Denpasar – Bali Police chief Insp. Gen. Ashikin Husein has urged tourists to wear suitable clothing when riding motorcycles or when not on the beaches to avoid violating social ethics.

"In Hawaii they bar tourists from being bare-chested in front of hotels and buildings except those on the beach. Here, we are glorifying tourism too much," he said on the sidelines of the visit by members of the Commission I of the House of Representatives.

He said people became afraid to touch tourism-related issues especially after the island's economy got hit by two bombings in 2002 and 2005.

Denpasar Police chief Sr. Comr. Alit Widana said the tourism and transport police had been monitoring the presence of bare-chested and bikini-clad tourists on the roads outside the beach areas for the past four months.

Indonesia upgraded to 'free' country by US agency

Jakarta Post - January 14, 2009

Ary Hermawan, Jakarta – Indonesia, which became Southeast Asia's largest democracy when President Soeharto was ousted in 1998, maintained its status as a free country in 2008, according to a report released by a US-based international rights agency.

Freedom House, which measures civil and political freedom in each country to determine whether the world has become more democratic, painted Indonesia green on its 2009 edition of the Map of Freedom, released Tuesday. The color indicates that Indonesia is listed among "free" countries.

The agency upgraded the status of the world' most populous Muslim majority nation fromto "free" in its 2006 report, due in large part to the previous elections, which were generally considered successful. Malaysia, Singapore, Thailand and the Philippines are still listed as only "partly-free," making Indonesia the only free country in Southeast Asia.

The agency has published the overview of the report on its website but has not yet added details to each country and thus the explanation for why Indonesia successfully maintained its position is not yet available. As of now it is unknown whether Indonesia's press freedom, which was marked yellow or "partly free" last year, has improved.

Indonesian rights activist Poengky Indarti, from Imparsial, questioned the Fredom House's conclusion, saying that the country suffered significant setbacks last year. "We did not see freedom in 2008," she said, citing a number of cases where journalists, authors and anti-graft activists were arrested for defamation.

She added that in addition to the controversial pornography bill passed last year, the government was still deliberating on a number of bills, such as the state secrecy bill and the public information bill, which are considered inimical to freedom.

Meanwhile, Reuters reported from Taipei, where the report was released, that political freedoms in general declined around the world for a third straight year in 2008. Russia and Greece were marked down because of political incidents and Iraq and Malaysia went up because of increased pluralism. The increased momentum of Malaysia's opposition in national elections was also cited.

Russia, docked for elections that were described as, "neither free nor fair," and neighboring Russian-influenced countries that stifled dissent following peaceful anti-authoritarian revolutions, led the downward trend, Freedom House said.

Greece's position sank because of nation-wide riots in December and the government's "inability" to control them, the group said.

But Iraq, despite years of turmoil following a US-led war, moved up the chart because of security improvements and the increased participation of Sunni Muslims in national politics.

Freedom House presented the report in Taipei because it sees Taiwan as a free area in Asia where it wants to make an impact, its local organizer said.

The world's 89 "free" countries or regions outnumbered the 42 listed as last year, but political rights and civil liberties declined overall largely because governments worldwide mimicked European anti-authoritarian "color revolutions" that reversed course and squelched democracy, Freedom House said.

"Although setbacks in 2008 did not represent substantial declines for most countries, they were numerous and affected most regions," the group's statement said, citing 34 declines and 14 improvements.

The financial crisis threatens political rights and liberties this year in places without "democratic institutions" and "safety valves" to ease any ensuing conflicts, said Freedom House's Christopher Walker.

Firewood replaces kerosene as alternative means of cooking

Jakarta Post - January 14, 2009

Agus Maryono, Purwokerto – Karmin, 40, seems happy as he chops dried bamboo poles which he later sells as firewood. Several of his assistants arrange and bind the chopped bamboo for sale.

His house is now filled with firewood due to the high demand, which according to him has surged up to 400 percent compared to previously. "Demand for firewood has been increasing rapidly over the past month likely due to kerosene scarcity, so many people have turned to firewood," Karmin told The Jakarta Post recently.

Karmin is one of the residents who is experiencing a sudden windfall from selling firewood at a time when hundreds of thousands, if not millions of people are facing difficulty in obtaining their supply of kerosene for cooking. Karmin lives in Dukuh Waluh village, Kembaran district in Banyumas regency, Central Java. Like Karmin, there are not many people selling firewood in Banyumas, probably around two people in each village.

He has been selling firewood for quite a long time now, but according to him, he has never been so occupied with the activity than over the past few days due to soaring demands.

"Business was usual before, even at times there were no buyers. But now my stock is often sold out. Stocks would often last for just two days," said Karmin.

According to him, he could sell 100 bundles of firewood each day now, each for Rp 2,000 (18 US cents). He also sells firewood in cubic amount. "I sell a cubic meter of firewood for Rp 40,000, and can sell up to three cubic meters, or equivalent to 25 bundles, per day," said Karmin.

Karmin, who usually works alone during normal condition, is now assisted by four of his friends in running the firewood business thanks to surging demands. Two of them are tasked to look for firewood in the villages, while the two others help him at home chopping, arranging and binding the firewood. He pays each of them Rp 20,000 daily.

"Bamboo is most sought after by customers because it more flammable and the heat is more intense," said Karmin. He added his assistants usually look for dried bamboo up to the fringes of the village, especially when villager replace their rotten roof frames.

"I will buy any amount offered to me now because they would certainly be sold out in a jiffy," said Karmin. usually buy the whole bamboo roof frames between Rp 50,000 to Rp 60,000, depending on the condition," said Karmin, adding the amount of an entire roof frame is equivalent to 2 cubic meters, or a 100 percent profit.

He also buys timber remnants from sawmills, which he says are easier to find given the number of sawmills in Banyumas. "The price is also not much different from dried bamboo. Each bundle is sold at Rp 2,000," he said.

A resident in Karangsoka, Banyumas, Tarno, 26, said he bought firewood almost every other three days. "What else can I do? Kerosene is scarce, so I have to opt for firewood," said Tarno, adding firewood is more economical compared to kerosene.

"The price of a liter of kerosene is over Rp 5,000. It could last for two days of cooking at most, but two bundles of firewood could last for up to four days," said Tarno. However, he said the price of firewood had increased now from Rp 1,500 a bundle to Rp 2,000.

250,000-strong solidarity forum for Palestine in Jakarta

Jakarta Post - January 11, 2009

Jakarta – Around 250,000 supporters from the Prosperous Justice Party (PKS) joined religious leaders in a solidarity forum at the National Monument (Monas) in Central Jakarta on Sunday morning to condemn Israel's attacks on Palestine.

Among the leaders attending the forum were representatives from Hindu, Buddhist, Christian and Konghucu sects, kompas.com reported Sunday.

During the rally some figures – including the chair of the People's Consultative Assembly (MPR) Hidayat Nur Wahid and Azazah, chair of the Jakarta Forum Majelis Taklim, an Islamic study group – made speeches and expressed their opposition to the conflict.

"We urge an immediate halt to the military incursion. We oppose any kind of violence because we love peace," said Edi Kuswara from Suara Tionghoa (Chinese Voice) during his address.

During the peaceful action, participants collected donations for victims by distributing boxes so the public could contribute. After the forum, they are set to march to the Hotel Indonesia traffic circle. (ewd)

Government defends naming ex-economic minister a suspect

Jakarta Post - January 10, 2009

Yuli Tri Suwarni, Bandung, Jakarta – The National Police and the office of President Susilo Bambang Yudhoyono insist presidential candidate Rizal Ramli was named a suspect in a protest case in accordance with the law, dismissing suggestions it was a political move.

National Police chief Gen. Bambang Hendarso Danuri said Friday in Bandung that investigators had ample legal evidence to name Rizal as a suspect for masterminding an antigovernment demonstration in June last year that resulted in riots and clashes with the police.

"The investigation process was very clear. After interrogating Ferry Juliantono as a suspect in the case, we concluded that there had to be an accomplice. There was no political motive behind the case," he said.

Bambang said Rizal defied a summon Thursday from police to face questioning over any involvement in the riot. "We hope he will respond to our second summoning next week," he said.

National Police director for national security and transnational crimes Brig. Gen. Badrodin Haiti said Rizal's lawyer had informed police his client would not comply with the summon.

"We will prove that he was involved. We hope he will come here next Thursday. If he defies the second summon, we will have see what further action can be taken," he said.

Presidential spokesman Andi Mallarangeng said in Jakarta that naming Rizal a suspect was a purely legal matter and had nothing to do with the upcoming presidential elections. "What for? Look at the President's rising popularity. It has been throughout his term that Indonesian authorities have really upheld the law," he said.

Rizal, who has been campaigning in Bengkulu since Thursday, has accused Yudhoyono of being behind the arrest of his close aide Ferry and for naming him a suspect.

He has maintained his innocence, saying the accusations were being used as a means to stop him running for the presidency.

Late Friday, around 30 of Rizal's supporters staged a rally in front of his house on Jl. Panglima Polim in Menteng, Central Jakarta, to express their ongoing support for him. "Rizal Ramli has been arrested, SBY-JK (Vice President Jusuf Kalla) are antidemocracy," they chanted.

Rizal also received support from other politicians to challenge his arrest. Fadjroel Rachman, another presidential candidate, said Rizal must fight Yudhoyono's move.

"Rizal is a victim of Yudhoyono's antidemocratic policies. This is a New-Order type attempt to silence political enemies. I support Rizal's fight against such antidemocratic attitudes," he said.

Actions, demos, protests...

Commemorating Malari, students demand repudiation of foreign debt

Detik.com - January 15, 2009

Chazizah Gusnita, Jakarta – Thirty-four years after the Malari affair – short for The January 15 Disaster – a student actions opposing foreign capital, particularly Japanese capital on January 15, 2974, demands for the foreign debt to be written off are now being articulated again.

The action will be held by some 100 buskers, students and workers at the State Palace on Jl. Medan Merdeka Utara in Central Jakarta on Tuesday January 15. The protesters plan to gather at the Horse Statue in front of the Indosat building on Jl. Medan Merdeka Barat at 10am, then move off towards the State Palace.

"We will be demanding that the government immediately write off the foreign debt and develop the national industry for the welfare of the people," said the public relations officer for the action, Vivi Widyawati, when speaking with Detik.com.

According to Vivi however, there is no plan for the action to be continued at the Pertamina Central Hospital (RSPP) where former President Suharto was treated before his death last year. "Not yet. So far it will just be the Palace. But we'll see how things develop on the ground", she said. (ziz/sss)

Notes:

Malari Incident – The January 15 Disaster (Malapetaka 15 Januari) refers to student demonstrations and riots against corruption and the military in Jakarta during the 1974 visit by the Japanese prime minister Kakuei Tanaka. More than 200 students were arrested and many jailed for long terms.

[Translated by James Balowski. There were no follow up reports by Detk.com on the action itself.]

Protesters seal off synagogue amid pro-Palestinian protests

Adnkronos International - January 9, 2009

Jakarta – As Israel's two-week offensive in Gaza continues, massive anti-Israel and anti-US rallies have been taking place across Indonesia. Muslim protesters also sealed off a Jewish synagogue in Surabaya, East Java and have threatened to boycott American products in the province.

On Thursday, a crowd of 500 protesters gathered outside the US Consulate in Jakarta to express their solidarity for the Palestinian people and condemn the Israeli attacks, which have killed an estimated 770 Palestinians, including many children. Fourteen Israelis have died since Israel began its offensive to end Hamas rocket attacks against it from Gaza.

Brandishing anti-Israel and anti-US banners through the main streets in front of the governor's office and crowded shopping centres, protesters in Surabaya moved on the nearby synagogue.

They held a forum there that later ended with the burning of Israeli and American flags and the sealing off of the synagogue.

Rally coordinator Abdusshomad Buchori said the group would organise a massive movement against US citizens, Jews and American products such as Kentucky Fried Chicken and McDonald's fast food outlets in the city until the attacks in Gaza were halted.

"If Israel doesn't stop its attacks on the Palestinian people immediately, we will conduct raids on sympathisers, supporters and Israeli agents in the province," he said.

The rally continued peacefully as more than 300 riot police were deployed to the area.

Following the synagogue closure, the demonstrators then moved on KFC and McDonald's outlets at the nearby Plaza Surabaya, calling for a boycott of the American products.

The demonstrators also demanded the government intensify diplomatic efforts with the UN and the international community to "stop the bloodshed" and get humanitarian relief to the Palestinian people.

The United Nations Security Council late on Thursday passed a resolution calling for an immediate and durable ceasefire in Gaza followed by a complete withdrawal of Israel forces from the aid- dependent territory. The United States abstained from the 14-0 vote, weakening its impact of the resolution.

Indonesian women protest against Israeli strikes

Agence France Presse - January 9, 2009

Jakarta – About 200 Indonesian women protested against Israeli military strikes in the Gaza Strip outside the Egyptian embassy in Jakarta on Friday.

Carrying posters showing wounded and dead Palestinian children, they urged Egypt to open its border with Gaza for the delivery of humanitarian aid.

"As Palestine's closest neighbour, we hope Egypt will open roads so relief supplies can be sent to the victims," said Nani Handayani, of women's welfare group Salimah or Muslim Sisterhood.

"As mothers, we feel sad for the women who lost their children in Palestine... they are in our prayers."

The UN Security Council called Friday for an immediate ceasefire to halt the two-week-old war between Israel and the Palestinian Islamist movement Hamas which has killed almost 800 Palestinians, many of them civilians.

A council resolution also called for the "unimpeded" provision of humanitarian aid to Gaza.

Egypt has partially opened its border for deliveries of foreign aid and for the evacuation of wounded Palestinians, and has asked the International Committee of the Red Cross to open a humanitarian corridor.

Israel announced a plan for a humanitarian corridor for Gaza's aid-dependent population of 1.5 million on Wednesday.

West Papua

Australians jailed in Indonesia over illegal flight

Agence France Presse - January 15, 2009

Merauke – Five Australians were sentenced Thursday to two to three years' jail for illegally landing a light plane in Indonesia's sensitive Papua province, thinking they could get visas on arrival.

Pilot William Scott-Bloxam was given three years while his four passengers received two years and were fined IDR25 million ($2,237) each.

The Australians looked shocked as the verdicts were read out. "I can't believe this," Vera Scott-Bloxam told the court before walking out with her husband, pilot Scott, trying to console her.

A lawyer for the Australians – the Scott-Bloxams, Hubert Hufer, Karen Burke and Keith Ronald Mortimer – described the sentences as harsh and immediately promised to appeal.

The two women and three men were arrested when they made an unannounced landing at Mopah airport in Papua's Merauke district on Sept. 12 after a flight from Horn island, off the northern tip of Australia's Queensland state.

They told police they were on a private sightseeing trip and believed they could obtain visas on arrival, although they weren't even carrying travel documents. They were detained on immigration offenses and held in an immigration detention facility in Merauke.

"The pilot William Scott-Bloxam has been proven legally and convincingly guilty of violating Indonesian transportation law by illegally entering Indonesian territory," Judge Des Benner Sinaga told Merauke district court.

He was fined IDR50 million and the aircraft was seized by the Indonesian government. "The four passengers have been found guilty of immigration offenses and must be jailed two years and each fined IDR25 million," the judge said.

Indonesia imposes tight restrictions on travel to Papua, where a small guerrilla force has been waging a low-level separatist insurgency since the 1960s and the Indonesian military is often accused of rights abuses. Journalists without special permits are barred from the region.

Australians are entitled to visas on arrival in other parts of Indonesia as long as they have valid passports and authorities find no reason to deny them.

Defense lawyer Efrem Fangoihoy said he was surprised at the length of the jail sentences. "I declare here firmly that we will file an appeal against the verdict, which we consider to be too heavy," he said.

Indonesian and Australian officials have said that while their actions were foolish, the five Australians posed no threat to Indonesia.

Defense minister Juwono Sudarsono told reporters after a meeting with his Australian counterpart Joel Fitzgibbon in September that the Australians were "looking for an opportunity to open up tourism."

Fitzgibbon said they had shown "very, very poor judgment" but added: "There isn't any evidence that they were up to what we would describe as any sort of activities that should be a threat to Indonesia."

Indonesia's foreign ministry said Thursday it couldn't comment on the verdict, but encouraged the Australians to appeal if they felt the sentences were unjust.

Five Aussies await sentencing in Papua

Australian Associated Press - January 14, 2009

Five Australians detained for illegally entering Indonesia's Papua province will find out on Thursday if they face extended jail terms.

Merauke District Court will hand down its decision following separate trials for pilot William Scott-Bloxam and his four Queensland passengers.

The group is accused of entering Indonesia illegally, by travelling to Papua on a small plane from Horn Island, off the tip of Queensland's Cape York on September 12.

The Australians have described it as a sightseeing flight and mistakenly believing they could get visas on arrival in Papua.

Indonesian prosecutors have demanded they all be jailed for three years with fines of 30 million rupiah ($4,000) for the pilot, and 20 million rupiah for the passengers.

The group's lawyer Efrem Fangohoy said the Australians were tense ahead of Thursday's verdict.

"For now they are fine, a little bit tense for sure, they must be questioning in their hearts what will happen tomorrow," he told AAP. "They are hoping to go back to Australia as soon as possible so that they can meet with their families."

The passengers – Vera Scott-Bloxam, 54, Hubert Hufer, 57, Karen Burke, 51, and Keith Ronald Mortimer, 60 – are accused of violating Indonesia's immigration laws and face a maximum six years imprisonment and 30 million rupiah fine.

The pilot William Scott-Bloxam is accused of flying the plane into Indonesia without permission and faces a maximum five years imprisonment and 60 million rupiah fine.

But Fangohoy hoped they would be freed and allowed to leave the troubled province.

"We hope they will be freed, especially the crew member Vera, because crew (members) don't need (a) visa to enter a country," he said. "We also hope the pilot will be released because he was ordered to land."

Papua province has been troubled by a low-level separatist insurgency since the 1960s. Journalists are barred from entering Papua without special permission, and human rights groups have accused the Indonesian military of widespread human rights abuses.

Papua police give three-week ultimatum for return of weapons

Cenderawasih Pos - January 13, 2009

The authorities in West Papua are making strenuous efforts to persuade a group of Papuans who launched a raid on a police post in Tingginambuh to return the weapons along with ammunition which they seized during the raid. Tingginambuh is located Poncak Jaya, in the Central Highlands.

The deputy governor, Alex Hesegem said they hoped that the local administration would try to secure the return of the weapons as the best way to avoid a physical conflict over the incident.

If the weapons are not returned the security forces might well carry out sweepings in the area which would cause misunderstandings with the local community.

He hoped that the church would assist in the matter and called on OPM groups not to cause disturbances in the area. We want Papua to be a land of Peace and hope those still in the forest would return to the fold of the Republic of Indonesia.

Meanwhile a report from Puncak Jaya said that incident had caused a halt in the local activities of the government, the schools and other activities.

At present efforts to get the return of the weapons were using the persuasive approach, hoping families, customary groups, the youth would help get the weapons back.

The incident has caused fear among the local people, many of whom have abandoned their homes and fled into the forest while offices and schools were not functioning, but hopefully things would return to normal in a couple of weeks.

The police were questioning a number of people about the incident. A deadline of three weeks has been set for the return of the weapons, after which other action would be taken.

Earlier, the chief of police admitted that the raid had occurred on 7 January because the local policemen had been too lax and there were only two men guarding the post at the time. At the time, around twenty people were watching TV at the post while the police officers were eating in another room.

It was while this was happening that the raid took place when the 4 weapons were taken, along with some ammunition. The raid was mounted by a group led by Dekilas Tabuni who had been among the people watching the TV. They are believed to be part of the OPM group led by Goliat Tabuni. He admitted that if they had been more watchful, the incident would not have happened.

He said this should be a lesson for the police in an area like Tingginambut in the interior which is an area of unrest and armed rebels are known to be active.

Asked whether the police would bring in other forces to help, he said at the moment they are relying on local leaders to secure the return of the weapons, hoping that they would use the time to make an approach to the OPM to return the weapons.

If this doesn't happen within three week, the security forces will undertake their own searches, helped by personnel from the Cenderawasih military command.

[Posted by TAPOL: The authorities must surely realise that it is unlikely that the group in question will return the weapons. It remains to be seen what will happen when the three-week ultimatum ends. The incident also raised the question of how strong the OPM is in the area and whether further actions can be expected.]

Indonesia jails 11 Papuans for raising banned flag - Lawyer

Agence France Presse - January 9, 200

Jakarta – A court in Indonesia's remote Papua region has jailed 11 activists for "subversion" after they raised the region's banned independence flag, a lawyer said on Friday.

Prominent activist Jack Wanggai was sentenced to three-and-a-half years in prison and 10 others were given three years over peaceful protests in March 2007, lawyer Yan Christian Warinussy said.

The sentences were increased by the High Court in the Papua provincial capital Jayapura on Thursday after prosecutors in Manokwari city, where the protests took place, appealed the decision of a lower court there to jail the activists for eight months each, Warinussy said.

"The activists were carrying out peaceful demonstrations... and they brought the Morning Star flag," he said. "The court said that if it didn't deal with this case harshly then it will set a bad precedent for all of Papua." He said the defendants planned to appeal to Indonesia's Supreme Court.

Separatist sentiment runs deep in Papua, which lies on the western end of New Guinea island and was incorporated into Indonesia after a 1969 UN-sponsored vote of select tribal elders widely dismissed as a sham.

Displaying banned separatist symbols such as flags in Indonesia can lead to sentences up to life in prison.

Suspected rebels attack police post in Indonesia's Papua

Deutsche Presse Agentur - January 9, 2009

Jakarta – Police in Indonesia's Papua province said on Friday they were hunting suspected separatist rebels who raided a police post and stabbed the wife of an officer before making off with four guns and ammunition.

About 20 suspected rebels of the Free Papua Movement (OPM) attacked a police post in Puncak Jaya district on Thursday night and stabbed the wife of a policeman in the chest, said Papua police chief Bagus Eko Danto.

"The woman is in critical condition after she was stabbed three times with a sickle," he said.

He said the attackers were armed with traditional weapons such as sickles, arrows and other crude weapons. Bagus said the attackers also stole 60 bullets.

The OPM, comprising a small group of separatist rebels, have been fighting a sporadic rebellion in Papua, formerly Irian Jaya, since the early 1960s.

Papua, a predominantly ethnic Melanesian province 3,700 kilometres north-east of Jakarta, is a former Dutch colony that became an Indonesian province in 1964.

Human rights/law

President Yudhoyono told to solve rights cases

Jakarta Post - January 15, 2009

Jakarta – The National Commission on Human Rights (Komnas HAM) on Wednesday called on President Susilo Bambang Yudhoyono to order the Attorney General Office (AGO) to relaunch investigations into the country's "forgotten" human rights cases.

"We aren't seeing any progress with those cases. They remain unsolved without any clarification from the government," chairman of commission Ifdal Kasim told The Jakarta Post, adding that presidential backing was necessary to overcome obstacles blocking the investigations.

"The President can put pressure on the AGO to finish its investigations into the serious human rights violation cases."

Ifdal said seven serious rights abuse cases had been dropped even though the commission had sent the cases to the AGO several years ago. "We only have the right to investigate the cases and the 'AGO' will follow it up and bring the cases to the ad-hoc human rights court," he added.

The cases center on the shooting deaths of three students during the 1998 demonstrations in Semanggi and on the Trisakti university campus in Jakarta, the disappearance of activists in Jakarta, also in 1998, and the Talangsari massacres in Lampung in 1989, Wasior and Wamena in Jayapura, Papua in the 1990s.

The three cases involve alleged killings or abductions of members of the public by Indonesian military (TNI) soldiers. Komnas HAM has accused some retired generals of involvement in the Talangsari abductions.

Ifdal said the President had the authority to cut through the obstacles that had previously hampered the investigations, including resistance from retired TNI generals.

"We just want to make sure that the cases will be further investigated and brought to the human rights court soon. If the government decides to stop the legal process, weneed to ask anymore," Ifdal added.

He said the AGO also needed the backing of the House of Representatives to establishment an ad-hoc human rights court. However, the House earlier concluded that the cases did not constitute rights violations, and that there was subsequently no need to establish the proposed new court.

Ifdal countered, saying the commission had turned up numerousrights violations in the cases.

The commission is now investigating another case centering on the shooting of several criminals by an unidentified gunman during the New Order era of former president Soeharto. still have a long way to go. There are some obstacles that are blocking efforts to investigate past human right abuses. But we are committed to doing it," Ifdal said. (naf)

President wants immediate Constitutional amendment

Jakarta Post - January 14, 2009

Erwida Maulia, Jakarta – President Susilo Bambang Yudhoyono underlined Tuesday the importance of a fifth amendment to the Constitution, while speaking to hundreds of veterans.

Yudhoyono said, during the commemoration of the 52nd anniversary of the Indonesian Veterans Legion (LVRI) at the presidential palace that Indonesia needed to review the 1945 Constitution, which had been amended four times since 1999.

"Let's examine, have we headed in the right direction with the four amendments, as our founding fathers wanted? Has there been an effective balance in the sharing of power between the executive, legislative and judicial bodies?" the president said.

"Can the bodies do their job, as mandated by the Constitution, effectively? Have we had proper formula for liberty and security? And can the Constitution respond to changing times, to the era of globalization?" he went on.

Critics have said a fifth amendment is needed to reduce the excessive power of the legislature, which now has the power to conduct fit and proper tests in respect of executive jobs, including Ambassadors and even directors of state-own enterprises.

Legislative power is also manifested when a bill passed by the House of Representatives will automatically become law within 30 days even if the President refuses to sign it.

The new amendment also aims at strengthening the role of the Regional Representative Council (DPD) to act as an upper house.

Yudhoyono said a fifth amendment to the Constitution was always possible, but could only be done if the people really wanted it.

Landmark achievements of the first four amendments, between 1999 and 2002, included limitation of presidential tenure to two five-year terms; termination of the military's political function; separation of the police from the military; election of DPD members; and the introduction of direct presidential elections.

The LVRI chairman, a three-star retired general Rais Abin, said a fifth Constitutional amendment was urgent to help Indonesia consistently implement its presidential system.

Rais said the four amendments had resulted in bringing about a parliamentary system, which "would not be as effective as" the presidential system in the Indonesian context.

"We believe a fifth amendment is the only thing that can help us solve the problem," he said.

Demands for the fifth Constitutional amendment have emerged during the last few years.

Indonesia prosecutors file appeal in activist case

Reuters - January 12, 2009

Jakarta – Indonesia's attorney general has filed an appeal against a court decision last month in which a former top intelligence official was acquitted of the murder of a human rights activist, an official said on Monday.

The acquittal of Muchdi Purwoprandjono, a former deputy chief of the National Intelligence Agency, of the murder of activist Munir Thalib, prompted widespread criticism.

The case was seen as a test of Indonesia's commitment to rule of law and state accountability, and President Susilo Bambang Yudhoyono had promised that justice would be done when he was elected in 2004.

Jasman Pandjaitan, a spokesman for the attorney-general's office, said that a detailed appeal, related to the murder of Munir, would be sent to the South Jakarta district court within 14 days.

"Our objection is the panel of judges' verdict which acquitted Muchdi (Purwoprandjono) was not based on court evidence," Pandjaitan told reporters.

Munir died of arsenic poisoning on board a flight from Singapore to Amsterdam in 2004.

Munir case back to square one, rights back to Suharto's New Order

Detik.com - January 10, 2009

M. Rizal Maslan, Jakarta – "The courts are simply an extension of the perpetrators of human rights violations". Thus spoke the late human rights activist Munir during a speech at a demonstration at the Supreme Court in 2004. Likewise is the human rights situation at the start of 2009, including the investigation into his murder.

"The exposure of the murderer of human rights defender Munir has truly returned to square one with the by verdict by South Jakarta District Court judges who acquitted the defendant Muchdi PR," said Indonesian Human Rights Watch (Imparsial) managing director Rusdi Marpaung in a press release received by Detik.com on Saturday January 10.

According to Ucok - Rusdi Marpaung's nickname - the verdict acquitting former National Intelligence Agency deputy chief Muchdi Purwopranjono of Munir's murder overlooked several testimonies that were presented to the court on Purwopranjono involvement in the murder.

"This will not only impact upon efforts to uncover the Munir murder case, but will also impact upon guarantees [of the safety] of human rights defenders' work in Indonesia", he explained.

The acquittal of Purwopranjono on all charges continued Ucok, it a tragic blow against human rights in this country. The verdict again prolongs the chain of impunity (legal immunity) that was inherited from regime to regime and represents a concrete form of the state's conservatism.

Marpaung also explained that in Imparsial's view, 2008 represents one in a series of dark years for the upholding of human rights in Indonesia. The return of state conservatism under the administration of President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla has been reflected in a number of incidents where human rights guarantees have been abnegated, both civil political rights as well as economic, social and cultural rights.

State conservatism has emerged simultaneously in the institution of the presidency or executive, legislative and judiciary. This represents a concrete form of the state being unwilling to carry out its obligations in the context of protecting, advancing, fulfilling and respecting the human rights values mandated by the constitution.

"As a result, there is concern that in the future Indonesia will return to the dark period of [late President Suharto's] New Order [regime]", he said.

Marpaung added this conservative outlook has been marked with a strengthening of the state though the neglect of human rights as a part of state policy itself. State conservatism has also been marked by the state's position of affirming efforts to obstruct the exposure of human rights crimes committed by the state itself.

Imparsial warned that a number of cases allegedly involving state security personnel that occurred in the past have never been resolved. This includes for example cases of human rights violations in the Talangsari (Lampung) affair, the 1998 May riots, human rights violations in Aceh, the 1997-98 abduction of activities, the Alastlogo case and the case of police violence in Bengkalis.

"What in fact is happening that the state is defending [rights violators] and supporting a stand that obstructs justice. The state has begun to deny past human rights violations as a part of an effort to defend state authority and so that they are not a considered crimes", he asserted. (zal/nwk)

[Translated by James Balowski.]

Indonesia: Former spy chief challenges rights activist

Adnkronos International - January 10, 2009

Jakarta – An Indonesian general who was convicted and later acquitted of the murder of a leading activist, is launching defamation action against a prominent human rights leader.

The South Jakarta District Court in December cleared Muchdi Purwoprandjono of all charges linked to the murder of rights activist Munir Said Thalib in 2004.

Human rights activists condemned the court's decision to acquit the former spy chief who was previously convicted of ordering the activist's murder. Now the general is taking legal action against Husman Hamid, lawyer and director of the human rights group established by Munir, Kontras.

Contacted by Adnkronos International (AKI), Hamid said he was not concerned about the legal action and would continue the fight for justice. "What Muchdi is trying to do is only a distraction, but we will not be intimidated by it," he said.

The former spy accused Hamid of calling him an "assassin" during the trial. Hamid called the general's exoneration by the courts "a scandal and a defeat for Indonesia".

Munir was poisoned during a flight from Jakarta to Amsterdam on 7 September 2004. A former pilot with the national airline, Garuda, Pollycarpus Budihari Priyanto, was sentenced to 20 years for killing the rights activist.

Munir was an outspoken critic of Indonesia's security services under the dictator, Soeharto, who ruled the country from 1965 to 1998. He exposed the kidnapping of 13 activists by special forces under Purwopranjono's command in 1997 and 1998.

One of his investigations revealed the involvement of Kopassus in the kidnapping of young activists in 1997 and led to Muchdi's dismissal.

No senior member of the armed forces or secret services has been sentenced despite numerous allegations of human rights abuse under the Soeharto regime.

Usman: Muchdi's report detrimental to investigation

Jakarta Post - January 10, 2009

Chairman of the Commission for Missing Persons and Victims of Violence, Usman Hamid, has accused former top spy Muchdi Purpranjono of attempting to disrupt the investigation of the murder of the late human rights activist Munir by filing a defamation case against him with police.

"The aim of this maneuver is to take attention away from the main problem of who is responsible for Munir's death," said Usman, in a press conference at the Kontras office, Menteng, Friday.

Muchdi filed a defamation complaint with police earlier that day, stating that Usman had blatantly accused him of responsibility for Munir's murder in September 2004. Muchdi previously stood trial for allegedly masterminding the murder.

All accusations against Muchdi were dropped by the South Jakarta District Court on Dec. 31 because of a lack of proof. The decision came as a shock to the public as the team of prosecutors used the same evidence used to out the executor of the murder, Pollycarpus Budihari Priyanto, behind bars for 20 years.

Usman said he was not shaken by the defamation report, as he had previously received similar threats from Muchdi's higher ups, including former State Intelligence Agency's head A.M Hendropriyono.

"Go ahead, I will not back down. The report is premature as the legal process has not finished. It is not right to accuse someone who is trying to solve a crime," he said, referring to an appeal currently being perused. (emh)

Labour/migrant workers

Indonesian fishermen income the lowest

Tempo Interactive - January 12, 2009

Rumbadi Dalle, Batam – The average income for Indonesian fishermen is still below the average regional minimum wage. Indonesian Fishermen Association chairman Yusuf Solichin Martadiningrat said a fisherman earns only about Rp 300,000 a month.

The low earning is due to inadequate fishing equipment and the low price of fishery products. Yusuf has called on the government to provide capital support.

Yusuf also urged the police to continue investigating a case involving the swindle of Rp 1,5 billion belonging to the fishermen's funds out of a Rp 4,1 billion.

The money was taken by board chairman of the Indonesian Fishermen Association, Hermawan. The money was to compensate the financial loss caused by the sinking of Hyundai 105 boat in Batam waters. Black oil that is polluting Batam waters allegedly originated from this boat.

Layoffs continue, official reports underestimate real figures

Kompas - January 10, 2009

Palembang – The impact of the global crisis continues to claim victims around the country as more workers are laid off. In South Sumatra for example, between mid 2008 and early 2009 as many as 2,000 workers have been sent home (temporarily laid off) or dismissed.

Dismissals in far greater numbers were previously reported to have occurred in West Java. Since November 2008, were more then 20,000 people have lost their jobs in the province. In Central Java, 3,441 workers from 31 companies were dismissed in 2008.

Speaking with journalists in Palembang on Friday January 9, South Sumatra Indonesian Chamber of Commerce and Industry (Kadin) chairperson Ahmad Rizal said that out of these 2,000 dismissed workers, 90 percent were "sent home" while the remainder were dismissed.

"In early 2009, we again received a report from PT Musi Plasindo, which has already sent more then 30 percent of is casual labour force home. The case is currently being handle by tripartite [negotiations]", said Rizal.

As of early December 2008, the number of South Sumatran workers who have been sent home or dismissed was recorded at 1,000 people. By early 2009 this had risen to 2,000.

Not reporting

Rizal warned that these totals are only based upon official reports provided to the South Sumatra Kadin office. "If seen from the real situation on the ground, it's estimated to be much higher. Moreover many companies are not prepared to report when they carry out dismissals or send employees home", he said.

Speaking separately, the head of the statistical and distribution division of the South Sumatra National Statistics Agency (BPS), Nazaruddin Latief announced that the number of job seekers in South Sumatra in 2008 reach 3.4 million people. This total has risen sharply by as many as 17,701 people compared with the previous year.

Speaking in the Central Java provincial capital of Semarang on Friday, All Indonesia Trade Union (SBSI) regional coordinator Suwarto warned that companies carrying out dismissals as a consequence of being hit by the global crisis should not do so unilaterally. Before there are any dismissals, the company needs to discuss the matter first with employees.

"So that workers also know if in fact that the state of the company is such that it is cannot [employ them]. Don't let the global crisis be used as grounds to dismiss workers", said Suwarto in response to dismissals that have taken place in Central Java in 2008.

Because of this therefore, Suwarto appealed to workers to supervise dismissals that are undertaken by companies. (oni/gre/ilo)

Notes:

Workers who are "sent home" or temporarily laid off still receive their basic monthly salaries and may be summoned back to work once the company's finances improve.

[Translated by James Balowski.]

Electronics companies in Indonesia begin mass layoffs

Jakarta Post - January 9, 2009

Several large electronics companies in Bintan, Riau Island in Indonesia, affected by the global economic downturn, have begun large-scale worker layoffs, a local manpower agency official said Thursday.

"Layoffs have been happening since the start of the new year and are expected to peak in March," the head of Bintan district's manpower office, Makhfur, said as quoted by Antara.

The agency noted 923 workers in the Kijang area and 636 workers in the Lobam area had been laid off. Before the layoffs there were 2,700 and 10,802 workers in Kijang and Lobam, respectively.

Agriculture & food security

Indonesia expects rice production surplus this year

Straits Times - January 10, 2009

Mohd Nasir Yusoff, Bernama – Indonesia is projected to enjoy a rice production surplus of 3.8 million tonnes in 2009 or 5.37 per cent more than last year, a senior agriculture ministry official said.

The country was this year expected to produce a total of 63.52 million tonnes of dried unhulled paddy, the equivalent of 35.9 million tonnes of rice, said director-general of food crops Sutarto Alimoeso.

"With domestic rice demand this year to stand at 32.1 million tonnes, the expected production figure means there will be a surplus of 3.8 million tonnes," he said as quoted by Antara news agency today.

Meanwhile, according to the Central Bureau of Statistics (BPS), the country's dried unhulled paddy production last year was around 60.26 million tonnes.

The government has expressed optimism that this year's rice production target would be achieved, thanks to favourable climate condition and a 0.3 per cent expansion in the overall rice farming area.

Agriculture ministry data showed that during the last rice farmers' planting season (Oct-Dec 2008), paddy was planted on a total area of 4.64 million hectares as compared to 4.62 million hectares in the planting season in 2007 and 3.39 million hectares in 2006.

Prior to this, Malaysia had expressed willingness to buy rice from Indonesia, following an earlier announcement of the projected surplus.

Corruption & graft

Tommy set to regain control of disputed cash: Lawyer

Jakarta Post - January 15, 2009

Dicky Christanto, Jakarta – Hutomo "Tommy" Mandala Putra's Garnet investment company is set to recover 36 million euro in overseas bank savings after recently winning a court battle against the Indonesian government.

Tommy's lawyer O.C. Kaligis said Wednesday the London Guernsey High Court's verdict would prevent the Indonesian government from attempting a new tactic to seize the money, which is being stored at the Guernsey branch of the Banc National de Paris (BNP) Paribas.

Legal expert Ahmad Syarifuddin Natabaya said the government barely stood a chance of contesting the verdict due to the differing legal systems in Indonesia and the UK.

Ahmad said the defeat highlighted the incapability of the Attorney General's Offi ce (AGO) to collect evidence linking the money to a corruption case implicating Tommy back in Indonesian.

"One thing is for sure, the government's lawyers have failed to convince the panel of judges in the UK. This leads to the question of whether or not the government is taking this case seriously," said Ahmad, a former Constitutional Court judge.

This defeat for the Indonesian government was the fourth court battle between Tommy and the government in the past year, all of which have been won by the youngest son of former president Soeharto.

The AGO dropped its investigation into alleged corruption at BPPC, a national clove cartel controlled by Tommy in 1990s, in September last year. The AGO said the BPPC had paid Rp 759 billion in compensation.

Attorney General Hendarman Supandji has insisted the government will appeal or seek a review of the case, or file a new lawsuit to regain control of the money.

Assistant attorney general for state administrative affairs Edwin Pamimpin Situmorang said Wednesday the government would exhaust every possible measure to keep Tommy from acquiring the money.

However Edwin acknowledged the government was facing an uphill challenge to win over the judges' favor. "If the British legal procedure allows Garnet to cash out the fund anytime soon, then there isn't much that can be done about it," Edwin said.

In order to be able to file a casereview, the government has to gather new evidence substantial enough to change the court's ruling.

Even still, Indonesia's move to file a new lawsuit will not require the Guernsey court to reverse their decision. "All we have to do right now is explore all options that will help us seize back the money for the benefi t of the country," Edwin said.

Kaligis said the court's verdict temporarily setback the government. "The Guernsey court previously rejected the government's bid to file an appeal to the Privy Council (British Supreme Court) in London," Kaligis said.

He added the court deemed the evidence presented by the government's lawyer as "inaccurate and imprecise".

Lack of skill, willingness blamed in Tommy case

Jakarta Post - January 12, 2009

Abdul Khalik, Jakarta – A decision by British authorities to unfreeze 36 million euro worth of funds belonging to Hutomo "Tommy" Mandala Putra has been slammed by experts back home.

Critics said Sunday the move demonstrated the Indonesian government did not have the skill or determination to handle sophisticated money laundering cases and claim back state money from abroad.

This decision, seen as another victory for Tommy, completes a series of failures at the Attorney General's Office (AGO) after losing the Clove Marketing and Buffer Agency (BPPC) graft case and the National Logistics Agency (Bulog) case, collectively costing the state around Rp 1.6 billion in losses.

The Vista Bella case, another implicating the youngest son of former president Soeharto, also saw the government fold and allegedly lose around Rp 4 trillion.

"The government just doesn't have the competency to pursue a sophisticated case such as one involving money laundering at an international level. Considering the huge amounts of money involved, the AGO should form a team of internationally- recognized legal advisors," noted lawyer Frans H. Winarta said.

He argued that the fact the government did not employee top lawyers in the field indicated they did not take such cases seriously.

"We are talking about trillions of rupiah here, and we don't even have the ability to close the case successfully. Logically, it would make sense for the government to spend billions of rupiah hiring top-quality lawyers so they could claim back the money," the University of Indonesia's legal expert Irman Putra Sidin said.

Guernsey High Court ruled Saturday to accept a request from Tommy's company, Garnet Investment Limited, to unfreeze 36 million euro (US$48 million) of company money deposited in the Banque Nationale de Paris (BNP) Paribas after it found no evidence the money originated from corrupt activities in Indonesia.

In the same ruling, the court ordered the Indonesian government to gather evidence and trace Tommy's money to strengthen allegations of corruption against him.

Frans said the failure of the AGO to prove Tommy embezzled state money in the BPPC case and the Vista Bella case were the reason behind the British court's decision.

"If the government wants to seek an appeal against the decision then it has to prove that Tommy was involved in corrupt activities," he said.

State lawyer Yoseph Suardi Sabda said the government would appeal the decision with the British Supreme Court. "We have a month or two to prepare for an appeal," he said.

After allegations by the AGO that Tommy had obtained money through corruption, a British lower court froze 36 million euros from his accounts on May 23, 2007.

The AGO and Bulog sued Tommy over a 1995 land transaction deal between the logistics agency and Tommy's company Goro that cost the state Rp 550 billion in losses.

However, the South Jakarta District Court ruled in February that Bulog had no legal grounds for the case, instead ordered the state agency pay Rp 5 billion for damaging Tommy's business reputation.

The government reached a settlement on March 19 after Bulog dropped its appeal against the court ruling.

The out-of-court-settlement saw Tommy pay Bulog Rp 23 billion in rental fees for land used by his company PT Goro Batara Sakti. He was also required to drop the Rp 5 billion compensation fee Bulog was ordered to pay based on the verdict handed down in February.

The government was forced to drop the BPPC investigation case against Tommy after he was declared not guilty of running a monopoly, and even returned some of the money they had confiscated on the grounds it was allegedly obtained illegally.

The government also seemed to have difficulties recovering state money in the Vista Bella case after the AGO could not gather enough evidence to prove state funds had been misappropriated by Tommy.

KPK to deepen probe into 'illegal' government accounts

Jakarta Post - January 9, 2009

Jakarta – The Finance Ministry has handed more than 260 "illegal" bank accounts belonging to four ministries and two state institutions to the Corruption Eradication Commission (KPK) for further investigation.

The accounts – which together encompass Rp 314.2 billion (US$29 million) and $11 million – include 102 that belong to the Supreme Court, 66 to the Ministry of Justice and Human Rights, 36 to the Home Ministry, 32 to the Agriculture Ministry, 21 to the Manpower and Transmigration Ministry, and two to upstream oil and gas regulator BPMigas.

Another account, which belongs to the Social Services Ministry, is currently being examined by the Finance Ministry and will be handed over soon to the KPK, Finance Minister Sri Mulyani Indrawati said Thursday.

"The Finance Ministry and the KPK have agreed to establish a joint team to investigate the illegal accounts," Mulyani told reporters.

Under the 2004 State Treasury Law, ministries and state institutions are permitted to hold accounts on the condition of approval by the Finance Ministry and the State Treasury. All other accounts are deemed illegal.

The law is intended to clean up the mess of unregistered accounts, referred to as nonbudgetary funds, many of which have become the centers of graft scandals.

Mulyani said the 260 accounts had been selected from more than 2,000 accounts that the Supreme Audit Agency (BPK) had construed to be illegal.

Last September, the BPK announced it had uncovered 2,240 illegal bank accounts belonging to ministries and government institutions, encompassing a total of Rp 1.39 trillion.

An ensuing verification process conducted by the ministry categorized 260 of those accounts as "suspicious".

"There is a possibility of corruption involving the accounts, that's why we asked the KPK to investigate the accounts further," said the ministry's senior official Hekinus Manao.

"We hope the progress (on the investigation) can be reported by March," Hekinus said, adding that the ministry wanted to include the progress in its 2008 financial report, which is due at the end of March.

Since 2003, the BPK has never included an opinion about the state's financing in its annual budget report, despite the prevalence of illegal accounts.

The BPK reported that as of October last year the state had lost Rp 31.14 trillion and $458 million due to "irregularities", including some 10 trillion lost to illegal accounts.

The Indonesia Corruption Watch says the ministry was able to reclaim Rp 7.28 trillion of those amounts to state coffers from 2007 to 2008. (hwa)

Poverty & unemployment

Poverty rate down, will drop further: Government

Jakarta Post - January 9, 2009

Erwida Maulia, Jakarta – The government claims it managed to reduce unemployment and poverty rates in 2008 and will continue to further drive the figures down this year despite the looming threat of the global financial meltdown on the country.

In a press conference in Jakarta on Thursday, Coordinating Minister for People's Welfare Aburizal Bakrie said Indonesia's unemployment rate in 2008 stood at 9.43 million people, a decline from 10.55 million people the year before.

The poverty rate, meanwhile, dropped to nearly 35 million people from 37.20 million in 2007, he added.

Although Indonesia is expected to start feeling the pinch of the global crisis this year, the government outlined its ambitious target of further reducing the unemployment and poverty rates to seven million people and 31 million people, respectively.

"The unemployment rate will be cut by 7 percent and the poverty rate by 12.5 percent in 2009," Aburizal said.

"To counter the impacts of the crisis, we have a number of programs that will directly assist the community and reduce the number of poor and unemployed people nationwide."

Aburizal said the government had allocated around Rp 50 trillion (approximately US$4.6 billion) in funding to "stimulate" the real sector and suppress the magnitude of mass layoffs amid the global crisis.

If mass layoffs cannot be avoided, the government has prepared poverty reduction programs aimed to partly employ dismissed workers, at least temporarily, until they find new jobs in the formal sector.

Among the programs are the Mandiri National Community Empowerment Program (PNPM Mandiri), which will see government funding poured into activities deemed useful for empowering the community, and the microcredit (KUR) program, where the government offers low- interest loans to micro and small businesses.

Aburizal said PNPM Mandiri successfully offered jobs to almost 41.5 million people last year, while the KUR program brought 4.6 million people back into work.

The government anticipates that PNPM Mandiri will provide job opportunities for at least 20 million more people this year, while the KUR, whose non-performing loan rate currently stands at 0.84 percent, is expected to absorb an additional six million workers in 2009.

While planning to expand the coverage of these two programs, the government has said it will not boost the number of recipients of some poverty reduction programs, including the Public Health Security (Jamkesmas) program, the direct cash assistance program and the rice-for-the poor program.

Aburizal said the figure of 76.5 million people living in poverty nationwide would not be increased under any of the programs.

He also said the direct cash assistance program, launched early last year to compensate for the fuel price increase, would expire in February as a new fuel price was adopted and has plunged ever since.

Meanwhile, deputy coordinating minister for the economy Bayu Krisnamurthi said the crisis will further reduce families' access to food and will drive up malnutrition rates in children.

"There should be a massive, long-term program to protect these children from the crisis. We don't want to lose our future hope," he told a press briefing.

At an Asia-Pacific meeting in Singapore discussing the impact of the financial crisis on children, Bayu said Indonesia had proposed a US$70 billion international emergency fund for children globally.

"Some countries have supported it. We hope the establishment of the fund can occur as soon as possible," he said.

Islam/religion

Religious intolerance getting worse, says report

Jakarta Post - January 14, 2009

Adianto P. Simamora, Jakarta – Religious intolerance is getting worse here, with state agencies, radical groups and community organizations involved in violations of freedom of faith and religion, according to a report released Tuesday.

The recent sealing of the synagogue in Surabaya, East Java, by Muslims in a protest against the Israeli attacks on the Gaza Strip was the latest case of religious intolerance in Indonesia.

The incident was not included in the 2008 Report on the Condition of Religious and Faith Freedom in Indonesia, which was released by the Setara Institute for Democracy and Peace.

But Setara Institute chairman Hendardi said the closure of the Jewish place of worship was against the principle of religious tolerance. "It is clearly part of religious violence and cannot be tolerated," he told The Jakarta Post after launching the report.

The report found 265 cases of violence against religions from January-December last year, a significant increase from only 135 cases in 2007.

"The increase is spurred by the rising persecution against the Jamaah Ahmadiyah by Islamic organizations to pressure the government to issue a presidential decree banning the minority sect," the report said.

Last year, the government issued a joint ministerial decree forbidding Ahmadiyah from spreading its religious teachings, bowing to pressure from extremist groups that had attacked its followers, their mosques and houses across the country.

Out of the 265 incidents, the institute recorded 367 violations against freedom of religion and faith. "Of the 367 violations, the state was involved in 188 cases of violence both by 'commission and omission'," Hendardi said.

The report said police were involved in 121 cases of religious intolerance, regents and mayors in 28 cases while 52 others involved courts and regional legislative councils.

"What is worrying is that more individuals and unidentified groups launched sporadic religious attacks, which reached 91 cases last year," Hendardi said.

The report blamed the radical Islamic Defender Front (FPI) and the Indonesian Ulama Council (MUI) as the main actors in the religious violence.

"We record the MUI involved in 42 cases and the FPI in 27 cases including in the Monas incident last year," he said, referring the brutal attack on activists during a pro-tolerance rally in the National Monument, Central Jakarta.

The Setara conducted investigations in North Sumatra, South Sumatra, West Sumatra, Jakarta, Banten, West Java, Central Java, Yogyakarta, South Sulawesi, South Kalimantan and West Nusa Tenggara.

West Java was the province recording the highest rate of religious violence with 73 cases, followed by West Sumatra and Jakarta provinces with 56 and 45 cases, respectively.

"Most of the cases took place in June when the government issued a joint ministerial decree to curb the activities of Ahmadiyah," Hendardi said.

Religious Affairs Minister Maftuh Basyuni claimed a 2006 decree on religious harmony had sharply decreased religious violence in the country. "This is big achievement," he said Tuesday as quoted by Antara.

The 2006 decree requires people to obtain government permits to build houses of worship. Earlier, the Wahid Institute said religious violence rose to 232 cases in 2008 from 197 in the previous year.

Government to stop donations for Ahmadiyah refugees

Jakarta Post - January 13, 2009

Panca Nugraha, Mataram – The government will stop donating rice to hundreds of followers of an Islamic sect taking refuge in shelters in West Nusa Tenggara for the past three years, an official said Monday.

The head of the province's social services agency, Bachruddin, said the Social Services Ministry would only allocate the rice for victims of natural disasters, not for Ahmadiyah followers.

"Frankly, the ministry did not allocate rice for Ahmadiyah refugees this year. So we will stop the donations," Bachruddin said in Mataram, adding the current stock of 35 tons of rice would instead be used in cases of natural disasters.

The government previously provided 9 to 12 tons of rice for 271 people from 57 families living in refugee shelters in Mataram and Central Lombok, after their homes were destroyed by other Muslims who considered the sect heretical.

"Last year we still had rice stocks for them, but not this year. It's also because they've been taking refuge here for more than two years now. They can't be categorized as refugees," Bachruddin said.

To handle the matter, he went on, the social services agency was approaching communities where the sect's followers came from, to try to persuade them to accept back the refugees.

He added the agency was also working with the Mataram and Central Lombok administrations to relocate the refugees to residential areas, and not colonies, as they used to live in.

"But some residents still reject the followers. The residents want them to uphold 'real Islam', while the refugees defend their beliefs," Bachruddin said.

To date, 130 people from 37 families of Ahmadiyah refugees have been living in the Transito House in Mataram, after being forced from their homes in Ketapang hamlet, Gegerung village, Lingsar district in West Lombok, in February 2006. Another 19 people from 7 families have been living in the defunct Praya Hospital, Central Lombok, since they were expelled from their homes in Praya three years ago.

M. Jauzi, chairman of the provincial branch of Ahmadiyah, said his organization would leave the decision to stop the donations up to the government.

But he called on the government to return the refugees to their respective homes if they decided to press on with the decision to stop the donations, saying that "taking refuge is not the will of the Ahmadiyah followers".

"We've frequently asked the government to return the refugees to their homes so they can work rather than live off of handouts," he said.

Jauzi said his organization had sent a letter to the governor, asking the administration to resolve the issue quickly.

"In the latest developments, the provincial administration and religious affairs office said they would facilitate the refugees' return home. But we're still waiting," he said.

Violence against Ahmadiyah followers is not isolated to the province. In West Java, property owned by sect supporters have been vandalized. Attackers often use an edict issued by the Indonesian Ulema Council, which declared Ahmadiyah heretical, to justify the violence. Many moderate Muslims have decried the violence against the Ahmadiyah followers as a violation of the Constitution, which guarantees the freedom of religion and religious belief.

10 alleged Islamic militants tried in Indonesia

Associated Press - January 13, 2009

Ali Kotarumalos, Jakarta – Ten suspected Islamic militants went on trial Tuesday in an Indonesian court for allegedly killing a Christian schoolteacher and plotting to bomb a cafe.

The defendants, including a Singaporean who allegedly met al- Qaida leader Osama bin Laden, face sentences of up to life in prison if convicted on charges of illegal possession of explosives, murder, plotting a terrorist attack and harboring fugitives.

The men are suspected members of the Southeast Asian terrorist network Jemaah Islamiyah, which is accused of carrying out several suicide bombings against Western targets in Indonesia since 2002, including bombings on the resort island of Bali, their indictment said.

Police raids last July seized 22 explosive devices packed with bullets. They were allegedly intended to cause maximum damage at a bar frequented by non-Muslims, Kafe Bedudel, in a hilly resort town on the island of Sumatra.

The attack was apparently called off after the plotters realized it might unintentionally kill Muslims.

The men are also accused of shooting to death Indonesian teacher Dago Simamora in front of his 9-year-old son in 2007 in the south Sumatran town of Pekanbaru, their indictment said. They also attempted to kill Catholic priest in 2005, prosecutors allege.

Defendant Fajar Taslim, a 35-year-old Singaporean English teacher of Pakistani heritage, is allegedly a member of a Singaporean cell believed to have plotted to hijack a plane in Bangkok in 2002 and crash it into the international airport there.

Taslim allegedly met with al-Qaida leader Osama bin Laden on several occasions, the indictment said.

Jemaah Islamiyah, formerly funded by al-Qaida, has been accused by police of carrying out five suicide bombings in Indonesia that killed more than 240 people, including the Bali strikes in 2002 and 2005.

Indonesia, the world's most populous Muslim nation, has convicted scores of Islamic militants in its fight against terrorism. Three men were executed last year for the Bali bombings.

Demarcation between Islamic and other parties becoming less clear

Kompas - January 12, 2009

Sleman – The demarcation between political parties labeled as Islamic and non-Islamic parties is becoming increasingly vague. This indicates that political identity is no longer an issue in the future national life of the country.

This was conveyed by Reform Institute Executive Director Yudi Latif during a national seminar on the theme "The Concept of an Islamic Leadership in Response to the Nation's Problem" at the Indonesian Islamic University (UII) campus in the Sleman regency of Yogyakarta, Central Java, on Sunday January 11.

The seminar, which was organised by the UII Student Executive Institute also presented as a speaker House of Representatives Commission VIII member Marwah Daud Ibrahim from the Golkar Party faction.

Latif said that this increasingly vague demarcation can be seen from the many Islamic figures that have joined non-Islamic labeled parties or visa versa. "In addition to this, many secular-nationalist parties are also currently opening political wings inspired by Islam", he said.

The weakness of political identify, according to Latif, is also demonstrated by the low level of support obtained by Islamic labeled parties in the elections. "In the 2004 elections, for example, at the very most, Islamic labeled parties only garnered around 6 percent of the vote or less", he said.

Latif believes that the sustainability of Islamic labeled parties in the 2009 elections will very much depend upon their ability to differentiate their definition of Islam. How is it that up until now Islamic leaders have yet to demonstrate that they can bring justice or prosperity to the people.

"Despite the majority of the population being Muslims and an administration filled with Muslim people, the levels of corruption and poverty in Indonesia also remains high", said Latif.

In addition to this, Latif emphasised that the future national leadership must be able to present an image of national self- sufficiency. "We must begin to be conscious about our identity and potential as a nation and direct change fully in accordance with this identity and potential", he said.

Conversely, Ibrahim said that the concept of a genuine Islamic leadership is a leadership in which all intentions, words and actions consistently follow the guidance of God's revelations. "What is happening at the moment, is large numbers of Islamic leaders in their leadership are guided by lust," said the presidential candidate who took part in the National Integrity Assembly (DIB).

It is this that results in the majority of the country's Muslim population living below the poverty line. "Almost 95 percent of the [world's] Muslim population live in poor countries, including Indonesia", he said. Countries where the majority of the population is non-Muslim meanwhile enjoy a level of prosperity and income above 20,000 US dollars per capita per year.

Ibrahim sees this as ironic. How can this be so when Muslim countries have an abundance of natural wealth, which is far greater than possessed by the non-Muslim countries. This means there is a problem of management and leadership in the Muslim countries. (eng)

[Translated by James Balowski. The original title of the article was "Islam and Non-Islam increasingly vague – Political identity no longer an issue".]

Protesters seal off alleged 'deviant' Islamic sect center

Jakarta Post - January 10, 2009

Yuli Tri Suwarni, Bandung – Around 100 people from the Islamic Reform Movement sealed off a house Friday afternoon alleged to be the center of a sect preaching alternative Islamic teachings.

The group took action following their Friday prayers at a nearby mosque. Together with dozens of local residents they marched to the house located in the Parahyangan Kencana residential complex in Nagrak village, Banjaran, about 30 kilometers south of downtown Bandung.

The house, appearing to be the most luxurious in the complex, belongs to Kurnia Wahyu, 63, leader of the alleged sect AKI (Aliran Kepercayaan Ilahi or Belief in God Sect), which has been in the area since 2001.

The protesters held a free speech forum in front of the high- fenced home, repeatedly yelling the words, "Dissolve the AKI!". The angry rally drew riot police to the area, but locals demanded they allow them in to meet with the owner and other members of the AKI inside the house.

A mediation session was later held between the police, military, district head, village head, the local branch of the Indonesian Ulemas Council (MUI) and representatives of GARIS, which is the association of mass Islamic organizations including the Islamic Defenders Front (FPI).

Bahrun Jamil Ahmad, former head of the neighborhood unit RW 07 where AKI conducted rituals, said that neighbors had been protesting against rituals performed by the sect twice a month on the 1st and 17th day.

"They never perform sholat compulsory prayers performed five times daily. They sacrifice animals, but distribute the meat only among themselves," Bahrun said.

He said some of the locals who joined the sect were unable to leave at their own free will because they were forced to adhere to its teachings.

Indra Perwira, a Nagrak village administration staff member, said around 40 to 50 people attended the sect's rituals, mostly from outside the village.

Suryana Nur Fatwa, coordinator of the West Java branch of GARIS, said his association had been investigating the AKI teachings for more than two years.

Some of the disputed teachings, according to Suryana, included replacing the compulsory sholat prayers with fasting and controlling oneself from committing bad deeds.

Followers of AKI were also prohibited from listening to Islamic preachings given by preachers other than their own.

"If they want to establish a sect of their own, they should not use Islamic prayers as a basis. This is deviant and causes restlessness. They say the mosque and Kaaba are just bricks," Suryana said.

"They even perform prayers with their eyes shut, accompanied by Sundanese disco music. This is a complete harassment of Islam."

Suryana said GARIS had reported the case to the Bandung regency branch of the Coordinating Board for Monitoring Mystical Beliefs (Pakem) as recently as Dec. 2008 but had not yet received a response.

The mediation session concluded Friday with Kurnia Wahyu being made to sign an agreement stating he would halt sect activities until there was a definite decision from the Pakem team regarding the matter.

Muhamad Ismail Chaniago, 40, a member of AKI, said he was surprised their rituals were considered deviant.

"We have been practicing it for 20 years. We are also taught to perform sholat and fasting. We are obliged to have zikir (repeatedly chant part of the confession of faith) and to always have Allah in mind. Isn't that good?" he said.

Elections/political parties

Women candidates ready for polls

Jakarta Post - January 14, 2009

Jakarta – A group of women candidates called on voters to show commitment to the election law that requires political parties to allocate at least 30 percent of their legislative seats to women.

The East Indonesia Women's Legislative Candidates Forum said a recent Constitutional Court's verdict, which will ensure candidates who win the most votes will secure legislative seats, poses a challenge to efforts to increase the representation of women in the legislature.

The candidates, from various parties, recommended a coalition of poll witnesses and a network of voters to intensify the campaign for women's legislative candidates. a consequence of the Court verdict, we suggest that voters mark the names of candidates, rather than the party's logo if necessary," the group said in a statement.

Price cuts: Yudhoyono's generous gift ahead of polls

Jakarta Post - January 13, 2009

Mustaqim Adamrah, Jakarta – President Susilo Bambang Yudhoyono decided Monday to lower fuel and electricity prices before Indonesians go to the polls this year.

Yudhoyono also issued a policy to immediately force public transportation operators to slash fares and allow the public to directly enjoy the impact of a string of fuel price cuts.

Prices for subsidized Premium gasoline and diesel for private motorists will be cut by 10 percent to Rp 4,500 per liter, and by 6.25 percent to Rp 4,500 per liter, respectively, while subsidized kerosene prices remain unchanged at Rp 2,500 per liter. The new fuel price scheme, the third so far since December last year, will take effect on Jan. 15.

Yudhoyono said the policy was aimed at bolstering household consumption to keep the economy robust amid a deepening global economic crisis, "[The policy] will help sustain the people's purchasing power and prevent mass layoffs. These are the utmost outcomes the government wants to achieve," Yudhoyono said after a Cabinet meeting.

Yudhoyono's fuel price cut, the first ever taken by an Indonesian president, is seen by analysts as a short-term populist election gambit. Indonesians will pick legislators in April 9 and a president in July.

Acting Coordinating Minister for the Economy Sri Mulyani Indrawati promised consumers there would not be a fuel shortage ahead of the price cut as a result of losses that gas station owners would bear because of the price discrepancies.

"[Gas stations] will begin purchasing fuel at the new prices [on Monday night], but people will enjoy the new price effectively on Jan. 15," she said.

Mulyani was upbeat the cut would bring the January inflation rate to less than 0.53 percent. Bank Indonesia forecast infl ation to be between 5 and 7 percent this year, easing from 11.1 percent last year.

The government is struggling to ease inflation, which has become a key requirement for the central bank to slash its benchmark interest rate to help companies gain access to low-cost borrowing for expansion and to hire workers.

Fueled primarily by domestic consumption, Southeast Asia's largest economy expects to grow by between 4.5 and 5.5 percent this year – the highest in the region.

Indonesia's limited dependence on exports is likely to see it go almost unscathed through the global economic slump.

On Monday, Yudhoyono also lowered electricity rates for companies with power consumption of between 201 kilowatts and 30 megawatts, and those of over 31 megawatt.

Mulyani said industrial energy costs were expected to decline by an average of 8 percent, while energyintensive industries were expected to save 12 to 15 percent on energy costs. The rate cut will affect January billing.

For cuts in transportation fares, Yudhoyono said a policy issued by Transportation Minister Djusman Syafii Jamal would require intercity and interprovince transportation operators to reduce fares by 10 percent, effective Jan. 15.

Potential for golput in 2009 elections still high

Kompas - January 12, 2009

Jakarta – In administrative terms, the potential for white movement or golput – people who don't use their right to vote – remains high in the 2009 legislative and presidential elections. Based on the results of an Indo Barometer survey, only 67.2 percent of people think that are enrolled vote.

This phenomenon was underlined by Indo Barometer Executive Director M. Qodari in Jakarta on Sunday January 11 in relation to the results of a national survey on the public's knowledge and expectations with regard to the 2009 elections.

The survey was conducted in 33 provinces throughout Indonesia involving 1,200 respondents with a margin of error of around 3 percent. Respondents were chosen using a multistage random sampling method that represented the entire adult population in Indonesia aged 17 or above or already married. The survey was carried out independently by Indo Barometer.

Speaking in the Central Java city of Yogyakarta, Arie Sujito, a political observer from the University of Gadjah Mada Faculty of Social and Political Science, also predicted that the level of golput in the 2009 elections would increase compared with previous elections. This represents an accumulation of disappointment with the political parties on the part of the public.

The public believes that the political parties place more importance on extending their power rather than fighting for the interests of the people. The determination of elected legislative candidates based on a majority vote system, he said, will not correlate with a possible decline in the rate of golput because the public's disappointment with the political parties has already reached the point where it will not recover, plus they are unacquainted with individual legislative candidates.

"I predict that golput in the 2009 elections will be between 35 and 40 percent. This is reflected in the high level of golput in the election of regional heads in different parts of the country", he said.

According to Sujito, the three months left before the elections will make it difficult for the General Elections Commission (KPU) to socialise the elections adequately in order to combat the growth in golput, never mind the fact that the KPU still has to take responsibility for the heavy burden of logistical procurement. "The political parties must help the KPU carry out socialisation", he said.

Serious concerns

In the Indo Barometer survey, when respondents were asked if they thought they were enrolled to vote in the 2009 elections, as many as 67.2 percent answered "yes", 18.3 percent answered "no" and the remaining 14.5 percent answered "Don't know" or did not answer.

This phenomenon is very worrying. Never mind that it is projected that the number of eligible voters in the 2009 elections should be 172 million people, meaning that only 115.58 million people think that they are enrolled to vote while 31.48 million believe they are not and 24.94 million don't know.

By way of comparison, in the 1999 general elections, out of the 117.73 million registered voters, only 7.88 million (6.7 percent) failed to turn up on voting day. In the 2004 elections, out of a registered 148 million voters, 23.53 million (15.9 percent) failed to vote.

The Indo Barometer survey also recorded that only one half of voters (51.8 percent of respondents) actually know that the legislative elections will be held in April. As many as 25.5 percent do not know or did not answer when asked on which month the legislative elections will take place.

Responding to the survey results, KPU Chairperson Abdul Hafiz Anshary stated that they would be endeavoring to seek greater legitimacy so that voter lists can be updated even though in the past this has attracted many protests.

Anshary explained that the body collecting direct data on voters is not the KPU but the Department of Home Affairs. He compared these survey results with the achievements of the 2004 elections where out of a population of 214.8 million, 148.3 million people voted while 66.6 million did not.

Center for Electoral Reform (Cetro) Executive Director Hadar N. Gumay said they support the KPU's endeavour to renew voter enrolment lists by reopening enrolments for those who are not registered. "The elections should be orientated towards facilitating voters. Because of this therefore, it doesn't matter if [voter enrollment] is reopened", he explained.

Golput not political opposition Speaking in Jakarta on Saturday, University of Indonesia Faculty of Social and Political Science lecturer Andrinof A. Chaniago said that golput in Indonesia as genuine political oppositions is only happening in small numbers. It is the weaknesses in the system that is magnifying the size of golput.

Chaniago said that the level of golput will only be high if it also calculates those who do not care enough about or lack awareness about the goals of the elections. The other component of golput is weaknesses in the enrollment system and the updating of voter data.

Elections and Democracy League (Perludem) Chairperson Didik Supriyanto added that golput in the 2009 elections will increase because the people's growing sense of dissatisfaction is reaching a peek. Successive and scattered elections (elections of regional heads) along with the behaviour of elected political leaders has left people fed up.

Every single election brings about a mental burden because the people become involved in rivalries and conflicts. Yet the political system does no allow for voters to punish electoral participants. (SUT/RWN/DIK)

[Translated by James Balowski. The original title of the articles was "2009 elections - Potential for golput in administrative terms still high".]

Survey: Many votes may be wasted due to lack of knowledge

Jakarta Post - January 12, 2009

Adianto P. Simamora, Jakarta – With legislative elections less than three months away, voters lack knowledge about the polls and may end up wasting their vote, a survey has found.

The poll, conducted by Indo Barometer in December, found that only half of respondents knew that legislative elections would take place in April 2009. "It is extremely dangerous and could spark anarchy," Indo Barometer Executive Director Mohammad Qodari said on Sunday.

Indo Barometer surveyed 1,200 citizens in 33 provinces, with a stated margin of error of 3 percent.

The survey further revealed that only 67 percent of respondents believed they had been properly registered on the final list of voters. "This is worrying as the number indicates a high possibility of a high voter absenteeism rate," Qodari said.

There are about 172 million voters registered with the General Elections Commission (KPU) for the legislative elections and turnout is expected to reach 70 percent. Poll absenteeism was recorded at 34 million in the 2004 election.

KPU Chairman Abdul Hafiz Anshari said he shared the concerns of Indo Barometer researchers. "We are still discussing how to update the voter list without sparking public uproar," he said.

Many voters living overseas have yet to be added to the list, including those in Malaysia, where over 500,000 Indonesian migrant workers are employed.

Hafiz, however claimed that this year's registration of voters ran far smoother than in 2004.

The survey also found that 60.8 percent of respondents did not know they now must tick a party's logo or a legislative candidate's name in order for their vote to be counted and that the established method of punching ballot papers remained far more popular.

Since the nation's first elections in 1955 voters have been requested to perforate ballot papers.

The polls body is seeking a government regulation-in-lieu-of-law that will allow double marks to minimize invalid votes.

Member of the Election Supervisory Body (Bawaslu) Bambang Eka Cahyo Widodo, criticized the KPU for its poor effort to educate the public about election regulations.

"The KPU needs to run an effective campaign that will help people easily remember that the election day is April 9," he said.

The survey further found that about 40 percent of respondents did not believe the upcoming elections could improve the country's economic condition.

Wiranto confirms presidential bid

Jakarta Post - January 12, 2009

Makassar – In a highly anticipated move the People's Conscience (Hanura) Party officially named Wiranto, its leader and founder, as its presidential candidate at the party's three-day executive meeting held in the South Sulawesi capital.

"I accept and am ready for the nomination," former Indonesian Military chief Wiranto said in his acceptance speech to the cheers of regional party representatives.

A party needs at least 112 House of Representatives seats, or 25 percent of popular votes in the April legislative election, to contest the presidential election in July.

Wiranto has long argued that the electoral threshold law restricts citizens' right to run for presidency. The party has vowed to continue its fight at the Constitutional Court to revoke the ruling.

I want to become state leader, Kalla says

Jakarta Post - January 11, 2009

Adianto P. Simamora, Jakarta – Refraining from expressing his readiness to challenge the incumbent Susilo Bambang Yudhoyono in July's presidential election, Vice President Jusuf Kalla said Friday he wants to become a "state leader".

Kalla made a similar statement during his recent meeting with outspoken Golkar Party lawmaker Yuddy Chrisnandi, who then translated the remark as the vice president's readiness to contest the presidential election.

But when asked to clarify Yuddy's statement, Kalla simply said "I am a state leader now".

"As chairman of the Golkar Party, I am also a state leader. So, I am already a state leader. We all want to become a state leader," he told a weekly press briefing after Friday prayers.

When asked further whether he would join the July race as a presidential candidate, Kalla insisted, "The most important thing is I want to become a state leader".

Yudhoyono has announced his bid for a second five-year term, hinting at maintaining Kalla as his running mate in the upcoming presidential election.

In response, Kalla said in October that he would "accept any position as long as I can contribute to the development of the country." But he added that his plans for the election were subject to the wishes of Golkar.

Senior members of the party, which won the 2004 general elections, have repeatedly asked Kalla to run for president, rather than for vice president. Kalla declined the demand, saying Golkar would decide on this issue after the April legislative elections.

A series of surveys by pollsters showed Yudhoyono was still the most popular candidate in the upcoming presidential race, putting Kalla as an underdog. Kalla's poll rating was even behind Golkar cadre Sri Sultan Hamengkubowono X, who has declared his presidential bid.

There are rumors Golkar is planning on building a coalition with the Democratic Party, the United Development Party (PPP) and the National Awakening Party (PKB) and nominating the pair of Yudhoyono and Kalla in the upcoming election.

"It is just a proposal. The Golkar Party will decide the coalition only after the legislative elections," Kalla said Friday, responding to the rumors.

Political analysts attributed Yudhoyono's increasing popularity to his perceived success in running the country during his last four years in office.

Currently Yudhoyono's Democratic Party has been bombarding TV stations with ads promoting the government's success throughout its reign over the past four years.

The Golkar Party said it would similarly run a massive round of campaign advertising to prop up its popularity ahead of the legislative elections.

Kalla said all political parties could claim the success of the government in their political campaign ads because the achievements could only have been made through the hard work of the president, his deputy and all ministers.

"If an agreement between the 129 Golkar lawmakers in the House cannot be reached, how could the government have ever achieved anything?" he said.

Hanura upset by court ruling

Jakarta Post - January 11, 2009

Makassar – Leaders of the People's Conscience (Hanura) Party have grouped in the South Sulawesi capital of Makassar to discuss the Constitutional Court's ruling that requires parties to allocate their legislative seats to candidates who have won the most popular votes, rather than based on an internal hierarchy.

Hanura leader Wiranto said the party needed to change its strategy and support its legislative candidates by directly assigning them the votes they won.

"They were ready for a party list system, but suddenly the Constitutional Court changed it into an open list system. It has of course sparked anger. Therefore we need a special strategy and to help the candidates win legislative seats," Wiranto said.

During the meeting, which opened Friday and runs through Sunday, Hanura leaders will also discuss efforts to meet the elections thresholds required for a party to contest the presidential election.

LP3ES: Yudhoyono still leads in survey

Jakarta Post - January 10, 2009

A survey by one of Indonesia's top research groups has revealed that, as of December and according to public perception, Susilo Bambang Yudhoyono is the best person to lead the country.

The survey was carried out by the Institute of Research, Education and Information of Social and Economic Affairs (LP3ES) between Dec. 1 and 10, with a total of 2,490 respondents in 125 villages across the country.

LP3ES survey team head Fajar Nursahid reported that 59.5 percent of respondents consider Yudhoyono successful in improving public health; 56.3 percent say he has been successful in improving the quality of education and 36 percent say his fight against corruption is working. "Yudhoyono only lost to Megawati Soekarnoputri in the eastern part of the country," Fajar said.

Most complaints about Yudhoyono's administration, Fajar said, were over his inability to control food and fuel prices. However, such perception has likely shifted in the last few weeks, following the government's decision to lower fuel prices as global commodity prices slump. (and)

Megawati plays down survey results

Jakarta Post - January 10, 2009

Aziz Tunny, Ambon, Maluku – Indonesian Democratic Party of Struggle (PDI-P) leader Megawati Soekarnoputri said Friday she was not phased by a number of surveys which predict a rematch between her and Susilo Bambang Yudhoyono in the presidential election run-off later this year.

Megawati, speaking prior to hosting a function with community and religious leaders in Ambon, said the survey results did not reflect the real aspirations of the public and would change over the coming months.

"I respect the surveys conducted by a number of pollsters. But they cannot serve as the truth for which candidates will win the election," Megawati said.

The latest survey conducted by the Institute for Economic and Social Information, Education and Studies (LP3ES) saw Yudhoyono win the most support overall, though respondents in eastern Indonesia rallied behind Megawati.

Megawati said candidates could benefit from the surveys by using them as motivation to win wider public support.

"A survey could conclude that Susilo Bambang Yudhoyono will win the election, but that does not absolutely guarantee he will," said Megawati, who is searching for a running mate.

The PDI-P is optimistic of winning both the legislative and presidential elections following the results of regional elections in the past three years. The party won 10 gubernatorial posts, including in Maluku, the highest among major political parties contesting the legislative elections.

Megawati, then the incumbent, lost to Yudhoyono by 20 percent of the vote in the 2004 presidential election. A number of survey institutes had predicted Yudhoyono would win in a landslide victory.

The same pollsters revealed in their most recent surveys that Yudhoyono's Democratic Party topped the list with the PDI-P in second place. In the previous surveys Megawati's party had always topped the standings, mostly because of the Yudhoyono administration's decision to significantly raise fuel prices. Last December, however, the government lowered the prices twice.

In a Christmas and New Year's celebration on Thursday night, Megawati promised to uphold pluralism and maintain peace if she was re-elected. "Without peace and mutual respect our Indonesian nation cannot achieve welfare," Megawati told party supporters.

She expressed relief Maluku had quickly regained peace after sectarian clashes between Muslims and Christians raged from 1999 until 2001. Under the Megawati administration, then coordinating minister for people's welfare Jusuf Kalla mediated a peace agreement in Maluku and the Central Sulawesi town of Poso.

The Ambon event was part of Megawati's campaign trail to woo public support for herself and the PDI-P ahead of the legislative elections in April and presidential election in July. She visited the Sulawesi capital of Makassar, the West Papua capital of Manokwari and the Papua town of Mimika.

NU ulema to take election stance

Jakarta Post - January 10, 2009

Semarang – Around 300 ulema from Nahdlatul Ulama (NU), Indonesia's largest Muslim organization, will gather in Semarang, Central Java, on Monday to draw up election recommendations for the government.

The ulema are concerned about "disruptions" in the preparations for the April legislative elections, senior NU cleric Mahfud Ridwan said in a press statement Thursday.

He said another problem was confusion among Muslim voters over conflicting stances taken by their leaders regarding the 2009 elections. One group, led by former president Abdurrahman Wahid, has called for a boycott of the elections while another faction has declared that failing to vote is haram, or forbidden by Islam.

"This situation – if allowed to continue – will increase public apathy and could threaten the success of the elections," Mahfud said.

The meeting aims to reach a "final stance" for the NU about the upcoming elections and issue recommendations on this issue to the government.

The one-day meeting, to be held at the Edi Mancoro Islamic boarding school in Semarang, will be attended by 300 clerics from across Indonesia.

Transport & communication

Indonesia ferry disaster illustrates transport woes

Reuters - January 13, 2009

Sara Webb and Olivia Rondonuwu, Jakarta – Take a ferry in the vast Indonesian archipelago and there's a good chance your name won't show up on the manifest. Foot passengers often buy tickets on board, while car passengers are sometimes not recorded by name.

Indonesia's latest ferry disaster – more than 200 people are missing after the Teratai Prima capsized and sank in a storm on Sunday – suggests the government still has a long way to go to improve safety standards in its creaking transportation system.

Officials have blamed bad weather for the ferry tragedy, raising questions over why the boat was allowed to sail from Sulawesi island for the city of Samarinda in East Kalimantan. There are also discrepancies over the passenger list, suggesting more people were on board than the official tally of 267.

But the issue goes well beyond basic safety standards for the millions of Indonesians who travel across the 17,000 or so islands sprinkled over a distance of 5,000 km (3,100 miles).

Poor infrastructure – whether rustbucket ferries or badly maintained railways and roads – is a burden. It adds to the cost of doing business, hampers tourism and ultimately hurts growth in Southeast Asia's biggest economy.

"It's all about governance, this has been going on for years," said Erman Avantgarda Rahman, director of economic programmes at the Asia Foundation in Jakarta. "It shows the poor quality of infrastructure, they don't control the number of passengers... the quality of the boats."

Lack of funding, poor law enforcement, crime and corruption are among the contributing factors to Indonesia's many transport accidents, according to officials.

Increasing incomes mean more Indonesians can afford to buy cars, motorbikes or travel by air, yet investment in the underlying infrastructure has not kept pace.

Rail accidents are sometimes caused by theft of track. Ask any Indonesian if they sat a proper driving test or paid a bribe for their licence and the answer is often the latter. Transport Ministry statistics show there were more than 48,500 road accidents in 2007, resulting in at least 16,500 deaths.

Shake-up needed

Transport Minister Jusman Syafi'i Djamal, appointed in May 2007 after a spate of ferry and aviation accidents, promised a shake- up of the sector with a "roadmap to zero accidents".

The number of major ferry and aviation accidents has fallen in the past year. But Djamal himself admitted this week that when it comes to the maritime sector, only 40-50 percent of the work has been done and problems with small and medium-sized shipping lines persist.

"The next step is to strengthen the port authority, especially in giving sailing permission," he said. "There is more to be done. What we haven't done is to establish a harbour master authority, to advise how to manage ports and shipping routes."

Two days after the latest ferry accident, discrepancies over the passenger list have emerged.

Teddy Sutedjo, director of operations and training at National Search and Rescue Agency, said the manifest showed 250 names but that checks so far showed 88 people who were believed to have been on board the ferry were not on the manifest. "Maybe there are some people that used somebody else's name to get on board," he said.

Tourism risk

Indonesia's last major civil aviation accident was in March 2007 when a Garuda Indonesia passenger plane crashed in Yogyakarta in Central Java, killing more than 20 passengers. The crash followed a string of disasters, prompting the European Union to ban all Indonesian airlines from its airspace.

The ban has had a direct impact: it means the national carrier, Garuda Indonesia, cannot fly to Europe while all travellers from Europe who fly to Indonesia are notified by travel agents of the danger of flying on Indonesian carriers. Some hoteliers say this has deterred many Europeans from travelling within Indonesia.

Last month, Indonesia's parliament passed a new aviation law setting up an independent commission that would report to the president and carry out investigations into aviation accidents. The European Commission called the law a "significant development for the improvement of air safety in Indonesia".

[Reporting by Olivia Rondonuwu, Telly Nathalia and Dicky Kristanto in Jakarta and Yusuf Ahmad in Pare-Pare; Writing by Sara Webb; Editing by Ed Davies and Dean Yates.]

Indonesia admits maritime failings

Financial Times - January 13, 2009

John Aglionby, Jakarta – Indonesia admitted yesterday that it had undertaken fewer than half the reforms planned in the past four years for its maritime sector, after a ferry sank with more than 260 people on board.

Jusman Djamal, transport minister, said 245 people were missing after the Teratai Prima, went down in a hurricane en route from Sulawesi island to Borneo on Sunday. There were 22 survivors, including the captain, but no bodies had been recovered.

Mr Jusman said the planned creation of harbourmaster and port authorities, and reform of services implementation, were three examples of measures awaiting action. "We've done about 40 to 50 per cent of what we need to do," he told a press conference held after the latest ferry accident.

Ships are the only means of transport for tens of millions of Indonesians, particularly in the eastern half of the 17,500- island nation. But inadequate regulations and poor enforcement mean sinkings are common.

Experts in the maritime sector believe the minister's figures for action taken are probably an overestimate. "If accidents don't happen it's by luck, not by design," said one port operator.

Parliament passed a sea transport law in May that tightened rules and ended the state monopoly on port management. But the accompanying regulations have not been published, meaning much of the legislation cannot be implemented.

A port operator, who asked not to be identified, said the new law would have little impact on safety at sea. "The real problem is how the [authorities] organise themselves," he said.

Bambang Susantono, head of the Indonesian Transportation Society, a nongovernmental organisation, said devolution of responsibilities to inadequately trained local officials and a lack of resourceswould lead to frequent accidents.

"Bad weather can always happen and that can't be controlled," he said. "But too often the authorities aren't competent and shipowners and operators don't prioritise safety, so when accidents do happen the number of casualties is much higher than it could have been."

Almost 250 feared dead in Indonesia ferry disaster: minister

Agence France Presse - January 12, 2009

Around 250 people missing after a ferry capsized in heavy seas off Indonesia's Sulawesi island are probably dead, officials said Monday as bad weather hampered the grim search for survivors.

Transport Minister Jusman Syafii Djamal said there was little hope any of the missing passengers and crew would be found alive in heavy seas more than 24 hours after the 700-tonne ferry sank off western Sulawesi. "It seems that due to the weather conditions the chance is little, but we still hope," he said.

He said 22 survivors had been rescued including the captain and 17 passengers but there was no sign of almost 250 other passengers and crew who were on board when the Teratai Prima when it listed and sank early Sunday.

"We have intensified the search this morning. Eight patrol boats from provincial search and rescue teams are already in the area and the navy as well as the air force are also involved in today's search," the minister said.

Indonesians generally do not swim and survivors said most passengers were asleep when the ship suddenly lurched to one side and flipped over as it was bashed by waves of up to four metres (13 feet).

The ferry, operated by a private company, was about 50 kilometres (30 miles) off Majene, western Sulawesi, when authorities lost contact with it around 2:00 am on Sunday morning (1800 GMT Saturday). It was sailing from Pare-Pare in South Sulawesi to Samarinda in East Kalimantan.

Survivor Yulianus Mangande, 29, said he was awoken by a loud noise and had little time to react before the ferry overturned around 3:30 am.

"I felt that the ferry was listing to the left, then suddenly it turned upside down. I had to swim in the dark in heavy seas until the morning," he said, adding that he was found by fishermen around 11:00 am.

Rudi Alvian, 17, said he survived by clinging to a bunch of bananas. "I was below deck. A bunch of bananas belonging to other passengers helped me float until I found a lifeboat," he said.

"We were travelling in bad weather from the time we started to sail," he said.

Navy spokesman Rear Admiral Iskandar Sitompul said high seas were continuing to hamper the search for survivors.

"Two warships and one Nomad patrol aircraft from the navy are off West Sulawesi scouring for survivors. A team of 40 marines with two rubber boats are also involved in the search this morning," he said.

Sulawesi and Borneo islands have been lashed by storms, heavy rains and high winds for days. The tropical wet season has caused flash flooding across much of the country.

Ferry transport is crucial in Indonesia, a massive archipelago of some 17,000 islands and 234 million people. The government has repeatedly vowed to improve safety standards but sinkings are common.

In December 2006 more than 500 people were killed when a ferry sank in a storm off the coast of Java.

Armed forces/defense

Military asks for higher budget

Jakarta Post - January 14, 2009

Jakarta – Defense Minister Juwono Sudarsono has asked for Rp 460 billion in extra funds to help the Indonesian Military (TNI) conduct operations related to maintaining territorial integrity.

He is proposing the finance ministry allocate an additional Rp 460 billion for this fiscal year. Hopefully the budget will cover our needs in safeguarding the country," Juwono told a press conference after a meeting with TNI chief Gen. Djoko Santoso.

The House approved a Rp 33.6 trillion defense budget for 2009, the lion's share of which went to soldiers' welfare.

Djoko said the TNI had prepared a contingency plan if the request was denied.course we will cut the budget for ceremonial events and allocate more money for priority expenditures," he said.

Foreign affairs

Australia, Indonesia sign security deal

Australian Associated Press - January 12, 2009

Australia has signed a joint statement with Indonesia to build a more secure and peaceful region, Australian Defence Force chief Angus Houston says.

Air Chief Marshal Houston co-signed the statement with his counterpart, Indonesia's commander in chief of Armed Forces, General Djoko Santoso, on Monday.

The signing builds on an "already strong defence relationship", the statement from Defence says. "Australia is committed to working with Indonesia as a partner to build a secure and peaceful region," Air Chief Marshal Houston said.

The joint statement symbolised the relationship between both countries and a "clear direction" for future cooperation, he said.

The statement outlines Australia's support for Indonesia in areas of counter-terrorism, maritime security and intelligence as well as humanitarian assistance.

Economy & investment

Indonesia central bank says may ease bank lending rules

Reuters - January 15, 2009

Jakarta – Indonesia's central bank may ease regulations covering non-performing loans in order to make it easier for banks to increase their lending, a central bank deputy governor said this week, part of wider measure to spur growth.

Muliaman Hadad declined to give details of the possible revisions, as these are still being discussed by Bank Indonesia.

However, he said that the revisions would probably affect ways of calculating commercial banks' risk-weighted assets, and would take into account borrowers' business prospects and ability to service debt.

"I expect there will be more room for banks to extend loans," Hadad said. "We cannot just sit on our hands, we have to make some efforts," he told reporters on Wednesday, adding that the revisions are due to be announced on Jan. 30.

The authorities have taken several steps to spur growth in Southeast Asia's biggest economy amid a global slowdown.

The central bank cut its key interest rate by 50 basis points to 8.75 percent on Jan. 7, and has said it may cut rates again to spur growth. But commercial banks have been slow to follow suit.

Bank Indonesia forecast economic growth this year would slow to between 4 and 5 percent from an estimated 6.2 percent in 2008, amid slowing global demand for Indonesia's commodities and minerals.

The central bank had forecast loan growth to slow to 18-20 percent this year from an estimated 30 percent in 2008. As of November 2008, non-performing loans stood at 4 percent, the central bank data showed.

Government slammed for unrealistic unemployment, poverty targets

Jakarta Post - January 14, 2009

Desy Nurhayati, Jakarta – Experts have criticized the government for claiming they will continue to drive down unemployment and poverty rates despite data showing the global financial crisis is due to hit Indonesian industries hard and lead to mass layoffs.

The Manpower Ministry recently announced more than 42,000 workers had been laid off as labor-intensive export industries shut down operations amid the global economic turmoil.

The Indonesian Rattan Furniture and Craft Producers Association (AMKRI) has announced the industry may have to lay off nearly 35,000 workers in the early part of this year while the Indonesian Textile Association (API) predicts around 120,000 layoffs will occur next year.

Chairman of the Indonesian Employers Association (Apindo) Sofyan Wanandi said the global crisis had forced industries to reduce their production capacities by up to 30 per cent, meaning at least 500,000 workers could be jobless by mid-2009.

Despite the gloomy forecast from business experts, the government has drawn on entirely separate data to optimistically claim they will continue to drive down unemployment and poverty rates this year after having reduced levels in 2008.

Coordinating Minister for People's Welfare Aburizal Bakrie said last week Indonesia's unemployment rate dropped from around 10.55 million in 2007 to 9.43 million people in 2008.

Despite warnings, the government outlined its ambitious target to reduce the unemployment rate to seven million people and slash poverty from 35 million people to 31 million people.

"The targets are unrealistic and too ambitious. As part of the global economic system, the government should have considered the external factors that are guaranteed to affect Indonesia's financial condition," Maxensius Tri Sambodo of the Indonesian Institute of Science (LIPI) said.

Maxensius argued unemployment rates will actually escalate due to mass layoffs, which will in turn see a spike in poverty levels. Even though subsidized fuel prices were slashed twice last month, and the government is considering further cuts depending on global prices, the impacts of the crisis will be felt as unemployment rises.

"Poverty rates will increase, not because of commodity prices but due to massive layoffs and loss of income. This in turn will weaken consumer spending," he said, adding that a government failure to successfully enact anticipatory measures would cause an even greater downturn.

Aburizal said the government's various poverty-reduction programs, including direct cash aid (BLT), the Mandiri National Community Empowerment Program (PNPM Mandiri) and credit for small and medium enterprises (KUR) would help keep unemployment and poverty rates low.

Drajad Wibowo, an expert and member of the House of Representative's Commission XI overseeing economic issues, said the government's targets were a little over-zealous but were calculated using dubious and unreliable data from the Central Statistic Agency (BPS). "You can play around with data but not with reality," he said.

Drajad said state programs such as KUR and PNPM might aid in boosting the government's political image but would provide few remedies for the economy.

With the elections fast approaching, issues of poverty and unemployment have been capitalized by the government to draw voters while opposition groups have politicized the situation to attack the incumbent government.

An Indo Baramoter poll conducted last month however revealed many voters were pessimistic the elections would have any impact improving economic conditions.

According to the survey, around 60 percent of respondents were unsure whether the elections would reduce unemployment rates while nearly 50 percent did not believe the elected government could decrease the price of basic commodities.

Indonesia's consumer confidence falls in December - Surveys

Reuters - January 13, 2009

Jakarta – Indonesia's consumer confidence fell slightly in December, mainly because of concerns about job losses amid the global economic crisis, two surveys showed.

The economy and jobs are among the key issues for voters in the run-up to parliamentary and presidential elections this year.

While the official unemployment rate has fallen to around 8.5 percent, millions in a population of 226 million are considered under-employed, or live on less than $2 a day.

"The perennial problem of job scarcity continues to trouble consumers," state-owned Danareksa Research Institute said in its survey.

"With the economic downturn starting to build momentum, consumers harbour increasing doubts that the economy will be able to generate sufficient jobs going forward."

Danareksa surveyed 1,700 households across six provinces and the results showed declining sentiment, with the index falling to 78.6 in December from an 11-month high of 81.3 in November.

A separate central bank survey of 4,600 households in 18 cities across Indonesia, obtained from its website www.bi.go.id on Tuesday, showed that its consumer confidence index fell to 90.6 in December from a reading of 96.3 in November.

For both surveys, a reading of below 100 means consumers are pessimistic. The last time the index was above 100 was in November 2007 for the central bank survey, and in February 2005 for the Danareksa survey.

The government has cut fuel prices three times in six weeks, and has announced plans to spend more than 72 trillion rupiah on infrastructure and other projects to boost growth and create jobs in Southeast Asia's biggest economy. The central bank has cut its key interest rate twice since early December to drive growth.

Finance Minister Sri Mulyani Indrawati on Tuesday revised the economic growth forecast in the 2009 state budget to a range of 4.5-5.5 percent, from 6 percent previously and down from an estimated 6.2 percent in 2008.

But economists say Indonesia needs to maintain growth of at least 6 percent in order to create jobs. The last time Indonesia faced a severe economic crisis, in 1997-98, widespread job losses led to social unrest.

Local media had reported on Jan. 7 that up to 700 workers had been laid off so far this year, bringing the total since November to almost 25,000.

Indonesia revises up fiscal deficit, seeking growth

Reuters - January 13, 2009

Muklis Ali, Jakarta – Indonesia raised the forecast for its 2009 budget deficit to 2.5 percent of GDP on Tuesday, from 1 percent previously, as the government seeks to counter the global economic downturn in an election year.

Finance Minister Sri Mulyani Indrawati, who has announced plans to spend more than 72 trillion rupiah ($6.53 billion) on infrastructure and other projects to create more jobs, said the government would rely more on official creditors to finance the bigger deficit. She gave a revised deficit forecast of 132 trillion rupiah.

Last month, she said that Indonesia had lined up standby loans from Japan, Australia and agencies such as the World Bank, projected to reach $5 billion.

Anggito Abimanyu, head of the finance ministry's fiscal policy board, said earlier on Tuesday that the government had no plan to increase its target for debt sales this year despite a higher budget deficit, and would maintain its net bond issuance target at 54.7 trillion rupiah.

Indonesia's finance ministry, which scrapped debt sales in October because of the global financial crisis, raised 5.95 trillion rupiah in a bond auction on Tuesday, almost double its target, which analysts took as a sign of improving investor confidence in Southeast Asia's biggest economy.

"The financing of the deficit is a key issue," said economist Anton Gunawan of Bank Danamon, adding that the government needs to "convince the markets that it will be able to secure larger official loans and not seek more funds from the market."

Indrawati said the government has revised several other key economic forecasts in the 2009 state budget "in response to challenges arising from slowing global economies and drastic changes in some economic indicators."

These include a new average rupiah exchange rate of 11,000 per dollar, against 9,400 per dollar previously, while the oil price is now forecast to average $45 per barrel, against $80 per barrel.

The state budget forecasts for 2009 were approved late last year, but the revisions will need to be approved by parliament.

Indonesia has announced several measures to spur growth which the government said could slow to 4.5-5.5 percent in 2009 from an estimated 6.2 percent in 2008.

"Extra spending and abandoning fiscal consolidation as a policy priority is within expectations. Indonesia has some fiscal legroom to cushion the economy with extra spending," said Christy Tan, Singapore-based currency ctrategist at Bank of America.

Indonesia set rules for commodity exports, protects currency

Reuters - January 10, 2009

Jakarta – Indonesia will require commodities exporters to use letters of credit issued by local banks in future, to make sure that foreign exchange remains onshore, the trade minister said on Friday.

Indonesia has taken several steps to try to reduce capital outflows and lessen the impact of a world economic crisis.

The latest moves would force exporters to keep the foreign currency proceeds with a bank onshore, where the money would be subject to restrictions such as how much can be converted and transferred offshore.

"The regulation aims at keeping the flow of foreign exchange revenue fast and smooth," said Trade Minister Mari Pangestu.

Exporters of coffee, crude palm oil, cocoa, rubber and mineral products, including refined tin, must use letters of credit starting from March 5, the minister said.

"Letter of credit proceeds must go through and must be received by onshore banks," Pangestu told reporters.

"The requirement will also guarantee that exporters receive payment from buyers," she said, referring to cases where buyers have refused to pay on the arrival of a shipment because the commodity price has fallen.

Indonesia is one of the world's main producers of palm oil, rubber, coffee, cocoa, tin, nickel and coal. Prices for commodities including crude palm oil and tin have tumbled from their peaks due to weaker demand.

Many Indonesian exporters have cancelled shipments of commodities, including palm oil and rubber, after buyers failed to pay up because of the sliding in prices. (Reporting by Yayat Supriatna, writing by Fitri Wulandari, editing by Sara Webb)

New policy to protect exporters, but may spook buyers

Jakarta Post - January 10, 2009

Mustaqim Adamrah, Jakarta – While a new export regulation will help cover local firms from risk of payment default, several business associations say it may spook potential overseas buyers of the country's key commodities.

Trade Minister Mari Elka Pangestu said Friday a new ministerial decree, issued Monday, would require the use of letter of credits (L/Cs) for export transactions for raw mining and plantation commodities.

"The regulation is designed to improve discipline in trade, to support natural resource conservation programs and to smooth the inflow of foreign exchange," Mari said.

"The L/C requirement will cover natural resource products that have not been processed. This includes coffee, cacao, crude palm oil [CPO], natural rubber and mining products such as tin billet." The policy will cover all raw mining commodities.

An L/C is a contract usually issued by a bank that, in most cases, binds a beneficiary to make the payment stipulated in the letter.

Indonesia, rich in metals and agricultural produce, is heavily dependent on exports of commodities, and is among the world's biggest producer of CPO, rubber, cacao, coffee and tin.

Mari said the regulation, which also involved other ministries and was finalized by the Coordinating Ministry for the Economy, would not come into effect for another two months so as to provide some time for exporters to adjust.

She also said the regulation was supported by a trade financing insurance scheme provided by the government, and would serve as an additional guarantee for exporters trying to penetrate new markets or dealing with new foreign buyers.

"The global financial crisis enhances the risk of payment failures [in global trade]. We can reduce this risk by improving our [trade] insurance system," she said.

The government is drawing up a trade financing insurance scheme for newly established export financing agency LPEI to execute.

However, several business groupings have opposed the policy, saying it would discourage foreign buyers by burdening them with extra costs and efforts.

The critics have said the policy would hamper their efforts to woo new buyers in nontraditional importing countries as it generally takes time to build trust before a corresponding bank in the buyers' country agreed to affiliate with Indonesian banks in providing the L/Cs.

Indonesian Coffee Exporter Association secretary-general Rachim Kartabrata said most coffee exporters preferred cash rather than L/Cs to settle with foreign buyers.

"This regulation will force our foreign buyers to redirect their orders to Vietnam – our main rival – for practical reasons unless that country applies a similar policy," he said.

Indonesia's 2009 vehicle sales seen down 30 percent - Toyota

Reuters - January 9, 2008

Jakarta – Indonesia's domestic vehicle sales are expected to fall 30 percent in 2009 from a record high in 2008, due to tight domestic liquidity and slower economic growth, PT Toyota Astra Motor said on Friday.

Most automotive sales in Indonesia are financed by loans. Business has been hurt as interest rates peaked late last year and as banks and finance companies became less willing to lend amid a global financial crisis.

"Liquidity in the market has gone, or is very, very limited," said Johnny Darmawan, president director of Toyota Astra, in an interview on Indonesia's Metro TV. Toyota Astra is the distributor of Toyota cars in Indonesia and the market leader in the Southeast Asia's biggest economy.

Darmawan said that total domestic vehicle sales from all makes reached an estimated 607,000-608,000 units last year, the highest annual volume, but warned that the situation would deteriorate this year. "In 2009 it will be very tough, I think a 30 percent drop is possible," he said.

Indonesia's economy is expected to grow by 5 percent in 2009, slowing down from 6.2 percent in 2008. Indonesia's central bank, Bank Indonesia, cut its benchmark interest rate by a bigger-than-expected 50 basis points to 8.75 percent this week in an attempt to spur economic growth. But typically commercial lenders are slower to pass on the lower interest rates to borrowers.

Toyota Astra is jointly owned by Japan's Toyota Motor and Indonesia's largest automotive distributor, PT Astra International Tbk.

People

Usman Hamid: Going the extra mile

Jakarta Post - January 14, 2009

Matheos V. Messakh, Jakarta – Even though he still strives to be a political activist, Usman said Munir was the one who "dragged" him into campaigning for human rights in the first place.

"He was and still is the flame of the movement.... He acts as a light for me to see and understand complex problems. But now the fire is gone," Usman told The Jakarta Post in an interview.

"We just try to keep the flame alive in our hearts. He was the one who took all the risks behind the scenes of the turbulent transitional politics at the time."

Usman met Munir for the first time at a memorial service for those shot by the military in the May 1998 Trisakti tragedy.

In his final year at the Trisakti University School of Law, Usman began joining student demonstrations on campus at a time when political instability was reaching its zenith. He was still not sure exactly what he was doing and was too frightened to wear his student jacket when participating in a protest.

But the military brutality on May 12, 1998, in which four Trisakti students were killed, removed all his doubts.

Usman began getting involved in many demonstrations and political discussions both at the campus and in public places, changing from a member of religious and cultural groups to an activist by May in what he called "a month of upheaval for my heart and mind".

It was inevitable that he eventually came in contact with the Commission for Missing Persons and Victims of Violence (Kontras) led by Munir. Today, Usman, now 32, runs the organization.

Usman said Munir opened his eyes to many things, especially the military politics and fragmentation that had capitalized on exploiting religious sentiments.

"The more I got to know Munir, the more I believed he was the right person [to lead Kontras], despite many people trying to mislead me about him.

"He was the brightest man around who saw the political problems facing Indonesian at the time, including within the military and student movements."

This revelation led to Usman rejecting an offer to join the military to be an officer, a position offered to him through a special entry scheme devised by a high-ranking military figure.

He nearly changed the topic of his near-completed dissertation from agrarian reform to political reform, but the university prevented him.

He had chosen agrarian reform as his major because many of his relatives back home in Bogor, West Java, had been forced to become peasant workers on land they had once owned. "My family's problem was part of the wider political problems in Indonesia. The profession I chose is more than a job, it is my whole life," he said.

After Usman graduated in September 1999, Munir offered him a position in the public opinion division. Usman was unhappy there and asked to be moved to the legal division where his education could be more effective.

At this request, Munir took out his own legal practicing license and said it was useless in a country where the judicial system was run by the mafia.

"He said to me, 'I need you as an activist not as a law scholar. The important thing is working out how to mobilize public opinion and attitudes. If the people are aware of militarism, the resistance will get stronger. It's like opening the authoritarian seal to our eyes'."

But Munir's death in 2004 made everything much harder. Threats, which had been part of his life since 1998, became worse. First, there were phone calls, then anonymous letters and people sideswiping his car. The constant state of anxiety took a toll on his health: "I have seven different cards from different hospitals," he said.

The death of his mother, Halimatus Sa'diyah, in March 2007 was another big loss for him. Usman, the ninth of 10 children, had been taking care of his mother alone since his father passed away in 1990 at the age of 74. "She was my power, she really gave me love," he said.

His mother made many sacrifices for him, putting aside money she earned from running Koran recitals to pay for his tuition. Usman's father, Abdul Hamid, had refused to pay because he wanted his son to attend an Islamic boarding school. His parents' different political backgrounds taught him that democracy begins in the home. His mother was an activist for the Golkar Party while his father rallied for the Development Unity Party.

It was their influence, Usman said, that led him to refuse many offers from political parties to join them following the 2004 election.

"My parents helped many people through their activities in political parties but they didn't want to become politicians. We can do a lot without being a politician."

The acquittal of Maj. Gen. (ret) Muchdi Purwopranjono of all charges relating to the murder, he said, demonstrated the judges' narrow-mindedness and lack of professionalism.

"If the case involved intelligence, you had to have knowledge about that intelligence. This case was a judicial failure in overseeing intelligence."

Although he lacks faith in the legal system, Usman said Kontras would use all legal means possible to put Muchdi back on trial.

Munir's case, he said, was a symbol of the complexity of the nation's structural problems. As with all cases of gross human rights violations, there will always be hurdles. "Even if we solved Munir's case, that doesn't mean we can solve everything. There is still a long way to go."

What helps him is the ray of hope he finds among survivors and family members of victims in every case he and his colleagues deal with.

"... there is always hope. You should have courage to live just like you have courage to die. I believe what I'm doing is right and it will bear fruit in the future."

Analysis & opinion

Withdrawn testimony undermines justice

Jakarta Post - January 15, 2009

Frans H. Winarta, Jakarta – The withdrawal of testimony by a witness in a criminal proceeding often occurs without any reaction from the court. The panel of presiding judges rarely ask for the reasons for the reversal and fail to unveil the motive behind the withdrawal of testimony.

In fact, material truth is the whole objective of any proceeding in a criminal case. Moreover, Article 108, paragraph 2, of the Indonesian Criminal Code is explicit:

"Anyone who has knowledge of any evil plot to commit a crime against the public's peace and security or against a human life or a possession, must immediately report such a matter to an examiner or investigator."

In addition, witness testimony in a criminal case is compulsory, not voluntary, as opposed to witness testimony in a civil case. An identified witness in a civil case may choose not to continue to be a witness and the court cannot force her or him to do otherwise.

A witness in a criminal case does not have that option. Should that witness not appear to give testimony, the court can force him to do so, as regulated in Article 112 of the Indonesian Criminal Code. If a witness (including an expert or a linguist) refuses to appear, they may be charged under Article 216, paragraph 1, Article 224 and Article 522 of the Indonesian Criminal Code.

A criminal proceeding is done in the name of justice (pro justitia), so the presiding judges' sincerity is absolutely required. Therefore, the withdrawal of witness testimony in a criminal case should invoke the full attention of the Supreme Court.

The presiding judges must also address any reversal seriously and question the motive for the witnesses to do such a thing.

If the reason is threat or intimidation of the witness, then such withdrawal must be denied and the panel of judges must continue to use that testimony as part of the official evidence in deciding the case, especially if that testimony was given under oath.

The fact that such withdrawals have been so easily accepted gives the impression that trial proceedings are not taken seriously. Justifiable reasons for disallowing testimony include situations in which the testimony was originally given under duress, intimidation, violation of the law or persecution.

Recently, the withdrawal of one witness' testimony occurred again, namely in the trial of suspect Muchdi P.R., charged with directing the murder of rights activist Munir. That withdrawn testimony should not have gone unremarked by the presiding judges, especially since the charge was premeditated murder, as regulated under Article 340 of the Indonesian Criminal Code.

An accusation of premeditated murder is a serious one and a witness in such a case cannot be given the latitude a witness in a civil case may have.

That withdrawn testimony may be extremely vital in the pursuit of Munir's murderer, so the action should have led to questions from the judges as to the motive and reason behind the withdrawal.

If unquestioned, withdrawn testimony could become a norm, criminal proceedings, a laughingstock. It requires initiative and creativity on the part of judges to reveal causes for a witness backing down.

If the causes remain unclear, the presiding judges are in fact free to use that testimony as the legal consideration and fact in making a correct and fair decision, after the testimony of the prosecution's witnesses are confronted with those of the defendant's witnesses because the objective of any court decision is to seek material truth and justice.

In addition, as of this moment, some serious thought should be put into how to protect judges from threats by the parties in the case or by other parties – and not just for terrorism cases – so any trial, particularly sensitive ones, can proceed safely and the security of the judges upheld. Then the judges can hand down a decision free from any outside influence and pressure.

Protection of judges should be extended beyond terrorism cases, as has already been spelled out in national regulation 24/2003 on procedures for the protection of witnesses, investigators, prosecutors, and judges in crimes of terror. The murder of judge Syafruddin Kartasasmita several years ago was a bad precedent for Indonesia's judiciary and it showed a judge's life could be imperiled in cases other than terrorism.

To avoid any kind of repetition, there needs to be a protection mechanism for judges who preside over sensitive cases such as crimes against humanity, genocide, war crimes and so forth. With that kind of protection, judges will no longer be reluctant to hand down fair decisions, free from any outside influence and threat.

[The writer is an advocate and a lecturer at the Law Faculty of Pelita Harapan University.]