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Indonesia News Digest – May 9-16, 2008

News & issues

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 News & issues

AGO rapped over Sjamsul case

Jakarta Post - May 14, 2008

Abdul Khalik, Jakarta – The Attorney General's Office has sparked controversy by resisting a court order to reopen a Bank Indonesia liquidity support (BLBI) case involving tycoon Sjamsul Nursalim.

The decision to appeal the decision by the South Jakarta District Court was quickly condemned by observers and lawmakers, who said the AGO was not serious about fighting corruption and had sent a signal it was more interested in protecting corruption suspects.

"We filed an appeal with the higher court right after the court's ruling. We just don't agree that the judges have a legal basis to order us to reopen the case," AGO spokesman BD Nainggolan told The Jakarta Post here Tuesday.

He said the AGO had the right to appeal and would not follow the court's order until a final ruling was issued.

Lawmaker Yusron Ihza Mahendra urged the AGO to drop the appeal, hunt down Sjamsul and launch efforts to recover state assets.

"I really don't understand why the AGO should file an appeal. With people's trust in prosecutors waning, the decision only justifies the sense that it just doesn't care about what the public is concerned the most about," he told the Post.

Sjamsul, the owner of the Gajah Tunggal Group and the now-defunct Bank BDNI, is suspected of embezzling trillions of rupiah from the BLBI funds.

The tycoon, who is believed to be living in Singapore, was said to have repaid his Rp 28.4 trillion debt. But the AGO launched a graft investigation after the value of assets he handed over to the state was found to be only Rp 4.9 trillion.

On Feb. 29, 2008, the AGO dropped BLBI cases involving Sjamsul and another tycoon, Anthony Salim, citing a lack of evidence.

Two days later, the Corruption Eradication Commission arrested state prosecutor Urip Tri Gunawan for allegedly accepting a US$660,000 bribe from Artalita Suryani, a businesswoman with links to Sjamsul. Urip led the probe into Sjamsul's involvement in the BLBI case.

The People for a Corruption-Free Indonesia (MAKI) last month filed a motion against the AGO, claiming it lacked a legal basis for halting the investigation into Sjamsul.

The South Jakarta District Court earlier this month ordered the AGO to reopen the cases.

Legal expert Frans H. Winarta said the AGO's appeal would cost it public confidence and hurt the people, who badly need the recovery of the BLBI money at a time of economic difficulties. "To regain public trust, the AGO should quickly reopen the case, instead of appealing the court's ruling," he said.

Yusron and Frans urged the Corruption Eradication Commission to take over all the BLBI cases, citing their loss of faith in the Attorney General's Office.

'Busy' lawmakers seen unlikely to meet bill target

Jakarta Post - May 14, 2008

Jakarta – With national elections around the corner, the House of Representatives has limited time to meet its legislation target.

Trimedya Panjaitan of the Indonesian Democratic Party of Struggle (PDI-P) said Tuesday all lawmakers in the House would shift their focus to preparations for the legislative election, scheduled for April 5, 2009.

"I predict lawmakers will be busier in the months to come as the political tension increases ahead of the 2009 election," Trimedya said.

The current House has 280 bills on the table before it completes its five-year term in August next year. In the last four years, the lawmakers have passed just 104 bills.

According to the 2008 law on elections, the campaign period for the legislative election will begin nine months before polling day, or July 5.

The House approved the long campaign period after political parties complained that in the last elections they did not have time to introduce their programs to the public.

In addition to preparing for the national election, lawmakers will also be helping their parties' candidates win governor, mayor and regent posts in the remaining 34 regional elections.

In a speech to mark the resumption of the House's sitting period on Monday, Speaker Agung Laksono urged lawmakers to deal with the backlog of bills. Unlike in the past, he did not set a specific legislation target.

"We beg the active participation of all lawmakers, because we only have 10 months of effective time to carry on our legislative duty, not including the recesses," Agung said.

Theo L. Sambuaga, who chairs of House Commission I overseeing defense and foreign affairs, blamed the lawmakers' failure to meet the legislative target on the six-month consolidation process the House went through at the beginning of its term.

He said lawmakers also seemed more interested in summoning administration officials to question them about certain issues rather than deliberating bills. "This is something that we need to improve," said Theo, who is a senior Golkar Party politician.

Trimedya, who chairs House Commission III overseeing legal affairs, said the House's standing orders often slowed the deliberation of bills. "The standing orders stipulate that all members of a committee debating a bill must attend all the meetings, while most of us work for at least two committees," Trimedya said.

Irwan Prayitno, who heads House Commission X overseeing education, does not consider the failure to meet the legislation target an important matter. He said he was concerned more on the quality of a bill.

"The long process is the nature of a bill deliberation. Lawmakers must take into account all parties' interests, which is time consuming," he said.

Irwan insisted that the House could not be forced to meet artificial targets, saying this would only compromise the quality of legislative products.

The House has begun deliberation of 71 bills, 23 of which are nearing completion.

Agung said the House had to finish debating priority bills, particularly the presidential election bill, the bill on the composition of legislative bodies and the ministerial office bill.

Agung said the House also would prioritize the revision of laws on the Supreme Court, the Judicial Commission and the Constitutional Court, and the bill on sharia banking and the mineral and coal mining bill. (alf)

Seventeen arrested in crackdown on secessionist movement

Jakarta Post - May 14, 2008

Yuli Tri Suwarni, Bandung – West Java Police announced Monday they had raided the separatist group Indonesian Islamic State (NII) in West Java and arrested 17 people on subversion charges. Chief Insp. Gen. Susno Duadji said those arrested were suspected of alleged involvement in subversion and blasphemy. He said they would likely face life imprisonment if found guilty.

They were among 35 people recently arrested by the police anti- terror unit in Cihanjuang, Cimahi and Ciwidey.

The underground movement has long been a police target because of its use of violence against its members and others in its fight for ideological and political causes. The group's members also use violence to collect alms and other funds for the NII.

"Most suspects held positions within the NII ranging from governor of the southern part of West Java, to regents, regency secretaries and district officials within the NII state," Susno said in Bandung, the provincial capital.

West Java Police have seized evidence including the NII's constitution, territorial ordinance, criminal code, independence proclamation text, bank accounts, structural organization and flag.

The 17 suspects are charged with intent to overthrow the government. They are also accused of hostility, fomenting hatred and tarnishing the image of the government and could face another seven years in prison if found guilty of those crimes.

They are also charged with blasphemy and practicing a faith not recognized by the state, which carries a maximum five-year prison term.

Susno said the NII operated a state within a state because they had proclaimed their independence. He said the evidence showed NII was divided into two territories, each regulated by an ordinance.

Susno said the so-called southwest Java province, whose leader was one of those arrested, was part of NII's western region, encompassing Java, West Nusa Tenggara and East Nusa Tenggara. Based on the suspects' testimony, the eastern part of NII includes Kalimantan, Papua, Timor Leste and Malaysia.

"They have their own flag, which resembles the Indonesian flag, but with an added star and crescent. Members are recruited selectively and have to pledge allegiance to state secrecy and take a soldier's oath," Susno said.

He said accusations directed at the NII thus far have proven true. He said they recruited and indoctrinated people by claiming Indonesia did not recognize Islam. New members then go through a ritual to cleanse them of their sins and later become victims of extortion.

"They have a structural governance, a constitution, ministers, religious leaders, governors and officials all the way down to village level. They also have territories and proclaimed independence, but not international recognition," Susno said.

In 2002, West Java Police arrested some of the same suspects, but failed to prosecute them because of a lack of evidence.

The illegal movement is still running and involves many members who are believed to have perpetrated crimes, such as fraud and theft, to pay their dues to the NII. Susno declined to comment on whether the Al Zaytun Islamic boarding school in Indramayu was involved in the movement, based on testimonies and evidence seized by police. "We are still building the case," he said.

Government book policy 'lacks clarity'

Jakarta Post - May 14, 2008

Erwida Maulia, Jakarta – While welcoming the government's newly launched book regulation for schoolchildren, critics say the policy lacks clarity, sets wrong targets and failed to involve all stakeholders during the formulation process.

Association of Indonesian Publishers (IKAPI) chairman Setia Dharma Madjid told a discussion here Monday the government applied a "double standard" in the new policy.

"On one hand, the government buys copyrights from authors, but on the other hand, it insists on assessing our books," he said. "This is unclear. If we can't publish school textbooks anymore, then we won't publish them."

Coordinator of the Independent Group for Book Advocacy (KITAB), Fitriani Sunarto, said the 2008 regulation on the school textbook policy, issued by the Education Ministry, failed to provide clear controls and sanctions for violators.

"It only mentions that teachers or publishers violating the regulation will face sanctions based on existing regulations. But which regulations? I'm afraid it will repeat past mistakes; violations were never settled and offenders were only reprimanded," Fitriani said.

The ministerial regulation prohibits teachers from selling textbooks at school, a prohibition that officially has been in place for years, if seldom enforced. The book policy regulates the provision of textbooks at schools and ensures their quality and low price.

Through the policy the government will buy the copyrights to 295 textbooks for elementary schools, junior high schools, high schools and vocational high schools by the end of the year, and allow students to download the books for free. So far, the copyrights of 49 textbooks have been bought at between Rp 45 million (US$4,900) and Rp 75 million each.

Jakarta State Polytechnic lecturer Junaidi Gafar singled out the government's online book policy, which he said was "wrongly targeted" because only schoolchildren from affluent families could access the Internet to download the books.

"So, these e-books are accessible only to those who don't need help to buy their schoolbooks," Junaidi said. He also said the government seemed unprepared to protect its website from hackers, who might easily change the content of books.

Junaidi and Setia said the government should have involved other stakeholders, such as publishers, printing companies and teachers, in drafting the regulation.

Fitriani suggested the regulation be revoked. "The affordable book policy means the government is denying its responsibility to provide free books for students," she said.

Another speaker at the discussion, a member of the House of Representatives' education commission, Ferdiansyah, said the new book policy was a result of political pressure put on the government to provide affordable books for students.

He said costly books accounted for a large percentage of school fees. However, Ferdiansyah said the government should not become too involved in the sale of textbooks.

"The Education Ministry should have involved the Industry Ministry and the Trade Ministry in drafting the book regulation," said the Golkar Party politician.

East Java campaign targets rights for disabled

Jakarta Post - May 9, 2008

Duncan Graham, Contributor, Malang – A campaign is underway in East Java to push the next provincial governor to ease the plight of the disabled.

Spearheaded by award-winning author and activist Ratna Indraswari Ibrahim, 59, of Malang, the five-member committee Bhakti Nurani Yayasan (Foundation for the Handicapped) is demanding gubernatorial candidates discuss disabled-accessible public facilities.

The election campaign for the position of East Java governor is well underway, although voting will not be until later this year. Ratna said candidates had yet to respond to letters.

She hoped to get support from prominent people and major companies to lead the way in adapting their buildings to make them accessible to all.

Indonesia has signed the 2007 UN Convention on the Rights and Dignity of People with Disabilities, but Ratna said there had been no follow-up. "There are about 2 million disabled people in East Java, but it seems that we are the forgotten ones," she said.

"The authorities think we are not important and have no potential. This campaign isn't for me – it's for everyone who can't get access to public facilities."

Ratna uses a wheelchair after suffering from a form of rickets, a bone-wasting disease. Despite the severity of her handicap, which means she cannot use a keyboard and has to dictate her work, she's had more than 300 short stories, poems and articles published.

Ratna said she had visited Australia and the United States where building owners and civil authorities were obliged to install special parking areas, wheelchair ramps, wide doorways and toilets for the handicapped.

This is not her first attempt at promoting change. In 1994 she was given a national award by then president Soeharto for agitating on behalf of the disabled – arguing that all citizens have the right to use public space.

"Roads in Malang and other cities are so crowded and in such bad repair that using a wheelchair is hazardous," she said. "Travel is a real difficulty in Indonesia, especially in the villages.

"I have to be carried up stairs in public buildings. Handicapped people don't want to rely on others. Because someone has a physical disability doesn't mean that we can't use our brains and contribute to society.

"There should also be a quota ensuring employers include people with disabilities in their workplaces.

"This campaign isn't just for the handicapped. It's a human rights issue that should concern all members of society. I want the media to take this up as a serious issue and stop focusing on matters like celebrities' divorces, Ratna said.

"It's my duty to try and get these important changes in place before I die."

 Demos, protests, actions...

Fifteen protest actions to rock Jakarta today

Detik.com - May 15, 2008

Ramadhian Fadillah, Jakarta – Fifteen protest actions will rock Jakarta today, Thursday May 15, all of which have the potential to create traffic congestion.

At the State Palace on Jl. Medan Merdeka Utara in Central Jakarta, alternating demonstrations will be held by the Jakarta Residents Forum (Fakta), the Urban Poor Consortium (UPC), the Jakarta Trade Union (SBJ), the Indonesian Muslim Students Action Front (KAMMI) and the Solidarity Network for the Families of Victims of Human Rights Violations (JSKKP-HAM). The first protest will start at 10am.

Also at 10am, the Wantimpres (Presidential Advisory Board) office on Jl. Veteran will also be inundated by protesters from the Islamic Militia Command (KLI).

The Corruption Eradication Commission offices on Jl. HR Rasuna Said in South Jakarta will also be the target of a protest by the South Sumatra Student Command (KMSS), the Lampung Student Network (JML) and the Banten Anti-Corruption Student Alliance (AMBA).

At 1pm the offices of the Minister for Energy and Mineral Resources on Jl. Medan Merdeka Selatan will be rocked by a demonstration by Islamic Student and Youth Movement (GMPI).

Also at 1pm, the Jakarta Teachers Union (SGJ) will be holding protests at the office of the State Minister of Administrative Reforms (Menneg PAN) on Jl. Sudirman and the House and the House of Representatives building on Jl. Gatot Subroto.

Protest actions by various student groups will also be taking place between 9am and 5pm.

"All of these protest actions have the potential to create traffic congestion, motorists passing through these locations should anticipate this," said First Brigadier Heri from the Metro Jaya regional police Traffic Management Centre when speaking with Detik.com.

The list of demonstrations will also be added to with a strike by public transport drivers that will take place on Jl. Daan Mogot in West Jakarta. (rdf/nrl)

[Translated by James Balowski.]

Students rally for Trisakti tragedy

Jakarta Post - May 13, 2008

Jakarta – Around 2,000 students from universities across the country rallied in front of the State Palace on Jl. Medan Merdeka Utara, Central Jakarta, on Monday to commemorate the 10th year of the Trisakti shooting tragedy.

Garry Setiawan from the State University of Semarang, Central Java, who participated in the rally, said he and many other students planned to stay in front of the palace, on Jl. Medan Merdeka Utara, until President Susilo Bambang Yudhoyono pledged to meet their demands.

"Before we have his promise, we will not go home," he said. They demanded the government resume the legal process for corruption charges against former president Soeharto and his close allies.

On May 12, 1998, soldiers allegedly shot and killed four students – Hendriawan Lesmana, Hafidin Royan, Heri Hartanto and Elang Mulya – at Trisakti University during a student protest demanding the resignation of then president Soeharto. The incident was followed by anti-Chinese riots from May 14 to 15, in which at least 1,200 people were killed.

Hundreds of police were present at the demonstration on Monday, which ran peacefully.

Even though there was traffic congestion in front of Atma Jaya University on Jl. Sudirman, Central Jakarta in the morning, the rally caused little traffic disruption overall. Traffic along Jl. Medan Merdeka Barat heading to the palace was normal, as it was on Jl. MH Thamrin, Jl. Hayam Wuruk and Jl. Gajah Mada in Central Jakarta.

Garry, who majors in public health, said he arrived in Jakarta at 5:30 a.m. together with other university students from Yogyakarta and cities across Central Java including Semarang, Solo and Purwokerto.

Hundreds of Trisakti University students also held a demonstration in front of the Attorney General's Office on Jl. Sultan Hasanuddin, South Jakarta, on Monday.

They called on the government to continue the legal process for the Trisakti tragedy, as well as for the shootings that took place near Atma Jaya University in Central Jakarta, known as the Semanggi I and Semanggi II incidents.

Their demands were heard by the AGO's head of information and law center, B.D. Nainggolan, and the director of human rights for the deputy attorney general for special crimes, Aminur Rasyid Rambe.

In the Semanggi I tragedy on Nov. 13, 1998, 17 people were killed and 456 were injured at the Semanggi overpass, near Atma Jaya University. Semanggi II occurred at the same place between Sept. 22 and Sept. 24, 1999, claiming nine lives. (uwi)

Seven protests to colour Jakarta today, watch out for traffic

Detik.com - May 13, 2008

Ken Yunita, Jakarta – Protest actions will again colour Jakarta today, Tuesday May 13. Aside from the State Palace, the House of Representatives (DPR) building, the Vice Presidential Palace and the National Police headquarters will also be targeted by demonstrators.

Based on information from the Metro Jaya regional police Traffic Management Center (TMC), the protests will begin in the early morning and continue until late afternoon.

The first demonstration at the State Palace – which will start at 6am – will be held by students who have camped over night in front of the Palace. The second protest by an estimated 250 people will be held by Hizbut Tahrir Indonesia at 12.30pm. Still at the Palace, the Kosgoro National Cadre Management Agency will hold a protest action between 3-5pm.

At the DPR building on Jl. Gatot Subroto meanwhile, around 500 people from an alliance calling itself the Preparatory Committee for the Formation of the Aceh Leuser Antara (ALA) Province will hold a demonstration at 9am.

Then at the Vice Presidential Palace, around 150 people from the North Sumatra Education Social Forum (FMPSU) will hold a protest between 10am and 12noon. They will be demanding that the management of the North Sumatra Islamic University (UISU) be returned to the UISU Foundation.

Next, the North Maluku Student and Youth Communication Forum will hold a demonstration in front of the National Police headquarters on Jl. Trunojoyo in South Jakarta at 10am. They will be demanding an investigation into corruption cases involving fire engines and refugee funds in Maluku province.

The last protest action will be held by the Jakarta Kosgoro Legal Aid Foundation between 10am and 4pm. They will be holding actions at five different locations – the PT. Total E & P Indonesia offices, Kuningan Plaza, the French Embassy on Jl. MH Thamrin, the offices of the State Minister for Energy and Mineral Resources and the Supreme Court. (ken/ken)

[Translated by James Balowski.]

 Fuel price hikes

Workers, small-scale industry will be worst hit by price hikes

Kompas - May 15, 2008

Jakarta – Workers in the 1-3 million rupiah per month wage group will be further squeezed if the planned fuel price increases come into effect. This is not just because real wages are steadily declining, but also because workers face the possibility of being dismissed due to the economic pressures confronting industry.

"Out of the 37 million workers in the formal sector, almost half receive a wage of between 1-3 million rupiah per month. The government should think about the impact of the fuel price hikes on middle-class income groups", said All Indonesia Labour Organisation (OPSI) president Yanuar Rizky in Jakarta on Wednesday May 14.

Fuel price increases will not only have a serious impact on mid- income groups, but small-scale, household and labour intensive industries are also extremely sensitive to fuel price increases.

Rizky said that when the price of fuel was increased by 114 percent in October 2005, at least 400,000 workers were dismissed a month after the price increases came into effect. Many small- scale and household industries fell into bankruptcy.

The results of an OPSI survey in December 2005 of workers in the formal sector in Jakarta and the satellite cities of Bogor, Depok, Tangerang and Bekasi indicated that as a result of the October fuel price increases, transport costs rose by 53.8 percent, the price of food bought by officer workers increased by 41.4 percent, family food expenditure went up by 51.5 percent and housing rental rates increased by 47 percent. In such a situation, there should have been a wage rise of as much as 48 percent.

According to Rizky, the planned fuel price hikes will also trigger increases in the price of consumer goods, even though workers' purchasing power is declining. Thus people will obviously have to reduce consumption because they will be unable to keep up with price increases. "The majority of workers whose wages are inadequate to meet their daily needs will make up the difference by falling into debt", added Rizky.

According to a survey conducted by OPSI on April 30 this year, out of the 816 respondents who replied 227 stated that they borrowed money from commercial lending institutions in order to cover their living costs. As many as 204 people borrowed money through credit cards, 195 borrowed from families and 61 used a combination of all three.

"The dependency of workers in the middle-wage group on credit card [debt] is extremely high. If they are dismissed, [widespread] non-performing credit card debt could impact upon the banking industry", said Rizky.

Confederation of Prosperity Labor Unions (K-SBSI) president Rekson Silaban is of the view that the group that is most vulnerable to the economic situation is contract labourers. "As industry comes under pressure, the easiest way to reduce costs is to rationalise by dismissing contract labourers", he said. (HAM)

[Translated by James Balowski. The original title of the article was "Workers earning less that 4 million per month will be further squeezed".]

Foreign interests using fuel price demos to 'divide and rule'

Detik.com - May 15, 2008

Nograhany Widhi K, Jakarta – Devide et impera. It appears that the strategy of pitting one side against the other during the Dutch colonial period is still not out of date – including in the lead up to the government's planned fuel price increases.

According to security expert Wawan Purwanto during a discussion with Detik.com on Wednesday May 14, the momentum created by the protests against the fuel price hikes is indeed being used by certain parties to 'pummel' the government's image.

"It's not impossible that the price of oil will reach US$200 per barrel. Whoever holds the reins of government would be staggering, right. President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla will definitely be under pressure from all sides", said Purwanto.

In addition to this he said, in the lead up to the 2009 presidential and legislative elections there are parties that want to attract the public's sympathy, as if they are siding with the people. "They are coming together to seek sympathy. This is their momentum", he said.

When asked about the possibility that there are those who will who take advantage of the anti-fuel price hike demonstrations for their own benefit, including foreign parties who have an interest in Indonesia, Purwanto said that could well happen. The foreign interests playing this role however are clearly not acting alone.

There are a number of domestic parties, he added, many of whom could be hired for political as well as economic motivations. "Not playing a role directly but through networks. The country will not be destroyed by foreigners but through the hands of inside people who they want to pit against each other," he explained.

Purwanto is therefore recommending that the public be more rational, not emotional and think before actng. If not, the public could easily be played off against each other. "So devide et impera will be repeated. If we don't learn from history, that will be the result", he said in conclusion. (nwk/nrl)

[Translated by James Balowski.]

Foreigners using fuel protests for own ends, cabinet infiltrated

Detik.com - May 15, 2008

Nograhany Widhi K, Jakarta – A former director of the State Intelligence Coordinating Body (Bakin), Dr. A.C. Manullang, says he is not surprised by the statement by National Intelligence Agency (BIN) chief Syamsir Siregar that the demonstrations against the government's planned fuel price hikes are being taken advantage of.

Manullang even believes that the cabinet of President Susilo Bambang Yudhoyono (SBY) has been infiltrated by foreign intelligence agents.

"Prior to Siregar saying that, long beforehand based on my own intelligence monitoring, I said that there are many foreign agents in SBY's cabinet", said Manullang when speaking with Detik.com on Wednesday May 14.

And it is not impossible, he said, that many other government officials have been influenced by or even compromised by foreign intelligence agencies. "Our mistake is why intelligence is unable to implement or accomplish its task of carrying out counter intelligence. BIN is limited in its ability to carrying out counter intelligence", he said.

Counter intelligence he added, must be accompanied by clandestine intelligence operations such as undercover work, to examine who the president's assistance are that are working for the interests of foreign intelligence. And the results reported by Siregar to the president should include how to prevent the demonstrations.

"Pak Syamsir is actually obliged to report directly to the president. The current demonstrations must be prevented and avoided, not fired on. But before this happens it must be assessed and reported to the president. The president will then instruct the government agencies to deter them", he said.

What was actually said by Siregar, he added, was in fact related to the 2009 presidential elections. Many parties are competing to win an opportunity to become Indonesia's Number 1. "This (the planned fuel price increases) could reduce SBY's popularity", said Manullang. (nwk/nrl)

[Translated by James Balowski.]

Students not the problem, real danger is hunger and separatism

Detik.com - May 15, 2008

M. Rizal Maslan, Jakarta – The government doesn't need to be concerned about the massive demonstrations by students opposing planned fuel price hikes. Rather, the real danger will be if hungry people take to the streets.

"If students demonstrate it's not a worry, but if hungry people take to the streets now that's dangerous", said former army deputy chief of staff retired Lieutenant General Kiki Syahnakri when speaking to journalists following a book dissertation at the Nahdlatul Ulama Central Board offices on Jl. Kramat Raya in Central Jakarta on Wednesday May 14.

According to Syahnakri, what needs to be monitored at the moment is separatist groups who are waiting for Indonesia to descend in to chaos. "That's what [we] need to be on the lookout for in 2008", he added.

According to information obtained by Syahnakri, based on 2005 data around 300,000 to 1 million people were dismissed because of the impact of the previous fuel price increases. Many industries closed and companies reduced their production capacity.

"If this time around 2.3 to 3 million people loose their incomes, can or can't I imagine a situation such as this now," he explained.

With regard to government efforts to overcome the impact of the fuel price hikes and possible dismissals, Syahnakri said that it is precisely this that the government is not prepared for. "I haven't seen any government preparations to anticipate this", he answered briefly. (zal/nwk)

Notes:

Kiki Syahnakri was appointed commander of the Indonesian military in East Timor in September 1999 after pro-Jakarta militiamen went on a violent rampage in the wake of the independence vote. Along with former armed forces chief General Wiranto and six other senior generals, in February 2003 he was indicted for crimes against humanity by the joint UN-East Timor Special Crimes Unit.

[Translated by James Balowski.]

Parties get behind oil price hike

Jakarta Post - May 11, 2008

Abdul Khalik, Jakarta – Major political parties are throwing their support behind the government's unpopular plan to raise fuel prices early next month.

The United Development Party (PPP), the third-largest faction in the House of Representatives, is the latest party to publicly declare its support for the controversial policy. PPP chairman Suryadharma Ali said Saturday his party understood why the government had to increase fuel prices given the skyrocketing global price of oil.

"The oil price surge has placed a huge burden on the state budget because of much higher subsidies. We can no longer avoid the issue and maintain the current oil price just to win popularity," Suryadharma, the state minister for small and medium enterprises and cooperatives, told a news conference during the party's national meeting in Jakarta.

Other major political groups backing the plan include Vice President Jusuf Kalla's Golkar Party, President Susilo Bambang Yudhoyono's Democratic Party, the National Mandate Party (PAN) and the Prosperous Justice Party (PKS).

Strong opposition has come only from the Indonesian Democratic Party of Struggle (PDI-P), the party chaired by former president Megawati Soekarnoputri.

"The government should find other alternatives before raising fuel prices," PDI-P lawmaker Ganjar Pranowo said. "This proposal breaks Yudhoyono's own political promise (made after he increased fuel prices in 2005)."

Gaining the support of most major parties will clear the way for the Yudhoyono administration to go ahead with the plan.

The government announced its plan to increase fuel prices to an "affordable" level earlier this month, to allow cuts to burgeoning fuel subsidies, which threaten the sustainability of the state budget.

With global oil prices hovering at more than US$120 a barrel, Yudhoyono has faced intense pressure from businesses and economic ministers to cut the subsidies that keep the domestic prices of gasoline, diesel fuel and kerosene below international market levels.

The government earmarked about 12 percent of this year's total national budget, or about Rp 987.48 trillion (US$107 billion), for fuel subsidies. Analysts have warned uncertainty about fiscal sustainability will harm overseas lending and foreign direct investment and thus weaken the national economy.

Funds for infrastructure development, education and health are also likely to be slashed as spending on subsidies continues to overwhelm the state budget.

Vice President Jusuf Kalla said recently fuel prices would not be increased by more than 30 percent. Golkar lawmaker Harry Azhar Azis, who has played a key role in the oil price hike policy, said prices would be increased by an average of 28.7 percent.

Observers have said Yudhoyono would need strong political support from the House to minimize the political fallout from the policy and head off widespread public demonstrations.

Lukman Hakim Saifuddin, the PPP faction chairman at the House, said his party's 58 House members would support the fuel increase provided the government compensated low-income earners to offset the impact of the decision. "We demand a government guarantee to invest more in improving people's incomes to boost their capacity to buy basic commodities and pay for health care and education," he said. The government must also initiate labor-intensive projects that create employment for low-income earners, Lukman said.

In voicing support for the plan, PKS lawmaker Mutammimul Ula said the fuel price hike was unavoidable. "The House has not come up with any better alternatives so we have no choice but to increase the prices," he said.

PAN legislator Djoko Susilo said his party supported a fuel price hike as a last resort only.

Panic buying follows government plan to hike fuel prices

Jakarta Post - May 10, 2008

Ika Krismantari, Jakarta – State oil and gas company PT Pertamina is struggling to control the distribution of subsidized fuels as panic buying has followed the government's announcement of a plan to raise fuel prices.

The buying was exacerbated by illegal hoardings which caused scarcity in fuel supply, said a Pertamina official.

"People have prepared for the plan by buying gasoline in quantity, more than usual. We are trying our best to control this situation," Pertamina deputy director for marketing Hanung Budya said Friday.

Hanung cited the volume of daily gasoline sales in Semarang, Central Java, which rose 15 percent per day to 57,500 kiloliters during the first week of May, due mostly to buying spurred on by the fuel increase plan. He added that in some other areas in Java, Sumatra and Nanggroe Aceh Darusallam sales had risen by an average of 7 percent.

Pertamina spokesman Wisnuntoro said illegal hoarding was also on the rise. "We cannot control the demand but we will tighten the distribution mechanism. We will make sure gas stations only sell products to motorized vehicles, while industries will be required to show a special permit for every purchase," Wisnuntoro said.

Police officers were seen guarding gas stations Friday in some parts of the country, including Bandung, West Java; Yogyakarta, Central Java; Kupang, East Nusa Tenggara; and Kendari, Southeast Sulawesi.

This year's fuel consumption is set at 35.5 million kl. The state budget allocation for fuel subsidies is set at Rp 126.8 trillion (US$13.7 billion), or 12 percent of the government's total expenditure in 2008.

The government last week announced the plan to raise fuel prices in June. The government said it would also start limiting the sales of subsidized fuels by distributing a control card, known as a "smart card", to motorists by September.

The program will be introduced in Jakarta and then to other regions in West Java, Central Java, East Java and Bali.

In North Jakarta, harbor police found nine cases of illicit activities from April 29 to May 6 where subsidized fuels were sold to industries.

Head of the police's criminal division Adj. Comr. M. Iqbal said Friday officers had found three companies that repeatedly bought the fuel. He declined to disclose the companies' names.

Last month, police arrested an employee of PT Excelcomindo Pratama, the third-biggest telecommunications operator in the country, for allegedly buying subsidized diesel from a cooperative in Tangerang, West Java. (ind)

Thousands protest fuel price plan

Jakarta Post - May 13, 2008

Jakarta – Thousands of students across the country took to the streets Monday in opposition to fight the government's plan to raise fuel prices.

More than 1,000 students from various groups and universities across the country picketed the State Palace in Jakarta to pressure the government to reconsider its fuel policy. They arrived at the meeting point in stages, beginning around 11 a.m.

President Susilo Bambang Yudhoyono was in Surabaya, East Java, to commemorate National Education Day at Airlangga University, when the sea of students gathered outside his office under the close watch of police. Officers were forced to detour traffic because the protesters occupied the road.

Although smaller in number, the rally was reminiscent of a wave of student demonstrations in May 1998 that led to the resignation of then president Soeharto after 32 years in power.

In Tangerang, a group of students blockaded a gas station for over an hour en route to the State Palace. In Surabaya, police arrested a student from Sunan Ampel State Islamic Institute following a skirmish as protesters broke through a security cordon at Airlangga University.

Some students demanded the President step down for failing to solve national problems, including the soaring prices of basic commodities and the high cost of education.

During the National Education Day commemoration, Airlangga University students presented President Yudhoyono their proposed solutions to corruption, unemployment, and poor law enforcement and governance in the country.

Demands for Yudhoyono's resignation also were heard in Yogyakarta, as thousands of students marched to the provincial legislature to seek support for their fight against fuel price increases and for the completion of the reform agenda.

"Raising fuel prices means the government of SBY-JK is breaking its own promise to bring prosperity to the country. We demand they step down if they go ahead with their plan," rally coordinator Haris said, referring to President Yudhoyono and Vice President Jusuf Kalla.

In the South Sulawesi capital of Makassar, about 1,000 students gathered outside the provincial legislative building to demand the government seek alternatives to raising fuel prices, including the recovery of state assets stolen by businesspeople who received Bank Indonesia liquidity support in the late 1990s.

Rallies also occurred in Balikpapan in East Kalimantan and Pekanbaru in Riau, major oil producing provinces.

Amid noisy student rallies against fuel price increases, housewives in some areas in Bandung lined up to buy kerosene and liquefied petroleum gas. Some of the women said the two commodities had become scarce in the last two weeks, and their prices had doubled.

Protests against fuel price hikes continue across the country

Kompas - May 10, 2008

Kediri – Protest actions against the government's planned fuel price hikes continued in a number of cities around the country. Demonstrations by housewives, pedicab drivers, vegetable vendors, the urban poor and students took place in Makassar, Kediri, Yogyakarta, Semarang, Bandung and Sukabumi on Friday May 9.

Scores of residents in the East Java city of Kediri held a protest action near the Brantas River bridge in Pocanan yesterday morning. The majority of protesters were petty traders, youth and pedicab drivers (becak) several of whom parked their pedicabs on the side of the bridge spanning the Brantas River that cuts through the centre of Kediri city. The housewives of vegetable street vendors also stopped trading for several hours to take part in the action opposing the fuel price hikes.

The demonstrators demanded that the government revaluate the planned increases saying they hoped that it would choose another option. They also called on the Kediri Regional House of Representatives (DPRD) not to remain silent on the issue.

One of the pedicab drivers, Ayub, said that he will no longer be able to provide for his family if the government increases the price of fuel. Murniati, a trader at the Bandar Market said that the prices of basic commodities are already going up even though the fuel price rise has not happened yet.

In the South Sulawesi provincial capital of Makassar meanwhile, around 100 housewives demonstrated at the South Sulawesi DPRD voicing their opposition to the planned hikes. The protesters, who had walked from the Indonesia Muslim University campus to the DPRD, brought dozens of banners and poster with message opposing the price increases and handed out leaflets in the name of the Makassar branch of the Indonesian Poor People's Union (SRMI).

SRMI chairperson Wahidabaharuddin Upa said that cutting fuel subsidies was not the only way to overcome the state's financial problems. SRMI is proposing instead that the government nationalise foreign oil and gas companies and place a moratorium on the payment of the foreign debt until the people's welfare has improved saying that this would be a better way to resolve the problem.

Pots and pans

Around 100 urban poor in the city of Sukabumi in West Java from the United Poor People's Forum (FRMB) also held a protest action at the Sukabumi city hall. The protesters, who were dominated by housewives, brought household utensils such as pots, pans and jerry cans as a symbolic protest against the price hikes.

One of the demonstrators, Ny Ai, said that the price of basic commodities is already out of the reach of the poor. "If the price of fuel goes up, the price of food will most certainly rise even higher", she said.

Students also held protests against the planned price increases in the Central Java cities of Yogyakarta and Semarang and the West Java provincial capital of Bandung. In Yogyakarta, joint actions were held to coincide with the arrival of a number of government officials including Vice President Jusuf Kalla, who was attending the marriage of one of Sultan Hamengku Buwono X's children. (NIK/ROW/AHA/A03/WER/A15/LAS)

[Slightly abridged translation by James Balowski.]

 Aceh

Despite peace, reintegration remains slow in Aceh

Jakarta Post - May 10, 2008

Hotli Simanjuntak, Banda Aceh – Despite peaceful conditions, the reintegration of ex-combatants and victims of human rights abuses in the once-restive Aceh province has stalled on political and economic issues.

The chairman of the Aceh Reintegration Agency, Thamrin, said the program not only insured compensation payments were made to ex- combatants but also sought to involve them in political and economic fields to integrate them into society.

"All economic potentials and resources should be developed to empower ex-combatants following their disarmament and demobilization. This is important to allow them to live normal lives in society," he told The Jakarta Post here recently.

He said a huge fund had come to Aceh from international donor countries, but that it had yet to stimulate economic growth.

He said many ex-combatants still depended on government cash aid transfer and that the situation could endanger the peace agreement between the government and the then Free Aceh movement signed in Helsinki, Finland, on August 15, 2005.

Former Aceh peace facilitator Martti Ahtasaari, who along with foreign envoys toured the province last week, said the reintegration was not going as well as expected. "I think the reintegration process remains a heavy task for all of us, and it still needs several more years," he said.

Ahtasaari, who is now director of the Crisis Management Initiative and a former president of Finland, said despite the stagnancy, the peace process in Aceh was already running in a good and encouraging way.

"In my meetings with the people of Aceh in the districts of Southeast Aceh, Central Aceh and Banda Aceh, they said they were enjoying the peace process," he said, while accompanied by Aceh Governor Irwandi Yusuf, Iskandar Muda, Military Commander Maj. Gen. Supriandin and Aceh Police Chief Insp. Gen. Rismawan.

He said he was hopeful the reconciliation process in Aceh could be implemented soon.

The Finnish former president said recent sporadic criminal acts in the province, including an incident referred to as the "Atu Lintang" case, in which five Aceh Transition Committee members were killed in Central Aceh, had not effected proceedings. "Although a few acts of violence have occurred, they have not disturbed the peace process in Aceh."

Law practitioner Hendra Budian said the project's stalling had a lot to do with the absence of a standard concept, or a blue print, on how to carry out the program. He said he was deeply concerned that thousands of ex-combatants had yet to receive government compensation.

Irwandy pledged last year he would resume the reintegration this year but so far no measures have been taken. Since the program was first initiated, more than 2000 ex-combatants have received compensation from the government but most have remained unemployed due to a lack of education and skills.

 West Papua

Papuans, government at odds over Morning Star flag

Jakarta Post - May 12, 2008

Nethy Dharma Somba, Jayapura – The controversial Morning Star flag has again created tension between the central government and Papuans, who are now at loggerheads over the province's proposed flag.

"It's like a thorn through the flesh. Papuans want it to become their provincial symbol while the government is against it. This is provoking conflict," Papuan councilor Yance Kayame said Friday.

The Papuan Tribal Council recommended in July 2007 the provincial authorities take the Free Papua Movement's flag as an official symbol of the province.

The recommendation won the support of the Papua People's Council (MRP) as has been included in the special provincial draft law, submitted to the Papuan legislative council (DPRP) for endorsement. xThe Jakarta administration has banned various practices and symbols relating to the Free Papua Movement.

"The Morning Star is the separatist movement symbol as has been indicated by the court in the past. Why do they insist on using it as official symbol?" Papuan Provincial Police chief Insp. Gen. Max Donald Aer said Friday. He suggested the government review regulations and hold a competition to establish a new provincial symbol.

In a discussion to observe the seventh anniversary of Papua's special autonomy, Yance said the province needed clearer vision for the development programs in the next 25 years. "The province has been walking without direction or common goals. We have to think about long-term targets," he said.

Yance, also chairman of Commission A on defense and information at the provincial legislative council, said many people were yet to enjoy the special autonomy because no targets had been set, despite huge funding.

"The provincial legislative council and the government should speed up the deliberation of special and provincial draft bylaws to enforce the 2001 special autonomy law and to give priorities to certain sectors, such as education, health and transportation," he said.

He also called on Jakarta to suspend the development of Papua into four new provinces, a move which has sparked strong opposition from numerous sides in the province.

"It is not difficult to govern Papua's small population of 2.4 million. The most important thing is that government and security authorities create a positive climate in the province so people can live peacefully and that the development program be carried out smoothly," he said.

Regional police launches 'First Operation Mambruk - Year 2008'

Cenderawasih Pos - May 10, 2008

It is the duty of the State security forces to anticipate any expression of any aspiration for independence or any rejection of special autonomy which has shown greater development now as the separatist movement has crystalised within the community leading to a demand to separate from the Unitary State of the Republic of Indonesia.

In a ceremony at Jayawijaya regional police headquarters on Friday morning (9/5/2008) launching the implementation of the police operation in Jayawijaya regency (which is called First Operation Mambruk - year 2008), the Deputy Head of Jayawijaya Police, AKP Sri Satyatama, SIK read the Head of Jayawijaya Police's (AKBP Marolop Manik) statement which said, "the voice of freedom which blows like a wind is a threat to the state disintegration and is dangerous for community security and stability in Papua and West Papua province, especially in Jawijaya regency".

The operation that is supported by all parties will focus on intelligence activities. It will last for thirty (30) days from May 9th to June 7th 2008. Two hundred personnel attended the ceremony. However, the operation will involve 60 personnel who will be involved in the operation directly. (jk)

 Human rights/law

UN body criticizes 'widespread' torture by police, military

Associated Press - May 16, 2008

Bradley S. Klapper, Geneva – A UN panel said Friday that Indonesian police and military forces are allegedly engaging in widespread torture, and it urged the world's largest Muslim country to punish the abuse of prisoners.

Indonesia "should take immediate steps to prevent acts of torture and ill-treatment throughout the country, and to announce a zero-tolerance policy on any ill-treatment or torture by state officials," said the UN Committee against Torture.

The panel of 10 independent experts, which reviews adherence to the 1984 international anti-torture treaty, cited "numerous, ongoing, credible and consistent allegations" of abuse in Indonesia.

Police practice torture "especially to extract confessions or information to be used in criminal proceedings," while security forces and paramilitary groups employ "widespread torture and other cruel, inhuman and degrading treatment" in military operations against rebellious provinces, the committee said.

In its report to the committee, Indonesia described its commitment to the global ban on torture as "unwavering" and said its courts had adopted a broad view of torture that goes beyond international standards.

But the UN panel said credible allegations of torture and prisoner mistreatment committed by Indonesian law enforcement, military or intelligence services are "seldom investigated and prosecuted."

"Perpetrators are rarely convicted or otherwise sentenced to lenient penalties which are not in accordance with the grave nature of their crimes," it said. "No state official alleged to have perpetrated torture has been found guilty."

The committee said Indonesian police investigations heavily rely on confessions as a form of evidence for prosecution, which may promote torture. It criticized Indonesia for failing to say that confessions extracted under torture cannot be used in court proceedings. "Criminal convictions require evidence other than the confession of the detainee," the Geneva-based body said.

It also criticized police for failing to bring prisoners promptly before a judge, noting that they can first be held in custody for up to two months. Some detainees are never registered, the panel added. Lawyers and independent doctors have only restricted access rights.

On the Indonesian armed forces' behavior, the panel said military and "sweep" operations have been particularly abusive in places such as Papua, Aceh and other provinces that have suffered from conflict.

It also noted the high incidence of rape by military personnel in conflict areas, which it called a form of torture. Rape complaints in Indonesia need to be confirmed by two witnesses, making legal action much more difficult.

In Aceh province, the criminal code allows corporal punishment for various offenses, and enforcement is under the authority of a "morality police" known as the "Wilayatul Hisbah," that is not necessarily supervised by national authorities, the committee said. Prisoners are presumed guilty and then publicly humiliated through flogging, caning or other abusive methods. The body said punishments seem to be disproportionately meted out to women.

The panel's 14-page report of "concluding observations" was released after two days of hearings with Indonesian officials.

The Asian country was commended for raising the age of criminal responsibility to 12, but the panel said children as young as 8 were still being sentenced to jail terms or corporal punishment for minor offenses. They are sometimes held captive with adult prisoners.

UN body says torture widespread in Indonesia

Reuters - May 16, 2008

Laura MacInnis, Geneva – Indonesia's police, armed forces and intelligence services routinely torture and degrade criminal suspects to extract confessions, with almost total impunity for those responsible, a United Nations rights body said on Friday.

The UN Committee Against Torture said it was "deeply concerned about numerous ongoing credible and consistent allegations" of abuse in the Indonesian justice system.

Military officials and "morality police" were also found to use disproportionate force and violence, particularly against women, in the Aceh province and other areas of conflict, the 10-member independent panel said in a report released in Geneva.

It cited "grave concerns over the climate of impunity for perpetrators of acts of torture, including military, police and other state officials, particularly those holding senior position."

"No state official alleged to have perpetrated torture has been found guilty," the committee said in its 14-page findings, which are not legally binding but carry diplomatic weight.

The report expounded upon the concerns raised in November by UN torture expert Manfred Nowak, who said torture of detainees in Indonesian police custody was rife despite efforts to combat rights abuses after the ouster of autocratic president Suharto.

Safeguards

The UN panel called on Jakarta to take immediate steps to uphold legal safeguards for those taken into custody, including ensuring all detained suspects get the right to access a lawyer, notify a relative, be informed of the charges laid against them and be brought before a judge in a timely manner.

It told Indonesia to "ensure that all allegations of torture and ill-treatment are promptly, effectively and impartially investigated and that the perpetrators are prosecuted and convicted in accordance with the gravity of these acts.

The committee added state officials should publicly announce a zero-tolerance policy for perpetrators of acts of torture and support prosecution.

Particular concern was raised about "morality police" in Aceh – riven by separatist violence for decades before a peace pact in 2005 – which the panel said had an undefined jurisdiction and unclear supervision by public or state institutions.

"The necessary legal fundamental safeguards do not exist for persons detained by such officials, including the absence of a right to legal counsel, the apparent presumption of guilt, the execution of punishment in public, and the use of physically abusive methods (flogging, caning, etc)," it said.

"The punishments meted out by this policing body have a disproportionate impact on women," the committee added, also raising alarm over a high incidence of rape and sexual violence committed by the military in conflict areas, and sexual abuse and forced labour against female migrant workers in the country.

The UN panel stressed that attacks on ethnic and religious minorities remained a problem in Indonesia, a former Dutch colony that is home to the world's largest Muslim population.

It further called on Jakarta to fully cooperate with international efforts to investigate, prosecute and extradite those responsible for abuses in East Timor, a former Indonesian territory that became independent in 2002. (Editing by Stephanie Nebehay and Janet Lawrence)

Indonesia's human rights report card

Today (Singapore) - May 16, 2008

Nazry Bahraimi – Horrified by the bloody riots that left some 1,200 people dead in Jakarta at the height of the Reformasi movement, human rights activist Rafendi Djamin decided to play the role of healer.

Together with other activists, he got hold of some survivors and brought them to Geneva to deliver their testimonies to the United Nations Sub-com- mission on the Promotion and Protection of Human Rights.

Today, a decade later, the coordinator of Indonesia's Human Rights Working Group – a coalition of non-government organisations fighting for human rights – believes that "justice has not yet been served".

This, despite the fact that Reformasi – a nationwide movement to democratise Indonesia that culminated with the resignation of the late president Suharto in May 1998 – led to the formation of a human rights court in 2000.

And while he believes Indonesians are now more free to voice their dissent compared to the time when Mr Suharto was in power, Mr Rafendi also said the credibility of the Republic's human rights court still comes under question.

Not only has it failed to convict perpetrators of the May 1998 riots that took place in Jakarta and other Indonesian cities, the country's human rights court has also failed to bring to justice those responsible for the human rights abuses that took place in Papua New Guinea in 2000.

Indonesia's army allegedly raided villages that were thought to be supporting separatist movements and carried out violent attacks against East Timor as its people fought for independence from Indonesia in 1999, he said.

"Our human rights court operates just like a criminal court," Mr Rafendi told Today from Jakarta. "For example, testimonies of the victims are not considered evidence of crimes against humanity. But in international courts, they are accepted," he said.

Mr Rafendi was on his way to Bali to participate in a conference about the proposed Asean Human Rights Commission.

Then there is also the failure to consider "commander responsibility", which Mr Rafendi defines as "someone of authority who is a party to a human rights crime if it took place under his watch".

This means Indonesia, unlike the UN which had put the late Serbian dictator Slobodan Milosevic on trial for alleged crimes against humanity in Bosnia, could not charge the masterminds, but only those who were directly involved in abuses.

"Former army chief General Wiranto, for instance, was said to be behind some of the atrocities in East Timor. But he has not been convicted and is now even a presidential hopeful," Mr Rafendi said.

But Indonesia's problems with human rights are not just technical.

Religious freedom, too, has emerged as a major issue, Mr Rafendi said, citing the recent proposed ban of the Ahmadiyah sect as an example.

Indonesia's Coordinating Body for Monitoring Religions and Beliefs – a panel set up under Suharto's rule – intends to outlaw this religious group whose followers claim to be Muslims even though they do not believe that Mohammad was the final prophet, contradicting a central tenet of Islam.

"As far as religion is concerned, the body should protect the freedom to practice it but instead, it has now interfering in the way it should be practised," he said.

However, the biggest human rights issue Indonesia faces 10 years after Reformasi is not esoteric, but rather, bread-and-butter, said Mr Rafendi.

"Yes, we are a country burdened by debts. Yes, we have to pay more than 70 per cent of our annual state budget to institutions like the World Bank, the International Monetary Fund and the Asian Development Bank," said Mr Rafendi.

"But the Indonesian government has consistently been unable to implement pro-poor policies," he said. "No wonder the number of poor in our country has risen since Reformasi."

Press calls for defamation law reform

Jakarta Post - May 13, 2008

Jakarta – Participants at a defamation seminar hosted by ARTICLE 19 and the Alliance of Independent Journalists (AJI) in Yogyakarta are calling on countries in the region to abolish criminal defamation laws and to reform their civil defamation laws to bring them into line with international standards.

They also pledged to work nationally and regionally to combat the widespread abuse of these laws to prevent critical reporting.

"Defamation laws, both criminal and civil, are roundly abused around the region to suppress freedom of expression and criticism of officials and other powerful social actors," said Toby Mendel, senior director of law at ARTICLE 19.

"There is an urgent need to abolish criminal defamation laws and to revise civil defamation laws so that they exert less of a chilling effect of freedom of expression."

AJI is committed to continuing to work with its partners, local, regional and international, to achieve these objectives and to provide legal defense to its members, the alliance's chair Heru Hendratmoko said.

The meeting, held on 9-10 May, brought together groups working on freedom of expression and media freedom internationally, regionally – including from Cambodia, Hong Kong, Malaysia, the Philippines, Thailand and Timor Leste – and from around Indonesia.

A key focus of the meeting was to develop a plan of action for groups working on these issues. The plan includes both regional and national activities.

Key elements of the regional plan are to promote cooperation and solidarity among groups working on these issues and to further develop regional mechanisms for the protection of freedom of expression.

The national plans include promotion of strategic litigation to narrow the scope of defamation laws; building strong constituencies of support to achieve legislative reform of defamation laws; fostering awareness of existing legal defense tools for those charged with defamation; and building capacity among journalists to report more professionally so as to avoid falling foul of the defamation laws.

The participants also took advantage of the occasion to express solidarity with Yogyakarta journalist Risang Bima Wijaya, currently serving a six-month sentence, by visiting him at Cebongan Prison in Yogyakarta.

ARTICLE 19 is working with AJI and LBH Pers, a legal group, on a constitutional challenge in Risang's case, arguing imprisonment for defamation is a breach of the constitutional guarantee of freedom of expression.

Riot victims' families refuse to forget

Jakarta Post - May 14, 2008

Evi Mariani, Jakarta – Six middle-aged women stood on a stage while dozens watched them take turns in reciting a poem about their family members who died in riots a decade ago.

"Out of curiosity, my boy left our house to watch the rampage near Klender Plaza. He never returned," a woman said.

"My grandmother went out to find her children and grandchildren. She went and never returned," another said.

"My husband, he was a hero to me. He went to look for my boy. He never came back."

"My family was often mocked and called looters, thus their deaths were deemed justifiable. But I know better," another recited.

The six women were among the families and friends of the May 1998 riot victims. They gathered Tuesday at the German cultural center, Goethe Haus, in Central Jakarta.

The event, which finishes today, was organized by several NGOs, such as Solidarity of the Nation, to commemorate the 10-year anniversary of the riots. The organizers have held a discussion each day of the event, as well as a documentary screening and an photo exhibition of the riots.

The Tuesday discussion featured speakers like columnist Mudji Sutrisno, artist Emha Ainun Najib, Buddhist monk Nyana Daya and National Commission for Women member Kamala Candra Kirana.

During the event, Roeminah, a mother of a boy who went missing during the riots, said at a discussion she was still waiting for the government to uphold justice on the case.

A National Commission for Human Rights' report said from May 12 to 25, 1998, there was a total of 1,188 people killed in the riots and over 5,000 buildings burned, damaged or looted.

Up until now, no one has been tried over the riots. "The government may forget about us, but we will never forget," Roeminah said.

As part of the commemoration, plans for a memorial house for the May riots were presented. Architect Yori Antar and his assistant, Noviardi Prasetya, designed the house, called Rumah Kenangan (Memory House).

Roeminah said she wanted the house to be built because it would help her, and other mothers, cope with their sorrow after the loss of their children.

Emha said the house should bear a name that would reflect the future, not the past. "It should serve as a reminder that we can be better in the future," he said.

Mudji shared Emha's opinion, saying the house should serve to challenge Indonesians to develop. "The house would be built upon sorrow about the past. But what's next? Can we grow? I'm sure we can," he said.

In his slide presentation on the house design, architect Noviardi explained it would have exhibition panels to display pictures and stories of the riots and the victims. It would also have an audio visual room, a library and a cafeteria.

"It will need a 1,000-square meter block of land. The two-story building will measure 600 square meters," Noviardi said. "We're still looking for a location and funding," he added.

10 years on, Indonesia's rape riots denied but not forgotten

Agence France Presse - May 11, 2008

Presi Mandari, Jakarta – As Indonesians prepare to mark the 10th anniversary of the fall of the Suharto regime this month, the terrible first act of that historic drama is almost too shameful to recall.

Except, of course, for the country's ethnic Chinese minority, which bore the brunt of two days of rioting, rape and arson on May 13-14, 1998 that signalled the beginning of the end of the general's dictatorship.

The riots left more than 1,000 people dead and forced ethnic Chinese women to cower in their homes for days as rape squads – purportedly led by army thugs – roamed Jakarta's streets.

"It was terrifying chaos. People were trapped inside the burning department stores and black smoke was everywhere from the burning buildings and vehicles on the streets," Yuyun, an ethnic Chinese woman, told AFP in the city's Chinatown district.

Hundreds of Chinese-owned homes and businesses were looted and razed during the unrest, which unfolded under the noses of the security forces. Their failure to intervene has fuelled suspicions of military involvement ever since.

If the army's goal was to reimpose its authority as the country reeled from the shocks of the Asian financial crisis, it failed. Instead, the violence heralded the end of Suharto's 32-year rule less than 10 days later.

A lot has changed in Jakarta since those days. The city is enthusiastically democratic, the economy is back on its feet and all the properties damaged and burned in the riots have been rebuilt.

But memories of the gang rapes still haunt the victims, even if most residents would prefer to forget the violence ever happened.

"My aunt phoned us and told us to turn off all lights at home so that the attackers would think nobody was home. We heard that many Chinese women became victims of gang rape," said another ethnic Chinese woman, Tinawati.

She said she hid at home with her mother without turning on the lights for a week before they had the courage to go outside. "At that time I always brought an Islamic veil with me. People told me that kind of trick worked to save Chinese women from attackers," she said.

After Suharto's ouster a fact-finding mission set up by the new president, B.J. Habibie, found that nearly 100 mostly ethnic Chinese women had been gang-raped or sexually assaulted during the unrest.

It found that there was no conclusive evidence of military involvement, but named Suharto's son-in-law, lieutenant-general Prabowo, and the army's then-chief for Jakarta, major-general Syafrie Syamsoeddin, as people of interest for further investigations.

However, the prevalent culture of impunity meant neither Prabowo or Syamsoeddin were investigated and no one was charged over the violence.

A UN special rapporteur who probed the unrest condemned the lack of action and called for all those behind the attacks to be punished. "Otherwise, the legitimate process of politics and governance will always be subverted by shadowy forces who rule civil society through the use of terror," the rapporteur said in her report.

National Commission on Women's Rights chief Kemala Chandra Kirana said there were still those in Jakarta who denied that any rapes took place.

"There was no debate or argument about the number of victims trapped inside the burning buildings. But people doubted whether the gang rapes really happened," she told AFP. "There is a denial of such incidents not only by those in power but also by ordinary people," she said.

Sandyawan Sumardi, a priest and activist who has counselled some of the victims, is angry at the number of times high-ranking officials and even ordinary people have asked what evidence he has that women were raped.

"I ask them one question. If one of your family members was a victim, would you want her to testify in public?" Sumardi asked, adding that victims and rights activists had received anonymous threats telling them to shut up.

"We want to explain to the international community that the 1998 riot wasn't the result of ethnic tensions between indigenous people and those of Chinese descent. It was a military operation," he said. "It was a military operation launched by those who wanted to maintain their power in Indonesia."

Back in Chinatown, Yuyun said she felt no animosity from indigenous Indonesians.

"The Chinese people have long been united with indigenous Indonesians here in Chinatown. People from all races are basically the same. There's no difference at all," Yuyun said.

"I heard and believe that the riots were perpetrated by the military. They were extremely cruel. I don't think that ordinary people could be that barbaric."

Draft law hampers quest for justice

Jakarta Post - May 10, 2008

The government's draft regulation on compensation, restitution and assistance will obstruct victims of human rights violations in their quest to gain compensation, observers have said.

"This regulation is meant to implement Law No. 13/2006 on victims and witness protection but it does not appear to give adequate protection," Surastini Fitriasih of the School of Law at the University of Indonesia said Thursday.

"Instead, it complicates the procedures at the expense of victims." Worse, there is no system in place to enforce payment if the order is ignored, she said.

Under the draft regulation, victims must be able to identify clearly at least one of their assailants in order to claim damages. The suspects must then be convicted before any compensation can be made.

"But in most cases of human rights violations, the perpetrators are unknown or cannot be prosecuted. Human rights violations are usually committed on a large scale, involving a huge number of people – both victims and perpetrators.

"In some cases, they are perpetrated by the state," Institute for Policy Research and Advocacy deputy director Abdul Harris Semendawai said.

The regulation states perpetrators are responsible for all compensation, restitution and assistance. Only when they are proved to be unable to fulfill their obligations will the state step in.

"This is not in line with international law and practice," said Emerson Yhunto of Indonesia Corruption Watch. "The states are responsible for the victims even if the perpetrators are unknown or the crimes are yet to be addressed in court."

Abdul also questioned the wide role of the Institute for Victims and Witness Protection (LPSK), a new body proposed in the draft, which he said would overlap the work of the National Commission for Human Rights. – JP/Mariani Dewi

 Environment/natural disasters

Government urged to review forest concessions in Riau

Jakarta Post - May 14, 2008

Rizal Harahap, Pekanbaru – The Indonesian Environmental Forum's (Walhi) Riau branch urged the government Tuesday to revise numerous controversial industrial forest concessions issued contrary to the law.

The forum was responding to Forestry Minister M.S. Kaban's recent statement, which asked authorities in the province to stop issuing new concessions to end illegal logging prevalent in the province.

"The statement comes too late as the forest has already been damaged. There is in fact no space left for new licenses here. The minister is just giving lip service," said Walhi Riau coordinator, Jhony Setiawan Munding, here on Tuesday.

The forestry minister at the weekend said his office would no longer issue new concessions that allow forest in Riau to be converted into industrial forests.

He said there had been an adequate number of concessions given in the province and that the measure was being implemented because many concessions were overlapping.

Jhony told he Jakarta Post on Tuesday that according to a 2004 survey 3.2 million hectares out of 6.8 million had been converted into palm oil plantations.

"We have 2.5 million hectares of forest left in the province including the national park, nature preserve, protected forests, and critical areas," he said.

He said 160,00 hectares of forest in Riau was damaged each year since 2002.

"What the forestry minister must do is not to stop issuing new concessions, but rather to review the ones issued through corrupt and conspirative practices, as indicated by recent Corruption Eradication Commission arrests of several regents and other officials in the province," Jhony said.

In 2005, the Ministry of Forestry verified 36 concessions in the province. Only five were issued in accordance with procedure, he said.

Many other concessions have been questioned because they are part of natural rainforests. "Industrial forest concessions can only be issued for coarse grass areas, bushes, or critical fields," said Jhony.

The controversial concessions, according to Jhony, were mainly issued by local regents who did so without approval from the local legislature councils, the governor or the forestry ministry.

Most were issued between 2002 and 2005 with a belief that in the era of autonomy forests were under the authority of the regental governments. "Forest conversion requires the minister's approvals," said Jhony.

Forest concession holders have to use selective cutting, he said, while industrial forest concession holders are allowed to slash all trees in their land areas.

Spokesman for pulp and paper mills PT Indah Kiat Pulp and Paper (IKPP) Nazaruddin said the government's pledge to stop issuing new concessions would not affect his company's timber production.

"With the areas we have, we are confident we can still supply nine million tons of raw materials to meet our 1.9 million-ton pulp production capacity," he said.

He said his company currently has a concession area of nearly 300,000 hectares plus its partner's area of 300,000 hectare.

Nazaruddin said his company was presently promoting the development of the people's forest to empower locals and to maintain raw materials supply to the mills.

KPK forestry inquiry heats up

Jakarta Post - May 13, 2008

Jakarta – The Corruption Eradication Commission (KPK) questioned lawmakers Wowo Ibrahim of the Indonesian Democratic Party of Struggle (PDI-P) and Syarfi Hutauruk of the Golkar Party on Monday, both members of the House of Representatives' Commission IV overseeing forestry and agriculture.

The graft body also grilled South Sumatra Public Works Agency head Dharma Dahlan.

The KPK previously named lawmakers Al Amin Nasution of the United Development Party (PPP) and Sarjan Taher of the Democratic Party, also members of Commission IV, as suspects in a bribery case. The two have been charged with accepting bribes to facilitate forest conversion approvals in Bintan, Riau Islands, and Banyuasin, South Sumatra, respectively.

Environmental activists said they expected the KPK's forest conversion investigation would not stop with Al Amin and Sarjan.

"Illegal land conversion has been going on for a long time in the country. A strong approach to law enforcement is really needed, especially since more than 50 million hectares of forest are severely damaged," said Elfian Effendi, executive director of environmental group Greenomics.

The current land conversion procedure enables corruption, he said. The procedure generally requires any land conversion request to be recommended by the regional administration to the Forestry Minister. The minister requires approval from Commission IV before issuing a ministerial decree concerning the conversion.

KPK deputy head of prevention, Mohammad Jasin, said Monday the commission plans to study the current conversion procedure to look for any flaws that could lead to corruption. Forestry Minister Malam Sambat Ka'ban said all approvals of land conversions were legitimate and KPK should not meddle in the legal decisions.

The minister's claim has drawn criticism from the Indonesian Forum for the Environment (Walhi). "A ministerial decree is not the correct legal basis for a forest conversion. Under the law, the approvals should be made by government regulation," said Rully Syumandra, a Walhi campaigner.

Article 19 of the Forestry Law states the procedure for converting a forest's function and use should be based on a government regulation.

Rully said he hoped the KPK's current investigation into corruption in the forest conversion process would help save more than 120 million hectares of rain forest in Indonesia, the world's third-largest forestry country.

"If we can't do it through an ecological approach, maybe a corruption investigation will do," he said. (dre)

Indonesian forest conversions alarming: Greenomics

Jakarta Post - May 9, 2008

Adianto P. Simamora, Jakarta – Forest conversion has reached an alarming level in Indonesia with more than 10 million hectares of protected forest converted for business use since the inception of regional autonomy in 2000, a study says.

The study, conducted by the Greenomics Indonesia environmental group, found most regional spatial plans do not aim to protect forests.

"In fact, some existing spatial planning... expedites forest conversions," Greenomics executive director Elfian Effendi told The Jakarta Post on Thursday. "The area of converted forest now exceeds 158 times the size of Singapore."

Indonesia is the world's third-largest forestry country, with over 120 million hectares of rainforest. The government has set aside about 40 million hectares for both protected and conservation forests, where plantation, agriculture or logging activities are not allowed.

"However, as forest conversion remains common practice, only 30 million hectares of protected forest are now left. They will disappear in the short term unless the government takes actions to stop forest conversion," Elfian said.

The issue of forest conversion made the headlines when the Corruption Eradication Commission (KPK) arrested lawmaker Al Amin Nasution for allegedly accepting a bribe to facilitate the approval for forest to be converted on Bintan Island, Riau, last month.

The Bintan administration requested the government's permit through the House of Representatives to convert around 200 hectares of a 7,300-hectare protected forest for an office complex project.

The Greenomics study found that in the last two years alone, there were at least 40 cases where forest land was converted into plantations and agricultural land, covering about 195,000 hectares of protected forest.

Greenomics found some 327,000 hectares of its protected forest has been converted under forest concessions in North Sumatra, while in Aceh about 160,000 hectares of protected forest was turned into plantation and agricultural areas.

According to the study, about 143,000 hectares of protected forest has illegally been converted for plantations and agricultural land in Riau province.

The Greenomics also said the West Kalimantan administration had failed to save its protected forests. "About 286,000 hectares of protected forest there has been converted into agricultural estates," he said.

In Central Kalimantan, about 225,000 hectares of protected forest has been converted into plantations.

President Susilo Bambang Yudhoyono should put an end to forest conversion by setting up a national team to determine whether regional spatial planning undermines or sustains protected and conservation forests, Greenomics said.

"We learned that only about 40 percent of spatial planning is aimed at saving protected forest in the country," he said. "But, the forestry ministry seem powerless to handle the problem."

The Greenomics also supports ongoing moves by the KPK to resolve forest corruption cases. Law enforcement against forest conversion practices should be simple because any business activity in the protected forests is illegal, he said.

"The KPK and police should find it easy to investigate forest conversion cases since perpetrators can't obtain a license to convert protected forests," he said.

 Islam/religion

Calls for Indonesian sect members to be banned

Radio Australia - May 16, 2008

Hardline Islamists like Abu Bakar Bashir have joined forces with powerful government agencies pushing for minority Ahmadiya sect of Islam to be formally banned.

Presenter: Indonesia correspondent Geoff Thompson

Speakers: Islamic cleric Abu Bakar Bashir; Sobri Lubis, Muslim Defenders Front.

Thompson: More than 85 percent of Indonesia's 225 million people are Muslims and in times of crisis, that often means Christians and other minority religions became the easy targets of mob discontent.

But with the exception of brutal crackdowns on protests here and there, the last few years have been some of the most peaceful in Indonesia's post-Suharto history. In these times of peace, Indonesia's mainstream Muslims have turned against differences within Islam itself.

Specifically against the sect known as Ahmadiyya.

(Sounds of people talking in the street)

"A group of people is trying to force their beliefs upon us and trying to suppress us and wipe us from the world", says an Ahmadiyya member taking part in a recent protest in Jakarta. From the radical fringe of Indonesian Islam, he has good reason for concern.

Thompson: That's the voice of Sobri Lubis, the secretary general of the hardline Muslim Defenders Front, known as FPI recorded at a meeting which is now doing the rounds of You Tube. His rant calls for Muslims to wage war against Ahmadiyya and kill its followers wherever they are – because they destroy Islam and as for concern for human rights, that's just 'cat shit' he says.

So what is it about Ahmadiyya which draws so much venom. Mahendradatta leads a group of lawyers known as the Muslim Defenders Team which also represents the Bali bombers.

Mehendradatta: They try to push people, to force people to believe that Islam is Ahmadiyya. Ahmadiyya with the book named Shakirah and also the last prophet is not Mohammed but Mirza Ghulam Ahmad.

Thompson: It's complicated, but essentially, Ahmadiyya's opponents claim it's followers believe Mirza Ghulam Ahmad, the man who founded their religion in 1889 and his writings challenged the status of Mohammed as the last prophet and the Koran as God's only word. Ahmadiyya disputes this interpretation of their believes.

Of course, it's hardly surprising that shrill hardliners in mostly moderate Indonesia are on the hunt for new enemies within. But the momentum against Ahmadiyya has now entered the mainstream, with an influential intergovernmental panel powered to oversee people's beliefs investigating Ahmadiyya and recommending it be banned by the Government.

Now the push is on for Indonesia to follow countries like Pakistan where Ahmadiyya are not recognised as Muslims at all. Usman Hamid heads Indonesia's leading human rights group Kontras.

Hamid: Banning Ahmadiyya will give legitimacy to those who are against Ahmadiyya. Banning Ahmadiyya will be a kind of throwing an oil to the fires. So we urge the Government not to ban Ahmadiyya.

Thompson: In Sukabumi in West Java, the remains of a ransacked school lay alongside the burnt out shell of what was the area's Ahmadiyya mosque. When Indonesia's attorney-general avoided making a decision on the recommended ban, a local preacher called on Ahmadiyya to return to mainstream Islam and a mob torched the mosque.

Thompson: There's hundreds of thousands of Ahmadiyya followers across Indonesia but only a few hundred live in this area, and they're scare what will happen when the police leave.

Goona Wan Wadi is the secretary of Ahmadiyya's local branch, a Government ban he says will force Ahmadis to seek asylum in countries like Australia.

(Sound of Goona Wan Wadi speaking)

"There are some offers from our brothers in Canada, Australia and brothers in different cities but we love this motherland so much. If it only because of a difference, why can't we sit and talk peacefully together" he says.

Thompson: Radical cleric, Abu Bakir Bashir tells the Ahmadis to "go for it". They want to seek asylum. "That's what infidels do", he says, "seek protection of other infidels" he says.

He and others pushing for the Ahmadiyya's ban say they simply want the sect to announce itself as a religion other than Islam. Then they say they would support its constitutional right to freedom from persecution.

Government urged to maintain neutrality on Ahmadiyah

Jakarta Post - May 14, 2008

Dicky Christanto, Denpasar – An alliance for religious freedom protested the government's ambiguous stance toward violence committed by some religious-based groups following a recommendation issued by the Board of Monitoring Mystical Belief in Society (Bakor Pakem) that the government officially ban the Ahmadiyah Islamic sect.

The alliance, during a rally in Denpasar, demanded the government take necessary actions to end the violence and bring the perpetrators to court.

"We are here to remind the government that this country was built by various ethnic and religious groups. This country is not ruled by only one ethnicity or religious group, even though it holds a majority," coordinator Nengah Jimat told the rally Tuesday.

"Besides, who gives these organizations the right to label their fellow citizens as heretics? They (public officials) should remember that the Constitution, which is the highest legal authority in our country, has nothing to say regarding this issue and therefore it is their obligation to comply with the Constitution," he said.

Article 29 of the Constitution states that the government guarantees the right of its people to adhere to any religious and traditional belief.

The Alliance of People for Religious Freedom, which comprises dozens of organizations, including pro-bono lawyers, anti- corruption groups and religious-based and student organizations, rallied in front of the governor's office and the local legislative council building.

The governor's assistant for welfare and religious affairs, Adi Djaya, said the local administration shared the same concerns with the alliance and promised to bring these concerns to the central government.

"We are aware that this country's unity should not be compromised over one group's request and therefore we will tell the central government to pay serious attention to this issue and to not yield to their demands," he told the rally.

Three high-ranking officials – the home minister, the religious affairs minister and the attorney general – are expected soon to issue an official order banning Ahmadiyah, a Muslim sect that has been in the country for decades. A number of Muslim organizations, including the Indonesia Ulema Council (MUI), accuse the sect of violating the tenets of Islam.

The council issued a fatwa, or religious edict, label-ing Ahmadiyah as heretical around three years ago.

In response to the edict and Bakor Pakem's recommendation, some Muslim hardliners established a forum to demand the central government officially ban Ahmadiyah.

Since this issue first broke about three years ago, Ahmadiyah has been the target of harassment and violence. Dozens of Ahmadiyah mosques and its followers' houses have been burned down and its followers physically threatened.

Commenting at the issue, lawmaker Made Arjaya, said if the government outlawed the sect it would jeopardize the country's by giving the impression the government was bowing to pressure from a single group.

Ahmadiyah followers urged MUI to scrap edicts

Jakarta Post - May 9, 2008

Jakarta – Ahmadiyah followers outside the office of the Indonesian Ulema Council (MUI) in Central Jakarta on Thursday demanded the Islamic body annul its edicts branding them as heretics.

Amidst jeers and taunts from visitors of Istiqlal Mosque, sect followers and a number of Nahdlatul Ulama clerics from Surabaya, East Java, and Majalengka, West Java, said they were open to a dialogue with MUI to resolve the matter.

"The edicts classifying Ahmadiyah as a non-Muslim organization have no basis, not even in the Koran. Thus I hope MUI will reconsider and even withdraw them," Ahmadiyah spokesman Shamsir Ali said.

"Our activities are the same as those of other Muslims in this country. We read the same Koran and do the same five daily prayers as other Muslims. How can the council say our Koran is different?" he said, adding that Ahmadiyah had translated the Koran into about 100 languages, including Chinese, Spanish, German and Japanese.

"Ahmadiyah members come from different backgrounds and professions. Some of them are employees in state companies members of the House of Representatives and the Attorney General's Office."

MUI officials refused to meet with the group. "They haven't made any appointment with us," said MUI member Amirsyah Tambunan. "The council issued the edicts based on our research and observations, including of the Koran," he said.

In 1980, MUI issued edicts stating Ahmadiyah was a non-Muslim organization and its followers were infidels. The council reissued those edicts in 2005.

Ahmadiyah, whose membership in Indonesia has grown to about 500,000, has recently come under intense pressure to disband. Attacks have been made on their worship places and residential compounds by hard-line Muslim groups that object to their activities.

The situation worsened after the Coordinating Board for Monitoring Mystical Beliefs in Society (Bakor Pakem) issued a recommendation last month to ban Ahmadiyah. The government has yet to act on that recommendation.

"We're fine. We're used to such abuse. We just hope the government will never issue the decree to outlaw Ahmadiyah," Shamsir said.

Former justice minister Yusril Ihza Mahendra said he agreed with MUI's edicts on Ahmadiyah.

"The Indonesian government should follow the example of the Pakistani government that declared Ahmadiyah a non-Muslim organization. However, its followers must still have their rights as citizens," Yusril, a constitutional law professor, was quoted as saying by Antara.

He said Ahmadiyah followers could not claim themselves as Muslims once the government had made such a ruling. "They should not also use Islamic terms, for example. They should use some other word," Yusril said. (trw)

 Armed forces/defense

Indonesia's army to bid business farewell

Reuters - May 16, 2008

Sara Webb – Indonesia's powerful military, pushed out of politics a decade ago when Indonesians embraced democracy, must soon relinquish another prize: a motley array of businesses including golf courses, offices, and taxi firms.

The overhaul of the military, known by its Indonesian acronym TNI, is an important part of Indonesia's political reform, set in train when former President Suharto stepped down a decade ago after 32 years in power.

This is the last part of the TNI, or military reform. This is a big change," said Erry Riyana Hardjapamekas, head of a committee that will sort through the military's businesses and recommend what to do with them over the next few months. While the sale of military-controlled firms to domestic or foreign investors will help raise money, it might also force the government to compensate the military for their loss of income.

For years, it was common practice for members of the armed forces to use their positions to make money on the side. Many of the TNI's businesses, foundations and co-operatives were used to top-up meagre salaries, or pay for housing and education. In other cases, powerful individuals were able to operate more lucrative ventures and live well beyond their official means.

"The government has to think gradually about improving the remuneration system of the military" over the next five to 10 years, Hardjapamek as told Reuters in an interview. That could mean spending more on education, housing, and healthcare for armed forces personnel, and raising salaries for soldiers, who typically earn $100-$300 a month.

The armed forces have dominated Indonesia's modern history, especially under Suharto. They had a quota of seats in the rubber-stamp parliament, committed appalling human rights abuses in suppressing dissent in East Timor, Aceh, Papua and elsewhere, and were involved in widespread corruption.

Now President Susilo Bambang Yudhoyono, a former general and Indonesia's first directly elected leader, wants to turn the TNI into a more professional defence force. Getting the generals and soldiers out of their assorted money-making schemes is a key step in that transition.

Despite Yudhoyono's backing, it may not be easy. Some of the military might not want to give up lucrative business interests or control of co-operatives that form part of a well-trodden career path in the armed forces. "If there is sufficient political will, this problem can be resolved. And the military has said it will co-operate," said Damien Kingsbury, associate professor at Deakin University. Clamping down on the armed forces' involvement in freelance security deals, extortion, smuggling and illegal logging, will prove much tougher. "Income from illegal businesses is probably double that of the legal ones, so it is a much bigger problem. It could take 10 to 20 years to tackle those areas," Kingsbury said.

Suharto, a general, came to power in 1965, crushing what was officially described as a Beijing-backed communist coup and unleashing a bloodbath in which as many as 500,000 Indonesians suspected of having communist links or sympathies were killed. Under Suharto, the military's influence increased, and for decades, the cash-strapped armed forces were encouraged to supplement their low pay with private money-making schemes or through state firms such as oil group Pertamina.

Over the years, the TNI built up holdings in banks, shipping lines, airlines, and even shoe factories, and forged ties with powerful businessmen such as Tommy Winata, a big player in the construction and property sectors. Some of those interests, such as domestic carrier Mandala Airlines, have already been sold. But the military still has over 1,500 co-operatives, firms and foundations, worth about $110 million, which include Matoa and Halim golf courses, shipping firm Admiral Lines, and a stake in Winata's Artha Graha office building, Hardjapamekas said.

It's very difficult to dispel this notion among people that there's no more giant octopus of the army presence as it happened during the seventies and eighties," Defence Minister Juwono Sudarsono told reporters on Thursday. "The military business is still very, very small in comparison to what it was 20-15 years ago."

The most valuable assets may prove to be in the property sector. Apart from golf courses, the military has shopping malls and offices, some of which could be put into a property holding comp any and put up for sale.

The main option is to take them all out from the military, close down all the foundations, co-operatives and create a new clean sheet and fresh blood co-operatives," which could be modelled on the US military's PX stores, Hardjapamekas said. "Some companies, going concerns are good.

We can offer them to the state-owned enterprises ministry to buy them, or make it an open tender to the private sector. We will do it in a transparent way, so that there are no legal problems or commercial disputes."

 Economy & investment

Economy grows 6.28% in first quarter

Jakarta Post - May 16, 2008

Aditya Suharmoko, Jakarta – The economy grew by 6.28 percent in the first quarter of 2008 from the same period last year on robust growth in investment, exports and spending, the Central Statistics Agency (BPS) said Thursday.

Slamet Sutomo, BPS deputy chairman, said year-on-year private spending increased by 5.5 percent, government spending increased by 3.6 percent, investment increased by 13.3 percent and exports by 15 percent.

By value, private spending increased from Rp 682 trillion to Rp 702.7 trillion, investment from Rp 275.3 trillion to Rp 285.6 trillion and exports from Rp 317.3 trillion to Rp 344.5 trillion.

About 58.1 percent of the GDP came from Java, with 23.8 percent from Sumatra, 9.8 percent from Kalimantan and 3.9 percent from Sulawesi.

The government is eyeing an economic growth target of 6.4 percent this year, although Finance Minister Sri Mulyani Indrawati said it may only reach 6 percent because of the impact of planned fuel price rises.

This rise is expected to push up inflation and the central bank's benchmark interest rate, discouraging bank lending demand and slowing economic growth.

By sector, the transportation and communications sector increased by 19.7 percent from a year earlier. The agricultural sector increased by 18 percent, helped in part by a successful harvest season. "Rice production increased by 1.22 million tons this quarter," Slamet said.

Significant growth also occurred in the electricity, gas and water sector, the financial, real estate and company services sector, the construction sector and the trade, hotel and restaurant sector.

"It shows Indonesia has yet to be affected by the US recession," said Anggito Abimanyu, the Finance Ministry's head of fiscal policy, in response to the BPS report.

According to the ministry, expenditure accounts for about 60 percent of the economy, with investment and exports accounting for another 20 percent each.

However, the business confidence index dropped to 104.41 from 112.25 in the last quarter of 2007. The BPS predicted the index would rise to 108.61 in the second quarter of 2008 with rising overseas demand. The index reflects the business sector's confidence in the country's economy.

State firms' profits few and far between

Jakarta Post - May 12, 2008

Jakarta – Only 25 of 139 state enterprises managed to book profits last year, although overall profits had risen significantly from a year earlier, according to an NGO report released Sunday.

BUMN Watch said the profits from state firms amounted to Rp 71.59 trillion (US$7.9 billion) last year, a 32 percent rise from the Rp 54.4 trillion booked in 2006. However, "from the 25 profitable firms, only 12 booked significant net profits," BUMN Watch chairman Naldy Nazar Haroen Naldy said as reported by Antara.

The profits mostly came from firms operating in the mining, energy, telecommunications and banking sectors, including PT Pertamina, PT Telkom, Bank Mandiri, Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI).

PT PGN, PT Aneka Tambang, PT Semen Gresik, PT PPA (Asset Management Company), PT Bank BTN, PT Pelindo II and PT Jasa Rahardja also recorded significant profits.

Among the most profitable enterprises, Pertamina and Telkom stood out, generating a net profit of Rp 24.5 trillion and 9.92 trillion respectively.

A total of 28 state firms suffered losses of Rp 2.94 trillion last year, with PT PLN contributing to 60 percent of that total with Rp 1.76 trillion.

The government has acknowledged that many state firms were still suffering losses, but aims to cut the unprofitable firms to 11 this year.

"In 2008, the government plans to reduce the number of unprofitable state companies to 11, and total losses to only Rp 0.23 trillion," the secretary to the state minister for state enterprises, Said Didu, was quoted as saying last month.

Naldy apparently shares the government's optimism, predicting that total losses from state firms this year will only amount to Rp 250 billion.

Didu and Naldy attributed the deficit in state firms mostly to either mismanagement or inefficiency, or to the companies' commitment to the so-called public service obligation (PSO).

PSO is a requirement set by the government for state firms to serve the interest of the public ahead of their corporate aim to make profit.

As well as PLN, major firms who are still in the red include PT Merpati Nusantara Airlines, railway company PT KAI and sea transportation company PT Pelayaran Nasional Indonesia.

The government's plans to sell stakes in some state companies this year under a privatization.

 Opinion & analysis

Increasing national food production? Easier said than done

Jakarta Post - May 14, 2008

Achmad Syafriel, Analyst – Many problems need to be solved before Indonesia can increase food production and mitigate food prices.

Many believe the era of cheap food prices has come to an end. Over the last two years, soft commodity prices have surged, continually breaking records. CPO reached its historical high of US$1,395 per metric ton in Rotterdam, while corn and soybean reached their respective highs of $6.31 per bushel and $15.7 per bushel in Chicago.

The main cause for these surging prices was excessive use of soft commodities to produce biofuel. With oil prices remaining high and volatile, many countries have been encouraged to seek alternative fuels, and biofuel fits the bill.

However, demand from the food industry for soft commodities now used as biofuel, including corn, rapeseed and CPO, had already been high even before biofuel demand came into the equation. Therefore, demand from the food industry has had to compete with that from the biofuel industry.

As the World Bank reported, the United States used 20 percent of its corn production to produce ethanol last year, while Brazil used 50 percent of its sugarcane production to produce the fuel.

The EU, as a pioneer, used more than half of its rapeseed oil production last year to make ethanol, accounting for 68 percent of its total biodiesel production.

Another impact of these surging prices is a tendency for farmers to plant more commodities designated for biofuel rather than for food. Consequently, the production of staple foods, including rice, for the food sector has declined, leading to higher food prices in many countries, including Indonesia.

The government has tried to mitigate the surging prices, however, as in other countries, success has been fleeting. Price surges in the two most important staple foods in Indonesia, cooking oil and rice, have created a food crisis.

However, today's food crisis differs from those in the past. Foods are still available, but prices are high. People's purchasing powers are eroded as inflation climbs.

Many countries decided to ban exports or place export quotas on food production in order to mitigate prices and secure domestic supply. However, the actions worsened the situation as they starved the international market, pushing global prices higher.

In our view, the only way to ease food price fluctuations and secure domestic supply is by increasing food production through intensive planting and encouraging existing infrastructure to increase productivity.

Unfortunately, it is easier said than done. Indonesia is known as an agricultural country. Nevertheless, increasing production is still a big challenge.

Although Indonesia is the world's largest CPO producer and was once known as a country self-sufficient in rice production, the nation is experiencing rice and oil palm seeds shortages.

In response, the government has launched the use of hybrid seeds, which are slated to have three times the productivity of conventional seeds.

The irony is that only one local company is able to produce hybrid seeds, and its production numbers are still lower than national demand, forcing the government to turn to imports to make up for the seed deficit. The same applies to oil palm seeds. Since the price of CPO surged, new planting activities have intensified.

According to the Ministry of Agriculture, seeds demand in 2008 is expected to reach 220 million tons. However, Indonesia can only produce 160 million tons through its seven licensed seeds producers, requiring approximately 60 million tons in imports.

Demand for fertilizer also provides another problem for Indonesia. The government is providing subsidy for certain fertilizers, including urea, but farmers are having difficulties obtaining it.

Even if it is available, the prices are high. In addition, Indonesia also lacks access to more sophisticated fertilizers, which are needed to increase productivity.

Land availability for agricultural or plantation activities is also a problem. Even though Indonesia has a land area of more than 192 million hectares, approximately two thirds of which is forest, finding new land for plantations is made problematic by many incidents of land being owned by multiple bodies.

In fact, overlapping rights disputes have even been known to take place between plantation and mining companies.

When this happens, as regulated by Indonesian mining law, the holder of mining rights has priority, even if the plantation company already has cultivation rights and has been operating in the area for a long time.

Considering the many problems along the road, Indonesia's aim to increase food production will be very difficult to achieve without strong coordination and commitment from every party involved in the development of the agricultural sector.

[The writer is a research analyst at Bahana Securities.]

What a shameful mess

Jakarta Post Editorial - May 12, 2008

What a mess greeted air travelers to Jakarta last Thursday when for the third time in the past six months the toll road to Soekarno-Hatta International Airport became impassable because of tidal flooding.

What a shameful scene for our visitors, including Microsoft founder and chairman Bill Gates who was on a two-day visit, with airline passengers – businesspeople and tourists – forced to hitch a lift on heavy trucks to pass the flooded section of the Sedyatmo toll road.

This only inflicted more damage to our stepped up promotional campaign for Visit Indonesia Year 2008.

Last November, access to the airport was interrupted due to flooding, and early in February the airport was closed for almost 12 hours due to flooding caused by heavy rain and high tides. The inundation brought much of Jakarta to a standstill for nearly three days and forced thousands to abandon their cars and homes.

Many foreign visitors who were stuck in the gridlock for hours probably made a mental note never again to visit Indonesia during the rainy season, and alerted friends and relatives to do the same.

"Memo to self: do not visit Jakarta in the rainy season again," wrote Hong Kong-based economist Jim Walker in a note to clients after he was stuck in traffic for nine hours in early February trying to get to Jakarta's airport, a trip that usually takes no more than one hour.

The Singapore Straits Times quoted Walker, the head of independent research firm CLSA, as observing: "Today's traffic problems are an apt metaphor for Indonesia: Stuck in first gear with long periods of sitting around waiting for the jam to clear. The country is stuck with lousy leadership, weak institutions and below-potential growth."

We usually suffer from heavy flooding during the rainy season, between December and February. But last week's tidal flood reminded us of how uncertain our climatic conditions have become and how severely damaged our environment is due to decades of reckless exploitation of our natural resources.

Ironically, the flooding on the toll road took place as the Toll Road Regulatory Body was approving a proposal by state-owned tollway operator PT Jasa Marga to raise the tolls on the Sedyatmo toll road by 12.50 percent.

More confusing was that while newspaper front pages on Friday screamed of the havoc on the airport toll road, the business pages of some newspapers headlined the 1,300 percent increase in the net profit of Jasa Marga for the first quarter.

Something appears grossly amiss here. The ridiculously large profit booked by Jasa Marga seems to reflect the government's attitude in treating such basic infrastructure as freeways, airports and seaports as profit centers.

But common economic sense dictates that the government should instead treat toll roads primarily as basic infrastructure to support economic activities. Certainly, Jasa Marga should not be allowed to lose money because that is not sustainable. But neither should the company be tasked with making as big a profit as possible. Rather, it should be managed simply as an efficient, self-financing entity with reasonable income to meet its operating costs and investment needs.

The government pricing policy for toll roads should balance the interest of operators and consumers, addressing the issues of efficiency in service delivery and the quality of and availability of freeways, providing the toll road operator with an opportunity to earn a reasonable return on its investment.

Efficient roads are a prerequisite for developing efficient supply chains, which are so important for attracting foreign investors. Foreign investors will be willing to establish production networks in Indonesia only if the country can become a reliable part of the global supply chain.

The key to being linked with the global supply chain is adequate and efficient basic infrastructure, including road networks.

The biggest benefit derived from freeways is not the direct profits from their core operations but from a smooth, efficient flow of goods, which will contribute to strengthening the overall competitiveness of the economy.

National education revisited

Jakarta Post Editorial - May 9, 2008

Our founding fathers hit it on the nail when they declared that one of the goals for establishing the state of the republic of Indonesia was to "enlighten the life of the nation" (mencerdaskan kehidupan bangsa). This beautiful phrase, engraved in the Preamble to the 1945 Constitution, sets out the vision of an independent nation free from the shackles of poverty, ignorance, injustices and oppression.

The framers of the constitution decided early on in the history of the new republic that only through enlightenment, which can be achieved through mass education, could the nation advance and attain the ideals of a just and prosperous society.

This is not dissimilar to Plato's view that education was the key to creating and sustaining his republic, or Aristotle's assertion that "All who have meditated on the art of governing mankind have been convinced that the fate of empires depends on the education of youth."

Plato talks of his republic, Aristotle of his empires, and we of our nation. But the idea is the same: Republics, empires and nations rise and fall depending on how enlightened their people are.

Fast forward 60-plus years since Indonesia declared its independence and we find a nation that has miserably failed in fulfilling that grand vision of nationhood. "Enlightening the life of the nation" remains a mere rhetoric, ornamental words in the constitution.

Today, Indonesia is still mired by mass poverty. In absolute terms, the number of people living below the poverty line is probably much larger today. How a country that is so blessed with an abundance of natural resources could remain so poor is simply mindboggling. A better indicator of how far we are falling behind and how we have squandered precious decades can be grasped by just taking a look around us: Many countries in Asia that became independent much later have moved on and have become far more stable and prosperous than we are.

Thanks to decades of mismanagement and misrule, characterized by rampant corruption and violence, this nation has hardly advanced in the global human development index.

Mass poverty makes the people and the nation dependent on outside assistance, with all its consequences, including the loss of sovereignty. We have hardly moved on from the days when we were "a nation of coolies", except that now we are in a modern context. True freedom and independence, the things that our founding fathers sacrificed their lives for, have not been achieved. By and large, the 240 million lives of this nation remain unenlightened.

Anyone concerned enough with the fate of the nation and of where it is heading would quickly point to the failing of the education sector for Indonesia's current poor state of affairs. Almost all of our failings, in political, economic and social development can be traced to the poor quality of our leaders in just about every field, and the poor quality of our human resources, especially now in facing global competition.

The education sector is largely responsible for Indonesia's current condition.

It was with this thought that The Jakarta Post decided to dedicate 2008, the year we mark our 25th anniversary, to the education sector. In our search for the one factor that is most important for this nation to address, we agreed that it should be education.

We hope to contribute to the endeavor in our limited way as an English language newspaper based in Indonesia. Today, for example, the Post is organizing a seminar on education, entitled "Enlightening the Life of the Nation" by bringing in distinguished speakers from our neighboring countries to share their experiences with us, and also business people who will show the ways in which they too should contribute to the education world.

We need to move on beyond grumbling about the state of our education. In spite of the grim picture, we find many bright spots in our education world that have shone through because of the initiative, the creativity, the drive and the passion of individuals and institutions. Some of these will be speaking at the seminar and will share the best practices that made a difference to the education world.

Our contribution does not stop with the seminar. All through the year, we will be revisiting the theme of education, hoping to raise the awareness of the people, the government, the business world of the need for a common endeavor to address this issue.

At the very least, we should push education to the forefront of the national agenda for the coming years, even through election years, so that we as a nation get it right and fulfill the vision of our founding fathers of an enlightened life of the nation.


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