Indonesia's Rich List

With pending recessions throughout the world and economic hardships facing many people, it is with that in mind that I make this post. The most recent edition of Globe Asia, June 2008, is a Special Edition focusing on Indonesia's 150 richest people.

The net wealth of the 150 richest has risen from USD 46.6 billion to USD 69.3 billion with an average wealth rising from USD 311 million to USD 488 million and the average age of the list has risen from 43 to 44.

The most obscene, yes obscene, mover on the list is the now Coordinating Minister of Peoples' Welfare, one Aburizal Bakrie, who has seen his family's wealth jump from a meagre USD 1.05 billion to a much more staggering figure of USD 9.2 billion. Much of this is the result of growth in the energy sector and the demand for commodities. Yet, it is worth noting that he also has extensive interests in property and telecommunications. Why is this obscene? He is the Coordinating Minister of Peoples' Welfare and his welfare is so much better than everyone else's. I do not begrudge rewards for people who work hard and I am sure that he makes his contributions to charity and the like.

Nevertheless, to see such a huge jump in wealth while the people of Sidoarjo continue to be shuffled about from one place to another and never being paid the compensation that they are due for the catastrophe that is the mud flow, seems to me to be just plain wrong. By most accounts one of the Bakrie family companies is responsible and the Presidential Regulation seems to suggest that the Bakrie family company is to blame and has apportioned blame to them (whether a Presidential Regulation can do this is a different argument for a different post). Yet, it seems that the Bakrie's are having trouble meeting the compensation payment schedules as mandated under the Regulation.

I have to say this is obscene because the man and his family are making their wealth predominantly exploiting Indonesian resources, natural and human, yet despite assurances to the contrary, do not seem to be able to make reparations to those that have suffered in the Bakrie Family's pursuit for cash!

The other notable entry for my mind on this list is Hutomo Mandala Putra, or Tommy Soeharto, at No. 61 with a net worth of USD 253 million. This is not bad for a fella who is allegedly corrupt, who is a convicted felon as a result of his ordering the assassination of a Supreme Court judge hearing one of his cases, and failed rally driver (don't know why the last one is important in terms of wealth but what the hey). If there is anything positive to say about the Soeharto children it is that the rich list clearly highlights they are no longer holders of influence and riches like they once were. However, maybe all the wealth is still stashed away overseas in secret bank accounts -- my guess is that the family will always be comfortably filthy rich!

There will be more to follow on this rich list and what it means as I see it (not that any of you care how I see it -- it's my blog so I can do what I want, right?)

Campus Asia

Campus Asia is a magazine from the Globe Media stable and is published by the Universitas Pelita Harapan (UPH) but it could also be titled "UPH Love Fest" or "What Makes UPH Indonesia's Best University?" or "Christian Education the Riady Way". There is not a lot about Asia! There are a few articles here and there about other Indonesian universities but only in support of a quite obvious agenda. I should add here that I am not so concerned about the agenda in this particular edition "National Education Reform" as this is something I am keen to see happen as well.

However, I do have a little bit of an issue with the reprinting of the recent Globe Asia's Guide to Indonesian Universities as this agenda is one where a clear statement of disclosure is needed as the rankings were done not on external factors or by an external agency but by Globe Asia which is part of the Riady family empire as is UPH. The piece ends with a statement to the effect that not everyone will agree with the rankings but that the factors used to rank will withstand scrutiny; "yeah, even if I do say so myself!"

UPH is ranked 2nd behind Universitas Indonesia (UI) and above Universitas Gajah Mada (UGM) and then a considerable distance above other perennial favourites in Indonesia like the Bandung Institute of Technology, Trisakti, Tarumanagara, Universitas Padjajaran, Universitas Atma Jaya, Universitas Parahyangan, Universitas Airlangga, and many others.

The real treat in these ranking systems is the skewing of them to incorporate holistic approaches and campus dynamism which UPH seems to excel at compared to other universities. A careful reading of the factors and the scores highlights that UPH is already Indonesia's best university. But it would seem that in order to make this look like a serious attempt at ranking Indonesia's universities there has been a section "Impact to Society" (I would have thought impact "on" society, but whatever) added. If this was not added then UPH would have crushed UI as Indonesia's best university by a total of 32 points. However, UI redeemed itself by outscoring UPH on things like 'influence on society', 'employability', and 'legacy and history'.

The rankings give an edge to universities with new facilities and to institutions that have lots of facilities. When one considers the amount of money being thrown at (invested) in UPH it is hardly surprising that it out ranks all comers in this category. The other category that UPH does well in is the international faculty rankings. This is also a result of a lot of money being spent on getting the faculty here in the first place. But hey, if you have the money then why not?

The reality is that if the Riady family sees this dream to fruition then it may well one day be Indonesia's best university and quite probably by a very wide margin unless some other rich people decide to invest in education in the way the Riady's have. But the claim to being Indonesia's second best university in 2008 is a little premature. If a more relevant and appropriate weighting was given to the holistic factors then UPH would rank much further down the list. It is worth noting that in most other university ranking systems the facilities component is weighted at about half of what it is in the Globe Asia rankings.

This post is not an attempt to discredit UPH or the education your kids might get if you can afford to send them there or they are lucky enough to get a scholarship or something, but rather it is an attempt to highlight a blatant conflict of interest and a classic example of self-promotion. I guess the Riady family did not get as wealthy as it did without a little bit of self-promotion but this is not the point. If you are going to post a university rankings list which you are promoting as authoritative then you should disclose that the rankings are something that you have come up with yourself!

My question is how do you say you are helping people to make an informed decision about university education when you are not being forthright about the underpinnings of those very rankings you promote. Nevertheless, even with the disclosure I would still find the rankings to be an anomaly to the real rankings that have been garnered by Indonesian universities under other ranking systems.

UPH and the University Ranking System

The simple question that a recent ranking of Indonesia's universities in a recent issue of Globe Asia Magazine raises is Universitas Pelita Harapan (Pelita Harapan University / UPH) really the second best public or private university in Indonesia?

This is a more interesting question when one considers that the Globe Asia Magazine is part of the once again burgeoning Lippo Group which is the conglomerate established by the Riady family (perhaps in another post I will write on the Clinton / Arkansas connections) and which also just happens to be the family responsible for the establishment and development of UPH.

There is an obvious potential conflict of interest here and the cynics among us might even write the rankings off as a brazen marketing ploy to attract more high fee-paying students to the campus with the illusion of greatness.

To be fair to UPH, it will eventually become one of Indonesia's premier universities, if not the premier university in Indonesia, particularly if the Riady family continue to invest heavily in it. I have had the good fortune of going and checking out their facilities, particularly the Faculty of Law. The library is already an imposing entity and one that many of Indonesia's more established universities should be envious of, facilities wise.

However, a university when it is all said and done is as much about the academic staff that work there and the quality of the research that they produce. The rankings gave a much-reduced weighting to these key indicators than it did to facilities. For example facilities were weighted at 16% with staff and research weighted at a mere 9% and 7%. On these fronts a number of other Indonesian universities would surely rank higher than UPH at this stage of UPH's development.

The fact that UPH out-ranked some of Indonesia's more established and highly regarded universities such as Universitas Gadjah Mada (UGM), Institut Teknologi Bandung (ITB), Atma Jaya, and Universitas Parahyangan (Unpar) was surprising. Perhaps what was most surprising was that the ranking is probably a little premature and unwarranted at this point in time.

Education is a business and good reviews are important to attracting the best and brightest. In simple economic terms this was an exercise in self-promotion. Some will be critical of the method employed by the Lippo Group to promote UPH. However, as a promotional tool is has worked, because people are talking about university education in Indonesia in general and specific terms. And, this is a good thing!

But never underestimate the consumer and when you have to pay big money for a university education you become a much more cost-conscious consumer. A good review is not the be all to end all of a decision, give consumers of higher education the benefit of doubt here that they are a little more discerning than reading a good review as being reason enough to throw their hard-earned cash at UPH for an education.