Projects & Initiatives



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 (A Working Paper -- Rashad 12.21.12) 

1. BACKGROUND

The "new" SESI was established at the New Zealand World Congress in 2010. The first task, 
given to it by Congress, was to compile a review of Bapak's advice and guidance concerning 
Subud enterprises. This task was completed in 2011. The document was edited by Stuart 
Cooke. We summarized the findings as follows: 
1. Through enterprises we can worship God in our work. 
2. Our work in the world, if it is in accordance with our nature, is our enterprise. 
3. If we own a business that is an enterprise of a Subud member. 
4. A Subud Enterprise is a corporation that is endorsed by Subud, a majority of its stock is 
collectively owned by Subud members, and it contributes 15–25% or more of its profits to 
Subud. 
5. The mission of Subud to bring peace and harmony to humankind through the latihan kejiwaan 
will only be achieved when large Subud Enterprises and the significant social projects they 
finance are well established across the globe. 
6. Subud Enterprises will create the conditions where helpers and committees can do whatever 
they need to do and travel whenever they want to; where every member can go to latihan, 
meetings and congresses; where everywhere in the world there are large latihan halls with 
accommodations, Subud-sponsored schools, Subud clinics, hospitals and homes for the aged. 
7. Part of the brief of the helper/committee dewans (councils) – center, regional, national, zonal, 
and international as well as our Affiliates and Wing organizations within their respective fields – 
is to spur the development of Subud Enterprises by providing leadership. 
8. SES and SESI are tasked with helping to provide experts for feasibility studies and to review 
the studies. 
9. If a plan is approved, SES will recommend that the committee concerned assist the 
Enterprise by encouraging members to invest (as allowed by law) and to support the Enterprise 
in general. 
10. SES will help with financing until a new Subud World Bank comes into being. 
11. One or more of the SES experts who advised it, or other experts at the business’s choosing, 
will be appointed to a Supervisory Board to ensure that the Enterprise meets its goals and 
obligations to its stakeholders and to Subud. 
 

2. SESI'S ROLE & STRATEGY

We utilized these findings to consolidate our strategic  plans for SESI as follows: 

A. Rejuvenate Bapak's vision concerning the meaning and importance of Subud Enterprises 
across our whole Association. 
1.  Agree that we cannot fund all our Association's activities through relying entirely on 
donations from our somewhat limited membership. This leads to a kind of "competition" for 
scarce resources. For example we may receive the need to engage in humanitarian projects 
but, at the same time, do we have even modestly adequate funds for helper travel, for 
decent Subud houses and so on? 
2.  In addition, if Subud is to grow and expand we need to demonstrate the workings of the 
latihan in the world through establishing significant projects such as schools, homes for the 
elderly and hospitals. This is the way that the existence of the latihan and of Subud in the 
world will become known. It may be said that Bapak saw these projects not only as 
humanitarian projects but also as non-profit or for-profit enterprises that were substantial 
concerns and that can demonstrate the working of the latihan in the world through the 
members who were engaged in them. 
3.  Agree that these things cannot be accomplished if we, each of us, act independently of each 
other in our outer lives. We need to act together, in concert; to express the collective nature 
of the latihan at work in the outer world around us. In this way we may, also, better 
understand the meaning and importance of harmony in human endeavor and mutual effort, 
and this need is a fundamental expression of the purpose of our Association. 
4.  Our Affiliates/ Wings are formed to help focus our individual membership who have the 
talents and skills to undertake these collective efforts in each of the fields the Affiliates work 
in; to bring together those members that have the skills and expertise to implement these 
projects. 
5.  Agree that the above can only be implemented through very substantial income flowing into 
Subud (including its Affiliates) from Subud Enterprises and so we will need to build large-scale enterprises
dedicated to providing these funds while giving the shareholders/investors in them reasonable returns
on their investments.  
 
B. Subud Bank. In order to implement this vision to explore the practicalities of establishing 
some form of Subud World Bank or appropriate financial institution to support enterprise 
developments (as was recommended and implemented by Bapak himself).  
 
C. Understand the Significant  Lesson Learned. Appreciate that one important lesson 
learned from the failures of the past was that we were unable to effectively implement Bapak's 
guidance to establish really strong Supervisory/ Oversight and Support Boards/ Groups of 
External Experts to help develop and guide the major enterprises we established, particularly to 
foresee and forestall difficulties before they arise.  
 
D. Understand what Constitutes a Subud Enterprise. 
1.  A Subud Enterprise may be an International, Zonal, National, Regional or Center Enterprise. 
     Clearly such an enterprise, on the International level, would best be a substantial enterprise 
     supported by the worldwide Subud community -- such as the S.Widjojo and Bank Susila 
     Bakti projects that Bapak started. An enterprise at the Center level would, necessarily, be 
     relatively small. 
2.  A form of limited liability company that follows general guidelines established by WSA. 
3.  A  Majority  of  the  shares  are  owned  by  many  Subud  shareholders  at  International  and 
National levels and by  a significant proportion of members of any group at the Center level. 
It  is  this  issue  that  distinguishes  a  Subud  Enterprise,  as  a  collective  Subud  effort, from  the 
enterprises started by individual Subud members as their own private businesses. 
4.  An Executive Management is appointed by the shareholders.  
5.  Binding  committments  by  Subud  shareholders  to  donate  at  least  15-25%  of  shares  or 
dividend payments to Subud, or a similar sum contributed as a percentage of revenues. 
6.  An  Oversight  /  Supervisory  Board  to  be  established  and  to  include  one  or  more  members 
nominated by Subud. 

 E. Roles & Responsibilities. Understand the roles and responsibilities of our Association itself; 
its various Committees Affiliates/ Wings; Subud entrepreneurs, SESI and National SES Bodies 
in the formation of Subud Enterprises. 
1.  Our Subud Experts -- Clearly the actual management for developing and managing Subud 
Enterprises must be placed in the hands of those members who have the proven 
experience, expertise and skills to undertake them. 
2.  Our Committees on all levels -- We cannot expect our Subud Committees to have the 
necessary skills to create or manage business enterprises, but their role is crucial in 
motivating  those members who have the time and capacity to establish Subud Enterprises, 
to understand the crucial need for them, and to facilitate the coming together of these 
experts into viable Working Groups. At the same time Subud Committees can actively 
promote the importance of supporting such enterprises within the respective Subud 
community it serves.  
3.  Our Affiliates/ Wings -- Generally our Association's focal point for providing support to the 
development of business enterprises  is SESI internationally and SES bodies appointed 
nationally. However when we come to consider Bapak's advice and guidance to establish 
entities such as schools, hospitals and homes for the elderly these do not have to be non-profit activities
but can also be for-profit concerns. However the technical skills for creating 
and managing such entities may lie more within the skill sets available to our other Affiliates 
than to SESI. In these cases the Subud Enterprises may be supported by any Affiliate or, if 
necessary through appropriate partnerships between any Affiliate and SESI. 
4.  SESI and SES Bodies -- These are the people appointed at the International and National 
levels to provide the technical support our Committees need, as outlined above in respect to 
the establishment of business enterprises. Their task, whether on the international or 
national levels, is to ensure that the Working Groups appointed have the necessary 
competencies to undertake the projects they propose and that the projects, themselves, are 
properly managed. In addition to support the establishment of appropriate forms of 
Supervisory or Oversight Boards of independent experts to oversee them, to make sure they 
meet their obligations to Subud, their investors and other stakeholders.  In addition, to liaise 
between Subud Enterprises and  the Association to agree on the amount of profit that the 
enterprise will commit to share with Subud, either in the form of donated shares or an 
agreement to contribute a percentage of  profits or dividend payments; agree to whom these 
payments should be made (a Center or National Committee; WSA; MSF; an Affiliate 
including SESI or SES) and the appropriate form these agreed commitments will legally 
take. At this time SESI assumes that this matter should be determined through agreements 
made between the respective enterprises and MSF.    
 
3. WORKPLAN 2011/2012 
 
SESI developed a work plan and budget for 2011 and 2012 and these activities were approved 
by the WSC in both years as well as by WSA (SESI is established as a unit of the WSA 
Executive at this time).  
 
In broad terms the original strategy was to test out the practicalities and viability of establishing  
a Virtual Micro-Finance institution, with SDIA, to support enterprise developments, but after 
considerable discussion this approach was found to be impractical. At the 2011 WSC meeting 
the process was changed to a concentration on enterprise developments in Kalimantan and to 
establish some form of financial institution (FINCO) to support these developments. After 
discussions with the Indonesian authorities it was evident that it would be costly and time 
consuming to establish a formal bank or financial institution and it was decided, and agreed at 
the 2012 WSC meeting, to  establish a development company that would include financial 
services for enterprises (KARMANNA). 
 
The following SESI Work Plan was presented, and approved, by WSC as at July 2012. 
 
Project 1 – Improve financial position 
  • $20,000 donation from an enterprise in Indonesia secures SESI’s financial needs for 2010-2013. 
  • Not taking any funds from WSA. 
  • Hired a paid Subud executive in Jakarta. 
Project 2 – Karmanna 
 
Resolution of 2011 WSC meeting: SESI to establish a financial institution for Subud 
Enterprise development, initially in Kalimantan. 
  • PT Karya Manca Warna “KARMANNA” registered under Foreign Investment Law in Indonesia. 
  • “Enterprise Development  Company” – providing consultancy services, feasibility studies, financing services etc 
  • Exploring the feasibility of Palm Oil and Mining projects in Kalimantan \
  • Feasibility study approval by  SESI & WSA  Executive 
  • Requests WSC to nominate a Supervisory Board. 
  • Seeking additional Equity capital from Subud members 
 
Project 3 – SIA 
  •   SESI worked with WSA to establish a Subud Shareholders communications function with Kalimantan Gold Corporation (KGC).  
  •   Good working relationships established between Sinar Investors’ Association (SIA) and KGC Board and management 
  •   SIA represented Subud members at KGC AGM Vancouver, May 2012 
Project 4 – Web Site development
  •   Phase 1 up and running. 
  • Phase 2 under development by Samson Rogers. 
  • Enhanced social networking features. 
  • A register of members’ enterprises and technical resources. 
  • Virtual “Market Places” where entrepreneurs can share knowledge and experiences.  
  • Connecting entrepreneurs with technical support and funding. 
Project 5 – Supporting Zonal Reps and National SES Reps 
  •   Formation of Working Groups and Feasibility studies for National Enterprises. 
  • Establishing Oversight or Supervisory Boards for Subud Enterprises using Subud  members’ funds. 
  • Appropriate support to the enterprises of individual members. 
  • Developing databases and websites. 
Project 6 – Communications 
  •   Support for WSA databases (Congress Resolution 11.6.14 plus 10.3). 
  • Work together with WSA Exec, Wings, and National Committees to improve our data bases.   
 
Project 7 -- Centers and Hotels Website 
  •   Congress resolution 7.4.10: “That WSA provide information to Member Countries about the various models of ownership, good governance and uses of Subud premises worldwide, explaining their advantages and disadvantages.”  
  • Team now being formed to create a website for Subud Centers, Hotels, and experts to share information. 
 
In addition the meeting: 
  •   Accepted the resignation of Ruslan as SESI coordinator and approved an  expansion of the SESI Board, and the appointment of a new Coordinator. 
  • Asked SESI to appoint a team that would include a member of the Council to investigate the pros and cons of establishing SESI as a legal body. It presently operates as a functioning part of the WSA Executive. 

4.  STRATEGY AND WORK PLAN FOR 2013 AND 2014 (to the World Congress) 
1. To continue to expand the development of Kalimantan activities. 
Work Plan and Targets to be achieved by Congress 

  •   Continue to liaise, through Ruslan Morris, with Kalimantan enterprise developments. 
  • At least three formal International Subud Enterprises are established in Kalimantan under Karmanna -- possibly palm oil plantation, forestry and one other. 
  • Karmanna shall be capable of earning profits for its shareholders by 2014 thus contributing to WSA funds with further inputs from the enterprises Karmanna develops to begin to flow in shortly thereafter. 
  • SESI support will include the review of feasibility studies for each enterprise; confirm that the enterprise meets required specifications to promote investments to the Subud membership (and in line with legal practice) and gain WSA permission to do so; liaison to establish a technically proficient Supervisory Board to ensure the enterprise meets its Subud and investor goals, and its obligations to all stakeholders; liaison concerning agreements with MSF on disbursements of funds to Subud entities, as needed/ requested. 
Congress Activities 
  •   Forums for potential investors and interested partners to participate in these increased Kalimantan activities --  expand those already established and to plan new ones -- that these be opened up to as a broad a segment of the Subud membership as possible to supply technical inputs and investments. 
  • Workshop as liaisons with other Kalimantan development parties and partners including Support Groups and enterprises including KGC and SIA. 
  • Forums to promote job opportunities in the above enterprises. 
2. To Expand the SESI Remit to Support the Development of  Enterprises beyond 
Kalimantan. 

Work Plan and Targets by Congress 

Link to WSA Fundraising Initiative: SESI will expand its activities to liaise with the WSA 
Fundraising initiative through Stuart Cooke and, through this mechanism, to develop stronger 
relationships with the major Subud National Committees and SES National bodies to encourage 
the development of National and Center Enterprises in order that they may achieve increased 
and sustainable revenue flows to better serve the membership and support the establishment of 
schools, hospitals and homes for the elderly etc (whether for-profit or non-profit). 

Link to WSA: At the same time SESI will  work with the WSA Executive to actively encourage 
and support the development of International and Zonal Enterprises also through the active 
support of respective International, Zonal, National and SES bodies. 

Setting Targets: Strategically SESI does not expect that the above activities will result in the 
development of a very significant number of such enterprises up to the next World Congress, 
and the establishment of targets for such activities would be premature. All the same a number 
of National Committees are already committed to explore options in respect to the development 
of National Subud Enterprises. The role of SESI will be to encourage these efforts, and support 
them through provision of advice and guidance as needed and requested. 

The Need for a New International Financial Institution: Strategically it may be expected that 
these efforts will mature into a solid platform for advancement at the next World Congress and 
would be significantly supported through a WSA commitment to establish an entity similar to 
KARMANNA (or to expand the KARMANNA remit beyond Kalimantan) or to establish a more 
formal Financial Institution according to practicalities. 
  •   At least two International, Zonal or National Enterprises established (beyond Kalimantan) or are in advanced Working Group stages. 
  • SESI to establish an Advisory Group to create a format and concept for an international development and/or financial services enterprise subject to approval at the 2013 WSC meeting. 
  • SESI will produce a range of materials to advise and guide the formation of National and Center Enterprises. 
  • SESI, or an appointed representative will make presentations to all Zonal meetings and National Congresses in major countries over 2013 and 2014 to Congress. The WSA is asked to actively support these activities. 
  • SESI will work to help complete the new Centers and Hotels Web Site that will include issues of the development of Subud properties linked to enterprises and the development of enterprises, in general, at the Center level. 
 
Congress Activities 
 
  •   SESI will present to Congress at plenary its objectives and work plans, and encourage all Delegates to attend a series of presentations and workshops on the development of International, Zonal, National and Center enterprises; on sharing lessons learned with those already engaged, and to establish targets for the next four years. 
  • SESI, with MSF, will manage a specific Workshop on the development of an International Financial Institution. 
  • Should any Subud Enterprises (beyond Kalimantan) already be approved for fundraising to the membership SESI will support fundraising activities at the Congress in appropriate ways. 
  • SESI will help establish an SESI and enterprises display area both for Subud Enterprises and the enterprises of Subud members. 
 
3. The SESI Web Site and Support to Individual Members' Enterprises. 
 
SESI will continue to update and expand the services provided through its web site and a yahoo 
list server as well as e-mail communications through the WSA e-mail list.  It has recently 
launched an "Enterprise Market Place" where members' enterprises, particularly smaller 
enterprises, seeking investments or technical support can link to investors and experts. It is 
hoped that this can be developed into a Virtual Financial Institution over time. 
 
Congress Activities 
 
  •   SESI will manage a desk and display area that will help members "join" the web site community and understand how SESI can support the development of personal enterprises. 
  • SESI will develop the data bases of Subud expertise in their web site in collaboration with WSA database developments. 
  • Where SES National Bodies request it SESI will support individual country Workshops at Congress to explore support to members own enterprises as well the development of more major Subud Enterprises. In this way no conflict should be seen to exist between the need to create the larger "collective" enterprises and to support members who wish to start their own private businesses. 
  • SESI will use its web site to promote the various Meetings and Workshop relating to enterprises at the Congress. 
 
4. Links to Other Subud Affiliates. 
 
SESI wishes to continue to explore collaboration with all Affiliates in respect to joint enterprise 
developments -- even where Affiliates are mandated to engage only in non-profit activities. One 
issue is that SESI is being asked to consider its support to for-profit businesses in areas that 
they have yet to develop skills data bases of members who can support projects such as 
schools, hospitals, homes for the elderly and so on, it being assumed that such activities fall 
within the remit of Affiliates other than SESI. In a recent case SESI was asked to support the 
establishment of a potential for-profit school, and SESI is certainly willing to do this, but what we 
could not find is any Affiliate that seems to have such an activity as its primary remit, notably the 
listing of a data base of strategic resources that can be called upon to form groups of technical 
experts in entities that can be either for-profit or non-profit in their operations. 
 
SESI suggests that WSA establishes a small working group to fully understand how our 
Association is best structured to harness all the technical resources within our membership as 
strategic resources to accomplish its aims to establish these kinds of enterprises and to develop 
new non-profit ventures, as well as to create joint ventures between for-profit and non-profit 
entities, as is becoming increasingly common in the world right now. 
 
Congress Activities 
  •   A suggested Work Shop on the above issue attended by all Affiliates and other interested parties may be considered. 
5. To Consider SESI's Institutional Status. 
 
At present SESI is a part of the WSA Executive. Considering the expansion of SESI's activities 
various suggestions have been made to establish SESI as a separate Affiliate or even, as 
Bapak in fact suggested when SESI was established, that it be a for-profit concern with 
"branches" in each country. This issue will be discussed at the 2013 WSC meeting after 
presentation of a working paper on the subject. 
 
Congress Activities 
  •   It is possible that a specific Workshop be held at Congress to finalize any new legal structure for SESI. 
COMMENTS TO: RASHAD POLLARD AT: pollardrr@aol.com -- ALSO, YOU CAN START A 
BLOG ON THE SESI WEB SITE -- http://subudenterprise.com/



SESI Report on Kalimantan Enterprise Developments
August 2012

 


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FEATURED ENTERPRISES

 

By Ruslan Morris, M.A., C.F.A.

 

Bapak’s company, P.T. Karya Manca Warna, is forming new Subud Enterprises in Kalimantan

 

Karmanna’s Legacy

 

Before discussing the new Subud Enterprises, let’s review the legacy of the Karmanna Group of companies.

 

 In 1970 Ruslan Morris emigrated to Indonesia from the USA, and went into business with

 

Muhammad Asikin. They started a trading company and were joined in the partnership (C.V.) by

 

Bapak Mhd Subuh Sumohadiwidjojo, Haryono Sumohadiwidjojo, and Achmad Bachtiar. Bapak

 

gave the name C.V. Karya Manca Warna, or “Karmanna” for short. Karya means Work, Manca

 

means Many, and Warna means Colors.

 

In 1977 P.T. Karya Manca Warna, a limited liability company, was formed with Bapak and Muhammad Asikin as the shareholders. Bapak was the Komisaris (Supervisor) and Asikin was the Director. The previous partnership CV Karya Manca Warna was closed in 1978.

 

Karmanna was managed by Ruslan Morris and Mhd Asikin. The main fields of business were offset printing and direct marketing, albeit on a small scale. The company was consistently profitable and faithfully paid an honorarium to Bapak every month.

 

On 14 January 1983, Bapak and Asikin sold their shares to Rahaju Koosman (Ruslan’s wife) and her father, and retired from the company. Karmanna focused on direct marketing and continued to thrive until the monetary crisis crippled the Indonesian economy in 1997. It has been largely inactive since then.

 

World Subud Council tells SESI to develop Enterprises in Kalimantan

 

The WSC meeting in 2011 resolved:

 

“That the WSC empower SESI to establish an investment and financial services company to support the growth of Subud Enterprises and enterprises of Subud members with reference to enterprises particularly in Kalimantan. If determined to be feasible by SESI, the WSA Executive and the WSA Chair, then SESI will inform Subud members of the investment opportunities in the resultant Subud Enterprise.”

 

Karmanna Restructured to fill the need

 

P.T. Karya Manca Warna, Bapak’s company, was restructured as an Enterprise Development Company providing consultancy services, feasibility studies, Management and Financial Services, etc. It is now legally permitted to have foreign shareholders. $50,000 seed capital was raised from a small group of Subud members. Subud members participating or working in Karmanna are Ruslan Morris, Hamid daSilva, Rahaju Koosman, Mursalin New, and Lukman Usman.

 

P.T. Karya Manca Warna’s (KMW) Activities

 

Karmanna is renting a fully staffed serviced office in South Jakarta, near Wisma Subud, Cilandak. After researching opportunities in Indonesia and in Kalimantan, we the Karmanna team have decided to initially focus on the palm oil plantation industry, a field that Bapak advocated. We have put together a financial feasibility study, a project proposal, and have uncovered 5 potential estate areas in Central Kalimantan. Our friends at KGC introduced us to their attorney, a very senior Dayak leader from Central Kalimantan, and we have engaged him as our legal counsel and advisor.

 

P.T. Perkebunan Sinar Mulia (PSM)

 

To acquire property and a license for palm oil, we need a dedicated company, so Karmanna set up P.T. PSM for that purpose. PSM is now collecting and examining background documents such as licenses, land titles, rainfall data, etc. In September 2012 Mursalin New and Lukman Usman will conduct preliminary surveys in Kalimantan of 4 potential palm oil areas that have been offered to us. They range in size from 5,000 – 12,000 hectares.

 

P.T. Karya Manca Usaha (KMU)

 

Karmanna has been exploring a joint venture in a sawmill in Central Kalimantan, to produce fully legal sawn timber. Our role would be to provide finance of $220,000, for which we would be entitled to a percentage of the profits. For this KMU has secured a pledge of loan funds from a Subud member. This looks to be a quick yielding project which will support our activities and staff in Kalimantan. (It is also relevant to the palm oil plantation business, as that invariably involves land clearing and often with opportunities for milling of timber.)

 

For this business we would need a general purpose domestic Indonesian trading company – neither KMW nor PSM have the appropriate license. So we are now in the process of setting up another company, P.T. Karya Manca Usaha, which will be properly licensed to undertake a broad range of trading, construction, transport, and industrial activities. This company will also explore opportunities to provide logistic support to KGC. We will soon open an office in Palangka Raya.

 

Karmanna Group

 

We will be referring to KMW as “Karmanna Consult”, and KMU as “Karmanna Trade”. PSM will maintain its own identity for the time being. Each of these companies will donate 20% of its issued shares to MSF or another Subud Institutional shareholder, and will be open to oversight by Subud appointees.

 

People

 

Mursalin will be full time with Karmanna / PSM, stationed in Central Kalimantan. Lukman will also be full time with Karmanna / PSM, in Kalimantan and Jakarta. Ruslan has resigned as Coordinator of SESI and intends to step down as CEO of Club Bali, his hotel company, so that ultimately he can devote full time to Subud Enterprises in Kalimantan. We are building a team of several additional full time employees with timber industry experience, employing Subud members whenever feasible.

 

Your Support

 

We humbly ask for your support, guidance, and prayers that we will work in accordance with

 

God’s Will. If we can do that, we are confident of success. Please join the Karmanna forum on

 

 the SESI web site and tell us what you think and feel. Ruslan Morris, 28 August 2012