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Indonesia News Digest 33 – September 1-8, 2007

News & issues

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 News & issues

Planned House renovations under massive fire

Jakarta Post - September 8, 2007

Ridwan Max Sijabat, Jakarta – Plans to renovate the House of Representatives and its buildings to the sum of more than US$4 million have come under fire from Indonesia's corruption watch group and various party members.

Opposition to the House's planned Rp 40 billion (US$4.2 million) renovation has flooded in with many saying the plan proves how out of touch the House is from its public.

Alvin Lie, a legislator of the National Mandate Party (PAN), called on House leadership and the House's Secretariat General to cancel the renovations, which he said had never gained any support from any House commission or faction. Alvin also called for a team to investigate who was behind the project.

As deputy chairman of the assessment team to improve the House's performance, Alvin said the plans to renovate were puzzling because no recommendation by his team had been made. He also said no factions or commissions in the parliament had received information on the plans.

"There is no urgency to rehabilitate any building in the parliament – (especially when a) bigger part of Indonesia's people are still living in economic hardship," Alvin said.

Alvin said what was worse was the House had been underperforming. "An investigation must be conducted to find the mastermind behind this project."

Chairperson of the House's Household Affairs Committee (BURT) Indria Octavia Muaja failed to attend a discussion on the issue on Thursday. But she said the renovations would be handled by the House's Secretariat General and covered by the 2007 budget.

"The committee approves of the renovation plan because it has been recommended by the assessment team in charge of improving House performance," she said.

The renovation plan is the second project to spark public outrage. In March this year, the House was forced to cancel a plan by the Secretariat General to purchase laptops worth Rp 11.2 billion for all 550 legislators.

Aria Bima, a legislator of the Indonesian Democratic Party of Struggle (PDI-P), said, like other state institutions, the House had been told to improve its human resources and performance.

"Instead of renovating buildings and purchasing facilities, legislators are in need of expert staff to help strengthen their legislative and budgetary rights and their control function," Aria said.

"The House must be ashamed that a large part of its people are still living in poverty and unemployed. It has been challenged to control the numerous unpopular government policies and to have more state budget allocation on public spendings," he said.

Alvin and Aria criticized House Speaker Agung Laksono, who they said had gone beyond his capacity as speaker to issue controversial statements and decisions. They said they regretted the House had no legal mechanism to replace leaders making controversial decisions.

Aria said, "let the people impose a punishment against legislators violating their mandate through the general election. In the future, secretary generals (of the House) also should undergo a fit and proper test before their appointment."

Fahmi Badoh from the Indonesian Corruption Watch (ICW) said the House had no clear vision to repair its poor performance.

"The bill on free flow of information has been deliberated for seven years and has yet to be approved," Fahmi said. "Also the House has yet to exercise its budgetary rights to approve pro- people state budgets. And all while most legislators are not concerned over the people's poor condition."

Residents stop traffic with all-day blockade

Jakarta Post - September 7, 2007

Multa Fidrus, Tangerang – A group of around 200 protesters blockaded the Pondok Pinang-Serpong turnpike all day Thursday to demand long-delayed land compensation from toll road operator PT Jasa Marga.

The protesters erected a tent and erected bamboo poles and banners on a section of the toll road in Ulujami, Tangerang. Unlike in many rowdier rallies, the protesters chose to forgo chants and speeches in favor of sit-down readings of the Koran.

The rally, which started at around 10 a.m., caused a three- kilometer-long traffic jam on the Bintaro-Pondok Pinang side of the road, with cars forced to turn around and use the Bintaro main road.

Protesters still occupied the section of toll road as of 8 p.m. Thursday night.

The Thursday rally was organized by the family of H. Isa bin Baman, who owned a Rp 3 billion part of the 1,700 square meters of land under dispute. The land was bought by PT Jasa Marga for the turnpike project in 2000 but none of the evicted residents have so far received compensation from the state-owned company.

Tension appeared to reach a critical point early in the day when a number of police officers from the nearby Pesanggrahan subprecinct delivered an ultimatum to the protesters.

"If they don't dismiss themselves within an hour, we will force them to leave the location because they have disrupted public order," local police chief Insp. Parulian Sinaga said.

Sinaga said dozens of officers from the mobile brigade, as well as a water cannon, were on the way to help his officers break up the protest.

Under Sinaga's threat, the protesters, represented by lawyer Andi Rivai, agreed to negotiate with Public Works Ministry official M. Tambunan and Hendro Atmojo, the PT Jasa Marga official responsible for overseeing the Jakarta-Tangerang toll road.

Andi said the negotiations, which were held under the protester's tent, failed to reach any agreement. "We will continue occupying the toll road until PT Jasa Marga pay the evicted families," Andi Rivai said Thursday afternoon.

Many students might drop out

Jakarta Post - September 7, 2007

Bandung – Thousands of students in Bandung city, from elementary to senior high school levels, are at risk of being dropped out of school because they cannot afford to buy textbooks, an education official said Thursday.

"They cannot afford to pay their school fees. Many elementary school children have received assistance from the school operational funds but they can't buy their textbooks," said Bandung Education Office head Oji Mahroji in Bandung on Thursday.

Most of those who are unable to buy textbooks are elementary school students, or around 30,000 students, while those from junior high school accounted to around 22,500 students, with the remaining 15,000 from senior high school.

Oji has proposed Mayor Dada Rosada to allocate Rp 23 billion (about US$2.5 million) in municipal funds for the purpose. Students who are likely drop-outs would each receive Rp 200,000 per year.

"We hope the funds, which have been approved by the municipal council, will be disbursed by the end of September so that the students and immediately buy textbooks and not be left behind in their studies," said.

Class clash mars Malaysia-Indonesia ties

Asia Times - September 6, 2007

Kalinga Seneviratne, Singapore – They share the same Malay cultural roots and Islamic faith, but the poor treatment of Indonesian workers in Malaysia has soured relations between the Southeast Asian neighbors. Political commentators view the growing clash as one arising from class rather than ethnicity or even nationalism.

In the latest flare-up, thousands of young Indonesians burned Malaysian flags and demonstrated in front of the Malaysian Embassy in Jakarta and consulates elsewhere after the physical assault of an Indonesian karate coach by Malaysian police. The fact that the police were hunting for illegal Indonesian immigrants at the time has also inflamed tensions in Indonesia.

Donald Luther Kolobita, 47, was part of the Indonesian team competing in the Asian Karate Championships in Kuala Lumpur on August 24 when he was confronted by four plainclothes police officers late at night outside his hotel. Thinking they were trying to rob him, Kolobita put up a fight before he was overpowered, handcuffed and taken to the police station, where he was savagely assaulted.

Kolobita returned to Jakarta in a wheelchair and the Indonesian team withdrew from the championship. The Speaker of Indonesia's parliament, Agung Laksono, called the attack "an arrogant act on the part of the Malaysian police against an Indonesian citizen", and President Susilo Bambang Yudhoyono demanded that the Malaysian police apologize.

On Friday, Malaysian Police Chief Musa Hassan sent a written apology to Kolobita, which was hand-delivered to his hospital bedside in Jakarta by Malaysian Ambassador Zainal Abidin Zain. But anger in Indonesia has not yet subsided, with young activists continuing their protests outside the Malaysian Embassy.

The episode represents the latest in a series of complaints about the ill-treatment of Indonesians in Malaysia, especially among migrant workers. There are almost 600,000 officially documented Indonesian workers in Malaysia and, according to unofficial estimates, there may be an equal number of illegal workers in the country.

An estimated 27% of the Indonesian legal workers serve as domestic maids. A spate of documented abuse cases against domestic servants has intensified Indonesia's anger over a heavy-handed crackdown on illegal workers.

"Malays in Malaysia always think of Javanese [Indonesians] as ethnically inferior compared with them," said Ade Armando, a communications lecturer at the University of Indonesia. "This is justified by the fact that the Indonesians they mostly see are laborers or maids."

Yap Swee Seng, executive director of the Malaysian human-rights group Suaram, argues that the anger expressed by Indonesians is indicative of the "long-accumulated anger against Malaysia for its rampant abuse, exploitation and human-rights violations of Indonesian migrant workers". He contends that the Malaysian government is not committed to stopping abuse.

"There have been too many abuse cases with almost total impunity enjoyed by the perpetuators," Yap said. "The majority of the Indonesian migrant workers have been employed in the '3-D' jobs – dangerous, discriminatory and degrading. Therefore, there are widespread discriminatory and arrogant attitudes against the migrant workers in general."

Just a few days before the attack on Kolobita, the Indonesian government, prompted by the death of a 24-year-old maid at the hands of abusive employers, stepped up pressure on Malaysia to take swift action against the broad ill-treatment of Indonesian workers. In the past three months, there were two cases of Indonesian maids being rescued by firefighters after they were spotted hanging from window ledges of highrise condominiums trying to escape their abusive employers. Maids often suffer and report physical attacks, but prosecutions are rare.

Irene Fernandez, director of Tenaganita, a leading migrant workers' rights group, said this year that on average 150-200 migrant workers, the majority of them maids, seek refuge at the Indonesian Embassy in Kuala Lumpur every month. She blamed both the Malaysian and Indonesian governments for failing to protect the rights of migrant workers.

"As long as the Malaysian government does not address this fundamental issue, such incidents will continue to happen," she told Al-Jazeera television in a recent interview.

Yap agrees. "Domestic workers are among the most abused people in Malaysia, as they work in isolated and insulated environments," he said. "They should be allowed one rest day in a week and be allowed to meet with their friends, and join or form trade unions, so that they will have a support system."

Yap argued that there should be "a total reform in the policy and legal system in Malaysia in dealing with migrant workers" and that without such reforms the Malaysian government "will be equally guilty by its inaction against such human-rights violations".

Armando said: "I do not think we as a nation are so angry with Malaysia." He argued that rather than protesting against Malaysia, young people in Jakarta should protest to the Indonesian government for "failing to provide our people with the type of job opportunities that are offered in Malaysia".

He said the two countries' middle classes have considerable mutual respect and noted that Indonesian cultural products can be found everywhere in Malaysia. "I believe, to some extent, the Malaysian younger middle classes envy the type of freedom enjoyed by their counterparts in Indonesia," he said.

(Inter Press Service)

Special park for protesters to be built in redesigned parliament

Detik.com - September 5, 2007

Umi Kalsum, Jakarta – The master plan for the redesign of the House of Representatives (DPR) building will accommodate protesters who wish to convey their wishes to the representatives of the people. They are to be provided with a special plot of land.

"So later they won't need to demonstrate on Jl. Gatot Subroto anymore so it won't cause traffic jams and create any more problems", said United Development Party faction secretary Lukman Hakiem when speaking with Detik.com on Wednesday September 5.

A space for protesters could be built on the Taman Ria park which is part of the DPR's land.

"Yeah, well what else can we do, before [they were] given a place behind [the DPR], [but they] didn't want it because [they couldn't] be seen by people. The plan is that if the Taman Ria park which is owned by the DPR can be used, we can make a area for demonstrations. So [they] don't [have to demonstrate] on the side of the road anymore," said Hakiem.

In addition to this there are also discussions about building a recreational park in the vicinity of the DPR. This is being developed by the DPR's performance team led by DPR speaker Agung Laksono before the parliament goes into recess. (umi/nrl)

[Translated by James Balowski.]

Clash between Papernas and right-wing thugs narrowly averted

Okezone - September 3, 2007

Bandar Lampung – Police have finally succeeded in preventing a potential physical clash between members of the Pancasila Youth and the National Liberation Party of Unity (Papernas) in front of the Rimbawan Hostel on Jl. Diponegoro in the South Sumatra city of Bandar Lampung.

Papernas members, who had held a long march from the Merah Enggal Square and stopped right in front of the Rimbawan Hostel, were content to give political speeches in front of the building.

Police meanwhile had mobilised four company level units from the Bandar Lampung municipal police, the Lampung district police, the Mobile Brigade, intelligence personnel and two water cannons in front of the building.

In a speech, Papernas general secretary Agus Jabo Priyono apologised because the meeting that was to have taken place inside the building would have to be held on the edge of Jl. Diponegoro. "This indicates that the state is limiting the participation of poor people [organised] under Papernas", said Priyono on Monday September 3.

Papernas's presidential candidate, Dita Indah Sari, said that the loss of Indonesian's sense of nationalism at the moment is a consequence of the failure of President Susilo Bambang Yudhoyono's economic policies. (aji aditya junior/trijaya/fmh)

Notes:

Pancasila Youth (Pemuda Pancasila) was formed by the army in October 1959 by the then military commander General A. H. Nasution, ostensibly to uphold the state ideology of Pancasila, but under former president Suharto the organisation became an association of notorious thugs and petty criminals who carried out dirty work on behalf of the regime.

[Translated by James Balowski.]

Indonesia a far-fetched idea for victims of development injustice

Jakarta Post - September 1, 2007

Tony Hotland, Jakarta – Decades of development of injustices and resurging sense of ethnicity may serve as indications that Indonesian unity as a nation was still far-fetched or even losing its ground, a group of social observers said Friday.

They were having a discussion after a book launch by Riwanto Tirtosudarmo, an Indonesian Institute of Sciences (LIPI) researcher, titled Looking for Indonesia: The Demography of Politics post-Soeharto.

The observers cited the way former president Soeharto forged his idea of nationalism by establishing a "host culture" in a very centralized approach of development, leaving others outside Java with an outsider feeling.

"A gap in development and the powerful prevalence of a host culture made everyone outside Java feel they weren't Indonesians. They came to Java and learned the local culture just to get that supposed feeling of being Indonesian," anthropologist Moeslim Abdurrahman said.

He said Soeharto's authoritarian regime and his way of making Javanese culture as the face of Indonesia had left non-Javanese no imaginations of what Indonesia could be.

University of Indonesia sociologist Francisca "Ery" Seda said the country was steered by a sole authority during the regime and the state was too dominant in defining Indonesia – a nation of thousands of islands and hundreds of ethnics and languages.

"Did the Acehnese know who (woman hero) Kartini was?" she said.

"Did the Papuans know what Majapahit was?

"They got this only in what they saw as Indonesian school."

Otto Syamsuddin from rights group Imparsial said Indonesia belonged only to those "within the asphalted yards", referring to those living in major cities that enjoyed the most of decades of development.

"We've begun deserting our unity and going for our diversity," he said. "It's time we start building (the nation) based on our unity again."

LIPI political analyst Hermawan Sulistyo said such a view was evident in the fact that many new regions were created based on the ethnic identity. "It's deplorable that while we're still trying to unify this nation after the fall of Soeharto, we're seeing new regions created simply based on ethnicity," he said.

The current repercussions of such ethnic consciousness, they said, included the resurging calls for natives as the leader to- be in local election campaigns.

"The issue of being a region's native has become a real issue in politics," Moeslim said. "When one can't stand under the house of nationalism, they go back to their ethnic house."

Otto cited an example when transmigration to other regions used to be smooth and conflict-free, but now the local people immediately were possessed by fear newcomers would take over the economy and politics resources there.

An exit from the situation was an issue of even and just development across the country, they said.

"The approach to all conflicts isn't cultural, but economic fairness. Culture is given in Indonesia, and any conflicts now is basically an issue of economic and social injustices," Ery said.

Moeslim added "only when the government can supply and meet the basic needs of the citizens will the feeling of belonging to Indonesia flourish".

Yogyakarta activists launch police watch

Jakarta Post - September 1, 2007

Sri Wahyuni, Yogyakarta – In a bid to stamp out corruption within the police force, a group of activists officially launched Thursday the Jogja Police Watch (JPW).

Held at the Yogyakarta Legal Aid Institute, the launch of the JPW was attended by representatives from the Yogyakarta Police Headquarters and Bantul Police.

"We don't want to create a conflict with the police. We just want to be a positive and critical partner to them," activist Sahlan Said, who is also a former judge, said at the launch.

The secretary general of the JPW, Irawadi Uska, said the group was established in response to growing public concern regarding the performance of the police force. The JPW is the first community institution to be established in Yogyakarta to specifically monitor the performance of the police.

"At first we will concentrate of monitoring traffic services, considering this seems to be a primary concern of the community," Irawadi said. Police responsible for the issuance of driving licenses and investigating traffic accidents will be among those initially monitored by the organization.

"JPW representatives will monitor police when they conduct unannounced license inspections and when they issue licenses, among other police activities," Irawadi said.

Dominikus Pardiyono from the Legal Unit of the Yogyakarta Police said the establishment of the JPW in Yogyakarta was a positive step. "I hope the JPW will be a good partner for us in our efforts to uphold the law in Indonesia in general but especially in Yogyakarta," he said.

 Aceh

Swearing in of Aceh regent turns into clash

Jakarta Post - September 2, 2007

Apriadi Gunawan, Medan – The swearing-in ceremony for the new Southeast Aceh regent turned into a clash between protesters and the police Saturday, leaving at least 26 people injured.

The new regent, Hasanuddin, and his deputy, Syamsul Bahri, were installed by Aceh Governor Irwandi Yusuf as scheduled on Saturday, despite controversy.

On Friday, Southeast Aceh Legislative Council Speaker Umaruddin Desky asked Home Minister Mardiyanto to cancel the inauguration ceremony. During a hearing at the House of Representatives in Jakarta, he said the ceremony should be postponed until all the legal problems surrounding the election of the pair had been resolved.

Saturday's clash resulted in some of the guests attending the ceremony fleeing to safety. But the protesters were blocked by the police who arrived to secure the scene.

At least 20 protesters and six police officers were injured in the clash. The Southeast Aceh Police also detained 12 protesters involved in the clash.

The protest leader, Nawi Sekedang, condemned the police for what he termed their "repressive" approach to the rally. He said the protesters had been airing their views against the swearing-in of the pair as Hasanuddin had not received the approval of the council and the regency's Independent Elections Committee (KIP).

"Several people were beaten up, and there were even some who were hit by rubber bullets. We also found two real bullets at the scene. We're still looking into this," Nawi told The Jakarta Post by phone Saturday from Medan, North Sumatra. He said the injured victims were currently being treated at a number of clinics or at home.

Meanwhile, Southeast Aceh Police chief Adj. Sr. Comr. Tursilo said Saturday the police had detained 12 protesters. He said the police were still questioning the protesters but they would be released if they were found not to have been involved in the clash.

When asked about the alleged violence, Tursilo said the police had no other option as the protesters had resorted to anarchy while trying to stop the regent's swearing-in.

"Our job is only to secure the swearing-in ceremony. If there are people who try to disrupt or stop it, we have to take action," he told the Post.

He said the ceremony had gone ahead as scheduled, but it had not been attended by Southeast Aceh Legislative Council leaders and members as they claimed the move was illegal.

The controversy began when Armen Desky and running mate Salim Fakhri were named the winners of the direct regency election in December 2006. Armen and Salim were declared the winners by the Southeast Aceh Independent Elections Committee (KIP) on May 16 this year. However, the regency-level committee was then dissolved by the provincial office without explanation.

The Home Ministry then issued a decree naming Hassanudin and Syamsul the winners. However, the council is insisting the winners of the direct regental election last December was Armen and Salim. The pairing was supported by Golkar and several other political parties.

The newly installed regent and his deputy were supported by the Indonesian Democratic Party of Struggle (PDI-P), the National Awakening Party (PKB) and the Indonesian Unity Party (PSI).

 West Papua

Indonesian police continue targeting Papuans, says ELSHAM

Radio National New Zealand - September 5, 2007

The human rights organisation ELSHAM says Indonesian security forces continue to target Papuans and abuse their human rights.

ELSHAM says riots have erupted in the city of Nabire and that shops and offices in the city's heart have all been closed.

In recent weeks there have been at least three killings of local Papuans as well as alleged beatings of Papuans by police.

ELSHAM's Paula Makabori says clashes between Indonesian migrants and Papuans have become more frequent with the increase in the area of Indonesian security forces.

"So the brutality of the police is still going on. There is no respect for the law and also no respect for human rights, human dignity. So they face Papuans like potential targets for threats. And it's simple for West Papuans to be killed everywhere."

Leaders want new province established in Papua

Jakarta Post - September 6, 2007

Ridwan Max Sijabat, Jakarta – A group of Papuan public figures has called on the government to restart discussions on the establishment of Central Papua province in order to speed up development programs and address poverty in the region.

"We are coming to Jakarta to ask the government and the House of Representatives to re-deliberate the establishment of Central Papua province, whose establishment, along with that of West Papua province and several other new regencies, was stipulated in Law No. 45/1999," the chairman of the Team for the Reactivation of Central Papua Province, Norbert Mote, said in a meeting with the House's Commission II on home affairs here Wednesday.

Norbert said the team had lobbied the Home Ministry and prepared facilities and infrastructure, including land and buildings in Nabire, which they want to be the capital of the province.

He said the 2003 Constitutional Court verdict endorsing West Papua province and neglecting Central Papua was regrettable.

Central Papua lacked an effective government at the time, he said. "From all economic, political and territorial perspectives, Central Papua is feasible for development into a new province and it looks unfair if only the existence of West Papua province is accepted," he said.

Besides West Papua and Central Papua, the Papuan people have also proposed the establishment of South Papua and Southeast Papua provinces under the 2001 Special Autonomy Law to speed up economic and social development programs in the country's easternmost region.

Meanwhile, commission chairman E.E. Mangindaan said the commission understood the Papuan people's demands and would discuss them with newly appointed Home Minister Mardiyanto.

"We will discuss this matter with the home minister... and what the Papuan people demand is acceptable in line with the increasing calls for the division of Papua into several new provinces," he said.

 Human rights/law

Mafia still throughout Supreme Court: Expert

Jakarta Post - September 7, 2007

Jakarta – There remains a low rate of reform in the Supreme Court and the mafia still exists within its ranks, experts said Thursday.

Mahfud MD, a legislator from Commission III with the House of Representatives, said the court's reform process had failed because of judicial corruption and the court's mafia.

"If reform is measured by the process of cleaning out the mafia, then we must say the Supreme Court under Bagir Manan has failed to reform," he said. "The case of Harini Wiyoso is an example and proved mafia practices still exist."

Harini Wiyoso was a lawyer for Probosutedjo, the step-brother of Indonesia's former President Soeharto. Harini tried to bribe Chief Justice Bagir Manan and several other judges in 2005.

Law professor with Airlangga University in Surabaya Jacob Elfinus Sahetapy said, "In order to see a full reform of the Supreme Court, the Judicial Commission must be reinforced so it can discipline corrupt judges".

"But the commission cannot interfere in judges' rulings... internal supervision is needed. "The roles of the Justice Honors Council and the Supreme Court Honors Council should be revised (to avoid) overlaps."

Elfinus also said mafia practices were impossible to trace. "And it's getting darker and darker inside the court, with no obvious reform."

The Constitutional Court last year ruled members of the Judicial Commission were not entitled to supervise Supreme Court justices and Constitutional judges. The court also ruled the House of Representatives and the government needed to amend the Judicial Commission Law.

Mahfud said, "With no Judicial Commission authority to (supervise), it will be very hard to (monitor) the court".

To avoid overlaps in the law, the House would finish synchronizing the Judicial Commission Law, the Supreme Court Law, and the Constitutional Court Law by next month.

"Some Commission III members have suggested the Judicial Commission supervise the court," Mahfud said. "But this cannot be fully accepted as it would be impossible if the court itself did not have the authority to manage internal supervision."

The Judicial Commission, established in 2005, would focus on three programs over the next five years, including researching court rulings, investigating judge behavior and advocacy for victims of judicial mafia.

Less information is better, government stands firm

Jakarta Post - September 7, 2007

Jakarta – The government defended its stance Thursday to exclude public access to state enterprises, saying there existed already several regulations around the transparency of state-owned companies.

"There have been so many laws controlling state enterprises, including the state enterprises law, the corporation law and the capital market law," said Suprawoto, Head of the Public Information Agency at the Information and Communication Ministry.

"If (another law on state-owned companies) is included in the public information bill, these firms will become figuratively naked."

He said if state companies were included in the new bill, business strategies may be revealed to private companies, which could increase competition.

The public information bill would also see government-related information made open to the public to encourage good governance and anti-corruption efforts.

But coordinator for the Freedom of Information Coalition Lobby, Agus Sudibyo, said there was no reason for state enterprises to be excluded from the bill. "They fulfill all requirements as public institutions."

He explained there were two criteria for companies to be included as public institutions. "Their establishment and roles are regulated by a law and they are using and managing public funds," Agus said.

"Besides, we all know that there has been rampant corruption in the state-enterprises and most of them are experiencing losses. This will automatically burden the state budget to cover their losses."

He said this was reason enough for the public to want to know more about state-owned companies and their operations. "If the government is afraid that those companies will become naked, then they just (need to) specify in the law what things have to be closed to the public," Agus said.

Head of House Commission I overseeing defense and information affairs Theo L. Sambuaga said the legislators and the government had not decided either way to exclude state enterprises in the bill. "We will further discuss it in the next meeting, but we will stick to the key principle of maximum access and limited exception for public information."

Theo said they would also need to discuss the transition period for government institutions to adapt to the new law. "The government proposes three years but we want only two years," he said.

"We will also discuss punishment for government officials who violate the law. We have not decided whether to use criminal or administrative punishments."

He said they were discussing what information needed to be prohibited from public access and he was optimistic the bill would be passed by the end of the year. It has been "in discussion" for one-and-a-half years.

Komnas to continue Talangsari probe

Jakarta Post - September 6, 2007

Jakarta – Chairman of the National Commission on Human Rights Ifdhal Kasim said Wednesday the commission was committed to continue investigations into the 1989 shooting spree at Talangsari village, Lampung.

The case has remained unsettled but Ifdhal said the commission's new board would work toward making the case clearer.

"One thing is for sure, we'll summon all people implicated in the (Talangsari) case," Ifdhal told detik.com. He said the incident saw hundreds of people killed.

The commission's previous investigation team included Zoemrotin K. Soesilo, who has repeatedly said she had problems summoning people implicated in the case.

The case centered on a Feb. 7, 1989 raid of a group of homes in Talangsari by soldiers from Lampung's Garuda Hitam Military Resort Command. The soldiers raided the homes because residents there were allegedly attempting to set up an Islamic state.

Retired Army officers seek justice

Jakarta Post - September 6, 2007

Jakarta – A group of retired Army officers from Makassar, South Sulawesi, has flown to Jakarta to seek legal support from the Commission for Missing Persons and Victims of Violence (Kontras).

They said they want compensation after being recently forced to leave their houses by the Wirabuana Regional Military Command.

Group spokesman Herman Tandek said Wirabuana Commander Maj. Gen. Arief Budi Sampurno ordered the forced eviction of retired personnel from homes they had occupied for years.

Abusaid Pelu from Kontras said the Indonesian military had to compensate the retired personnel if they wanted to use the land for purposes other than housing. "This case shows the military doesn't care about their personnel," he said.

No settlement in civil case against Indonesia's Suharto

Agence France Presse - September 4, 2007

Jakarta – Indonesian state prosecutors have failed to reach an out-of-court settlement with former dictator Suharto over a civil suit they filed against him in July, they said Tuesday.

They are seeking the recovery of more than 1.5 billion dollars in state assets and damages for the alleged channelling of funds from a charity Suharto chaired to companies linked to his relatives.

State prosecutor Dachmer Munthe said that a 30-day mediation period did not produce a settlement as Suharto was adamant that he had not broken the law.

"Mediation failed as they (Suharto's legal team) did not accept that there was a violation of the law," Munthe told AFP, adding that this meant the case would go to court.

Suharto's lawyer Juan Felix Tampubolon confirmed to AFP that the team did not agree any assets should be returned.

The civil suit represents revived efforts by the government of President Susilo Bambang Yudhoyono to bring the former strongman to justice, although analysts are sceptical the case will succeed.

A long-running criminal case against Suharto was finally abandoned in May last year on health grounds, triggering widespread criticism of Yudhoyono, who was elected on an anti- corruption platform.

Suharto stepped down after more than three decades of rule in 1998. A successful case against him would be seen as a symbolic step to improving Indonesia's dismal corruption record.

Indonesia is consistently rated as one of the most graft-prone nations in the world, a situation largely seen as a result of Suharto's rule.

 Munir murder

Pressure mounts to speed up Munir probe

Jakarta Post - September 8, 2007

Desy Nurhayati, Jakarta – With the emergence of new evidence in the murder case of Munir Said Thalib, pressure is mounting for a thorough and rapid investigation of the circumstances surrounding the human rights activist's poisoning death.

To attract international attention to the case, activists are scheduled to hold a lecture in Utrecht, the Netherlands, on Aug. 13, campaigner Usman Hamid said Friday.

"This lecture is expected to uphold the support of the international community, including the United Nations and the European Union, (both of) which have closely monitored the progress of the investigation," Usman, from the Commission for Missing Persons and Victims of Violence (Kontras), told The Jakarta Post.

Usman plans to attend the lecture along with Munir's widow, Suciwati, and activist Asmara Nababan.

"The European Union commission has urged President Susilo Bambang Yudhoyono to resolve the murder. It has also put the case on its (list of) priorities (regarding) human rights violations," Usman said.

He said Utrecht lecture was part of the Reflection on three years of Munir's death movement held by activists to commemorate the third anniversary of Munir's death, which fell on Friday.

On Friday, as many as 1,000 activists grouped in the Solidarity Alliance for Munir and Democracy staged rally in Jakarta to honor the activist, who died of arsenic poisoning on board a Garuda Indonesia flight to Amsterdam on Sept. 7, 2004.

The protesters started from the Independence Monument in Central Jakarta and marched to the State Intelligence Agency (BIN) headquarters in South Jakarta.

Facts that have emerged in the Munir court sessions so far have pointed to BIN, and in particularly four of its high-ranking officials, as masterminding Munir's murder.

The officials, under wide scrutiny in the national media, are former BIN head AM Hendropriyono, BIN deputy head M. As'ad, first deputy Manunggal Maladi and fourth deputy Muchdi PR.

The alleged links between BIN and the murder include dozens of phone conversations between former Garuda Indonesia pilot Pollycarpus Budihari Priyanto – who was later convicted and then acquitted of Munir's killing – and Muchdi prior to the murder.

It was later also discovered that Garuda had allowed Pollycarpus to join Munir's flight after a direct request from BIN through Garuda's former president director Indra Setiawan. The request was allegedly made in writing, but the letter was recently reported to have been stolen.

This latest revelation emerged in court on Aug. 22 when prosecutors played a recorded phone conversation between Pollycarpus and Indra.

A man named Raden Mohammad Padma Anwar, or Ucok, told police under questioning that he was a BIN agent who had been ordered to bewitch Munir. Ucok has also testified he once saw Pollycarpus at the parking lot of BIN headquarters.

Another man named Sentot Waluyo has also been alleged to have been involved in a plot to kill Munir. BIN has denied Ucok or Sentot are agents of the organization and says it never wrote a request for Pollycarpus to be on Munir's flight.

Finding truth in the Munir murder case three years on

Jakarta Post - September 7, 2007

Aboeprijadi Santoso, Amsterdam – The third anniversary of the assassination of Indonesia's most well-known human rights activist, Munir Said Thalib, has seen the public at home and abroad still guessing how the fatal poisoning happened and was planned.

That public is however thinking much less about who did murder him and who the planner(s) were. But given the issue's possible political implications, the queries cannot be left unanswered for too long.

Munir, on board a Garuda flight, was found dead a few hours before he arrived at Amsterdam on Sept. 7, 2004. He was poisoned, it's thought, sometime after he entered the immigration zone at Jakarta airport, but most probably at Singapore's Changi. His killer used a massive, lethal dose of arsenic.

The tragedy might not have happened had a few things been done differently however.

The fact that Munir's plan to study in the Netherlands had been known for some time – and that he time and again canceled his departure – would have provided his murderers the time they needed to execute the crime.

According to early investigations (the TPF Munir), Munir's murderers had four different scenarios in mind. Strangely, however, their final plan was implemented clumsily. Munir's departure date of Sept. 6 had apparently come unexpectedly, so plans had to be rearranged, possibly improvised, hastily.

It was that plan, in any case, that has seen members or individuals associated with the National Intelligence Agency (BIN) implicated, although they have all denied this. The public now assumes the agency – or its officials – must somehow have played a key role.

Thanks to media reports, campaigns at home and abroad by Munir's widow and friends and recent UN officials' responses, this murder case is widely known and queries could potentially become a time bomb.

For more than two years, the police and judicial processes have achieved far too little to unravel the case. President Susilo Bambang Yudhoyono said the case would be a "test of our history". But some have suggested that, should the President's administration fail the "test", his statement could work as a boomerang.

Significant changes have occurred, however, particularly in the way the police handled the case after the new Attorney General commissioned a new police investigative team. The result has been encouraging, but like an arrow that was released, we know, or assume, it was released in the correct direction. But we cannot know whether it will arrive at the right target.

Optimists would let the law take its course. But suspicion abounds, given the distorted legacy of the rule of law and alleged infiltration of the intelligence apparatus within the police and judicial institutions.

The Munir case may remain politically delicate and is likely to become an issue that would taint the images of some powerful figures. It may even jeopardize their positions, as the country is about to prepare new laws for parliamentary and presidential elections in 2009.

There is nothing new about games the intelligence agencies play in such cases, given the interconnectedness with state and political processes between the military and police apparatuses during Soeharto's New Order.

BIN chief Syamsir Siregar once suggested a similarity between the predicament of the agency he led and the Army intelligence services during the later years of President Sukarno's rule – when they had to compete with the state intelligence agency BPI led by then pro-Sukarno foreign minister Dr. Soebandrio.

One can only guess what Syamsir really meant. In any case, it points to possible shadow games with some interests that may intervene the present politico-judicial processes. As Munir's friends and other rights activists recently urged, it's time to reform the bewildering elements of intelligence within the military, in particular the BIN agency itself, to safeguard the country.

General elections today may no longer be the "elections of generals" they used to be during Soeharto days, but Munir's critical attitude against some military institutions is an important reminder.

In 1997, Munir became prominent because of his tireless efforts to deal with cases of missing activists. Now, as he himself became the victim of mysterious assassination, the Munir tragedy should mark a defining moment for the struggle to clean up the state.

And questions need to be answered – why was Munir targeted, why arsenic, why a flight to Europe and why precisely in (early) September 2004? No doubt, in all of these, full and open cooperation by BIN and BIN personnel are indispensable.

Ironically, state intelligence agencies have remained untouched by the civil society's pro-democracy waves of protest and reform since 1998. The struggle of civil societies that led to the fall of communist regimes in Eastern Europe in 1990s, has been marked, almost without exception, by protests targeting a state's secret polices and intelligence agencies.

Unfortunately, we needed the Munir tragedy to realize that such a revolution never really hit Soeharto's New Order.

[The author is a journalist in Amsterdam.]

Protesters call on Yudhoyono to exercise authority in Munir case

Detik.com - September 7, 2007

Anwar Khumaini, Jakarta – Exactly three years since Munir's death, one thousand people from the Solidarity Alliance for Munir and Democracy (Asumsi) gathered at the Proclamation Monument on Jl. Proklamasi in Central Jakarta on Friday September 7.

From there they will march to the National Intelligence Agency (BIN) offices on Jl. Seno II/BI in the East Pejaten area of South Jakarta to hold another action.

During the protest they called on BIN to take responsibility for Munir's murder. They also brought 10 wreaths of flowers representing their sorrow over the death of Munir, human rights activists that died in 1998 and other activists that have been disappeared.

The protesters had been arriving in waves since 1pm in private cars, on public transport, motorcycles and Metro Mini busses. They wore read and black T-shirts with a picture of Munir and the writing "Munir was killed because he was right".

In speeches in front of the Proclamation Monument the demonstrators urged President Susilo Bambang Yudhoyono to use his position to "open up" institutions under his authority.

They also called on the head of BIN, as a state institution to be transparent and cooperate with law enforcement agencies to uncover the thorn in the side of the agency that has damaged BIN's image in the eyes of the public.

At 1.30pm, the protesters set off for the BIN offices watched over by 10 police officers. (ziz/nrl)

[Translated by James Balowski.]

Munir's window demands that BIN 'cleanse' itself of murderer

Detik.com - September 7, 2007

Anwar Khumaini, Jakarta – Three years have passed without any progress being made on who murdered human rights activist Munir. In a speech, Munir's widow Suciwati demanded that the National Intelligence Agency (BIN) be "cleansed" of Munir's killers.

"We came here not for a confrontation. But to assist in cleaning up this institution. Whoever the perpetrator is, they must be taken before the courts. We believe that there is thorn in BIN's side that must be removed", shouted Suciwati.

Suciwati was standing on top of an open pickup trick and speaking through a megaphone in front of the BIN offices on Jl. Pejaten in Jakarta on Friday September 7.

Also present were around 1 thousand people from the Solidarity Alliance for Munir and Democracy (Asumsi) who called on BIN director Syamsir Siregar to cleanse the organisation of Munir's murderers.

"We came not because we hate BIN. But precisely as a form of our love for BIN", shouted Suciwati who was wearing a black T-shirt with a picture of Munir and the words "Munir was killed because he was right". (sss/ana)

[Translated by James Balowski.]

BIN officials refuse to accept `flowers for Munir'

Detik.com - September 7, 2007

Anwar Khumaini, Jakarta – A bunch of roses and a wreath of flowers symbolising the death of Munir was handed to officials on guard in front of the National Intelligence Agency (BIN) offices. Not one of them however wanted to accept them.

"They don't even want to accept the flowers, let alone investigate the Munir murder case", said the coordinator of the action angrily in front of the BIN offices on Jl. Pejaten in Jakarta on Friday September 7.

Participating in the action were some 1 thousand people from the Solidarity Alliance for Munir and Democracy (Asumsi).

In a speech meanwhile, the coordinator of the Commission for Missing Persons and Victims of Violence (Kontras) said that they had come there not to attack BIN but to ask that people who commit villainous crimes against humanity be immediately taken to court.

The action brought traffic to a standstill on both lanes of the road with hundreds of local residents watching the demonstration. Even though they were prevented from approaching by an iron fence and the railway tracks between the residential area and the main road in front of BIN, the spectators also joined in enthusiastically shouting "Viva Munir!".

Tight security was maintained by police while inside the BIN offices security personnel in light-green uniforms carried truncheons. At around 3pm the protesters left the BIN offices and headed off to the State Palace on Jl. Medan Merdeka Utara in Central Jakarta. (sss/ana)

[Translated by James Balowski.]

Peaceful action in Surabaya remembers murder of activist Munir

Tempo Interactive - September 7, 2007

Sunudyantoro/Rohman Taufiq, Surabaya – Today, three years ago, human rights activist Munir died on a flight from Jakarta via Singapore to Amsterdam. A peaceful action commemorating his death was held in front of the State Grahadi Building in the East Java provincial capital of Surabaya on Friday September 7.

The 40 or so people that took part in the action wore black T- shirts and prayed that the Munir murder case be solved quickly. They also reminded the public to continue supporting the struggle to uphold freedom and to hold human rights in the highest esteem.

Action coordinator M Saiful Aris from the Surabaya Legal Aid Foundation said that a final resolution to Munir's murder had entered an important round, that is a judicial review of the suspect Pollycarpus Budihari Priyanto. The various pieces of new evidence presented by the public prosecutor has captured the public's attention. "Certainly there are many issues and intelligence games behind Munir's murder", he said.

Nevertheless said Aris, it still feels as if the judicial review will be inadequate to uncover all of the plots and exactly who should take responsibility for Munir's murder. Aris also said that we still have a lot of homework that must be done together in order to force the state to be serious about and have the courage to seek and ask for responsibility for Munir's murder.

Aris asserted that for the community of human rights defenders, Munir's murder has more meaning that just being aimed at murdering Munir and silencing his criticisms. "It indicates that there are excessive signs of resistance on the part of certain groups over the presence of critical groups and efforts to promote the defense of human rights", he said.

[Translated by James Balowski.]

Munir murder - Yogya activist call for BIN to be disbanded

Detik.com - September 7, 2007

Bagus Kurniawan, Yogyakarta – Activists in the Central Java city of Yogyakarta commemorated three years since Munir's death by demanding that the National Intelligence Agency (BIN) be disbanded.

Scores of activists from the Yogyakarta Solidarity Action Committee for Udin and Munir (KASUM) went to the Yogyakarta Regional House of Representatives (DPRD) on Jl. Malioboro on Friday September 7 demanding that the Munir murder case be solved.

In speeches the demonstrators said that cases involving the murder of activists in Indonesia are never solved citing the murder of Munir and journalist Fuad Muhammad Syafrudin alias Udin(1) as examples. Up until now the masterminds behind the two murders have yet to be revealed.

KASUM said that suspicions that BIN is behind Munir's murder must be investigated immediately. They are also asking for former BIN officials such as Hendropriyono, Muchdi PR and As'ad(2) to be brought to trial. "Because they are the key figures in order to [be able] crack the Munir case", shouted one of the demonstrators in a speech.

Satisfied with giving speeches at the DPRD, the demonstrators continued the action at the Yogyakarta governor's office in Kepatihan. Before they arrived however, scores of civil service police had already closed the gates to the governor's offices.

Throughout the protest a battalion of Yogyakarta municipal police watched over the demonstration. A number of traffic police could also be seen directing traffic on Jl. Malioboro in order to prevent a traffic jam.

Like other demonstrations, protesters also brought posters and banners with messages such as "The Polly[carpus]-Indra Setiawan recording, Bin is clearly involved"(3), "President Yudhoyono and Vice President Jusuf Kalla are weak", "Udin + Munir we are with you", "Stop the murder of pro-democracy activists", and "The Udin case is tainted – sack the Yogyakarta chief of police".

They also brought a four-meter length of white cloth with the demand "Try the masterminds of Udin + Munir's murder, KASUM Yogya" and photographs of Udin who was murdered on August 13, 1996. (bgs/djo)

Notes:

1. Fuad Muhammad Syafruddin (Udin) was a journalist with the Yogyakarta based newspaper Bernas who died in August 1996 after being badly beaten in his home by unknown intruders. At the time he was investigating a corruption case involving the regent of Bantul, Sri Rosa Sudarmo. Despite the fact that Sudarmo was implicated in the murder, he was never questioned by police. Instead Dwi Sumaji, an employee of an advertising company, was plied with drink, provided with a prostitute, and promised money by police officials in return for confessing to Udin's murder. Although eventually brought to trial Sumaji was later acquitted for lack of evidence.

2. Hendropriyono - The former director of BIN at the time when Munir was murdered. Muchdi PR - Former deputy director at BIN who received numerous phone calls from the prime suspect in the case, Pollycarpus Budihari Priyanto just prior to Munir's murder. As'ad - Former deputy director of BIN who signed a recommendation letter asking for Priyanto to joint the flight on which Munir died.

3. A recording played in court between Priyanto and former Garuda Airlines executive director Indra Setiawan implicating themselves and BIN officials in the murder.

[Translated by James Balowski.]

Activists rally for justice in Munir murder case review

Jakarta Post - September 3, 2007

Jakarta – Activists will use this week's passing of the third anniversary of the murder of human rights activist Munir Said Thalib to pressure the government to find those responsible for ordering the activist's death.

On Sunday, dozens of people grouped in the Solidarity Alliance for Munir and Democracy rallied in Central Jakarta to commemorate Munir's death on board a Garuda flight to the Netherlands on Sept. 7, 2004.

"Munir's struggle in the fight for human rights was rewarded with death, rather than the protection of the government," rally coordinator Sinnal Blegur said. "Up to now, the government has been unable to solve the case. So we should be questioning the government's commitment to protecting its own citizens."

Sinnal said Sunday's protest was only a start, with activists planning to hold a bigger rally on Friday to demand the government get serious about solving the case.

Sinnal said the government should reveal those truly responsible for Munir's murder, rather than just pointing the finger at Pollycarpus Budihari Priyanto, a Garuda pilot whose quashed conviction for the murder is currently the subject of a judicial review.

Munir died on board the Garuda Indonesia flight to Amsterdam after a stopover in Singapore. The Dutch police's initial investigation into the case found Munir had been poisoned with a massive dose of arsenic at some point during his journey.

After taking over the case, Indonesian police named off-duty pilot Polycarpus as suspect. The Supreme Court later quashed Pollycarpus' murder conviction but found him guilty of forging his letter of assignment as an aviation security officer.

The Attorney General's Office has since filed a case review aiming to overturn Pollycarpus' acquittal.

A number of witnesses in the case review have implicated the State Intelligence Agency (BIN) in the case. The agency has denied allegations it was involved in the murder.

 Environment/natural disasters

Indonesia fails to reach forest rehab target

Jakarta Post - September 8, 2007

Jakarta – The government has failed to reach its 2007 forest rehabilitation target due to financial issues and poor coordination, said a senior forestry ministry official.

"The government's target was to reforest three million hectares of land in four years... but it has so far only replanted around two million hectares," director general of land rehabilitation Darori said Friday.

But the shortfall of one million hectares was due mainly to a lack of funds, he said. "So far we have only had reforestation funds to rely on and they are limited."

In 2006 he said his office received Rp 300 billion (US$33.3 million), which saw it able to reforest 37,790 hectares.

Darori said it was unfortunate the pace of reforestation was slower than the rate of deforestation. The government has managed to rehabilitate some 500,000 hectares of forests annually, but the deforestation rate reached 1.8 million hectares per year, he said.

Indonesia's forest occupies 120 million hectares of land or around 65 percent of the country's land area, but deforestation has significantly cut the country's forests. Total deforestation has reportedly reached 59 million hectares due to high rates of land clearing, peatland blazes and growing industries.

Daruri said to accelerate reforestation efforts, his office would aim to rehabilitate 900,000 hectares of forests this year. He said the government had allocated Rp 3.3 trillion from its budget for this project.

Next year he said his office would propose access to Rp 8.6 trillion from the state budget for reforestation. "If the proposal is approved, we will target to reforest 1.7 million hectares of land," he said.

Darori said failure to reach the four-year target was also due to poor coordination efforts between the central government, regional administrations and community members. Improved coordination was a must, he said, to realize a new presidential regulation around forest and land rehabilitation.

The regulation was issued on September 3, 2007 and includes provincial, regental and municipal administrations. It says these bodies should contribute at least 10 percent of costs for forestry and land rehabilitation in their respective territories.

In addition to state and local administration budgets, the government also uses donations from foreign countries to finance its reforestation programs.

The German government recently donated around 20 million euros (US$27.3 million) to help Indonesia finance its reforestation programs.

Muria nuclear plant 'haram'

Jakarta Post - September 3, 2007

Dozens of ulema from Nahdlatul Ulama gathered here Saturday and Sunday came out with a strong verdict against the country's first nuclear plant, which is to be built nearby at Mt. Muria.

The scholars, mostly from Jepara and the neighboring areas, declared the power plant project to be "haram", or forbidden under Islam, as its potential dangers would very much outweigh its benefits.

"After considering all the arguments from the experts, both those in favor and those against, this forum has decided that the development of the Muria power plant is 'haram'," the scholars' spokesman, Kholilurohman, told a press briefing after the gathering.

The ulema, according to Kholilurohman, particularly doubted the ability of the future project operator to ensure the safety of the plant, especially the handling of radioactive waste.

"From our side, we basically question who's responsible for the safety of the people in the vicinity given the possible adverse consequences of the Muria nuclear plant," said Kholilurohman.

Despite a public outcry, the government is pressing ahead with its plan. Under the government's blueprint for the development of nuclear energy, the project will be put out to tender next year. Construction is then expected to begin in 2010 so that it will come onstream in 2016.

Local energy firm, PT Medco Energy International Group, has expressed an interest in the project, and has teamed up with South Korea-based power company KHNP to launch a bid.

Under the plan, the plant will have a capacity of 4,000 megawatts, representing about 2 percent of estimated total Indonesian power demand in 2016.

State Minister for Research and Technology Kusmayanto Kadiman was present to give the government's side of the story at the gathering Saturday, when around 1,000 people from Balong village, Kembang district, Jepara, were also present. The government has designated Balong village as the site of the nuclear plant.

The discussions between Kusmayanto and the villagers became heated after the villagers demanded that the minister sign a statement canceling the project. The minister refused and was then whisked away from the gathering by security officers. (JP/Suherdjoko)

Indonesia proposes rainforest nations climate group

Agence France Presse - September 2, 2007

Jakarta – Indonesia has proposed that eight countries home to some 80 percent of the world's tropical rainforests join diplomatic ranks amid rising climate change concerns, a senior official said Saturday.

"This is the initiative of our president, in order that they be able to play an important role in the diplomacy of global warming," the spokesman for President Susilo Bambang Yudhoyono told AFP.

"It's important for the eight countries to have a joint consensus on their contribution to efforts to control global warming," spokesman Dino Patti Djalal said, adding that the group would look at how forest conservation can happen in tandem with economic development.

Indonesia will open a meeting of the eight countries on September 24 in New York in parallel with the UN's annual plenary session, he added. The eight countries are Brazil, Cameroon, Congo, Costa Rica, Gabon, Indonesia, Malaysia and Papua New Guinea, but more could join, Djalal separately told the Jakarta Post.

The newspaper reported that the grouping was a response to flaws in the Kyoto Protocol, aimed at reducing global carbon emissions, which focuses more on emissions from industry and overlooks forestry. "The point is that we, the rainforest countries, want to ensure that we will have full ownership of our forests," Djalal was quoted as saying.

He said that "the initiatives on rainforest conservation with regards to climate change have always come from developed countries... The president wants to change this situation."

Indonesia is hosting a United Nations Framework Convention on Climate Change (UNFCCC) conference on the island of Bali in December. Its 191 member states are to discuss climate commitments for the period following 2012, when the Kyoto Protocol expires.

Indonesia is believed to be the world's third largest producer of carbon emissions largely due to forest fires and massive illegal logging across the archipelago nation.

 Islam/religion

Students rally to expose the appeal of the hijab

Jakarta Post - September 5, 2007

Some 300 university students, grouped under the Campus Islamic Preaching Council (LDK), stage a peaceful rally to mark the International Hijab Solidarity Day in Semarang, the capital of Central Java, on Tuesday.

The students distributed flowers to the public during the rally, which was held to express their solidarity with Muslim women facing bans on the hijab in countries around the world. The students also gave free hijabs to visitors to their post in front of the Baiturrahman Mosque near the Simpanglima traffic circle.

Rally coordinator Lulu Jamaliah said she was concerned that most Indonesian Muslim women were unenthusiastic about the annual solidarity rally, adding that she hoped more student activists would be interested in promoting the event.

The International Hijab Solidarity day was declared during a conference of the Assembly for the Protection of Hijab held on July 12, 2004, in London. The conference, attended by some 300 delegates from 102 British and international organizations, was opened by London Mayor Ken Livingstone. Livingstone is known as a staunch advocate of the rights of Muslims and other minority groups in Britain. Also attending the meeting were noted Muslim figures Sheikh Dr. Yusuf Al-Qaradawi and Prof. Tariq Ramadan. The conference declared Sept. 4 as International Hijab Solidarity Day.

The conference was inspired by a ban on Muslim clothing in French schools, which triggered Muslim anger around the world. Waves of protest condemning then French prime minister Jean-Pierre Raffarin's decision to ban the hijab swept countries in Europe, the Middle East and Asia in 2004.

The Assembly for the Protection of Hijab's website says the organization's mission is to campaign nationally and internationally for the protection of Muslim women's right to wear the hijab in accordance with their beliefs.

Among the alliance's goals are: bringing an end to hijab bans wherever they have been imposed; preventing the spread of such bans; and liberating Muslim women from racial, religious and gender discrimination.

Police tell bars to get ready to close for Ramadhan

Jakarta Post - September 1, 2007

Jakarta – The Jakarta Police plan to summon owners of nightclubs and amusement centers to discuss operating hours during Ramadhan.

City police Chief Insp. Gen. Adang Firman said Friday that the police would work with the city administration and the Jakarta Tourism Agency on the matter. "I've talked to my officers about this. I'll call the city administration and the tourism agency soon," the two-star general said.

Adang said his officers would visit nightclubs and bars in the weeks leading up to the fasting month to remind management about the operating hours that are stipulated under city law.

"There has been a regulation issued by the city administration on entertainment businesses that must be complied with by managers. We just want to make sure they play by the rules," Adang said.

The 2007 fasting month will begin in mid-September. During Ramadhan, Muslims must refrain from eating, drinking, smoking, sexual relations and other worldly activities from dawn to dusk.

Last year, Governor Sutiyoso asked nightclub owners in Jakarta to close down their businesses during Ramadhan, but told them to keep paying their employees.

In the gubernatorial regulation issued last year, nightclubs, spa centers, massage parlors and bars must close entirely while karaoke lounges and pool halls were subject to restricted operating from 8:30 p.m. to 1:30 a.m. and 10 a.m. to 12:00 a.m. respectively. The same regulation allows bars and clubs located in star-rated hotels to remain open.

However, last year, many bars and nightclubs remained open, closing entirely only on certain days and often serving alcohol concealed in coffee mugs and teapots. There are more than 1,000 registered entertainment businesses across the capital.

While complying with the regulation means owners will lose a large amount of their profits, the Association of Indonesian Entertainment Businesspeople usually complies as long as the city administration and police can guarantee that no religiously motivated organizations raid their establishments.

The association's secretary general, Adrian Maelite, said that last year the police were able to prevent such raids through the use of intelligence agents.

 Elections/political parties

Muhammadiyah warns members

Jakarta Post - September 7, 2007

Fadli, Batam – The central board of Muhammadiyah, the second largest Muslim organization in Indonesia, warned its members Thursday to avoid active involvement in political parties.

The admonition was made by Muhammadiyah general chairman Din Syamsudin in front of 200 participants at a working conference of Muhammadiyah Youth's Batam chapter in Riau Islands province on Thursday.

It was understood to preclude Muhammadiyah members actively involved in political parties from leadership and membership in Muhammadiyah.

"Political parties will experience certain ups and downs and Muhammadiyah shouldn't become a pawn. Muhammadiyah has no involvement with any party and agrees that it will not become involved," Din said.

"We will give a choice to members of Muhammadiyah who have become affiliated with political parties whether to stay with the party or to be with us."

Din noted that this was the policy implemented under a 20007 Muhammadiyah decree that addresses dual leadership situations.

Din suggested the reason for the timing of the public admonition was that the decree would be the subject of discussion and resolution by the Muhammadiyah Youth at the Batam conference.

"We are not pleased by association between members of the board of Muhammadiyah Youth and the newly established Matahari Bangsa Party, nor with recruitment efforts on the part of the National Mandate Party, which also target (Muhammadiyah Youth). This will cause a perpetual conflict," Din said. "Are these the types of activities where we wish to spend most of our energy?"

Din said when Muhammadiyah members chose involvement in political parties the religious organization would "simply let them go". However, after entering politics, they would no longer have the right to use Muhammadiyah's name, he said.

Din expressed the preference of the organization that the decree in question be adopted and enforced by concerned Muhammadiyah members themselves, rather than as a top-down intervention. "This is a collective decision, not my own," he said.

Muhammad Izul Muslimin, head of the central board of Muhammadiyah Youth, said that out of 45 members of Muhammadiyah Youth's central board, 30 percent were active committee members of political parties. "We cannot at present respond to the warning," said Izul Muslimin, indicating the matter would first have to be discussed with colleagues.

Nurcahyo, another member of the Muhammadiyah Youth central board, said the policy to restrict the involvement of Muhammadiyah members with political parties would meet with strong opposition among Muhammadiyah Youth circles. "The policy is irrational at a time when a large number of Muhammadiyah cadres have joined the committees of political parties."

He voiced general opposition to the decree for reasons including its lack of sanctions. The working conference, which continues through Sept. 8, is expected to issue recommendations on various issues, including the new statement regarding the prohibition on dual leadership.

Minor parties told to merge or die for 2009 election

Jakarta Post - September 8, 2007

Ridwan Max Sijabat, Jakarta – In order to face the 2009 legislative elections, minority parties unable to secure at least 3 percent of public support in the parliament should not dissolve – they should join a major party or merge to form a new one, legislators said.

Chairman of the special committee deliberating the bill on legislative elections at the House of Representatives Ferry Mursyidan Baldan said the government and his committee were of the same opinion on the issue.

Political parties that lost the 2004 legislative election and failed to secure at least 3 percent of support in the parliament should be given the opportunity to contest the next legislative election. The right to do so is guaranteed by the 1945 Constitution, Ferry said.

"The people's constitutional (right) to organize and to express their opinion must be protected. Parties failing to meet the parliamentary threshold should be allowed to form a new party... (so they can) contest the next legislative election," he said.

Minority parties should choose an existing or new party symbol, before nominating their legislative candidates in accordance with their proportional strength in all electoral districts, Ferry said.

A similar proposal had already been put forward by Vice President and Golkar Party chairman Jusuf Kalla.

Of the all 10 factions in the House, only Golkar, the Indonesian Democratic Party of Struggle (PDI-P), the National Awakening Party (PKB), the National Mandate Party (PAN), the United Development Party (PPP), the Prosperous Justice Party (PKS) and the Democratic Party (PD) are eligible to contend the next election.

The Crescent Star Party (PBB), the Prosperous Peace Party (PDS), the Justice and Unity Party (PKP) and the Democratic Nationhood Party (PDK) would be required to form a new party or join major parties to allow them to contend the election.

Ferry said the new parties were required to meet legal limitations set by Law No. 31/2002 on political parties and the 2003 legislative election law in order to be able to contest the next election.

The 2002 political party law requires new parties to have functionaries and chapters in 50 percent of the country's 33 provinces.

They must also have 50 percent of branches and functionaries in regencies and municipalities within each province to be registered at the Ministry of Justice and Human Rights.

The 2003 legislative election law requires registered parties to have chapters and functionaries in two thirds of the 33 provinces.

They must also have two thirds of branches and functionaries in regencies and municipalities within each province and win political support from at least 1,000 members or one thousandth of the population in regencies and municipalities.

Golkar offers free love to big business

Jakarta Post - September 6, 2007

Jakarta – Despite the looming 2009 elections, Golkar turned the age-old script of how to get business backing on its head Wednesday, putting the begging bowl away and instead using a meeting to ask invited businessmen what the party could do for them.

"Usually if a political party invites businessmen, they wonder what's behind the invitation, or think about how much money they might have to donate this time. But that is an old song, even though it still happens sometimes," Vice President Jusuf Kalla, who also chairs the Golkar Party, told businesspeople at the Indonesian Entrepreneurs' Forum.

"This time I am telling you that we don't want anything from you, instead we would like to ask you, what do you need from Golkar?" he said at the gathering organized with the Young Entrepreneurs' Association.

Kalla added that the party would not ask for donations this year, but added "it is up to you if you want to donate next year," provoking peals of laughter from the audience.

Kalla added that a nation can only get respect from the international community if it develops its economy as China and India have.

He said that businessmen were the ones capable of encouraging economic development, meaning Golkar needed to hear suggestions from them about what the party could do to improve the business climate. "We can develop Indonesia only if the government, legislators and businesspeople work together in harmony," he said.

He added that if there was a group of people who needed to think about long-term goals, it was businessmen, because they put everything into their investments.

"Businessmen are the people who think about today and 10 years ahead at the same time, while often having to act without enough time to think," Kalla said.

"That's what makes businesspeople different from others. Besides, if we spent too much time thinking, people could go hungry before we made any decisions," Kalla said.

Kalla said he could not deny that businessmen were always looking out for their own interests, but that this was not necessarily a bad thing.

"They have to get profit in order to increase the number of their employees," he said. "So there is nothing wrong with a businessman turning into a government official," he said, provoking more laughter from the audience.

This statement came as an indirect challenge to the opinions of former Golkar chairman Akbar Tandjung, whose recent doctoral thesis at Gadjah Mada University argued that Golkar had become a party dominated by business, leading it to be unresponsive to the needs of the majority of Indonesians.

Akbar told detik.com Wednesday that, on top of his own opinions, his thesis was based on a number of sources, including a newspaper article by Dr Dirk Tomsa, at political scientist at the University of Tasmania, Australia.

He added that, according to Tomsa, Golkar was made up of three components: a structural component comprising its National Organizing Committee; the traditional component comprising organizational groups; and a business component comprising Kalla, Surya Paloh, Aburizal Bakrie, Agung Laksono and Fahmi Idris.

"Tomsa said Golkar was a very authority-oriented party and that Kalla was chosen to be the chairman not because he had a convincing concept of leadership but because he had authority," Akbar said. The head of Golkar's advisory council, Surya Paloh, has asked Akbar to clarify his statements.

Clash over electoral thresholds continues

Jakarta Post - September 5, 2007

Jakarta – Legislators, government officials and political experts continue to clash over whether or not there should be an electoral threshold limiting the establishment of new political parties.

A review of the existing law has been requested by 13 political parties to reconsider article 9 of the 2003 covering the constitutional right to participate in general elections.

The article as it stands says parties participating in general elections must have at least 3 percent of the current number of seats in the House of Representatives.

It also says they must have at least 4 percent of current regional council memberships in 50 percent of the 33 provinces, or 50 percent of memberships in all regions (regencies and municipalities) throughout the country.

Nursyahbani Katjasungkana, from the legal commission at the House of Representatives, said the limitation was needed to guarantee political stability and full participation of all parties in the House.

"Most of the time parties that only get a small number of seats in the House cannot put their representatives on each commission, which makes their representations rather useless," she told the Constitutional Court on Tuesday.

Ramli Hutabarat, an expert overseeing political, legal and human rights issues at the Justice and Human Rights Ministry, said the requirement was needed so the government could create a healthy and mature political climate. "That is why we want to determine the requirements in the hope that the existing parties function effectively," he said.

But Ramli said no party would actually lose the constitutional right. He said a party could still participate in elections by merging with other parties or by establishing a new party.

Political expert Indra J. Piliang from the Centre for Strategic and International Studies however told the court the government should consider the impact of the merger on constituents. "How can parties be responsible to their voters if they have already changed their names," he said.

Indra said during transitional periods, the government should let the people decide which parties deserved their support. "I believe the Indonesian people have enough awareness of politics – the change should not be stipulated in the law."

He said he believed although an electoral threshold could be set at 0 percent, it would be impossible for this to generate too many parties. "Requirements on establishing new political parties and their coverage areas are enough to limit the number of new parties in the country."

The 2003 law requires a legally acceptable party to have branch offices with complete organizational structures in at least two thirds of Indonesia's provinces and at least 1,000 members.

Indra said threshold limitations would decrease public participation in politics. "This can be seen in the increasing number of people who choose not to vote," he said.

Quoting the results of a recent survey, Indra said several recent regional elections in the country had shown a loss of around 50 percent of voters at the polls. Jakarta alone saw a 34 percent drop in the number of voters in the recent gubernatorial election.

"This means limitations in the political system will reduce the number of voters and will also decrease the legitimacy of the political parties selected in an election."

Akbar Tandjung to ponder bid for presidency

Jakarta Post - September 2, 2007

Slamet Susanto, Yogyakarta – Veteran politician and former Golkar Party chairman Akbar Tandjung will consider running for the 2009 presidential election through a party convention if this is held in an open and transparent manner.

"The Golkar convention held in the past has improved the party's image. This was proven by Golkar's vote," he said. "But I cannot say anything right now."

Akbar was speaking after receiving a doctorate in political science Saturday at Gadjah Mada University in Yogyakarta.

Golkar organized a party convention to nominate its presidential candidate prior to the 2004 election in a manner similar to that employed in the US. Akbar lost the convention to former military chief Wiranto, who failed to make it into the second round of the presidential election.

When asked if any parties other than Golkar were interested in nominating him at their conventions, Akbar said he would not change course.

"I am still in the Golkar Party although I am no longer on the executive board. I always think of Golkar," he said. "I have nothing to say about other parties."

Akbar said he would focus on two things after earning his doctoral degree – developing the Akbar Tandjung Institute and leading a mass organization to "foster greater nationalism."

As for the current administration, Akbar said President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla had yet to do their utmost in running the country.

"The President is not involved in his party's (the Democratic Party) activities while Kalla is Golkar Party chairman," he said. This was something that could not be changed, but Kalla could delegate some of his duties to other party leaders.

The current situation also posed a dilemma for Golkar, Akbar said. "If the government is successful, it is the Yudhoyono administration that will get the credit. There is no guarantee that Golkar will obtain direct political gain. On the other hand, if the government fails, there is the possibility that Golkar will feel the impact."

Akbar suggested that all policies to be adopted in the future should be based on long-term considerations, while taking into account all the implications. "This way, any decision taken will not give rise to a dilemma, like the one we face now."

Akbar defended his thesis, titled Golkar dalam Pergolakan Politik Era Reformasi Tantangan dan Respon (Golkar in the Reform Era Political Turmoil, Challenges and Responses). He was awarded a cum laude citation.

Akbar said in his thesis that the current Golkar leadership was not being responsive to the people's aspirations, which ran contradictory to its slogan, "Fast action for the people". "The Golkar Party needs a visionary and democratic leadership that can bring hope to its members," he said.

Yudhoyono, Kalla unlikely to run together again: Politicians

Jakarta Post - September 1, 2007

Ridwan Max Sijabat, Jakarta – The state leadership duet of Susilo Bambang Yudhoyono and Jusuf Kalla may end in October 2009 if the Golkar Party maintains its lead in the upcoming general elections, politicians and an analyst said Friday.

Priyo Budi Santoso, chairman of the Golkar faction at the House of Representatives, said Kalla would be Yudhoyono's running mate only if Golkar was defeated in the election or Kalla quit the party, a decision he would be unlikely to make.

Kalla is chairman of the Golkar Party, while Yudhoyono is the patron of the Democratic Party.

Priyo said Golkar was committed to maintaining the pair until 2009 but would hold an internal convention to determine its presidential candidate.

"If Golkar wins the next legislative election, it will nominate its own presidential and vice presidential candidates or form a coalition with other major parties to nominate saleable presidential and vice presidential candidates," he said in a discussion here Friday.

Sutan Batoegana, a legislator from the Democratic Party, asked the Indonesian people to give the President a chance to address major national problems in his last two years in office and said that Yudhoyono would seek reelection.

Maswadi Rauf, a political analyst at the University of Indonesia, and deputy secretary general of the Indonesian Democratic Party of Struggle (PDI-P) Sutradara Gintings both agreed that the Yudhoyono-Kalla government was ineffective because Yudhoyono had little political support in the House of Representatives, while Golkar, as the major supporting party of the government, did not have a proportional number of seats in the Cabinet.

"(The President) has political difficulties forming an effective government because his Democratic Party only has 10 percent of the 550 seats in the House, while his supporting parties have halfheartedly supported the government," said Maswadi.

Sutradara said he doubted PDI-P chairwoman Megawati Soekarnoputri would run the next presidential election as she had already been the country's first woman president and vice president. She was defeated in the last presidential election and had no strategic national reasons to run, he said.

"Although many PDI-P chapters have asked about her readiness to be nominated as a presidential candidate during the party meeting in Bali in March, she has yet to give her response," he said.

Under the multi-party system, where even major parties won only around 20 percent of seats, the PDI-P would have to form coalition with other major parties to win the presidential election and form an effective government, he said.

Maswadi stressed the importance of implementing a strict verification of political parties taking part in the next legislative election and of regulating the formation of coalitions in order to achieve a simple multi-party system and produce a strong government.

"Strict verification of political parties will result in only seven parties being eligible for the legislative election and this will provide a major chance for the formation of an effective government with a strong opposition," he said.

 TNI/Defense

TNI reshuffle promotes SBY relative

Jakarta Post - September 7, 2007

Ridwan Max Sijabat, Jakarta – The Indonesian Military (TNI) announced Thursday a major reshuffle which included the promotion of President Susilo Bambang Yudhoyono's brother-in-law as the new TNI chief of general affairs.

Lt. Gen. Erwin Sudjono, a 1975 graduate of the Armed Forces Academy and the husband of First Lady Ani Yudhoyono's older sister, is the current commander of the Army's Strategic Reserves Command (Kostrad). His elevation to the post of chief of general affairs will see him filling the post of Lt. Gen. Endang Suwarya, who has been moved to "administrative tasks" at TNI headquarters.

The reshuffle, which was decided at a meeting of the TNI's High- ranking Officers Promotion Council (Wanjakti), was presided over by TNI commander Air Chief Marshal Djoko Suyanto on Tuesday and involved a total of 129 high-ranking officers from all the three forces – the Army, the Navy and the Air Force – including 32 officers entering retirement age.

"The reshuffle has been conducted as part of the routine tour of duty to refresh the military organization. It has been held in accordance with principles of professionalism and fair proportion among the three forces," TNI spokesman Rear Marshal Sagom Tamboen told The Jakarta Post after a ceremony that saw the chief of the National Air Defense Command Vice Marshal Eris Haryanto pass his position on to his successor Rear Marshal Gandjar Wiranegara.

Eris was appointed the new Director General for Defense Planning and Weaponry at the Defense Ministry.

Some 51 senior officers were transferred to new positions while maintaining their military ranks, while 46 others were promoted to higher ranks.

Other officers affected in the reshuffle include Lt. Gen. Cornel Simbolon, currently commander of the Army's Education and Training Command, who was appointed as Deputy Army chief. He will replace retiring Lt. Gen. Herry Tjahjana. Maj. Gen. George Toisutta, currently chief of the Siliwangi Regional Military Command overseeing West Java and Banten provinces, was promoted as the new Kostrad chief. He is expected to get his three-star- general rank in the immediate future.

Maj. Gen. Bambang Darmono, assistant to the TNI chief for General Affairs, was promoted to lead the Army Education and Training Center (Kodiklat) in Bandung. He will also get his three-star- general rank soon.

Rear Marshal Subandrio, currently assistant to the Air Force chief on logistic affairs, was promoted to deputy Air Force chief, while Brig. Gen. Sunarko, currently chief of staff of Kostrad's First Division, was promoted to commander of the Army's Special Forces (Kopassus). Both Subandrio and Sunarko will be awarded a higher rank.

Brig. Gen. Suwarno, currently a senior officer at Kodiklat, was promoted to be commander of the Presidential Guard Command, while Brig. Gen. Haryadi Sutanto, chief of staff of Central Java's Diponegoro Military Command, was promoted to chief of the Trikora Military Command overseeing the provinces of Papua and West Papua.

Jakarta and Moscow to seal $1.2 billion defence deal

Sydney Morning Herald - September 5, 2007

Mark Forbes – Indonesia will finalise a $1.2 billion defence deal with Russian President Vladimir Putin in Jakarta tomorrow, to fund the purchase of Russian submarines, tanks and helicopters.

The acquisition of two high-performance Kilo-class submarines has significant strategic implications for Australia and could erode its naval dominance in the region, military experts believe.

Indonesian navy spokesman Sugeng Darmawan told The Age that long-term plans to buy another eight of the new submarines were being discussed.

Tomorrow's agreement will deepen military links between Russia and Indonesia as well as upgrade Indonesia's army, navy and air force. It will reduce Indonesia's dependence on US military supplies.

Under the deal, Russia will provide a $1.2 billion line of credit to finance the military purchases. Indonesia will buy two of the most advanced conventional submarines built by Russia, 22 helicopters and 20 tanks.

The move will fuel rising concerns about an accelerating regional arms race, with China, Japan and Australia – among others – involved in major military acquisitions. Leaders at APEC this weekend will discuss concerns about the regional build-up.

The head of the Australian National University's Strategic and Defence Studies Centre, Hugh White, said the submarine purchase would "significantly complicate" Australia's naval planning as they would represent a real threat to surface warships.

"These are Russia's highest-quality conventional boats. They would significantly increase Indonesia's capability," Professor White said. "It is most strategically significant for Australia. If there was any conflict with Indonesia, these submarines would massively complicate the use of Australian surface ships."

The ongoing pattern of major arms purchases in the region was eroding Australia's air and naval advantage, despite the $A10 billion acquisition of air warfare destroyers, he said. Under Australia's defence planning, the destroyers will be essential to protecting military forces deployed offshore.

First Admiral Darmawan said the Indonesian navy was proposing to acquire a fleet of 10 submarines and 260 surface ships in the longer term.

Mr Putin and Indonesian President Susilo Bambang Yudhoyono will witness the signing of the defence deal tomorrow, Indonesian Defence Ministry spokesman Edy Butar Butar confirmed.

It is the first visit of a Russian leader to Indonesia and the pair will hold wide-ranging talks before travelling to APEC in Sydney. Stronger trade, as well as military ties, will be endorsed.

Brigadier General Butar said the military deal would reduce Indonesia's military dependence on the US. "We hope with other sources we will be strong enough to do our job to protect the unitary state of Indonesia.

"The air force will also receive weapons and equipment for its Sukhoi squadron, because on top of the $US1 billion purchase we will also buy six Sukhoi jet fighters worth $US335 million," he said. Under the deal, Indonesia will not pay interest on the loan for 15 years.

Military links with Russia, including exchange of personnel and training, would also be boosted, General Butar said. He raised Indonesia's concern over arms embargoes instituted by the US after human rights abuses in Timor.

Earlier this week, one of Mr Putin's aides confirmed the credit deal would be discussed in Jakarta, but denied any plans finalising specific military purchases.

"Indonesia is a creditworthy, oil-producing country. Russia gives loans to such countries when it can," the aide, Sergey Prikhodko, said. "I think that this is a very right thing to do."

Australia's most potent defence against any hostile regional submarine forces is an effective submarine force of its own and the Royal Australian Navy and defence analysts are already planning for replacements for Australia's six Collins Class boats.

The Australian Strategic Policy Institute said in March that China, India, Bangladesh, Indonesia, Malaysia, Pakistan, Singapore and South Korea were buying or planning to buy modern conventional submarines from Russia or Western Europe. China and India were developing their own nuclear submarines.

ASPI said regional submarine fleets could threaten Australia's maritime movements and the safety of Australia itself. "Submarines will be able to seriously threaten the operation of surface fleets and commercial trade," a defence analyst at ASPI, Andrew Davies, said.

"Australia simply cannot expect to be able to conduct major naval operations in waters patrolled by submarines without a major upgrade to its anti-submarine warfare capabilities."

After initial problems with noise and their combat systems, the Collins are widely considered the best conventional submarines in the world and they are valued by Australia's US ally because they can operate in shallow regional waters where the much bigger US nuclear boats cannot go.

[With Brendan Nicholson and Karuni Rompies.]

 Economy & investment

PTDI workers demand government intervention

Jakarta Post - September 6, 2007

Yuli Tri Suwarni, Bandung – Employees of Bandung-based state aircraft company PT Dirgantara Indonesia (PTDI) urged to the government Wednesday to intervene in the firm's bankruptcy case to help prevent the disposal of the company's assets.

The intervention call has been made to block a court-appointed liquidator from coming to the company, the initial step to executing the bankruptcy verdict issued by the commercial court on Tuesday, Edy Kombara, secretary general of the PTDI employees association, said in Bandung.

Edy said it was feared the court's execution would stop all production at the aircraft manufacturing company, causing Indonesia to lose face and trust among local and international customers. He said many long-term working contracts had already been signed with international aircraft companies such as Boeing and Airbus.

"Frankly speaking we (employees) are feeling a kind of mental breakdown. This is very disturbing. What will the national and international impact be if the company really is declared bankrupt?" Edy asked.

The commercial court's decision Tuesday was the culmination of legal action by some 6,500 former employees of the company. The former employees, who were dismissed in PTDI's massive restructuring program in 2003, took the case to court in the hope of extracting retirement funds from the company.

Edy said his association had a membership of about 1,900 of 3,200 personnel still employed by the company. Over the last two years, the company, which was set up in 1976, employed an additional 600 contract workers due to rising orders.

Edy said eight members of his association's management board would leave for Jakarta on Thursday to meet members of the House of Representatives to ask for their support in amicably settling the case with the former employees.

State Minister of State Enterprises Sofyan Djalil said Tuesday that upon hearing about the bankruptcy verdict, he appealed directly to the Supreme Court in the hope of extracting a better verdict in light of the company's recent increased growth.

Sofyan said he will seek to have the commercial court's decision overturned on the grounds that the case was initiated by the former employees' union. Referring to a law on state enterprises, Sofyan said state assets could not confiscated without approval from ministers and House members.

Edy explained that PTDI was currently under contract until 2010 to produce components for Airbus A320 and A321 aircraft. He said that the company was also involved in the manufacture of Boeing 777 wing components, CN 295 aircraft components ordered by Cassa of Spain and the manufacture of CN 235 aircraft ordered by the Indonesian Air Force.

The company also still provides routine servicing for Boeing 737-200 and 737-300 aircraft operated by local airlines such as Batavia, Kartika, Mandala and Jatayu, he added.

State aircraft maker declared bankrupt

Jakarta Post - September 5, 2007

Tony Hotland and Yuli Tri Suwarni, Jakarta/Bandung – State-owned aircraft manufacturer PT Dirgantara (PTDI) was on Monday declared bankrupt by Indonesia's commercial court system. The court said PTDI was on the verge of demise and had several long-overdue debts but PTDI said it would appeal to the Supreme Court.

The company said its defense would continue to be that it was still operating and had orders from overseas that would see it through to at least 2017.

The lawsuit against the aircraft manufacturer was filed last month by some 6,500 former employers who were dismissed in 2003. They were told then the company was being restructured. The employees have demanded the company pay their pension funds and retirement allowances as per their last salaries.

PTDI currently employs 3,200 employees and has said it has no further obligations to pay said pension or retirement funds, which amount to some Rp 200 billion (US$21.5 million).

The presiding panel of judges said the evidence against Bandung- based PTDI was incriminating. Presiding judge Andriani Nurdin said a document issued by the Committee for Central Labor Disputes (P4P) in January 2004 showed the company had been required to pay the compensation.

A warning letter issued by the then-manpower and transmigration minister in October 2004 obligated PTDI to pay the funds within 30 days.

The court also saw the company had outstanding debts to other creditors including Bank Mandiri at Rp 125 billion, as well as individuals Supriadi Jasa at Rp 79 million and Neli Ratna Sari at Rp 15 million.

The court found the company's defense was baseless. "The document simply shows estimates that are not supported by adequate infrastructure and capital," judge Heru Pramono said, adding that there was no reason left to sustain the company.

The court appointed curator Taufik Nugroho to appraise the company's standing assets and Zulfahmi as the overseeing judge.

Legal expert Frans H. Winarta said a bankruptcy status would force the company to pay back all of its debts and compensation to its current employees.

If the value of its assets is lower than the overall debts, the company should pay according to a proportion based on the amount of debt of each creditor, Frans said. "But this cannot be executed until there's been a verdict from the Supreme Court."

A pioneer in Asia's aviation industry, PTDI was set up as PT Industri Pesawat Terbang Nurtanio in 1976 with then-research and technology minister BJ Habibie as president director. The 1997 Asian financial crisis forced it to restructure and reduce its payroll from almost 10,000 to less than 4,000.

In Bandung, West Java, company spokesmen Rakhendi Priyatna said the company was "starting to pick up its pieces with orders coming from in and out of the country". "A bankruptcy verdict will lead to complaints and even penalties regarding our current production," he said.

Workers at the company appeared unaffected but said they deplored the verdict. They said they believed the company would win the case at the Supreme Court.

Oil cost-recovery rules 'need changes'

Jakarta Post - September 1, 2007

Ika Krismantari, Jakarta – Energy analysts have called on the government to issue clear-cut rules to ensure that the cost recovery system used in the country's oil and gas industry does not cause losses to the state.

Ryad Areshman Chairil, from the Center for Indonesian Energy and Resources Law, said the current cost recovery system stipulated in the contracts signed by oil and gas companies and the industry's upstream regulator, BPMigas, is based merely on a consensus between the two sides.

"The existing contracts only refer to generalities, which are open to differing interpretions and can lead to markups," Ryad said, pointing to items, such as personal expenses and transportation costs, that are unrelated to exploration and production, but which are often included in the calculation of the costs that are to be recovered.

Therefore, he urged the government to issue a special regulation in the form of a presidential or ministerial decree to set out in detail which costs could be recovered by oil and gas contractors, and also the assessment mechanisms for controlling such costs.

The Supreme Audit Agency (BPK) reported recently that it had found irregularities worth almost US$2 billion in the oil and gas exploration and production costs reported by BPMigas betweeen 2001 and 2005.

Another energy expert, Kurtubi, said that oil and gas contractors tended to markup their spending in order to get higher refunds not only because the system was too general, but also due to lack of control by the government. He said that the recovery costs repaid by the government to oil block contractors in recent years had continued to incresese despite the decline in the country's oil production.

Figures from the Energy and Mineral Resources Ministry show that the amounts being paid out by the goverment under the cost recovery system surged to $9 billion in 2006 from $7.63 billion in 2005, even though the output declined during that period to 1.04 million barrels per day from 1.06 million barrels per day.

Under a production sharing contract, an oil producer normally receives 15 percent of net production (total output after the deduction of exploration and production costs). The government gets the remaining 85 percent.

This arrangement is quite popular among oil and gas companies as they can recoup all of their spending on exploration and production work.

Separatedly, BPMigas said that Indonesia was relying on 22 oil blocks so as to meet the country's oil production target of 1.034 million barrels per day in 2008.

BPMigas chairman Kardaya Warnika said as quoted by Antara that of the total 22 oil blocks, 10 were new blocks.

Those 10 new blocks included North Duri and Kotabatak in South Sumatra, Bekapai, Handil and Tunu 11A in East Kalimantan, Pulau Gading and Sungai Kenawang in Jambi, and Tangguh in Papua.

Meanwhile, the other 12 blocks included Ujung Pangkah in East Java, Tunu 12 in East Kalimantan and Balam South in South Sumatra.

The government has set a target of a 30 percent increase in the country's oil production to 1.3 million barrels per day by 2009. This year, the oil output is expected to reach to 950,000 barrels per day from the previous target of 1 million barrels per day.


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