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January, 2006
We would like to wish all our readers a happy and we hope a terror free new year. We would like to thank all our readers for your continued support throughout the last year and for the hundreds of complimentary emails we have received. Jan. 19 Jamal and I will take a holiday to Malaysia and Thailand. We plan to travel to Kuala Lumpur, Phuket,
Ko Samui, Bangkok, Pattaya, Penang and then back to KL on Feb 8, from where Jamal will return to Bali. I will travel to Singapore then on to Melbourne, via Darwin. I will return to Bali on Feb. 26. Next month we will feature full coverage of our Malaysian-Thailand trek we 
are sure we will have lots of stories to tell.
Until then, all the best.
Memories of 2005
Welcoming New Year 2005
With Nancy & Dede
With Graham & Wayne - Melb.
With Flash Jack - Malaysia
Luke & Simon
With Wendy & Clive
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Highlights of 2005 cont..
With the Misty Mountain Gang
With the Family
On the "Jungle Railway"
Old China Inn - KL
Trenton & Daughter, Alice
With Melody
Ines & Allan
With Lukman
Returning from Bandung
With Margriet & Nico
With Rob
With Pak Made
Rob the Barman
Jamal knocks-em out
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Christmas in Bali
Christian Bali
Christmas Day is a public holiday in Indonesia the worlds most populous Muslim country, where 85% are Muslim. Christianity is the second largest religion. Indonesia also observes New Year and Good Friday. In Bali, 85% of the population are Hindu, followed by Christian and Muslim. 
Protestant Church in Nusa Dua
Palasari Catholic Church - Bali
Christian missionaries were forbidden to enter Bali during the Dutch administration. The Dutch felt they would upset the Hindi culture, however some did enter and convert some Balinese to Christianity. Following Indonesian Independence in 1945, Christianity grew in Bali. Dominantly Protestant there are now over eighty Congregations in Bali.
Non-Denominational Church - Legian, Bali
Greek Orthodox meet at Mykonos Tavern Jl Laksama
All Christian Churches in Bali held services over the Christmas period under high security.
Christmas service  in Bali
Our Christmas
The KHO Christmas Tree
At the KHO we went to no expense at all to make a modest christmas tree from a branch of the Temora tree in the street, we added some LED lamps which John wired up and some cotton wool from the medical cabinet for fake snow. Jamal wrote his first letter to Santa, and left it beside the tree, along with a small bottle of scotch and 
Christmas cake. Jamal was surprised to find the letter open, the scotch consumed and the cake nibbled on Christmas morning. We suspect Suzi the cat did it!
Saturday lunch time, it was off to Padang Bai to celebrate Christmas. First Dinner then off to Kinky Bar.
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Fire Dancing at the soon to close Kinky Bar (see story next page)
New year in Padang Bai was almost a re-run of Christmas eve, Ines joined us, we first had cocktails on the balcony of our room. Ines supplied a whole heap of goodies from Bali Deli to munch on, smoked mackerel, imported cheese and stuffed olives. We went on to Kerti restaurant, overlooking the harbour and had Champagne before our New Years eve dinner. After we joined the revellers at Kinky Bar on the beach.
Jamal and John at midnight
Ines gets a drunk Aussie
Happy Jamal
Honey Pot - Ines
As you do
Jamal and Rocky
New Year Resolution
Before Photo
Ines' New Year resolution, to go on a diet and loose 15 kg.
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Beach side favourite Warung Karina
Padang Bai: the local government plans to demolish all the temporary shops and restaurants on the beach side of the beach road.
View from the beach
While it is true some of the buildings are ramshackle, to me that is part of the charm of Padang Bai. Many of the small restaurants along the beach side of the road offer excellent food at reasonable prices. Many of the little stores are very neat and sell tourist essentials.
A tidy little essentials shop
New shop area
The Government will make the shop and restaurant owners move to a new complex they are building so far away from the beach the tourists will never even know they exist. The standard size shops are too small for a restaurant or bar.
Legitimate Restaurant
The KHO News was told by locals that they believe the move has been instigated by the hotel and high priced restaurant owners on the legitimate side of the road.
No more cars
New Carpark
All motor traffic will be banned from the beach road, guests will have to leave their car in a carpark and walk "miles" to their hotel.
No More Beach Bars
A great sadness to us is,  the two night time beach bars will be closed and demolished. They have been told to rent a shop in the new area. This is so sad because one of 
the charms of Padang Bai is to be able to sit at night on the beach with the waves lapping and enjoy a drink, music and fire dancing.
Great times at Kinky Bar
The manager of Kinky Bar - Ketut is so sad about the news. He says it is pointless him moving to the new shop area, 
no one will want to come there. he said "I think I'll move to Lombok, all they care about in Bali is money". We have been told soon an international resort hotel will be built at Padang Bai - that will be the end of a place that was "like Bali in the old days" - Now Padang Bai will just become a ghastly commercial tourist area like Kuta, Legian, Ubud and Candi Dasa. 
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Rob & Win's 
Pre-Christmas Party
Christmas celebrations got of to an early start with a Christmas party at Rob & Win's "Misty Mountain". The guest of honour Rob's mum, Joan who came up from Sydney.
Joan, Wiwin's mum & Wiwin
"Misty Mountain" Progress
Wiwin explained to the crowd in Indonesian & Southern German how the house will eventually have a veranda and a terrace all around.
Rob & Jamal admire the stairs
Builder Baker has been working frantically to finish the new stairs before mum Joan's arrival. The building committee decided the greasy, goat fat, bamboo pole may be a bit difficult for her to descend.
Checking the Misty View
Rob's brother Stewart
Pak Made chats with Leo
Jamal entertains the crowd
Andre & Wayan
Wiwin and the family put on a sumptuous feast, featuring sate made from imported Aussie beef.
With Komang and Aswin
Kids being kids
Of course now it is rainy season in Indonesia and "Misty Mountain" has had more than it's fare share.
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In the Sandi Phala Hotel, Jl Pantai Segara, Tuban. Ph 75 3780
During the Christmas season, friend Ines kindly invited Jamal and I to Ma Joly French restaurant facing the ocean at the Sandi Phala Hotel.
Les Coqs
Outside the restaurant, facing the car park are three mounted cocks or roosters, a traditional symbol of French Independence.
On the way to the restaurant is a discrete luxury swimming pool.
The restaurant is a little back from the beach with a pagoda right on the beach for a great sunset view.
Ma Joly from the Beach
We sat in the pagoda area for cocktails, I had a scotch on the rocks, Ines & Jamal a cold beer and Andi a Banana Durian mocktail.
For dinner we moved back into the main dining area, an impressive 
Balinese alang-alang structure. Sadly there is no ceiling ventilation and the area was uncomfortably hot. For entrée Ines and I had Asparagus in filo (A$9), excellent, Jamal had escargot (snails) ($10). For mains we all had Australian Steak Medallion, which was not a medallion at all, but a fillet. (A$20)
The Gang Dining at Ma Joly
With the meal an Australian Penfolds Coonawarra red $42. Overall the restaurant was delightful, only downside, the staff repeatedly harassing us to order food when we were enjoying our cocktails, then the main course came right after the entrée. We felt they couldn't wait for us to leave. The KHO recommends Ma Joly, but a little advice, order your mains after you have had your entree.
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The KHO has been told by Pak Komang the owner of Kerti Bungalows in Padang Bai that sometime in 2006 the Lombok ferry will no longer run from Padang Bai  but from Amed in north-east Bali. For some time there has been many
Lombok Ferry
complaints about the truck traffic through Denpasar enroute from Java to Padang Bai, on to Lombok and to the other eastern islands. The northern road via Singaraja will be upgraded to accommodate the extra traffic. Currently there are around 10 truck and passenger carrying ferries from Padang Bai to Lembar, Lombok. The trip takes 4-5 hours. The current distance from Gilimanuk to Padang Bai is 150 km the now northern route to Amed will be also 150 km, however the distance by sea to Lembar is 70 km and from Amed also 70 km. We are told a new fast ferry will run from Padang Bai to Lombok to accommodate tourists.
Qantas CEO Geoff Dixon has announced their discount carrier Jet Star will go international in 2006, turning the Asia-Pacific region into a battle ground. Jetstar, will be a two-class carrier, and fly to important holiday spots such as Bali, Jakarta, Thailand and Vietnam. Virgin group founder Sir Richard Branson also has his eyes on the Asia-Pacific region if he regaines control of Virgin Blue.
Tourist Arrivals 
still in Decline
Bali: The airport immigration office reports the number of foreign tourist arrivals continues falling after the Oct. bomb from 162,102  in Sep. to only 62,705 in Nov.
Pre-Bomb II, Sept.
arrivals 5,403 per day
Nov 2,090 per day
Australia only 283 per day
Rest of Asia
All of Europe
The highest number of foreign tourist arrivals in Bali was 1.4 M., reached in 2004. Then tourist operators predicted the number would increase to 1.6 M. by 2005, however now less than 1.3 M. are expected. At current figures Bali can expect less than 1 M. visitors in 2006. Tourism spokesman Surakusuma said "The Bali image overseas has to be improved" 
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Local News
Quietest December Ever
Sadly Kuta and Legian are becoming ghost towns. Each night Kuta is lit up like Las Vegas however there are barely any tourists to be seen. Over the Christmas period there were a few domestic tourists from Java but not enough to have any effect on the declining fortunes of the restaurants and bars, one wonders how they can possibly continue to survive, let alone pay the electricity bills, and the staff.
Bored Life Guard - Kuta Beach
While the world and especially Australia rallied to help the Balinese after the first bomb it appears this time round, no one cares too much. Perhaps understandable with all the other disasters around the world we see in the media daily.
It is feared many businesses will not survive this time, this will have a destabilizing effect on the population possibly leading to civil unrest. At this end it is difficult to know what to do, to promote Bali and ask people to return rings hollow, when after recent events, how can we honestly tell anyone Bali is safe. The Australian Government urges people not to come to Bali and the people are following the advise. Bali Airline, Air Paradise was the first causality, immediately reducing the seats from Australia by over 5,000 per week.
Flights MEL- Bali
Since the demise of Air Paradise it is difficult to get to Bali even if you want to. Currently Garuda provide the best direct service with flights on Fridays (GA725) and Sundays (GA719). Feb. fares start at around A$1100 for a 30 day ticket. Qantas offshoot Australian Airlines (AO7867) fly to Bali on Thursdays, Feb. fares start around A$1380 for 30 day ticket. The direct capacity out of Melbourne is only around 460 seats a week. Singapore Airlines are offering deals but via Singapore and taking a minimum of 15 hours, fares around A$1100.
Thousands of Muslims from across Indonesia, the world's most populous Muslim nation, departed mid-December for Saudi Arabia on the annual haj pilgrimage. The haj pilgrimage to the holy sites Mecca and Medina in Saudi Arabia is required of able-bodied Muslims at least once in a lifetime, if they can afford it. Muslims believe the haj is a spiritual journey that cleanses the soul and wipes away sins. 
Huge Airlift-205,000 Pax
A total of 205,000 Indonesian Muslims will perform the haj this year. They will depart from eight embarkment points across the country. For many Indonesians, travelling on the haj is the only foreign trip of their lifetime. 
Garuda Float
The Indonesian Government plans to sell the national carrier Garuda to strategic investors to boost its competitiveness. Minister for State Enterprises Sugiharto, said Garuda was planning a float in 2009 "but we suggest to speed it up so that strategic investors can immediately enter". "It's best to start in 2006 as many investors are interested," Mr Sugiharto said. Garuda is struggling to stay afloat amid rising fuel costs, tighter competition and debt repayments amounting to $A138 m a year. Garuda president Emirsyah Satar said foreign creditors had agreed to restructure the airline's $A670 million debt by rescheduling its annual principal payments.
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Aussie Government
helps Bali Airport
Security check Bali airport
Australia is working with Indonesia to upgrade security at Bali's airport, which is in breach of International Civil Aviation Organization (ICAO) standards on international aviation security. US and Australian airlines are still flying into Denpasar. Transport Minister Warren Truss said we have been aware of the concerns for some time and we are spending $1.3m to help Indonesia.
Fiscal Tax
Indonesian citizens who departs Indonesia by air, must pay a Rp1m (A$130) Fiskal tax. President Susilo has ordered his chief economics minister Boediono to review the policy, to decide if the tax hampers community building in Southeast Asia. "I am not saying that the fiskal would be lifted. But we will look into these complaints,"
Jakarta - Prohibition
Jakarta to had a dry New Year after the Jakarta City Industry and Trade Agency has issued a circular, which forbids the sale of "type B" wine, champagne and "type C" spirits, alcoholic drinks in supermarkets and hypermarkets throughout Jakarta. The agency dug up and invoked a 1997 Presidential Decree on the control and monitoring of alcoholic drink.
Indo Exports up 20%
Indonesia's exports are forecast to increase in value by about 20 percent from US$72 billion in 2004 to US$86 billion this year.
Phuket rejects Bali
Thailand's Phuket Island resort has turned down an offer to become a sister city with Indonesia's famed Bali resort. It is believed the rebuttal was due to security concerns.
Pastika to Jakarta
Bali Police chief Insp. Gen. Made Pastika has taken over the top job at the National Narcotics Agency, which 
has been held by Gen. Sutanto. Pastika, who Time magazine named the Asian newsmaker of the year and also was awarded the Order of Australia for his role in solving the Bali bombings in 2002. 
AIDS Rally in Surabaya
The United Nations Program on HIV/AIDS (UNAIDS) has warned that Indonesia is on the brink of an AIDS epidemic. Speaking on World AIDS Day, Vice President Jusuf Kalla has urged men to use condoms during casual sex in a bid to help curb the spread of HIV/AIDS in the country. 
Low-cost carrier AirAsia are flying to two new destinations in 
Indonesia with a daily service to Balikpapan and to Solo starting Dec. 27, from Kuala Lumpur. 
Student Pledge
A high school student shows a student's pledge sticker during a gathering in Jakarta. More than 250 high school students from across Jakarta and representatives from Makassar, South Sulawesi, and Padang, West Sumatra at the Proclamation Monument to swear a pledge to become the clean and transparent generation. Many students believe that the most effective way to eradicate corruption would be to get rid of the older generation and start afresh with the new generation.
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Muslims Against Terror
Former president Abdurrahman "Gus Dur" Wahid led thousands of Muslims in a march through the capital on Sun Dec 18 to promote "Islam for Peace" and 
counter militant ideas. Participants condemned militants who justified their violent actions by invoking the name of Islam. "The true face of Islam is one of a religion that promotes peace." said Gus Dur.
100's of Indos Arrested
Hundreds of Indonesians were arrested in 2005 for fishing illegally in Australian waters, Australia's fisheries minister, Ian McDonald said at the launch of a A$300,000 campaign to raise awareness about maritime boundaries.
Tougher ID's
Kartu Tanda Penduduk (KTP)
In move to curb the widespread abuse of KTP, identity cards and fight terrorism the Indonesian Government is reportedly moving towards a Single Identification Number (SIN) system – a number that would be used in the issuance of all official identity cards, driver's license and passports.
SBY Orders Clean-up
Immigration Bali Airport
President Susilo Bambang Yudhoyono (SBY) has put immigration on official notice 
"to stop embarrassing Indonesia," and issued orders to the Justice and Human Rights Ministry to immediately clean up the immigration department. 
120 Pilots Leave Garuda
Ailing national carrier Garuda
Indonesia is undergoing a steady loss of pilots to competitors who can
offer better salary and work conditions. At least 120 have left since 2000. Garuda currently employs around 580 pilots. At the end of Dec. 2004 Garuda posted a net loss of Rp 811 billion (A$108 M),
Interest rate 14%
Indonesia's economy may have to brace for interest rates of 14 percent in the first half of 2006 as the central bank continues its monetary policies designed to tame the current 18% inflation rate.
Indonesian Jobless
Indonesia will likely be burdened by an 'unemployment explosion' early next year if the government does not give serious attention to the problem. Currently there are around 11.9m unemployed, if the problem addressed, the figures could rise to 12.6m next year. 
Rice for Plane Deal
Indonesia has agreed to import 300,000 tonnes of Thai rice in exchange for an Indonesian-made CASA 235 - A$22 million aircraft. This is the second time Indonesia have made a plane for rice deal.
Gas Monopoly Ends
Malaysia's Petronas oil company will spend around Rp 4.30 trillion (A$566 million) to set up 557 gas stations in Indonesia by 2011. The Indonesian government is now allowing foreign companies to operate gas stations across the country. Previously, only state-owned oil and gas company PT Pertamina could do so.
Petronas Headquarters - KL
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During the month we received an email from friend Herman in Jakarta. "........... by the way, Nini wants to know how to make nice Mashed Potatoes. She knows that you can make a nice one. All best regards to Jamal. Cheers, Herman."
 Well Herman, here we go.......
Peel 4 potatoes, cut in half. put in a saucepan with 1 flat tablespoon of salt. Bring the water to the boil and turn down to simmer, cook potatoes until you can stick a skewer or fork through them and they are soft inside. About 15 minutes. For more flavour steam the potatoes with their skins still on and peel later.
When cooked drain all the water. While still hot, mash potatoes with a potato masher, or you can do it with a strong fork or a wooden spoon, mash until there are no lumps. Add 1 heaped tablespoon of butter or margarine and a 1/2 teaspoon of salt. (you can add finely grated onion and or crushed garlic - not too much) Mix together with a wooden spoon until well mixed.
Add 1/3 cup of milk, mix again. Stir very fast (whisk). The more air you beat in, the whiter and fluffier they become. Return the saucepan to the stove and whisk more 
while heating, add a little more milk if needed. Mix until you have the right consistency. The Mashed Potato should not be runny and should stand up. Serve with finely chopped parsley and ground pepper on top, you could also add grated cheese or Parmesan Cheese.
YUM! - Now couldn't you almost 
  lick the screen?
Australian Spies?
ABC Radio: Indonesia has sent a small detachment of troops to a remote island to secure it against an invasion of Australian surfers and to monitor their activities. 
Seventeen Indonesian soldiers have been sent to Mengkudu Island, one of almost 700 small, largely uninhabited islands which lie between Bali and West Timor. Indonesia's Antara newsagency quotes Colonel APJ Noch Bola, the military commander in the province of East Nusa Tengarra, as saying the Australians came to the island to surf, but one of them had married the daughter of the tribal chief. He says the group had now put down roots and built five houses. They had been excluding local people from their compound and he says this is unacceptable because the island belongs to Indonesia, not Australia. Local community leaders have accused the Australians of being intelligence agents.
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KHO Price Survey
Indonesia is currently suffering 18% inflation, recently many prices have risen, here is the result of our latest consumer price survey. 
Item Quan
Beef Steak local 1kg
Minced Steak 1kg
Frankfurt Sausage 1kg
Whole Chicken 1kg
Chicken Livers 1kg
Bacon 250gm
French Butter 200gm
Meadow Lea Marg. 500gm
Item Quan
Eggs 1doz
Sugar 1kg
Skippy Peanut Butter 500gm
Tomato Sauce 340ml
Potatoes 1kg
Carrots 1kg
Green Beans 1kg
Broccoli 1kg
Cauliflower 1kg
Tomatoes 1kg
Button Mushroom 1kg
Parsley Bunch
Rice 1kg
Indomie Inst. Noodles Pak
Item Quan
Earl Grey Tea 10x2gm
Coffee Local Ground 1kg
Pura Full Cream Milk 1ltr
Coca Cola bottle 1.5ltr
Pepsodent T' Paste 120gm
Dishwash Liguid Det 400ml
Rinso 1kg
Plain Flour 1kg
Cooking Oil 1kg
Spaghetti 1kg
Lux Soap 100gm
Marlboro Carton 200
House Tax (small) 1 yr
DenPost Bali Newspaper 1mth
Net Provider 15h
Mains Water 1mth
Electricity  460Kw 1mth
Telephone 1mth
Servant 1mth
Medium 3 b'room house
Small 2 b'room house
45k up
Medium 3 b'room house
70k up
90k up
Honda Supra motor bike
Suzuki Jeep 2WD
Daihatsu Taruna Car
Mercedies C270 CDI
Air Conditioner from
Daihatsu Taruna Car
Hair Cut Salon from
Hair Cut Local Barber
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 The IPTN built CN-235-100 
Ex-President Habibie to get his old job back
It has been announced in Jakarta that former Indonesian President BJ Habibie will return to his old job running the 
Indonesian Aerospace Program, following a request from President Susilo Bambang Yudhoyono and vice-President Jusuf Kalla to take over the running and rebuilding of the state owned aeroplane manufacturing company PT Dirgantara Indonesia (PTDI) formally Industri Persawat Terbung Nurtanio (IPTN), at the airport Bandung, Jamal's hometown.
Jamal worked at IPTN Bandung factory for for 6 months in 1984 as an office boy. Jamal said "At that time it was so exciting, every boy in Indonesia wanted to work
on the Indonesian Space program"
Bandung Airport, the PTDI formally IPTN  factory (right)
In 1976 President Soeharto was in the grips of a technological revolution, he had just ordered Indonesia's first communications satellite. Which would make 
Palapa A
Indonesia the first country outside the US to possess one. Soeharto could the future was in Aerospace technology and Indonesia had
no expertise in this area. The only person Soeharto knew with any aeronautical knowledge was one Dr Bacharuddin Jusuf Habibie a professor of aeronautics, who had left Indonesia long ago to work in Germany. Soeharto asked Habibi  to come back to Indonesia and head the Indonesian Aerospace program. Habibi agreed. 
Millions were spent on the project, Aeronautical engineers were bought from overseas to train local engineers. IPTN purchased licences to produce Puma helicopters & the Casa 212 & 235 passenger plane. Then the Indonesians designed their own aircraft the N-250.
The IPTN  homegrown N-250
It's first flight was Aug 15, 1995. The development of the aircraft siphoned a great deal of money from the government coffers. In Feb 2004 the company was closed and 6,600 workers retrenched.
Habibie Ready!
Habibie said he is ready to work hard to rebuild (PTDI) and expressed concern over the poor condition of the Bandung based company when he visited there recently. "I'm was very sad as I entered all the rooms, which have already been abandoned. Where is the machinery? And also where are the human resources specially sent overseas to prepare the company?" Over 1,300 workers had been sent overseas to study using the money from the people, but only 80 were left, he added. Habibie was was Minister of research & technology for 20 years under Soeharto. IPTN was know as his pet project.
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During the first meeting, presenting your Indonesian counterparts with small gifts is one of the best ways to display your interest and sincerity in establishing a long-term friendship or business relationship. On this occasion, the gifts should be modest but thoughtful, such as tokens representative of your country or your company.
Business Card Holder
You are also expected to give gifts to celebrate an occasion, when you return from a trip, when you are 
invited to an Indonesian home, when a visitor comes to tour your office, and to thank someone for providing you with a service.
Indonesian kids love Koala Bears,
T-shirts or baseball caps especially if they feature an Australian flag or Koala.
Indonesian Chinese will customarily refuse a gift three times before accepting, since they believe that following this ritual prevents them from appearing greedy. In turn, continue to insist; when the recipients finally accept, say that you are pleased that they have done so. When you receive a gift, you will also be expected to follow the same routine.
Western advertising has popularized flowers as gifts. Make sure you
give an even number of  flowers because an odd number is considered an omen of bad luck.
Unwrapping a gift in front of the giver is not a part of Indonesian 
culture. This action implies that the recipient is greedy and impatient. 
Moreover, if the gift turns out to be a poor choice, “loss of face” will result. Instead, the recipient will briefly say “thank-you”, set aside the gift, and then open it only after your departure. You will also be expected to follow this ritual when you receive a gift.
Gifts of food are always appreciated by Indonesian Chinese, but avoid bringing food gifts with you to a dinner party [unless it has been agreed upon beforehand]. To bring food may imply that your host cannot provide enough. Instead, send food as a thank-you gift afterwards. Candy or fruit baskets are good choices.
At Chinese New Year, it is customary to present a gift of money in a red envelope to children and non governmental service personnel you deal with on 
a regular basis. The gift is called a “hong bao.” Ensure that you give only new bills in even numbers and even amounts. Many employers give each
employee a “hong bao” equivalent to one month's salary.
Gifts to Avoid
Indonesian Chinese
Refrain from giving gifts of knives, scissors, or other cutting tools to the Chinese, since they suggest the severing of a friendship or other close bond. The following items are associated with funerals and should be avoided: straw sandals, clocks, handkerchiefs, gifts or wrapping paper in white, black, or blue
Observant Muslim 
Alcohol, perfumes containing alcohol, pork, pigskin products, personal items such as underwear, knives, toy dogs or gifts that picture dogs, images of nude or partially clad women.
Observant Hindu 
Be sensitive that observant Hindus do not eat beef or use cattle products, so leather items of any kind should not be considered.
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