News & issues

Media firms failing to protect journalists

Jakarta Post - December 6, 2008

Jakarta – Media companies are failing to provide their journalists with adequate assistance when they encounter violence in their work.

"Most media companies do not go "all-out" to defend or assist their journalists who have suffered from violence during their news coverage," Alliance of Independent Journalists (AJI) secretary general Jajang Jamaludin said in Jakarta on Friday.

In a discussion titled "Media Strategies to Face Violent Cases Against Journalists", Jajang said the protection of journalists, through the assistance of legal groups and journalist associations, should be a top priority for media companies.

"Journalism is a respected profession. The public has the right to information, and this right will be threatened if the profession continues to be under pressure," he said.

The AJI reported that since August 2007, one third of cases involving the suppression of free press in Indonesia were related to physical violence toward journalists.

This statistic has contributed to Indonesia's plummeting position in the Reporter Sans Frontier's World Freedom of Press Index. Indonesia slid from 100th last year to 111th in 2008.

Anggara, an advocate for the Association of Indonesian Legal and Human Rights Aid, said it was hard for journalists who have experience violence in their careers to deal with the problem alone, particularly if their employer offered no assistance.

"Very often media companies do not protect reporters. In some cases, the reporters have even been told to apologize to those who attacked them," said Press Council member Abdullah Amaludin. "We have to force media companies' stakeholders to provide legal assistance for their journalists," he said.

Members at the discussion agreed that resolving these issues of mistreatment would have to involve media companies, whose primary role should include assistance from lawyers and insurance teams. (pmf)

Print media sees less readers, more ad revenues

Jakarta Post - December 5, 2008

Jakarta – Print media has enjoyed ever-increasing revenue from advertising, but now faces a looming danger that could put the industry's sustainability into serious doubt – a decline in readership, a survey revealed Thursday.

Newspapers, magazines and tabloids all suffered a year-on-year drop in reader numbers in the third quarter of 2008, ACNielsen Indonesia said in its latest media survey.

"As shown by the Nielsen Media Index, in terms of readership decline, magazines are experiencing the worst of it," Asia-Pacific regional director Mark Neely said.

The survey, carried out in nine major cities across the nation and projected to represent a population of 42 million, showed magazines suffered from a 24 percent decline in readership from the same period a year earlier.

Tabloids and newspapers also saw a drop, albeit in smaller amounts, with their readership declining by 12 percent and 4 percent, respectively.

Thursday's revelation confirms a declining trend in print media readership, which ACNielsen says has been underway since 2004.

The survey cited three reasons for the decline: Readers were either too busy to read (72 percent), switched more often to television (14 percent), or were turned off by rising prices (11 percent).

With less free time and a dislike of the ever-increasing price of print media, the survey went on, readers were turning more and more to the Internet. This phenomenon could explain the sixfold increase in the number of Internet users since 2005, the survey suggested.

But despite declining readership, print media still has plenty to cheer about, most notably the ever-growing revenue from advertisements.

Mass media, including television, enjoyed a hefty 22 percent increase in advertising revenue during the first nine months of the year, the survey showed, totaling Rp 31 trillion (US$2.6 billion).

All forms of media enjoyed growth, with newspapers recording the biggest boost, 34 percent, to bring in Rp 10.1 trillion during the period. Ad revenue for television, while only growing by 16 percent, still raked in a considerable Rp 19.7 trillion.

Magazine and tabloid ad revenue rose by 25 percent and 30 percent to take in Rp 864 billion and Rp 401 billion, respectively.

The major advertisers were telecommunication firms, which spent more than Rp 3 trillion, a 75 percent rise from the same period last year. Government and political organizations came in second, spending Rp 1.4 trillion, 74 percent higher than in 2007.

PT Excelcomindo Pratama, the nation's third largest cellular phone operator, ranked as the company with the highest ad spending, shelling out Rp 302 billion – three times more than it spent last year. (dis)

SBY warns against mass rallies, terrorism

Jakarta Post - December 2, 2008

Desy Nurhayati, Jakarta – President Susilo Bambang Yudhoyono urged the nation Monday to avoid mass public demonstrations that could destabilize the nation's political balance as was seen in Thailand last week.

Yudhoyono also called on the nation to remain alert to possible terror threats following the recent attacks in Mumbai, India, which killed at least 130 people and have been blamed on Islamic militants.

The President's warning against mass rallies came amid rumors that some 1,000 victims of the mudflow disaster in Sidoarjo, East Java, are planing to stage a major protest outside of the State Palace in Jakarta today.

Hundreds of the victims have arrived in Jakarta and are staying at the Istiqlal mosque.

They will demand a meeting with Yudhoyono to urge to him to force PT Lapindo Brantas, a gas drilling company widely blamed for the disaster, to pay them the remaining 80 percent of compensation it promised them.

Yudhoyono said next year's general elections would heat up the country's political situation and could lead to social unrest.

"I ask all elements of the nation to maintain the stability of our political and social situation. I expect everyone to control themselves and exercise their political rights appropriately," he told a news briefing at Merdeka Palace, Jakarta.

He said it was more suitable for the public to convey their political concerns and exercise their political right by voting in next year's elections rather than through chaotic action.

"Let us avoid unnecessary mass mobilizations because we have elections as an appropriate democratic practice. Mass mobilizations with various motives will only cause public disorder that would in turn bring difficulties to the people."

The President said the stable situation in the country should be maintained to support the government in its efforts to tackle the impacts of the global financial crisis.

"We don't want people to suffer because of an unsteady political situation. Support from the people is important (to ensure stability). This is the country that we should protect together," said Yudhoyono, who is seeking a second five-year term in office next year.

He said the nation should be on its guard against acts of terror. "We should stay alert and ensure our readiness so that we can quickly respond if there are certain parties intending to threaten the country's security. Of course, our response must be in accordance with the prevailing laws."

Yudhoyono ordered the State Intelligence Agency, the National Police and the Indonesian Military to take necessary measures to safeguard the country against terrorism.

"I have instructed the police, military and intelligence to keep training to heighten their readiness to prevent unrest and terrorist attacks."

Yudhoyono said the public should learn from the lessons of the 1997-1998 monetary crisis, which threw the country into political and social disorder that lead to the ousting of then president Soeharto.

AGO starts probing Weiner's CIA book

Jakarta Post - December 1, 2008

Dian Kuswandini, Jakarta – The controversy over Tim Weiner's book The Legacy of Ashes: The History of CIA, which claims Indonesia's former vice president Adam Malik was a US spy, has seen the Attorney General's Office (AGO) launch an investigation into an alleged conspiracy to destabilize the country.

Assistant attorney general for intelligent affairs Wisnu Subroto said his team had started an investigation into the Pulitzer- winning book, focusing among other aspects on the allegation that Adam received US$10,000 from the CIA to overthrow former president Sukarno.

"The claim is still questionable, which is why we have been looking into whether the document really belongs to the CIA," he said Saturday.

Weiner, a New York Times journalist, quoted former CIA agent Clyde McAvoy in his book as saying "Adam Malik was a CIA agent in 1964."

The book, recently published in Indonesian, said Adam used the money to spearhead a movement aimed at cleansing communists following their abortive coup attempt on Sept. 30, 1965.

Wisnu and the AGO allege the book is part of a foreign conspiracy to disturb the country's stability.

"Spreading false rumors is just part of a foreign strategy to weaken our country. As a developing country, Indonesia has the opportunity to take advantage from the mess of western countries' economic situations.

"They want Indonesia to remain trapped in the problems of the past, and want to hamper our people as we move toward the future," Wisnu said.

The AGO has called for the public not to exaggerate the issue. "If (the accusation against Malik) is true, what is the use of overstressing it? He has passed away and the consequences of what he might have done have passed. We should move on."

Adam Malik was Indonesia's top diplomat and served as vice president from 1978 to 1983.

The AGO began its investigation into the book following a request from the House of Representatives to ban its release in Indonesia, claiming it could cause disturbances in the country.

Actions, demos, protests...

Activists call for environmental justice, reject REED

Detik.com - December 6, 2008

Andi Saputra, Jakarta – Hundreds of environmental activists from several different non-government organisations held an action at the Hotel Indonesia roundabout in Central Jakarta on December 6 in which they painted a miniature globe on a 20 metre length of white cloth symbolising a bomb that is about to explode.

In addition to the globe, they also drew a fire dragon symbolising the desire to burn down Indonesia's forests under which was written "No REDD (reduction emissions from deforestation and degradation)" and "Climate Justice 4 Indonesia".

"We want world leaders to take immediate concrete action in relation to climate change", said Ade Fadli, an activist from the Indonesian Forum for the Environment (Walhi). "We want self- sufficiency in energy, food an water", said another activist Andreas Iswinarto

A similar action was also held by around 300 Greenpeace activists who brought a banner with the message "Action for Climate" and balloons with the names of hazardous chemicals such as CO2 written on them. They also handed out leaflets with warnings about the dangers of climate change. (Detik.com, 6/12/2008)

Mud flow victims blockade Raya Porong highway

Sidoarjo – Hundreds of victims of the Lapindo Brantas mud disaster in East Java blockaded the Raya Porong highway on December 4 demanding the payment of outstanding compensation money.

The protest, which was carried out by residents from 10 villages whose houses and land have been inundated by the mud flow, was held to express their disappointment with the government that has only agreed to pay compensation in 30 million rupiah to each resident in monthly installments.

As a result of the blockade, a two kilometre traffic jam occurred on the main highway connecting the East Java cities of Sidoarjo and Malang. Hundreds of police could be seen watched over the protest although they made no attempt to remove the blockage. (Detik.com, 4/12/2008)

Buaran residents call for eviction to be postponed

Jakarta – On December 4 residents living in the Buaran river flood plane demonstrated at the Jakarta city hall against a planned eviction.

"We are demanding a six-month postponement of the eviction so that school children can move up a grade and finish school", said a representative of the residents, Dede Iskandar. The government is planning to carry out the eviction on Saturday November 6.

Several weeks ago, Buaran residents also held a protest action at the Jakarta Regional House of Representatives (DPRD) in which they were received by legislative members who promised to postpone the eviction until there was a follow up decision in writing.

It turned out, said Iskandar, that the contents of the letter said that Buaran residents had to address their complaints to the Jakarta provincial government. "We feel like we are being ping- ponged around", said Iskandar. (Detik.com, 4/12/2008)

Workers protest joint ministerial decree, call for decent wages

Jakarta – The atmosphere in front of the State Palace became increasingly boisterous as around 600 member of the Workers Challenge Alliance (ABM) held a protest action on Jl. Medan Merdeka Utara in Central Jakarta on December 3.

The protesters were demanding that the government revoke a joint ministerial decree (SKB-4) limiting wage rises to economic growth which they said would bring further suffering to workers. The workers held the demonstration behind another protest by victims of the Lapindo Brantas mud disaster who had arrived at the Palace earlier.

During the demonstration they took turns in giving speeches from an open pickup truck. "We are calling on the government to provide a decent national wage", said ABM coordinator Anwar Sastro Maruf during a break in the action.

In addition to giving speeches, the workers also erected red ABM flags and unfurled a variety of banners containing demands that the decree be revoked. (Detik.com, 3/12/2008) Lapindo mud disaster victims scuffle with police in Jakarta

Jakarta – Disappointed by being unable to meet with President Susilo Bambang Yudhoyono, on December 3 victims of the Lapindo mud disaster tried to close of Jl. Medan Merdeka Utara in Central Jakarta. A scuffle with police was unavoidable.

Initially the protesters demonstrated by occupying one of the lanes on Jl. Medan Merdeka Utara. However after there was no information about whether the president would meet with them, they decided to blockade the entire road.

During the ensuing scuffle with police, one of the protesters collapsed and had to be carried to the pavement. Fortunately, the situation was diffused after one of the speakers called on protesters return to main crowd. (Detik.com, 3/12/2008)

Two students arrested after burning pictures of president

Yogyakarta – Two students in the Central Java city of Yogyakarta were arrested on December 3 after they tried to set fire to posters of President Yudhoyono and Vice President Jusuf Kalla (SBY-JK).

The arrests occurred during a protest action in front of the Gedung Agung Yogyakarta Presidential Palace by students from the United Student Coalition (KMB). During the action, the students took turns in giving lively speeches while other held up posters and photocopies of the president and vice president.

In the middle of one of the speeches, a number of students suddenly started trampling on the posters. The police moved in and tried to seize the pictures but failed. A short time later, two students – Andi Permana and Aslihul Fahmialya – tried to set fire posters of SBY-JK and again the police took action. This time they were successful and after the posters were confiscated the students were placed in a truck.

The arrest enraged the other students who threatened to go to the Yogyakarta regional police headquarters. "We will not return home until our comrades are released", threatened one of the students. (Detik.com, 3/12/2008)

Activists commemorate World AIDS day in Solo

Solo – Around 150 activists in the Central Java city of Solo held an action to commemorate World AIDS Day on December 1 in which they called for and end to the negative stigma attached to AIDS sufferers.

The protesters, who came from a number of different elements including the Justice and Prosperity Party (PKS), transsexuals, students and non-government organisations concerned with issues related to women and children, started the action at the Gladag roundabout then moved of to the Surakarta city hall some 200 metres away.

During the protest, they called for additional funding to combat HIV/AIDS in Indonesia, for the government and society as a whole to change its views about HIV/AIDS sufferers and for people to give serious attention to the disease but without stigmatising sufferers.

In addition to giving speeches, the protesters also handed leaflets out to pedestrians and demanded that the government provide more intensive information about the spread of HIV/AIDS. (Detik.com, 1/12/2008)

Workers say joint ministerial decree only benefits capitalists

Medan – Around 800 workers from a number of different trade unions in Medan demonstrated at the North Sumatra Regional House of Representatives (DPRD) on December 1 demanding that a joint ministerial decree (SKB-4) be revoked. The workers said that the decree will only be use to protect the interests of the capitalist class.

In a speech, action coordinator Saragih explained that the joint decree, which restricts wage increases to 6 percent, will not just harm workers, but all elements of society, including farmers, fisherpeople and the urban poor.

"Not matter what their reasons are, the SKB-4 must he revoked immediately. The agreement will only bring suffering to the ordinary people", said Saragih. In addition to opposing the joint decree, the workers also urged the government to reduce the price of fuel by 40 percent.

After holding the action at the DPRD, the workers plan to demonstrate at the North Sumatra governor's office and the offices of the state-owned oil company Pertamina in Medan. (Detik.com, 1/12/2008)

[Abridged translation by James Balowski from articles posted on Detik.com December 1-6.]

Students reject discrimination toward the disabled

Tempo Interactive - December 4, 2008

Anang Zakaria, Surabaya – Scores of students of the Faculty of Education for Children With Special Needs from the Surabaya State University yesterday demonstrated in front of the Grahadi Building in Surabaya. They called on the government and the public not to discriminate against the disabled.

Student coordinator Aulia Singazanki said one of the forms of discrimination is the fact that the disabled do not receive adequate education. "Many disabled in Indonesia have difficulties in getting an education," he said.

Yet, Chapter 31 article 1 of the 1945 Constitution asserts that the state must guarantee all citizens access to education. Aulia added that the protest was also to celebrate the World Day for the Disabled, which is being commemorated in eight cities in Indonesia.

Police detain activists burning pictures of president

Tempo Interactive - December 4, 2008

Muh Syaifullah, Yogyakarta – The police have detained two activists from the Unified People Coalition (KRB) for allegedly burning flyers with pictures of President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla at the State Palace yesterday.

The two, Andi Permana and Asibun Aliya, were accused of waving anti-government banners. "We are still questioning them," said Yogyakarta Police Commissioner Pitoyo Agung Yuwono, adding that the police also confiscated flyers and banners condemning the government.

KRB coordinator Arif Brahman explained that the demonstration carried out by 50 students, NGOs, and workers are demanding that the President withdraw the ratified four-ministerial decree. "We want the police to release our friends," Arif said.

Aceh

Deforestation 'main cause' of recurring floods in Aceh

Jakarta Post - December 5, 2008

Hotli Simanjuntak, Banda Aceh – Despite Rp 50 billion (US$4.17 million) allocated for disaster mitigation in Aceh this year, nearly the entire province remains at threat from natural and man-made disasters, especially flooding, a conservationist says.

"The funds are still for emergency responses and relief and not for concrete measures to overcome and mitigate disasters to minimize impacts," said Muhammad Nur, database manager at the Aceh chapter of the Indonesian Forum for the Environment (Walhi).

He said the province's disaster management was only geared toward responding to disasters rather than preventing them.

"It's still restricted to providing relief aid, such as instant noodles, rice, medicine and even condoms, and not based on how to overcome the issue ahead of a disaster," Nur told The Jakarta Post recently.

Aceh Walhi has pinned the blame for the protracted flooding in the province on climate change and deforestation, which sees Aceh lose around 20,000 hectares of forest each year.

Data at the Aceh provincial administration shows forest area in the province has shrunk each year since 1980, when there were almost 1.5 million hectares of forest.

The number fell to 1.22 million hectares in 1990, before hitting 989,585 hectares in 2000.

The latest count shows the area stood at 877,401 hectares in 2006, 188,190 hectares of which was primary forest.

"This is because the forest lies in the Leuser ecosystem area which gets protection, especially from European countries," Nur said.

The total loss since 1980 is 2.2 million hectares, an area roughly the size of Singapore, and equivalent to half of the total area of Aceh.

Deforestation in the region is attributed to the exploitation of natural resources, helped by lax government supervision, including mining, conversion to plantations and illegal logging.

Deforestation has threatened 46.40 percent, or 714,742 hectares of the total 1,524,642 hectares of watershed area in Aceh.

According to weather forecasts, floods may hit 16 Aceh regencies and mayoralties during December. They are Aceh Besar, Pidie, Pidie Jaya, Aceh Jaya, Lhokseumawe, North Aceh, Bireuen, Bener Meriah, Central Aceh, Langsa, East Aceh, Aceh Tamiang, Northwest Aceh, South Aceh, Aceh Singkil and Southeast Aceh.

If they came to pass, the floods would affect 42 districts encompassing 1,728 villages and thousands of people living in the 16 regencies and mayoralties.

"Aceh will lose its natural resources without immediate preventive and proper measures," Nur said.

The government, he continued, should map out disaster-prone areas as more people were at threat from the flooding than were from the tsunami that devastated the province in December 2004.

"It's about time the Aceh provincial administration responded to disaster mitigation according to Law No. 24/2007 on Disaster Mitigation," he added.

Sharia deters tourists from Aceh

Jakarta Post - December 2, 2008

Hotli Simanjuntak, Banda Aceh – Businesspeople in Nangroe Aceh Darussalam have blamed the improper implementation of sharia (Islamic law) for the lack of development in the province's tourism industry.

"The image of Aceh as a sharia-ruled region has caused reluctance among tourists to visit," Totok Yulianto, owner of a travel agency here, said recently.

As a destination, Totok went on, Aceh actually had all the potential to develop into a world-class tourist spot.

"The natural beauty here – the sea, beaches, mountains, forests – and the people's hospitality are the main capital for the tourism industry," Totok said.

And yet, he added, Aceh remained the country's least developed province in terms of tourism, thanks to the improper implementation of sharia in the sector.

As an example, Totok pointed out the requirement for female tourists to wear jilbab (headscarves) while bathing at beaches in Aceh.

He said such a requirement needed a clear bylaw. He also suggested the provincial administration make a clear distinction between beaches for women with jilbab and for those without.

"That's just an example of an insubstantial problem. There are many other bigger problems that the Aceh people and administration have to resolve," he said.

Unless something is done to bring regulations and bylaws on tourism in line with sharia, he warned, Aceh's tourism industry would never develop, much less to catch up with those of provinces such as Bali.

Dahlan Sulaiman, chairman of the World Bank-sponsored Aceh Tourism, Industry and Trade Working Group, expressed similar sentiments, saying other sectors such as trade and industry were facing similar problems over regulations, policy and security.

"To date, we see that the government, especially the immigration office, has yet to side with the interests of businesspeople," he told The Jakarta Post recently. He pointed out the lack of a visa-on-arrival facility at Banda Aceh's Sultan Iskandar Muda Airport as clear proof of this.

Dahlan suggested all these issues could be resolved if the provincial administration and the business community worked together on the matter.

Otherwise, he warned, Aceh's economy would continue to deteriorate, especially with the end of the post-tsunami rehabilitation and reconstruction process and the dissolution of the Aceh-Nias Rehabilitation and Reconstruction Body fast approaching.

If the Aceh administration wanted to create a tourism concept based on sharia, Dahlan went on, it must look to countries employing a similar concept, such as Saudi Arabia and Malaysia, as an example.

He added Aceh was rich in sites that reflected Islam, which could also be used to attract tourists to the region. Unfortunately, most of these sites are neither well-preserved nor well- maintained, with some even abandoned, he lamented.

"We have a lot to do to catch up and compete with other provinces, especially in this post-conflict and post-tsunami stage," Dahlan said.

Help sought from Australia

Reuters - December 1, 2008

Canberra – Indonesian rights activists asked Australia on Monday to help bring reconciliation following a three-decade civil war in Aceh province, saying conflict will again threaten without more progress.

Australia, from which Jakarta seeks a US$2 billion (S$3.04 billion) loan to help battle the global financial crisis, should pressure Indonesia to move faster with a promised truth and reconciliation process, which the activists said had stalled.

"We have calm, but if the government does not do something serious, with real meaning, people will have the feeling of wanting revenge," said Mr Afridal Darmi, a human rights lawyer with the Indonesian Legal Aid Foundation, before meeting Australian lawmakers and foreign ministry officials in Canberra. "The fighting will erupt again," Mr Darmi told Reuters.

The 2004 earthquake and tsunami created a humanitarian and economic catastrophe in resource-rich Aceh, on Indonesia's western tip, leaving an estimated 170,000 people dead or missing. But the disaster provided momentum to end a long-running conflict between government soldiers and separatist rebels, known as GAM, in which around 15,000 people died before a post-tsunami peace accord struck in Helsinki in August 2005.

Human rights activists and victims are asking for a truth and reconciliation commission – a centrepiece of the Helsinki peace pact – which was to be formed by August to help air human rights violations committed during the separatist conflict.

But Indonesia's government says it is still focused on humanitarian help for the oil and gas-rich province, which has a long history of conflict and a legal system partly based on Islamic sharia law.

Australia is a major donor to Indonesia and boosted aid by A$1 billion (S$994 million) after the tsunami, including humanitarian help and support for government and education.

Mr Darmi and Mr Eko Waluyo, from rights group Indonesian Solidarity, told Australian politicians that Indonesian national elections next year would be a first for former Aceh fighters and without rights and democracy progress, could be a flashpoint.

"They tend to believe in arms, the way of weapons, to solve problems. We need to encourage them to use a more civilised approach," Mr Darmi said.

Shame, denial surround HIV/AIDS in Aceh

Jakarta Post - December 1, 2008

Hotli Simanjuntak, Banda Aceh – Maimun panicked when a doctor told him he was infected with HIV, detected when he went to give blood for one of his relatives.

At the time, the fisherman from Tapaktuan district in South Aceh, thought of HIV/AIDS as an embarrassing disease, often viewed as an indelible shame in Aceh, where Islamic sharia law is applied.

He felt he could not bear it if his immediate family, and even more distant relatives, had to feel ashamed or suffered any kind of discrimination.

"I felt so ashamed then and started to keep away from my community once I learned this virus was inside me and damaging my body," Maimun told The Jakarta Post on the sidelines of a World AIDS Day event in Banda Aceh on Sunday.

Maimun became a social recluse, trying to hide his illness to avoid the social stigma. He even sought to hide his affliction from his family.

As a result, Maimun received no medical treatment for his illness for 10 years after the doctor announced he was HIV positive.

Maimun believes he picked up the virus in 1989, when he used to sail some distance to go fishing. He often dropped into Thailand and did drugs without realizing the full risk.

As years passed, his family came to learn of his illness and decided to send him to a doctor for treatment instead of leaving him alone. He thanked his family for their acceptance and for encouraging him to rebuild his life.

"And I thank God that currently hospitals in Banda Aceh have special facilities to treat patients with HIV/AIDS," Maimun said, adding that people in his area now knew there was no need to ostracize people living with HIV/AIDS because they could get medical treatment and stay healthy.

This confidence became a turning point in his life. He went on to join Medan Aceh Partnerships (MAP), an organization concerned with building public awareness about HIV/AIDS, so people will not discriminate against those living with HIV/AIDS but rather support them in their efforts to be healthy.

Baby Rivona, MAP program manager, has experienced this herself. She said she and her friends had to reassure people in Aceh that people living with HIV/AIDS needed help from their family and society to regain their health and their life.

"Many people in Aceh say there is no need to establish NGOs like ours because nobody in Aceh has this disease.

"Many people living with HIV/AIDS from Aceh have to be transferred to other regions to find a hospital that provides facilities to treat them," Baby said.

"Some of them refused to be treated in Aceh because they were so ashamed of having the virus."

Five regencies in Aceh currently provide facilities to treat people living with HIV/AIDS. According to data from the Aceh AIDS Commission, as of October 2008, there were 25 people in 13 regencies and cities in Aceh with HIV/AIDS this year. Nine of them have died.

The number of people with HIV/AIDS has risen 350 percent in 2008 compared with 2006 figures.

Lack of polls watchdog in Aceh could spark tension next year

Jakarta Post - December 1, 2008

Hotli Simanjuntak, Banda Aceh – The absence of an electoral supervisory agency in Nanggroe Aceh Darussalam could trigger violations in the upcoming 2009 election process and threaten stability in the area.

Accusations of violence and intimidation have marred the election campaign of a number of candidates recently, and is fueling concerns over possible interferences in the election process next year.

"If the state Election Supervisory Agency (Bawaslu) fails to immediately approve the establishment of an Aceh Elections Supervisory Committee (Panwaslu), we are concerned that the election will be illegitimate, and could even undermine the peace reached in Aceh," leader of the Democracy Awareness Students' Alliance, Helmi, said recently.

Helmi was speaking at a rally held at the Independent Elections Commission (KIP) and Aceh Provincial Legislative Council (DPRD).

According to students' the election process has recently been threatened by a number of violent incidents attempting to intimidate prospective voters.

Helmi says the recent bombing and arson attack of the office and residence of the Partai Aceh leader is one such example.

"Not to mention covert campaigns carried out by particular parties, such as the Partai Aceh," he said.

In areas dominated by particular parties, opposition flags have been prohibited and publicly burned, causing friction and violence among the election participants.

"There are individuals who do not want peace in Aceh," said Helmi.

Debate between Bawaslu and the Aceh legislature over administrative laws have so far held up the establishment of a Panwaslu in the region.

"As an autonomous region with its own administrative laws, we refer to the 2006 law on Aceh Administration for the establishment of a Panwaslu in Aceh," said Aceh DPRD Speaker Said Fuad Zakaria.

However, while the legislature favors using the Aceh Administration Law, Bawaslu has argued that monitoring bodies like Panwaslu should be established nationally, as expressed under the 2007 law on the General Election Implementation.

Fuad said the dispute between the Aceh legislation and Bawaslu had hindered the establishment of a Panwaslu in Aceh.

"We have conducted competency tests on prospective Panwaslu members in Aceh, but have not formed the body because the Bawaslu can not determine an outcome for the issue," said Fuad.

The legislature is currently lobbying the Bawaslu to immediately make a decision and have asked for Vice President Jusuf Kalla's recommendation on the issue.

"In principle, the vice president has agreed using the provincial law to form the Panwaslu. He has also communicated directly with the Bawaslu," said Fuad.

"We are still sticking by our decision and will call on the Aceh administrative law in order to set up the Aceh Panwaslu," said Fuad.

The Panwaslu was due to be established in June when election proceedings began.

Aceh KIP deputy head Ilham Syahputra said the disagreement between Bawaslu and the Aceh legislature was over the composition of the Aceh Panwaslu.

"According to Bawaslu, the Panwaslu formed by the Aceh legislature during the last gubernatorial election was no longer applicable," said Ilham.

He said the Aceh election process could be crippled if the Bawaslu and the Aceh legislature remained in a deadlock over the decision.

"Each party should be acting on the people's interest rather than their respective egos in order for the Aceh election to run smoothly and peacefully," said Ilham.

West Papua

Papuan activists storm police headquarters

Jakarta Post - December 4, 2008

Jayapura, Papua – Some 50 Papuan human rights activists staged a rally outside Papua Provincial Police headquarters on Wednesday, demanding the release of pro-independence leader Buchtar Tabuni. Police arrested Buchtar for organizing an Oct. 16 rally demanding Papua's independence.

"Buchtar violates Articles 106 and 110 of the Criminal Code as well as Articles 160, 212 and 216 for sedition, agitating the crowd and resisting officers," said Papua Police Chief of Detectives Sr. Comr. Paulus Waterpauw.

However, rally organizer Victor Yeimo said the protesters also demanded independence, challenging the police to arrest them as well. "Buchtar is not the only separatist demanding independence. We all demand independence, so arrest us," he said.

The protesters maintained their presence in front of the police headquarters as late as 7 p.m. local time causing no disturbances to residents' activities.

Human rights/law

'Silenced' campaigner awarded top honor

Jakarta Post - December 5, 2008

Erwida Maulia, Jakarta – Prominent pluralism campaigner Siti Musdah Mulia has been named the winner of the 2008 Yap Thiam Hien human rights award for her "courage and obstinacy" in pushing for civil liberties and "dialogic, inclusive Islam" in Indonesia.

On Thursday, senior lawyer and rights activist Todung Mulya Lubis, a member of the committee of jurors for the award, said Musdah had been singled out as a "bright, courageous and obstinate" female figure pushing for pluralism, women's rights in Islam, civil liberties and equal constitutional rights for all citizens.

"She is at the forefront of those rejecting the pornography law, which violates many individual rights. She has been fighting for shaded, dialogic and inclusive representation of Islam," Todung said during a press conference to reveal the recipient of the award, named in honor of a Chinese-Indonesian human rights activist.

"We decided to grant her the award not simply because we appreciate her struggle, but also to provide inspiration for her future steps and actions."

The award ceremony will take place on Dec. 10, with President Susilo Bambang Yudhoyono expected to attend.

Musdah was born on March 3, 1958, in Bone, South Sulawesi, and raised in a devout Islamic environment. She graduated from Makassar's Alauddin State Islamic University in 1982, before moving to Jakarta's Syarif Hidayatullah State Islamic University (UIN), where she was introduced to the ideas of contemporary Muslim scholar Harun Nasution.

Musdah was relatively unknown before 2004, when the Religious Affairs Ministry's Gender Mainstreaming Team she headed published a counter legal draft criticizing the prevailing Islamic Law Compilation. The newly appointed Religious Affairs Minister Maftuh Basyuni annulled the counter draft in 2005, and Musdah was banned from "spreading her thoughts".

Refused to be silenced, Musdah continued advocating women's rights, as well as those of minority groups such as "deviant" Islamic sect Jamaah Ahmadiyah and homosexuals.

Musdah, now a lecturer at the UIN's Koran Sciences Institute and Postgraduate Program, is the 13th recipient of the Yap Thiam Hien Award.

Previous recipients include slain labor activist Marsinah (1993), human rights group Urban Poor Consortium (2000), disappeared poet-turned-activist Widji Tukul (2002) and Kompas senior reporter Maria Hartiningsih (2003).

House urged to push for formal inquiry into missing people

Jakarta Post - December 4, 2008

Jakarta – The House of Representatives does not need to launch an investigation into longstanding cases of involuntary disappearances, but instead should push the president to order a formal investigation into these crimes against humanity, a human rights group has said.

The Setara Institute said Wednesday that the findings of the National Commission on Human Rights' are enough to kickstart a formal investigation.

"Based on the rights commission's recommendation, the House should take a political move and urge President Susilo Bambang Yudhoyono to order the Attorney General's Office to begin the long awaited probe," Hendardi, Setara's director, said.

The House's own investigation would only extend the suffering of the families of the victims and unnecessarily sap lawmakers' energy, Hendardi added.

"Only through such a political move will the House make an impact and give encouragement to the families of the victims. The public can then expect the president to take initiative," he said.

In response to the rights commission's report on state involvement in the cases of involuntary disappearance, the House formed a special committee of inquiry into the abuses, which plans to summon a number of retired army generals for questioning in connection with the past crimes.

The former generals include Wiranto and Prabowo Subianto, who have lashed out at the House's move, saying it is politically motivated now that they are candidates in the 2009 presidential elections.

The House's special committee held a hearing on Wednesday with the families of people critical of the government who disappeared between 1997 and 1998 and are feared dead.

Chairman of the committee, Effendi Simbolon, said the lawmakers would require the families and non-governmental organization activists advocating for them to testify before the lawmakers.

"We hope the families and friends of the victims as well as those concerned about the cases will talk to us again," Effendi, of the Indonesian Democratic Party of Struggle, said.

A House special committee conducted a probe into alleged human rights violations in 1998, at the end of the New Order era, but it colcluded that there were no serious human rights violations.

Effendi said the committee he leads would work from scratch. "We have not got a clear picture about the crimes, as the previous committee investigating the cases had no responsibility to pass on their findings to us," he said.

Prosecutors urge light sentence for killer spy

Sydney Morning Herald - December 3, 2008

Tom Allard and Karuni Rompies – Indonesian prosecutors yesterday asked for a prison sentence of 15 years for the intelligence operative and former Kopassus commander Muchdi Purwopranjano, who they allege organised the assassination by arsenic poisoning of a prominent human rights activist.

The prosecutor, Cirus Sinaga, described Muchdi as the "initiator" of the murder of Munir Said Thalib, but called for a light sentence. "Muchdi has served the country and received many medals for that," he said. "We must respect that."

The request follows a lengthy battle to get to the bottom of who orchestrated the killing, which took place on a flight from Jakarta to Amsterdam.

The case is a test of the accountability of the military and intelligence elite in the new, democratic Indonesia.

The "premeditated murder" of Munir was undertaken by an Indonesian state intelligence (BIN) agent and former airline pilot, Pollycarpus Priyanto, who slipped the dose of arsenic into a drink during a stopover in Singapore. Pollycarpus was jailed for 20 years.

Muchdi was a deputy director at BIN at the time of the assassination in 2004 and had briefly commanded Kopassus, the special forces unit. He was relieved of that post after Munir revealed details of its role in the disappearance of student activists.

Munir's widow, Suciwati, told reporters after yesterday's hearing: "Logically, the initiator must get life. I hope the panel of judges will listen to their conscience when deciding the case."

Munir's friend, the human rights activist Usman Hamid, said prosecutors had been intimidated into requesting the lesser sentence. "Their request does not satisfy the demands of justice," he said.

"It repeats the precedent set by Tommy Soeharto [the son of the former president Soeharto] who killed a Supreme Court justice and got 15 years in the lower court, but then got it reduced to 10 years in higher court.

"Due to several remissions, in total he only served less than five years' imprisonment."

The hearing was adjourned until December 11 to hear Muchdi's response to the sentence request.

Former senior Indonesian spy faces 15 years for activist's murder

Deutsche Presse Agentur - December 2, 2008

Jakarta – Government prosecutors on Tuesday demanded a 15-year jail sentence for a former senior Indonesian intelligence official charged in the murder of a prominent human rights activist.

Prosecutors alleged Muchdi Purwoprandjono, 59, a former Military Special Forces general and deputy head of the State Intelligence Agency, had been "proven guilty" of involvement in the premeditated murder of Munir Said Thalib – an outspoken critic of the country's military.

"We ask for the panel of judges to hand down a 15-year jail sentence for the defendant Muchdi Purwoprandjono," chief prosecutor Cyrus Sinaga told the South Jakarta District Court.

Sinaga said Muchdi's alleged involvement in the murder had damaged the country's image. He added that the former senior spy had been impolite during his trial.

Muchdi is the first top official to face trial for the murder of Munir, a prominent human rights activist who died in September 2004 from arsenic poisoning aboard a Garuda Indonesia flight to Amsterdam via Singapore.

Indonesian human rights activists have long suspected that the intelligence agency was behind the murder of Munir, 38, who challenged abuses by the dictator Suharto's regime.

Muchdi responded angrily to the prosecution's charges, saying he had been slandered. "This is the peak of conspiracy and slander against me. You all know that slander is crueller than murder," Muchdi said as he was led from the courtroom.

He has been in custody since he turned himself in on June 19 in Jakarta and has denied the allegations against him.

Prosecutors said in their indictment that Muchdi was bent on revenge when Munir's work in uncovering the kidnappings of 13 activists by an army special forces team caused him to be removed as chief of the special forces after 52 days in office.

Earlier this year, former Garuda Indonesia pilot Pollycarpus Budihari Priyanto was sentenced to 20 years in prison for poisoning Munir. Former Garuda chief Indra Setiawan was jailed for one year for his role in the murder.

In Pollycarpus' trial, evidence of phone conversations between Pollycarpus and Muchdi relating to the murder and of payments by Muchdi to the pilot were uncovered. But Muchdi claims he shared the phone with family and staff.

Prosecutors argued that witnesses in the trial had confirmed a relationship existed betweenPollycarpus and Muchdi and that both of them had frequently communicated since July 2004.

Munir's widow, Suciwati, expressed disappointment with the prosecutors' demand for a 15-year jail term, saying they should have sought a life sentence.

Human rights campaigners and observers have described Purwoprandjono's trial as a starting point in the fight against impunity for high officials and also for intelligence reform in Indonesia.

Labour issues

Jambi companies cutback to survive

Jakarta Post - December 6, 2008

Jon Afrizal and Nana Rukmana, Jambi, Cirebon – Companies in Jambi province will lay off workers to survive financial problems stemming from the impacts of the global crisis, while those in West Java cannot pay their workers according to the set minimum wage.

"We will lay off around 350 workers," said Kurniawan, a spokesman for the Jambi-based pulp and timber company PT Wira Karya Sakti, adding that the move was a last resort for the company to survive.

"Hopefully, we can bring them back when the economic situation improves," he said. The company employs around 1,500 workers. "The price of pulp has dropped from US$800 to $300 per ton."

The Indonesian Workers Prosperity Confederation Union's (KSBSI) Jambi Chapter has opposed the 10.5 percent increase set by the province for 2009, resulting in a minimum wage of Rp 800,000 (US$72.00), demanding instead that it be increased to Rp 890,000 per month.

However, the Jambi governor cannot fulfill their demands as he fears more layoffs. "I cannot meet their demands because the government is concerned there will be further mass layoffs," Jambi Governor Zulkifli Nurdin said.

The 10.5 percent increase was based on calculations that have included an increase in the cost of living and in the national economic growth rate, he said.

Head of Jambi Manpower and Transmigration Agency Saleh Shibly agreed. The proposal was based on 46 standard of living criteria and in accordance with the standard cost of living in the neighboring provinces, he said.

"The KSBSI was apparently not in favor of it, but we must see it from more than one side. We must also think about the consequences," Saleh said.

His office will sit down with the KSBSI to discuss the issue and hopefully reach a mutual agreement before the minimum wage scheme is approved, he said.

KSBSI spokesman Roida Pane urged the governor to consider the social aspects of the workers before approving the minimum wage.

Ministerial Decree No. 17/2005 on components of minimum wage stipulates that realization of the standard cost of living is implemented in stages.

"However, based on a survey of the standard cost of living, the minimum wage should be set at Rp 1,101,116, compared to the Remuneration Council's proposal of Rp 800,000," Roida said.

In West Java, a number of companies operating in Cirebon will also likely fail to implement the minimum wage next year.

"They failed to implement it this year, how will they do so next year?" head of the Workers Social Protection Scheme's (Jamsostek) Cirebon office Adjat Sudrajat told The Jakarta Post on Thursday.

Adjat said that in 2008 alone as many as 440 companies across Cirebon (which includes Cirebon City), Indramayu, Majalengka and Kuningan regencies had not implemented the regency and municipal minimum wage. They also have not included their workers in the Jamsostek.

He said only 60 percent, or 660 companies, of the 1,100 companies listed at the Jamsostek in Cirebon had met the minimum wage requirements and had registered their employees at the Jamsostek.

However, of around 56,000 workers, only about 22,500 have received wages according to the minimum wage, he said. It was because companies that have implemented the set minimum wage and have participated in the Jamsostek program employed smaller numbers of workers compared to those which have not. "They mostly employ less than 50 workers."

Most of the noncomplying companies are located in Cirebon regency and many of them are in the rattan and food processing industries, he said. "They employ workers without clear labor contracts and provide salaries according to the employees' productivity levels," he said.

Cirebon regency has set its minimum wage at Rp 746,000 next year, compared to Rp 661,000 this year.

Malaysia to hire less Indonesians due to economic slowdown

Jakarta Post - December 5, 2008

Lilian Budianto, Jakarta – Malaysia expects to hire fewer Indonesian workers and see a decrease in the volume of investment, trade and tourism between the two countries due to the global economic slowdown, Malaysia's ambassador said on Thursday.

Dato Zainal Abidin Zain said that Malaysia's economy, which relied heavily on external trade, had started to feel the impact of the global economic fallout; this will affect the need for migrant workers from Indonesia.

Around 1.1 million workers from Indonesia are employed in Malaysia. They work mostly as domestic helpers and labors in construction, or in the manufacturing, service and plantation sectors; a smaller number of skilled workers are spread across various sectors.

"Malaysia has seen exports slow recently as the impact of the global economic crisis is felt," Dato Zainal said during a conference organized by the Indonesian Journalist Association (PWI).

The Agence-France Presse reported on Thursday that Malaysian exports fell 2.6 percent to US$14.7 billion in October amid lower demand for electrical and electronic products and other commodities. Dato Zainal said Kuala Lumpur had prepared a stimulus package worth $2 billion to encourage economic activity.

"When our exports suffer, we cannot guarantee there will not be any reduction in the need for foreign workers. It's been reported that there will be around 300,000 foreign workers sent home but it's too early to speculate. We will find out in the middle of next year; it all depends on the situation (in the coming months)."

Officially, Indonesians make up the largest contingent of foreign workers in Malaysia, but their actual numbers are believed to be much higher, as many enter the country illegally. In 2008, Malaysia reported that around 800,000 Indonesians resided in the country and worked without proper documents.

The subject of Indonesian migrant workers has become a contentious issue recently, with reports of the abuse of migrant workers and the deportation of illegal workers straining the 51- year-old ties between the two nations.

Besides the issue of migrants, the two countries may face challenges on economic and tourist fronts.

Malaysia is Indonesia's 10th biggest trading partner and ranks second in the Southeast Asian region after Singapore. Bilateral trade between Malaysia and Indonesia stood at 25.7 billion ringgit (about US$7 billion) between January to July in 2008. Malaysian direct investment in Indonesia from January to October 2007 stood at 4 billion ringit.

"We hope to have closer cooperation on tourism in the future, despite the crisis. Malaysian Airlines and Air Asia added additional flights to several cities in Indonesia in support of "Visit Indonesia Year 2008", Dato Zainal said, referring to the Indonesian government's program that aimed to attract 6.4 million tourists this year.

A total of 1.7 million Indonesian tourists came to Malaysia in the first nine months of this year, up from a total of 1.2 million in 2007. Last year Malaysia hosted 1.8 million Indonesian visitors, the second largest number after Singapore.

Jamsostek budgets for possible layoffs

Jakarta Post - December 4, 2008

Jakarta – PT Jamsostek, the state-owned occupational insurance provider, will add Rp 2 trillion (around US$179.5 million) to its annual cash reserves next year to anticipate possible withdrawals by beneficiaries affected by layoffs, which could increase significantly given the global economic downturn.

"Next year, we will add Rp 3 trillion to our annual cash reserves making the total available up to Rp 5 trillion" president director Hotbonar Sinaga said on Wednesday, after a meeting with House of Representative's commission VI on state companies.

Jamsostek collects premiums from workers as savings until they are retired. However, it also covers payments of many kinds of compensation for registered workers in the event of accidents, dismissals and layoffs.

According to Hotbonar, between 2005 and 2007, some 700,000 beneficiaries withdrew funds from the company each year in respect of retirement or layoffs.

However, the amount of beneficiaries withdrawing their funds next year is predicted to increase by 20 percent, Hotbonar said, on estimated massive layoffs in industries suffering from weakening demand because of the global economic crisis.

Business associations for producers of textiles and garments, steel, shoes and fopotwear and others have reported their plans to reduce production on slower demand, which in many cases would be followed up by layoffs.

Hotbonar said the company would remain ready to take additional steps to ensure continuation of its service in paying benefits in respect of workers' rights, should the current cash reserves prove not to be sufficient.

Jamsostek – which also invests part of its funds in bank deposits, the stock market, bonds and other projects – currently boasts around Rp 59 trillion in assets.

At present, it can take a dismissed worker up to six months after submittinmg all the required papers to collect his savings and other compensation from Jamsostek – a period of time considered to be too long especially if the worker would be in dire need of cash because of no longer having a job.

However, Hotbonar said the company was trying to persuade the Manpower Ministry to shorten the period needed to collect the compensation down to just one month.

On the company's plans for next year, Jamsostek would cut its investment allocated to the stock market from 20 to 15 percent – due in part to the drop in its main index, and increase its holdings in much safer investments in bank deposits from 30 up to 35 percent.

Hotbonar earlier in the week said that the value of stocks it held had so far declined by Rp 4 trillion, in line with the recent fall in the stock market's main index. "This is a lesson learned, and that's why the company has decided to reduce its investments in the stock market," he said,

However, until the end of the year, the company still plans to buy some more shares, mostly on blue chips, Hotbonar said, adding that the company had set aside up to Rp 200 billion for that purpose. (dis)

Demand for Indonesian workers on the rise

Jakarta Post - December 4, 2008

Andi Hajramurni, Makassar – Demand for Indonesian migrant workers in the overseas formal sector is on the rise, with hospitals, hotels and transportation and construction companies the main employers, an official says.

Head of the National Labor Placement and Protection Agency (BNP2TKI) Mohammad Jumhur Hidayat said his office prioritized sending migrant workers to work in the formal sector.

"From a safety point of view, it is better for workers to be in the formal sector because they are protected by labor laws," he said.

He said Indonesia's migrant workers employed in the informal sector, such as housemaids, far outnumbered those employed in the formal sector. Of Indonesia's estimated 4.3 million migrant workers, 64 percent are employed as domestic maids.

"Around 95 percent of migrant workers facing problems work in the informal sector," said Jumhur on the sidelines of a regional coordination meeting in Makassar on Wednesday.

"They are susceptible because their work is not regulated by labor laws, so we prioritize those in the formal sector. We will increase our scrutiny in the housemaid selection process."

He said the recruitment process for jobs in the formal sector took into account skills and expertise, command of English and knowledge of manpower regulations, especially those concerning rights and obligations.

Jumhur said thousands of Indonesians were employed as nurses in the Middle East. They work in hospitals or private homes, earning between Rp 5 million (US$403) and Rp 6 million monthly in the private sector and from Rp 10 million to Rp 12 million at state- run hospitals.

South Sulawesi is set to send up to 1,000 nurses to Kuwait. "We are ready to send another batch of 1,000 nurses to Kuwait. We have already sent 2,129 migrant workers to various Asia Pacific and Middle Eastern countries this year, including nurses, drivers, construction workers and plantation workers," South Sulawesi Governor Syahrul Yasin Limpo said.

This year, migrant workers from South Sulawesi sent home a total of Rp 4 billion in remittances to their families.

"The most important thing is that our migrant workers become the motivating factor for others as a way to minimize unemployment. We hope in 2010 the number of migrant workers from South Sulawesi will reach 20,000," he said.

Responding to questions on how Indonesia can protect its migrant workers from rights violations, Jumhur said his office was continuously coordinating with recruitment agencies in the province to safeguard migrant workers' rights and jobs.

He said his office had also coordinated with foreign recruitment agencies to provide Indonesian migrant workers with insurance, outreach centers and monitoring posts in airports as places for them to lodge complaints.

Employees with HIV/AIDS discriminated against: ILO

Jakarta Post - December 3, 2008

Erwida Maulia, Jakarta – Workplace discrimination remains an issue for people with HIV/AIDS, with most companies still refusing to employ HIV-positive job seekers, and about half considering the condition an acceptable excuse for job termination, a study revealed Tuesday.

In its recent study on HIV/AIDS in the workplace, the International Labor Organization found 82 percent of companies surveyed would reject new recruits found to be HIV/AIDS positive, 60 percent would list an HIV/AIDS-negative status as a prerequisite for career advancement, and 50 percent would cite the medical condition as grounds for job termination.

"Like it or not, discrimination in the workplace for employees living with HIV/AIDS still exists," ILO official Tauvik Muhamad told a discussion in Jakarta on Tuesday.

"Looking at sectors in detail, there is an indication relatively more companies in the manufacturing, oil, gas and mining, and hospitality sectors cite HIV/AIDS-positive status as a reason for job termination." The study, completed in November, was conducted by the ILO and research firm Taylor Nelson Sofres. It involved 803 companies in the four provinces with the highest recorded rates of HIV/AIDS infections: Jakarta, East Java, Riau Islands and Papua.

Most of the companies surveyed were private domestic companies in the trading, manufacturing and construction sectors.

The ILO issued its Code of Practice on HIV/AIDS and the World of Work in 2001, which was later adopted by the Indonesian government through a 2003 tripartite commitment between the government, businesses and workers' unions. The Manpower and Transmigration Ministry also issued a decree in 2004 on the matter.

The study, however, shows only a small number of companies have adopted these policies; only 25 percent are aware of the ILO Code of Practice, 16 percent are aware of the 2003 tripartite commitment, and 30 percent are aware of the ministerial decree.

It further revealed 97 percent of the companies considered HIV/AIDS a serious problem in Indonesia, and nearly half saw it as a threat to their performance, claiming productivity, absenteeism, recruitment and training expenses, as well as medical expenditure were affected the most.

The survey concluded most companies did not pay enough attention in dealing with HIV/AIDS. Approximately 91 percent did not allocate a regular budget for prevention of the disease, and only 29 percent provided regular health checks for employees, of which only 31 percent included an HIV/AIDS test.

Shinta Widjaja Kamdani, chairwoman of the Indonesian Business Coalition on AIDS, said companies needed to see the impact of HIV/AIDS on their businesses before they would consider it a serious problem that had to be addressed.

Sofjan Wanandi, chairman of the Indonesian Employers Association, added businesses needed a "government push" to tackle the problem more seriously.

ILO data shows 25 percent of the 33 million people living with HIV/AIDS worldwide are workers.

More workers sacked in Central Java

Tempo Interactive - December 2, 2008

Rofiudin, Semarang – Several companies in Central Java have been dismissing workers since September due to the world financial crisis and this will continue.

"Businesses cannot do anything in facing the global crisis. The export market is bad. There are no more orders," said Central Java's Indonesian Businessmen Association's advocacy division head, Agung Wahono, on Tuesday (2/12).

According to Agung, companies have been forced to dismiss their workers because they could not resume their activities.

These companies include PT Daya Manunggal Tekstil (Damatex) Salatiga, which dismissed 237 workers, PT Rimba Karya Prima Magelang dismissed 180 workers, PT Batamtex Ungaran dismissed around 100 workers, and PT Aditex dismissed 850 workers.

According to Agung, in addition to issues related to the global crisis, increasing workers' wages is also another reason for the dismissals.

Central Java governor Bibit Waluyo has set an average rise of 12 percent for the minimum monthly wage in Central Java compared to last year. Businesspeople asked that a rise in the minimum monthly wage should not exceed more than six percent. "The governor ignored our request," said Agung.

Workers in Medan reject four-minister decree

Tempo Interactive - December 2, 2008

Sahat Simatupang, Medan – Thousands of workers in Medan yesterday (1/12) hit the streets to reject the four-minister decree that restricts wage rises in an effort to anticipate the impacts of the global economic crisis.

"The restriction for wage rises not to exceed six percent proves that the government is not serious in improving the lives of workers," Indonesian Prosperous Workers Union head, Tohonan Tampubolon, said in a speech.

This is the fourth action during the past month rejecting the decree.

North Sumatra Regional Legislative Council (DPRD) member, Harman Manurung, who received the statement letter rejecting the decree, said he would convey the workers' aspirations to the central government in Jakarta.

Laid-off workers take risks to make ends meet

Jakarta Post - December 1, 2008

Multa Fidrus, Banten – After being laid off in September along with 416 other workers by the same company in Serang, Prihatini, 36, said Saturday she had lost hope of finding employment.

"I have to feed my children. They also go to school and they need money for school fees, and I have no husband," she told The Jakarta Post.

Just a month after the layoff, the mother of three began to work at a massage parlor on Jl. Raya Serang. She said the massage job provided decent income if she served the requests, which were sometimes outside her job description, from the guests.

"But I still want to find another job and earn money for my children in respectable way. I can't stand being regarded as a sex slave even though I always refuse any indecent requests," she said.

Mutiara, 24, another worker who was laid off by a factory on Jl. Raya Serang last month, can be considered luckier than Prihatini because she has a motorcycle and can use it as an ojek (motorcycle taxi).

"It's not easy to earn Rp 20,000 a day because there are too many ojek drivers and we have to scramble for passengers," she said, adding that her wage at the textile factory was more than Rp 30,000 per day.

Maruhum, 34, who shares a rented house with four fellow workers in Ciujung Damai housing complex, Serang, said he preferred to wait until the situation was better, hoping the company where he worked would employ him again. "I'm sure the global financial crises will soon end," he said.

The real impact of the ongoing global financial crises has caused a number of industrial firms in Banten to lay off thousands of workers.

Data at the Banten Manpower Agency showed that four garments in Serang had laid off workers over the past three months due to declining orders from overseas.

PT Panca Plaza Indo Tekstil, PT Sugih Brother, PT Pancawira Brother and PT Grand Pintalan are four industrial firms that laid off 386, 429, 365 and 417 workers respectively.

"None of the companies have delivered explanations to the agency for the massive layoffs. I am certain the workers were laid off without clear reasons," said Mapar Suparyadi, head of industrial relationship dispute department at the agency.

Alfonso, deputy chairman of Banten's Indonesian Employers Association (Apindo), justified the companies' decision. "Several industrial firms in Banten have asked some of their workers to stay home lately because the companies are facing financial difficulties," he said.

He said 20 percent of a total 2,265 industrial firms operating in the province were suffering setbacks because export of their products to the United States and other countries had dropped by 20 percent on average.

In order to survive, the companies had no choice but to ask workers to remain at home, he said.

Apindo will propose the government give tax incentives to the firms, he added. "Therefore, we also ask all workers not to demand an increase in their monthly wages higher than what the industrial firms can afford," he said.

Separately, Yesehikal Prabowo, chairman of the Banten's National Labor Union (SPN), said the number of workers to be laid off by industrial firms would continue to increase in the near future because many firms were facing hardship.

"It seems workers need to wait for their fate. If the companies where they currently work can survive the global financial crises, they will continue working and if not, they will have to lose their jobs," he said.

"We have been advocating for the workers' rights. As a result, some of them still receive 50 percent of their month wage from the companies."

Global crisis starts to bite Indonesian migrant workers

Jakarta Post - December 1, 2008

Abdul Khalik, Jakarta – With the global financial crisis starting to affect Asian countries, hundreds of thousands of Indonesian migrant workers in Malaysia, Hong Kong, Taiwan and South Korea could be laid off, officials and civil society groups warn.

In South Korea, a few thousand Indonesian migrant workers have been made redundant due to the recent slowdown in the economy, while in Malaysia some 300,000 Indonesian workers could be laid off early next year when factories cut costs to cope with the economic downturn.

"We have had many complaints from workers in South Korea that they have been laid off. They said thousands of them are now out of work," Migrant Care founder Wahyu Susilo said Friday.

Wahyu, an activist in helping migrant workers, said the workers told him they would not return home but preferred to stay in South Korea as illegal workers.

"They know they will be jobless in Indonesia if they come back. They will do anything, including becoming illegal workers, to get an income," he said.

Indonesian Ambassador to Malaysia Da'i Bachtiar said that of the 2 million Indonesian workers in the neighboring country, 300,000 working in various industries could face a similar fate because of drops in production orders.

"We are afraid that the crisis, which is forcing firms to cut costs, will put some 300,000 of our workers out of work," he said.

Da'i said the workers would still have contracts with their companies until early 2009. "But after that, we are afraid the wave of layoffs will begin. We'll wait and see what the Malaysian government will do about it," he said.

Manpower and Transmigration Minister Erman Suparno said layoffs are haunting Indonesian workers in Taiwan and Hong Kong also. "We will see our workers, especially those working in the manufacturing sector, being sent home. I don't know how many of them yet," he said.

According to the National Commission for Placement and Protection of Indonesian Migrant Workers (BNP2TKI), there are around 5.8 million Indonesian workers abroad, mostly in Malaysia and the Middle East.

Around 125,000 Indonesians work in Taiwan, 120,000 in Hong Kong and 25,000 in South Korea, with the rest in Japan or Brunei Darussalam.

In 2006, migrant workers sent home Rp 60 trillion (US$5 billion) in foreign exchange, equivalent to three times the country's foreign direct investment, BPN2TKI chairman Jumhur Hidayat said recently.

Erman said Indonesian workers in Japan, the Middle East and Brunei were still safe from mass dismissals.

Foreign Ministry director for protection of Indonesian migrant workers Teguh Wardoyo said there was no official confirmation yet of how many Indonesian workers had been laid off due to the current global crisis.

"We are still gathering data from our representatives abroad to get a clearer picture. But I don't think it is that gloomy," he said.

Foreign Ministry spokesman Teuku Faizasyah said embassies in those countries were ready to help Indonesian migrant workers laid off by their employers.

Environment/natural disasters

Mudflow victims jaded over 'lying' Lapindo, government

Jakarta Post - December 5, 2008

Indra Harsaputra, Sidoarjo – Despite a compensation agreement in Jakarta on Wednesday, thousands of mudflow victims staged a massive rally along the Porong highway on Thursday, paralyzing the main road between Surabaya and Malang.

Carrying banners and distributing pamphlets branding energy company PT Lapindo Brantas Inc. and the government liars, protesters blocked a large section of the road, forcing police to redirect traffic through Krian. Thousands of commuters, buses and trucks had to return to Surabaya and take alternate routes to Pasuruan, Malang and Batu.

Arguments between protesters and the police broke out when the latter tried to stop the demonstrators from impeding traffic on the Pasuruan-Malang intersection. After a drawn-out negotiation with police, the demonstrators agreed to cease their blockade of the Porong bridge and move to a nearby mudflow site.

The protesters were expressing their dismay over negotiations with Lapindo and the government, who had promised to pay 20 percent of victims their compensation by Monday.

"Of the 500 families who signed a deal with Lapindo's subsidiary PT Minarak Lapindo Jaya in September, only 50 have received compensation," said Pitanto, deputy chairman of the Renokenongo mudflow victim association.

Hundreds of mudflow victims from different villages staged a rally in front of the Presidential Palace in Jakarta on Wednesday, demanding Lapindo pay the remaining compensation immediately.

In a meeting later in the day, the victims of the mudflow disaster reached a deal with Lapindo and the Sidoarjo Mudflow Mitigation Agency (BPLS) to settle the remaining 80 percent of the compensation through monthly settlements of Rp 30 million (US$2,500) to each affected family.

The deal was reached ater President Susilo Bambang Yudhoyono reportedly lost patience with the company's failure to pay the compensation.

The company was supposed to pay the remaining compensation in a lump sum by December, but the global financial crisis and debt troubles within the Bakrie family business empire slowed down the process, officials said.

Pitanto said the two candidates campaigning in the East Java gubernatorial election had made no political commitment to deal with the social impact of the mudflow disaster.

"Neither the candidates nor the President, who wept when he visited the area two years ago, can solve the problem or press the Bakrie family to pay the compensation," he said.

Minarak spokeswoman Yuniwati Teryana appealed to the mudflow victims to exercise patience, saying the company was facing financial difficulties due to the global economic slowdown.

"We will pay the compensation in accordance with the presidential instruction, but payment cannot be carried out at the moment because of the financial crisis," she said.

The muflow disaster, which engulfed several villages and hundreds of hectares of farmland that began spewing from Lapindo's gas exploration site in Sidoarjo, near Surabaya on May, 2006.

Compensation deal reached in lengthy Lapindo debacle

Jakarta Post - December 4, 2008

Desy Nurhayati, Jakarta – Victims of the East Java mudflow disaster have reached a deal with the Bakrie family-controlled PT Minarak Lapindo Jaya and the government agency handling their case to settle a long outstanding compensation payout.

Victims' representatives held lengthy talks Wednesday with the Sidoarjo Mudflow Mitigation Agency (BPLS) and Nirwan Bakrie, head of the Bakrie Group of companies, at the State Secretariat, finally agreeing to settle the remaining 80 percent of compensation through monthly installments of Rp 30 million (US$2,500) to each affected family.

The victims are residents of four villages – Renokenongo, Kedungbendo, Jatirejo and Siring – included in the map of affected areas as stipulated in a 2007 presidential decree. They have been in Jakarta since Monday to pressure the government over the delayed payments.

Following the meeting, Public Works Minister Djoko Kirmanto confirmed the three parties had reached an agreement, and blamed the current financial crisis for not allowing the outstanding payments to be settled at once.

"There should be no deadlock, because the families need this compensation. That is why we have agreed on this scheme. Each family will get Rp 30 million per month until the payments are settled," Djoko said at a press conference at the presidential office.

"We will start disbursing the installments this month, with the period differing for each family depending on the due date of their rent."

In addition to the Rp 30 million, the families are also entitled to Rp 2.5 million to allow them to extend their rent periods.

"We have settled the disputes over the compensation payments through this negotiation without violating the presidential regulation," Nirwan said.

Earlier Wednesday, President Susilo Bambang Yudhoyono urged the three parties to settle the outstanding payments immediately.

"I feel inconvenienced by this problem. If we can resolve the Aceh issue, why can't we resolve this" the President said, referring to decades of separatist conflict in the country's westernmost province.

After the three-party negotiations, Yudhoyono met with the victims' representatives, including Kus Sulaksono, who said they had accepted the agreement despite initially demanding each family receive Rp 75 million to enable them to buy their own homes, with Lapindo only willing to pay Rp 15 million installments at first.

"We agree with the scheme, and after being convinced by the President that the current crisis has hampered the compensation payment, we understand," Kus said.

The mudflow disaster, which engulfed four villages and hundreds of hectares of farmland, was fed by hot mud that began spewing from Lapindo's gas exploration site on May 29, 2006.

In October, a meeting of renowned international geologists concluded the disaster was caused by Lapindo's drilling activities.

Lapindo victims demand to meet president

Tempo Interactive - December 2, 2008

Rohman Taufiq, Jakarta – Around one thousand victims of the Lapindo mudflow disaster from the Tanggulangin Anggun Sejahtera housing complex, Sidoarjo, came to the Presidential Palace this morning (2/12).

As planned, they are now gathered at the Istiqlal Mosque and will demand that the president to push Lapindo Brantas Inc. to fulfill its commitment as regards paying them compensation.

"We just want to meet with the president today. So far, we have only met with a minister who cannot apparently make any decision," said Sumitro, the action leader.

Several of the victims said they were disappointed because during their meeting with the Public Works Minister yesterday, they were asked to leave. Nothing satisfactory was resolved during the meeting as far as the victims were concerned.

A direct meeting with the president is expected to be able to answer their concern as they have not received any confirmation regarding the compensation up until today.

"The President issued the presidential regulation regarding the compensation. Therefore, he should be the one implementing it," added Sumitro.

Most rivers face severe pollution, study finds

Jakarta Post - December 2, 2008

Adianto P. Simamora, Jakarta – Siti, a housewife who lives near the Kalimalang canal in East Jakarta, is familiar with the sight of dead fish floating up from the murky depths after overnight rains.

"We often find dying fish and shrimps in Kalimalang river, usually in the morning after the heavy rains. Many residents go into the water to collect the fish," she says. "What we (residents) understand is the fish die because certain companies dump hazardous waste into the river."

The recently published Indonesian State of the Environment Report includes the canal, which runs down the middle of Jakarta, as one of the most polluted rivers in the country.

The 2007 report, issued by the State Ministry for the Environment, revealed that water quality in rivers, basins and small lakes continued to be severely polluted by domestic and industrial waste, despite being the main sources of drinking water.

The ministry surveyed 33 rivers in 30 provinces, most of them moderately to severely contaminated.

The most polluted rivers are North Sumatra's Deli, Lampung's Way Sekampung, Jambi's Batanghari, Banten's Kali Angke, Yogyakarta's Progo, East Java's Brantas, and the Kalimalang.

"The survey represents the real conditions of rivers in the country. But the report did not study the sources of pollutants," Antung Deddy, deputy assistant minister for river and lake management, said Monday.

The survey focused on 16 parameters, including biochemical oxygen demand (BOD), chemical oxygen dioxide (COD), pH, and fecal coli and coli form.

In terms of pollutants affecting the BOD – the total oxygen required by microorganisms to decompose organic substances in sewage – water in most of the rivers was no longer suitable as drinking water.

"The highest BOD concentrations are in Java, with 185 milligrams per liter in Surabaya River and 155 in Citarum River, West Java," the report said.

The Public Works Ministry earlier predicted the country would need more than 311 million cubic meters of drinking water in 2012 because of the population boom.

The densely populated Java Island alone will need about 184 million cubic meters in 2012 and 312 million cubic meters in 2025.

The report, used as a basis for other departments in making policies related to infrastructure development, also found fecal coli levels that far exceeded government-specified limits.

Water quality in basins also suffered from high concentrations of BOD pollutants, the study showed.

The study examined 18 basins, including Darma, Selorejo and Sempor on Java Island.

The government blamed riverbank dwellers as the main source of the pollution. As of 2005, there were 118,891 families, mostly in Jakarta, living along riverbanks.

In addition to this, about 8 percent of households across the archipelago dump their domestic waste directly into rivers, the survey found.

Agriculture & food security

Changes in Indonesia's land usage 'threaten food supply'

Jakarta Post - December 5, 2008

Yuli Tri Suwarni – The conversion of rice fields and farming areas for residential and industrial land use is threatening the resilience of Indonesian food supplies, Agriculture Minister Anton Apriantono says.

Anton was speaking on the sidelines of an event held in recognition of World Food Day, at Tegalega Square, Bandung, on Wednesday.

In attendance were West Java Governor Ahmad Heryawan and the UN Food and Agriculture Organization's country representative in Indonesia, Man Ho So.

Each year in Indonesia some 40,000 hectares of rice paddy is converted for other uses, Anton said, urging President Susilo Bambang Yudhoyono to sign a draft land management bill which could later be used to limit such conversions.

"We can prevent conversions by making more farms and by introducing restrictions on land use," he said. "Agricultural land being converted must be replaced."

The government was in the process of expanding agricultural zones, which currently cover a total 7.4 million hectares in Indonesia. This figure is only half the optimal area of 15 million hectares, Anton said.

Indonesia has managed to increase its food production over the past two years, producing 60.28 million tons of rice in 2007, which was 5.14 percent more than in the previous year. Similar increases were enjoyed in other crops such as corn and soybean.

A big problem in the provision of good quality and reasonably priced foods is climate change, Anton added.

"Climate change has shifted rain patterns causing extreme weather conditions, leading to changes in seasons and planting times as well as food quality and production," he said.

"We have to adopt preventative measures immediately, otherwise the resilience of our food supply will be impacted."

The use of food for stock feed and biofuels has put additional pressure on the world's food stocks, Anton said.

Some 800 million people were starving every day worldwide, with 15 children and 15 adults dying of starvation every minute, he said.

Commenting on the current fertilizer shortage, Anton said the government had increased its fertilizer stocks from 4.5 million to 4.8 million tons.

"An increase of farming activities has caused the fertilizer shortage, but there is also a huge price discrepancy which is causing a moral hazard."

Health & education

Indonesia's education equity goals 'moderate', UNESCO report shows

Jakarta Post - December 6, 2008

Erwida Maulia, Jakarta – A global ranking on education equity recently released by UNESCO has placed Indonesia 71st out of 129 countries surveyed, down from 62nd in 2007 and 58th in 2006.

In its 2009 Education for All (EFA) Global Monitoring Report launched last week in Geneva, UNESCO placed Kazakhstan on top, followed by Japan, Germany, Norway and the UK. Last year's report saw Norway in first place, with the UK topping the list in 2006.

Southeast Asian nations Brunei Darussalam and Malaysia are on a list of 56 countries with a high EFA Development Index (EDI); while Indonesia, Myanmar and the Philippines are among 44 countries with a medium EDI. Cambodia and Laos are included in the bottom 29 countries with a low EDI.

Singapore, Thailand and Vietnam were not included in the report, along with the United States and Australia. The annual Global Monitoring Report, available at www.unesco.org, is a means of monitoring countries' progress toward achieving six EFA goals, set in 2000, by 2015.

The EDI is a composite that uses four of the goals, excluding the first and third, selected on the basis of data availability. The universal primary education goal is measured using the indicator of total primary net enrollment (NER) – the percentage of primary school-aged children who are enrolled in either primary or secondary school; while the quality of education goal is measured using the proxy indicator of the survival rate to fifth grade.

The EDI can vary from 0 to 100 percent, or 0 to 1 when expressed as a ratio. The closer a country's EDI value is to the maximum, the greater the extent of its overall EFA achievement and the nearer the country is to the EFA goal as a whole.

Indonesia's EDI dropped to 0.925 from 0.935 last year and 0.938 the year before. Its total primary NER score was 0.984, indicating 98 percent of its primary school-aged children are enrolled in either primary of secondary school. The adult literacy rate was 0.910, meaning 9 percent of Indonesia's adults are still illiterate.

Hamid Muhammad, the National Education Ministry's director general for non-formal and informal education, responsible for ensuring Indonesia achieves the six EFA goals by 2015, told The Jakarta Post Friday that Indonesia could have had a better EDI and ranking if UNESCO had used data from the last two years for its report, and not data from the school year ending in 2006.

Hamid said EFA goals for Indonesia meant the country, among others, should have an NER of 95 percent, gross junior high school enrollment rate of 95 percent and adult literacy rate of 95 percent.

Indonesia has attained these first two goals, with both the NER and junior high enrollment rate exceeding 95 percent. "Our illiteracy rate now stands at 5.7 percent, so in fact we only need to cut 1 percent more from the rate to reach the EFA goals," Hamid said.

Disabled group demands better care

Jakarta Post - December 6, 2008

Desy Nurhayati, Jakarta – The Indonesian Union of People with Disabilities (PPCI) called on government agencies to provide greater access and facilities for their members but acknowledged that the government has done much to improve their overall welfare.

The call was made by the group during its meeting with President Susilo Bambang Yudhoyono at the State Palace to mark the International Day of Persons with Disabilities on Dec. 3.

"Greater effort should be taken to accelerate the implementation of the 2003-2014 National Action Plan for People with Disabilities," said PPCI chairman Siswadi.

The group asked various ministries to enhance their rights and status under the international Human Development Index by increasing their accessibility to education, health and job facilities.

"We ask the National Education Ministry to improve the quality of education and facilities for disabled individuals at every level of education. We also want the Public Works Ministry to provide us with more support," Siswadi said.

Yudhoyono asked companies to uphold the 1997 Law on People with Disabilities, which states that people with disabilities should make up at least 1 percent of total employees.

"The law says people with disabilities have the right to a proper job and to live full and successful lives. I want every company to fulfill that quota," he said in his speech.

The president also asked state and regional businesses to provide training to people with disabilities in order to improve their range of overall employment skills.

Yudhoyono said in terms of social security the government had distributed Rp 300,000 (US$25) cash every month to over 10,000 disabled persons and sought to expand the scheme to 17,000 persons.

"Although we are facing a global financial crisis, the government will still increase the number of recipients to 17,000 people next year," he said. "The government is always serious about improving the welfare of people with disabilities, and we will continue our efforts."

Manpower and Transmigration Minister Erman Suparno said the number of people with disabilities hired for work had increased by 200 percent over the past five years.

"Seventy percent of companies have fulfilled the 1 percent employment quota, mainly from the manufacturing, telecommunication and garment sectors," he said, adding that the government would urge state enterprises to implement the rule.

During the event, the minister congratulated four companies for employing people with disabilities. They were PT Welling Jaya Sejati in Gresik, East Java, PT Indah Kiat Pulp and Paper in Riau and PT Tri Mitra Baterei Prakarsa and PT Denso Indonesia Corporation, both in North Jakarta.

Two people with disabilities, Ismet Mahir from Jakarta and Slamet Ananto Putro from Surakarta, also received awards from the Social Services Minister Bachtiar Chamsyah for their efforts campaigning for the improvement of rights.

Similar awards were also given to the PT Bank Tabungan Pensiunan branch at Makassar, South Sulawesi, and the Center of Education and Training for Disabled Children in Bandung.

Activists, sex workers mark World AIDS Day

Jakarta Post - December 2, 2008

Jon Afrizal and Agus Maryono, Jambi, Purwokerto and Yogyakarta – Against a backdrop of HIV/AIDS infection rates that are rising at alarming levels in Jambi, activists and sex workers in Central Java, Yogyakarta and West Java commemorated World AIDS Day in different ways on Monday.

Data from the Jambi Health Office shows 184 people have tested positive for HIV as of April this year, with 106 of them contracting AIDS and 59 dead.

"The highest percentage of those diagnosed, 61.02 percent, are drug addicts who contracted the disease through the sharing of needles. Of them, 41 contracted HIV and 66 AIDS, and 36 have died," said Azwar Djouhari, head of the Jambi Health Office's Infectious Disease Control and Prevention Division.

He added some 25.42 percent contracted the disease through heterosexual intercourse, 1.69 percent through marital intercourse, 6.78 percent through homosexual intercourse and0.1 percent through mother-infant transmission.

In Purwokerto, Central Java, some 70 sex workers and several AIDS activists in the resort area of Baturaden marked World AIDS Day by participating in a karaoke contest organized by the Banyumas Stop AIDS Movement.

"By doing this we can gather them in large numbers and at inform them of the importance of health in the framework of early AIDS prevention," group coordinator Bangkit Ari Sasongko told The Jakarta Post.

Besides prizes for the winners, the event also saw the presentation of an award for the most health-conscious sex worker, given to a worker one who underwent routine voluntary health checks and counseling.

There are about 200 sex workers operating in Baturaden, Bangkit said, adding the main issue in HIV/AIDS prevention there was the scant awareness on their part about the importance of medical examinations.

In Yogyakarta, World AIDS Day was commemorated differently, with hundreds of HIV/AIDS activists from dozens of NGOs staging performances and unfurling a giant cloth replica of a condom down the sidewalk of Jl. Malioboro.

Some 20 anti-AIDS groups took part in the events that began early Monday morning at Abu Bakar Ali field, at the northern end of the famed street.

"This event is aimed at raising awareness among people that they shouldn't be ashamed about having themselves examined to detect whether they have been infected by HIV/AIDS," said Riswanto, secretary of the Yogyakarta AIDS Prevention Committee.

He said the public must understand that those living with HIV/AIDS should not ostracized because the virus could be contracted through various means. In Bandung, the deliberation of a bylaw on AIDS handling was halted as members of the West Java Legislature busied themselves with preparations for next year's general elections, despite having already conducted "comparative studies" in East Java and Bali.

"We are pessimistic the draft bylaw can be approved, because of the 2009 election," said Ani Rukmini, member of the Council's Commission E for education, healthcare, manpower and social affairs, adding the number of HIV/AIDS cases was now at an "alarming level".

The Association of Indonesian Physicians Concerned about HIV/AIDS estimates that the number of people living with HIV/AIDS in the country would more than double to 270,000 this year from 120,000 in 2002.

Government slammed over 'failure' on HIV/AIDS

Jakarta Post - December 1, 2008

Erwida Maulia, Jakarta – The government has been urged to change its "ineffective" approach to HIV/AIDS, as the number of people infected by the disease continues to grow each year.

Chairman of the Association of Indonesian Physicians Concerned about HIV/AIDS, Samsuridjal Djauzi, said here Sunday the government's current campaigns, which tend to encourage behavioral change, had proved ineffective in curbing the spread of the disease.

The association projects the number of people in Indonesia living with HIV/AIDS to more than double from 120,000 in 2002 to 270,000 this year.

These figures are much higher than those reported by the Health Ministry, which put the number of cases at 18,000 as of September, with the death rate at 20 percent.

Samsuridjal said most people infected with the virus were not aware of their condition.

"The National AIDS Commission has so far focused only on campaigns for behavioral changes, like promoting condom use or safe sex and avoiding needle sharing among drug users," Samsuridjal told The Jakarta Post.

"In fact, despite the target of having 50 percent of high-risk people use condoms during sexual intercourse, only 20 percent do so. That's also more or less the case with drug users."

He urged the government to start developing "biomedical intervention" as a preventive measure. Actions include promoting male circumcision, which he said could reduce the risk of infection by up to 60 percent, and the use of anti-retroviral drugs.

Another problem is the lack of coordination among state institutions, including the AIDS commission and the Health Ministry, which resulted in "overlapping" and "inefficient" campaigns, he said.

Institutions needed to change the attitude of the National Narcotics Agency, which still perceives drug users as mere criminals, thus obstructing activists' attempts to promote the use of sterile needles, he added.

Head of the Indonesian Doctors Association's contagious diseases division, Pandu Riono, said the government should use a combination of all the recommended means of intervention to curb the spread of HIV/AIDS.

He said laboratory tests should be made more accessible for all, healthcare providers should be given better understanding to deal with the disease and infected people should be treated immediately to prevent them from infecting others.

Pandu also said the government should stop subsidizing treatment for wealthy patients and make it free for the poor only, as its policy of free medical treatment for all people living with HIV/AIDS had led to about 200 hospitals nationwide suffering a shortage in anti-retroviral drugs.

But the ultimate problem was not about money but the government's perception of funds for HIV/AIDS treatment as a "burden" rather than an "investment", Samsuridjal said.

He said 70 percent of Indonesia's funds to tackle with HIV/AIDS came from foreign donors.

World AIDS Day falls on Dec. 1. HIV has reportedly infected about 33 million people globally, two million of whom are children under 15. There were an estimated two million HIV-related deaths in 2007.

War on corruption

Government under fresh fire over unclear haj money

Jakarta Post - December 6, 2008

Abdul Khalik, Jakarta – With Rp 6 trillion in annual haj fees bringing it hundreds of billions of rupiah in interest, the Religious Affairs Ministry faces scathing criticism over its lack of transparency in managing the money.

The ministry, the country's exclusive operator for the annual pilgrimage to Mecca, Saudi Arabia, has drawn the ire of anti- corruption groups and legislators, who warned the murky management of the funds made room for officials to embezzle the pilgrims' money.

"They collect trillions of rupiah from pilgrims, and we know nothing about it. They have been doing it for so many years. Imagine how much money we are talking about here," House of Representatives member Soeripto said Friday.

Each year, Indonesia sends more than 200,000 pilgrims to Mecca. Prospective pilgrims are put on a two- to three-year waiting list because of the high number of Indonesian participants that always exceeds the quota allocated by the Saudi government.

Each then transfers Rp 20 million to the ministry's accounts – just to get their names on the waiting list.

"Those registering now will leave in 2011 or 2012. The Rp 20 million is just the down payment. They must each pay the remaining fees (of around Rp 10 million) soon after the government, sometime this year, announces their departures," said Zainun Kamal from the Wakaf Madani Foundation, a private agency that assists Indonesian pilgrims.

With the pilgrimage priced at Rp 30 million per person in Indonesia, the ministry collects Rp 6 trillion from 200,000 prospective pilgrims each year.

But with many opting for the much more expensive ONH Plus package, which costs US$4,000 to $6,000, the total spent by pilgrims is much higher.

Emerson Yuntho of Indonesia Corruption Watch (ICW) said if the Rp 6 trillion haj fees were deposited in banks at an average 10 percent interest rate, up to Rp 600 billion in additional revenue would be generated.

"But where is the money now? Who gets it? We don't know. We suspect it's been embezzled. That's why we reported it to the KPK (Corruption Eradication Corruption)," he said.

Although pilgrims pay the Rp 20 million registration fee a year or two in advance, they do not have any claim to the interest generated by that money. The ministry has established an account for the revenue called a DAU account, but it too is considered shady.

"It is an off-budget fund. It can be used for anything – as a 'cash-cow' for political campaigns or to pay lawmakers to smooth the passage of programs or bills. We demand it be abolished and handed over to the state as non-tax revenue," Emerson said.

Soeripto said such systemic corruption contributed to the poor management of the annual haj pilgrimage.

"I've just returned from Mecca to see the condition of our pilgrims. I found they were really neglected. In some tents, there was no water, while in other places they were starving. How can we have such a condition when our pilgrims pay a huge amount of money?" he said.

Indonesian pilgrims pay Rp 4.2 million more than Malaysian pilgrims, but receive much shoddier services, Soeripto said. He added Malaysian pilgrims were housed in areas close to the Masjidil Haram Grand Mosque in Mecca and accommodated in decent dormitories.

Investigating generals, wanna bet?

Jakarta Post - December 4, 2008

Abdul Khalik, Jakarta – National Police chief Gen. Bambang Hendarso Danuri has been accused of trying to protect eight generals under investigation for allegedly supporting gambling rings in Riau province.

Bambang said Wednesday the police generals were only guilty of "managerial faults" in the case now being investigated by his office's internal affairs division.

Legislators and observers were quick to slam the statement, saying it would confuse the public and hamper efforts to clean up corruption within the police force.

They said it was impossible for the gambling activities to have continued under the noses of the province's police chiefs and their subordinates without them knowing about it.

"It is illogical to say the police didn't know about the gambling. So, I believe they know but they let it continue," said Gayus Lumbuun, a member of the House of Representatives Commission III overseeing legal affairs.

He said he and fellow legislators would demand Bambang explain his comments during a hearing between the commission and the National Police later this month.

"The investigation should not stop with the probe by an internal affairs team. An external investigation is needed to get fair and transparent results to avoid public suspicions and regain their trust," said Gayus, a senior politician of the Indonesian Democratic Party of Struggle (PDI-P).

Eight generals – all former Riau police chiefs and their deputies – are being investigated for their alleged roles in supporting and turning a blind eye to massive gambling rings in the province that raked in Rp 3 billion a day.

Their former subordinates, numbering more than a hundred, are also being probed for similar charges.

National Police chief of internal affairs Insp. Gen. Alantin Simanjuntak said Monday the eight generals would at the least be charged with allowing gambling to take place within their respective jurisdictions in Riau since 2001.

However, Bambang said the generals – six one-star generals and two two-star generals – had never covered for the gambling syndicates.

Legal expert Rudy Satrio, also a lecturer at the University of Indonesia, said it was a criminal offense for a police officer to not act against a crime they knew to be in progress, and that the former police chiefs in question should be charged under the Criminal Code rather than the police force's internal code of ethics.

"What the public wants is law enforcement, not an ethical probe that lacks transparency and sparks suspicions," he said.

He said a failure by the police to charge the implicated under the Criminal Code would undermine the national deterrent against gambling and encourage crime lords to take up the practice.

Adnan Pandupraja of the National Police Commission – an official body established under the law to monitor police officers – said his office could not yet take action because there was as of yet no incriminating evidence.

"If the police chief says it is a managerial mistake then we can't do anything about it. We are waiting for a report from the public, and it is better if it is backed up with strong evidence," he said.

Graft cases threaten Indonesian diplomacy

Jakarta Post - December 1, 2008

Abdul Khalik, Jakarta – Several cases of alleged corruption involving Indonesian diplomats overseas, particularly its ambassadors in Washington and Moscow, have raised concerns over their credibility in representing the country abroad.

The ambassadors to the United States Sudjadnan Parnohadiningrat and to Russia, Hamid Awaluddin, are facing investigations at home for their alleged roles in separate corruption cases.

As the envoys are representing Indonesia in two major world powers considered the country's most strategic partners, the loss of their credibility could disrupt Indonesia's image and standing in international relations, experts and lawmakers warned Sunday.

Sudjadnan has been implicated in corruption related to renovations of the Indonesian Embassy building in Singapore in 2003.

During his recent corruption trial, former ambassador to Singapore Mochamad Slamet Hidayat revealed that Sudjadnan had received US$200,000 from the project funds when he was the Foreign Ministry secretary-general.

Sudjadnan has been summoned by the Corruption Eradication Commission (KPK) for questioning as a witness in the case. He failed to show up, saying he was busy with his duties as ambassador.

Meanwhile, Hamid Awaluddin has been implicated in alleged corruption in a passport project carried out by the Justice and Human Rights Ministry where he was minister from 2005 to 2007.

Hamid, also a former national polls official, managed to evade graft charges against him in connection with the misuse of 2004 election funds, and in another case linked to a bribery scandal involving former president Soeharto's youngest son, Hutomo "Tommy" Mandala Putra.

An audit by the Supreme Audit Agency (BPK) found that the biometric photo project, which charged each passport applicant Rp 55,000, had no legal basis.

The revenue – Rp 192.7 billion during the two years the project was operating – was given to a private company and the ministry's cooperatives without any share handed over to the state, the BPK added.

This alleged case of corruption is being investigated by the Attorney General's Office.

"The cases (against Sudjadnan and Hamid) will of course distract their attention from their duties because they keep thinking about whether or not they will be named suspects," Hariyadi Wirawan, international relations expert at the University of Indonesia, said.

He said although media reports on their possible involvement in the cases would not affect Indonesia's relations with the other countries, the two ambassadors could face credibility problems.

Hariyadi said that if either or both of them was declared a suspect, then Indonesia would lose its credibility in its international diplomacy.

It should be only a matter of time until Sudjadnan is named a graft suspect by the KPK, Adnan Topan Husodo of Indonesia Corruption Watch (ICW) said.

"With Slamet's confession and documents held by the KPK, I think Sudjadnan should be named a suspect. We know how the KPK works in handling a collective crime. They will wait until after the verdict, and then start with other people mentioned in the trials," he said.

Lawmaker Andreas Pareira of the Indonesian Democratic Party of Struggle (PDI-P) warned President Susilo Bambang Yudhoyono against intervening in the investigations into Sudjadnan and Hamid.

Yudhoyono must recall the two ambassadors if they are named suspects, Bantarto Bandoro of the Institute of Defense and Security Studies said.

"We have to learn to send people who really are free from corruption in the future. What is happening now could be an embarrassment to our country," he said.

However, fellow lawmaker Djoko Susilo of the National Mandate Party (PAN) warned the government to uphold the presumption of innocence principle in dealing with the Sudjadnan case.

He specifically praised Sudjadnan for his achievements as the Indonesian ambassador to the United States.

Elections/political parties

Kalla bars rivals from Golkar motif

Jakarta Post - December 6, 2008

Adianto P. Simamora, Jakarta – Vice President and Golkar chairman Jusuf Kalla has warned his senior cadres seeking to run for the presidency next year against using the party's attributes in their campaign activities.

"It is okay (for party cadres to campaign in the presidential election) as long as they don't use Golkar's symbols," he said at a weekly news briefing at the vice presidential office, Jakarta, on Friday. Kalla did not elaborate his reasons for barring Golkar cadres from campaigning alongside party attributions.

"I didn't use the Golkar motif in the 2004 presidential election. Instead, I went with the Democratic Party, the Crescent Star Party (PBB) and the Indonesian Justice and Unity Party (PKPI)," he said.

Golkar, the country's biggest party, selected its presidential candidates for the 2004 election through a convention in August 2003.

Former Indonesian Military (TNI) commander Wiranto won the convention after beating the then party chairman Akbar Tandjung. Kalla had earlier withdrawn from the convention to team up with Susilo Bambang Yudhoyono from the Democratic Party.

Wiranto chose Solahuddin Wahid, the younger brother of former president Abdurrahman "Gus Dur" Wahid, as his running mate. The pair was eliminated in the first round of the 2004 election.

Four Golkar figures – Yogyakarta Governor Sultan Hamengkubowono X, South Sulawesi Governor Fadel Muhammad and former outspoken legislators Yudhi Chrisnandi and Marwah Daud – are planning to join a similar convention held by the National Integrity Council to determine a presidential candidate.

However, the council has nothing to do with Golkar or any other political parties. The council, established by Solahuddin Wahid, would begin convening in January.

Under the convention rules, registered candidates must join a series of road shows in 10 cities including Yogyakarta, Denpasar, Medan, Jakarta, Makassar and Jayapura.

The public will be asked to assess those candidates based on their respective platforms and visions, and this feedback will assist the council in determining eligible hopefuls for the presidential election in July.

The 2008 presidential election law stipulates that only a political party with at least 20 percent of seats in the House of Representatives, or 25 percent of total votes, is eligible to nominate a presidential candidate.

The Golkar Party has long been under pressure from within the party to again stage a convention to determine its presidential candidate for the 2009 election.

But Kalla has rejected the call for a presidential convention, saying it would only benefit "freeloaders" who wanted to seek Golkar's approval to run for the presidency.

In October, a national leadership meeting of the Golkar Party proposed 11 presidential candidates, including Kalla, Sultan, Fadel and Yudhi.

Kalla has hinted at pairing up again with the incumbent President Yudhoyono in the upcoming election, while Sultan, backed by the My Republic Party, has announced his bid to contest the race.

On Friday, Kalla expressed gratitude to the Prosperous Justice Party (PKS) for promoting former president Soeharto as a "national teacher and hero" in its recent campaign ads. "I say 'thank you' to the PKS. It means that it is not only Golkar that respects Pak Harto," he said.

Soeharto, who was ousted from power after 32 years in 1998, was a co-founder of Golkar.

The PKS also nominated Soeharto's eldest daughter Siti "Tutut" Hardiyanti Rukmana as a promising leader in the future. "It is partly campaign tactics but is also legal," Kalla said. Kalla played down the possibility that many Golkar supporters would shift allegiance to the PKS following its campaign ads on Soeharto.

SBY more popular since in-law became a suspect

Jakarta Post - December 1, 2008

Irawaty Wardany, Jakarta – President Susilo Bambang Yudhoyono has gained further public support since announcing one of his relatives is a suspect in the Bank Indonesia corruption case, a survey has found.

The survey – conducted by Cirus Surveyors Group (CSG) from 2,600 respondents in 33 provinces between Nov. 3 and Nov. 10 – showed the president still topped the popularity list compared to other contenders.

Yudhoyono, better known SBY, ended up with 36 percent support, followed by Megawati with 16 percent, Sultan Hamengkubuwono X with 7 percent and Prabowo and Wiranto with 5 percent and 4 percent, respectively.

"SBY's announcement that his son's father-in-law, Aulia Pohan, is a suspect in the BI graft case, and his recent decision to lower fuel prices, are the major factors behind his increasing popularity," said CSG research manager Hasan Nasbi in Jakarta on Sunday.

"The arrest of Aulia by the Corruption Eradication Commission has also improved the popularity of SBY's Democratic Party which holds 17 percent of votes, higher than the Indonesian Democratic Party for Struggle (PDI-P) and the Golkar Party, which only received 15 and 14.5 percent respectively," he said.

Budiman Sudjatmiko from the PDI-P said they acknowledge any survey results but said it would not affect his party's strategy for winning the presidential election.

"The survey was conducted before we revamped our program and announced it to the public. We will continue garnering public support by spreading out Ibu Mega's vision and mission, especially to those at a grassroots level," he said, referring to party chairwoman and former president Megawati Soekarnoputri.

The PDI-P has been pushing its programs intensely, particularly those surrounding fair land ownership and affordable daily goods. Budiman said the PDI-P would focus its strategy on approaching party supporters at the grassroots level.

Hasan said the survey also found that 68 percent of respondents would like to see a younger figure win next year's elections. "Among eight names we put to respondents, four came out with the most support. They were Andi Mallarangeng, Hidayat Nur Wahid, Sutrisno Bachir and Adhyaksa Dault," he said.

He emphasized that the public wanted a leader who cared for the people and could uphold justice. "Unfortunately none of the young figures in the election have met their criteria," he said.

Government/civil service

Half of civil servants are unqualified, says minister

Jakarta Post - December 4, 2008

Abdul Khalik, Jakarta – Responding to discouraging results of recent public service surveys, State Minister for Administrative Reforms Taufiq Effendi revealed half of the country's four million civil servants were unqualified.

He said his office was preparing to reassign two million unqualified officials to other government jobs in an effort to tackle bureaucratic inefficiencies that leaked money.

"They will undergo a series of training to make them fit for other jobs within the government," the minister told the press after addressing a World Bank-sponsored seminar on bureaucratic reforms in Jakarta on Wednesday. "We began this process in 2005, and some 300,000 civil servants will be reassigned to other jobs each year," he said.

Taufiq said the massive reshuffle had begun as a pilot project surveying three offices – the Finance Ministry, the Supreme Court and the Supreme Audit Body (BPK).

He said of the 63,000 officials at the Finance Ministry, only 30,000 were qualified to do their jobs, adding that the situation was worse at the other two offices. "We're not a charitable institution. We can no longer afford to pay people who don't work properly," the minister added.

The government spent Rp 123.5 trillion this year paying the salaries of more than four million civil servants – 17.7 percent of the state budget.

However, Taufiq said none of the unqualified officials would be fired. He said a previous reshuffle at the Finance Ministry had resulted in state revenue rising 35 percent thanks to reorganized tax regimes. Taufiq said the minister's plan was supported by the fact that some 120,000 officials retired every year.

"We still have a very imbalanced distribution of civil servants. In some regions we have an excess of personnel while in many other regions we lack people. That's why we still recruit some 25,000 qualified people every year," he said.

He said more officials were needed in a number of sectors, including agriculture and industry. Taufiq said officials reassigned from the Finance Ministry would be trained as agricultural consultants and posted to villages throughout the country.

Most surveys conducted on Indonesia's civil servants have not made for pleasant reading, with reports of corruption and inefficiencies prevalent.

The Governance Assessment Survey, conducted last year by Yogyakarta's Gadjah Mada University in collaboration with the Partnership for Governance Reform found public services were poor.

Only 20 percent of the interviewed respondents believe human resources at health offices are qualified, while the majority of them say bureaucracy is more concerned with its own needs rather than those of the public.

This year's survey by the Corruption Eradication Commission (KPK) revealed the public sector had a low integrity score of 5.33 out of a possible 10, far lower than in most other countries.

A report issued on March 4 by the Switzerland-based World Economic Forum cited Indonesia's poor health and hygiene services and inadequate infrastructure as key disadvantages to attracting foreign visitors.

"With the reforms, ultimately we want to have better public services and attract foreign investors for the betterment of the people," said Rusdiarto, a senior official at Taufiq's office.

Officials seen puffing freely at offices

Jakarta Post - December 4, 2008

Jakarta – About 80 percent of Jakarta's administration offices violate the bylaw on smoking restrictions, according to a preliminary survey conducted by an NGO.

The Jakarta Residents Forum (Fakta) is conducting the survey from Nov. 17 to mid-December, with several volunteers inspecting administration offices under Governor Fauzi Bowo's consent.

"The violations show the lack of response by core administration offices to honor Governor Fauzi Bowo's commitment to the bylaw," said Azaz Tigor Nainggolan, Fakta head, Wednesday during an open discussion on the survey.

Besides conducting the survey on the five municipal offices, Fakta also surveyed four district and eight subdistrict offices in each municipality.

Tubagus Haryo Karbyanto from Fakta said the data indicated that violations were seen at all offices surveyed in South and East Jakarta, while there was only one administration office that violated the anti-smoking bylaw in Central Jakarta.

Throughout the five municipalities, there were only two offices – the Kebon Jeruk district and Duri Kepa subdistrict offices in West Jakarta – that implemented the bylaw by putting up "no smoking" signs and constructing well-ventilated rooms for smokers.

Fakta conducted the survey to measure the effectiveness of the 2005 bylaw on smoking restrictions. For three years, the bylaw remained dormant until Nov. 19 this year when the Jakarta Environmental Management Board (BPLHD) and several NGOS executed a series of random raids on public areas and offices.

The raids were mostly conducted at privately owned buildings, not administration offices,

Lukman, a volunteer, said he witnessed violations on almost every floor of the South Jakarta municipal office during his inspection. "At first, I was not allowed to conduct my survey even though I had my surveyor identification card and permission letter," he said.

He said the public order officer on the ground demanded that he submit the proper proposal documents to the office.

Lukman said he saw public order officers smoking in a non-smoking area. "When I asked why an officer like him smoked in an nonsmoking area, he said the bylaw did not apply to 'his neighborhood'."

Lukman did not face any obstacles to surveying the Kebayoran Lama district office in South Jakarta. He said the district deputy head granted him the freedom to conduct the survey.

"I did not find a single 'no smoking' sign in the office on the first floor. As I observed further, I saw one officer smoking and I took a photo of him," he said. "But the man saw me and immediately threatened to beat me up," he added.

From his observations of the South Jakarta municipality, Lukman said he saw violations at each of 13 offices he visited.

The same happened in East Jakarta, according to another volunteer, Anton. Anton said he saw cigarette buds on the terraces, in flower pots and on the floor of each surveyed office.

Azas Tigor suggested the city administration provide a hotline service to receive reports from residents on violating officers.

Aurora Tambunan, the city assistant for people's welfare, said the government would seriously consider implementing a hotline service. "We also plan to focus on enforcing the bylaw at malls in the future because malls will have a bigger impact on the public," she said.

"But for now we will do our best to make sure that our own offices implement the bylaw. "According to the governor, we need to clean our house first to provide a good example." (hdt)

Police/law enforcement

Buskers say police went too far in anti-thug operation

Jakarta Post - December 1, 2008

Jakarta – About one hundred street musicians rallied in front of East Java Police headquarters in Surabaya on Monday to protest the rounding up of their fellow street musicians in nationwide anti-thug sweeps.

The buskers, who said they were members of the East Java branch of the Indonesian Buskers Union, demanded the police stop criminalizing them.

"Buskers are not thugs. We're making an honest living on the street. The police should stop these arrests," said Slamet Kusairi, the rally coordinator, as quoted by Tempointeraktif.com.

The National Police had vowed to get rid of petty criminals by conducting a national operation amid rising concern about the rise in street crime. (dre)

Thugs are gone, for now, but the vendors linger

Jakarta Post - December 1, 2008

Jakarta – Armed with wooden sticks, several young police officers were seen banging on public minivans loading passengers at Tanah Abang market, Central Jakarta, and blocking the roads.

One police officer turned to a line of fruit vendors on the roadside and picked up a rambutan with paying for it while chatting with the seller before returning to his job.

The police officers were carrying out a public order operation against undisciplined public transportation workers, thugs, illegal-parking attendants and street vendors causing congestion in the area.

The Central Jakarta administration, in cooperation with the police, has been conducting the operation since Nov. 25 to improve the market's image as Southeast Asia's biggest textile market. The operation is scheduled to last for four months.

The operation has done little to ease traffic, but has been successful in temporarily ridding parts of the city of thugs.

"I can run my business without having to pay thugs security money," said Juned, a clothing vendor. "I do not have to worry about the thugs messing up my stall because there have been no thugs here for the past three days." Juned said he was afraid the thugs would return after the operation was over.

Tambunan, a bus driver, said that thanks to the operation, the streets were safer because there were no more thugs, but he doubted whether it would last long.

Suwardi, from the Tanah Abang Police command post, said police were focusing more on the eradication of thugs. "The police are responsible for the eradication of thugs and clearing traffic, while the illegal vendors are the responsibility of the subdistrict office," he said.

Despite its successes, resident said they still felt skeptical about the operation because it had not been conducted thoroughly.

Harun, a Tanah Abang street vendor, said the police and public order officials only raided the vendors during the morning from 10 a.m to 2 p.m. "Most of the vendors here know that it is safe again to start selling after 2 p.m," he said, adding that earlier this morning some 10 fruit stalls had been raided by police.

An ojek (motorcycle taxi) driver who refused to be named said an operation like this costs money and that was why it had not been conducted thoroughly. "The operation is just ceremonial, it's just a token measure to impress the mayor and the police chief," he said.

He said similar operations had been conducted several times in the past, but the police failed to net many thugs and illegal street vendors because there were police insiders who tipped them off.

"Some of these stalls are owned by retired police officers and civil servants, that's where they get the information prior to the execution of the operation," he said.

Imam, a passing car driver, said the authorities were not serious about the operation. The operation does not reduce congestion in the area, he added.

"Just look around you, there are a lot of minivans and buses still loading passengers anywhere they like, and there are a lot of illegal vendors selling their goods on the sidewalk and the roadside," he told The Jakarta Post.

He said the problem of congestion would still remain unless firm action was taken against street vendors. "The vendors will feel that they have more freedom to run their businesses because they will no longer have to worry about paying thugs security money," he said.

Last week, Central Jakarta municipality announced it would deploy 470 officers to "clean Tanah Abang market". The officers comprise 150 policemen, 150 public order officers, 60 officers from the transportation agency, 60 hired security guards, 20 from the parking agency and 30 from the military.

Central Jakarta Mayor Sylviana Murni was quoted by beritajakarta.com as saying that the municipality would put 40 banners and 1,000 stickers to announce information on the sweep effort. In addition to that, a car equipped with an announcer will circle the area every two hours to blast out information, she said. (fmb)

Economy & investment

Indonesia secures $5 billion loan to shield economy

Jakarta Post - December 6, 2008

Aditya Suharmoko, Jakarta – Indonesia has secured US$5 billion in standby loans from several parties to help plug the budget deficit and keep the economy growing amid the global financial crunch that has made it difficult for countries to raise funds.

Finance Minister Sri Mulyani Indrawati said Friday the loans, from Australia, Japan, the Asian Development Bank and the World Bank, could be drawn upon whenever Indonesia needed them.

State Minister for National Development Planning Paskah Suzetta said the standby loans would only be used if economic growth slowed to 5.8 percent in the first quarter of 2009.

The economy grew by a fairly healthy 6.1 percent in the third quarter of 2008 from a year earlier. But with the downturn expected to kick in here next year, the government has slashed the growth forecast from around 6 percent to between 4.5 and 5.5 percent.

Mulyani said the standby loans would be beneficial given the current condition in which investors were turning away from emerging economies such as Indonesia.

Those who chose to invest, she went on, demanded higher yields for government bonds due to a lack of confidence in the financial market. Mulyani cited the five-year government bond yield, which increased from 9 percent to 15 percent in a short time.

"It is too expensive (for bonds), while the (budget) deficit is used for development, particularly for poverty eradication, infrastructure and health. It is unfair if a country like ours must pay high interest rates for development," she said.

The 2009 budget deficit is earmarked at Rp 53 trillion (US$4.55 billion), half of which will be financed by issuing bonds, Mulyani said. The remaining $2.8 billion is expected to be obtained from bilateral and multilateral institutions.

Mulyani warned if emerging countries had to pay high yields, they might decide to drop or halt their development programs, saying "It's not right, because emerging countries need to catch up with development."

"Therefore the decision (at the G20 meeting) is, if the market is still in shock, then the need from the market will be substituted with other bilateral and multilateral sources that offer a relatively more stable interest rate, such as LIBOR plus 20 or 30 basis points."

In addition to the standby loans, Indonesia has signed bilateral swap arrangements (BSA) with Japan, China and South Korea worth $6 billion, $4 billion and $2 billion, respectively, to support a possible liquidity shortage.

"If an economy runs short of liquidity, it can ask for liquidity support. Under the agreement, if I and Pak Boed (central bank governor Boediono) suffer a liquidity shortage, Japan has agreed to give the $6 billion in BSA," Mulyani said.

Separately, Boediono said Indonesia would receive $2 billion this month in program loans from the World Bank.

Analysts say Indonesia's economy has strong domestic demand and a relatively less open economy that will help it weather the global slowdown, but warn that external funding pressures remain a challenge.

Bank Indonesia's supervision of banks comes under fire

Jakarta Post - December 4, 2008

Aditya Suharmoko, Jakarta – Following the Bank Century trouble, the central bank is under pressure to improve its supervision amid the global financial downturn to prevent troubled banks from disrupting the country's financial sector, legislators warn.

"Global crises impact Indonesia. Bank Indonesia needs to restructure its banking supervision, which is its weakest point," Dradjad H. Wibowo, a member of the House of Representatives' Commission XI, which oversees financial affairs, said Wednesday.

Last week, the National Police detained Robert Tantular, a key shareholder in ailing Century, for allegedly asking the lender's management to breach existing bank regulations. That request led to the mess the bank is currently embroiled in.

The government, via the Deposit Insurance Corporation (LPS), then took over the lender and injected Rp 2.5 trillion (US$208.6 million) to keep it afloat, after the bank's capital adequacy ratio (CAR) plunged to negative 2.3 percent in early November, from about 18 percent in September. A bank's CAR determines how healthy it is financially.

Century was formed in late 2004 through the merger of Bank CIC, Bank Danpac and Bank Pikko. "Before the merger, I insisted CIC be liquidated, considering its poor track record. But BI gave it room to breathe, resulting in the mess," Dradjad said.

He said BI, with its exemplary human resources, should take a strict line on banks and enforce heavy sanctions to prevent such incidents from happening again.

"If it continues, people may think Erick (Jazier Ardiansjah) is a hero rather than a rumormonger, because what he said turned out to be true." Erick, a Bahana Securities trader, was recently arrested for spreading an email about a deposit run on five banks – Bank Panin, Bank Bukopin, Bank Artha Graha, Bank Victoria and Century.

Fellow Commission XI member Rizal Djalil said BI should record each bank's ownership structure and money distribution, to gain a clearer picture of the banking sector condition.

The legislators were speaking at a hearing with the Finance Ministry and BI on the issuance of three regulations in lieu of the law on the LPS, BI and the financial system safety net (JPSK).

The government needs House approval for the regulations within three months of their issuance last October, to give them proper legal standing.

The regulations are seen as crucial in preventing a crisis in Indonesia's financial sector, by allowing the government and BI to take immediate action against a possible crisis that could cause systemic threats to the financial sector, Finance Minister Sri Mulyani Indrawati said.

"The JPSK is about (preventing) a systemic threat to the banking system. Without the JPSK, BI may be doubtful of providing a short-term financing facility or an emergency financing facility," she said.

However, several legislators raised concerns that the regulation could be misused, saying it would grant BI greater authority and hence create a possible repeat of the BI liquidity support abuses from the 1997-1998 crisis.

Indonesian rupiah set to fall 10% in three months, Goldman says

Bloomberg - December 3, 2008

Lilian Karunungan – The Indonesian rupiah will tumble 10 percent to its lowest level since 1998 in three months as the global financial slump spurs investors to sell more of the nation's assets, according to Goldman Sachs Group Inc.

The rupiah has declined 24 percent since the start of September, Asia's worst-performing currency, while funds overseas cut holdings of Indonesian bonds. Slowing growth and falling demand for commodity exports will send the rupiah lower though the decline won't be as severe as during the Asian economic crisis a decade ago, wrote Hong Kong-based economist Enoch Fung in a report.

"We believe the weakening growth outlook and the continuation of de-leveraging due to global risk aversion will likely further pressure the Indonesian rupiah," said Fung at Goldman Sachs, Wall Street's most profitable firm.

The rupiah traded at 12,075 per dollar as of 2:35 p.m. in Jakarta, according to data compiled by Bloomberg. It will drop to 13,500 in three months, Fung said.

Indonesia's currency reached 13,150 on Nov. 21, the weakest since August 1998, when the rupiah lost 32 percent that year to a record low of 16,950.

The $433 billion economy, South-east Asia's largest, expanded 6.1 percent in the three months through September, the slowest pace in six quarters, a government report showed on Nov. 17. Goldman Sachs revised its 2009 growth forecast to 3 percent from 3.5 percent, less than the Indonesian government's expectation of 4.5 percent. Forward Contracts

Indonesia is the world's biggest producer of palm oil and the second-largest maker of rubber.

"We do not believe weakness in the rupiah will take Indonesia back to the vicious cycle seen in 1998," Fung wrote. 'Corporate balance sheets and the financial system's exposure to foreign- exchange risks are healthier this time around.'

Non-deliverable forwards contracts show traders are betting the rupiah will weaken to 12,968 in three months. Forwards are agreements in which assets are bought and sold at current prices for delivery at a later specified time and date.

The weakness in the rupiah will deter Bank Indonesia from reducing its benchmark interest rate too early to stimulate growth, according to the report.

The central bank raised borrowing costs six times this year to 9.5 percent to quell inflation. Policy makers will maintain the rate for a second month tomorrow, according to the median estimate of economists in a Bloomberg News survey.

'Capital flight'

"Given its small current-account surplus, it faces risks of capital flight and currency vulnerability if it were to embark on an aggressive rate-cutting cycle too early," Fung said. He expects the central bank to lower the policy rate by 100 basis points by the middle of 2009.

The nation's currency reserves dropped to $50.58 billion in October from $57.11 billion in late September as Bank Indonesia sold foreign exchange to help stem declines in the rupiah. The latest data are due this week.

Central banks intervene in currency markets by arranging purchases or sales of foreign exchange.

Foreign ownership of bonds slumped 19 percent to 86.42 trillion rupiah ($7.1 billion) in November from a peak of 106.66 trillion rupiah in August, data on the finance ministry's Web site showed.

The Jakarta Composite Index of stocks has dropped 56 percent in 2008, headed for its biggest annual loss since at least 1984. Still, investors have bought more of the nation's shares than they sold this year.

"We see the selling of rupiah-denominated assets by foreigners as the dominant driver behind the currency weakness," Fung said.

Exports fall as global slowdown begins to hit economy

Jakarta Post - December 2, 2008

Aditya Suharmoko, Jakarta – Confirming that the impact of the global economic slide has hit the country, exports in October dropped from a month earlier on weaker demand and lower prices, the Central Statistics Agency (BPS) reported Monday.

Indonesia's exports of oil and gas products slumped by 25.72 percent, from US$2.43 billion in September to $1.81 billion in October, while exports of non-oil and gas products dropped by 8.1 percent, from $9.79 billion to $9 billion.

"Non-oil and gas exports (in October) had quite a significant drop, with the biggest drop suffered by rubber products," BPS chairman Rusman Heriawan said at a press conference.

October's exports rose 4.92 percent from a year earlier, but still far lower than the 28.53 percent year-on-year growth booked in September. "Based on BPS data, the decline in exports occurred because of the drop in demand volume and the declining prices of resource-based products," Rusman said.

All of Indonesia's main export commodities – coal, chocolate, palm oil, copra, rubber, copper and tin – suffered significant declines.

"Exports to China as well as the United States dropped sharply, while (exports to) Japan remained stable. But because Japan has declared it is in recession, exports (to the country) may drop in November or December," Rusman said.

As the world heads toward recession, importing countries are reducing their demand, causing trade-dependent countries to suffer. The United States, the world's largest importer, has begun cutting back on imported goods.

"It was a confirmation that global demand has weakened," said Purbaya Yudhi Sadewa, chief researcher at Danareksa Research Institute. "If (the slowdown) continues and imports do not decrease, the balance of payments may not look so good; it may be a deficit," he said.

However, he went on, imports would likely decline as well, with businesses anticipating a slowdown in demand from foreign countries. Most exporters in Indonesia import much of the raw materials for their products.

Imports in October reached $10.61 billion, a 5.3 percent drop from September. Only imports of capital goods rose, while imports of raw materials and consumer goods declined, a sign businesses were preparing for 2009 gloomy economic outlook, Rusman said. "Capital goods are used to stimulate the domestic economy – a good sign," Purbaya said.

Almost 18 percent of imports in October were machinery. Total imports were dominated by China, with 15.30 percent, followed by Japan and Singapore with 14.43 and 11.29 percent respectively.

Despite the drop in exports and imports, Purbaya was optimistic Indonesia's economy could grow by 5.9 percent in 2009, with domestic demand to remain strong.

Top global research and advisory firm, the Economist Intelligence Unit, recently predicted 3.7 percent growth for Indonesia, while Swiss-based financial firm UBS projected 2.5 percent growth.

Informal sector helping Indonesia cope in global downturn

Jakarta Post - December 2, 2008

Abdul Khalik, Jakarta – Syafrudin, 35, stacked cages of chickens onto a waiting mini van outside his employer's house at Kemandoran in South Jakarta on Monday with help from two other workers.

For those in the poultry businesses – with warnings about avian flu scarce and demand for chicken rocketing ahead of the Christmas and New Year holidays – the threat of the global financial crisis seems as far off as the countries that provoked it.

"The business is good. It means we will receive more payment," said Syafrudin, who earns up to Rp 1 million per month.

The poultry business is forecast to survive the economic crisis, as the price of chicken is expected to remain affordable compared to that of fish and red meat.

Syafrudin and his co-workers are among 60 million people employed in the informal sector, compared to the country's total work force of 97 million.

"Given the fact that over 60 percent of the country's employment is provided by the informal sector, we can imagine how much it has contributed to the economy," Hetifah Sjaifudian Sumarto, director of the Bandung Trust Advisory Group for Local Governance Reform, told an academic forum.

Hetifah was one of a number of researchers who Monday presented researches on public exposure as part of a program funded by the Australian government under the Australia-Indonesia Governance Research Partnership.

"With massive layoffs predicted to increase the country's jobless by 2 million next year, the informal sector could provide earnings for most of them; allowing them to survive while decreasing the risks of political and social instability," she said.

Despite its pivotal role in the economy, as evidenced during the Asia financial crisis in 1998, the informal sector has remained largely neglected by the government, Hetifah said.

The government has no policy to address the problems within the sector or protect the people it employs, she added.

Hetifah found in her research on street vendors in Surakarta and Manado that local government support for the vendors helped boost their profits, created more jobs and contributed more to regional revenue. "Surakarta has formed a special office dealing with street vendors and has allocated a budget to provide loans and infrastructure, including markets," she said.

Surakarta Mayor Joko Widodo has relocated more than 1,000 street vendors without resorting to the violence that other city administrations have resorted to.

"Our research suggests that the government must introduce a special policy at the national level to deal with the informal sector in anticipation of the looming massive lay-offs next year. Surakarta has shown the way," she said.

Analysis & opinion

Clinton's Indonesian ties may face scrutiny

Reuters - December 4, 2008

Sara Webb, Jakarta – Hillary Clinton's nomination as US secretary of state could prove tricky for Indonesia, a key ally in Southeast Asia in the US-led war on terror, because of a past funding scandal and her stance on trade and human rights.

Indonesia welcomed Barack Obama's presidential election victory, as he spent part of his childhood in Jakarta, and many Indonesians hope he will forge closer ties with Southeast Asia's largest democracy and biggest economy.

The Clintons also have a connection – through Indonesian businessman James Riady, whose family has substantial interests in real estate, retailing, and media in Asia. In 2001, Riady paid a record $8.6 million in fines in the United States for making illegal campaign contributions to former president Bill Clinton in the 1990s.

Now the Clinton-Riady relationship could come under scrutiny again, the question being whether it's an advantage or an encumbrance for either side. The relationship "has always been toxic for US-Indonesian relations and requires the utmost vigilance on both sides of the Pacific now that Hillary Clinton is slated to become the next Secretary of State," said Jeffrey Winters, professor of political economy at Northwestern University, Chicago, in an email.

"The fact that the Riadys were involved in a corruption scandal in the US involving the Clintons is unimportant compared to the leverage the Clinton connection gives the Riadys in Jakarta business and government circles. To avoid a devastating scandal, Barack Obama should place the Riadys high on the Clinton Watch List of sordid relationships and potential political land mines."

Riady did not reply to e-mailed questions on the relationship. "Clearly, both Indonesian and US business interests will be exploring every potential point of leverage to gain advantage in trade and investment dealings, both at the policy level and privately," said Richard Robison, emeritus professor at Murdoch University, Perth.

CIA control

US-Indonesian relations have oscillated over the years. Indonesia recently said it wanted to ban the book "Legacy of Ashes: The history of the CIA" by Tim Weiner because it alleges that Adam Malik, who later became Indonesia's vice president, had been controlled by the CIA in the 1960s.

The United States was increasingly alarmed by former president Sukarno's pro-communist stance at that time. In 1965, general Suharto seized power in a coup, followed by an anti-communist purge in which as many as 500,000 people died.

The United States supported Suharto for more than three decades. It gave him the green light to invade East Timor in 1975, and largely turned a blind eye to his regime's human rights abuses.

With the fall of Suharto in 1998 and subsequent reforms, Indonesia's democratic and human rights image has improved.

And as the security threat in the region increased due to militant Muslim group Jemaah Islamiah's bomb attacks, Indonesia and the United States strengthened security and defense ties – even though President George W. Bush was particularly unpopular in the world's most-populous Muslim country because of his Middle East policy and invasion of Iraq.

Hillary Clinton, who has taken a tough line on human rights in China, might put pressure on Indonesia to improve its handling of Papua province, the Indonesia half of New Guinea island, where the separatist Free Papua Movement has waged a low-level rebellion against Indonesian rule for several decades.

Some business leaders and academics warn the Democrats are likely to be more "intrusive" on domestic issues, and on the trade front would take a tough line on market protectionism and the use of non-tariff barriers.

"An Obama administration might well take a harder line view toward Indonesia than expected," said one US-educated Indonesian businessman, who asked not to be quoted by name. (Editing by Ed Davies and Bill Tarrant)

Obama: Stand up to the Indonesian military

Foreign Policy In Focus - December 4, 2008

John M. Miller – According to some pundits, US reengagement with the largely unreformed and unrepentant Indonesian military is the best way to promote reform and human rights. The Wall Street Journal Asia, for instance, called on President-elect Barack Obama "to stand down liberal senators and interest groups" for seeking conditions on military assistance to Indonesia. "Indonesia's military has certainly had human rights problems in the past," the editorial states, but urges the incoming administration to forget about them in the name of building an alliance on the "global war on terror."

The Obama administration and incoming 111th Congress should indeed change course on Indonesia. It should put human rights at the forefront of US policy. This would contribute more to encouraging democratic reform and human rights accountability in the world's largest Muslim-majority country than any amount of military training or weapons. Indonesians who view the military as a chief roadblock to greater reform will be grateful.

History Lessons

In 1965, when US-Indonesia ties were the closest, General Suharto seized power and, according to scholars, the Indonesian government killed up to one million people in the coup's aftermath. Earlier, Indonesia took over West Papua in 1963, leaving up to 100,000 dead. In 1975, with explicit US support, Indonesia invaded East Timor, resulting in another 100,000- 200,000 dead. Some 90% of the weapons used in the invasion and subsequent occupation came from the United States. These are the lessons the Indonesian military learned from unfettered US military assistance.

The only period of significant reform came when the United States actually suspended much assistance during the 1990s. Chief among the changes were the end of the Suharto dictatorship in 1998. After he was driven from office, East Timor became independent (the Indonesian military's destructive exit from the country led for a time to a full cutoff of all military assistance). In the late 1990s, the military gave up a few prerogatives, including its seats in parliament. But since the United States began incrementally to reinstate military assistance in 2002, the reform process has stalled.

By 2005, the Bush administration reinstated nearly all military assistance and has since sought further expanded ties through training of the Kopassus, the notorious special forces unit responsible for some of the worst human rights violations in East Timor, West Papua, Aceh, and elsewhere. Senators Patrick Leahy (D-VT) and Russ Feingold (D-WI) have opposed lifting this final hurdle to unrestricted military engagement. They have called for following existing law barring training of military units with histories of human rights crimes where those responsible have not been brought to justice. If that provision has any meaning, it must apply to the Kopassus.

Reengagement has failed to end the widespread impunity enjoyed by Indonesia's security forces for crimes against humanity and other serious violations committed in East Timor and Indonesia. Rather, reengagement has emboldened the military's continued resistance to civilian control and persistent emphasis on internal security. The Indonesian military continues to resist attempts to dismantle its "territorial command" system, which allows it to exert influence over politics, commerce, and justice down to the village level. Finally, efforts to implement a law ending the military's involvement in business have degenerated into farce, and it remains involved in a variety of illegal enterprises, including logging and narcotics trade.

Several retired generals responsible for some of the worst atrocities in East Timor are serious candidates for president in next year's elections. General Wiranto is perhaps the best known after coming in third in the 2004 presidential campaign. A UN- sponsored court in East Timor indicted Wiranto for crimes against humanity for his role as top commander of the military during the bloodletting of 1999. Former Kopassus commander (and Suharto son-in-law) Prabowo Subianto is another credible presidential candidate. A third potential candidate, Lt. General Sutiyoso, was a member of a unit that, according to an Australian coroner's report, murdered five foreign journalists after they crossed the Timorese border a few months prior to Indonesia's full-scale invasion.

Current abuses

Human rights violations are not just a matter of history. In West Papua, with Indonesian military protection, the US-based Freeport Mining Company has destroyed the environment, livelihoods, and culture of the local people while making billions off the largest goldmine in the world. Just this year, the Indonesian government punished the protests of Papuan people demanding self-determination and greater voice with harsh reprisals, including long prison terms, torture, and the death of at least one bystander.

In May 2007, Indonesian marines killed four civilians and wounded eight in a land dispute between villagers and the Indonesian navy in Pasuruan, East Java. According to The International Herald Tribune, "The marines were tried by a military tribunal but ultimately sentenced to just 18 months in prison. The marine station's relationship with the plantation company was never investigated, nor were any of the station's officers. The land dispute remains unresolved."

As in the past, the current US administration downplays these and other human rights violations, while celebrating its reinvigorated institutional partnership with Indonesia's security forces. Military assistance flowing to Indonesia has yet to reach the levels of the Suharto years. The United States has funded coastal radars, supplied spare parts, and urged the Indonesians to prepare a military wish list. Earlier this year, the Indonesian Air Force sought F-16 fighters and C-130 Hercules transport planes. For 2008, foreign military finance funding jumped to $15.7 million from only one million dollars two years earlier. For now, an Indonesian budget crunch and a lingering wariness bred of past restrictions on assistance have limited Indonesia's willingness to buy substantial stocks of new weapons.

Meanwhile, the number of Indonesian students in the International Military Education and Training (IMET) program is increasing. IMET was the first military assistance program that Congress restricted in the early 1990s. Indonesia was a major beneficiary of the Regional Defense Counterterrorism Fellowship Program, created soon after the September 11 attacks to circumvent the IMET ban on Indonesia and other countries. Joint military exercises have covered counterinsurgency and counterterrorism, among other topics. However, the Indonesian police, not the military, tracked down and arrested those responsible for a series of bombings in Bali and Jakarta in 2002 and 2003. The Indonesian military tolerates and, more ominously, continues to back militias and vigilante groups that intimidate civilians, particularly those in ethnic, religious, and political minorities.

Ultimately, the size of the military assistance package may not matter. The United States had restricted aid as a means to build pressure for human rights accountability and reform. Now that Indonesia is eligible for unrestricted aid, its military can assume those issues no longer matter to their once and future patron.

A new era with Obama?

President-elect Obama has described US engagement in Indonesia, where he lived as a child, as less than positive. In The Audacity of Hope, Obama writes that "for the past sixty years the fate of [Indonesia] has been directly tied to US foreign policy." This policy included "the tolerance and occasional encouragement of tyranny, corruption, and environmental degradation when it served our interests." In his earlier book Dreams from My Father, Obama writes of Suharto's bloody seizure of power: "The death toll was anybody's guess: a few hundred thousand, maybe, half a million. Even the smart guys at the [CIA] had lost count."

Based on these early positions, Obama is quite conscious of the problems with the Indonesian military. While in the Senate, he rarely spoke about these issues.

Indonesian advocates have called on Obama and Congress to pressure Indonesia's government to respect human rights. Rafendi Djamin, coordinator of the Human Rights Watch Working Group, acknowledged the US's past "huge role in pushing for rights advocacy in Indonesia, I have seen that during the Bush administration, the US Congress is still concerned with Indonesia's democratization and human rights advocacy, but Bush has rarely given a direct warning of the importance of human rights advocacy."

Djamin said in the Jakarta Post, "We are now expecting Obama to put more pressure on Indonesia to resolve unfinished human rights cases by directly questioning the government about them and by addressing their importance." Another advocate said that "if Indonesia does not respond positively to US pressure, the US would reinstate its military embargo against us."

East Timor's official Commission for Reception, Truth and Reconciliation, after examining in detail the impact of Indonesian occupation and destructive withdrawal on the East Timorese, called on countries to make military assistance to Indonesia "totally conditional on progress towards full democratisation, the subordination of the military to the rule of law and civilian government, and strict adherence with international human rights." President Obama and the next Congress should follow that recommendation.

[John M. Miller is the national coordinator of the East Timor and Indonesia Action Network and a contributor to Foreign Policy In Focus.]

PKS shifts to the center?

Jakarta Post - December 5, 2008

Aleksius Jemadu, Bandung – The spectacular rise in votes won by the Prosperous Justice Party (PKS) in national elections, from 1.36 percent of the total national popular vote in 1999 to 7.34 percent in 2004, has led many to believe that the party will prove a serious contender to the Golkar Party and the Indonesian Democratic Party of Struggle (PDIP) in 2009.

Compared to other political parties, the PKS is relatively clean and free from internal conflict. On top of this, the PKS is poised to mobilize and garner the vote of thousands of highly dedicated university students in 2009.

PKS leaders seem to realize that, if the party wished to win, it must change its image from one of Islamic sectarianism to something more pluralistic. This is because the growing self- confidence of the party has motivated it to cast its net beyond its traditional constituencies – there is even a plan to reach out to non-Muslim voters.

From the success of the Golkar Party and the PDIP, the PKS has learned that the concentration of Indonesian voters is in the middle of the political continuum – the majority of voters are neither left secular nor far right religious ideologues, but lie somewhere in between. Thus, what the PKS is trying to do is move from the far right to center right.

Indonesia's two largest Islamic mass organizations, Muhammadiyah and Nahdlatul Ulama (NU) recently protested against the PKS, because the party used the names of their founders, Ahmad Dahlan and Hasyim Asyari respectively, in its television ads. The PKS's portrayal of Soeharto as a national hero has also attracted controversy.

The use of the names of these religious and nationalist leaders is not without political calculation. As the most dynamic Islamic party, the PKS wants to convince the Indonesian people that it would be best positioned to unite religious and nationalist political forces.

According to critics, the PKS's main goal is not so much to idolize these leaders as it is to portray itself as the unifying force and peace maker at a time when Indonesians are divided due to unresolved past conflicts.

It is too early to say whether or not the PKS has been successful in changing its image. However, if the party indeed wants to look more moderate and inclusive, there are at least three important things that need to be considered.

First, the PKS has to be committed to the principle of democratic citizenship, this means endorsing political equality among Indonesian citizens, regardless of individual ethnic, religious or cultural backgrounds. When the PKS appeared to be the most tenacious vanguard of the porn bill, those who rejected the bill began to doubt its commitment to political pluralism.

Second, it is not yet clear how serious the PKS is in categorically rejecting the use of violence by some religious radical groups. For instance, we didn't hear the PKS vocally defending the religious rights of the followers of Ahmadiyah when they were intimidated and their houses of worship were destroyed and burned. Passivity on this issue would be neglectful and could be seen as a sign of impartiality to the importance of the primacy of civility in Indonesian politics.

Last but not least, if the PKS aspires to be viewed as an inclusive and moderate party, it has to be ready to play a substantive role as the backbone of the compatibility between Islam and democracy in Indonesia. That way the PKS will not only attract the sympathy of the majority of Indonesian people, but the support of the international community. Otherwise, all its efforts to build a new image will be seen as no more than a game of political charades.

[The writer is a professor it the Department of International Relations at the Parahyangan Catholic University (UNPAR), Bandung.]

Hope fades for keeping economic pain at bay

Jakarta Post - December 1, 2008

Winarno Zain, Jakarta – As the world economic outlook worsens dramatically, the Indonesian economy will be heading into a dangerous zone next year. It is clear now that the full impacts of the global economic meltdown will be felt here next year. All signs indicate the economy is decelerating rapidly. But the scary thing is that the resources at the government's disposal to fight the impacts of the economic crisis are so limited.

Bank Indonesia (BI), the central bank, has not been able to mount an effective policy response so far, because they are facing dilemmatic situations. Instead of supporting growth, BI is still mired in the fight against inflation, the depreciation of the rupiah and lately rescuing a failed bank – Century.

BI is one of the central banks in the region that has not cut interest rates in the face of slowing economic growth. The expectation is that a steep decline in commodity prices would bring down inflation. But the coming holiday season at the end of the year will put upward pressure on prices in general. On the other hand, the precipitous fall of the rupiah would push import prices up. Under these circumstances, loosening monetary policy could risk undermining our macroeconomic fundamentals.

The economy is facing a credit crunch resulting from the current tight monetary policies of BI. Banks are not lending even at higher interest rates for fear of loans turning sour in the weakening economy. Nonperforming loans could increase next year, undermining banks' profitability and capital ratios. The risk of bank failures will also increase. But the more serious risk is that the real economy could grind to a halt.

Given the dire consequences of a prolonged credit crunch, BI should come up with bolder measures in terms of restoring confidence and liquidity in the banking system. As the name of the game is now confidence and liquidity, BI should consider expanding bank deposits and loan guarantees to help Indonesian banks compete for depositors with fund banks in other countries that provide unlimited guarantees.

BI's efforts to bolster the rupiah have turned out to be a losing battle. As global liquidity tightens, the foreign exchange market faces increased volatility with the rupiah continuing to depreciate against the US dollar. Investors are pulling back from the Indonesian market at a time when the trade surplus is shrinking, and capital inflows both of foreign investment and loans are slowing to a trickle.

The severe imbalance between supply and demand has pushed the US dollar-rupiah rate to record highs since 1998. As BI tries to intervene in the market to ease volatility, foreign exchange reserves are coming under pressure.

As long as there is a severe imbalance between supply and demand in foreign currencies, especially the US dollar, BI intervention will require enormous amounts of reserves, which may not be adequately supplied using BI's own money. In one month, BI already spent US$10 billion of its $60 billion reserve on market intervention. But so far the intervention has had little impact in stemming the slide of the rupiah against the US dollar.

The problem is that BI can not carry out intervention in the market on a sustained basis, since this could pose serious risks. Sustained intervention could produce a backlash, because the market could lose confidence in the credibility of the central bank. Intervention in foreign exchange markets should be limited.

The purpose of intervention is not to restore equilibrium between supply and demand of foreign exchange, as that task should be left to the market. Intervention is warranted to smooth excess exchange rate volatility and to address possible overshooting.

However, it is necessary for the government to establish some lines of defense against the possibility of reserves drying up. As capital inflows and exports are not likely return to pre- crisis levels for some time to come, it is imperative the government starts negotiating for external funding from various institutions.

It is also doubtful that such institutions would have enough funds if several countries seek loans at the same time. Even the IMF itself (despite some additional funding commitments from developed countries) is not quite sure whether its funds will be enough to meet additional requests for emergency loan facilities from its member countries, should the requests come at the same time.

The government should also look into the possibility of using foreign exchange swaps among ASEAN+3 countries as agreed under the Chiang Mai Initiative. It is important for ASEAN countries to push these swap mechanisms into place before the economic storm hits the region harder.

It is also important for the government to immediately design and implement fiscal stimulus to inject liquidity and revive demand in the economy. Even here, the government would face enormous constraints. Sharply tighter credit conditions and weaker economic growth would cut into the government's revenue and its ability to invest in health, education and other projects to alleviate poverty.

Given the limited funds available for fiscal stimulus, the challenge for the government is to finance high quality projects that have the greatest impact in terms of generating demand and employment, and fending off the poor from further pains. The other challenge would be to overcome bureaucratic obstacles that could slow down the fiscal stimulus. Experience shows us that this is extremely difficult.

Unfortunately, the government will face a general election next year, and the national attention will shift toward political campaigns. As the fight against the economic crisis would get relegated to a lower priority, the question is who will care about the plight of the unemployed and the poor?

[The writer is an economic analyst.]