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Indonesia News Digest 25 – July 1-8, 2006
Jakarta Post - July 5, 2006
M. Taufiqurrahman, Jakarta – A criminologist believes the
authorities must identify the root causes of the hatred and
prejudice which fuel vigilantism amid renewed calls for a
crackdown on thuggery.
"It will be useless to focus on the violence that these groups
have inflicted upon the public because they are mostly petty
crimes akin to vandalism," the University of Indonesia's Adrianus
Meliala told The Jakarta Post.
Adrianus said the police should determine the animosity toward
others which drove the groups to commit their acts of violence.
"These groups operate on the premise that those who are against
them must be obliterated – this is a hate crime akin to what
skinheads, Ku Klux Klan or other fascist groups campaigned on."
He believed some of the groups were covertly working to establish
a theocratic state despite the country's pluralistic foundation.
"The police could also charge them with treason charges as what
was repeatedly applied against the Islamic Indonesian State
(NII)," he said, referring to an outlawed Islamist group that
gained notoriety during the administration of former president
Soeharto.
If all else fails in curbing the groups, he said resorting to
heavy-handed approach used by Soeharto might be the answer.
"The regime managed to effectively silence these kinds of groups
by using the criminal code from the Dutch colonial period, namely
articles against spreading hatred." On Monday, nonprofit
organizations, artists, journalists and activists launched a
drive against thuggery in the capital.
Spearheaded by former first lady Shinta Nuriyah Wahid – who has
recently fallen victim to a smear campaign by leader of the
Betawi Brotherhood Forum (FBR) Fadloli El Muhir – the Anti-
Thuggery Movement called on the government to do more in fighting
lawlessness in the country.
The Jakarta Legal Aid Institute (LBH Jakarta) named the FBR, the
Betawi Communication Forum (Forkabi) and the Islam Defenders
Front (FPI) as the main suspects in taking the law into their own
hands.
The new movement is reminiscent of a drive launched by the civil
society against thuggery in the wake of an attack against Tempo
magazine journalists in March 2003.
Lawmaker Eva Kusuma Sundari of the Indonesian Democratic Party of
Struggle (PDI-P), who has repeatedly called for the disbandment
of vigilante groups, advised the movement to file a lawsuit for
the dissolution of such groups, because the police had showed no
sign of taking severe measures against them.
"The group should quickly file a lawsuit and keep an eye on the
entire court proceedings," she told the Post.
Jakarta Post - July 8, 2006
Jakarta – A coalition of anticorruption watchdogs kicked off a
campaign Friday to improve integrity among members of the House
of Representatives.
Transparency International Indonesia, the International
Transparency Society and Indonesia Procurement Watch have begun
inviting lawmakers sign a pact in which they promise not to
commit graft and act ethically.
"Today (Friday) we have asked the chairman of the House
disciplinary council Slamet Effendi Yusuf and woman legislator
Nursyahbani Katjasungkana to sign the pact," said Ai Mulyadi
Mamoer of TI Indonesia.
Aceh
West Papua
Pornography & morality
Human rights/law
Labour issues
Regional/communal conflicts
Environment
Aid & development
Armed forces/defense
Economy & investment
News & issues
Vigilantes' acts akin to hate crimes: Criminologist
Pact to promote clean lawmakers
Student accuses BIN employee of assault
Jakarta Post - July 7, 2006
Jakarta – A student reported a security guard at the National Intelligence Agency (BIN) office to the Jakarta Police on Thursday for allegedly beating him and an ojek (motorcycle taxi) driver last month.
Untung Suropati, 21, a law student at the Indonesian Christian University (UKI), said the assault was unjustified as he believed he had not done anything wrong. "It just shows their arrogance, unjustifiably battering innocent people."
The incident happened on June 12 when he was taking an ojek from Cililitan, East Jakarta, to Pasar Minggu, South Jakarta. As they passed the BIN office on Jl. Kalibata they were stopped by Erik, a security guard. Two cars then backed out of the building and hit the motorcycle.
"After the two cars left, that security guard and two of his friends beat the ojek driver, Lukman," Untung said. "I tried to run away but they got me and beat me also." He said the security guards at the agency took them to an office and intimidated them, saying they were to blame for the incident. "We were hurt. My nose was bleeding," he said, adding that some of the security guards displayed their guns to the two.
Untung said that Lukman told him five men from BIN had been looking for him after the incident. "I've tried to find him so that we can report the case together. But it seems that he's avoiding me," Untung said.
Nurkholis Hidayat of the Jakarta Legal Aid Institute (LBH Jakarta) said BIN should officially and openly clarify the incident.
"We can't take this as a personal matter," he said. Untung has sent a letter to Kompas daily, which was printed in July 3 edition, detailing his experience, but BIN has yet to respond to the allegations.
"I can't take what they have done to me. I'm not an outlaw, there was no need for them to beat me and threaten me with a gun. They are security officers. They are not supposed to take the law into their own hands," he said.
Nurkholis said that in the report to the police, his client charged Erik with violating the Criminal Code on "unpleasant acts". "LBH Jakarta will send a letter to BIN chief Syamsir Siregar to clarify the incident," he said.
The Jakarta Post contacted an officer at BIN but he said he could not comment on the matter. He said only BIN as an institution could talk to the press.
Agence France Presse - July 2, 2006
Jakarta – Some 10,000 Indonesians have massed in front of the US embassy, to support the Palestinian people and condemn Israel's deadly offensive and the arrest of Palestinian officials.
Thousands of white-clad members and supporters of the Muslim- oriented Prosperous Justice Party (PKS), many of them veiled women and their children, gathered at Jakarta's main mosque before heading to the US embassy.
Many on the one-kilometre (half-mile) march waved the Palestinian flag and wore the party's white T-shirt with black and yellow logo while others donned black headbands.
One banner said "Solidarity for the independent people of the Palestine," while another poster said: "The real terrorist is Zionist Israel." At the embassy, the protestors threw pieces of paper at six replica stone pillars against which Muslim Haj pilgrims traditionally throw pebbles to ward off evil, which had been set up in front of the embassy.
Picture of the United States flag and US president George W. Bush were pasted on top of the replicas.
Scores of policemen stood on standby between the demonstrators and the embassy fence, while embassy security forces were also on guard behind the barrier.
Central Jakarta Police Chief Bambang Hermanu said that about 500 police personnel were deployed in and around the site of the protest.
After an hour of peaceful demonstration, the protesters then moved their rally to the United Nations mission on a main avenue another one kilometre away, before planning to disband.
PKS is a fledgling party that has drawn enormous support among urban Muslims. It advocates clean government and respect for Islamic laws and teachings within the secular republic.
Indonesia, the world's most populous Muslim nation, is a staunch supporter of the Palestinian struggle for nationhood and has no diplomatic relations with Israel.
Jakarta Post - July 1, 2006
Tangerang – Dozens of residents of Sukamanah village in Jambi district ran amok Friday, beating up the village secretary and destroying the village administration office after the administration failed to explain the cut in government direct cash aid.
The incident occurred after village secretary Asmun canceled a gathering at which he had promised to explain about the reduced money. The promise came following a police report filed by resident Jaro Asari accusing him of embezzlement.
"His attitude was unacceptable and our emotions ran high because of it," Jaro, who managed to throw a punch at Asmun, said. Asmun, however, was able to outrun the mob.
| Aceh |
Agence France Presse - July 4, 2006
Banda Aceh – A former separatist rebel was killed and a policeman wounded in an attack witnessed by members of a foreign peace monitoring mission in Indonesia's Aceh province, police said Tuesday.
The ex-Free Aceh Movement (GAM) rebel, aged 32, was killed during a shootout Monday between Indonesian soldiers and unknown gunmen in North Aceh, police spokesman Jodi Heriyadi told AFP.
The skirmish, which also wounded a policeman and another civilian, occurred at dusk while members of the Aceh Monitoring Mission (AMM) and soldiers were investigating the arrest of a civilian by local military in the area.
The civilian had been arrested in front of a military post for speeding on a motorcycle and allegedly carrying marijuana, Heriyadi said.
He said AMM officials, military officers and several former GAM members were being briefed on the arrest along with several civilians when gunmen fired upon the group. Soldiers manning the post retaliated by shooting toward the gunmen.
One of the ex-GAM members was killed, while the policeman who was escorting the AMM officials, and a civilian in the group was wounded, Heriyadi told AFP. "This case is still being investigated by the AMM and Indonesian authorities," he said.
The AMM confirmed the attack. "This serious incident will be further investigated... with a particular view to clarifying the facts and ascertaining that the law has been respected," the AMM head of mission Pieter Feith said in a statement.
He said the AMM would look into whether the armed forces had interfered in law enforcement and whether excessive force was used. "AMM is particularly concerned that its monitors were placed in danger in the course of their duties," Feith added.
The Indonesian government and GAM signed an historic peace pact on August 15, aimed at ending 29 years of conflict which has left around 15,000 people dead – mostly civilians.
The AMM is due to wrap up its mission in September. Nearly 200 monitors were initially stationed in Aceh after the pact was signed, but about 100 left in March when the mission was scaled back.
Jakarta Post - July 8, 2006
Jakarta – A human rights group suspects there have been "systematic attempts" to shatter the peace in Nanggroe Aceh Darussalam.
The Jakarta-based Aceh Working Group (AWG) said a multipronged intelligence campaign had been underway to disrupt peace in Aceh, following the peace agreement signed last August by the government and the Free Aceh Movement (GAM) in Helsinki, Finland.
The most striking example of the campaign was the recent spate of shootings in which four people were killed, including a former GAM member, and several others injured, the rights group said in a statement Friday. Unidentified gunmen killed three farmers in a forest in North Aceh on Thursday.
Earlier on Monday, a former GAM member was killed in a shootout that involved Indonesian Military (TNI) soldiers. The fresh violence took place only days before the House of Representatives passed the bill on Aceh governance into law.
The Aceh Monitoring Mission (AMM) has dismissed speculations the shootings were linked to separatist conflicts in Aceh. The AWG, however, believes otherwise. "The shootings were the peak of systematic attempts to disturb the peace in Aceh," AWG's Otto Syamsuddin Ishak said.
He said the high incidence of armed robbery in Aceh in recent months was another indication of an intelligence campaign. "The armed robberies happened in a period when the AMM had completed its task of disarming GAM; when the rebels should no longer have been armed," he said.
Another worrying trend is the rising illicit trade of small arms and light weapons. "Most illegal small arms went to the members of pro-Jakarta militia groups," Otto said.
The most visible trait in the systematic campaign was the sudden presence of roving vendors in Aceh, even in remote regions.
"They peddle goods that are actually not needed by poor Acehnese such as paintings, ice creams and electrical appliances and it is strange to see them being sold in remote villages," Otto said, adding that the peddlers were all well-built men and had the freedom to get into government offices.
In some locations, the vendors were found to be distributing stickers and leaflets that campaigned against peace in Aceh. He said increased numbers of peddlers had also been observed in other conflict zones such as Poso in Central Sulawesi, Maluku and Papua.
Fellow activist Choirul Anam said the peace monitoring team might encounter problems in dealing with the intelligence campaign given its covert nature. "The Helsinki peace accord has no provision to deal with such an intelligent operation," Choirul said.
The AWG, however, suggested that the AMM enhance cooperation with local police and human rights groups in the investigation into the recent string of violent incidents. "The military should be excluded from the investigating team as it would only compromise its impartiality," Choirul said.
Jakarta Post - July 1, 2006
Ridwan Max Sijabat, Jakarta – The House of Representatives is scheduled to endorse the long-awaited and much-debated Aceh governance bill on July 11, with the main focus then on holding the first direct gubernatorial election in the province.
The chairman of the House's special committee on the bill, Ferry Mursyidan Baldan, said in a discussion here Friday that a team was honing the wording of the 261-article bill before it was brought to a plenary session for endorsement.
"The special session will leave for Aceh on July 13 to hand over the bill to the Aceh administration for its enforcement and dissemination among the Acehnese," he said.
Acehnese legislators and legislators who opposed the content of the original bill also said they would endorse the rehashed version, which was completed last week four months overdue.
Communications Minister Sofyan A. Djalil said the bill was not only a "golden gift" to the Acehnese, but also marked the full realization of the August 2005 agreement between the government and the Free Aceh Movement (GAM) to build a lasting peace and spur the post-tsunami rehabilitation program in the province.
He said the bill ushered in a better future, with the first objective to hold the landmark direct gubernatorial elections and implement special autonomy under the new law.
Ferry and Sofyan said the Aceh governance law, in addition to providing more authority and funding to the regional administration than under the 2001 Autonomy Law, also absorbed more of the GAM's interests.
"Under the Indonesian Unitary State principle and the Constitution, it is impossible for us to comply with all the things GAM has demanded. But in certain fields, including education, fiscal balance and religion, the government has given more political concessions than the GAM sought," Ferry said.
In ending tough, protracted negotiations last week, the government and the House managed to resolve 10 crucial issues, including on the police, sharia, management of the exploration of natural resources, local parties, independent candidates and supervision of qanun (bylaw) enforcement.
The Indonesian Democratic Party of Struggle (PDI-P) originally opposed the conditions of the peace agreement signed in Helsinki, and also faulted the original bill for giving too many concessions to the GAM. However, PDI-P legislator Irmadi Lubis said it now accepted the bill because it focused on the improvement of the Acehnese people's social welfare and the upholding of justice.
He also believed the bill would help resolve the lingering issues from the almost 30-year insurgency.
"The bill asserts the Acehnese people's rights to enjoy their rich natural resources and, one year after its enforcement, it also orders the establishment of an independent commission of truth and reconciliation to handle unresolved human rights abuses and arrange compensation for those who suffered injustice in the past."
Nasir Djamil, a member of the Joint Forum for Acehnese Legislators (Forbes Aceh), claimed that the GAM accepted the bill despite its absence during the deliberation process. "We met with GAM officials here three days ago to communicate the latest developments in the bill's deliberation and, although there was disappointment on certain issues, they could accept the bill's contents." Nasir, who is also deputy chairman of the special committee on the bill, said many elements of Acehnese society were ambivalent about its contents due to a lack of information.
But he acknowledged that the bill could not fully meet the demands of the government or the GAM, but they should compromise for peace in the province.
Sofyan said he was optimistic all law enforcement-related problems could be settled because the government and the GAM had established a joint forum, called the Committee of Security Arrangements, in which both sides could raise issues to be resolved.
| West Papua |
Jakarta Post - July 7, 2006
Nethy Dharma Somba, Jayapura – Seven suspects set to stand trial over the killing of two American teachers and their Indonesian colleague in Timika, Papua province have refused to stand trial in Jakarta, their lawyer said Thursday.
They were scheduled for the first hearing at the Central Jakarta District Court on Tuesday but declined to attend, sending a letter to their lawyer not to appear in court.
"They are refusing to attend the trial on the grounds that they want to be tried in Timika, the site of the incident," said their lawyer, Johnson Panjaitan, on Thursday.
He said he had received an invitation from the court to attend Tuesday's trial along with a copy of the indictment. "But I didn't attend the court proceedings as per my clients' request," he said.
In cooperation with the US Federal Bureau of Investigation (FBI), the police arrested 12 Papuans, including Anthonius Wamang, who was indicted by a US grand jury in 2004 for the killings. Five were later released. The seven suspects, including Wamang, have officially been named suspects. They were flown to Jakarta and were set to stand trial Tuesday for the ownership of illegal arms and actions resulting in death.
Johnson said he found the relocation of the trial from Timika District Court to Jakarta unreasonable. He said the transfer was made following an order from the Supreme Court chief justice in February 2006.
"The Supreme Court has no right to move the trial, it's the justice minister who has the authority to do so based on a proposal from the Supreme Court chief as stipulated in the Criminal Code," he asserted.
Johnson said he had not seen any instruction from the justice minister to move the trial venue. "So there's no reason for holding the trial in Jakarta," he said, adding that the move would not guarantee justice for the Papuans.
He said the trial was moved to Jakarta due to security concerns, especially the security of 12 American witnesses. "I've coordinated with community and religious leaders to help ensure security if the trial is conducted in Timika," he said.
Meanwhile, director of the Institute for Human Rights Study and Advocacy for West Papua (Els-Ham), Alloysius Renwarin, said the Amungme tribe, led by Papuan feminist Yosepha Alomang who is also an Amungme tribal leader, had asked the Timika District Court to let the seven suspects be tried in Timika.
National Police chief Gen. Sutanto said previously the 2002 killing of an Indonesian and two American teachers in Papua were caused by local separatist soldiers firing at civilians by mistake, saying there was no evidence the Indonesian Military (TNI) had been involved, despite the claims of activists here and abroad.
The incident led to strained ties between Indonesia and the United States, with the US Congress cutting off assistance to the TNI in 2003 amid suspicions of the involvement of some of its members.
The January arrests came after Washington restored military ties in November 2005 as a reward for Indonesia's assistance in the US-led war on terrorism.
Jakarta Post - July 3, 2006
As ceremonies marked the National Police's 60th anniversary Saturday, Papuans observed the moment uniquely, holding a bakar batu, or "burning the stone" thanksgiving ritual.
Residents from 42 villages in Jayawijaya regency's three districts prepared a communal meal, cooking it with hot stones before sharing it together.
In the process, the stones were heated before being placed in a hole and then covered with banana leaves and grass. The food – pork, corn and vegetables – was then placed on top of the stones and covered with more banana leafs. The food was cooked by the steam coming from the hot stones, giving the ritual its name.
The Saturday event was held after Papua Police chief Insp. Gen. Tommy Jacobus opened Bolakme police precinct to celebrate the anniversary.
Chief of Central Wamena tribe Pianok Tabuni said the ritual was to show gratitude for rise of the local police office's status from a police post to police precinct.
"This event is also intended to show people's gratitude to the police who ensure people's safety," he said. (JP/Nethy Dharma Somba)
| Pornography & morality |
Sydney Morning Herald - July 8, 2006
Mark Forbes, Jakarta – Kartika Gunawan is not a typical Playboy playmate, but neither are her centrefold shots.
Although her starring role in the first issue of an Indonesian edition of Playboy finally supported the excuse that readers bought it only for the articles (not a nipple was visible, in a concession to hardline Islamicists calling for the publication to be banned), Gunawan faces more than two years in jail for indecency.
Jakarta's police chief bowed to pressure from the radical Islamic Defenders Front this week, proposing indecency charges against Gunawan, another model and Playboy's editor, Erwin Arnada.
The magazine has been targeted by opponents as a symbol of Western decadence and the row has led to calls for tough anti- pornography laws outlawing "sensual behaviour", revealing clothing, even kissing in public.
It is part of a concerted push to impose sharia law throughout Indonesia, a campaign that Abu Bakar Bashir, the former spiritual leader of the Jemaah Islamiah terrorist network, vowed to spearhead on his release from prison last month.
Rock-throwing protesters tried to ransack Playboy's Jakarta office when the first edition appeared in April, so Arnada relocated to the more tolerant island of Bali.
He published a second edition last month, with numerous blank pages after advertisers withdrew their support following threats by the Islamic Defenders Front.
Arnada says he altered Playboy's content to accommodate Indonesian culture. "We never publish nude pictures," he said.
Gunawan is defiant. The trained nurse and aspiring actress says she was proud of her photographs as they "prove I was able to make it in a men's magazine, and the photo concepts were normal, acceptable; not vulgar".
In person, she appears almost coy, confiding that she would not agree to pose naked. Flattered by the offer to feature in such a "cool" magazine, she was aware of the opposition to its publication but she believed the row would have died down by the time her pictures appeared.
But Gunawan's decision to pose for the magazine has not brought her the attention she hoped for. She said told the Herald she was shocked when she was called in by police, then alarmed when they indicated she would be charged.
"Who is not scared of being jailed," she asked, "but I try to be strong." At the police station, she faced a barrage of questions, Gunawan said: "Why did you want to be photographed like that? In those positions? Did you wear anything to cover up?" The officers seemed fixated on who watched the shoot and how much they could see. "I told them when I was photographed for lingerie, I wore a silicon bra and small panties," she says. "All I can say is that I am not the first person who was photographed like that."
In fact, far more revealing photographs can be found in racy local tabloids and magazines that are available on street corners.
Indonesian feminists have spoken out in defence of Playboy, with opposition to the anti-pornography campaign growing among the Jakarta elite.
Individuals like Gunawan are pawns in the moral battle over reshaping Indonesia's identity. Confused by people trying to define pornography, she says "women should not be pressured in the way they dress" but says that if an anti-pornography law was introduced, "as a good citizen, I have to abide by it".
Jakarta Post - July 8, 2006
Jakarta – Members of the Unity in Diversity Alliance came away disappointed Friday after trying to persuade the Islamic Prosperous Justice Party (PKS) faction to stop the passage of the controversial pornography bill and enforcement of sharia bylaws.
The alliance, which consists of artists, lawyers, and religious scholars, told PKS members in the House of Representatives that the party was commonly perceived as pursuing the establishment of an Islamic state. They said the party should oppose the bill if it did not want the image to persist.
In a statement read by cultural observer Hudan Hidayat, the alliance said the pornography bill – which had languished in the House for several years before the PKS and other parties revived interest in it recently – had the potential to tear at the country's pluralistic foundation and diminish individual rights.
They also said sharia bylaws, which have been introduced in several regencies, would have a similar negative effect on Indonesia's multiethnic, religiously diverse society.
Zulkieflimansyah of PKS responded that the party was in a difficult position because of the public assumptions, but declared, "we support Indonesian unity and the 1945 Constitution".
But he also said the sharia bylaws were approved by members of city councils who were mostly from the leading Golkar and the Indonesian Democratic Party of Struggle (PDI-P). "Most people realize that we have only a few people on the city councils in Indonesia," he said.
Another PKS representative, Sunmanjaya, who is also a member of the special committee deliberating the bill, said that it would be possible to discontinue its discussion or have it withdrawn. However, he added that his party would have little influence on the decision because of only four representatives on the 56- member committee.
Sunmanjaya also said the party would have to meet to make a united decision. "We have to accommodate all voices that come to our party.
So far, from all the groups that we have received input from, only 15 rejected the pornography bill while 85 agreed to it." Alliance spokeswoman Ratna Sarumpaet said she was disappointed by the party's refusal to take a firm stance against the porn bill, which she added was similar to the ambivalent viewpoints of other major parties such as Golkar and PDI-P.
The playwright and actress said the alliance was against pornography because of its harmful effects on society, particularly to minors, but believed the porn bill was dangerous because it regulated not only the production and distribution of obscene materials, but also encompassed moral, ethical and individual rights issues.
"Therefore, we demand that the committee immediately apologize to the public for insisting that the bill be passed into law. If it does not do this in two days, we will initiate a class action against it," Ratna said.
| Human rights/law |
Jakarta Post - July 6, 2006
Jakarta – The House of Representatives has agreed to resolve internal friction over controversial sharia-inspired bylaws enacted by some regional administrations.
House Speaker Agung Laksono said lawmakers opposed to and those in support of the local government regulations had met with him and agreed to stop questioning these bylaws on gambling, prostitution and liquor.
A group of 156 legislators led by Constant Ponggawa had written to the House leadership, asking the government to annul the sharia bylaws, while a rival group of 134 other legislators sent a letter to the House leadership to counter the first letter.
"The coordinators of the two groups attended a meeting (with me) and agreed to end the friction," Agung said here Tuesday.
The sharia bylaws have sparked public debate, with critics saying they were against the Constitution and the state philosophy, which underlines pluralism.
Jakarta Post - July 4, 2006
M. Taufiqurrahman, Jakarta – The rehashed bill on citizenship has been criticized by a coalition of non-governmental organizations for allowing discrimination against women and endangering their rights.
The Network for Pro-women National Legislation Program said the latest draft of the soon-to-be-passed bill was rife with conditions that would leave women vulnerable to losing their citizenship.
The network's biggest cause for concern is Article 26, which stipulates that a female spouse will lose her citizenship once she marries someone of foreign nationality.
It said that the term contradicts a general principle that prohibits the revocation of citizenship because of marriage. "This is discrimination against women, as a wife should not involuntarily lose her citizenship, aside from it being of her own free will," the coalition said in a statement. There is no similar condition for Indonesian men marrying foreign women.
The Amended 1945 Constitution, 1999 Human Rights Law and 1984 Law on the Eradication of Discrimination against Women have disallowed discrimination based on marriage.
The coalition also lamented another stipulation in the bill which states that Indonesian citizens living abroad will lose their citizenship if they fail to renew their passport in a period of five years.
"This will deal a severe blow to thousands of our female migrant workers who work abroad," it said.
A passport was only a travel document that was not tantamount to citizenship, the coalition said. "A lapse in administrative matters should not result in the revocation of one's citizenship," it stated.
With all the shortcomings, the coalition, comprising among others members of the Women's Institute, the National Commission on Violence Against Women, the Center for Electoral Reform, Puan Amal Hayati and the Asia Foundation, called on the House to drop the articles that would put women's rights at risk.
Their demands are unlikely to be heard as the House is wrapping up its deliberations. A working committee has concluded revising the final draft of the bill and is expected to hand over its result to a special committee before it is endorsed by a House plenary session.
Members of the special committee expect the bill to be endorsed in mid July.
Others have hailed the bill as a landmark achievement in the country's legal system because it recognizes dual citizenship, although on a limited scale for children of transnational marriages up to their 18th birthday.
Special committee member Nursyahbani Katjasungkana of the National Awakening Party (PKB), a women's rights advocate and qualified lawyer, acknowledged the revocation of citizenship for women marrying foreigners was outdated and discriminatory.
"A survey carried out in 122 countries found that such a principle is no longer applied," she said.
Jakarta Post - July 3, 2006
M. Taufiqurrahman, Jakarta – Bowing to demands from a number of groups, the House of Representatives has decided to halt discussions on an anti-discrimination bill that was already in the pipeline.
The decision was made by the House's special committee tasked with deliberating the bill to eradicate ethnic and racial discrimination.
The committee accepted a recommendation from the House legal division that suggested such a law was not necessary given the numerous laws that already regulated the issue.
"After studying input from numerous groups, the House legal division decided that numerous provisions in the anti- discrimination bill were merely repeats of stipulations in other laws, such as Law No. 39/1999 on Human Rights," deputy chairman of the special committee Mufid Busyairi of the National Awakening Party told The Jakarta Post on Sunday.
He said numerous provisions in the draft were also redundant as a number of United Nations covenants against discrimination had been ratified by the Indonesian government.
Such redundancy was first highlighted by the National Commission on Human Rights (Komnas HAM) and the Indonesian Ulema Council (MUI), which later dismissed the significance of a new law that would outlaw ethnic and racial discrimination.
The Komnas HAM was firm in its opposition of the bill as the draft law, once passed, would diminish its authority as the sole institution to hear cases of discrimination. Other groups, such as the MUI, alleged that the bill would only favor small and minority groups in the country.
As the bill's title suggests, it seeks to outlaw racial and ethnic discrimination. It was proposed by the House and was being discussed simultaneously with the bill related to civil registration and citizenship.
The House and the government were to decide whether the deliberation of the anti-discrimination bill would continue or not. "If the representative of the government, in this case the justice and human rights minister, suggested that the discussion of this bill should be stopped, we could not decide otherwise," Mufid said.
Advocates of the bill, including scores of non-governmental organizations grouped in the Committee for Eradication of Discrimination from Indonesia, have vowed to press ahead with campaigning for the bill's deliberation.
Swandy Sihotang of the Indonesian Movement Against Discrimination (Gandi), a member of the coalition, said the Human Rights Law did not give details about what was discrimination and what was not. "It just gives a general definition on what can be considered as discrimination," he told the Post.
The coalition has demanded that the bill not only seek to outlaw ethnic and racial discrimination, but also other forms of discrimination. "An exclusive law on discrimination is needed to incorporate numerous stipulations carried by other laws and regulations," he said.
| Labour issues |
Jakarta Post - July 8, 2006
Jakarta – Indonesian maids working overseas are still unaware of their right to report cases of abuse and other grievances to local authorities, activists say.
Activists from the Middle East and Indonesia told an regional dialog Friday that most Indonesian workers did not report unfair treatment by their employers to the police or government agencies because they were ignorant of the law.
"Very few migrants know where and how to report cases of employer abuse," said Tuful Al-Okby, a human rights activist from Saudi Arabia. "Migrant workers should have been informed that their rights are protected under the law."
She said Saudi law included human rights protections and did not discriminate against foreigners. However, only a few cases of abuse against migrant workers were legally processed every year.
The National Commission on Violence against Women (Komnas Perempuan) said around a million Indonesians were currently working in Middle East countries.
About 90 percent of them are women, who work as housemaids. Each year, Indonesian embassies and non-governmental organizations in the Middle East receive thousands of reports of human rights violations.
Nana Mardiana, who established the Indonesian Migrant Workers Association (PPMI) to hear complaints from migrant workers in Mecca, said around two migrant workers reported their ill treatment to the association every day.
"About a half of the workers complain that they have not been paid by their employers, or receive less than the promised wages," he said.
"Others have been assaulted or abused sexually." Meanwhile, sociologist Ray Jureidini from the Forced Migration and Refugee Studies Center at the American University in Cairo, told the Friday dialog that countries sending workers abroad should create better policies for migrants.
"Bilateral cooperation between the governments of source and destination countries is important to protect migrant workers from unfair treatment," he said.
"The migrant workers issue, particularly regarding domestic workers, is unique since it is a kind of cross-border employment system but is situated in a 'private' workplace; a family." The human rights groups agreed the Indonesian government had yet to take the necessary action to protect migrant workers.
Komnas Perempuan is cooperating with the Human Rights Institute of Saudi Arabia, the Arab World Center for Democratic Development and Human Rights of Jordan, and the Bahrain Human Rights Society to help protect migrant workers from abuse.
"We can see from the establishment of those NGOs that Middle East countries have growing concerns about human rights," Tati Krisnawaty from Komnas Perempuan said. "We see it as an opportunity to inform them about the situation of Indonesian women migrant workers there."
Jordanian Jalal Maqableh said the demand for regulations to protect migrant workers had increased in his country. "We hope to provide advocacy for migrant workers and help them to become more aware of the law in destination countries," he said.
Jakarta Post - July 6, 2006
Bandung – Fifty-two former workers of state aircraft maker PT Dirgantara Indonesia began a long march from Bandung to the Presidential Palace in Jakarta on Wednesday to demand the government honor its promise to pay part of their pensions in cash.
Other former workers and their family members saw off the marchers who began their trek from the West Java governor's office.
Group spokesman M. Sidharta said President Susilo Bambang Yudhoyono had pledged the government would pay the former workers part of their pensions in cash. The fund worth Rp 40 billion was raised from an escrow account. However, the money, which was supposed to be ready on June 30, had not yet been paid, he said.
"We're tired. The long march will demonstrate whether SBY will keep his promise and show whether we can trust the President," he said.
The dispute involving former workers and Dirgantara management began when former director Edwin Sudarmo dismissed more than 9,600 workers in July 2003 during an industrial dispute. A third of the workers were hired back but the others demanded redundancy packages in line with labor regulations.
Jakarta Post - July 5, 2006
Ridwan Max Sijabat, Jakarta – Lawmakers here Tuesday lashed out at the management of state-owned labor insurance firm PT Jamsostek for failing to boost transparency and professionalism in carrying out social security programs for workers.
Speaking at a hearing between Jamsostek directors and House of Representatives Commission VI for trade, industry, state enterprises and cooperatives, they categorically criticized the company's investment policy, saying it could create opportunities for corruption as happened in the past.
"It is an unwise policy to invest a bigger part of its Rp 33 trillion in assets to purchase mid-term bonds and prospective shares in the stock market. This policy will give space and opportunity for the management to abuse their power to enrich themselves," Nusron of the Golkar Party told the meeting.
He said the management had many times explained its investment policy to the House but it and the government were not transparent about how the investment had been managed.
The Corruption Eradication Commission (KPK) was investigating a number of graft scams in Jamsostek, which allegedly served as a cash cow for politicians.
The South Jakarta District Court recently sentenced the company's former president, Achmad Djunaidi, to six years' jail for corruption over his decision to purchase several companies' short-term bonds, which caused billions of rupiah in losses to the state.
Ate Sugandi, a Democratic Party legislator, questioned current Jamsostek president Iwan P. Poncowinoto's one-man-show policy and his alleged nepotistic decisions to promote certain employees close to him, as well as his alleged recommendation for certain companies to win tenders in the company.
"We have received reports that Iwan Poncowinoto promoted certain employees close to him to strategic positions and recommended a certain company belonging to one of his children win an IT project for the company," he said.
Iwan recently said he never recommended any company be offered the project.
Commission VI members also questioned the absence of Jamsostek director of service and operations Tjarda Muchtar from Tuesday's hearing.
"The absence of a director from this meeting shows the board of directors is not solid," Ate said.
Iwan conceded he did not know why Tjarda did not show up.
Reliable sources at Jamsostek revealed that Iwan had written a number of times to the company's board of commissioners and the state minister for state enterprises to request Tjarda be replaced but received no response.
| Regional/communal conflicts |
Jakarta Post - July 3, 2006
Hasrul, Kendari – The mood in Pasarwajo city, the capital of Buton Regency in Southeast Sulawesi, was tense Sunday following the shooting of people protesting against the regental election plan.
Police officers and soldiers were stationed at strategic posts throughout the city. Besides guarding the Buton regency's residence, large numbers of officers kept watch at major government buildings, including the city hall.
Officers were seen stopping motorists heading to the downtown area to check them for weapons, while local residents gathered in groups in a number of spots.
Meanwhile, four shooting victims were said to be recovering. One of them, 17-year-old Joni, was released from the hospital after being treated for his wounds on his face. "We've allowed the patient to go home as he has recovered from his injuries," Pasarwajo General Hospital employee Munir said Saturday.
The four were among 12 protesters wounded during the demonstration on Wednesday after they damaged the office of the local General Election Commission (KPUD) and demanded the postponement of the regental election slated to be held July 23.
The protest was sparked by the decision to drop five of the 10 pairs of candidates taking part in the election for failure to meet all the requirements.
Joni claimed he was shot by the authorities while having dinner with other protesters.
Meanwhile, Southeast Sulawesi police chief Brig. Gen. Edhi Susilo reiterated that he would not tolerate any anarchic actions. He said Buton police officers had acted appropriately. "All the shooting actions by my subordinates were in line with existing procedures, as the protesters had shown anarchic tendencies by damaging the local KPUD office," Edhi said.
He added that he was ready to deploy a larger number of officers during the regental election. "Let's uphold our democracy properly. We will take stern actions against those intending to disrupt the election," he said.
Laode Hamzah Amiri, head of Buton KPUD, said the regental election would be conducted according to plan. "We've met all the goals set in the schedule," he said, urging everyone, especially supporters of the dropped candidates, to act wisely.
Jakarta Post - July 3, 2006
Ruslan Sangadji, Poso – A bomb believed to be homemade exploded Saturday night at a church in the Central Sulawesi regency of Poso, but no casualties were reported.
The explosion the Eklesia Church on Jl. Pulau Seram at Gebang Rejo village was heard about three kilometers away, but caused no major physical damage to the building. The church was still under renovation after being burned during religious violence that hit the regency several years ago.
Local people who had been waiting for the start of the World Cup soccer match between England and Portugal flocked to the scene of the explosion.
Security officers immediately went to the site to erect police lines and begin the investigation. The growing crowd dispersed after being asked to leave.
Insp. Gen. Paulus Purwoko, chief of the Central Sulawesi Security Operation Command (Koopskam), said on Sunday that preliminary investigation results suggested a homemade bomb had been used.
"It was caused by an explosive which had no metal casing. It caused a loud explosion but would not hurt anybody due to the absence of metal particles," he said. Police will continue investigating by collecting debris from the blast, he added.
Security forces in the city have been on high alert since 2005 following a spate of attacks targeting Christians. The renewed violence has included bombings at marketplaces and the beheadings of three schoolgirls.
Although the vast majority of Indonesia's 220 million residents are Muslim, a large percentage of central Sulawesi's population is Christian.
There were fierce battles between members of the two faiths in 2001 and 2002 that killed about 1,000 people. Poso was the center of the violence.
Darwis Waru, head of the Poso Conflict Resolution center, said it had become a kind of habit that whenever security officers were withdrawn from an area, bomb blasts, shootings, murders and kidnappings followed.
"We predicted there would be a new incident because Koopskam is ending its duties. So we're not shocked. It's become normal for us in Poso," Darwis said.
One day earlier a construction worker found 26 active bullets in the ceiling of a motorcycle dealership in Poso.
| Environment |
Jakarta Post - July 6, 2006
Jakarta – Too many illegal logging suspects are being acquitted by the courts and others are receiving light sentences, say National Police chief Gen. Sutanto and Forestry Minister M.S. Kaban.
Speaking after a meeting at Kaban's office Wednesday, Sutanto and Kaban said the judgments would undermine people's faith in the justice system.
The pair said they were especially concerned about the decision by courts in Papua to acquit 18 people accused of illegal logging, including alleged financiers, during the past year. Many other suspects had received lenient sentences from the courts, they said.
"We are very disappointed about what has happened in Papua. We initially hoped courts would hand down severe punishments to the offenders. Tough sentences would set an example to future violators," Sutanto said.
Sutanto's visit to Kaban's office came four days after the police chief held an event to make the force's 60th anniversary in Aceh on Saturday. Kaban said cracking down on illegal loggers was one of the ministry's top priorities this year.
"Many cases of illegal logging (in Papua) have been processed but we are not happy with the results," Kaban said. He blamed judges for the verdicts but did not accuse them of taking bribes or colluding with loggers because "we have no proof".
Kaban said the ministry would set up a special team in cooperation with the National Police and the Attorney General's Office to monitor all illegal logging that went to court.
The team would also issue legal opinions on the cases, he added. "The legal opinions will then be sent to the Supreme Court so it can understand the problems in the field," Kaban said.
Sutanto said he hoped the public and the media would help monitor the investigations into illegal logging suspects across the country.
The police and the ministry have launched a series of raids on illegal logging operations this year. Hundreds of suspects, including illegal logging financiers, have been arrested in Papua. Authorities are still hunting down 25 logging "bosses", according to the ministry.
National Police spokesman Brig. Gen. Anton Bachrul Alam said Tuesday a former two-star Army general and two company directors had been arrested for alleged involvement in illegal logging on Borneo island.
The three, retired general and former lawmaker Gusti Syaifuddin, and directors Arifin and Darul Hakim, were responsible for overseeing "the unlawful logging of trees and their sale" to Singapore and Malaysia, Anton said.
President Susilo Bambang Yudhoyono declared a war on illegal logging in March last year, an industry that environmentalists estimate to be worth around US$3 billion annually.
Much of the country's forested areas are also being lost to palm oil plantations, with planted areas soaring from 120,000 hectares in 1968 to 5.5 million hectares in 2004.
The World Wide Fund for Nature warned earlier this year that bogus plantation projects were often serving as fronts for logging ventures. After the forests of valuable timber were cut down, the areas were left as wasteland, it said.
Agence France Presse - July 5, 2006
Jakarta – Indonesian police said they had arrested a former army general and two company directors for alleged involvement in illegal logging on Borneo island.
All three were directors of different firms based in East Kalimantan and responsible for overseeing "unlawful logging of tree logs and selling them" to Singapore and Malaysia, said national police deputy spokesman Anton Bahrul Alam.
Alam identified the three as retired two-star general and former member of parliament Gusti Syaifuddin, Arifin and Darul Hakim.
Firms owned by the trio had cut down trees in a 15-square- kilometer (nine-square-mile) concession area in East Kalimantan without permits from the forestry ministry and failed to replant the area with palm oil, Alam said.
He said police had confiscated more than 6,200 cubic meters (66,700 square feet) of logs and 18 tractors as evidence. The logs had been auctioned off and generated 3.25 billion rupiah (357,930 US dollars) for the state, Alam said.
But the loss caused by the deforestation was "worth a lot more" than the cash from the sold logs, he told AFP, adding that the three men could face up to 10 years in prison if found guilty.
President Susilo Bambang Yudhoyono declared war against illegal logging in March last year. Indonesia is estimated to lose more than three billion dollars in revenue annually due to the practice.
Much of Indonesia's forested areas are however also being lost to palm oil plantations, with the area under plantation soaring from 120,000 hectares (296,000 acres) in 1968 to 5.5 million hectares in 2004.
The WWF warned earlier this year that plantation projects may be serving as an excuse to plunder forests: once the often valuable tropical trees are cut down, the operations are often halted and devastated areas left as wasteland.
Rapid deforestation has had devastating environmental consequences for both Indonesia and the Southeast Asian region, causing floods and landslides and shrouding nearby countries with haze from illegal fires set to clear land.
Jakarta Post - July 4, 2006
Tb. Arie Rukmantara, Jakarta – Environmental activists are calling on the government and the public to halt the degradation of marine resources in order to prevent the kinds of disasters that have already caused suffering for millions of people.
Riza Damanik, campaign manager for marine and coastal areas at the Indonesian Forum for the Environment (Walhi), said the rapid damage to coastal areas has left 750 villages along some 81,000 square kilometers of the country's coastline subject to chronic erosion. Indonesia has the world's second longest coastline.
"These villagers are also hit by increasingly frequent floods. In 2003 alone, some 12,000 villages were inundated, which is a sharp increase from 1999, when 7,000 villages were affected by floods," he said.
A study by Walhi showed that 90 percent of the disaster-hit villages were located in areas where coral reefs and mangrove forests were damaged.
The 2005 State of the Environment report says that of the country's 51,000 square kilometers of coral areas, only 5.8 percent are well-preserved, a decrease from 2004 when 6.8 percent were in good condition.
Meanwhile, about 57 percent of the country's 9.2 million hectares of mangrove forests are in critical condition.
Experts say mangrove trees could halt erosion and mitigate the negative impacts of large sea waves on coastal areas, where some 16 million Indonesians live.
"These villagers are suffering from ecological disasters, a natural result of our accumulated failures in preserving the environment and managing marine resources," Riza said.
He blamed the government for not stopping the conversion of coastal areas into big fishing ponds, which has decreased the ability of coastal areas to mitigate the impacts of disasters.
"Last year, my study estimated that fish farming areas totaled 800,000 hectares, increasing at an average rate of 14 percent per year," he said.
Marine and Fisheries Ministry spokesman Aji Sularso said the government was fully aware of the situation and had drawn up various community-based programs to improve conditions.
"We are working not only to increase yields from the fishery industry but also to practice preservation," he said.
Among dozens of programs created by his office, Aji said that the Coral Reef and Management Project and Marine Coastal Resources Management Project, both funded by foreign donors, had been successful at sustaining marine resources.
As for the fish farming industry, he said it was up to local administrations to regulate them.
"In line with the decentralization system, some conservation programs are now under the regional administrations' authority," he said.
Jakarta Post - July 1, 2006
"One, two, three, heave!" men shout as they strain against a wooden motor boat used to catch green mussels just a few hours before.
Heading out at dawn from the beach in Kalibaru subdistrict, Cilincing district, North Jakarta, the fishermen return just after 11 a.m., bringing with them the day's catch of slimy, mud- choked mussels. "It's getting more difficult these days, fishermen have to travel farther to catch mussels," neighborhood association head Bowo Lesmana said.
Most of the neighborhood's 97 families are dependent on the bounty of Jakarta Bay, but pollution from nearby factories and garbage collecting on the beach has killed off local mussel farms and pushed back mussel-rich areas.
Off the boats, the green mussels are carried in sacks and dumped on concrete floors where women quickly pluck them off the mud and clean them in water.
With the mounds of mussels to clean off, the women divide their attention between their work and their babies, who are left inside makeshift batik cloth swings overhead.
Small mussels are separated from the larger ones, and all are boiled inside metal drums over a fire, before being sold in auctions at the market.
"The men get at least Rp 16,000 each on slow days. Which is often these days," Bowo said, explaining that on rainy days and during gales, the fishermen stayed home to mend their nets.
Many young men of the community eventually follow in the footsteps of their parents, but with diminishing ocean resources many more are looking for work elsewhere.
However, with unemployment as high as 30 percent, and the people's level of education seldom higher than elementary level, the future of the community's youth looks bleak.
| Aid & development |
Jakarta Post - July 6, 2006
M. Taufiqurrahman, Jakarta – Indonesia, hobbled by graft and slack bureaucratic coordination, has a long way to go before it can adopt a United Nations Development Program (UNDP) plan to offset the negative impact of the liberalized world trade order, economists say.
Tirta Hidayat of the University of Indonesia said a stepped-up corruption eradication drive was a more pressing concern than the various industrial policies contained in the eight-point Trade on Human Terms report launched by the UNDP on Wednesday.
"The business community here considers corruption eradication as the top priority... and industrial policy comes at the bottom of the government's to-do list," Tirta told a discussion held after its release.
The report – the first to link trade and human development for Asia and the Pacific region – recommended the agenda for less developed countries in the region to engage more productively in the international trading system.
The agenda consists of investing for competitiveness, adopting strategic trade policies, restoring a focus on agriculture, preparing a new tax regime, maintaining stable and realistic exchange rates, staying with multilateralism and cooperating with neighbors.
Investing in competitiveness, for instance, can be done by building roads, railways, ports and telecommunication systems aligned with the requirement for transporting goods and services quickly and cheaply to international markets.
The report was made to highlight the imbalance within and among countries that results from further liberalization of international trade, and proposes ways to mitigate its effects.
It highlights the fact that while the Asia Pacific economy as a whole created 337 million jobs in the booming 1980s, it managed to create barely half of that – 176 million – in the 1990s, the period coinciding with trade expansion.
In the case of Indonesia, the results of liberalization have been dramatic, the report said. Indonesia, which was self-sufficient in rice during the 1980s, imported on average 10 percent of its national needs between the period of 1988 and 2000.
It had 5 million soybean producers in 1996, but the number had dropped to 2.5 million by 2001, due to the inroads of imported products, especially from developed countries, the report said.
Senior economist Hadi Soesastro of the Jakarta-based think tank Centre for Strategic and International Studies (CSIS) said that the administration of President Susilo Bambang Yudhoyono would have problems implementing the terms because it first had to grapple with implementing effective governance.
"The UNDP must be applauded for drawing up the action plan but it will remain as such on paper, because the government would have problems coordinating such a comprehensive policy. Coordination is a scarce commodity these days," he said.
In her keynote speech, Trade Minister Mari Elka Pangestu said that imbalance in the world trading system hampered developing countries from initiating human development plans. She urged developed countries to understand their unique position during trade negotiations.
"Developing countries must have the room to still continue to have specific and targeted protection for special products that are protecting their rural livelihood, food security and poverty alleviation," she said.
Bloomberg News - July 4, 2006
Andy Mukherjee – In Siti Maimunah's Jakarta office, on the wall behind her spartan desk, hangs a placard.
"Decolonize Freeport's imperium in Papua," the poster says, its ire targeted at Freeport-McMoRan Copper & Gold Inc.'s Grasberg gold mine, the world's largest, in eastern Indonesia. "Thirty five years is enough."
Maimunah is the executive director of Mining Advocacy Network, which claims to represent the rights of indigenous people affected by extraction of minerals in their natural habitat. She is even angrier than the posters in her office.
"It's a myth that mining brings welfare to the people," Maimunah says, citing as evidence Papua's human-development record, which she says is one of the worst among the 33 Indonesian provinces.
Decisions related to harnessing Indonesia's abundant natural wealth – oil, gas, gold, copper, nickel, tin, coal, rubber, palm and timber – are emerging as a bone of contention between environmentalists and human-rights activists on one side and mining and exploration companies on the other.
The Indonesian government, befuddled by the difficulty of accommodating divergent interest groups in this young democracy, is somewhere in the middle, its balancing act complicated by the growing hunger for resources in China and India.
Investors want the government of President Susilo Bambang Yudhoyono to honor the country's contractual obligations to mining and exploration companies and protect them from what they perceive to be harassment and propaganda, not to mention arbitrary local taxation that has become rampant since regional governments were given a say over mining in 2001.
Legal uncertainty
Investors say they aren't tightfisted about sharing the wealth from booming metal prices. Freeport paid $880 million in taxes, dividends, royalties and other levies to the Indonesian government last year, more than triple what it paid in 2004.
Can't the government use its newfound riches to rehabilitate affected communities after giving them new skills? Maimunah is skeptical.
What's the point of first robbing the livelihood of fishermen by polluting the rivers with scrap and then supplying them with sewing machines? "Who'll go to them for sewing their coats?" Maimunah asks. Let there be no mining, she says, until Indonesia learns to manage it better.
The policy flip-flops concerning mining in protected forests and the resultant confusion are the inevitable "noise" of a democracy where rule of law is yet to be established.
Pent-up anger
This uncertainty is something new for Indonesia, though not wholly unwelcome. In the three decades to 1998, the period in which most of the large mining concessions were awarded, General Suharto's military would suppress any unrest, acting almost like a hired army. Now that the Suharto era is over and the military is in the barracks, the pent-up resentment is coming to the fore.
A human-rights group, acting on behalf of 11 Indonesian villagers, sued Exxon Mobil Corp. in a US court in 2001. The lawsuit claimed that Indonesian troops providing security to the company-operated Arun gas field in the troubled Aceh province committed murder, torture and rape. Exxon Mobil denies the allegations and says it bears no responsibility for the conduct of the forces.
In March this year, a group of protestors in Indonesia's Sumbawa Island burned down an exploration camp set up by Newmont Mining Corp., the world's largest gold miner.
Earlier this year, Newmont settled a civil suit related to pollution claims by agreeing to pay $30 million over 10 years for environmental monitoring and assessment. The government had sought $117 million in compensation.
Hot mud
Foreign investors aren't the only ones under the gun. A May 29 gas leak from an oil well linked to Aburizal Bakrie's business group has caused hot mud to spew out of the ground, flooding houses, factories and paddy fields in densely populated East Java. Bakrie is the Coordinating Minister for Welfare.
There aren't any easy solutions to Indonesia's predicament. Sure, the government needs investments. And yes, any talk of going back on Suharto-era concessions is bound to cause international outrage about lack of protection of property rights in Indonesia. At the same time, a democratic government can't be so preoccupied with its international image that it gives short shrift to the domestic constituency that legitimizes its rule.
Ultimately, the Constitutional Court, which was set up in 2003, will have to balance the interests of investors and communities. The court did try to strike just such a balance in its ruling last year about allowing open-pit mining in protected forest areas.
Challenge for democracy
The root of the conflict goes deep. When it was a Dutch colony, all land in Indonesia that was declared as unused by the state became government property. And this included forest land.
This unfair practice was replaced in 1960 by an explicit acknowledgement of the customary property rights of indigenous communities. But there was a catch: No right could supersede national interest.
As the interests of the nation became alloyed with those of Suharto's family and cronies, indigenous people were easily evicted from their habitats, often without compensation.
Systematic plunder, including rapacious mining, illegal logging and rampant smuggling, has gone on for too long.
With rule of law, Indonesia can avoid the resource curse. Freeport and activist Siti Maimunah don't have to like each other. And neither has to like the government. But they all may be able to coexist.
[Andy Mukherjee is a Bloomberg News columnist. The opinions expressed are his own.]
Jakarta Post - July 1, 2006
Adianto P. Simamora, Jakarta – A study on the economic impact of building six new inner-city turnpikes has fleshed out the reality of the income gap between the rich and the poor.
The results of the study by Trisakti University economist Budi Santoso, which were made public Friday, showed wealthy people would get extra revenue of 0.2 percent from each rupiah invested in the project, while poor people would gain 0.0095 percent. The study took wealthy people to be those with a monthly income of more than Rp 21 million (US$2,234) and the poor to be those earning less than Rp 800,000 a month.
"The Jakarta administration is trying to push through the inner- city turnpikes project but it will only be advantageous for a certain group," Budi told The Jakarta Post.
The study used social accounting metrics to calculate the benefits of levying tolls on road use for people in different income brackets. The administration categorized residents into 10 groups, from people on Rp 21 million and over to people earning less than Rp 800,000 a month.
Budi said the economic impacts of building more turnpikes included faster access for private car owners, to reduced spending on spare parts and fuel. "However, commuters would be stuck using heavily congested roads with no tolls," he said.
Despite criticism from urban planners, transportation experts and environmentalists, the administration is determined to press ahead with the construction of six turnpikes linking Bekasi- Kalimalang-Kampung Melayu; Ulujami-Tanah Abang; Kampung Melayu- Tomang; Pasar Minggu-Casablanca; Kemayoran-Kampung Melayu and Sunter-Pulo Gebang to help reduce traffic congestion.
The total investment required to build the 85 kilometers of roads would be about Rp 23 trillion, or Rp 270 billion a kilometer. The project was offered to investors during the Infrastructure Summit in Jakarta last year.
Budi said the project would provide significant benefits for investors and other sectors, including the automotive and banking industries.
"It's a golden business opportunity, they (investors) just can't resist all that easy money. The big question is, where do the city administration's allegiances lie, with the people or certain groups?" Green activists are dead against the idea of building more turnpikes, saying it would only convince people to drive themselves to work, rather than commute.
They said the increasing number of private cars on the road would worsen traffic congestion and air pollution in Jakarta, the world's most polluted city after Mexico and Bangkok.
The administration is prioritizing the development of an integrated transportation system to encourage people to leave their cars at home and take the bus, the train, the monorail or the MRT. The latter two of which are not built yet.
In 2004, at least 2.5 million private cars and 3.8 million motorcycles traversed the city streets every day, compared to 255,000 units of public transportation.
The administration expects the number of private cars on the road to increase by 12 percent a year, which would far outweigh the number of roads being built. It predicts complete gridlock by 2014, if steps are not taken to improve the situation.
| Armed forces/defense |
Jakarta Post - July 9, 2006
Jakarta – The House of Representatives is to question Defense Minister Juwono Sudarsono and Army Chief of Staff Gen. Djoko Santoso here Monday about the recent discovery of a large arms stash at the house of a deceased two-star general.
The weapons stashed at one of Brig. Gen. Koesmayadi's residences were a serious matter and should be explained to the public, said lawmaker Sutradara Ginting, a member of the House Commission I for defense, information and foreign affairs.
"We (Commission I) will ask about the results of the military police's investigation into the case," he told a radio talkshow on Saturday.
Commission I members have accused Juwono of lacking commitment to reform the military, pointing to the arms scandal as an example of how illegal military businesses have not been dissolved.
The military has been widely criticized for its reluctance to bow to civilian law, which analysts say has hindered the country's reform.
Sutradara, from the Indonesian Democratic Party of Struggle (PDI-P), said the outcome of the arms probe could help reveal other illegal arms businesses in the military.
He said he could understand if the military police were having difficulties investigating the case because it likely involved many high-ranking military officers. Should the military police's investigation not satisfy lawmakers, the House would set up a working committee to help investigate the arms scandal, Sutradara said.
Army chief Djoko Santoso announced last week that his office had discovered 145 rifles, 42 handguns, more than 28,000 bullets, nine grenades and 28 pairs of binoculars in Koesmayadi's house in Ancol, North Jakarta.
Intelligence expert Wawan Purwanto said the military police should gather evidence by dusting the weapons for fingerprints because the key suspect, Koesmayadi, had already died.
"The military police can question Koesmayadi's relatives. However, they may not know about the weapons." Wawan speculated that the weapons may have come from a special operation in Aceh He said the arms could have been supplied from sources in Singapore, Thailand, Taiwan or China.
Jakarta Post - July 7, 2006
Ridwan Max Sijabat, Jakarta – Legislators have accused Defense Minister Juwono Sudarsono of a half-hearted commitment to effecting internal reform of the military, evidenced by a lack of accountability in arms procurement and a recent illegal arms scandal.
They said the arms stash found last week at the home of deceased Army Brig. Gen. Koesmayadi underlined the problems between the Defense Ministry and Indonesian Military (TNI).
Djoko Susilo, a member of the House of Representatives' Commission I on defense, information and foreign affairs, said his commission was disappointed with the minister's performance after almost two years in office.
"The minister's appearing less reformist than the military officials in his office is part of the problem in the stagnant internal reform in the military. The lax rules and the absence of accountability in arms procurements have a lot to do with the minister's failure to enforce Law No. 34/2004 on the TNI," he told The Jakarta Post here Thursday.
He cited as examples the minister's agreement to the purchase of Rp 362 billion (US$39.8 million) Yakhont missile chipsets from Russia by the Navy, as well as the Air Force purchasing Rp 152 billion Sukhoi warplane spare parts from the same nation, despite the commission's strong objections. "According to the law, the Defense Ministry is allowed to ask for consideration from TNI Headquarters and its forces in arms procurement," he added.
Effendi Choirie, a legislator from the National Awakening Party (PKB), noted Juwono's personal capabilities, good reputation and adequate knowledge and work experience in military circles, but believed he lacked the courage to push for the completion of internal reform, including the execution of the one-door policy in the arms procurement.
"The minister should adhere to the one-door policy to prevent military officers from stashing arms and committing corrupt practices in arms procurement. He also should clean his office of active servicemen to uphold civilian supremacy and allow him freedom in making necessary policies and implementing them." Both men believed he was capable of pushing through change if he wished.
They also said the government needed to improve the welfare of military personnel due to the takeover of military businesses and the barring of military involvement in politics.
President Susilo Bambang Yudhoyono should issue a presidential regulation to put the military organization under the Defense Ministry, they added, and appoint civilian professionals to strategic positions in the ministry to help him.
"The portfolio in the ministry needs professionals, and not politicians," said Djoko. He added the police institutional structure should be revamped to be put under the jurisdiction of the Home Ministry to avoid jealousy among military personnel.
Juwono acknowledged that weak supervision at his office had contributed to the absence of accountability in arms procurement, including illegal possession of arms among military officers, but said it was a common bureaucratic problem.
"I confess this is part of the weak supervisory system in all layers of the administration, including in the Defense Ministry and the other ministry I was previously in charge of," he said after conferring the Bintang Kartika Eka Paksi award to Singapore Army chief Maj. Gen. Desmond Kwek at his office. He was previously education minister.
He said he would gradually review the management of arms procurement at TNI Headquarters, the three forces, their units and military partner companies both at home and overseas.
Asked about the probe into the arms stash, Juwono said he entrusted the military police with the task of conducting a thorough investigation.
"If crimes are found in the case, they will be processed by the military police in a military tribunal and a further investigation could be conducted by the National Intelligence Agency." Army chief Gen. Djoko Santoso, who accompanied the minister at the ceremony, declined to give a full update on the progress in the investigation, but said 35 witnesses had been questioned.
He also said Koesmayadi's son-in-law, a commandant of the military police unit in the presidential guard, was confined to his home to prevent interference from "wanted officers".
Jakarta Post - July 7, 2006
Abdul Khalik and Kurniawan Hari, Jakarta – The resumption of nearly full military ties with the United States has been prompted by economic and security concerns rather than the improving human rights record of the Indonesian Military (TNI), experts say.
They urged the military Thursday to continue with efforts to improve soldiers' respect for human rights, saying experiences over the past several years indicated the military still had a long way to go in regards to protecting human rights.
"We haven't seen any improvements at all in the past several years, as many people still link the TNI with conflicts in several areas across the country," right activist Hendardi told The Jakarta Post.
"The discovery of a stash of arms and bullets in the house of a deceased general proves that some TNI officers could still be linked to human rights abuses," Hendardi said, referring to the late Brig. Gen. Koesmayadi.
In its most recent report, Human Rights Watch said the military continued to be guilty of human rights violations, in large part because of its wide-ranging business activities across the archipelago. The group accused the military of using force to protect its business interests.
Hendardi said the military would be wrong to view the resumption of military ties with the US as a testament to an improved rights record.
"We know that the United States is very opportunistic and they lifted the ban (on arms sales) because of economic reasons, not because of an improvement in human rights. So the TNI has no reason to stop respecting human rights," he said.
The US Senate decided late last month to lift all restrictions on the sale of arms to Indonesia beginning next year, paving the way for the full resumption of military ties between the two countries.
The United States imposed restriction on military sales and cooperation with Indonesia over concerns about human rights abuses by the TNI in the former province of East Timor in 1991. The US Congress has imposed restrictions since 1992.
However, the US State Department issued a waiver removing all remaining congressional restrictions on US military assistance to Indonesia last November because the administration considers Jakarta a strategic partner in the fight against terrorism.
An international relations expert at the University of Indonesia, Makmur Keliat, said the resumption was driven more by US interests in making Indonesia a more effective partner in fighting terrorism.
"The United States has a strong reason to strengthen the TNI's capability, because a weak TNI can become a source of national and regional instability that eventually would harm US interests in fighting terrorism in the region," Makmur told the Post.
The second reason for lifting the ban on arms sales, according to Makmur, is purely economical, noting that the US was concerned Indonesia could find other source for military weapons.
He said that since the end of the Cold War, the international market has seen an oversupply of military equipment, and therefore letting go of Indonesia was not in the interests of the US
Separately, Suzie Sudarman, director of the Center for American Studies at the University of Indonesia, said Indonesia should use the opportunity of improving military ties with the US to improve its defensive capabilities.
"With increased access to military equipment from the United States, Indonesia will be more confident in anticipating possible regional conflicts," Suzie told the Post.
She said increasing the country's defensive capabilities was important, especially in the face of China's military modernization, which could pose a threat to countries in the region.
Jakarta Post - July 5, 2006
Ridwan Max Sijabat and Rendy Akhmad Witular, Jakarta – National Intelligence Agency (BIN) chief Syamsir Siregar said Tuesday that military police had found 35 more arms hoarded by late Army officer Brig. Gen. Koesmayadi.
Syamsir, speaking after a closed-door hearing with House legislators, declined to provide details on the find, including the weapon specifications or the location.
However, detik.com newsportal quoted Indonesian Military Commander Air Chief Marshal Djoko Suyanto as saying Tuesday that three of the weapons were found at another of Koesmayadi's residences and the remainder were stored at the Army's Special Forces Headquarters.
Meanwhile, several legislators speculated that the unusual public disclosure of what would usually be considered an internal military matter pointed to fierce political rivalry. "All the arms, partly unregistered and thereby illegal, have been handed over to the Army Headquarters," Syamsir said after the hearing.
The Military Police and its strategic intelligence agency Bais have been ordered to carry out a thorough investigation after Army Chief of Staff Djoko Santoso announced to the public last week the discovery of 145 rifles, 42 handguns, more than 28,000 bullets, nine grenades and 28 pairs of binoculars in one of Koesmayadi's houses in Ancol, North Jakarta.
The 53-year-old, who died on June 25 from heart problems, was a deputy to the assistant to the Army chief for logistics.
Syamsir said the arms were procured by the Army by its partner company but he did not know why they were in Koesmayadi's possession.
"The arms were purchased in phases between 2000 and 2003 and the Army inspector general detected the arms stash in 2002, and recommended the Army chief (Ryamizard Ryacudu) at that time should register them but it was not done," he said. He asked the mass media and the public to be patient while the investigation was underway.
Several legislators, speaking on the condition of anonymity after the hearing, alleged the disclosure of the arms cache was related to a dispute between President Susilo Bambang Yudhoyono and former Army chief Gen. Ryamizard Ryacudu.
They alleged it was intended to discredit Ryamizard who, based on Syamsir's comments, knew about the arms but did nothing about it. Koesmayadi had served under Ryamizard at the Army's Strategic Reserves Command and later at Army Headquarters.
They contended the dispute stemmed from Ryamizard being passed over by Yudhoyono to replace Gen. Endriartono Sutarto as Indonesian Military commander last year.
The legislators also said Syamsir related in the meeting that some of the armaments were allegedly supplied from Singapore with the help of Kusmayanto, the defense attache at the Indonesian Embassy there.
Meanwhile, the chief spokesman for the Indonesian Military, Vice Admiral Moh. Sunarto, said in a press release Tuesday that the military would provide transparent results of its investigation, and punish other officers found to be involved.
"We call on all sides to stop speculating and making groundless allegations which could disrupt the ongoing investigation," he said.
The President held a second special meeting with security officials at the Presidential Office on Tuesday evening, although the Koesmayadi case was not atop their agenda.
Coordinating Minister for Political, Legal and Security Affairs Widodo A.S. said the President in the meeting ordered that the investigation continue, while Djoko Suyanto pledged a thorough probe. He added that the military police have questioned 31 Army officers regarding the case.
Jakarta Post - July 4, 2006
Ridwan Max Sijabat, Jakarta – Military analysts believe a probe into the recent discovery of a huge arms stash at a deceased Army officer's residence will not offer full disclosure of its findings.
University of Indonesia defense expert Andi Widjajanto said the Indonesian Military (TNI) would never reveal the investigation's results if other high-ranking officers were implicated and it jeopardized the institution's standing.
"The military police carrying out the investigation had no problem disclosing details about Brig. Gen. Koesmayadi and his business regarding the discovery of the cache because he has already passed away, but they will not do so with his possible network in the Army and the possible motives behind the secret hoard." He added that investigators would first consult with the Army leadership and expert staff before divulging any findings to the public.
In an unusual public admission of an internal military matter, Djoko announced last Thursday the discovery of 145 rifles, 42 pistols, 28,985 bullets, nine grenades and 28 pairs of binoculars at one of Koesmayadi's houses in Ancol, North Jakarta.
After receiving an official report from Army Chief of Staff Gen. Djoko Santoso last week about the discovery, President Susilo Bambang Yudhoyono ordered a thorough investigation to identify how he acquired the stash and who else was involved. Military analysts and legislators believe the stash was not for personal use of the 53-year-old, who died of heart problems on June 25, but probably indicated involvement in arms trading amid problems of accountability and transparency in procurement in the country's defense forces.
Indonesian Military Commander Air Chief Marshall Djoko Suyanto has said Koesmayadi probably had accomplices in compiling the stash.
Ikrar Nusa Bhakti of the Indonesian Institute of Sciences (LIPI) said it was impossible for investigators to conduct a thorough and objective probe into case, especially due to Koesmayadi's close professional links with former Army chief Gen. Ryamizard Riyacudu. He served under Ryamizard as the assistant for logistics at the Army's Strategic Reserves Command (Kostrad), and later at Army headquarters.
"Investigators won't disclose possible political motives behind the large number of arms because the find was made amid rumors of an assassination attempt planned on the President, who apparently has yet to gain full support from the military."
Andi and Ikrar agreed the military would take quick measures, including to replace officials in strategic positions, to maintain the military's cohesion if investigators found political motives in the case.
Legislators urged the military leadership to have the courage to carry out a full probe and reveal its findings to the public for transparency and professionalism.
Djoko Susilo and Ade Nasution, members of the House of Representatives' Commission I which covers defense matters, said their commission supported the Army chief's move for a transparent investigation.
"Our commission will hold a hearing on July 10 with the TNI chief and Defense Minister Juwono Sudarsono to gain first-hand information on the find and the investigation's result, said Djoko.
Ade said the minister and the military leadership were expected to provide a comprehensive explanation of Koesmayadi's activities, as well as any business or political reasons for the hoard.
Djoko described Koesmayadi as a powerful but troubled figure in the Army, due to his alleged involvement in marking up purchase prices for four MI-17 choppers from Russia in 2003.
"Koesmayadi only had the rank of colonel at the time but his recommendation to appoint PT Putra Pobiagun Mandiri to conduct the purchase was accepted by the Army chief although the military partner company did not meet all the requirements," he said.
Meanwhile, the deputy for special crimes at the Attorney General's Office, Hendarman Supandji, said Monday that Koesmayadi was on the list of witnesses to be interrogated in the chopper scandal.
"We were going to summon him as witness but no schedule had been determined," Hendarman said.
Jakarta Post - July 3, 2006
Jakarta – The discovery of a large arms stash in a deceased Army officer's home last week underscores problems of transparency and accountability in weapons procurement in the Indonesian Military (TNI), experts said.
The executive director of the Institute for Defense and Strategic Studies, Rizal Dharma Putra, said the find at one of the homes of Brig. Gen. Koesmayadi showed the lack of clear policy on procurement.
"Each force is left to adopt its own policy in weapons procurement, both through legal and illegal means," he was quoted as saying by Antara news agency Sunday.
TNI Commander Air Chief Marshal Djoko Suyanto said Friday the investigation into the cache may widen to involve other Army officers, because it was "impossible" for the late Army deputy to the assistant for logistics to have stored or intended to use the weapons by himself.
Defense Minister Juwono Sudarsono said there was "no choice" but to continue his policy to gradually regulate arms procurement. The inclination of the Army, Navy and Air Force to work separately in the provision of their equipment, he said, was more notable following the United States' almost 15-year ban on the sale of armaments and spare parts to Indonesia.
Logistics should ideally be regulated by the Defense Ministry, Rizal said, because it was a civilian institution which could be controlled by the legislature.
Defense expert Andi Widjajanto said Koesmayadi may have been an arms broker for the TNI given his responsibility for logistics. "The weapons found in his house were light weapons usually used by TNI units and the mobile police brigade," Andi said.
A routine TNI inventory of Koesmayadi's possessions made following his death from heart problems on June 25 found 145 rifles, 42 pistols, 28,985 bullets, nine grenades and 28 pairs of binoculars at one of his residences in Ancol, North Jakarta.
President Susilo Bambang Yudhoyono has urged a thorough investigation into the stash, including any link to other high- ranking officers.
Researcher Indria Samego, who has written about the military's wide-ranging involvement in business, believed Koesmayadi would have gained protection among other officers in keeping the hoard, and many more would be arrested in a thorough probe.
The public announcement of the discovery, made last Thursday night in a hastily called news conference, took many by surprise. Rizal said the TNI usually maintained a firm silence on any suspected irregularities within its corps.
Security expert Wawan Purwanto told Antara that if the find revealed a covert operation then the ensuing investigation would have to reveal whether it was for "... national interest, or only for a group of military and national elite".
Koesmayadi, 53, who graduated from the Military Academy in 1975, was formerly the assistant for logistics at the Army's Strategic Reserves Command (Kostrad).
| Economy & investment |
Jakarta Post - July 7, 2006
Jakarta – The business community is unimpressed with the newly launched financial policy package and doubts the seriousness of the authorities in implementing the contents of the policy aimed at reviving business activities in the country.
While the implementation of the previous economic packages on the real sector remain unclear, the business community will not put too much hope in the latest policy, chairman of the National Economic Recovery Committee (KPEN) Sofjan Wanandi said.
"What the business community needs now is concrete action for the real sector. I believe the latest policy is more on macroeconomic issues which have less impact on the real sector," said Sofjan, who is also chairman of the Indonesian Employers' Association (Apindo).
The government and the central bank signed a joint decree Wednesday to improve coordination between fiscal and monetary authorities and help reform financial markets by issuing a financial policy package.
Coordinating Minister for the Economy Boediono said it was expected to accelerate reforms in the banking sector, non-bank financial institutions and in capital markets, as well as enhance businesses' access to capital.
"The points in the package are basically good. But I doubt that it can be implemented like those of the previous packages. What we expect is that the package can help accelerate the reduction in interest rates," Sofjan said.
Although the Central Bank cut its benchmark interest rates by 25 basis points to 12.25 percent Thursday, the rate is still considered too high for the business community. Lower interest rates are needed for businessmen to obtain more affordable loans to expand their businesses.
Improving the investment climate at home and a further cut in domestic interest rates are seen as crucial to help revive business activities, to enable the country to achieve higher economic growth and help resolve the pressing unemployment problem.
Early this year, the government issued more or less similar packages for improving the investment climate and for accelerating infrastructure development. However, no concrete policies have materialized so far from the packages.
Meanwhile, chairman of the National Banks Association (Perbanas) Sigit Pramono said the package would at least help state-owned banks accelerate the restructuring of their massive non- performing loans (NPLs).
"The package will make our job easier because there will be a separation between funds owned by the government and the state banks. This is needed to allow state banks to carry out loan restructuring measures commonly adopted by privately owned banks," said Sigit as quoted by Antara.
According to Sigit – who is also president director of state- owned Bank Negara Indonesia – state banks were having difficulties in providing debt hair cuts on troubled loans because there funds owned by government and the banks were mixed.
Jakarta Post - July 6, 2006
Jakarta – The government and Bank Indonesia (BI) have signed a joint decree to improve coordination between fiscal and monetary authorities and help reform financial markets.
Announcing the package Wednesday, Coordinating Minister for the Economy Boediono said it was expected to accelerate reforms in the banking sector, non-bank financial institutions and in capital markets. It would also enhance businesses' access to capital, he said.
"The package is also aimed at establishing a stronger, more balanced and stable structure in the financial markets," he said.
The writers of the decree expect the country's improving macroeconomy to become a solid basis for an economic recovery, fueled by adequate financing from financial institutions and capital markets.
Boediono said the decree would complement two previously issued packages on investment and infrastructure development. It sought to strengthen the coordination between fiscal and monetary authorities after the "small financial crisis" late last year, he said.
Coordination will occur through the creation of laws on sector "safety nets" and a stability forum, which will draft "financial architecture" and implement an assessment program.
For the banking sector, the package will formulate policy to improve the performance of state-owned banks, through regulatory changes on non-performing loans.
The government will also improve prudential measures for non-bank financial institutions, such as insurance, pension fund and finance companies, and venture capital firms. It will also include protections for policyholders in the insurance industry through a mediation agency.
The package will help improve the liquidity, efficiency and integrity of capital markets, and develop infrastructure to improve price transparency in the trading system.
Boediono said the package would reconfirm the government's privatization policy for state enterprises by setting up a privatization committee and creating a blueprint on strategy.
At present, the government's policy on privatization remains unclear, with some nationalist politicians strongly opposed to the idea. Those in favor of privatization note that most state enterprises have a history of performing badly under the government's management.
The government also plans to draft a law on the National Export Financing Agency to help boost the country's exports.
Boediono said the implementation and monitoring of the package would be coordinated by a team he led, with members including BI governor Burhanuddin Abdullah, Finance Minister Sri Mulyani Indrawati and State Minister of State Enterprises Sugiharto.
Progress on the implementation of the package will be reported periodically to President Susilo Bambang Yudhoyono and the public.
Tempo Interactive - July 6, 2006
RR Ariyani, Jakarta – Entrepreneur groups consider that improvement to infrastructures is far more interesting to investors than the granting of fiscal incentives.
"At the very least, the government should first improve infrastructure because this will significantly decrease production costs," Gunadi Sindhuwinata, Managing Director of PT Indomobil Sukses International, told Tempo in Jakarta.
According to him, complete infrastructure will make it easier for entrepreneurs in scheduling their supply of raw materials as well as marketing. In addition, it will decrease their transportation costs.
Hadi Surjadipraja, Chairman of the Car and Motorcycle Equipment Association, said he considered that road infrastructures must be repaired in order to stimulate investors to invest in Indonesia.
"Investors will be more interested to invest in a region with complete infrastructure," he said.
Faisal Basri, an economist at Universitas Indonesia, is of the same opinion. According to him, the government must prepare and fix the infrastructure. Should the government fail in this respect, then manufacturers must build their own and be granted some tax holidays.
However, according to him, the granting of tax holidays need not be explicitly attached to the Draft Bill of Capital Investment, which is now being discussed by the DPR.