opportunity for quality private companies to build a loyal following over time is significant. Moreover, as more citizens enter the 'formal' workforce through increased urbanization, healthcare spending, particularly with scale providers, should benefit smartly. We also heard on our trip that more foreign healthcare doctors and providers may gain access to the country over the next three to five years, which should help to improve the levels of spending and healthcare services throughout the country.
Against this backdrop, we expect healthcare as a percentage of GDP to increase meaningfully over time too. This statement is actually not that radical, given that Indonesia allocates among the lowest amount of money as a percentage of GDP to healthcare. Indeed, as Exhibit 28 shows, healthcare spending as a percentage of GDP is less than 1%, which compares unfavorably with Brazil and Turkey and even India.
Data as of 2011. Source: World Bank, Haver Analytics.
Data as at April 17, 2013. Latest available data per respective country as per the World Bank. Source: World Bank, Haver Analytics.
Data is 2009 or latest available year. Source: Organization for Economic Co-operation and Development (OECD), Factbook 2011: Economic, Environmental and Social Statistics - ISBN 978-92-64-11150-9 - © OECD 2011.
Looking ahead, our base view is that as wealth accumulates, a growing percentage of the urban population will migrate towards private clinics and hospitals. This trend is playing out nicely in almost all the emerging markets we visit, and as such, we expect to see similar momentum in Indonesia in the coming years. Importantly though, the Indonesian government's shift towards more of a decentralized structure since 2001 likely means that the private sector may become more influential sooner in the process than in other EM countries. Separately, we also expect overall healthcare volumes to increase, which should create opportunity for scale players in the healthcare supply industries, including testing and preventative practices.
Retail/Restaurants/QSR In theory, a thriving consumer benefits companies that sell clothes, food and other sundry goods to shoppers. But as one can see in Exhibit 32, the overall retail market in Indonesia is largely unsaturated. And if we use Indonesia's grocery retailing as a proxy for overall retailing, one can see in Exhibit 33 that it is also quite immature. All told In fact, Indonesia's convenience stores, hypermarket stores and department stores only represent around 2-4% of total retail sales. In other developing markets, by comparison, sales comprise around 10% of total retail sales10.
Source: JPMorgan "Indonesia Retailers: Organizing the shelf, filling the shopping basket" dated March 10, 2013, Euromonitor.
Against this backdrop, we think private equity currently represents a more elegant way to access retail trends. Specifically, our view is that local QSRs (quick service restaurants), bakeries and snack-foods all represent interesting private equity investment opportunities, particularly when there are generational shifts in private company ownership or industry leaders with management teams who are eager to consolidate a greater proportion of their industries.
Housing and Financial Services As a former financial services analyst, I always view the banking sector as the 'life blood' of any economy. The good news for Indonesia – which was confirmed on our visit – is that the banks are in great shape. Moreover, while there is a state-run component to part of the banking sector, it pales in comparison to what we see in many of the larger emerging economies. Overall, credit losses are low, margins are strong and growth is enviable.
Looking at the details, credit penetration in total in Indonesia is just 32% of GDP, of which mortgage penetration is just 5% of GDP (Exhibit 34). Separately, total insurance penetration remains relatively low by global standards in Indonesia. Measured by gross premiums written as a percentage of GDP, penetration is only 1.7% overall, compared with the world average of 6.6% in 2011 (Exhibit 35).
Data as at 2012 or latest available. Source: Respective national statistical agencies.
*Insurance penetration defined as gross insurance premiums written as a percentage of GDP. Source: World Insurance in 2011, Swiss Re Sigma.
Data as at June 13, 2013. Source: Bank Indonesia, Bloomberg, Haver Analytics.
Data as at January 31, 2013. Source: Bank Indonesia, Haver Analytics.
Data as at April 17, 2013. Source: World Bank, Haver Analytics.
However, our conversations with senior executives in the financial services industry lead us to believe that credit growth is now finally percolating among a broader base of consumers, as wages grow and urbanization begins to further accelerate. Consistent with this view, our research shows that housing is still a small part of the market that is starting to grow nicely. For example, when I was in Surabaya, I visited a large community development of maybe 60-70 three and four bedroom houses being built with compelling amenities, many of which would be similar to a standard western-style dwelling. No doubt, the community I visited was more the exception than the rule (and we saw plenty of shanty huts to confirm this viewpoint), but it certainly provided me with a window on why I think housing and mortgage-related activity can be a more meaningful part of the economy.
If there is an issue, it is that the banking system's loan-to-deposit ratio is moving up rather quickly (Exhibit 39). One sharp executive with whom we spoke believed that lack of government spending on real investments was part of the problem. Key to his thinking is that capital that traditionally might flow through the banking system via consumer deposits to help finance productive long-term investments was currently being misallocated towards more consumption-oriented programs, including subsidies. We tend to concur with this logic, particularly as the country's deposit-to-GDP ratio is now the lowest in the Asia (Exhibit 40).
Data as at March 6, 2013. Source: Bank Indonesia, Haver Analytics.
Data as at January 31, 2013. Source: Bank Indonesia, Biro Pusat Statistik, People's Bank of China, China National Bureau of Statistics, Monetary Authority of Singapore, Singapore Department of Statistics, Reserve Bank of India, India Central Statistical Organization, Banco Central do Brasil, Instituto Brasileiro de Geografia e Estatística, Haver Analytics.
Overall, though we view the financial services system positively, and we think the publicly traded banks, while expensive, may represent valuable assets for investors looking to participate in the Indonesian growth story that we are forecasting. For private investors, we think insurance, payments, trade finance and other lending vehicles are all worthy of consideration.
Given that the country must try to absorb an additional 50 million 'new' middle-classers between now and 2030, there are clearly significant opportunities for the government to help ensure that Indonesia's GDP-per-capita story maintains its current momentum. Beyond the fuel subsidy issue that we have already flagged, the government also needs to address the small size of its tax revenue base. Indeed, as we show in Exhibit 41, Indonesia's tax revenue base at 15-17% of GDP definitely appears low versus other countries. Put another way (and contrary to what Ralph Waldo Emerson suggested), it appears that Indonesia is actually one of the few countries where for every benefit one receives, a tax is actually not necessarily levied.
So what should happen? We believe that the government needs to do more to expand its base of eligible employees, so that it can fund more social programs and infrastructure. A way to accomplish this without massively raising taxes is to expand the taxable base of 'qualified' individuals. As one can see in Exhibit 42, the informal sector of the economy in Indonesia is outsized, which dents the country's ability to properly capture tax revenues.
Data as at April 16, 2013. Source: IMF WEO estimates for 2013.
Data as at April 16, 2013. Source: "Statistical update on employment in the informal economy" by International Labour Organization (ILO) Department of Statistics dated June 2012, http://laborsta.ilo.org/informal_economy_E.html, and IMF WEO estimates for 2013.
Interestingly, almost every business leader, politician or regulator with whom we spoke indicated that the current fiscal policies, including a small tax base and outsized subsidies, were detrimental to the long-term health of the country. However, with a strong economy, low unemployment, and a small deficit in absolute terms, there is no longer a catalyst for action the way there has been in the past during periods of economic strife. Also, given that the government by law can't have more than a 3% fiscal deficit, many people feel that this is not a situation that will quickly spiral out of control.
Our experience however, suggests a more cautious approach to these issues is likely warranted. Key to our thinking is what we are seeing unfold in both India and Brazil. Similar to Indonesia, both of these countries have incredible demographic backdrops. Unfortunately, poor macroeconomic choices have left these countries with slower than expected growth but higher than expected inflation. The major issue, we believe, is that in both instances the government over-stimulated economic growth via short-term fuel subsidies and one-off social spending after the 2008 Great Recession. Sound familiar? Last year in fact, Brazil grew just 0.9% year over year versus a peak of 6.1% in 2007, while India grew 6.2% versus a peak of 6.5% in 201111. Importantly, recent trends have continued into 2013, with both countries disappointing badly again in 1Q13.
So where do we go from here? Our base view is that, as Indonesia becomes more developed, some of the headwinds created by such a large informal economy could start to dissipate. Also, as GDP per capita continues to increase, the absolute base of tax revenues should grow commensurately. However, the recent trend towards increased government intervention is certainly worthy of investor attention. In particular, while government support of labor is important in any developing country, there is a growing risk that the government may overstep its boundaries, driving up the country's cost of capital and driving out the foreign direct investment that is necessary to fund many of its growth initiatives.
From almost any vantage point, Indonesia has a strong trade business. The country is rich in key natural resources, including coal, copper, oil, gas, palm oil and rubber. All told, two-thirds of the total exports come from commodity related sources, while about two-thirds of imports come from non-commodity related items (Exhibits 43 and 44).
Another key insight we learned during our trip is that multinational firms are increasingly viewing Indonesia as not only a destination for product but also as a hub for their Southeast Asian businesses. This strategic positioning is significant, in our view, and is likely to further accelerate foreign direct investment into important areas like manufacturing.
Data as at May 01, 2013. Source: Bank Indonesia, Haver Analytics.
Data as at May 27, 2013. Source: Bank Indonesia, Haver Analytics.
However, growth in the export economy in Indonesia has been too reliant on higher commodity prices, not on productivity gains in the sector. According to work done by my colleague Frances Lim, a full 74% of the total export increase in 2011 came from price, not volume (Exhibit 46). This total is significant as commodity exports represent 60-70% of total export volume (Exhibit 43). One can also see from this chart that 2012 is actually not that much of an outlier. By comparison, more than 60% of the country's imports are non-commodity related, with machinery and transport equipment accounting for nearly half of that total (Exhibit 44).
Data as at May 9, 2013. Source: Morgan Stanley Research, CEIC Data.
Data as at May 30, 2013. Source: Bank Indonesia, IMF, Haver Analytics.
In our humble opinion, Indonesia has not moved fast enough yet to leverage its recent success in commodities to further buttress the other parts of its economy. Now, with China slowing and coal and palm oil prices having fallen by 20% or so, many parts of its export economy are now feeling the pinch. In fact, in 2012 exports were actually negative. That's the bad news (Exhibit 46).
The good news is that there are signs that the situation is turning more positive, and we actually have confidence that the government and private sectors are working together to build momentum in the manufacturing export sector. Interestingly, we heard first hand during our last China visit that manufacturers are now consistently seeing parts of their value-chain being transferred to Java from Southern China. This trend is particularly acute with foreign corporations in the areas of transportation equipment and machinery. All told, at the end of 2012, this segment accounted for 15% of FDI (Exhibit 48). International investors have clearly taken note of this trend, as foreign direct investment has ballooned in recent months.
Looking ahead, we think the export-related manufacturing story in Indonesia is sustainable, though our thinking is that the country should do even more to diversify its export economy. If it can, then it will be one of the few emerging market countries with not only a broad-based consumer economy but also one that can compete actively in a global trade market in one of the fastest growing regions in the world.
Data as at 1Q2013. Source: Bank Indonesia, Biro Pusat Statistik, Haver Analytics.
Data as at March 31, 2013. Source: Bank Indonesia.
An important piece of any macro puzzle we review when doing country-level research is the relationship between savings and investment. If a country doesn't save enough, it usually can't afford to spend enough on the investment required to drive long-term, sustainable growth. Importantly, in the emerging markets, the key to investment is usually the infrastructure part of the investment spend. Though it is now changing, this is an area where Indonesia has chronically underspent. In fact, infrastructure spending has been tracking at only 3-4% of GDP12. In the years prior to the Asian Financial Crisis, Indonesia was spending 7%, more comparable to the current 6-8% in India and nearly 10% in China, according to the Public Works Ministry (Exhibit 49).
But one does not need to be a macro person to know Indonesia lacks in infrastructure. A 'quick' trip in from the Jakarta airport, which is usually filled with gobs of traffic and several random phone disconnections, reminded us of the infrastructure challenges the country faces. This is not 'new' news. What did surprise us, however, was when multiple executives with whom we spoke told of pumping water to their homes in Jakarta, as it was still not provided to them by the government.
Data as at December 31, 2012. Source: CEIC Data and Morgan Stanley Research.
Data as at May 11, 2011. Source: Morgan Stanley Research, "Indonesia Infrastructure: A US$250bn Opportunity" dated May 11, 2011 by Deyi Tan. e = Morgan Stanley Research estimates; f = Morgan Stanley Research forecasts.
Data as at April 16, 2013. Source: IMF WEO estimates for the year 2013.
According to an optimistic report by the global investment bank Morgan Stanley, the country will spend $250 billion over the five-year period ending in 201513. If correct, then annual infrastructure spending would rise to around 6% of GDP, up from 4% in 2010, with electricity and roads accounting for over 50% of the total incremental increase (Exhibit 50). That is the good news.
The bad news is that—to date—almost all infrastructure plans are well behind schedule. The government's medium-term plan, which called for 70% of the $150 billion allocation to be invested in infrastructure from 2010-2014 to come from the private sector, has not happened. The Public Works Ministry acknowledged that its Private Partnership Plan (PPP) has not worked, and it is now aggressively making changes to improve the situation, including more government funding and greater economic incentives for the private sector.
Interestingly, the lack of infrastructure investment is not linked to either a low savings rate or lack of external capital. As Exhibits 53 and 54 show, Indonesia actually has both. What has happened though, is that a lot of the private sector capital went into higher return mining investments and less into basic infrastructure services required to meet the needs of the country's booming middle class. Also, as we mentioned earlier, government revenues are light relative to many economies, so the government contribution to infrastructure spending has been limited.
There are also some historical 'quirks' worth considering. Specifically, Indonesia was ruled by the Dutch from 1826 to 1949 and as history has demonstrated, Dutch-occupied countries enjoyed much less infrastructure build-out than those overseen by countries like the United Kingdom. Second, similar to Brazil, Indonesia has a varied terrain that has historically prevented it from making sweeping cross-country (or even cross island) investments. Third, as we mentioned above, execution between the government and private sector has been disappointing, a trend that has been exacerbated by a more decentralized government structure that has made it harder to get things done.
Estimates for 2013. Data as at April 16, 2013. Source: IMF WEO April 2012.
Data as at 1Q2013 or latest available. Source: Bank Indonesia, Malaysia Department of Statistics, Bank Negara Malaysia, Central Bank of the Philippines, Singapore Department of Statistics, Monetary Authority of Singapore, Bank of Thailand, Asian Development Bank, General Statistics Office of Vietnam, International Monetary Fund, Haver Analytics.
Looking ahead, our conversations with both the government and private sectors lead us to believe that we are close to a bottom in terms of missed infrastructure execution. In recent weeks, the government has been revamping its strategy for working with the private sector, and our discussions in Jakarta with a variety of infrastructure folks leads us to believe that expectations have been lowered to a much more appropriate level. Moreover, we see increased private sector interest in allocating capital towards shipping, roads, tolls and power. These initiatives will certainly not happen overnight, but we believe that expectations are now more realistic, return targets are more reasonable, and the government's sense of urgency is now heightened.
Capital Markets, Currency and Inflation Outlook: A Potential Near-Term Achilles Heel?
As investor interest in Indonesia has grown, its capital markets have developed considerably. In particular, as we show in Exhibit 55, its market capitalization as a percentage of GDP is now much more on par with the average of its Asian peers. This re-rating makes sense, given the country's strong growth, high profitability and powerful demographics. However, we believe that the equity story is far from over (Exhibit 56), particularly if the government can reign in its deficits.
Data as at March 31, 2013. *GDP-weighted average of China, S. Korea, Indonesia, Taiwan, Thailand, Malaysia, Philippines, Vietnam, and Singapore. Source: Bloomberg, IMF, Haver Analytics.
Data as at March 31, 2013. Source: Bloomberg, IMF, Haver Analytics.
On the fixed income side, the story is more complicated. Indonesia relies heavily on foreign investors to cover its fiscal deficit (Exhibit 57). Until recently, this dependence was not really an issue. However, as tightening cycles occur in areas like the United States or Europe, then Indonesia could face some serious headwinds. Exacerbating the issue is that Indonesia has only around $100 billion in reserves14. As we show in Exhibit 58, its external foreign debt relative to its reserves is second to only Korea in the Asian markets.
Data as of April 30, 2013. Source: Indonesia Directorate General of Debt Management. Bank Negara Malaysia, Bank of Thailand, Haver Analytics.
Data as at March 19, 2013. Source: World Bank, Haver Analytics.
In our view, the Indonesian capital markets face several issues through which investors should work. First, though they have corrected somewhat in recent weeks, both debt spreads and equity trading multiples in Indonesia are quite rich relative to both history and their peer group. So, everything needs to continue to go right for it to persist in maintaining such premium valuations. Second, Indonesia is likely going to feel some notable impact from the country's reduction in its fuel subsidy over time, as we believe that ultimately it is a fuel price increase that may cause inflation to rise. According to the investment bank Morgan Stanley, every 10% rise in retail fuel price would add 80 bps to headline inflation, with a 22-44% increase adding 290 bps, bringing headline inflation to mid-8% territory15. Not surprisingly, a reduction in the fuel subsidy may also act like a tightening, denting consumption on the margin. Third, interest rates are moving in line with the U.S. and on the verge of causing a tightening cycle.
Looking ahead, we think the country's upcoming election, its subsidy/inflation issues, and the 'tapering' of Quantitative Easing in the U.S. are likely to increase the volatility of its capital markets, and we would not be surprised to see the country struggle a little in terms of raising capital and/or see some renewed pressure on its currency. History shows – time and time again – that capital flows into the emerging markets can reverse quite quickly, particularly at a time when the United States begins to raise rates. Already, in early June, as an example, the country decided not to issue bonds at certain maturities because there was a lack of investor demand at rates the government deemed acceptable.
Source: World Bank, Asia Development Bank AsiaBondsOnline http://asianbondsonline.adb.org.
Longer-term though, we remain optimistic for two important reasons. First, we think that the size of the overall Indonesian capital markets still has significant potential for appreciation. As we show in Exhibit 59, there is still a lot of running room for Indonesia to grow its market capitalization as a percentage of GDP, and given that GDP growth is likely to remain strong over the coming five to seven years, in our view, there is the potential to succeed both ways (i.e., a rising percentage of GDP in a rising GDP environment).
Second, Indonesia's liquid capital markets are actually reflective of the economy, which differentiates it from many of other large EM markets. In the case of a country like Brazil, by comparison, large state-run companies dominate the index, which often leads to lower returns and lack of focus on burgeoning consumer trends. In fact, one can see that in Exhibit 60, Indonesia is actually overweight consumer stocks. In China, by comparison, consumer stocks are less than three percent of the composite index. And in the financial arena, we believe Indonesia actually has well-run banks that are not overly swayed by government influences.
Data as of March 31, 2013. Source: MSCI, Factset.
From almost any vantage point, Indonesia has emerged as a rising global economic power. Importantly, in a world increasingly starved for growth, Indonesia has some substantial macro tailwinds that will continue to drive its GDP higher – and potentially with lower than average volatility. Against this backdrop, industries like education, healthcare/wellness, and transportation/logistics all are expected to grow meaningfully above global GDP for the next five to 10 years and represent interesting long-term investment opportunities for both public and private investors.
However, the next ten years may not be as easy as the past ten, and there is increasing risk that Indonesia missteps, similar to what we have seen recently in other emerging markets like China, India and Brazil. In many instances, it is poor decision-making at the government level – often to curry favor with certain private sector influences – that may slow economic growth and earnings trajectories. In particular, if the country continues to run with strong growth using a twin deficit strategy, then we believe the currency will need to adjust downward, which could add pressure to an already high inflation backdrop. And given that the U.S. may be closer to ending its powerful run of Quantitative Easing, there is now greater implied risk in both the funding and currency markets than there has been for the past several years.
Indonesia should also ensure that GDP-per-capita, which is currently around $3,600, continues to increase at the substantial rate we and others are forecasting (Exhibit 22). To do so however, it immediately needs to make the necessary investments in infrastructure and education that keep productivity above wage growth. In addition, it needs to work even harder to effectively transition the economy into high value-added industries and services in the formal economy from agriculture and other parts of the informal economy. If it can do these things, then this country could represent one of the more compelling opportunities in the global capital markets over the next five to seven years.
1	Data as at March 6, 2013. Source: Badan Pusat Statistik.
2	Data as at May 31, 2013. Source: Departemen Keuangan, Biro Pusat Statistik, IMFWEO, Haver Analytics.
4	Data as at May 31, 2013. Source: MSCI, Factset.
5	Data as at December 31, 2012. Source: Biro Pusat Statistik, Instituto Brasileiro de Geografia e Estatística, Haver Analytics, KKR GMAA calculation.
8	Data as at May 6, 2013. Source: Bloomberg.
9	Data as at March 31, 2013. Source: Biro Pusat Statistik.
10	Source: JPMorgan "Indonesia Retailers: Organizing the shelf, filling the shopping basket" dated March 10, 2013, Euromonitor.
11	Data as at May 29, 2013. Source: Instituto Brasileiro de Geografia e Estatística, Central Statistics Office, India, Haver Analytics.
12	Data as at May 11, 2011. Source: Morgan Stanley Research, "Indonesia Infrastructure: A US$250bn Opportunity" dated May 11, 2011 by Deyi Tan. e = Morgan Stanley Research estimates; f = Morgan Stanley Research forecasts.
14	Data as at March 31, 2013. Source: IMF, Haver Analytics.
15	Retail prices for gasoline and diesel to be hiked from Rp4,500/litre to Rp6,500/litre and Rp5,500/litre, respectively. This represents increases of 44% and 22%. Source: Morgan Stanley "Indonesia Economics: Retail Fuel Price Hike – What If?" by Deyi Tan dated May 23, 2013.