Muhamad Al Azhari – The government says the national poverty rate has fallen due to steady economic growth, stable prices for staple foods and the impact of the economic stimulus package, rather than the effect of the direct cash assistance scheme for poor families.

The scheme, also known as the BLT, was singled out earlier in the week as the main reason for the declining national poverty rate.

Data released by the Central Statistics Agency (BPS) on Wednesday showed the poverty rate at 14.15 percent of the total population in March 2009, or 32.53 million people. This was down from 15.42 percent in March 2008, equivalent to 34.96 million people.

Drajad Wibowo, a legislator from the National Mandate Party (PAN) and a member of House of Representatives Commission XI overseeing the state budget, said the poverty rate had fallen due to what he described as the "artificial effects of the BLT."

Shortly before the campaign season for the legislative elections began in March, the government disbursed Rp 3.7 trillion ($363 million) to 19 million families as part of the last phase of the BLT payments.

Families eligible for the BLT program each received Rp 200,000 in direct cash assistance. The timing was criticized, however, for coinciding with the current government's election campaign.

But Paskah Suzetta, the head of the National Development Planning Board (Bappenas), told a Commission XI hearing on Thursday that the decline in the poverty rate had little to do with the cash handouts.

"The poverty rate fell more because economic growth has remained steady," he said. "In 2008, it was at 6.1 percent and in the first quarter of 2009 it was at 4.4 percent year-on-year. A number of government programs designed to anticipate the impact of the global economic slowdown have been implemented well."

Paskah said manageable inflation, which led to stability in basic food prices, also helped to improve living standards for the country's poor.

Rusman Heriawan, the head of BPS, said the impact of the direct cash assistance scheme on the national poverty rate was limited, compared with other government programs that had a significant effect.

Rusman said that the combined government social safety net program helped families that had been living under the poverty line.

BPS classifies households that earn less than Rp 200,262 per capita per month as "poor." The classification was raised from Rp 182.636 per capita per month in last year's calculations.

The Rp 200,262 per capita per month figure was considered to be sufficient to meet the individual need for 2,100 calories per capita per day.

"Even if you don't work, but you can still get the required 2,100 food calories needed per day, you will not be included in the official definition of what it means to be poor in this country," Rusman said.

Chief: police not to hesitate crushing separatists

Antara News - July 3, 2009

Sukabumi, West Java – National Police Chief General Bambang Hendarso Danuri said police would act firmly against anyone intending or trying to break up the unitary state of Indonesia.

During his visit to a police officers' school here Danuri said he had already ordered the force's rank and file across Indonesia to take firm action against GPK (separatist groups).

"GPK must be wiped out because they can break up the unitary state of Indonesia. And we will not hesitate to act firmly against them," he said.

He said an example of the police's firm action was given in a recent incident in Yapen Waropen in Papua where police shot four members of the separatist Free Papua Organization (OPM) for deliberately raising their Morning Star flag on the 43rd anniversary of the police force last July 1.

"We will not be selective. We will act firmly against anyone wishing to break up the unitary state of Indonesia. In doing so, however, certain standard operation procedures apply," he said.

Danuri said the unitary state of Indonesia was fixed and it had to be maintained indefinitely. "It is assigned duty to safeguard the unitary state of Indonesia and we will carry it out on an indefinite basis." he said.

Therefore, he called on all the people to work together to that end.

Indonesia faces population explosion, official says

Jakarta Post - July 2, 2009

Jakarta – Imagine Indonesia with a population of 470 million, nearly half a billion by 2060. Or perhaps this would be easier to picture: Jakarta with 24 million people by then. Nice and cosy?

That is what the country faces if the government – and also the citizens – fail to curb the annual rate of population growth, now reaching 1.3 percent.

"Ideally the growth rate should be reduced to 1.14 percent," said Ida Bagus Permana, head of the center for research and development of the National Family Planning Coordination Agency (BKKBN), recently.

If the 1.3 percent growth rate prevails, the population would jump from 235 million in 2010 to 470 millions by 2060 and 940 million by 2110, doubling every 50 years, said Permana.

It is feared Indonesia could face a population explosion, says Permana.

Over 200 years, the population of Indonesia has steadily grown from 18.3 million in 1800 to 40.2 million in 1900, to 205.8 million in 2000.

Over the past nine years, the population went up from 205 million to 230 million, he said, in a seminar on the statistical assumptions and framework for the National Development Planning Agency (Bappenas) medium-term plan for the period 2010-2014.

Permana said the world's population has jumped to 6.5 billion people now from six billion in 2000, five billion in 1987 and four billion in 1975.

"Family planning plays an important role. It could help reduce the poverty trap," he said. "Poor families having many children lead to more poverty."

The high population influenced the quality of life and the progress of the country, he reiterated.

BKKBN chairman Sugiri Syarief said the family planning program had been a success – the percentage of families accepting birth control had risen from 5 percent in 1970 to 48 percent in 1987 and 61 percent in 2007.

"But the decentralization system has somewhat slowed down the program as the authority to run the program has been handed down to regencies or municipalities," Sugiri said.

"We has been eager to pursue physical development, while forgetting basic social development – including family planning," he said.

He said the government had been supportive of the program, with its budget increasing from Rp 700 billion in 2006 to Rp 1.6 trillion in 2009, he said. "However, an adequate allocation should have reached Rp 3 trillion, and this was not even 0.1 percent of the national budget."

Nina Sardjunani, deputy chairwoman of Bappenas, said that family planning will be integrated with women's empowerment program. "A fall in population would mean better quality for people," Nina said.

Muhadjir Darwin from the Center of Policy and Population Study of Yogyakarta's Gadjah Mada University, recommended close collaboration with NGOs to run the family planning program, instead of letting it be run by the regencies.

Ninuk Widyantoro from the Women's Health Foundation, criticized the fact that the family planning program was only targeted to married couples. (iwp)

Indonesian musicians find political voice ahead of election

Agence France Presse - July 1, 2009

Arlina Arshad – The saccharine world of Indonesian pop music is being rocked by a new wave of underground bands that aren't afraid to take aim at the country's political elite ahead of the July 8 presidential election.

Grungy rockers with names like Skull and The Vandals eschew the usual radio fare of teary love songs in favor of hard-hitting political commentary delivered with attitude.

"They're a segmented group and untouched by the media," music commentator Denny Sakrie said. "They move underground, performing at bistros and share their opinions in newsletters."

At the forefront of the movement is reggae singer Ras Muhamad, 26, named Best New Reggae Artist by Rolling Stone Indonesia magazine last year.

Wearing hip-length dreadlocks in a towering bun on his head, the US-educated singer warned fans at a recent outdoor concert in Jakarta not to be fooled by empty election promises from the presidential candidates. "They are preaching righteousness but have filthy hearts," he sings on "Make Way."

The song – in both Indonesian and English – mixes with the marijuana smoke that drifts above the audience, as fans decked out in Rastafarian colors of red, yellow and green nod their heads in cool appreciation.

"I don't care about politics, but Ras's songs make me more aware of the kind of leaders we have," said one 18-year-old fan. "They're mostly corrupt. That's why I'm antigovernment, anticolonial, pro-peace, pro-freedom and pro-reggae!"

Despite his many fans, Muhamad said his work attracts brickbats as well as bouquets.

"Not everyone likes what they hear," Muhamad said. "Lawmakers probably see me as an enemy. I don't single out specific individuals so I haven't got into serious trouble yet. I'm nationalistic and I want society to progress. I want the government to provide our youth with proper education, end child labor, protect migrant workers. I'm not a mere entertainer. I have opinions."

Just over a decade ago, when the dictator Suharto still ruled the country with an iron fist, protest musicians such as Muhamad faced censorship and possible bans.

But in a sign of how times have changed – and perhaps of how Muhamad may not be the public enemy he thinks he is – lawmakers in today's democratically elected parliament welcomed his interest in politics.

"I don't see why any political leader should feel offended by the lyrics unless he or she has done something wrong and feels guilty," said Happy Bone Zulkarnain of the Golkar Party, Suharto's former political vehicle. "[Musicians like Muhamad] provide political education for society and create a culture that allows democracy to thrive."

Protest singers have been around in Indonesia since the 1960s, but they have never appealed to a mass audience.

"The bands sang in English to avoid attention," Sakrie said. "Bands now are bolder and more confident about voicing their opinions." Many artists today also have university degrees, he said.

Sales promoter Wina, 25, said she loved Muhamad's music, but said it would not influence her vote. "I can dance to it, but I don't pay attention to the lyrics," she said.

Actions, demos, protests...

Police break up election boycott protest in Jakarta

Detik.com - July 7, 2009

Novi Christiastuti Adiputri, Jakarta – Scores of people from the Indonesian Youth Front for Struggle (FPPI) demonstrated at the Hotel Indonesia roundabout in Central Jakarta on Tuesday July 7 calling for a boycott of the presidential elections. On account of not having a permit, the demonstration was forcibly disbanded by police.

According to Detik's observations, the protesters brought banners with demands such as "Golput 2009, the people's political independence", "I think therefore I golput", as well as FPPI flags.

A number of people could be seen wearing white masks with pictures [of the presidential candidates] that had the figures 1, 2 and 3 written on them. The fourth mask meanwhile was white with no picture and had the figure 4 on it. "We the youth of Indonesia are of one nation, one language, the language of golput", said one of the demonstrators in a speech.

FPPI national leader Sahat Tarida said that none of three presidential and vice presidential candidates have a commitment to pursue a pro-people agenda. "We have seen the huge crimes that they have committed. SBY [incumbent President Susilo Bambang Yudhoyono], [vice presidential candidates] Prabowo [Subianto] and Wiranto are responsible for the massive number of human rights problems. We are being deceived yet again!", explained Tarida.

After demonstrating for around 10 minutes, four police officers suddenly arrived and approached them to ask if they had a permit. "This is just a letter of notification. Do you have a permit or not", said one of the officers. "Usually we have one Sir", answered one of the protesters.

Police then asked them to disband of their own accord. The demonstrators then moved off in the direction of the General Election Commission offices on Jl. Imam Bonjol in Central Jakarta. (aan/nrl)

Notes:

Golput – Golongan putih or white movement meaning not to mark the ballot paper (leave it blank) or abstain from voting.

[Translated by James Balowski.]

Protesters barricade Mimika KPUD

Jakarta Post - July 7, 2009

Markus Makur, Timika, Papua – A group in Mimika, Papua, blockaded the entrance to the local General Elections Comission (KPUD) office on Monday as the organization has still not announced the results of April's legislative elections.

The group felled two large trees and placed the trunks on the road outside the entrance to the building at about 5 a.m.

They said they had done so because the KPUD failed to properly organize last April's legislative election and had still not appointed legislators for the 2009-2014 period.

The protesters obstructed traffic between Kuala Kencana and Timika for 30 minutes.

Police personnel, including members of the Mobile Brigade, under the command of Mimika Police chief Adj. Sr. Comr. Godhelp C. Mansnembra, arrived at the scene an hour and a half later and immediately removed the barricade, allowing traffic to resume. The road runs toward Timika, the home base of PT Freeport Indonesia's mining operations.

The police confronted protests, forcefully removing them from the scene. Police arrested 12 people, but the majority of protestors fled into the surrounding woods. PT Freeport workers were eventually able to resume travel.

Nansnembra told reporters that a number of prospective legislators, including Yakobus Kogoya, Philiphus Wakerwa and Devi Awom, were believed to be responsible for organizing the protest. He said they did so because they were discontent with the performance of the Mimika KPUD, which, nearly three months after polling day, has not named the winners of the legislative election.

"The three legislative candidates from the National Mandate Party previously filed a report with the Mimika Police claiming ballot rigging was committed by the organizers of the election in Mimika. I explained to them that they should have strong evidence if they wished to take legal action against the KPUD. The case is currently being processed," Manemsbra said.

Menembra added that the protest was not aimed at delaying or disrupting Wednesday's presidential election, but only to expresses dissatisfaction over the legislative election.

Manemsbra said police would summon the three people believed to be responsible, adding the security condition in Mimika ahead of the presidential election remained normal.

The KPUD has not explained why the results of the election have not yet been announced.

RRI employees stage rally against leadership change

Jakarta Post - July 4, 2009

Jayapura – Dozens of employees of the state-run RRI public radio station staged a rally in front of the Papua People's Assembly (MRP) office Friday, protesting a change in leadership at the station.

"We are never given a chance as Papuan's to assume leadership positions at the station. The leader is always appointed from the head office," said the rally coordinator, Engel Silubun.

Engel said the RRI head office in Jakarta should respect Law No. 21/2001 regarding special autonomy for Papua province.

"We have served the station for 46 years. Jakarta should now allow a native Papuan to lead the station."

Djijoto, former head of RRI station in Sintang, West Kalimantan, was recently appointed to lead the Jayapura branch of RRI.

The protesting employees threatened to conduct a mass strike if their protest demands were not heard. Engel said the Sintang RRI station was regarded as less important than the Jayapura branch, which also supervises nine other stations in Papua and West Papua.

SPARTAN calls for 'neoliberal' candidates to be disqualified

Detik.com - July 1, 2009

A hundred or so people from the Volunteers of People's Struggle for the Liberation of Motherland (SPARTAN) demonstrated at the General Election Commission (KPU) offices in Central Jakarta on Wednesday July 1. They were demanding that the KPU disqualify neoliberal presidential and vice presidential candidates.

The action created traffic congestion on Jl. Imam Bonjol in the direction the Hotel Indonesia roundabout because the demonstrators used one shoulder of the road. Traffic in the other direction however was not disrupted and the KPU was closely guarded by scores of police officers.

As they demonstrated, SPARTAN members shouted protests such as "SBY [incumbent President Susilo Bambang Yudhoyono] is a neoliberal, Boediono [Yudhoyono's running mate] is a neoliberal, all of them are neoliberal! The debt accumulates every year, come on, let's reject the neoliberal presidential and vice presidential candidates!".

In addition to giving speeches, they also brought banners with messages such as "Reject neoliberal the presidential and vice presidential candidates" and "Big debts, why do they claim not to be neoliberal". Posters with caricatures of Yudhoyono and Boediono were also brought by protesters.

"[We are] calling on the KPU to disqualify neoliberal presidential and vice presidential candidates," said SPARTAN spokesperson Agus Priyono from atop a truck.

Housewives reject SBY-Boediono

Around two hundred housewives also demonstrated against SBY- Boediono in the South Sulawesi provincial capital of Makassar on Wednesday saying that they are lackeys of foreign capital and neoliberalism, and that their development programs have failed to side with the poor.

The demonstration by a group calling itself SPARTAN was held on the grounds of the South Sulawesi regional KPU offices.

"That SBY-Boediono are neoliberal lackeys is already clear with the high cost of education and healthcare. Their policies provide opportunities to foreign capitalists to reap profits from Indonesia's natural wealth and blur the people's eyes with BLT [direct case assistance program] and KUR [credit for small and medium enterprises]", said Daeng Baji, one of the action coordinators in a speech.

The demonstrators also said up until now Boediono's policies have not sided with the poor, both when he the coordinating minister for the economy as well as when he was the governor of the central bank. As well has holding speeches, the demonstrators also brought black coloured banners with messages written in white such as "Reject neoliberalism", "Abolish the foreign debt" and "Form a National Coalition Government".

According to Detik's observations, not a few of the protests brought children with them, and not all of them appeared to be listening seriously to the political speeches being given. A number even elected instead to seek shade on the side of the road because of the intense heat.

[Slightly abridged translation by James Balowski from two reports carried by Detik.com on July 1.]

Aceh

Peace-maker issue drives Aceh voters

Jakarta Post - July 6, 2009

Hotli Simanjuntak, Banda Aceh – The presidential and vice presidential debates, particularly on the peace-maker issue, have considerably influenced the Acehnese and led them to rethink their preferred candidates.

The change in the political preference is mainly due to the establishment of peace by the government in the country's westernmost province, which both President Susilo Bambang Yudhoyono and his rival Vice President Jusuf Kalla have claimed credit for during their political campaigns.

According to Asmara Nababan, former National Commission of Human Rights (Komnas HAM) secretary general, the establishment of peace in Aceh had given Yudhoyono the edge rather than Kalla.

Both the Aceh Party, which was established by former Free Aceh Movement (GAM) rebels, and Yudhoyono's Democratic Party, won the most votes in the April 9 legislative elections.

"Most Aceh Party voters are likely to vote for the SBY-Boediono pair at the July 8 presidential elections since many former GAM members are now supporting the SBY-Boediono pair," Nababan recently said.

However, Kalla has also trumpeted his role as the main player in the Aceh peace process conducted at the mediation in Finland.

Regardless of the two both having claimed the establishment of peace in Aceh, the Acehnese themselves will vote for the candidate whom they think will be the best for the continuation of peace in the province.

Kartina, a resident of Luthu Dayang Krueng Village from Aceh Besar, said the security issue had been the major concern for her and her fellow villagers.

"Peace in Aceh is the most important thing and must be secured and taken care by whoever our next president will be. The next country leader must be able to accept the aspirations of Aceh people to keep the peace," she told The Jakarta Post.

Kartina said she still had not recovered from the trauma she had experienced throughout the three-decade conflict that killed at least 2,000 Acehnese. She admitted her political preference changed after she watched the candidates debate the peace issue.

"I was sure about one candidate, but now I'm not anymore. I am now in a hard situation since all candidates are showing their strengths and weaknesses," Katrina said, refusing to mention the candidate she was referring to.

Meanwhile, the Aceh Besar branch of Independent Election Commission (KIP) in cooperation with the International Foundation for Electoral Systems (IFES) held Saturday a polling and vote- counting simulation in Katrina's village.

Akmal Abzal from the KIP said the simulation aimed to ensure successful polling in remote areas in Aceh. (bbs)

West Papua

Papuan separatists call for Indonesian election boycott

Radio New Zealand International - July 7, 2009

Papuan independence activists are calling for a mass boycott of tomorrow's Indonesian presidential election.

The vice-president of the West Papua National Coalition for Liberation, Dr Otto Ondawame, says a sign of opposition, Papuans are advised to hold sit-ins and to pray.

During last April's parliamentary elections, Papua had seen large rallies. But the Indonesian military's crackdown of those protests has prompted activists to change their approach.

They're are also urging Australia to place more pressure on whoever wins the election to end human rights abuses in West Papua.

The New Zealand-based Indonesia Human Rights Committee has also called on regional leaders to raise the Papua issue during next month's Pacific Islands Forum summit in Cairns.

Papua activist gets three years for peaceful 'provocation'

Jakarta Post - July 4, 2009

Angela Flassy, Jayapura – Papuan activist Bucthar Tabuni was sentenced on Friday to three years in prison for "provocation" at a pro-independence demonstration last year.

Prosecutors had alleged Bucthar, the chairman of the International Parliamentarians for West Papua (IPWP), committed treason during the demonstration and demanded the district court in Jayapura, Papua, sentence him to 10 years' imprisonment.

Buchtar was arrested in Jayapura in December 2008 for allegedly leading a rally to support the launch of the IPWP in London.

However, a three-member panel of judges presided over by Manungku Prasetyo ruled that Buchtar was not guilty of treason as indicted by the prosecutors under Article 106 of the Criminal Code, because the anti-Indonesia demonstration had been "peaceful".

"The action taken by the defendant was still within the limits of expressing demands over development progress in Papua. It was peaceful, not brutal and not structured," Manungku said in his verdict ending the five-month trial.

With regard to the IPWP launch, the protest was not proven to have been correlated with it, he said. "So we have decided the case did not fulfil an element of treason."

The judges, however, convicted Buchtar for the secondary charge of "provocation" as indicted by prosecutors under Article 160.

Evidence revealed in that during the protest Buchtar had called out to the crowd phrases such as "autonomy!" (to which demonstrators had replied "no!") and "referendum!" (to which they had answered "yes!"), showed a criminal act of provocation had taken place, judges said. "Such words can harm the sense of national unity and the unitary state of Indonesia, hamper development, defy laws and disturb peace among the heterogenous peoples of Papua," Manungku said.

An incriminating factor was also the fact Buchtar was unaware that what he had done could be considered an act of provocation. The final trial, tightly guarded by police, started at around 3 p.m. (local time) and lasted one-and-a-half hours.

Following the announcement of the verdict, Buchtar's team of lawyers, led by Piter Ell, said they were considering whether or not to appeal the verdict.

"It was something not only new for Jayapura District Court but also for Papua. Previously there have been no defendants acquitted of treason charges in Papua. But now we see one defendant exonerated from this charge," Piter said.

However, Buchtar was not guilty of provocation, because the rally had been staged peacefully, he added. "If judges convicted him of provocation, they should also have proven who was affected by his provocation," Piter said.

The protest was held peacefully on Oct. 16, 2008 and was attended by hundreds of Papuans.

The IPWP campaigns for the peaceful independence of West Papua from Indonesia, and for the rights of local indigenous peoples to self-determination. Bucthar's fellow Papuan activist, Sebby Sambom, also present at the pro-independence demonstration is still on trial for similar charges.

Al-Jazeera cancels premier, removes synopsis from website

Jakarta Post - July 2, 2009

Ary Hermawan, Jakarta – In what seems to be a last minute decision, television news network Al-Jazeera English decided not to premiere on Thursday a highly-sensitive documentary highlighting the plight of Papuans. It also removed the film's synopsis from the list of feature films it will broadcast, which is published on its website.

It remains unclear, however, whether the Qatar-based TV-channel had postponed or completely called off the screening of the controversial documentary that will likely disturb the government in Jakarta. The Jakarta Post tried to reach Al-Jazeera officials for confirmation Thursday but to no avail.

The film's screening is extremely sensitive as Indonesia will hold its second presidential election on July 8.

Titled Pride of Warriors, the documentary was directed by Australian filmmaker Jono van Hest, who claimed to have smuggled six video cameras into the troubled West Papua province. He said the filmmaking was inspired by the arrival of 43 Papuans seeking refugee status from the Australian government in 2006.

Van Hest has not replied to emails from the Post for comments.

Foreign Ministry spokesperson Teuku Faizasyah said the government had not made any contact with Al-Jazeera to protest the TV channel's decision to air the documentary and to request it cancel the screening.

"I do not know if they have called it off or postponed it. I waited for the film but it was not aired," he said, adding the government had been disturbed by the documentary.

"It is a sensational film that is very one-sided. If it is true that the filmmaker had smuggled the cameras then he has violated Indonesian law and also the principles of journalism."

Talks key to Papuan peace, forum hears

Jakarta Globe - July 2, 2009

Nurfika Osman – Continued dialogues between religious and tribal leaders from Papua and Jakarta are necessary to bring about a mutual understanding that would lead to peace in the restive province, religious leaders said on Thursday.

"This kind of dialogue is needed as religious leaders do not understand the issues faced by Papuan tribes and vice versa," Ridwan Lubis, a representative of the Nahdlatul Ulama, the country's largest Islamic body, told an inter-religion meeting on Papua.

He said that unity among all religions and ethnic groups in the nation could be achieved with continued dialogues. "Women empowerment, education and agricultural issues that could help develop Papua should be brought into the talks and the findings spread to all Papuans," he said.

Neles Tebay, the Roman Catholic vice bishop of Jayapura, said that Papuans had long focused on their own problems but that no other parties had offered assistance.

"We [Papuans] want all citizens in the country to know what we feel and the problems we are facing," Neles said. "We want to feel that we are not alone in facing the continued conflicts," he said.

Papua has seen a low-level armed separatist guerilla movement since the 1960s but perceived injustices and alleged widespread abuses by security forces in their efforts to quash the rebellion have further heightened pro-independence sentiments in this easternmost province.

Father Dani Sanusi from the Indonesian Bishops Conference (KWI) said that if the dialogues were conducted regularly, solidarity between Jakarta and Papua would be achieved.

"Solidarity will resolve continued conflict in the province," Dani said. "And a peaceful Papua will become a reality and there will be no more victims."

To achieve solidarity, NU's Lubis said that various efforts should be made, including improving access to education to help Papuans develop their own region.

"Poverty and regression can hinder solidarity in Papuan society and if this continues to happen, conflict will remain in the region," he said

Lubis also said that vocational education was vital to Papua as specific skills were needed to develop the resource-rich land.

Sanusi said that Papuans themselves were relentless in their efforts to bring peace to Papua. "We have and will always struggle until plurality, equality, solidarity, harmony and brotherhood are achieved in Papua," he said.

The meeting was held in a bid to explore ways to promote a better mutual understanding between Papua and the rest of the country as part of efforts to rid the province of its longstanding conflicts.

Al Jazeera to premiere Papua documentary

Jakarta Post - July 1, 2009

Ary Hermawan, Jakarta – News TV-channel Al Jazeera English will broadcast an Australian documentary highlighting the plight of Papuans that will likely upset the Indonesian government. It will be premiered on July 2.

Directed by Australian filmmaker Jono van Hest, the documentary, titled Pride of Warriors, is inspired by the story of 43 West Papuans fleeing to Australia in 2006. The case sparked tensions between Canberra and Jakarta.

"Shocking, revealing and empowering this film is disturbingly indicative of the current situation in West Papua," a press release sent by van Hest to The Jakarta Post on Wednesday said. Jono claimed he smuggled six video cameras into the province.

"These remarkable stories provide unparalleled access and a strikingly personal insight into the West Papuan resistance," it said.

Foreign Ministry spokesperson Teuku Faizasyah said he had not seen the film, but went on to lament Al Jazeera for screening the film should it unfairly discredit the Indonesian government.

"Al Jazeera is known as an alternative media that leans to developing countries and is not Western-centered. I am surprised," he said.

Indonesia President SBY covered up ambush murder of US citizens

News Blaze - July 1, 2009

Previously secret US State Department documents implicate the President of Indonesia in a probable cover-up of an ambush in West Papua.

The documents show Susilo Bambang Yudhoyono, who is running for reelection on July 8, maneuvering behind the scenes to manage the investigation into the August 2002 murder of three teachers-one Indonesian and two US citizens.

"Yudhoyono brought politics into a case that should have just been about forensic facts," said Dr. Eben Kirksey, an anthropologist at the University of California, Santa Cruz and a regional specialist.

"The documents reveal that Yudhoyono initially stalled attempts by the FBI to launch an independent investigation," he continued. The US Congress, outraged at these stalling tactics, blocked funds for Indonesian military training until there was cooperation with the FBI.

The documents released today add a new twist to a hotly contested Presidential race.

"Yudhoyono is not the only controversial former soldier running in the presidential election," said John M. Miller, National Coordinator of the East Timor and Indonesia Action Network. "Vice presidential candidates and former generals Wiranto and Prabowo Subianto were involved in well-documented human rights crimes in East Timor and throughout Indonesia."

When a police investigation implicated Indonesian military shooters as the likely murderers of the schoolteachers, Yudhoyono became involved. Yudhoyono, a retired General and then the Coordinating Minister of Political and Security Affairs, wrote to the Charge D'Affaires of the US Embassy in Jakarta that "I have dispatched a fact finding team led by one of my deputies to Timika and its surrounding (sic), to find additional information and other related facts especially on a broader political and security aspects of the incident."

Timika, the site of the attack, is in the remote province of Papua, where US mining giant Freeport McMoRan (FCX) operates a concession.

Yudhoyono's stalling tactics let the Indonesian military cover their tracks," said Paula Makabory, a Papuan human rights activist who founded the Institute of Papuan Advocacy and Human Rights in Australia. "The 'fact finders' under his command systematically intimidated witnesses and tampered with material evidence," Makabory continued.

Following high-level negotiations with Bush administration officials, who promised Indonesia millions in military aid, Yudhoyono allowed the FBI into his country. "By the time the FBI were granted access the trail was cold," said Makabory. "The FBI investigation proceeded within a narrow framework that fit the Bush administration agenda," said Dr. Kirksey.

The Special Agents found a fall man, while tiptoeing around evidence connecting their man to the Indonesian military," Kirksey added.

Antonius Wamang, an ethnic Papuan, was indicted by a US grand jury for his role in the attack. He was apprehended in 2006 by the FBI and sentenced to life in Indonesian prison. Wamang had extensive ties to the Indonesian military, according to a peer- reviewed article, Criminal Collaborations," co-authored by Dr. Kirksey and Andreas Harsono, an Indonesian investigative reporter (link below).

The declassified documents disclosed today were obtained through a Freedom of Information Act Request (FOIA) by Dr. Bradley Simpson of the National Security Archive. The State Department found 62 documents relevant to the Timika murders. They released only two of these documents in full and 20 others "with excisions." The rest were withheld.

The FBI did not release any documents, writing: "No records responsive to your FOIA request were located by a search of the automated indices." The FBI is notorious for not complying with Freedom of Information Act requests.

The documents reveal evidence of a cover-up," said Dr. Kirksey. "The fact that many relevant documents were not released is more evidence of the same"

Selections from these documents are published here in seven distinct sections. Links to the PDFs of the documents can be found here: http://etan.org/news/2009/06Timika.htm.

1) Response by the State Department and the FBI to the Freedom of Information Act (FOIA) request

2) Initial reports about attackers; Yudhoyono orders a quick response

The first State Department reports about the 2002 attack seriously entertained two theories: that the perpetrators were Papuan independence fighters (OPM guerillas) or rogue elements of the Indonesian military. The documents note that the assault took place on a foggy mountain road near a military checkpoint and an Army Strategic Reserve Forces post. Upon learning of the attack, Yudhoyono ordered a quick response to restore security and to investigate the attack.

The US Embassy noted in a cable to Washington: "Many Papuan groups are calling for an independent investigation led by the US Calls for an independent probe are unrealistic, but we believe that Papua's Police Chief, who enjoys a good reputation with Papuan activists (and US), can conduct a fair investigation." The Police Chief's investigation later indicated that the Indonesian military was involved. The FBI subsequently launched a separate probe.

3) Attack victims treated in secrecy at Australian hospital

The survivors of the assault were airlifted out of Indonesia to a hospital in Townsend, Australia. Here US diplomats, the FBI, Queensland Police, and the Australian Defense Force kept a tight lid on the situation-preventing the victims from speaking with the press and even from contacting family members for the first two days. See: Tom Hyland, "Lost in the Fog," The Age, September 28, 2008. http://www.theage.com.au/world/lost-in-the-fog-20080927- 4pb8.html?page=-1.

4) Yudhoyono assumes coordinating role in investigation

Following police reports of Indonesian military involvement, these documents reveal that Yudhoyono began to play a more active role in managing and influencing the direction of the investigation. Yudhoyono met repeatedly with the FBI field investigators, as well as high-level US diplomats, blocking their initial attempts to gain unmediated access to witnesses and material evidence. This file includes a letter from Yudhoyono to the Charge D'Affaires of the US Embassy where he outlines a strategy for managing the broader political and security aspects of the incident.

5) Commander-in-chief concerned about Washington Post interview

The Washington Post reported in 2002 that senior Indonesian military officers, including armed forces commander General Endriartono Sutarto, had discussed an unspecified operation against Freeport McMoRan before the ambush in Timika. General Sutarto vehemently denied that he or any other top military officers had discussed any operation targeting Freeport. He sued The Washington Post for US$1 billion and demanded an apology from the paper. Several months after this lawsuit was settled out of court, The Washington Post asked to interview Sutarto. This document contains notes from a meeting between the US Ambassador and Commander-in-Chief Sutarto where this interview request was discussed: "Clearly concerned, General Sutarto asked why the Washington Post wanted to interview him, as well as TNI's Strategic Intelligence Agency (BAIS) and the State Intelligence Agency (BIN) Chiefs regarding the Timika case." See: Ellen Nakashima and Alan Sipress "Indonesia Military Allegedly Talked of Targeting Mine," The Washington Post, November 3, 2002. http://etan.org/et2002c/november/01-09/03mine.htm.

6) Most important issue in US-Indonesia bilateral relationship

The US Ambassador stressed in a June 2003 meeting with Yudhoyono that justice in the Timika killings was "the most important issue in the bilateral relationship." During this period, FBI agents were given intermittent access to evidence. Yudhoyono continued to play an active role in coordinating the political aspects of the investigation. Taking an unusual personal interest for someone with a Ministerial level position, Yudhoyono repeatedly met with the FBI case agents the low-ranking US investigators who were deployed to Timika for field investigations.

7) Attorney General Ashcroft suppressed evidence

On June 24, 2005, Attorney General John Ashcroft and FBI Director Robert Mueller announced that Antonius Wamang, an ethnic Papuan, was indicted by a Federal Grand Jury for the Timika murders. The indictment alleged that Wamang was a "terrorist" who sought independence from Indonesia. Following this announcement, three respected human rights groups and indigenous organizations charged that the US Government suppressed evidence linking Wamang to the Indonesian military. A peer-reviewed article, titled "Criminal Collaborations: Antonius Wamang and the Indonesian Military in Timika," details the nature of these links. The group called for Wamang to be given a fair trial in the US, rather than in notoriously corrupt Indonesian courts. See: Eben Kirksey and Andreas Harsono, "Criminal Collaborations," South East Asia Research, vol 16, no 2. http://skyhighway.com/~ebenkirksey/writing/Kirksey- Harsono_Timika.pdf.

Human rights/law

Megawati defends running mate on his checkered rights record

Reuters - July 3, 2009

Ed Davies & Sunanda Creagh – Presidential candidate Megawati Sukarnoputri on Friday defended her choice of a running mate accused of human rights abuses, saying that he had taken responsibility and there was a need to move on.

Voters will go to the polls on Wednesday, with incumbent President Susilo Bambang Yudhoyono well ahead of Megawati and a third candidate, Vice President Jusuf Kalla, in most opinion polls.

Megawati, 62, is running with Prabowo Subianto, who was fired from the Army in 1998 after troops under his command kidnapped and tortured pro-democracy activists during President Suharto's rule. He is barred from entering the United States.

"Don't forget that Prabowo has been stigmatized as a human rights abuser, but he has taken full responsibility for that and has moved on," she told a lunch with foreign correspondents.

The pairing of former President Megawati and Prabowo would once have seemed unthinkable. As chairwoman of the Indonesian Democratic Party of Struggle (PDI-P), Megawati was the country's leading opposition figure in the dying days of the Suharto era.

Prabowo, a former head of the Special Forces, was once married to one of Suharto's daughters and was an integral part of the so- called New Order establishment under Suharto.

In a recent televised presidential debate, Megawati, the daughter of the nation's first president, Sukarno, said she was the victim of human rights abuses in the past, but had "never retaliated."

Several members of her party were among the activists kidnapped and tortured by the troops under Prabowo's command but at least three have since joined his political party. Asked about the kidnappings, Prabowo told foreign correspondents in February "my conscience is clear. I took full responsibility. I came before a military tribunal."

The Megawati-Prabowo pairing took weeks of wrangling because both wanted to be president, with Megawati finally winning out. Both needed the support of each other's party to run.

Their platform is secular and nationalist, while they have been seeking to win support of farmers and fishermen by pledging to push pro-poor policies.

Megawati, who has previously said she would take a tougher line on foreign investors, said that investors from overseas were welcome as long as it was on fair terms. "Please, come to Indonesia to see what can be done here. But of course we know that in the past there were many weaknesses," she said.

Megawati has previously questioned the impact on the country of a huge copper mine run by a unit of US firm Freeport McMoRan Copper and Gold in Papua. The mine has previously been a source of controversy over its environmental impact and the share of revenue that goes to Papuans.

"If we want to continue contracts, we need a shift and to create contracts that have a strong voice on the issue of the environment," Megawati added.

Living memory of the torture years

Jakarta Globe - July 2, 2009

Armando Siahaan – The night of Oct. 21, 1965, was one that Putu Oka Sukanta will never forget. After returning from a movie theater in Pasar Minggu, South Jakarta, a group of men in military uniforms stormed into his residence and arrested him.

"There was no letter of arrest shown and no explanation whatsoever," said Putu Oka, sitting in the living room of his house.

He spent the next 10 years behind bars with no idea of how long he would be there. "I wasn't sure when I could go home," he said. "I wasn't sure what would happen to me."

The years 1965 and '66 were tumultuous ones in Indonesian history. Three weeks prior to Putu Oka's arrest, a failed coup had been launched, allegedly by the Indonesian Communist Party, in which six high-ranking military officers were killed on a night known as the September 30 Movement. The Indonesian Armed Forces subsequently retaliated with a massive purge of suspected communists.

Putu Oka, a high school teacher and freelance journalist, was a member of the People's Art Guild, also known as Lekra, a cultural organization affiliated with the Communist Party.

Putu Oka had been dismissed from the school where he was teaching about a week earlier due to his involvement in Lekra, so he suspected he might soon be targeted for arrest.

"It was like being defeated before the war started," he said, his voice still reflecting his indignation so many years later.

Wearing a cotton polo shirt and brown pants, Putu Oka sat comfortably in his living room during our interview, checking incoming text messages and sipping a cup of tea. Such simple privileges were nonexistent during his long days in prison.

"The prison was overloaded," he said. "A cell intended for one inmate was occupied by three. We had to sleep so tightly we were just like packed sardines." He said the cell he shared was approximately one and a half meters wide and two meters long.

Starvation was also an issue as there were seldom sufficient rations. "The typical meals included horse food, rice mixed with sand and pieces of tempeh as small as your toe. "Unless you had family members or relatives that brought you food," he said, "you could die in six months."

Putu Oka's family lived in Bali, where he was born on July 21, 1939. Concerned for their safety, he didn't even inform them that he had been arrested. "[The Army] could've harmed my family," he said.

The only person close to Putu Oka at the time was the woman he was engaged to marry. After she had visited him in prison a number of times, he told her to flee the country for her own safety. "It was only because I loved her," he said. She eventually met and married someone else in Germany.

Although he was beaten repeatedly in prison, Putu Oka said he never experienced any of the more extreme torture he witnessed or was told about by others.

"Some were beaten, some had their toes crushed with the feet of tables and some were electrocuted. The women prisoners had bottles shoved up their vaginas, and some were forced to have sex with fellow women prisoners [while guards watched]."

Equally as painful as the physical abuse was the intellectual restraint placed upon him. "Prisoners were not allowed to write and read anything," he said. "I had to keep my creativity orally. I still wrote fiction and poetry in my mind."

After a decade of imprisonment, Putu Oka was released in 1976 because of illness. "I had respiratory problems," he explained.

On the day of his release, he was forced to sign a document stating that he would not take any legal action against the government for what had happened to him in prison.

He was, of course, happy to be released, but new challenges awaited him. "Immediately I had to find a place to live and food to eat," he said, "which meant I had to find a job."

Looking for a job while bearing the stigma of a communist past was extremely difficult, as newspapers of the time were constantly reminding their readers of the dangers of communism. "[Employers] would ask about your background. I never lied. If they wanted me, good. If not, that was fine."

A Ministry of Domestic Affairs regulation in 1981 further legitimized the stigma against communists, and ex-political prisoners had their identification cards marked with the letters "ET" for eks tahanan politik (former political prisoner), and had to report to authorities monthly.

"If you had the ET mark, your civil rights practically died," Putu Oka said. "You couldn't be a teacher, a civil servant or a military officer. You couldn't vote during elections."

Fortunately for him, when he moved from Tangerang to Jakarta in 1977, his identification somehow missed being marked with the "ET" designation.

To earn his living, Putu Oka eventually pursued a career in acupuncture. He learned the traditional form during his time behind bars from Dr. Lie Tjwan Sin, one of his former cellmates.

"[While in prison] I helped people who had skin, mental, nerve, respiratory and digestive problems," he said, adding that the health care provided by the prison was abysmal.

Putu Oka opened an acupuncture clinic in his house in East Jakarta, which still runs today, and with other traditional doctors established the Foundation for Indonesian Traditional Healing Methods in 1980. The foundation focuses on providing traditional medicine courses and health development programs.

"My social commitment was high," he said. "I've never lived just for myself. There are so many unfortunate people who don't have access to a better life."

Putu Oka also revived his passion for the literary world. He submitted some short stories to major publications, "but I was banned from doing it again after the newspapers discovered my background."

He found the answer to his predicament in foreign cultural organizations, where he became involved in fiction writing and poetry readings, and had a number of works published through alternative publishing companies.

"I refused to label my work as leftist," he said. "I prefer to call it literature for the people. I write political and social fiction."

Putu Oka won the prestigious Kalpataru award in 1982, and received much media attention nationally. Following his win, he said, the Ministry of Information issued a regulation saying that any recipient of a government-held award must be able to prove that he or she did not have a communist background.

In 1990, Putu Oka was once again arrested and tortured by the Army, on accusations that his literary and medical activities were "sponsored by an underground communist group."

Accusing him of trying to revive communism, the government again added the "ET" mark to his identification card and he was put under intensive scrutiny by government intelligence.

Putu Oka said he continued producing his more political writings in secret. But it was his persistence in the health sector that bore the most fruitful results. More than 10 health-related books have been published under his name and the Health Ministry eventually employed him to promote traditional medicine in Indonesia.

"My achievements in the health sector were recognized by the government."

In May 1998, when Suharto abdicated from his position as president of Indonesia, Putu Oka felt a deep sense of relief. "I took part in the fight against Suharto," he said with pride. "It was a result of a struggle."

But the journey toward independence has not ended yet, he said. "The struggle will never end because it's not just for me. It's for others, too."

In 1999, Putu Oka published a novel that brought him to national prominence. "Merajut Harkat" ("Knitting Dignity") was the result of 20 years of writing, and is a fictional account of a man who became dehumanized after being imprisoned without knowing why.

He has written more fiction based on the injustices of 1965 and after. Wanting to give other victims an opportunity to tell their stories, he also began producing documentaries.

"Through films and writing [the victims] get room to say what they wish to have heard, to have read and to have seen by many people, so that the reality of the past is no longer stigmatized and darkened," he said.

Through his documentaries and writing, he also seeks a greater goal. "The 1965 mass slaughter is a problem that has not been legally resolved," he said. "It was a gross violation of human rights. "The government needs to acknowledge their mistakes in the past. This will be a task for me as long as I am still alive."

His immediate hope: "I want the current generation to be able to see our history in an honest way. It is very important so that we can build a future that is more civilized."

Other victims share their experiences

"Menyemai Terang Dalam Kelam" ("Sowing the Light in the Dark"), 2005

Putu Oka Sukanta's first documentary looks at the tragic events of 1965 and '66 through the testimony of individuals who endured hardships in those years. One witness tells of the fiction the New Order regime put out that Communist women had seduced the murdered generals, and later gouged their eyes out. Another woman talks about how she spent much of her childhood going from one prison to another looking for her father. There are more heart- rending accounts in the documentary that chronicle the wounds inflicted by the cruelties of the time.

"Perempuan Yang Tertuduh" ("The Accused Women"), 2006

One of the most highlighted aspects of the failed coup in 1965 was the role of female Communists in the killing of the six generals. "Perempuan Yang Tertuduh" offers personal accounts of four women who were imprisoned because they were allegedly involved in Gerakan Wanita Indonesia (the Indonesian Women's Movement), better known as Gerwani, and accused of playing a role in the attempted coup on Sept. 30, 1965.

"Tumbuh Dalam Badai" ("Growing in the Storm"), 2007

"Tumbuh Dalam Badai" focuses on children whose lives were affected by the events of 1965 and '66. Its five subjects include Wangi Indria, a puppeteer from Indramayu whose father was a suspected Communist who was arrested as a political prisoner, and Nani Nurahman, whose father was one of the military officers killed on Sept. 30, 1965. The documentary shows how this next generation still struggles with their lives, unable to separate the dark history from their daily lives.

"Seni Ditating Jaman" ("The Art That Will Not Die"), 2008

Lembaga Kebudayaan Rakyat (People's Art Guild), better known as Lekra, was linked to the Indonesian Communist Party and banned during the New Order regime. "Seni Ditating Jaman" shows how Lekra continued its activities during the Suharto era. Members either went underground to produce art or did so while in prison. Historians, legal experts, artists and curators are interviewed to add substance and color to the film.

Labour/migrant workers

East Java trade unions agree to boycott presidential election

Surya Daily Online - July 6, 2009

Judi Prasetyo, Jombang – Workers from the Independent Indonesian National Front for Labour Struggle (FNPBI-Independen) have agreed to boycott the coming July 8 presidential elections by not using their right to vote or to golput. The agreement was kindled during a mass meeting held in the auditorium of the Youth Social Development Building in Jombang, East Java, on Sunday July 5.

The workers were doubtful because the presidential and vice presidential candidates that have emerged have already failed workers in holding the reigns of leadership. "All of them are [members of] the political elite who were once in government and all of them have failed fight for workers", asserted East Java FNPBI-Independent coordinator Afik Irwanto.

During the meeting – which was also attended by a number of other Jombang trade unions – FNPBI-Independent warned workers not to be easily deceived or be put to sleep by the presidential candidates' promises.

In addition to this, the workers also made six demands on the government. These were in the form of guarantees of the workers insurance scheme (Jamsostek), holiday bonuses, decent overtime wages, increases in the regional minimum wage, the abolition of contract labour and outsourcing and the freedom to organise.

"This is what we must continue to struggle for", asserted Irwanto, who was spontaneously elected as the group's spokesperson along with two other people from the East Java Labour Alliance.

According to Irwanto, the character of the presidential tickets of Susilo Bambang Yudhoyono-Boediono, Megawati Sukarnoputri- Prabowo Subianto as well as Jusuf Kalla-Wiranto are clearly the same was they were in the previous era. By way of example, it was precisely when former president Megawati was in power that contract labour and outsourcing systems were put into place through Law Number 13, 2003 on Labour.

Juir, from the education division of the East Java Indonesian Trade Union Congress Alliance (KASBI) said that up until now there has yet to be a leadership figure that could become a motor for the labour struggle in Indonesia. "So, our [choice] to golput has a clear aim," asserted the man with a closely shaven head. (st8)

Notes:

Golput – Golongan putih or white movement meaning not to mark the ballot paper (leave it blank) or abstain from voting.

[Translated by James Balowski.]

Workers declare their opposition to presidential elections

Waspada.com - July 5, 2009

Jombang – Thousands of workers have declared their opposition to participating in the July 8 presidential elections. The agreement emerged out of a mass meeting and consolidation by hundreds of trade union representatives held today at the Youth Social Development Building in Jombang, East Java.

One of the trade unions that declared its opposition to the presidential elections was the Independent Indonesian National Front for Labour Struggle (FNPBI-Independen). East Java FNPBI- Independent coordinator Afik Irwanto said that the failure of the world capitalist economic system has left Indonesia in crisis.

One of the flow-on effects of this is the destruction of the real sector and national productivity. As a result many companies have closed down and this has brought about a wave of mass dismissals.

In the end, according to Irwanto, it has been the little people and workers who have become the victims. "This is the evidence of the government's failure in developing an economic system that is self-sufficient and sides with the ordinary people", said Irwanto.

Irwanto went on to explain that the policies that have been taken up [by the presidential candidates] are largely an endeavour to attract sympathy from voters in the lead up to the elections. Irwanto said that they refer to them by the term "political bribes", such as the policy of reducing the price of fuel from 6,000 to 4,500 rupiah per liter, yet this has not been able to bring down the price of basic commodities.

"This because the current administration is still pursuing the economic concept of neoliberalism", said Irwanto accompanied by other trade union representatives.

Irwanto asserted that tens of thousands of workers nationally have agreed that they need a force that is solid, radical and genuine, namely trade union unity that is independent and uncontaminated by interference and the influence of other parties (non-cooptation and non-cooperation). This is in order that workers can bring down all of the obstacles that stand in the way of their struggle.

According to Irwanto, this is because the political elite cannot become comrades of the labour struggle. This includes the three pairs of presidential candidates that are contesting the presidential election because they are still acting as lackeys for foreign interests and are faithful to neoliberal economics.

It is because of this therefore, that thousands of workers have declared their opposition to participating in the ruckus surrounding the 2009 presidential elections.

"They have already been proven to have failed in bringing welfare to the ordinary people. So there are no gains for us in taking part in the presidential election. Because what is currently needed by workers and the ordinary people is [genuine] prosperity and democracy", he concluded.

[Translated by James Balowski.]

Indonesia shares blames on labor abuses overseas, minister says

Jakarta Post - July 3, 2009

Ridwan Max Sijabat, Jakarta – Who should be blamed for the increasing violence against Indonesian migrant workers overseas? Foreign employers and user countries? The government? Labor exporters? Insurance companies? Workers?

The questions led Labor Minister Erman Suparno to self- introspection in a roundtable discussion Thursday. He regretted the public's emotional condemnation foreign employers' brutalities, saying the rampant labor abuse had its initial and main trigger in the poor recruitment process, lack of training and many other problems at home.

Referring to the recent bilateral labor agreement with Jordan and previously Malaysia, Saudi Arabia and Hong Kong, the minister asked all stakeholders at home, mainly the government, labor exporters and labor advocacy organizations to put the problems on table because over-reacting would not settle the issue.

"First, housemaids at home must be legally protected to end hypocrisy and avoid double labor standards."

Indonesia has gained US$25 billion annually in remittance from around 4.8 million migrant workers, mostly housemaids who work overseas but the government has been under fire for the increasingly great number of labor abuses overseas.

In 2008, more than 45,000 workers faced troubles, including rapes and fatalities, mostly in Saudi Arabia, Malaysia and Hong Kong.

The labor and border problems between Indonesia and Malaysia and the public overreaction to the issues has led the government to suspend the supplying of workers to the neighbor country.

Anis Hidayah, executive director of Migrant Care, which provides advocacy for migrant workers, agreed and said authorities had to simplify the procedure, phase out red tape in recruitment and training, and certify well-trained workers prior to their departure.

Instead of reducing labor protection merely in the insurance scheme, Anis said the government had to revise the labor policy and regulations to guarantee migrant workers' labor rights on minimum payment, annual vacation, working hours, social security programs and severance pay; their social rights to freely practice their faith and communicate with their relatives; and their political rights to vote in general elections.

Deputy Chairman of the Indonesian Labor Exporters Association (Apjati) Rusjdi Basalamah admitted some faults of certain labor exporters in supplying workers overseas but they could not be taken as the only subject of blame for the labor abuses.

Labor exporters agreed their role was limited to supplying the labor market while the recruitment, training and certification were down to the government because of the constitutional imperatives requiring the government to generate jobs for the people and protect Indonesian citizens abroad.

Environment/natural disasters

Indonesia to clean up timber exports

Agence France Presse - July 6, 2009

Jakarta – Indonesia will launch a new system of independent certification for all timber exports to combat widespread illegal logging, the forestry minister said Monday.

From September all timber leaving the country must be certified by an independent body of business and NGO representatives, Malam Sambat Kaban told reporters.

"With the existence of Indonesian timber certification, we hope that export destination countries can better accept (imports) and as a consequence should be better able to enforce laws so that they can handle companies that receive illegal timber," Kaban said.

"There is already (certification in Indonesia) but now those giving the certification are independent, non-governmental bodies," he said.

The certification launch comes amid recent measures by developed nations to stem the inflow of illegally obtained forest products, including a 2008 amendment to the Lacey Act in the United States banning trade in illegally sourced plants and plant products.

Indonesia, with vast tracts of rain forest, struggles with high rates of deforestation and illegal logging, aided by poor law enforcement and widespread corruption.

Kaban himself has been accused of being a soft touch on illegal logging after he wrote a letter of recommendation to a Sumatra court two years ago that helped a wealthy timber baron get off charges of illegally logging billions of dollars worth of trees.

Women & gender

West Jakarta sees more domestic violence

Jakarta Post - July 1, 2009

Jakarta – West Jakarta Police say the number of domestic violence cases in the municipality during this year's first semester shows an increase compared to the same period last year.

The first semester of 2008 showed 48 reported cases while this semester showed 58, Adj. Comr. Budi Setiadi, the head of women and children protection unit, told kompas.com on Tuesday.

The latest case reported to the West Jakarta Police was the death of Retmiati, 27. She was beaten by her husband, Masan, also known as Mencong, and died Sunday en route to the hospital, her relative, Genden, told tempointeraktif.com.

Genden said before Retmiati died she told him Masan beat her because she returned home without money after soliciting herself.

Neighbors in their neighborhood in Cengkareng said Retmiati had two children from her first marriage. They also said Retmiati and Masan had a baby but they sold it.

Masan, a security guard at Taman Kencana residential complex, is still at large.

Health & education

Parents decry unfair school enrollment practices

Jakarta Post - July 3, 2009

Agus Maryono and Oyos Saroso H.N., Purwokerto, Bandarlampung – Parents of students enrolling at state-run senior high schools have protested over the school enrollment system, which they say is disorganized and marred by widespread collusion and nepotism.

In Banyumas, parents marched on the regency education agency Thursday, raising doubts about the supervision of schools, particularly those that had implemented the International Standard School Level (RSBI) system.

"The RSBI schools should focus on students' performance and scores in the selection process, not money and nepotism," said Budi Pranata, whose child was rejected from state high school SMUN 1 in Purwokerto, which has implemented the RSBI system.

"Students with good scores are not accepted, but many of those accepted are delegated by officials and scored low marks."

Another parent, Widiyawati, said her son, Reza, who finished junior high with good scores, also failed to get a place at the school.

"His friend who had lower scores than him was accepted," she told reporters outside the education office. "This raises suspicion. What's the standard for being accepted?"

Banyumas Regent Mardjoko later summoned the principals of SMUN 1 Sumaryono and SMUN 2 Sayono. Both acknowledged that some students who had been accepted had been entrusted by high-ranking officials and important figures in Banyumas.

"SMUN 1 principal Sumaryono admitted that around 36 students had been accepted through nepotism," Banyumas regency administration spokesman Agus Nurhadi told The Jakarta Post.

"This caused children with higher scores to be rejected. This is a worrying matter. The regent has sternly reprimanded these RSBI schools."

Mardjoko later ordered the schools to accept the rejected students and retain those who had gone through on nepotism, but place them in special classes.

"They've been accepted, so it's not ethical to reject them," Agus said. "We'll just require that a special classroom be provided for them."

In Lampung, meanwhile, parents have complained about exorbitantly high enrollment fees for new students at a number of top schools, which they said was due to the claims made by the schools that they had implemented the RSBI system.

Surono, 45, a resident of Sumberjaya in West Lampung, for instance, said he had to pay Rp 30 million (US$2,900) to get two of his children registered at state high school SMUN 2 in Bandar Lampung.

"I had to hand over Rp 15 million for each of them. That was just for 'school construction contribution', excluding other expenses, which could amount to Rp 250,000 per student monthly," the coffee farmer said Thursday.

"I had to sell some of my farmland, because I have to get three of my children into school this year – two in senior high and one in junior high," he added.

Placement coordinator at the RSBI-rated state high school SMAN 2 in Bandar Lampung, Supano, said the school needed Rp 1.2 billion for renovation this year. "The funds will be extorted from parents who pay between Rp 3 million and Rp 15 million in down payments," he said.

"We demand exorbitant amounts because an RSBI school needs a lot of money to teach computer and IT classes and build a number of facilities," said state junior high school SMP 2 principal Sartono.

West Java declares HIV/AIDS state of emergency

Jakarta Post - July 1, 2009

Yuli Tri Suwarni, Sumedang – The West Java administration has declared a state of emergency in its fight against HIV/AIDS, with high prevalence among non-risk groups such as homemakers.

In his opening speech at the coordination meeting of the provincial AIDS commission (KPAD), West Java Governor Ahmad Heryawan said Tuesday that the prevalence of AIDS in the province was higher than that of HIV, while infection rates among homemakers were higher than those among sex workers.

"This is very concerning, particularly because most of the people living with HIV/AIDS here are in their productive ages," Heryawan told the meeting in Jatinangor, Sumedang.

Data from the West Java KPAD shows that as of March this year, 2,682 AIDS cases and 1,838 HIV cases had been reported in the province.

The report also said the number of homemakers living with HIV/AIDS was higher than that of sex workers, with 295 and 259 cases respectively.

Heryawan urged all 26 regents and mayors in the province to keep implementing the seven-point commitment in the fight against HIV/AIDS, especially after its status had been elevated to emergency status.

He also called on the community in the region to work hand in hand in their respective neighborhoods to help create a healthy social environment.

He added that almost 85 percent, or 3,838 people, living with HIV/AIDS in West Java were aged between 15 years and 49 years, meaning the epidemic would further strain economic and social ties among the community.

"We ask the KPAD to establish a special assistance team tasked with advocating on and handling the HIV/AIDS pandemic from the provincial down to the regency levels, to make sure all the programs run effectively," he said.

He added that with the emergency status, there would be no more reason to not prioritize the handling of HIV/AIDS in the province, including in terms of funding. He urged the KPAD to work closely alongside government efforts in fighting the disease, as well as with local and international NGOs committed to the cause.

National AIDS Commission (KPA) secretary-general Nafsiah Mboy, who also attended the meeting, welcomed the governor's move to elevate the status, saying it showed the province's seriousness in dealing with the disease.

"It's really an anomaly to see such high prevalence among low- risk groups like families," Nafsiah said.

Ignorance of what husbands do outside the home has been blamed for the high prevalence of HIV/AIDS among homemakers.

Miska (not her real name), 30, who tested positive for HIV two years ago, agreed.

"My husband worked in Jakarta. How could I have known what he did with every minute of his life?" she said. She added she only learned her husband was HIV-positive after he died.

Another homemaker, Ratna (also not her real name), 32, from Ban- dung, concurred.

She said she did not know her husband's habit of sharing needles when injecting drugs could lead to his being infected with HIV.

"I thought it was only sexual intercourse that could transmit HIV/AIDS from one person to another," she said.

Corruption & graft

A passport with a nod and a wink

Jakarta Globe - July 5, 2009

Ferry Irwanto – There is an old local saying that bureaucrats will always turn something simple into something complicated. The Indonesian Immigration Office will do the opposite – for a little under-the-table money.

The office has long been considered one of the country's most corrupt institutions, raking in millions of rupiah in bribes each day, particularly through its passport issuance service.

As part of efforts to shed its bad image, the office in 2006 implemented a biometric system, which uses electronic identification technology, aimed at making passport issuance more efficient, and to reduce opportunities for bribery and fixers.

However, Transparency International Indonesia believes that the new system is not much better than the previous manual one and is unlikely to deter officers from receiving bribes.

Teten Masduki, the watchdog's general secretary, said that according to a 2008 bribery index survey released in January, the immigration office remained among the most corrupt public institutions in the country.

"Immigration offices are third on the list of the most corrupt public institutions, after the police in first place and customs in second," Teten said.

Under both the old and new systems, applicants have to go to the immigration office three times over six working days to obtain a passport: once to fill in forms and submit required documents; again to pay the fees, have photographs and fingerprints taken and sit through an interview; and yet again to pick up the passport. After this long process, the passport should cost Rp 270,000 ($26).

However, a passport can be ready in just a few hours for a total payment of Rp 500,000, or Rp 2 million if a fixer is involved.

Anyone wishing to apply for a passport at an immigration office in Jakarta has to buy the application forms, which technically should be free. Prices vary among the offices – the North Jakarta office charges the highest price, Rp 15,000, with a Rp 6,000 official stamp and a paper envelope thrown in for free. At the East Jakarta office, the forms are sold with a paper envelope for Rp 5,000 by a privately run photocopy kiosk, while in South Jakarta, it costs Rp 7,500.

After filling out the forms, applicants have to present both the original and copies of several documents – their ID card, family card, birth certificate, education certificate, a letter of recommendation from an employer and, when applicable, a marriage certificate or an official document confirming a name change. The originals are returned after they are checked with the copies.

If you happen to look even slightly confused or lost, someone will quickly to come to the rescue and kindly offer to take care of your application – for a fee, of course. Those fixers are not in short supply in any immigration office, except for the North Jakarta office, where local staff are supposedly more "helpful." Applicants can be "helped" by immigration staff if they ask politely, and a veiled conversation will take place to determine how much should be paid to expedite the process.

A cashier at the North Jakarta immigration office was seen recently helping a lady who could not produce her original family card for an additional Rp 200,000. Another applicant who was missing two original documents managed to bargain down the Rp 500,000 fee to a sum that will only ever be known to him and the cashier.

"You have two documents missing; it's Rp 250,000 for each," whispered the cashier, who also sells the set of application forms for Rp 15,000. After engaging in hushed conversations, the cashier then gave him her cellphone number and said, "Call me at lunchtime."

Later, another staff member at the front desk was on her cellphone to tell the man that his passport was ready, also offering to have the passport delivered, again for a fee.

At immigration offices elsewhere in town, fixers take the lead, waiting for their prey in the parking lot.

Rudi, a handsome man in his early 40s, singled out a couple arriving at the East Jakarta immigration office, and rather aggressively offered his service, standing right in front of large banners warning people not to use fixers.

"They agree to pay Rp 1.5 million for both," Rudi said after the couple had left, adding that their passports would be ready in three days.

Only Rp 200,000 would find its way into his pockets. "The rest will be paid to insiders," he said, referring to the immigration staff.

Meanwhile, Rina, 28, a bank employee seen at the South Jakarta immigration office, opted to use the services of an agency, which for Rp 500,000 would deliver the passport when it is done. She only needed to go to the immigration office once, to be photographed and have her fingerprints taken.

"The passport will be done in one week. Yes, it is not shorter than if I did it myself, but I don't have much time to come into the office. So Rp 500,000 is worth it, I guess," Rina said, adding that she only needed to ask for an absence of two hours from her manager on that day.

The West Jakarta Immigration Office handles an average of 150 passport applications a day, said a staff member, who declined to be named. Assuming that half of those applicants used the help of fixers or agencies, one immigration office would receive Rp 17.25 million a day in extra "fees."

Basyir Ahmad Barmawi, director general of immigration, did not answer calls or reply to text messages asking him to comment on bribery and fixers at immigration offices. However, he told reporters in a recent interview that he would examine Transparency International's findings.

ICW reveals $127 million haj fund irregularities

Jakarta Post - July 4, 2009

Jakarta – ICW's head of public service monitoring division, Ade Irawan, said here Friday that his team had found discrepancies amounting to US$127 million during last year's haj pilgrimage.

"The biggest irregularity was in flight expenses at $102 million."

Ade said when people paid the haj fees – which was set at between about $3,300 and $3,600, depending on their zoning of residence – in June 2008, the ministry charged them flight fees based on the market fuel price, which reached $130 to $140 per barrel, at that time.

"The fuel price was valid when they left for Saudi Arabia. But when they returned home, which was between November 2008 and January 2009, the fuel price dropped to only $60 per barrel," he said. "The ministry should pay back the differences, which is about $532 per person, to them."

Irregularities were also found in operational budget, which amounted to $25 million. "The budget was misused both in the country and in Saudi Arabia," Ade said.

The Office of Coordinating Minister for People's Welfare said in its Website that it would not return the money to haj pilgrims. In the Website, Religious Affairs Ministry's director general for haj, Slamet Riyanto, said earlier this year that 54 percent of the fee paid by the pilgrims was used to pay for air fare, 44 percent for accommodation in Saudi Arabia, 1.6 percent for the preparation at their embarkations while the rest was used to make the passports, insurance and meals during their preparation.

ICW's Analysis and Data Center chief, Firdaus Ilyas, said the watchdog has planned to report its findings to the Corruption Eradication Commission (KPK) even though the latter had yet to take significant measures to assess its reports filed earlier this month on alleged graft in the 2005-2006 haj travel payment.

ICW will also write to the House of Representatives to summon Religious Affairs Minister Maftuh Basyuni for further inquiries over the alleged graft.

"People still think that the ministry is not prone to corruption, but it is. It is responsible for organizing haj pilgrimage, which generate loads of money every year," Ade said.

Indonesia sends around 200,000 pilgrims annually.

Only several weeks ago, ICW announced a possible Rp 562 billion ($55.02 million) mark-up on the price of this year's haj pilgrimage and said the price should be set much lower.

With lawmakers having approved the ministry's proposed price for the 2009 haj pilgrimage, the ministry is only one presidential decree away to set around $3,200 to $3,500 per pilgrim.

But the watchdog refuses to throw in the towel. "If the decree for haj travel payment was issued, and it was in accordance to what the ministry proposed, we will file for a judicial review for the decree," Firdaus said.

House throws spanner at Corruption Court bill

Jakarta Post - July 3, 2009

Irawaty Wardany, Jakarta – The House of Representatives has played down the importance of an independent Corruption Court, stating it was "not urgent" to protect it with a government regulation in lieu of law.

"There is no need for the government to issue such a regulation, because there is no urgency at all," chairwoman of the House' special committee for the Corruption Court bill, Dewi Asmara (of the Golkar Party), told a press conference on Thursday.

"State institutions such as the National Police and the Attorney General's Office have enough authority to investigate graft cases already."

She said it was essential for the government to utilize those institutions for what they were intended to do. There is no need for a regulation. "Even if the government decides to issue a regulation, the House may not ratify it," Dewi said.

The Constitutional Court ruled in 2006 that the Corruption Court violated the 1945 Constitution because it was established under the 2002 law on the Corruption Eradication Commission (KPK), instead of the law on judicial powers.

The Constitutional Court then ruled that a new law on the Corruption Court must be enacted by December 2009 or the Corruption Court would lose its legal standing. If this were to occur, the Corruption Court would be dissolved and forced to hand over cases under its investigation to district courts.

The Corruption Court bill is on the House's priority list, and has been targeted for endorsement by September. However, the House will begin its recess period on July 3 and resume activities on Aug. 14.

Transparency International Indonesia (TII) chairman Todung Mulya Lubis told The Jakarta Post he doubted the House would be able to pass the bill into law in such a tight time frame.

"The fate of the Corruption Court is hanging on a really thin thread. With such a tight time frame, it is very important for the government to issue a regulation in lieu of law on the bill, as soon as possible," Todung said.

"I also believe the House does not have enough political will to pass the bill into law."

However, Dewi said the House had no intention whatsoever to delay the passage of the bill, and that the committee was being "cautious" rather than "slow".

Separately, former KPK deputy chairman Amien Sunaryadi told a discussion held by the United Nations Office on Drugs and Crime (UNODC), titled The future of the KPK, that Indonesians had a tendency to destroy what they had already established.

"That is why I'm not surprised to see the current situation, even though the commission has been able to do a lot of great things," he said.

There were two options for Indonesia in terms of corruption eradication; either it fights to end corrupt practices or becomes a donkey, he said. (hdt)

Actions that could undermine corruption eradication efforts

Excluding identified strong measures in corruption related bills.
Establishing legislation with weaker measures than those in the bill, because of excessive vested interests.
Ignoring bills required to institutionalize operations that have proven successful.
Changing clauses in regulations that have shown strong results.
Undermining successful authorities.

Stay the course in fighting graft: UN

Jakarta Globe - July 2, 2009

Nivell Rayda – The United Nations Office on Drugs and Crime expressed concern on Thursday that the fight against corruption in Indonesia would deteriorate in the wake of several attempts to limit the powers of the Corruption Eradication Commission.

Amit Joy, the head of the UNODC office in Jakarta, was commenting on the slow deliberation at the House of Representatives of the much anticipated Anti-Corruption Court bill, as well as comments made last week by President Susilo Bambang Yudhoyono that have been interpreted as a desire to check the power of the commission, also known as the KPK.

In an interview with Kompas newspaper founder Jacob Oetama, Yudhoyono reportedly said the KPK "has become a huge power holder, responsible only to God. Power must not go unchecked."

"Indonesia must step up its commitment to the UNCAC treaty," Joy told the Jakarta Globe, referring to the United Nations Convention Against Corruption, which Indonesia signed in 2006 and ratified in 2007.

"Indonesia has a long road ahead in its fight against corruption, and all aspects of society, the government and members of the parliament, must work together. Indonesia needs a more solid [anticorruption] legal basis and more key weapons."

Joy said the KPK and the Anti-Corruption Court were indispensable institutions. The court has a 100 percent success rate in putting corrupt officials behind bars, including eight current and former lawmakers.

However, the Constitutional Court ruled in 2006 that the court lacked a solid legal foundation and ordered that it be disbanded unless a new law was drawn up before Dec. 19 this year.

"Like in so many countries, the fight against corruption would meet strong rejection from corrupt officials and executives, especially when corruption is so rampant in that country," Joy said.

"It is important that Indonesia battle all efforts to hamper the fight against corruption, because it is an extraordinary crime. It breeds activities like illegal logging, human and drug trafficking and other organized crimes."

Amien Sunaryadi, a senior official at the World Bank and a former KPK deputy, said that the commission was created "to curb an already dangerous level of corruption."

"We need the KPK to be draconian and ruthless to those who are corrupt if we are ever going to eradicate graft in the country," Amien said. "If corruption has dropped significantly, then we can talk about steadily limiting the KPK's authority."

Elections/political parties

Voter list row sours mood ahead of Indonesia election

Reuters - July 7, 2009

Olivia Rondonuwu and Sunanda Creagh, Jakarta – Complaints of voter list irregularities by the two challengers for Indonesia's presidency soured the mood on the eve of elections on Tuesday, with one camp alleging that there were problems with up to 20 million names.

Opinion polls have consistently shown that President Susilo Bambang Yudhoyono will trounce his rivals in Wednesday's vote, winning a second term and a chance to quicken the pace of reform in Southeast Asia's biggest economy.

The objections to the voting process, led by Yudhoyono's challengers, former president Megawati Sukarnoputri and Vice President Jusuf Kalla, are not expected to derail the election.

However, analysts said the complaints could be a tactic aimed at fanning public doubt about the credibility of the process and paving the way for the losers to challenge the result.

Security was stepped up in the capital, Jakarta, and other parts of the country on Tuesday because of fears that wrangling over the credibility of the register of some 176.3 million voters could spark protests in the world's third-largest democracy.

"People should not be confused, and this should not make the world view what is happening in our country as abnormal," Yudhoyono told reporters late on Monday, urging his rivals not to act improperly ahead of the vote.

Despite the jousting over the electoral rolls, preparations were underway across the archipelago of more than 17,000 islands. On the resort island of Bali, election officials wearing traditional sarongs and kebaya blouses set up polling stations in Tanjung Benoa, as tourists sunbathed on a nearby beach.

However, the atmosphere was tense in Papua, where extra police and special forces were on standby after recent violence linked to separatists in the remote province. Papuans wearing traditional penis gourds looked on as booths were set up using traditional woven bags instead of ballot boxes.

A victory for Yudhoyono would most likely bring a renewed push for reform to attract foreign investment, create jobs and drive economic, which has slowed from 6.1 percent in 2008 and is expected to come in at between 3 and 4 percent this year.

"We hope to be able to see a continuation of the reforms that we already started," Trade Minister Mari Pangestu told Reuters in an interview, adding that the new government would need to send "a strong signal that we are moving in the right direction."

If Yudhoyono takes more than half of the votes in the vote there will be no need for a run-off with the runner-up. A clear picture of the result should emerge by around 2 p.m. (3 a.m. EDT).

Analysts say a victory for Yudhoyono, widely known as "SBY," would come on the back of his modest success in tackling graft and the best economic performance in a decade.

Stocks, bonds and the rupiah have rallied this year on the prospect of a Yudhoyono win, and analysts see them rising further on hopes for a heftier reform drive in his next five-year term.

The rupiah, the best-performing currency in Asia so far in 2009, eased 0.3 percent against the dollar in afternoon trade on Tuesday. Indonesian stocks, which are up 50 percent so far this year, were up about 1 percent

Indonesian sovereign bond prices have also rallied in the last few months, with yields set to fall further if foreign investors return after the presidential election, traders said.

Concern over the voting lists arose first in the run-up to a parliamentary election in April, when duplicate and fictitious names were found on rolls and some voters were not registered.

Tension over the issue was partly defused on Monday when key demands made by Kalla and Megawati were met, including their request to receive copies of the electoral rolls.

Indicating that Yudhoyono's opponents were backing away from earlier suggestions they could ask for the poll to be postponed, Megawati on Tuesday urged her supporters to go out and vote.

But her running-mate, Prabowo Subianto, said he still believed there were a minimum of 10 million names with problems. "We expect it could be potentially as many as 20 million names," the former general told a news conference.

An economist at the Danareksa Institute played down the prospect of violence over the list dispute. "I think the losing parties will complain but I don't think they will challenge in a serious way," said Purbaya Yudhi Sadewa.

Aleksius Jemadu, acting dean of political science at Pelita Harapan University, also ruled out the prospect of riots on a national scale but said there could be localised violence.

[Additional reporting by John Pakage in Puncak Jaya and Luh de Suriyani in Bali. Writing by Ed Davies; Editing by John Chalmers.]

Crisis averted as court rules on voters list

Jakarta Globe - July 7, 2009

Muninggar Sri Saraswati, Markus Junianto Sihaloho, Febriamy Hutapea & Ferry Irwanto – The Constitutional Court ruled on Monday that eligible voters not on the final voters list for Wednesday's presidential election can still cast ballots if they produce valid identification.

The court's ruling was based on a request for a judicial review of the Presidential Election Law filed last month by researchers Refly Harun and Maheswara Prabandono from the Center for Electoral Reform (Centro), a nongovernmental organization.

It comes just a day after an eleventh-hour protest from candidates Jusuf Kalla and Megawati Sukarnoputri that millions of people would be turned away from polling stations

The researchers had asked the court to annul Articles 28 and 111 of the law requiring that eligible voters' names be on the final voters list, arguing that it prevented people from exercising their constitutional right to vote.

In its ruling, the court said citizens who weren't on the final voters list could show a valid identification card or their passport because "the right to vote is a human right that must not be limited by administrative procedures or regulations. The use of identification cards and passports for eligible voters who are not on the final voters list is the most secure solution."

Meanwhile, Kalla and Megawati had met on Sunday night and threatened to demand that the poll be delayed unless the General Elections Commission (KPU) fixed what they said were massive irregularities with the list.

Those irregularities, their campaign teams said, included millions of duplicate names on the voters list and the absence of at least five million eligible voters from the rolls. KPU officials balked, saying the candidates had not produced any evidence for their claims.

The Constitutional Court said the KPU was obliged to abide by its ruling because the commission had no authority to issue regulations concerning the use of identification cards in lieu of names appearing on the final voters list.

KPU Chairman Abdul Hafiz Anshary affirmed that the commission would abide by the ruling, saying that it was "discussing the technical methods in allowing people to use their identity cards. We hope that people will have original and proper documents."

One caveat to the ruling is that voters using ID cards can only cast ballots at polling stations near their official residential address stated on the card. They must also submit their family card at the polling station along with their ID card.

Another problem is that the KPU, less than 48 hours before the election, still hasn't made the final voters list public, sparking allegations that it isn't being transparent. The KPU only announced last month that it was updating the voters list, which resulted in a total of 176.4 million voters, an increase of five million from the April 9 legislative elections.

Still, Kalla and Megawati's campaigns welcomed the court's ruling, issued shortly after 5 p.m. on Monday, saying it would boost the election's credibility. The respective camps complained for weeks about the voters list, which was also a contentious issue during and after the April polls.

The National Commission on Human Rights has been looking into claims from NGOs and academics that up to 20 million people were left off the original list used for the April legislative elections.

The beleaguered KPU extended revision deadlines for the presidential election voters list amid complaints and strong public doubts about its accuracy.

Incumbent President Susilo Bambang Yudhoyono, who is leading in virtually all opinion polls, said on Monday night he supported the court's decision.

"This is a good solution... because I myself want a fair and clean presidential election, not like in 2004, when many things went wrong," Yudhoyono said, referring to alleged misconduct by the Armed Forces and National Police in the last presidential poll.

On Monday morning, Kalla and Megawati visited KPU headquarters and conveyed an official complaint about the voters list during a closed-door meeting that lasted nearly two hours.

Praise from all sides for court verdict on voters list

Jakarta Globe - July 6, 2009

Febriamy Hutapea, Markus Junianto Sihaloho & Muninggar Sri Saraswati – Presidential candidates, politicians and analysts broadly welcomed Monday's Constitutional Court ruling aimed at ensuring millions of additional people will be able to exercise their right to vote on Wednesday.

Prabowo Subianto, former President Megawati Sukarnoputri's running mate in her new bid for the top office, said he wanted to thank the court for its consideration in allowing people who had been left off the voters list to use their identity cards or passports to qualify to vote.

However, he was still keen for a reopening of the final voters list, which General Elections Commission (KPU) chairman Abdul Hafiz Anshary had promised to provide for inspection. "We're invited to review the voters list along with commission members," Prabowo said.

Fellow candidate, current Vice President Jusuf Kalla, said the court's decision was in line with what voters wanted. His campaign team would now focus on finding duplicate entries in the voters list and monitoring for irregularities in the vote counting.

Presidential spokesman Andi Malarangeng, a member of President Susilo Bambang Yudhoyono's campaign team, said that he thoroughly supported the court's decision and had asked the KPU to widely advertise the change so that people would know about it in time for Wednesday's vote.

Now that the ruling had been made, Andi said he also hoped there would be no further talk of postponing the election to sort out the flawed voters list. Both Megawati's and Kalla's campaign teams had hinted at making such a request on Sunday night.

Hafiz said he also appreciated the court's ruling, although the KPU had yet to finish making plans to implement it.

"We're still discussing the technical methods of allowing people to use their identity cards," Hafiz said. "We hope that people will use an original and proper document."

KPU secretary general Suripto Bambang Setiadi said the commission would probably not print additional ballot papers because it could not predict the increase in demand from the new ruling.

"We only follow the Presidential Election Law, so we only print ballot papers based on the numbers on the final voters list, plus an additional 2 percent," he said.

Separately, Yogyakarta Governor Sri Sultan Hamengkubuwono X said that the country had a duty to guarantee people's constitutional right to vote. Although the KPU has been mandated to manage the election, the sultan said that the government, particularly the president, should be responsible.

At the April 9 legislative elections, the sultan said he had enabled college students in Yogyakarta to cast their votes by showing their identity cards, allowing about 30,00 extra people to vote.

"Such an initiative should come from the KPU itself, not from a regional government like us," he said.

Ichsanuddin Noorsy, a public policy analyst, said the court's ruling was the right decision, but the KPU's poor performance in managing the voters list had already been noted by foreign politicians and analysts.

JK-Wiranto benefit from televised debates: Survey

Jakarta Post - July 6, 2009

Jakarta – A survey released Saturday has revealed presidential candidate Jusuf Kalla and his running mate Wiranto benefited the most from the series of televised debates ran for the first time in Indonesia in the lead up to next week's election.

The latest survey conducted by the Indonesian Development Monitoring Institute (IDM) between June 1 and 16, involving 3,700 respondents from across the country's 33 provinces, found the popularity of the Kalla-Wiranto ticket jumped from 13.2 percent to 26.57 percent compared to the previous survey.

The Megawati Soekarnoputri-Prabowo Subianto ticket remained in the lead in terms of support generated from the television debates on 44.28 percent, relatively unchanged from the previous survey. The IDM survey concluded that the debates had not worked in favor of President Susilo Bambang Yudhoyono and his running mate Boediono, with their popularity levels slipping to 27.15 percent from an earlier 30.43 percent.

IDM executive director Dwi Mardianto said Yudhoyono's campaign team was responsible for this decline, with some members making controversial statements during rallies. "The latest such blunder was committed by Andi Mallarangeng when he said it was not time for a South Sulawesi candidate to be president," Mardianto said.

Rivals attack Yudhoyono's black magic claims

Jakarta Post - July 6, 2009

Jakarta – President Susilo Bambang Yudhoyono's rivals in next week's presidential election claim the incumbent is clutching at straws to retain his presidency, after Yudhoyono's recent statement that his rivals were using black magic against him.

"It's very surprising that a former general with a doctorate could make such a statement," Alvin Lie, a member of Vice President Jusuf Kalla's campaign team, told The Jakarta Post in Jakarta on Saturday.

"It shows he's panicking. It's also a sign he has lost his self- confidence and rationality."

Yudhoyono made the statement Friday night during a gathering with the Nurussalam Islamic prayer group at his home in Cikeas, Bogor, West Java. Yudhoyono told the gathering, as quoted by detik.com, that "in this period of campaigning, there are many people out there who use black magic".

SBY also said that he was so concerned about it that he, his wife and his driver continuously prayed on their way to Jakarta to take part in Thursday night's final presidential debate. "Thankfully we got to our destination safely," he said.

Hasto Kristianto, from Megawati Soekarnoputri's campaign team, said the whole thing was a ploy by the President.

"The statement truly depicts Yudhoyono's strategy to gain support by playing the victim," he said. "He just wants to garner more and more votes by claiming he's under attack from magic spells by his rivals."

Criticism of Yudhoyono's statement has not been limited to his rivals, but has also come from the ranks of prominent political experts.

Fadjroel Rachman, head of the Research Institute for Democracy and a Prosperous State (Pedoman), said the President's remarks that effectively affirmed his belief in black magic were shameful and pathetic.

"Where would this nation go if its own president, who has a doctorate, believes in superstition?" he said. "Believing in black magic is irrational. If Dr. Yudhoyono behaves irrationally, then he's effectively burying the nation's rationality and common sense."

University of Indonesia political expert Rocky Gerung said Yudhoyono had dragged the country back to the dark ages with his statement. "If a war of magic really does take place, then we might as well give politicians' posts to shamans," he said.

However, members of Yudhoyono's campaign team said his remarks were based on real-life experiences. "The President revealed his personal experiences dealing with paranormal occurrences. The experiences were real," said Anas Urbaningrum, deputy chairman of Yudhoyono's Democratic Party.

Another party executive, Achmad Mubarok, said black magic was a discipline that could not be easily comprehended by regular scholars and common religious leaders. "Scientists do not have the capability to access the world of black magic," said the professor at the University of Indonesia. (hdt)

Yudhoyono tops LSI's latest survey

Jakarta Post - July 5, 2009

Dicky Christanto, Jakarta – President Susilo Bambang Yudhoyono is still the favorite to win next week's presidential election, says the latest survey by the Indonesian Survey Institute (LSI).

The survey, conducted between June 30 and July 3, and involving 3,000 respondents across the country's 33 provinces, gave Yudhoyono an overwhelming 63.1 percent of votes. It was funded by Fox Indonesia, a political consultancy contracted by Yudhoyono's Democratic Party.

"This survey was conducted to study whether the presidential debates had any significant effect on voters' preferences," LSI executive director Dodi Ambardi said Saturday at a press conference in Jakarta.

"However, we must include a disclaimer that the final debate (on July 2) was not included as a factor in this survey. The results conclude that the debates had no significant effect on overall voters' preferences. The support for Yudhoyono did decline, but it was not very significant."

The results show Yudhoyono's popularity dropped by 4 percent from the 67 percent recorded during the previous survey on June 20.

The survey put Megawati Soekarnoputri, from the Indonesian Democratic Party of Struggle (PDI-P), in second place with 19.6 percent, while Vice President Jusuf Kalla, from the Golkar Party, was last with 10.6 percent.

"Based on the survey, we can also conclude that voters had already made up their minds before the debates. Megawati and Kalla seem to have failed to chisel away at Yudhoyono's lead," Dodi said.

"Even those who watched the debates and thought Kalla came out on top, still feel they would rather vote for Yudhoyono."

University of Indonesia political expert Arbi Sanit said Yudhoyono's relatively clean track record had helped him surge build up a big lead over the other candidates.

"We all know how Megawati performed during her presidency; her running mate (Prabowo Subianto of the Great Indonesia Movement Party, or Gerindra) is even worse, because he was in fact an integral part of the dictatorial New Order era," he said.

The University of Indonesia's Maswadi Rauf said even though the debates could influence rational voters into shifted their preferences, he was rather skeptical about how significant this would be in the big picture.

He said this was because the number of rational voters was a miniscule compared to the number of irrational ones, who considered a good image the most important quality to look for in a candidate.

The Indonesian Institute for the Sciences' (LIPI) Ikrar Nusa Bakti concurred, saying, "I predicted the debates would influence many rational voters. These voters' eyes are wide open on who deserves to be elected the new president, and who is a mere pretender. These facts were clearly on show in the debates."

AGB Nielsen Media Research recorded that four of the five presidential and vice presidential debates managed to attract more than 500,000 viewers each. The final presidential debate, aired Thursday night, drew 924,000 viewers.

LSI senior researcher Burhanuddin Muhtadi said the only thing Yudhoyono's campaign team needed to do now was to watch their behavior and prevent any more faux pas.

Presidential spokesman and Yudhoyono campaign team stalwart Andi Mallarangeng was recently caught on camera saying the South Sulawesi people should choose only the best candidate, and unfortunately the best candidate did not come from the region. Andi himself is a South Sulawesi native.

"The Andi Mallarangeng issue, for instance, could be used by Kalla to raise anti-Javanese sentiments, not only in Kalla's native South Sulawesi, but in other regions as well," Burhanuddin said.

"The main question is whether Megawati and Kalla can increase their support by at least 10 percent each before election day. Only by doing so we can see the election go to a runoff."

The presidential election law stipulates a candidate must garner at least 50 percent of the vote to win outright.

The LSI's Dodi was quick to disown any conflict of interests arising over Fox's funding of the survey.

"I want to stress here there is no way we will risk our integrity as a surveyor by making up results to please Fox," he said. "If we lose our integrity, we will suffer more in the long run. Clients will not trust us anymore." (hdt)

Presidential candidates have poor track records in mining, energy

Jakarta Post - July 6, 2009

Adianto P. Simamora, Jakarta – A coalition of activists warned that there would not be substantial changes in policies dealing with budget, education, energy and mining, law enforcement and poverty reduction sectors whoever wins the July 8 presidential election.

The coalition made the statement Sunday after tracing available track records of the three presidential candidates and checking mission statements submitted to the General Election Commission (KPU).

"We find no indications of better policies in the next five years once they are elected since each candidate [only] offers weak and normative vision and mission statements to the KPU," said Ridaya Laodengkowe, coordinator of the national coalition for transparency and accountability in the extractive sector.

The coalition assessed policies issued by Megawati Soekarnoputri during her presidency from 2002 to 2004 and President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla in the last five years. There were controversial energy contracts causing financial losses.

"Megawati signed a contract to sell gas from Tangguh field in Papua to Korea at a very cheap price. Yudhoyono then failed to renegotiate the price before launching the first shipment last week," said Ridaya. The candidates only promised to review contracts, with no details.

The coalition said budget allocations for agriculture, education and health sectors remained the same under Megawati and Yudhoyono. "The increase of 20 percent budget allotted to education sector was not made by Yudhoyono. It is from the Constitution Court " Ridaya said.

Megawati and Yudhoyono vowed to maintain 20 percent of budget for education while Kalla promised to increase it to 25 percent, he said.

The coalition claimed that their assessment on law enforcement showed that both Megawati and Yudhoyono remained half-hearted in punishing government officials allegedly involved in graft cases.

"We can see from both aspects that all candidates have failed to convince us about a better law and budgeting policy in the future," secretary general of the Indonesia Forum for Budget Transparency (FITRA) Secretary-General, Yuna Farhan, told a press conference. "They will not likely give a significant change, at least based on their track records."

Megawati was allegedly lenient according to the coalition in cases involving top officials while president, such as in the case of then religious affairs minister Said Agil Al Munawar who ordered an excavation on an archaeological site near a stone inscription from the 16th century Pajajaran Kingdom.

Yulianto from the Consortium for National Legal Reform (KRHN) said the Bogor City Police had investigated Said on the alleged illegal dig but failed to pursue it because Megawati did not issue the permission required to probe a minister.

"The case shows that Megawati was reluctant to treat every citizen equally before the law, if the suspect was one of her ministers," he said.

"Yudhoyono signed political contracts with all of his ministers right away after he was inaugurated as president," Yulianto said.

"However, he let State Minister for National Development Planning Paskah Suzetta and Forestry Minister M.S Kaban stay in his administration despite the two having been suspected of receiving bribes from Bank Indonesia officials in 2003."

As for Kalla, Yulianto alleged the incumbent vice president had no significant track record, having never been a president before.

"However, as the current Vice President, Kalla can be considered as taking part in all of Yudhoyono's policies including in law enforcement and budgeting sectors," he said. (bbs)

Political contracts do not reflect voters' preferences

Jakarta Post - July 4, 2009

Irawaty Wardany, Jakarta – Sealing a political contract with a labor association is no guarantee of automatic support from the voters that constitute that group, a discussion heard Friday.

"This year's presidential election is an experiment, this is a mere duping," chairman of the Indonesian Sectoral and Tourism Workers Association Federation (PARAS), Syahrul Pasa, said at the discussion titled "Selling promises, buying support", held by the Jakarta Legal Aid Foundation (LBH-Jakarta).

He said the association, previously called FSP Paref, did not actually back any presidential candidate, but had been listed as one of several labor associations that had signed a political contract recently with the Megawati Soekarnoputri-Prabowo Subianto ticket.

"In our May 3 congress, we changed our name to PARAS, but still some groups of people used the previous name to seal the deal with the candidate," he said.

He added such a contract was only a way to seek support and improve the candidates' standing in the public eye, whereas if the candidate with whom the association made the contract with was elected, the contract did not have binding power that could guarantee the promises made in the contract would be fulfilled.

Adi, a representative of the Indonesian Migrant Workers Association (SBMI), shared a similar view, saying such contracts were a reflection of certain individuals' stances, and did not represent the views of the entire organization.

A study conducted in May by LBH-Jakarta shows the Megawati- Prabowo ticket made the most political contracts with labor associations. At least 26 associations were found to have signed the contracts with them.

The Susilo Bambang Yudhoyono – Boediono tickets signed one contract, with the SBMI, while the Jusuf Kalla – Wiranto tickets signed on the Volunteers Daring to Awake and Be Independent (BBM) and the All-Indonesian Workers Association (SPSI).

Khamid Istkahori, secretary-general of the Indonesian Congress of Labor Association Alliance (Kasbi), deplored the decision by those cosying up to candidates, saying all parties and candidates were strongly linked to capital interests and therefore stood in direct opposition to any efforts to give laborers a better deal.

"That is why we haven't made any political contracts with any candidate," Khamid said. "We also call on all our members to abstain from voting, in a show of protest at the candidates, whom we all consider to have had roles in the issuance of anti-worker regulations, such as the 2003 Law on Labor," he said.

Restaria F. Hutabarat, from LBH-Jakarta, said she had noticed that those who most often decided to make the contracts were the associations' elites, who could "play freely" without being tethered by the same ideals that controlled the associations' other members.

"There is tendency within the workers' associations for their leaders to become leading figures and the members to become less inclined to criticize them or their actions," she said.

She added communication between association members was also a factor. "Most of the members do not know what the elites do or decide, because they are not informed of the action," Restaria said.

"The workers' low level of political awareness also constitutes a factor that makes them less critical of what their leaders say or do."

Media allowed to publish election news in quiet period

Jakarta Post - July 4, 2009

Jakarta – The Constitutional Court announced Friday the media were allowed to publish any election-related news during the campaign-free period between July 5 and 7, prior to the July 8 presidential election.

The court's ruling came in response to a judicial review filed by seven media outlets requesting the court scrap Article 47(5) and Article 57(1) and (2) of the 2008 Presidential and Vice Presidential Election Law.

Part 5 of Article 47 stipulates media outlets are banned from publishing news, advertisements, track records or any other material concerning candidates that could place them at an advantage or otherwise over other contestants.

Parts 1 and 2 of Article 57 stipulate the closure of a media outlet in violation of the law.

All nine constitutional judges, headed by court chairman Mahfud M.D., agreed to grant the review. "Article 47(5), as well as Article 57(1) and (2) of Law No. 42/2008 no longer have legal power," Mahfud told the court. He said the publishing of news was in line with the people's right to information. "Broadcasting news related to the presidential candidates will, in fact, help the voters obtain information about the candidates' track records," he said.

The seven media outlets that called for the review are Tempo magazine, Tempo daily, The Jakarta Post, Jurnal Nasional, 68H radio station, Vivanews.com and the Voice of Human Rights radio network.

The Press Legal Aid Foundation's Hendrayana, who is also the lawyer for the seven outlets, praised the Constitutional Court for "granting a victory for press freedom".

He blamed the "unconstitutional articles" in the law on lawmakers who "lacked press and media capabilities"."We hope legislators do not pass any other articles that may kill the spirit of press freedom," he told The Jakarta Post.

A previous grouping of national media groups won a similar review in the April 9 legislative elections. The Constitutional Court ruled they were allowed to cover legislators' campaigns during the campaign-free period prior to election day.

Also on Friday, the court announced its verdict on a judicial review against the same law and ruled that independent surveyors were allowed to publish preliminary polling results before the General Elections Commission (KPU) issued an official vote tally.

The review was filed by a number of surveyors grouped under the Public Opinion Research Association, requesting the court annul Articles 188, 228 and 255 of the 2008 presidential election law.

The Indonesian Survey Circle's (LSI) Denny J.A., who led the group, expressed his satisfaction with the court's ruling.

"We will conduct a preliminary count and announce the result at 4 p.m. on election day," he said. "That way, the public will know who our next president is." (bbs)

Final round: Kalla jabs, Mega misses, SBY gets a hug

Jakarta Post - July 3, 2009

Dicky Christanto and Andra Wisnu, Jakarta – Presidential hopeful Jusuf Kalla criticized his rival Susilo Bambang Yudhoyono for his frequently aired campaign ads calling for a single-round election to save state funds.

The attack took place during the outset of Thursday's final debate, after candidates were asked to deliver their visions and mission statements.

Kalla said democracy should not be valued in money terms alone because this could neglect the values of democracy.

"I am sorry Pak SBY, your ads claiming that a single-round election would save the state Rp 4 trillion imply that a democracy can be valued in monetary terms," Kalla said.

"I am afraid if we concur with these ads, there will be no election in 2014, so the state can save itself Rp 25 trillion."

In response to the criticism, Yu-dhoyono said the advertisements were not his. "Those were not my ads," he said.

During the break, Yudhoyono offered his hand to Kalla before they hugged each other to the audience's applause.

During the following section of the televised debate, the other candidate, Megawati Soekarnoputri, agreed with Kalla and Yudhoyono that there would be no compromise in the unitary state of the Republic of Indonesia (NKRI) for the welfare of the people.

"However, I see the implementation of gotong-royong (community- based mutual help) continuing to decrease," Megawati said. "We need to return to our identity to maintain the unity of Indonesia," she said.

Yudhoyono and Kalla both said the state of Indonesia was a pillar of democracy and regional autonomy.

"There are still many problems in implementing democracy," Yudhoyono said. "Should we uphold the presidential system, a multi-party system, elections and regional elections?"

Yudhoyono said the 10 years of regional autonomy had also seen overlapping authority between the central government and regional administrations. "We have annulled 3,000 bylaws of 12,000 that are not in line with national laws," he said.

Yudhoyono also said he would re-evaluate regional autonomy to make sure it benefitted com-munities. "We will impose a moratorium on the creation of new regions," he said.

Meanwhile, Kalla said he would make elections more efficient by conducting simultaneous regional elections.

Megawati said regional autonomy should be based on the potency of each region rather than the sum of its population.

In most commercial breaks, the candidates talked to their campaign teams although Kalla appeared more relaxed, apparently enjoying the event as he ate snack and chatted to an attendant while other candidates were busy with their sidekicks.

On the issue of democracy, the candidates agreed that pluralism could only strengthen the country. Kalla, however, was most vocal as the only candidate to mention freedom of the press, and saying discrimination undermined democracy.

"Indonesia is based on plurality. The evidence for this is all the pictures of the President and Vice President, which flank our symbol of pluralism, the Garuda," he said. "The pictures flanking the symbol may change, but the symbol remains the same."

Kalla's words may have been a reference to a statement made by one of Yudhoyono's campaigners, the current government spokesman Andi Malarangeng, who said people from South Sulawesi were not yet fit to lead the country.

"Anyone can be a leader. The view that a certain tribe or race cannot lead is dangerous because it dates back to the dark ages," said Kalla, the only non-Javanese candidate among the three.

Yudhoyono agreed with Kalla, raising the issue that there were still bylaws discriminating against certain religions in certain regencies, and promising to intervene and change them to accommodate all religions and races.

Surprisingly, Megawati did not take this opportunity to stab at several controversial decisions made during Yudhoyono's term in office, such as the pornography bill (which her party had tried to block, to no avail) and the decision to stop Ahmadiyah from proselytizing.

Mega simply reiterated her support for pluralism, saying, "On this issue, I agree with JK 100 percent".

As the debate was about to conclude, moderator Pratikno, the dean of Social and Political Sciences at Gadjah Mada University in Yogyakarta, presented the final question: What would candidates do if not elected.

"I will continue to serve and struggle for the Indonesian people," Megawati said.

Yudhoyono said he would congratulate the winner right away and ask his constituents to support the elected leader.

Kalla meanwhile said candidly he would return to his hometown in Makassar, South Sulawesi. "I will take care of education, mosques and peace for the country."

One spectator, Dita, said the atmosphere was much lighter than in the previous debates. "Perhaps this was because we were able to see a much more lively debate this time," Dita said.

[Adianto P Simamora contributed to this article from Jakarta.]

Issues discussed in previous debates

Anti Corruption Bill

Megawati: "The bill might not be finished on time, so we better use the previous law and push the House to set a better priority on its bill deliberation."

Yudhoyono: "I have consulted with the House of Representatives so that the bill could be endorsed before my administration term ends in October. I prefer to speed up the deliberation of the bill with the House, but if the bill can't be endorsed on schedule, I could issue a government regulation in lieu of law as an action in an emergency situation."

Kalla: "The bill is important, but we can use the previous law if we can't endorse the new law. I agree with President Yudhoyono."

Human Rights

Megawati: "I am also a victim of hum an rights violations, but I never retaliated. It is a good example for the people if they can learn from my case."

Yudhoyono: "We had the Truth and Reconciliation Commission in the past, but it was dissolved based on the Constitutional Court verdict. But human right violation are a nation problem. We can sit together in the People's Consultative Assembly to resolve this problem because we need a solution.

For example, we can solve our human right-related problems with East Timor with a spirit to uphold peace, reconciliation, and friendship. We did it our way last year. I prefer to choose the Truth and Reconciliation or something similar to that."

Kalla: "I agree (with SBY) because I am still the current Vice President. Current law can't be used to try the past, but when it comes to crimes against humanity we could take legal action. I still think it's better in the future if we can learn from the past and never repeat these mistakes."

Military Budget

Megawati: "I will order an audit of our military equipment to find out how much of our equipment we can still use. There are many things we need to do so that we are not underestimated any longer."

Yudhoyono: "Our ideal military budget is Rp 120 trillion or 10 percent of our total budget of Rp 1,200 trillion, but now we just have a budget of Rp 35 trillion. We must prioritize education and other sectors. My plan is to gradually increase the military budget in the next five years should our economy improve. The military can delay buying submarines and fighter jets, but it must continue equipment maintenance and military officers' education programs."

Kalla: "I must ensure that the military budget is used effectively. I will revitalize the military equipments. If we can build those equipments at home, we must do it to save money. I will ground military vehicles that could not run properly. I agree that we must raise the military budget, but the military must maintain its equipment efficiently."

Foreign Debt

Megawati: "We must increase our independence. We must choose between principles of looking for the debts and a no debt policy. We must be confident to stop foreign debts."

Yudhoyono: "We have to delay some projects that are not too urgent and not to sell state enterprises, also known as privatization. Between 2005 and 2008, our foreign debts have decreased while local debts have increased. We will optimize our income from the gas sector."

Kalla: "We can make the state budget more efficient. I often criticize government buildings, which are too luxurious, have excessive use of air conditioners and too many employees. We have to empower state enterprises to finance local projects.

We can rely on our natural resources to get more income. I have said to do a rehabilitation so that we can increase production. I think the government sets too high an interest rate to borrow money from local sources, that is not good Pak SBY."

Megawati plays down family ties in PDI-P leadership succession

Jakarta Globe - July 3, 2009

Markus Junianto Sihaloho – Megawati Sukarnoputri's replacement at the helm of the Indonesian Democratic Party of Struggle may not necessarily come from the Sukarno family line, the matriarch herself said on Friday.

In an apparent rebuttal to her daughter Puan Maharani's announcement last week that she was ready to take on a leadership role, Megawati said there were plenty of other options within the party, which is also known as the PDI-P.

"I see there is equal opportunity," Megawati said in a meeting with reporters. "For my daughter, yes, she is a good candidate, but we must not forget that there is also Pak Pramono and Budiman Sudjatmiko and many others."

She was referring to Pramono Anung, the current PDI-P secretary general, and Budiman Sudjatmiko, a dynamic, young party cadre. Both Pramono and Budiman were present at the meeting, although they kept quiet during Megawati's announcement.

Megawati, the progeny of much-beloved founding President Sukarno, said that the Sukarno family name did not matter when deciding PDI-P leadership. She said that power would be passed according to the party's internal regulations.

"So what I mean is, it is already stipulated in the party regulations about who will replace me and become my successor," Megawati said.

Pramono Anung refused to comment on Megawati's comments when asked after the meeting.

Budiman, however, confirmed that party regulations did not state that the leadership was inherited. "And Megawati is a figure who is always strict on regulations; she is very by the book," he said.

However, Budiman also said that he did not seriously see himself as a possible candidate for the chairmanship, despite Megawati's comments about him. "It's not the first time Megawati has mentioned me," he said. "It is just a form of politeness and appreciation for a young cadre."

He also said that he had "never thought about becoming her successor." He added that he wanted to "give more to the PDI-P first, which means I must work hard in the legislature for the party."

Megawati's youngest brother, Guruh Sukarnoputra, had previously said that he was the perfect candidate to take the reigns as the head of the PDI-P. Guruh publicly questioned Puan's suitability for the role, saying that she was too young to take on the responsibility of leading a major party.

'Unfair' SBY makes me look bad: Mega

Jakarta Globe - July 3, 2009

Markus Junianto Sihaloho – Megawati Sukarnoputri, who has placed well behind Susilo Bambang Yudhoyono in recent polls, has blamed the incumbent president's "selective" policy on combating corruption for tarnishing her image ahead of Wednesday's presidential poll.

Speaking with the aid of a translator at a discussion organized by the Jakarta Foreign Correspondent's Club in Jakarta on Friday, Megawati said that though she appreciated the work of the Corruption Eradication Commission (KPK), Yudhoyono had used the antigraft body to target his political enemies.

Megawati, herself a former president, said that it was often the case that two corruption suspects would be found guilty of breaching the same law yet receive different sentences.

"Perhaps it is because the first comes from my party, while the second comes from another party," Megawati claimed. "It makes me lose a lot in terms of my good name and image. It is selective and unfair."

The allegations, which normally come from members of Megawati's Indonesian Democratic Party of Struggle (PDI-P), are nothing new. Questions were raised by several PDI-P legislators after a number of the party's members and supporters, most notably former Fisheries Minister Rokhmin Dahuri, were charged and jailed for corruption after Yudhoyono won the presidency in 2004.

Presidential spokesman Andi Mallarangeng denied Megawati's assertions, saying the number of PDI-P officials finding themselves at the wrong end of the law was simply because the party had occupied senior positions within the central government. "It is different with the Democratic Party because Pak SBY always reminds us to avoid corruption."

A few sparks fly, but final debate still damp

Jakarta Globe - July 2, 2009

Nivel Rayda, Febriamy Hutapea & Muninggar Sri Saraswati – Swords were finally crossed as a political ad became the center of a heated argument between two of the presidential candidates on Thursday during the last debate ahead of next week's election.

Shedding the inhibitions that had restrained similar debates in the past, Vice President Jusuf Kalla went into attack mode early by criticizing a political television advertisement advocating the idea that a single round of the presidential election was desirable.

Kalla told President Susilo Bambang Yudhoyono that advocating a one-round poll was tantamount to denying democracy.

"Your campaign, which states that one round is enough – in order to save Rp 4 trillion [$392 million] – is not democratic. We can't measure democracy based on money," Kalla said. "If you keep saying that, you will probably say in 2014 that we don't need any presidential election so as to save Rp 25 trillion."

Yudhoyono, who along with his vice presidential running mate Boediono featured in the ad, responded by saying that the commercial in question was not his. "Maybe JK made a mistake. I did not make the commercial," Yudhoyono said, referring to Kalla by his initials.

The advertisement was created by a company linked to Denny J.A., a political consultant for Yudhoyono and his Democratic Party. The ad was reportedly launched in the media after getting approval from Yudhoyono and other party leaders.

"So, that commercial is illegal, thank you for pointing that out. Because only the candidates can make political commercials and advertisements," Kalla retorted.

The final debate, which took place at Balai Sarbini Hall in South Jakarta, was moderated by Pratikno, a lecturer at Gadjah Mada University in Yogyakarta and an expert at the Ministry of Home Affairs. Private television station RCTI, which organized the debate, claimed that it was viewed by some 80 million people.

During the debate, which focused on democracy and regional autonomy, Kalla lashed out at one of Yudhoyono's campaign team members, Andi Mallarangeng, for allegedly stating in Makassar on Wednesday that it was not yet time for the Bugis ethnic group, local to South Sulawesi, to lead the country. Both Kalla and Andi are members of the Bugis group and the statement has sparked large protests in Makassar.

"Our differences are our strengths. That's why the idea that a certain race or ethnicity is not fit to rule the country is undemocratic and unconstitutional," Kalla said. "Our diversity is here to stay, although the president could change."

Political observers deemed the presidential debates in 2004 more useful, saying the candidates then did a better job of explaining their programs to the public.

"In 2004, the debates were livelier. I know for certain that the campaign teams prepared their candidates to answer questions from the panelists," said Ikrar Nusa Bakti from the Indonesian Institute of Sciences (LIPI).

Airlangga Pribadi, from Airlangga University in Surabaya, said that this year the debates had been nothing more than "political infotainment."

"They were hosted by private television stations, instead of the KPU, which held them in 2004," he said, referring to the General Elections Commission.

"They carried too many commercials, but the most regrettable thing is that the debates this year failed to serve as a forum for the candidates to explain their programs for prospective voters to compare," he said.

Thursday's debate was more a show between Yudhoyono and Kalla. Megawati Sukarnoputri, despite appearing more at ease than in previous debates, was mostly sidelined.

Yudhoyono aide slammed for 'racist' talk

Jakarta Globe - July 2, 2009

Muninggar Sri Saraswati & Febriamy Hutapea – A statement made by President Susilo Bambang Yudhoyono's spokesman and campaign team member Andi Mallarangeng sparked protests in Makassar on Thursday.

During a campaign session of Yudhoyono's vice presidential candidate Boediono there on Wednesday, Andi allegedly said it was not yet time for the country to be led by a member of the Bugis ethnic group, the predominant ethnicity in South Sulawesi. He allegedly also said that two Javanese – Yudhoyono and Boediono – were the best choices to lead the country.

The comments were denied by Andi, who is already the focus of criticism from various sources for the perceived power wielded by himself and his brothers, Rizal and Zulkaranen, also known as Choel, within the Yudhoyono campaign team.

Hundreds of people on Thursday protested in front of the headquarters of the South Sulawesi chapter of the Democratic Party in Makassar.

The number of protesters quickly swelled to thousands of people, demanding that Andi and Yudhoyono apologize to the people of South Sulawesi for what they said was a degrading statement. Hundreds of police officers had to be deployed to assure the protest did not become violent.

"The Mallarangeng brothers have defamed South Sulawesi's people with [Andi's] unethical statement," said Sugali, who led the rally. "We will not stop rallying until SBY and the Mallarangeng brother apologize to the South Sulawesi people," he said, referring to Yudhoyono by his popular initials.

Andi himself is a member of the Bugis ethnic group.

Idrus Paturusi, the rector of the Hasanuddin University who also chairs the South Sulawesi chapter of the Rectors' Forum, said Andi's statement was "racist" and degraded the people of South Sulawesi.

"The statement is dangerous and could damage South Sulawesi's unity," he said, adding that Andi must apologize and retract his statement.

Andi allegedly made the statement in an apparent effort to explain to the people of Makassar why he and his brothers had thrown their support behind Yudhoyono and Boediono, rather than behind the candidacy of Vice President Jusuf Kalla, a respected Bugis figure.

Poempida Hidayatulloh, a spokesperson for Kalla's campaign team, also demanded an apology from Andi for his statement, which he said had offended South Sulawesians and Kalla. "We demand Andi apologize to Pak Jusuf Kalla," he said.

Poempida said that all people, regardless of their ethnicity, had an obligation to make Indonesia a better nation.

"It's a shame if someone is still being discriminative and judging people based on their ethnicity," he said, adding that he regretted Andi bringing up such a sensitive issue.

He said that Andi's statement "contradicted Yudhoyono's request for people campaign ethical ly."

In Jakarta, Andi denied that he had made such a statement. "What I said during the campaign in Makassar was related to whether a South Sulawesi person could become the country's president. [They] could and many South Sulawesi people could become the nation's leaders but there will be time for that," he said. "Now, for 2009 to 2014, the best [candidates] are SBY and Boediono. "

State news agency Antara quoted Andi as having said "How about the people of Sulawesi? There will be time. The future lies ahead and many South Sulawesi people will lead this nation one day."

Andi's brother Rizal is already at odds with the Kalla camp for demanding that Kalla apologize for an incident in Medan, where a news report accusing Boediono's wife of being a Catholic was circulate d.

Kalla's camp has said that the vice president had no knowledge of the incident and have demanded that Rizal apologize.

Boediono declines PKS offer to prove Muslim credentials on hajj

Jakarta Globe - July 2, 2009

Markus Junianto Sihaloho – Boediono, incumbent President Susilo Bambang Yudhoyono's running mate, formally turned down an offer from the chairman of the Prosperous Justice Party to accompany him on a minor hajj pilgrimage ahead of Wednesday's election, a spokesman for Yudhoyono's campaign said on Thursday.

The recent offer from Tifatul Sembiring, chairman of the Islam- based party known as the PKS, again put the spotlight on perceptions that Boediono lacks Muslim credentials.

The PKS, a key partner in Yudhoyono's Democratic Party-led coalition, needs help to bring their members into the coalition, and the pilgrimage was seen as a way to do that, a PKS source told the Jakarta Globe.

"It would be considerably easier for us to secure solid support from the members of our party if [Boediono] showed that he was a good Muslim," said the source, who declined to be identified. "Our members are extremely critical, you know."

Yudhoyono campaign spokesman Rizal Mallarangeng said on Thursday that Boediono declined the PKS offer and would instead leave on Monday for Yogyakarta, where he lectures at Gadjah Mada University. "Boediono will stay in Yogyakarta and will vote at a polling station [there]," Rizal said.

Boediono's wife, Herawati, recently became the target of a smear campaign, after PKS deputy secretary general Zulkieflimansyah said that a number of PKS members were considering the possibility of voting for current Vice President Jusuf Kalla and his running mate, Wiranto, because their wives regularly wore headscarves.

Later, copies of an article stating that Herawati was a Catholic were circulated at a campaign rally for Kalla. On Thursday, Herawati attended a mass Islamic prayer at the Al Bina Mosque in Senayan, Jakarta.

Candidates urged to lay off religion

Jakarta Globe - July 2, 2009

Anita Rachman – Religious figures have urged the presidential candidates, their campaign teams and supporters to cease politicizing religion, saying it was demeaning and had the potential to create conflict among people of different faiths.

Richard Dauley, general secretary of the Indonesian Council of Churches (PGI), speaking during an interfaith dialogue on Thursday, said several leaders had witnessed political parties using religion to mobilize the masses.

"So far [the religious slurs] have taken different forms and intensity. For instance, some have made an issue of the religion of a certain candidate's wife. It would be best to leave religion out of politics."

He said that religion was the easiest tool to motivate people because it was linked to emotion, which was "a cheap commodity that could lead to conflict among people of different faiths."

Richard said that once people brought God into the political arena, they were demeaning religion.

The meeting put the leaders of Muslim, Catholic, Christian, Buddhist, Hindu and Confucian faiths on the same stage. Together they urged their followers to select without outside influence whomever they felt would be the best leader for the nation.

Other religious figures such as Din Syamsuddin, chairman of Muhammadiyah, the country's second largest Islamic organization, and Amidhan, chairman of Indonesian Council Ulema (MUI), also addressed the election issue.

Din said although the "religion of a candidate's wife" was an issue first carried by the media, he had noticed that it had been taken up by the campaign teams of certain candidates.

Richard said that in a country like Indonesia – where religion plays an important role – exploitation of religion had happened "during the election through the use of religious symbols."

Richard said that "religion exploitation" occurred in every party, saying that "even those parties claiming to be nationalists have religious wings."

Amidhan stated that although there was not much time before votes were cast, "smart" voters would be able to differentiate between candidates and choose the right leader for the next five years.

Din said that he had followed the election campaign with concern. He stated that he saw many posters in several provinces in which the candidates used religious jargon, such banners proclaiming parties or individuals to be the true Islamic leader.

He said that although religion had been politicized, "it was alright if the candidates used religion to enlighten the public, or used religious ethics or moral values. That's a different thing," he said.

The forum urged all the candidates to be fair and honest, saying that dishonesty would only lead to dishonest leadership.

No surprises, just hot air in last debate

Jakarta Post - July 1, 2009

Adianto P Simamora, Jakarta – On Tuesday, the final round of debates between vice presidential candidates ended without any surprises, with only Boediono and Prabowo Subianto exchanging small punches about foreign loans and education.

If in the first debate, Vice President Jusuf Kalla's running mate Wiranto entertained the audience by singing several songs, but this time around he seemed to have failed to grasp the substance of the topic: how to improve people's welfare.

Moderator Fachmi Idris, chairman of the Indonesian Doctor Association (IDI), tried hard to make the show more lively, with all candidates looking clumsy from the outset.

The debate, aired by TVOne on Tuesday, was begun with each candidate required to comment on how well they knew their rivals.

"I know pak Wiranto well... he has actually already reached the peak in his career, but it is likely he still wants to go higher," Boediono, President Susilo Bambang Yudhoyono's partner, said when asked to describe Wiranto.

In delivering his view on the subject, Megawati Soekarnoputri's running mate, Prabowo Subianto, directly criticized the current administration for its failure to fulfil basic needs of the people.

"Many of our people have no access to clean water or other basic needs, so how can improve the quality of people's lives?" he said.

Megawati was the only presidential candidate to attend the debate. "It is also big mistake claims made in ads that all people have enjoyed free educations. There are still many people having no access to education," Prabowo added.

He went on, saying that he and Megawati would clear about 59 million hectares of unused forested land to be allocated to farmers to resolve poverty, with one hectare generating employment for six people.

"We will also request for the rescheduling of foreign debts, so that we can invest in sectors to improve people's welfare as well as education and heath care," he said, directing his criticism toward Boediono for the Indonesia's large foreign debt.

Boediono showed a more calm appearance in the debate, providing details and examples, while questioning if Prabowo's proposal was realistic.

However, Prabowo replied that Boediono's answers were too normative, like "statements from academics or students". "The problem is where would the money would come from?" Prabowo said.

Boediono described Prabowo's claim to be able to generate large amounts of funding by rescheduling foreign debt as simply a big "dream". "We must be realistic with concrete programs," he said.

Meanwhile, Wiranto said the high poverty rate in Indonesia was a reflection of low public welfare. Citing data from the Central Statistics Agency (BPS), Wiranto said there were more than 35 million people living under the poverty line.

"(However) according to data from the World Bank, the total number of people living in poverty is around 100 million," he said.

NGO blasts candidates for 'politicizing' religion

Jakarta Post - July 1, 2009

Jakarta – The Setara Institute, a civil society group focusing on improving the country's pluralism, on Tuesday criticized presidential candidates who have used religion to attract voters.

"It is very dangerous because it will divide the nation, and reduce the democracy to its lowest level," Setara Institute chairman Hendardi said.

The fact that a certain candidate had used religious issues during their campaign had shown that many political elites discriminated against certain groups, he said.

Hendardi, however, refused to name which candidate he was referring to, but said some campaigns had questioned if Boediono, President Susilo Bambang Yudhoyono's running mate, was really a Muslim, while another had said his wife, Herawati, was in fact Catholic.

Jakartans want elections over quick: Survey

Jakarta Post - July 1, 2009

Jakarta – The results of a new survey released Tuesday show Jakartans preferred a single-round presidential election because they thought a second round would be a waste of money.

The survey, conducted by the Institute of Public Policy Studies (LSKP) among 440 respondents between June 20 and 25 in Jakarta, found more than 89 percent of respondents would prefer a one- round election.

"89.1 percent of respondents said they fully agreed with the idea of having a one-round election," LSKP director Sunarto Ciptoharjono told a press conference in Jakarta on Tuesday.

"57.7 percent of those who said they would prefer a single-round election said this would reduce election costs, while around 18.3 percent said they were bored with the elections," Sunarto added.

A political analyst from the Islamic State University (UIN), Bachtiar Effendy, said the survey had several flaws.

"For example, it only surveyed 440 respondents in Jakarta. The presidential election is a national issue, so I am not sure what kind of conclusion we can get from this," Bachtiar said.

"It also contains a worrying fact about our democracy: The survey says a large number of Jakartans are bored with the election.

"If this can be used as a representation of the nation's sentiment towards the election, then I truly feel our democracy is in danger.

"Elections are the only proper mechanism to appoint public officials in a democratic country," he said.

Bachtiar was also worried that the other conclusion from the survey could spark further controversy.

"The survey tends to be biased in favor of a certain candidate. Such a tendency will surely cast more doubts over the integrity of survey institutions," he said.

The survey also revealed that around 70 percent of respondents would pick incumbent President Susilo Bambang Yudhoyono, while Megawati came in second with 9.6 percent, and Kalla gained 3.9 percent of respondents' votes.

The presidential election law stipulates that a candidate must garner more than 50 percent of votes to win the July 8 election in one round.

Political experts and politicians, however, have questioned the integrity of survey institutions because most are funded by certain candidates, and they often present contrasting results.

Government/civil service

SBY and deputy Kalla in one last uneasy dance before election day

The Australian - July 2, 2009

Stephen Fitzpatrick, Jakarta – Less than a week before the election that will make or break their respective political careers, Indonesia's top leaders were forced to unite yesterday at celebrations to mark the 63rd birthday of the country's police force.

President Susilo Bambang Yudhoyono and his deputy, Jusuf Kalla, have played an uneasy dance over recent weeks as they competed with each other for voters' attention.

But with the presidential polls to be held next Wednesday, when the two men will go head-to-head with former leader Megawati Sukarnoputri for the right to run the country until 2014, the pair were forced on to the stage together one last time.

In recent weeks their only joint public appearances have been at a series of tepid nationally televised debates, where they engaged in mutual back-slapping apparently inspired by fear of a voter backlash.

Although there has been low-level sniping on the hustings about which of the two men might claim the greater credit for their government's achievements over the past five years, there has been little chance for the elder statesman to publicly outplay his offsider.

At yesterday's ceremony in Jakarta, Dr Yudhoyono swung the attention of all present towards next week's vote. In the days leading up to the election, the President warned, police should be especially careful to keep the peace.

"Security should be done in a persuasive, not repressive, way," he said. "Increase co-ordination and co-operation with every element of the nation so that all can create an atmosphere that is safe and peaceful."

Only in critical situations, he added, should repressive force be used – although, he quickly admitted, the presidential election was one such period when police should be prepared to be "firmer" than usual.

The election campaign appears to have left ordinary voters unexcited at its outcome – perhaps because they largely believe Dr Yudhoyono and his running mate, former central bank governor Boediono, will sail through in a single round.

At a campaign appearance late on Tuesday by Ms Megawati and her offsider, retired general Prabowo Subianto, thousands of supporters were already leaving the stadium by the time Ms Megawati took the podium to speak.

One of the few sparks in recent days has been a faintly animated exchange between Dr Boediono and General Prabowo during their vice-presidential televised debate.

Dr Boediono, a slightly bookish and generally soft-spoken and retiring character, accused his opponent of "offering dreams" for suggesting that 15 trillion rupiah ($1.8 billion) in foreign debt commitments could be re-channelled into a health insurance program by 2012.

The Megawati-Prabowo team has pitched itself as the champion of the vast Indonesian mass of ordinary poor, although this could still prove to be an ineffective strategy.

Rhetoric aside, neither has any real experience of poverty or track record of fighting it – rather, they both come from the super-elite that since national independence has tended towards protecting its own privileges.

In any case, Dr Boediono told General Prabowo, his dream of foreign debt refinancing was impractical.

"I don't think that we can multiply our budget by a factor of two or three," said the former economics professor at Gadjah Mada University, in the central Java city of Yogyakarta. "This is the reality of the world, which we have to face. Our program has to be a concrete one."

General Prabowo, with no illusions of being an intellectual, sniffed: "Excuse me, Mr Boediono. This is no dream. We have calculated the possibilities and, according to the opinions of our experts, it is extremely realistic."

Rp 100 billion at stake in pending deliberations

Jakarta Post - July 2, 2009

Jakarta – The state will likely suffer more than Rp 100 billion (US$9.6 million) in losses, if the House of Representatives is unable to complete its deliberation of 64 bills by the end of its term in September.

Starting its term in office in October 2004, the legislative body, through its national legislation program, targeted to pass 284 new laws, but has endorsed only 166 so far, with 64 still in process and the remaining 54 left untouched.

As in previous terms, it is very unlikely the current House will reach its target, House secretary-general Nining Indah Sari said.

The House has given top priority to 37 of the 64 bills being deliberated, but the deliberations will likely be terminated because of the unlikelihood of them being completed within the remaining three months.

The House will enter its recess period on July 3 and will resume activities on August 14 "and it will try to endorse prioritized bills. Actually, there are 64 bills currently being processed," Nining said.

All funds spent to finance the deliberation of bills would be wasted if the current House fails to pass them, because the next House would have to start from scratch.

Separately, House Speaker Agung Laksono said the cost of producing a law varied according to its scope and substance. "However, in my experience the average cost is between Rp 1.5 billion and Rp 2 billion per bill," he said.

Meanwhile, Indonesia Corruption Watch (ICW) coordinator Emerson Yuntho said if the bills are not passed the amount of state budget that would be wasted may be financially significant, but the non-financial costs would be much greater.

"The real issue is not the financial amount, but the essence of the bills," Emerson said. "For example, if the House fails to pass the Corruption Court bill, then it will discourage corruption eradication efforts. The potential to lose such an essential value cannot be measured in financial terms," he said.

Emerson said he was really confused with the House's poor legislative performance. "The government has allocated so much funding. It is very strange that legislators are not able to maximize the government's support," he said.

"In my opinion, political issues and vested interests have driven the House legislators to decline to do their jobs properly," he added.

However, Nining disagreed with Emerson's opinion that the legislators were not serious in doing their jobs.

"A number of special committees working on the bill have also submitted an official request to the House speaker to utilize the recess period to hold meetings and discussions, so they can reach their targets," she added.

Earlier, Gayus Lumbuun, a member of the special committee for the Corruption Court bill, said his committee would use the recess period to complete the deliberation of the bill.

However, Joko Susilo, a member of the special committee for the state secrecy bill, was pessimistic that his committee would be able to endorse the bill because of its controversial content. (hdt)

Transport & communication

'Becak' drivers challenge authorities over right to work

Jakarta Post - July 6, 2009

Prodita Sabarini – Writer Christopher J. Koch, in his book about 1965 Jakarta on the brink of political tumult, The Year of Living Dangerously, depicted the three-wheeled pedicabs, or becak, as one of the city's icons.

The story's protagonist was depicted in the book once pedaling the tricycle-rickshaw around the Hotel Indonesia traffic circle to the hotel on Jl. Thamrin.

Today, it would be unimaginable to see becak circling the city's landmark. The city administration banned the iconic vehicle from the streets of Jakarta in the 1970s, deeming them a menace to public order.

A continuous systematic attempt to eliminate the environmentally friendly vehicle has been carried out since the late 1990s, when then Jakarta governor Sutiyoso, in a move that only he could have conceived of, dumped hundreds of becak into the Jakarta bay. In 2007, the Jakarta administration reinforced the ban under a bylaw on public order.

Despite years of being banned, thousands of becak still operate in kampungs in West, East and mostly North Jakarta, says Marno Nandang Triwanto, from the Urban Poor Consortium (UPC). The becak drivers operate under fear of getting caught by public order officers, who confiscate any pedicabs they find.

These drivers are currently organizing a movement to protest the ban. Arguing it is unconstitutional, as it deprives them of their right to a livelihood, becak drivers staged a protest recently demanding the ban be lifted. Seventy-five drivers from North Jakarta pedaled their pedicabs to the North Jakarta municipal office, demanding the right to work.

From his becak in Koja, North Jakarta, Yusuf, 29, says he joined the Jakarta Becak Association (Sebeja) to defend his rights as a Jakartan.

"We need the money to live. I don't mind not driving a becak, as long as the administration can give us jobs," he says. He adds he is enraged at the becak ban and at allegations of corruption among public order officers.

Yusuf says some officers run a business of confiscating becak. "In the 90s, confiscated becak were thrown to the sea, but now some public order officers extort bribes from the drivers," he says.

Becak driver Dion, 27, says an officer once demanded Rp 200,000 (US$19) from him to get his confiscated becak back. "I didn't have that kind of money, so I didn't get it back," he says, adding he now rents a becak for Rp 5,000 a day.

The drivers say the officers dismantle the pedicabs and sell the parts as scrap metal. The Jakarta Post's calls to Jakarta Public Order Agency head Harianto Bajoeri went unanswered.

Yusuf says a becak can cost from Rp 500,000 to Rp 1 million. He says becak drivers or owners buy them from a manufacturer in Bekasi and pedal them over to North Jakarta.

Jakarta has no becak manufacturers. The 2007 bylaw prohibits becak assembling, ownership and operation. Operating and owning a becak is punishable with a month in jail or fines of up to Rp 5 million. Manufacturing or bringing a becak to Jakarta is punishable with three months in jail or fines of up to Rp 30 million.

Civil society groups say the bylaw discriminates against the poor. "Becak drivers don't violate the Constitution; the public order bylaw does, by depriving the drivers of their rights," the UPC's Marno says.

He adds he hopes the movement grows to push for change. "We hope to bring together all becak drivers from around Jakarta."

Becak driver Syarifudin, 38, says he may join the movement. "Working like this, we feel like burglars or criminals," he says. "Maybe because becak don't contribute money to the government, compared to motor vehicles that are taxed each year."

Institute of Transportation Studies (Instran) chairman Darmaningtyas says non-motorized vehicles should serve as a feeder for people coming off buses at the bus stop to their destination. He says becak or bicycles, which travel no faster than 3 kilometers per hour, are the appropriate options.

"But when becak were prohibited, ojek (motorcycle taxis) took their place," he says.

"Jakarta still needs becak; not on main thoroughfares, but on smaller streets connecting one kampung to another. This way, housewives going to the market can take becak. But since they're no longer available, people have to take things like bajaj (three-wheeled taxi), which are more polluting."

Darmaningtyas adds the pretext for the becak ban, that they caused traffic jams, was unfounded. "With no becak around, we still have traffic jams," he says.

Yusuf says he joined the movement because he was fed up with how officers treated becak drivers. "As a young person, I should work to change our fate," he says.

Not all becak drivers are as optimistic. Syuaib, 45, says he heard about the protest against the ban, but refuses to join in. "I'm sick of this situation. Nothing will change, it's useless. The little people always lose," he says.

Public remains skeptical of new law's effectiveness

Jakarta Post - July 6, 2009

Prodita Sabarini, Jakarta – The fast-deteriorating Transjakarta busway system has forced Jakarta resident Ratih Puspitasari back to using taxis to commute.

The long wait and queues, the jam-packed buses and the gaping holes in pedestrian ramps were enough for her to call it quits.

"It's most inconvenient at the Harmoni shelter," she says. "It's hot; lines are disorderly; buses take so long to come, and it's not as comfortable as it used to be."

The Transjakarta, touted by the Jakarta administration as one of its greatest accomplishments, can serve as a benchmark for other city public services.

Jakarta resident Meiranie Nurtaeni agrees with Ratih on the city's public transportation. She adds rules can often be bent for a fee.

Poor public services occur in administrative processes as well, such as in the issuing of ID cards and passports.

"I had to go three times to the immigration office and queue for hours to get a passport," Meiranie says. "Meanwhile, next to me, I see middlemen applying for other people's passports and paying bribes, and they get the job done faster than the normal procedure."

Both are skeptical the newly passed public service law will bring any change to services in the city. "It's just like the bylaw banning smoking – that didn't bring any significant change, and I don't think this law will bring much change either," Ratih says.

The law allows the public to sue the government and private institutions if the latter fail to provide adequate public services. It also makes public service providers liable to criminal punishment if through their negligence, members of the public are injured or die.

The city's sidewalks are peppered with holes and uneven paving, while busway bridges boast honking big gaping holes that have seen many a pedestrian get hurt. American national Roy Ventura was one of the victims; he dislocated his shoulder and toe when he fell into a massive hole on Jl. Sudirman.

He has demanded the Jakarta Public Works Agency reimburse him for his medical bills, to which the agency responded they would mull it over. He says he contacted the agency because sidewalk maintenance was their responsibility, but did not sue them.

Ratih says she came close to falling off a pedestrian bridge near the Jakarta Police headquarters a few months ago. "If I didn't snap to it, I might have fallen," she says.

But she adds she would be reluctant to sue the city, should she have an accident because of the poor conditions of the street. "It seems like such a hassle, and I'm not sure whether the public can actually win," Ratih says.

City spokesman Nurrachman said he had yet to receive the copy of the law, but promised to abide by it. "The city will obey the law," he said with a straight face.

Armed forces/defense

Row leads to military court bill's stalemate

Jakarta Post - July 2, 2009

Jakarta – Activists and legislators on Wednesday blamed the stalemate in the four-year protracted military tribunal bill on the "psychological war" between the police and military, particularly in regards to whether the civilian investigators can probe military officers allegedly committing crimes.

The bill was designed to amend the 1997 tribunal court law, which stipulates that the military police (PM) are involved in the investigation of military officers charged for civilian offenses.

The same law also rules suspected soldiers will be tried at a connectivity court, where the prosecutors and judges are a mixture of military and civilian personnel.

The activists and legislators suggested the civilian legal process should be implemented for military officers charged for civilian crimes.

Lawmaker Djoko Susilo, from the House of Representatives' Commission I on defense, said the Indonesian Military (TNI) and the government insisted on their stance, which seem to be unwilling to fully accept reform in the military court system.

"The military seem to be defending their 'prestige' and reluctant to be investigated by the police.

"Historically, the national police chief was under the TNI commander. After the reform era, however, the national police was separated from the military and connected directly to the president, while the TNI's administration and financial management remain below the defense ministry's command," Djoko explained.

History has prompted the military to be "psychologically jealous" of the police, Djoko said.

According to him, the last hearings concluded the Defense Ministry and the TNI still want to include the military police in the investigation of soldiers charged for crimes.

"An option was offered, namely the implementation of a five-year transitional period. During the period, the military police can still be involved but their authority fades at the end of the transitional period when the civilian police will fully take over the investigation into soldiers committing crimes," Djoko explained Wednesday.

"Another option is to form a supervisory body whose duty is to supervise the military police when investigating soldiers charged for committing crimes," he said, adding legislators had yet to choose either of these two options. Al Araf, a researcher from the Indonesian Human Rights Monitor (Imparsial), rejected those options saying there was no reason in any way for the TNI to avoid the general legal process if a military officer was suspected of committing a criminal offense.

"This is about the 'equality before the law' principle. Every citizen – military or civilian – must face the same legal treatment if committing civil offenses," he told a press conference at his office in Central Jakarta on Wednesday.

"The 'psychological war' between the military and the police is no longer relevant if the government as well as legislators are truly serious about reforming the TNI," Araf said. (bbs)

House 'lacks political will' to tackle TNI graft

Jakarta Post - July 1, 2009

Jakarta – Indonesia Corruption Watch (ICW) has accused legislators of having no intention to eradicate alleged corruption in the Indonesian military (TNI).

ICW deputy coordinator, Adnan Topan Husodo, acknowledged Tuesday that Indonesia's military budget was still far below standard, but was diminished by corrupt practices.

"Raising our defense budget will not end our military problems if an efficient and transparent audit is not conducted," Adnan told a discussion at the Alliance of Independent Journalists' (AJI) office in Central Jakarta.

He said alleged graft in Indonesian military institutions had never been investigated despite the Supreme Audit Agency (BPK) having found irregularities in military financial management.

"Irregularities in the BPK's audit results are likely to have been caused by corruption," Adnan said.

"The BPK has declared a disclaimer for TNI's 2006 and 2007 financial audits. Many of the suggestions made on each audit have never been followed up by the Defense Ministry or TNI."

In addition, several recent studies have declared the military are among the top-ten most corrupt institutions in Indonesia, he added.

"I still see no goodwill both from the TNI and the Defense Ministry to conduct healthy and transparent financial management," Adnan said.

He said that current laws limited the authority of police, prosecutors and the Corruption Eradication Commission (KPK). "They cannot 'trespass' on the military," he said.

Adnan urged lawmakers to add articles into the military court bill that would give the KPK the authority to investigate military corruption. "Legislators have been discussing the bill for four years, but are yet to show signs it will be endorsed soon," he said.

Legislator Djoko Susilo from the House of Representatives' Commission I on defense, acknowledged that there had been no consideration to include the authority of the KPK to investigate military graft into the bill.

"Our current discussion is focused on whether the police can investigate military officers involved in non-military offenses," he told the discussion.

Asked why he did not insert an article about the KPK's authority to investigate military corruption, he said, "I don't know".

Djoko said the police might handle corruption cases within the military, although Adnan said that solution was flawed as the police were also corrupt.

"Legislators should not privilege the TNI in connection with corruption," he said. "Billions of funds allegedly used improperly by the military was the people's money. The public deserves to know how their money is used." (bbs)

Police/law enforcement

Police, public not ready for partnership, says study

Jakarta Post - July 4, 2009

Andra Wisnu, Jakarta – The police and the general public are not ready to be partners in establishing community policing, with the former still lacking accountability and tending to act above the law, a study from the University of Indonesia (UI) has revealed.

In the study, The Potential of Community Policing in Urban-Based Societies, the 400 respondents in Depok and Bekasi, south and east of Jakarta, considered the police an overly dominant institution, due to the lack of any control mechanism.

"For instance, the study shows the public has no idea how to check on how many cases the police are handling, or whether the police have made any follow-up on reports," Kemal Dermawan, a criminologist from UI and the main researcher in the study, said Friday in Depok.

"Furthermore, the police also lack the initiative to announce how these cases are progressing, either because they feel they don't have to or because they fear it would tarnish their image. "Personally, I think it's both," he added.

The study is a response to a police system introduced nearly four years ago, called community policing.

The program, sponsored by the Japanese government and the Japan International Cooperation Agency (JICA), aims at demilitarizing the police force in Indonesia. The National Police were only separated from the military in 1998.

The study also shows that the institution that became a foundation for the program, the Police-Community Partnership Forum (FKPM), has instead served to disrupt it, as its militaristic style is deemed unfriendly to the public, and that the police continue dominating police-community forums.

"A by-product of this style of policing is more venues for corruption, because only a few members of the community get close to the community police," Kemal said.

Despite these snags, the study also shows the police have all the necessary regulations and knowledge to conduct effective community policing, Kemal pointed out, adding the police- community relationship remained strong, as both parties understood their need for each other.

He urged the police to loosen up in conducting community policing, saying that regional police needed to strengthen their watch over the district police, because the latter served as the first gateway in repairing the police's image.

"The aim of community policing is to create a sense of equality between the police and the community. This has yet to be seen, because the police are ignorant of people's rights," Kemal said.

The study supports an earlier statement by National Police chief Gen. Bambang Hendarso Danuri, who admitted police officers had an attitude problem.

But Kemal played down Danuri's remarks, calling it "just talk". "He's just talking to repair the police's image," he said. "He only makes it seems their image is all they care about. What the community needs now is action."

Corrupt police stigma still strong among Jakarta public

Jakarta Post - July 1, 2009

Andra Wisnu, Jakarta – Agnes, who would not give her last name for safety reasons, had to pay the police nearly Rp 3 million (US$294) to get a report confirming her car had been stolen last January.

"The money went in several phases of filing a police report," she told The Jakarta Post on Tuesday.

"First, it was demanded by the police officer writing the report, saying I had to pay to get the Pulogadung Police chief to sign it so I could take the report home."

Agnes did as told, saying the same thing happened over and again, all the way to the Jakarta Police's all-in-one administration office (Samsat). She knew she did not need to pay, but decided not to file a complaint.

"I was just glad I could finally claim my insurance," she said. "I didn't care how much I had to pay. I just wished I didn't have to feel so scared because there was just no sense that I was being helped."

It was a feeling shared by others interviewed by the Post. Despite the police's efforts to repair their image, rampant corruption within the force continues to muddy its reputation.

Agnes's experience occurred in the same month as the launch of a police program that then-newly inaugurated National Police chief Gen. Bambang Hendarso Danuri promised would reform bureaucracy.

Dubbed Quick Wins, the program provides a hotline for reports, and pledges more transparency in recruitment – to prevent favoritism – and in investigations, as well as free and faster administrative services.

On Tuesday, Bambang reiterated this promise, saying salary increases for officers were planned by next January, further pledging to continue with the Quick Wins program.

"We'll show the progress being made in the police force," he said at an event to celebrate the force's 63rd anniversary, which falls Wednesday.

But few see any progress. Achmad Faisal, 18, from Cikokol, Tangerang, said he no longer wanted to deal with the police, after they demanded Rp 450,000 last month for a driver's license without taking the test.

Corruption is not the force's only problem. Last week, Amnesty International released an 84-page report detailing police brutality, from victims, law enforcement officials, lawyers, journalists and rights groups.

In 2007, a UN special rapporteur for torture visited Indonesia and found police used torture as a "routine practice in Jakarta and other metropolitan areas of Java".

Neta S. Pane, head of the Indonesian Police Watch, an NGO monitoring police work in the country, said there were still too many irresponsible police officers to say the police were making progress.

He played down the planned salary raise, saying the police chief had missed the heart of the matter.

"The most important thing is for the police chiefs to really control their subordinates. Based on our observations, internal affairs doesn't investigate high-ranking officers."

Foreign relations

Washington takes new look at Jakarta under Obama: Envoy

Jakarta Post - July 2, 2009

Ary Hermawan, Jakarta – The historic election of US President Barack Obama has marked a new era in Indonesia-United States relations, however one cannot overlook the fact that relations had improved – although not dramatically – before the first US black president walked into the White House.

"I think, to be fair with president Bush, you had this moderate improvement on a steady pace while president Bush was in office," US Ambassador to Indonesia Cameron R. Hume told The Jakarta Post at his office on Tuesday.

According to Hume, the US expanded cooperation in the security sector by making more opportunities available for military training programs for Indonesia's security personnel. "The amount of money we put into that about doubled in the last two years," Hume said.

The US Pacific Command (PACOM) also recently sponsored joint training for UN peacekeeping forces, hosted by the Indonesian military, in Bandung. The militarily-advanced US, which lifted its embargo on Indonesia in 2005, has also helped the country with the installation of radars in the Malacca Strait.

"It's a gradual improvement, but I wouldn't say there's anything dramatic," he said. But has there been a shift since Obama took office?

The first change in US foreign policy toward Indonesia under the Obama administration was a "new look" at what had already been achieved, Hume said. "They say: 'Oh, so much has changed. What can we do now?'"

"So, that's why you have a new agenda with an added emphasis on education, the environment, health and I think work in these key areas will build on what we're already achieved."

Indonesian Foreign Minister Hassan Wirajuda met with US Secretary of State Hillary Clinton in Washington last month to discuss a comprehensive partnership agreement that was called for during the latter's visit to Jakarta in February.

The Indonesian Foreign Ministry's director general for America and Europe, Retno L.P. Marsudi, said the two parties had agreed that the partnership must focus on three main issues: political- security, trade and social welfare. The agreement, she added, would also mandate the creation of a bilateral consultation forum.

Retno said the partnership would strengthen ongoing negotiations on a number of issues such as education and security, adding that it would also reflect a convergence of views of both countries at a high political level. However, the current strong relations are not without challenges.

US-based rights groups such as the East Timor Action Network and Human Rights Watch have persistently criticized Indonesia for its failure to bring alleged rights abuses in Papua to an end. Congressman Eni Faleomavaega was quoted by the media as saying the US House of Representatives will not forget the Papua issue, although he had driven the move to scrap the Papua provision from the US foreign relations bill.

"I am aware of some of these (allegations)," Hume said. "The embassy makes great efforts to keep in touch with Indonesian human rights activists and with the Indonesian government, and to follow events. And I think to some extent we don't share the views with some of these reports."

He further explained that the embassy felt obliged "to look at the whole reality... not simply one event one day or one place. This is a huge country with many events in many places in any day. "Some of the specific allegations they have made we are not able to confirm," Hume said.

Another issue is the US' new anti-smoking legislation, banning imports of kretek (clove containing cigarettes) from Indonesia. The Trade Ministry protested against the bill before it was passed into law last month, saying it violated WTO rules.

"We are aware of Indonesia's concerns, and remain committed to sound public health policies consistent with our international obligations," the embassy said.

When asked about the growing pro-protectionism sentiment during Indonesia's elections, Hume said the United States hopes Indonesia will keep its economy open to the global economy and avoid risking losing great opportunities which were responsible for its current position as one of strongest economies in facing the global economic downturn.

Trade between the US and Indonesia has grown remarkably over the past five years. Last year, for the first time, US-Indonesia trade surpassed the US$20 billion mark, an increase of 28 percent from $16.40 billion in 2007 (see graphic). Currently, the US is Indonesia's fourth biggest trading partner after Japan, Singapore and China.

As concerted efforts needed to tackle climate change and pandemic threats, Indonesia and the US could also cooperate to find ways to get out the global economic downturn, Hume said.

Indonesia was rebuilding itself with democracy, he said. "I really do think, personally, it is remarkable the extent to which your country (has developed). In ten years you not only have opened up a vibrant media and an open political process, but have been able to do that and it has helped your stability."

"You've not only gone in democratic direction; you make it work for you and that's good – and that's a victory for every individual in Indonesia."

Economy & investment

Investment reaches US$7.3 billion in first semester

Jakarta Post - July 7, 2009

Jakarta – Total investment of US$7.3 billion (inward and domestic) in the first semester indicated brighter prospects, although lower than figures for last year, the Investment Coordination Board (BKPM) says.

BKPM chairman Muhammad Lutfi said Monday that the figure for inward investment was 27 percent up from that of the second semester last year, but still 35 percent down compared to the same period in 2008.

"BKPM hopes that the implementation of the one-stop service for the processing of investment licenses would further boost improvement in investment," Lutfi told reporters after signing an MoU with the Indonesian Chambers of Commerce and Industry (Kadin) on business data sharing and on joint promotion of investment projects to attract investment from local and foreign investors.

Lutfi was referring to a new government policy and regulations simplifying the bureaucracy regarding investment licenses for local and foreign businesses, in a bid to attract more investors into the country. These new policies would require further steps to implement transfers of authority from local government administrations to BKPM.

BKPM data shows that foreign direct investment (FDI) in the first semester this year reached $5.39 billion, a drop of 48 percent compared to the same period last year. Yet, the number of FDI projects increased to 614 from 561 projects in the same period last year.

According to Lutfi, the transportation, warehouse and telecommunication sectors recorded the highest FDI value at $1.2 billion.

The value for chemicals and the pharmacy sectors is $958.4 million, followed by construction sector at $481.4 million.

Trade and service sectors accounted for $441.2 million, while metal, machinery, and electronics attacted $306.5 million.

By country of origin, investors from The Netherlands invested the most at $1.1 billion, followed by Singapore with $793 million, and South Korea with $471 million.

Domestic investment more than doubled to $1.9 billion compared to the same period last year. The figure for domestic investment projects also increased to 134 projects from 107 projects in the same period last year.

Lutfi said further that the five top domestic investment sectors included chemicals, food and beverages, textiles, mining, and plantations.

The contribution of actual domestic investment was 26.8 percent of the total investment secured in the first semester of 2009, increasing 8 percent compared to the same semester last year.

According to BKPM, this combined foreign direct investment and domestic investment would create an additional 152,000 jobs for local workers. This will help compensate for jobs lost to export industries and promote economic growth. (mrs)

Indonesia consumer confidence rises on election

Reuters - July 6, 2009

Jakarta – Indonesia's consumer confidence index rose to its highest in 4 years in June, boosted by spending ahead of a presidential election and a resilient economy, a central bank survey showed on Monday.

Southeast Asia's biggest economy holds a presidential election on Wednesday with incumbent President Susilo Bambang Yudhoyono tipped for relection for a second term.

The central bank, Bank Indonesia, said earlier this month the economy was expected to grow at the higher end of a 3-4 percent range this year, down from 6.1 percent last year, but still a stronger performance than many neighbours.

"The campaign period ahead of the presidential election as well as relatively better economic conditions and inflation have supported improving consumer confidence," the central bank said.

Bank Indonesia's survey of 4,600 households in 18 cities across the country released on its website showed that the consumer confidence index rose to 109.1 in June, up from 105.9 in May. The previous high was 119.1 in December, 2004.

A reading above 100 means more consumers are optimistic than pessimistic.

A separate survey by the state-controlled Danareksa Research Institute, however, showed sentiment was little changed, with its index almost unchanged at 89.4 in June from 89.5 in May. The last time the index was above 100 was in February 2005.

"With the harvest coming to an end, rural consumers had less cash than before thus triggering slightly weaker spending power," Danareksa said in its survey.

Consumption accounts for about two-thirds of Indonesia's gross domestic product, giving it a better cushion from the impact of a global economic slowdown than some of its export-dependent peers.

Indonesia's inflation fell to 3.65 percent in June from a year earlier, marking the slowest pace in nine years, on the back of lower fuel prices and an easing in food price increases, allowing the central bank to cut interest rate further.

The central bank has cut its overnight policy rate by a total of 2.75 percentage points since December 2008 to a record low of 6.75 percent to as part of its efforts to revive consumption- driven growth. The central bank has indicated, however, that the monetary easing cycle is now drawing to an end.

New regulation 'favorable but may spark conflicts'

Jakarta Post - July 6, 2009

Mustaqim Adamrah, Jakarta – A new regulation which lays down a one-stop service for the processing of investment licenses is a step forward in making Indonesia more attractive, but it also has some potential to spark conflicts.

The Indonesian Chambers of Commerce and Industry (Kadin) said last week the presidential regulation may start rows between state institutions as it requires a handover of some authority from ministries and local government administrations in relation to the processing of investment licenses, unless clear technical auxiliary regulations are made.

The regulation – already signed and having come into effect two weeks ago – enforces the establishment of an integrated one-stop service system to make it easier for local and foreign investors to do business so they will no longer have to go through lengthy, and often costly, procedures in securing their licenses. It is an auxiliary regulation to the 2007 Law on Investment.

Under the regulation, ministries and state agencies will have to delegate their authority in respect of processing licenses and making available incentives, including in the fiscal sector, to the Capital Investment Coordinating Board (BKPM), while local administrations must also delegate their authority to the appropriate regional body responsible for investment.

Chris Kanter, Kadin deputy chairman on infrastructure and investment, said that while Kadin warmly welcomed the regulation, the government should provide more details on the timeframe and the types of authority to be delegated.

"The key to success for this integrated one-stop service system are: types of authority that need to be delegated and fixed arrangements for the delegation of each [specific] authority," he said in an interview.

He said he was doubtful that the regulation could be fully implemented by the end of this year as it would take some time for changes to be made in the new government as of October following the presidential election. However, he said, it would also probably be hard for ministries and state agencies to "let go" of authority.

He said the absence of more detailed explanations could increase the tensions between central government and regional administrations when the BKPM for instance needed to help an investor acquire land controlled by regional administrations.

"Regional administrations may use the Law on Regional Autonomy to argue that they're authorized to determine prices of land required by an investor, thus impeding the enforcement of the presidential regulation," Chris said.

Sharing similar sentiments, noted economist Sri Adiningsih of Yogyakarta-based Gadjah Mada University said regional administrations had long had the authority over "industry, investment and trade" in their territories as stipulated in the Regional Autonomy Law.

"The presidential regulation is prone to and may create conflicts between the central government and regional administrations over authority," she told the Post. "I doubt that regional [administrations] would willingly accept [the regulation]."

Key points in the regulation

Heads of ministries and state agencies delegate their authority reference licenses and incentives for investment to the BKPM head, while governors delegate their authority in these respects to the provincial investment agencies, while finally heads, regents and mayors delegate their authority to city and regency investment agency heads.

An integrated one-stop service system provides speediness, accuracy, simplicity, transparency and legal certainty and must be supported by a working mechanism that is understandable and accessible by investors, plus an integrated electronic information system.

The BKPM is responsible for serving investors under this investment coordination system including for non-renewable natural resources with a high risk of environmental damage; in industries with high priority at national level; and in businesses that cover more than one province;

Ministers and state agencies have two years at the latest to delegate all of their relevant authority to the BKPM.

A code of conduct on the implementation of the integrated one- stop service system will be issued within one year following the issuing of the presidential regulation.

Supporting facilities required for implementation of the integrated one-stop service system will be are made available within one year after the issuing of the regulation.

An integrated electronic information systems will be fully implemented within three years of the issuing of the regulation.

The BKPM will take over services from provincial and city or regency investment agencies if they are still incapable of providing the integrated one-stop service system as required.

Retail sales may grow below 10 percent, lowest since , 2003

Jakarta Post - July 3, 2009

Jakarta – The retail sector is doing better than most, but weakened purchasing power could dampen demand, so 2009 full-year growth in sales could fall below 10 percent, despite double-digit growth since 2003, says a survey.

The Neilsen Company revealed its latest survey on Thursday saying that the global economic downturn was to blame for the forecast lower growth for the industry for 2009, although sales in 2008 were not far short of a staggering Rp 100 trillion (about US$9.8 billion).

"This year is very tough due to weakening demand. Nielsen's most optimistic prediction is that sales will hit as high as 10 percent growth this year," Febby Ramaun, Nielsen Company retail associate director told a media conference.

Between 2003 and 2008, sales generated by the industry have grown annually between 13 and 21 percent per year, with last year's total sales valued at Rp 94.5 trillion, representing the biggest annual growth of the decade at 21 percent.

Nielsen's survey covered the sales of 54 top branded grocery products. In five months this year, sales grew 6.5 percent to Rp 39.8 trillion from the same period last year.

The survey also shows sales growth for traditional stores in the past four years was always below that of modern retailers. Last year, traditional stores sales growth reached 19.6 percent, just lower than overall retail growth of 21.1 percent.

Currently, there are about 12,000 modern retail outlets and 2 million traditional stores. Yet, the modern retailers now account for around 30 percent of the country's retail market share, according to the Nielsen survey.

However, Febby said that the modern retailer's actual market share was probably lower. "Nielsen's survey does not cover cigarette sales and non-branded products sales that are mostly sold in traditional shops," said Febby. (mrs)

Indonesian debt escapes top 10 default risk list

Bloomberg - July 3, 2009

Katrina Nicholas, Singapore – Indonesia's improving economic outlook has pushed it out of the world's 10 riskiest issuers of sovereign bonds, according to credit-default swap prices from Credit Market Analysis.

The perceived default risk on Indonesia's debt fell 267.5 basis points last quarter to a level indicating it's a safer investment than bonds of Argentina, Ukraine and Iceland, CMA said in a report. Those nations, along with Lithuania, Dubai, Romania, Bulgaria, Latvia, Venezuela and Kazakhstan, have the greatest probability of default among 63 governments with credit swap contracts on their debt, the report shows.

"Indonesia is enjoying something of a re-rating," said Tim Condon of ING. "Growth has surprised on the upside and there are high hopes next week's presidential election will deliver an outright win for the incumbent."

High-yield sovereigns of the nation's neighbors aren't as "credit investor-friendly," with the Philippines grappling with a budget deficit and Vietnam beset by a shortage of US dollar foreign exchange, Condon said.

The perceived default risk on Philippine government debt fell the least in Asia last quarter, contracting by 143 basis points.

Morgan Stanley economists drew parallels between Indonesia and India last month, saying the former now had a "strong domestic demand story" and could warrant inclusion in the so-called BRIC economies along with Brazil, Russia, India and China.

"The strengthened political foundations will accelerate the pace of policy reforms," Morgan Stanley's Chetan Ahya said, "which together with the ongoing structural decline in cost of capital and the natural advantage from demography and commodity resources are likely to unleash Indonesia's growth potential of 6 to 7 percent from 2011 onwards."

Moody's Investors Service listed the nation's strengths as "increased political stability, the containment of budget deficits and an improving external financial position" on June 12.

The country is said to have hired banks to help sell its first sovereign Samurai bonds, or yen-denominated notes sold by foreign borrowers in Japan.

The cost of protecting Indonesian bonds from default for five years fell 330.8 basis points this year and last traded at 307.5 basis points, CMA prices on Bloomberg show. Swaps on the Philippines declined 179.7 basis points to 212.9 and contracts on Vietnam fell 188.6 basis points to 309.1.

Indonesia's debt is rated Ba3 by Moody's, three notches below investment grade.

Investment from overseas tipped to plummet 58 percent

Jakarta Globe - July 2, 2009

Muhamad Al Azhari & Dion Bisara – Finance Minister Sri Mulyani Indrawati has forecast that foreign direct investment for 2009 will be $6.2 billion, less than half of last year's total of $14.87 billion, as companies remain cautious about expansion plans amid the global downturn.

"Overall investment in 2009 will be supported by [foreign direct investment] to the tune of $4.5 billion in the first half, but this will drop to $1.7 billion in the second half," Sri Mulyani told a hearing at the House of Representatives on Thursday.

"Investment indicators have not shown any improvement in this quarter. There are signs of stability but no signs of recovery yet," she said, adding that "companies are being more careful."

Last year, the country recorded total actual direct investment – domestic and foreign – of Rp 154 trillion ($17.13 billion), 20 percent higher than in 2007, data from the Web site of the Investment Coordinating Board (BKPM) said.

In May, the BKPM lowered its forecast for growth in combined foreign and local direct investment this year to 9 percent from 11 percent because of tight liquidity resulting from the global financial crisis.

BKPM Chairman Muhammad Lutfi said the board had cut its forecast after investment inflows in April proved disappointing compared with last year.

According to BKPM data, the rate of foreign direct investment fell 4.1 percent in April year-on-year to $1.4 billion from $1.46 billion.

The transportation, warehousing and communications sectors led the way, attracting $1.21 billion in investment.

Foreign direct investment grew by 43.8 percent in 2008 compared to a year earlier, and accounted for more than 80 percent of total investment last year.

MS Hidayat, the chairman of the Indonesian Chamber of Commerce and Industry (Kadin), was quoted by Detikfinance on Thursday as saying foreign direct investment was likely to fall as much as 33 percent this year because international investors had grown wary of investing in new projects, especially overseas.

"It looks like foreign investors are opting for short-term investments in Indonesia, such as in bonds, equities and sukuk [Islamic bonds]," he said.

Hidayat also said he was pessimistic that the government's Rp 73.3 trillion economic stimulus package would improve the investment climate, especially among foreign players, given the fundamental state of the global economy.

Analysis & opinion

On the big issues, graft and economy, you be the judge...

Jakarta Globe - July 7, 2009

The presidential election campaign has drawn criticism for being bereft of debate on specific social, economic and political policies. To help you get a sense of some key polices of each of the three candidate pairs, the Jakarta Globe gave their campaign headquarters a list of questions. After nearly a month of waiting and prompts, we finally received the answers – despite one camp initially saying it was "too busy campaigning." Here are edited highlights:

What do you think is the biggest and the most important issue for people in their daily lives?

Megawati-Prabowo:

First, the decline in Indonesia's political and economic authority. As a result, other nations look down on us. Second, the decline in people's dignity, caused by the cycle of poverty – more than 100 million Indonesians have an income of less than Rp 20,000 ($2) per day. Third, ineffective governance in addressing people's basic needs.

Resolving these issues requires a new political-economic paradigm. Reorganizing the political system would require strengthening the presidential system, which is supported by the House of Representatives. As for the state budget, priority needs to be given to fulfilling the most basic needs of the state, to ensure the creation of new jobs.

SBY-Boediono:

The economy, poverty, public health and corruption are the biggest issues in people's lives – plus, day-to-day security. In the last five years public security has improved. You can now walk around Sabang to Merauke and see smiles everywhere. You can walk the streets of Aceh looking for good food until midnight, even until dawn. This improvement in public security has also occurred in [former conflict areas such as] Papua, Ambon, Poso and Sampit, and elsewhere. At the same time, over the last five years people and students have been able to express their political ideas by demonstrating in the streets. It's part of democracy, right?

Kalla-Wiranto:

Health care should be free; it should be affordable to people from all walks of life. The bottom line is that there should be an improvement to health care itself. Surely, the standard of local medical school graduates can be improved, and the price of medication lowered. The current health care system is insufficient. Our public health care centers need to be upgraded. The centers' facilities need to be augmented to accommodate the hospitalization of inpatients and patients' mobility, particularly for middle and lower class people. The Ministry of Health's current regulation says sick people should go to hospital. It should be reformed; people should be able to get medical care for any condition anywhere, as long as it is administered by the state.

Will there be a change in the current corruption eradication strategy?

Megawati-Prabowo:

There will be differences: First, law enforcement institutions and the anticorruption culture will be strengthened. Second, focus will be on the roots of corruption, which is the state budget. The budget's having a disclaimer status for five years in succession should not happen again. Third, prevent any leak of state assets overseas.

SBY-Boediono:

Judge the incumbent by looking at what he has done over the last five years, and compare it to the five-year period before he took office. The difference is obvious. Now, nobody is immune from the law, including government officials and their families, governors, mayors, the Armed Forces and police generals. No matter who they are, if they engage in corruption, they will be prosecuted. Now, people are afraid to be corrupt. But corruption is still bustling. That's why we have to prosecute past cases as a deterrent to stop present corruption, and to prevent future corruption.

Kalla-Wiranto:

There is no problem with corruption eradication. Jusuf Kalla's commitment to corruption is magnificent. No Golkar legislative candidate has been accused of being involved in corruption. If there was, he or she would have been discharged immediately. It is his basic commitment. Kalla never protects his cadres if they are involved in corruption.

What the Corruption Eradication Commission (KPK) is doing today is in accordance with the law, but it has to be fairer and more consistent. In addition, Kalla will fix the overlapping [responsibilities] of legal institutions, which is happening right now.

What is your economic strategy, and strategy for the global downturn?

Megawati-Prabowo:

It is based on a people's economy paradigm, which is the antithesis of the prevailing neo-liberal economics. The strategy is based on:

1) Independent political-economic policies, a self-sufficient economy rooted in the Indonesian culture.

2) Rescuing state assets to guarantee state revenue and wholly used for public welfare.

3) Not commercializing basic state functions.

4) Giving priority to the effort to create 32 million new jobs.

5) Reforming the government bureaucracy so that officials absorb no less than 60 percent of public budget.

6) Improving infrastructure for the economy, such as the educational system which supports creativity and culture.

7) Give priority to developing sectors closely related to the public, such as agriculture, marine and micro-small-medium enterprise development.

8) Turn state-owned enterprises, cooperatives and the private sector into the main pillars of economic growth.

SBY-Boediono:

Over the next five years we will build on and sharpen our economic achievements. As the incumbent president, Yudhoyono's record of achievements over the last five years speaks for itself: economic growth, macroeconomic conditions and microeconomic conditions. In the future, we would have to strengthen the domestic economy, which has proven to be "storm- proof." Second, the government needs to continue to intervene through the use of economic stimulus packages, which now has reached at total of more than Rp 80 trillion ($7.84 billion). Third, the government has to strengthen pro-people programs, such as the Mandiri National Community Empowerment Program, school operational aid (BOS), direct cash aid, public health care and microcredit loans.

Kalla-Wiranto:

The tag line "Faster, Better" is shown in Kalla's economic and other programs, but in the economic context, Kalla emphasizes it even more clearly. The problem with the national economy is an abundant workforce without sufficient employment. And Kalla considers: how to absorb the work force, how to generate economic independence, and how to establish a sturdy foundation for economic growth. These three endeavors can be accomplished to accelerate economic growth by speeding up the development of infrastructure, including power plants, roads and bridges. Adequate infrastructure would provide the foundation for faster economic growth, since there would be no more gridlock and no more electricity shortages. Large-scale industries could be built and more of the work force could be absorbed.

Alcohol: Why Indonesia isn't producing enough (and how to fix it)

Jakarta Globe - July 7, 2009

Dian Ariffahmi – Indonesia tops a lot of global lists: It is the world's largest archipelago; it has the world's largest Muslim population; and, unknown to many, it is also one of the largest importers of alcoholic beverages.

That might explain why a senior member of the Indonesian Chamber of Commerce and Industry (Kadin) urged the central government on Monday to allow foreign investment into the country's alcohol production sector, saying that keeping it on the "negative investment" list only increased the country's dependence on imported alcohol.

The government is currently preparing a presidential decree on a newly revised negative investment list, which it is expected to share with industry groups on Saturday for comment.

Maxi Gunawan, head of Kadin's committee for Europe, said Indonesia was already the sixth largest importer of alcohol in the world by volume, just behind Thailand. "Now we are importing 100 million bottles a year. It's much more efficient if we can produce them here," he said.

The inclusion of alcohol on the negative investment list is more political than economic, Maxi said, and opening up the industry will mean less import taxes to distributors and bring additional benefits, such as new jobs.

Beer manufacturers PT Multi Bintang Indonesia and PT Delta Djakarta, which produces Anker beer, are the sole alcohol producers on the stock exchange and cannot meet domestic demand.

But Muhammad Lutfi, chairman of the Indonesian Investment Coordinating Board, said it would be hard to open up the industry because it had been on a government "black list" of products and services deemed detrimental to society, such as gambling, since 1994. "It's still closed [to investment], and there is no way that it will be opened," Lutfi said, noting that it could spark protests from the country's Muslims.

"Even if we exclude that industry from the list, I think alcoholic beverages would not grow as fast as other industries," Lutfi said, adding that local producers were not even presently operating at maximum capacity.

Indonesia's bleak record on rights

The Times - July 7, 2009

Eben Kirksey – Secretary of State Hillary Clinton has said improving relations with Indonesia will be a priority of the Obama administration. As Indonesians go to the polls Wednesday to choose a president, this is an excellent time for the United States to press for a fuller investigation of an incident that has been a stumbling block for the two countries: the 2002 ambush that killed two US schoolteachers in Indonesia's remote territory of West Papua.

New documents add a surprising twist to public accounts of the killings. Ballistics reports and eyewitness testimony point to an Indonesian military role in the attack. But declassified State Department documents reveal that Susilo Bambang Yudhoyono, the current president of Indonesia who is up for re-election Wednesday, coordinated a coverup. Before Indonesians head to the polls, our elected officials have the opportunity to tell Yudhoyono that the United States is disappointed with his record on transparency and human rights.

The teachers were ambushed about 300 yards from an Indonesian military checkpoint and pinned in their cars during 45 minutes of sporadic gunfire. Two Americans and one Indonesian were murdered and eight other Americans were wounded. The teachers were driving home from a picnic near the gold and copper mine operated by Freeport McMoRan, a US company that employed them to teach at an international school. Police investigators singled out officers in Kopassus, Indonesia's notorious special forces, as the culprits. The motive of these soldiers may well have been a bid for more money. In 2002 Freeport paid the Indonesian military $5.6 million for protection, including $46,000 to a Kopassus soldier placed at the crime scene by witnesses.

After reports of military shooters emerged, Yudhoyono, then political and security minister, took over the inquiry. Initially Yudhoyono blocked an FBI investigation, according to previously secret State Department cables obtained through a Freedom of Information Act request. The documents were released online last week. While Yudhoyono stalled, Indonesian military agents intimidated key witnesses and tampered with material evidence.

Despite initial CIA reports linking military shooters to this murder, the Bush administration pushed to renew financing for Indonesia's armed forces. With a population of 240 million, Indonesia, the world's largest Islamic country, was seen as a key ally in the global war on terror. With vast mineral resources, natural gas reserves and timber, Indonesia was also regarded as an important US trading partner. Nevertheless, a Republican- controlled Congress stonewalled Bush administration attempts to fund training for Indonesian soldiers until they cooperated with the FBI. Justice in this murder case became the most important issue in the bilateral relationship between the United States and Indonesia.

The trail was cold by the time the FBI was allowed in the country. Yudhoyono began to micromanage the investigation, meeting repeatedly with the low-ranking FBI field agents in charge of the case, according to the declassified State Department documents. Initially the FBI investigators were only allowed to interview witnesses in the presence of Indonesian military agents and were given limited access to material evidence.

The scope of the FBI investigation was also limited by Bush's goals in the war on terror. The special agents found a fall guy but tiptoed around evidence connecting him to the Indonesian military. Antonius Wamang, an ethnic Papuan, was eventually indicted by a US grand jury for his role in the attack. He was apprehended in 2006 by the FBI and sentenced to life in Indonesian prison. But Wamang had extensive ties to the Indonesian military, and these ties were not explored in the Indonesian court system.

The impunity in this case speaks to a broader pattern of abuse by the Indonesian military directed at their own people, especially ethnic minorities. Since Yudhoyono began his first term as president in 2004, scores of indigenous Papuans have been killed by government soldiers. Last month a 13-year-old boy was shot dead. Since April seven young Papuan women have been kidnapped and raped, others killed, and civilian homes burned during a series of police sweeps in West Papua's highlands.

This week Yudhoyono is running in a hotly contested presidential race against other former generals with similarly dismal human rights records. Gen. Wiranto, vice president on the Golkar ticket, has been indicted by the United Nations for crimes against humanity in East Timor. The Democratic Party of Struggle's vice presidential candidate, Gen. Prabowo Subianto, commanded the Kopassus special forces when his subordinates kidnapped and disappeared student activists.

Indonesian voters have bleak options at the ballot box this week. No matter who is elected, the Obama administration should ensure that the masterminds of the 2002 ambush are brought to justice. The FBI investigation into this case is still officially open and Eric Holder's Justice Department should move forward to bring it to a conclusion. Prosecuting the people who were truly responsible for this attack will help protect US and Indonesian citizens alike from further human rights abuses.

[Eben Kirksey, a postdoctoral fellow at the University of California Santa Cruz, is completing a book about the independence movement in West Papua called "Freedom in Entangled Worlds." To view the newly released State Department documents go to ebenkirksey.blogspot.com/.]

A democratic dark spot in Indonesia

Asia Times - July 6, 2009

Tom Benedetti – Legislative election results in April indicate that incumbent Susilo Bambang Yudhoyono will likely win Wednesday's presidential vote in Indonesia. Unless Yudhoyono plans some dramatic changes for his second term, Jakarta's duplicitous laws and reliance on militarized commerce in West Papua will continue to devastate its largest province.

Along with Papua New Guinea, West Papua contains the second- largest rainforest on Earth, an area second only to the Amazon in terms of its importance to climate change as well as ecological and cultural diversity. Papua's forests form the largest part of the "lungs of Asia". Yet they are disappearing at an astounding rate.

According to Papua governor Barnabas Suebu, Papuan forests cover 42 million hectares. Over half of that area has been designated by Jakarta as production forest and another 9 million hectares designated for agricultural development, such as environmentally degrading palm oil plantations.

In 2001, World Wildlife Fund-affiliate Telapak estimated that at least 1.5 million hectares is deforested each year, mostly by industrial scale clear-cutting – a controversial logging practice in which most or all all trees in a harvest area are cut down. Since then the number of logging concessions granted in Papua has increased tenfold.

Tropical rainforests cannot be replanted once they are clear-cut, and of grave concern is an estimate by non-governmental organization Watch Indonesia! that in many areas 90% of the logging is illegal and often conducted by the Indonesian military (TNI).

The TNI has also made tens of millions of dollars per year providing security services to multinational enterprises like the world's largest gold mine, owned by Freeport McMoran, a United States mining giant that has long been accused of being a major polluter in Indonesia. Studies indicate the TNI is at least 60% self-funded through its commercial ventures.

Indonesia clearly does not want the world to notice Papua's plight. Journalists and human-rights monitors have not been allowed into West Papua since 1969. The International Red Cross was thrown out last March. Freedom of expression laws, which apply across the rest of Indonesia, have yet to be implemented in West Papua.

Like most other indigenous peoples, West Papuans traditionally believed that human beings are owned by the land, and not vice versa. Prior to the Indonesian occupation, Papuan tribes lived sustainability and at relative peace with each other in one of the most culturally and ecologically diverse places on Earth.

The tribes' myriad models of human sustainability, including their world views and ancestral knowledge of medicinal plants, have been steadily disappearing since the 1960s as the land is plundered by militarized commerce and West Papuan history is erased by a 48-year-and-counting ethnocide.

To confuse any attempts at global awareness, Indonesia has officially changed West Papua's name four times since occupying the region in 1963, right after West Papua declared its independence under United Nations authority. (Indonesia also invaded East Timor within a year after it declared independence in 1975.)

So what are the occupation forces trying to hide? We need only look back a few weeks to get a sense of what has been happening over the past 48 years. On June 24, five Australians were released after being sentenced to between two and three years in jail and held nine months in prison for entering West Papua without a visa and proper clearance. They flew in last September for a three-day visit under the impression they could obtain a visa on arriving at Merauke international airport. The pilot, according to reports, explained that "nobody realized West Papua was so sensitive that it was like flying into a military base".

On June 25, one day before the UN's International Day in Support of the Victims of Torture, Indonesia's new police regulations came into effect. The regulations support reform, but do not make the practice of torture a punishable crime. While a problem in other parts of Indonesia as well, Papuans in particular continue to suffer institutionalized human-rights abuses from Indonesia's military and police forces. These include extrajudicial executions, arbitrary imprisonment, rape, torture, environmental degradation and natural-resource exploitation on a massive scale.

Also on June 24, Amnesty International and Human Rights Watch, human-rights advocacy groups, issued in-depth reports on the recurring cases of torture and arbitrary arrest in West Papua. They both emphasized the need to address the systemic impunity enjoyed by Indonesia's police, military and special forces, known as Kopassus. This impunity, they argued, enabled the suppression of civil, political and human rights in West Papua.

Officers indicted for gross human-rights violations in East Timor and Aceh remain at large and active in the military, some of them have been promoted to new posts in West Papua. For example, Colonel Burhanuddin Siagian, indicted for crimes against humanity in East Timor, later became commander of Papua's Jayapura sub- regional military command.

Human Rights Watch and many others are calling on the US, United Kingdom and Australia to withhold military and counter-insurgency intelligence training until efforts are made to investigate and hold members of Indonesia's Kopassus accountable for rights violations.

Ignoring those calls, the US House of Representatives scrapped a foreign relations bill provision on June 20 highlighting the political status and human-rights conditions of West Papua, clearing the way for continued diplomatic and military support in the face of Indonesia's dismal record on human rights. Australia has also resumed regular training programs with Kopassus and the United Kingdom is planning to start.

Kopassus is currently headed by Yudhoyono's brother-in-law, Major General Pramono Edhie Wibowo. An Indonesian court indicted seven Kopassus soldiers for the fatal beating of Theys Eluay in 2001, who was at that time West Papua's leader, duly elected by an inter-tribal council a short time before his death. Over 20,000 Papuans came to witness his burial.

The Kopassus soldiers responsible for Eluay's death were each given jail sentences of roughly three years – ironically, the same sentence meted out last January to 11 locals for organizing peaceful protests and the alleged crime of raising the West Papuan national flag. Though their treatment in jail will no doubt be different, and the West Papuans may never come back.

At first welcomed by the majority of Papuans, Indonesia's 2001 Special Autonomy law has never been fully implemented, dashing hopes of peaceful coexistence in West Papua. It has served only to postpone censure from other nations and create opportunities for graft, military expansion and continuing colonization. Like the presidents who came before him, Yudhoyono has so far ignored calls for tribal council dialogue with Jakarta mediated by a neutral third party.

If re-elected, Yudhoyono will immediately face a new challenge with West Papua, a test of his willingness and his ability to gain some measure of control over military reaction and push through badly needed democratic reform. On May 14, tribal leaders announced an historic consensus by officially declaring the 1969 "Act of Free Choice" illegal.

West Papuan leaders agreed instead on a manifesto establishing their fundamental human rights and national sovereignty and which stated unequivocally that Indonesia had never had a legal right to ownership of their ancestral lands. This consensus bodes well for West Papua, as does the formation of International Parliamentarians for West Papua and International Lawyers for West Papua groups earlier this year. However, a number of Papuans are now in jail awaiting trial for expressing their support of these institutions in peaceful demonstrations.

It is important to note that West Papuans have consistently expressed willingness to let Indonesian migrants stay on their lands. Their quarrel is not with the Indonesian people; it is with rogue elements in Indonesia's military plundering their land, terrorizing their villages and fomenting conflict by funding and supporting extremist militia groups like they did in East Timor 10 years ago in a pre-independence orgy of violence and destruction. In 2005, religious leaders from all parts of West Papua, representing Christians, Muslims, Hindus and Buddhists, issued a joint statement that West Papua must become a "Land of Peace". This is a notion supported widely by the local population and clearly demonstrated by a long and growing tradition of peaceful protest.

For instance, on December 1 last year, the date many Papuans consider their day of independence, 10,000 people gathered for a prayer meeting in Nabire. At least 2,000 demonstrators marched that same day through the streets of Manokwari, calling for the return of fundamental human rights.

In January, the Jayapura High Court concluded that leading peaceful demonstrations and speaking out in support of an independent West Papua was an act of subversion and therefore justified the heaviest possible sentences. The judges also opined that if public display of cultural symbols was allowed to continue, it would "damage the consolidation of the ethnic culture of the Papuan people".

Yet peaceful protest is a right protected by international human-rights law, including the International Covenant on Civil and Political Rights which Indonesia ratified in February 2006. Until this, the right to self-determination and other fundamental human rights are respected, and until military commerce is reined in, one of the most precious places on the planet will soon be destroyed forever by a blatantly hostile power.

When will the world, and just as importantly, a newly elected Yudhoyono, take notice?

[Tom Benedetti is moderator of the West Papua Action Network, a network of Papuans and Canadians concerned about injustice, cultural persecution and environmental degradation in Papua.]

Indonesia: Challenging the neo-liberal regime

Green Left Weekly - July 6, 2009

[The following article is compiled from an article by Dominggus Oktavianus and reports by Ulfa Ilyas and Rudi Hartono. It has been translated by Data Brainanta.]

More than 2500 people from the Volunteers of People's Struggle for the Liberation of Motherland (SPARTAN) held a festive anti- neoliberalism protest in front of the National Election Commission on July 1 in Jakarta.

The multi-sector coalition, initiated by the People's Democratic Party (PRD) to intervene in the 2009 election, held similar protests involving more than 1200 people in Makassar on the island of Sulawesi.

Hundreds rallied in Surabaya, Medan, Lampung, and protests occurred in 11 other cities.

The following day, a SPARTAN-organised protest drew thousands in Riau, Sumatra and 80 people in the central Javanese city of Semarang.

The SPARTAN protesters mostly came from the poor, organised through the Indonesian Poor Union (SRMI), as well as some labour and students activists. Protesters denounced the incumbent in the July 8 presidential election, Susilo Bambang Yudhoyono, as a neoliberal politician supported by foreign interests.

Agus Priyono, SPARTAN's general coordinator, said that protests targeted candidates who represent the political-economic system based on the "Washington Consensus", which promotes policies that liberalise trade, introduces "flexible" working conditions and a free hand for investors.

"Neoliberalism is actually an incarnation of neo-colonialism that was fought against by our founding father, [former president] Sukarno", he said.

Electoral politics and neoliberalism

A decade of intense economic liberalisation has increased poverty, unemployment, and environmental destruction. Almost half of Indonesia's 230 million people live on less than US$2 a day.

Thirty seven million people are unemployed and thousands of children suffer malnutrition. The destruction of national industry, both in agriculture and manufacturing, goes hand-in- hand with big business's plunder of Indonesia's economic resources, through legal and illegal means.

Deforestation for timber production, mine expansions and fossil fuel consumption have increased drastically in this period.

Most people are not aware of the cause of the situation. Nor do they see the link between the degradation of their lives and their electoral choices.

This is the product of decades of repression and de- politicisation under the 1965-98 Suharto New Order dictatorship. This has been made worse by the illusions and image manufacturing that have dominated electoral politics since 1999.

Until the rise of neoliberalism as an issue in this year's presidential election, previous electoral contests did not involve a contest between pro-people policies versus pro-capital ones.

However, the bitter truth is that this development is not directly caused by any advances for progressive and democratic forces. Rather, it comes from a conflict within the oligarchic elites. This specifically involves Prabowo Subiyanto, a retired lieutenant-general who commanded the notorious Kopasus elite troops involved in the kidnappings and killings of pro-democracy activists in 1998.

Lately, the content of Prabowo's speeches are almost identical to the arguments of progressives in recent years. This is both the way he explains the nature of neoliberalism as well as, to a degree, the proposed economic solutions.

Prabowo is running for vice-president with the presidential candidate Megawati Sukarnoputri in this election. Is his populism an illusion, considering that Megawati carried out a neoliberal agenda when she was in power between 2001-2004?

Only time will tell.

Then there is the presidential candidate Jusuf Kalla, now vice- president, who talks more moderately about a national self- sufficient economy and promotes programs to strengthen domestic capitalists and weaken foreign capital's domination.

He comes from Suharto's Golkar party. His running mate is Wiranto, the armed force chief from 1997 to 1999 and repsonsible for serious human rigths violations – most well known the massacres in East Timor in 1999.

This camp represents an alliance between a sector of Indonesia's capitalist class with military elements dating from the New Order dictatorship.

However, Kalla's openess, determination, and egalitarian appearance has drawn support from critical cultural figures and a handful of activists.

Facing them is the incumbent Yudhoyono. His running mate is Budiono, the head of the central bank and the International Monetary Fund's trusted economist who been a key to implementing economic liberalisation.

Armed with the image of being a more "civilian" former general, with a gentlemanly manner, committed to anti-corruption and from a simple farmer family, Yudhoyono seems to be in the best position to implement a neoliberal agenda.

The Economist described him in a March 24 article as "a champion of the foreign investors".

Under Yudhoyono's administration, 44 state-owned companies were sold at discount prices to foreign buyers in one year.

He is notorious for the explosion of debt during his administration, which rose at the highest rate in Indonesian history, $8 billion a year.

Under Yudhoyono, Indonesia has also been active in endorsing trade liberalisation at a global as well as regional level.

His financial backing and image appealing to Indonesia's feudal past has resulted in Yudhoyono leading various polls.

Not surprisingly, various mid-sized political parties, including the religious fundamental ones, have opportunistically supported Yudhoyono. As the incumbent, he is also able to use the state apparatus for his benefit.

Economic bribes, such as the Direct Cash Assistance and Rice for the Poor programs, that were usually with the neoliberal austerity programs, have been used by Yudhoyono as a sign of his "generosity".

Neoliberalism and human rights

This reality has caused confusion among progressive groups. Most human rights NGOs, mostly foreign-funded, support Yudhoyono because they believe that his human rights record is the least bad when compared to Prabowo or Wiranto. This is despite Yudhoyono being directly involved in the July 27, 1996 military attack against Megawati that killed dozens of people. He served in occupied East Timor in the 1970s, when serious human rights abuses occurred.

His administration has not shown any serious commitment to solve past human rights cases. Violations of human rights, including economic, social and cultural rights, intensified during his term.

The price of basic goods increased more than 100% and fuel subsidies have been cut three times. His administration's response to the global economic crisis, transferring the burden onto the poor majority, reflect Yudhoyono's loyalty to neoliberialism.

Those on the left that have been campaigning against neoliberalism are faced with the dilemma that there are no ideal candidates. Some choose to remain uncontaminated by any connection with the political elites by calling for a boycott – risking isolation from the majority of people who accept the current electoral process.

The April legislative elections recorded an abstention rate of 40%. But this does not imply, as this section of the left believes, an active boycott against the representative system.

Studies have showed that abstention occurred mostly due to political indifference or technical problems, such as a lack of sufficient information.

Moreover, a boycott by some sections of the urban middle-class cannot stop the widespread belief, tied to the huge campaigns and money politics, that exercising the periodic right to vote is the "best possible way" to relate to politics as the economic situation deteriorates.

The various left positions can be into three broad categories. First, those that do not intervene in order to prevent "contamination" from the elites. This argued on ethical grounds – very debatable ones.

Second, those who intervene by rejecting all candidates, on the grounds they all have bad human rights records and represent the interests of capitalism. This is the position of a limited section on the left and it tends to benefit Yudhoyono in practice.

Third, those who focus their attack against the most obvious representation of neoliberalism, Yudhoyono, while remaining critical of the other candidates.

For this sector, intervening in the elections is a way of promoting, and seeking to organise around, anti-neoliberal policies. This is what the SPARTAN-organised protests have sought to do.

Supporting this view, the National Liberation Party of Unity (Papernas) have said that Yudhoyono's rivals who speak against neoliberalism still have to prove that they are not just "thieves who shout thief".

Anti-neoliberalism cannot be demonstrated only through debates and advertisements, but through concrete measures such as the nationalisation of the oil and mineral industry, cancellation of foreign debt and a national industrialisation program.

[Anshar Marulu, SPARTAN's coordinator in Makassar, challenged these candidates to support and join the anti-neoliberal mass.]

Anti-neoliberal demagogy fails to enliven Indonesian election

Direct Action - July 2009

Max Lane – Rallies and other public shows of support have remained weak for the three candidates and their running mates in the weeks leading up to the July 8 Indonesian presidential election. Two of the rival candidates head the current government – incumbent President Susilo Bambang Yudhoyono and his vice- president, Jusuf Kalla. They share responsibility for continuing the neoliberal "free market" economic policies of the previous government of Megawati Sukarnoputri, who is the third presidential candidate.

Kalla, the current head of late dictator Suharto's Golkar party, was a minister in Megawati's 2001-04 government. Yudhoyono's vice- presidential running mate, Australian-educated economist Budiono was Megawati's finance minister before becoming Yudhoyono's economy minister in 2005. Yudhoyono was also a minister in the Megawati government. Not surprisingly, there is little policy difference between the three presidential candidates. This was highlighted by their first televised "debate". The June 19 Jakarta Post reported: "The three presidential candidates made some points in the television debate last night, but viewers waited in vain for the excitement of claims and rebuttals, which are the norm in day-to-day campaigning. Instead, the three candidates did their best to agree and when it came to areas where the three had differences, they did their best to gloss over them with banalities."

Stephen Fitzpatrick, The Australian's Jakarta correspondent was more blunt. In the paper's June 20 edition, he reported: "The nationally televised presidential debate between the three contenders for Indonesia's top job – Susilo Bambang Yudhoyono, Jusuf Kalla and Megawati Sukarnoputri – was devoid of one key element: debate asked by moderator Anies Baswedan, a prominent political scientist and head of Paramadina University, to explain their campaign slogans, the three engaged in prolonged mutual congratulations."

Kalla's running mate is retired general Wiranto, still under summons to appear before the UN Serious Crimes Commission investigating human rights violations in East Timor under the Suharto regime's military occupation. Megawati's running mate is retired general Prabowo Subianto, widely held responsible for the organising of the 1997-98 kidnapping and torture of democracy activists, including members of the left-wing Peoples Democratic Party (PRD).

Populist demagogy

Both Kalla and Megawati have engaged in populist-nationalist demagogy. The most aggressive demagogy has come from the Megawati and Prabowo. They have pitched their campaign as being in support of "people's economics" and against "neoliberalism". They have run a massive advertising campaign around these themes, including attacking Budiono for being in favour of the International Monetary Fund's neoliberal policies. In the wake of the 1998 Asian financial crisis, the IMF's demanded as conditions for a US$43 billion bailout package that Indonesia slash public spending, privatise state-owned businesses, cancel infrastructure projects and increase taxes.

Most activists on the left have pointed out the hypocrisy of this demagogy. Megi Margiyono, active in the alternative media, pointed out that during Megawati's presidency, she sold seven major state-owned enterprises in telecommunications, pharmaceuticals, mining, the airports, cement production and real estate. The Megawati government also presented to parliament, which duly passed with Golkar's support, the law on privatisation of state enterprises, and laws on plantations, oil and gas, electricity and labour regulation, all of which deregulated these sectors, opening them to being taken over by private businesses, domestic and foreign.

These facts, alongside publicity about the enormous wealth of Prabowo's family, including his own collection of US$300,000 polo horses, is weakening the impact of the Megawati-Prabowo demagogy. So far, most polls do not show any dramatic increase in their popularity. In the April parliamentary election, Prabowo's party, who ran the same kind of demagogic campaign then, scored 4% of the valid votes, while Megawati's party received just under 15%.

Nearly all of the organised left in Indonesia has been advocating abstention from the presidential election on the grounds that there is no "lesser evil" candidate. Voting in Indonesia, unlike in Australia, is not compulsory. Some on the left have pointed to the latent threat of any rise of support for Prabowo, who is on record as stating that the political model he favours for Indonesia is represented by "strong" governments like that of Suharto and by Singapore's long-time prime minister, Lee Kuan Yew. Most of the left groups have been concentrating on working out how to unify their forces for extraparliamentary campaigning in the post-election period.

However, in 2007 one wing of the Peoples Democratic Party (PRD), the left party that played the leading role in initiating public protest actions against the Suharto dictatorship in the 1990s, decided to stand candidates in the 2009 parliamentary elections under the banner of the Star Reformation Party (PBR), a party that had been supporting the Yudhoyono-Kalla government since 2004. Led by PRD chairperson Dita Sari, they argued that this was a way to gain access to the masses to propagate a radical program. In fact, their campaign watered down their politics substantially. In any case, the PBR's national vote dropped from 2.4% to 1% despite the Sari PRD group taking hundreds of its activists into the PBR.

During the parliamentary election campaign, PBR chairperson Bursah Zarnubi expressed agreement with Prabowo's Gerindra party and also maneouvred with Golkar, inviting Golkar leaders to speak at PBR-organised events. He also expressed support for Rizal Ramli, an economist turned politician, also running on a demagogic nationalist platform, and advocating Lee Kuan Yew's autocratic regime as a model for Indonesia. Since the parliamentary elections, the PBR has returned to supporting Yudhoyono.

Dita Sari backs Kalla-Wiranto

Dita Sari has launched a new group, the Courageous Volunteers for Resurrecting Self-Sufficiency (RBBM), to support the candidacy of Kalla and Wiranto. At a press conference on June 6 that was attended by Kalla, Sari stated that it is "the [Kalla-Wiranto] partnership that most connects with workers". The Jakarta Kompas daily reported her as saying that "the concept of economic self- sufficiency being offered by the JK-Win ticket satisfies the points that up until now have been longed for by workers, including among other those related to the JK-Win program to protect domestic industry and to introduce outsourcing and contract labour systems that truly side with workers". The rest of the left - and the PRD in the past - has campaigned for the end of outsourcing and contract systems which the Yudhoyono-Kalla government has been introducing.

Kompas also reported Sari as saying, "What's important is the system. Although he is from business circles, he has a good system. How he oversees the system to regulate himself as a government official and a businessperson. [Even] if there are conflicts of interest, right, this could arise in any kind of profession." On Wiranto's past involvement in human rights violations, Sari was reported to have said, "Everybody has issues in the past".

According to a June 9 statement issued by Data Brainanta, one of the international officers of Papernas, an electoral formation created by the PRD in 2006 that failed to get electoral registration, Sari resigned from the PRD and Papernas before she joined the Kalla-Wiranto campaign team. Brainanta stated: "Thus Dita's support to one of the presidential candidates (Kalla- Wiranto) is entirely her personal decision and has nothing to do with PRD/Papernas policy."

However, nowhere in Brainanta's statement does he condemn or criticise Sari's decision to support the Kalla-Wiranto ticket. In fact, after stating that, "Currently, PRD/Papernas is not supporting any candidates", Brainanta's statement contradicts itself by explaining that the PRD/Papernas is intervening in the presidential campaign with an anti-neoliberal agenda which, it claims, is "directed specifically to [i.e., against] the incumbent, Susilo Bambang Yudhoyono, who had appointed an IMF member, Budiono, as his vice presidential candidate. This position will obviously benefit his rivals, Kalla-Wiranto (protectionist) and Megawati-Prabowo (populist), and PRD/Papernas will give critical support to them on the basis of anti- neoliberal programs". Thus, the PRD/Papernas can support Sari's campaigning for Kalla, by allowing her to mobilise workers under Papernas' influence, while also keeping lines of support open for the Megawati-Prabowo campaign.

By declaring Kalla-Wiranto as being "protectionist" and Megawati- Prabowo as "populist", PRD/Papernas has joined in the chorus of demagogy pushed by these capitalist politicians to obscure their actual pro-neoliberal policies, as exemplified by their records when in government. It might be noted also that Budiono is not a "member" of the IMF. The IMF has no personal members. The Indonesian state is a member of the IMF, and has been represented at the IMF's annual meetings in Washington by Budiono on behalf of the Megawati and Yudhoyono-Kalla governments.

The eagle has crash-landed

Inside Indonesia - July-September, 2009

Despite an unprecedented media campaign, Prabowo Subianto's political comeback has fallen flat – for now

Dirk Tomsa – Ten years ago it seemed as if Prabowo Subianto's political career was over before it had really begun. During the twilight days of the New Order, the former commander of the notorious special forces unit Kopassus had lost a power struggle against his arch-rival Wiranto and was subsequently dismissed from the military. Accused of involvement in the abduction of student activists and the instigation of the anti-Chinese riots in Jakarta in May 1998, the former son-in-law of ousted president Suharto considered it safer to leave the country and go into temporary hiding. In self-imposed exile in Jordan he turned his attention to business, making a fortune on the international oil and gas market and through a number of high-stake deals aided by his billionaire brother, business tycoon Hashim Djojohadikusumo.

In the meantime, Prabowo's arch-rival from his days in the army, Wiranto, enjoyed a brief moment in the sun. Having outmaneuvered Prabowo during the turbulent days of the transition, the former adjutant of Suharto was instrumental in helping Abdurrahman Wahid to an unexpected stint at the presidency in 1999. But to Wiranto's disappointment, his support for Wahid did not bring the desired recompense. Instead of being rewarded with the vice- presidency, he had to make do with a ministerial post. Shortly afterwards, Wahid added insult to injury when he sacked Wiranto from the cabinet. Thus, merely two years after the fall of Suharto it seemed, for a short time at least, as if there was no place for either Wiranto or Prabowo in Indonesia's new democracy.

It did not take long for the two to attempt political comebacks. In 2004, Wiranto and Prabowo were both candidates in Golkar's national convention to select a presidential candidate. Wiranto in particular invested huge amounts of money at the convention in order to secure a place in Indonesia's first-ever direct presidential election. In the end the former commander-in-chief of the armed forces did manage to win the convention, but he failed to make it all the way to the palace, finishing third in the presidential poll. Undeterred by the defeat, Wiranto then moved on to found his own party (Hanura) and soon began preparing for the next elections in 2009.

His old foe Prabowo, meanwhile, was not just sitting idly by. In fact, it seemed as if defeat at the Golkar convention had only whetted his appetite for politics. Watching Wiranto's activities carefully, Prabowo too began to get ready for the next elections. In contrast to his half-hearted campaign in 2004, however, this time he meant business. Assisted by a high-profile media consultancy firm from the United States, Prabowo crafted an elaborate strategy which he hoped would eventually elevate him to the highest office. The strategy consisted of three main pillars: first, mobilisation of support for his bid; second, enhancing name recognition for his organisational vehicle; and third, finding a niche in the political spectrum that he could use to distinguish himself from other candidates.

Finding the right vehicle

Prabowo's first step was to assume control over one of Indonesia's biggest mass organisations, the national farmers association HKTI (Himpunan Kerukunan Tani Indonesia). Created during the New Order as a corporatist tool for Suharto to monitor Indonesia's millions of peasants, this organisation had descended into political oblivion after 1998, but its vague affiliation with the rural masses made it an ideal vehicle for Prabowo because it provided him with an opportunity to begin his image-building campaign by presenting himself as a champion of the poor. In December 2004 he was elected HKTI chairman with 309 out of 325 votes – never mind that he was not even a member of the association at that time.

The HKTI position provided Prabowo with valuable access to an organisational base, but with a view to the 2009 elections he needed more than the chairmanship of a mass organisation. Indonesia's electoral rules dictate that only candidates who are nominated by political parties are allowed to contest a presidential election, so in order to avoid dependence on the goodwill of an already existing party, he decided to emulate what various other retired generals had done before him: he created a new party of his own. And so Gerindra (Movement for a Great Indonesia) was born, a party with a fierce-looking Garuda eagle on its logo (the Garuda is the centrepiece of Indonesia's national coat of arms). From the day of its formation in February 2008, Gerindra dedicated itself almost exclusively to promoting the presidential ambitions of Prabowo Subianto.

At first sight, Gerindra appeared to be not much different from the various other parties that had been established by retired generals in recent years. Just like Edi Sudradjat's PKPI, Hartono's PKPB and more recently Wiranto's Hanura, Gerindra too seemed to stand for little more than conservative nationalism imbued with a touch of New Order nostalgia. And yet, many observers were much more concerned about Gerindra than the other parties formed by retired officers.

A closer look at the composition of its leadership board and its advisory council reveals why. Formally led by a largely unknown forestry professor called Suhardi, Gerindra provides a political home for a number of controversial former generals who continue to be dogged by persistent allegations of gross human rights violations. Amongst the most prominent are Gleny Kairupan, a former intelligence officer with a dubious track record in East Timor, Muchdi Purwopranyoto, who despite his exoneration by a Jakarta court is widely believed to have masterminded the murder of human rights activist Munir in September 2004, and of course Prabowo himself, whose list of alleged crimes includes abduction, torture, and instigation of large-scale anti-Chinese riots. For this reason, Gerindra and Prabowo caused particular alarm among human rights advocates, many of whom protested openly against his presidential campaign this year.

In order to dispel this image, Prabowo pursued an ingenious plan. To the disbelief of those human rights activists who now opposed his candidature, Prabowo approached some of his former victims and persuaded them to join his party. Why exactly former student activists like Desmond Mahesa or Pius Lustrilanang, and Haryanto Taslam, a former leader of Megawati Soekarnoputri's PDI-P, all three of whom were kidnapped by Prabowo's troops in 1998, agreed to support the presidential ambitions of their former tormentor has been the subject of much speculation. Some observers have argued that they were simply bought off while others claim they may suffer from Stockholm syndrome (a psychological condition in which victims of abductions become emotionally attached to their hostage-taker). The three men themselves have rejected all such speculation and simply maintained that after Prabowo had apologised to them, it was time to move on.

An unprecedented media campaign

For Prabowo, people like Haryanto, Desmond and Pius represented important human capital that could be used in his bid for the presidency. But the real weapon in Prabowo Subianto's struggle to polish his image was an unprecedented media offensive which in mid-2008 ushered in the second phase of his presidential campaign. While other parties were still in the planning stage, Prabowo began to inundate the Indonesian public with an unparalleled bombardment of political advertisements.

Buoyed by a self-confidence bordering on hubris, Prabowo used these advertisements to liken himself to an array of past and present statesmen, ranging from Napoleon and Sukarno to Barack Obama. All television advertisements featured the majestic Garuda eagle and consistently highlighted the alleged failure of post- Suharto administrations to realise Indonesia's huge economic potential. To fund this media onslaught, the soldier-cum- businessman-cum-politician had to dig deep into his pockets (and those of his brother Hashim). According to a Gerindra official, the media campaign alone cost about US$100 million, leaving plenty of room for speculation about just how much more was spent on other campaign activities.

Throughout his media offensive, Prabowo portrayed himself as the only presidential contender capable of liberating Indonesia from the yoke of rural poverty, unemployment and foreign debt. So far, so predictable. What very few observers had predicted, however, was the solution Prabowo proposed for the country's alleged malaise. Driven by the need to distinguish himself from his rivals, the man who owed his fortune largely to strategic maneuvers on global financial markets and to his connections to some of Indonesia's most powerful elite families campaigned on a quasi-socialist platform, criticising the government's privatisation agenda and proposing revisions of existing contracts with foreign companies such as Freeport and Exxon. Given Prabowo's background, this may sound cynical, but the anti- neoliberal' label helped him to stand out from his rivals. And in view of the electoral success of other big-spending leftist populists like Hugo Chavez or perhaps Thaksin Shinawatra the strategy made sense, especially in times of a global financial crisis.

Was it all in vain?

So why did it not work? Even though Prabowo had implemented his campaign strategy meticulously from the start, Gerindra got less than five per cent of the vote (Wiranto's Hanura party fared even worse, achieving only about three per cent). A number of reasons probably account for this poor result, including persistent discomfort amongst many Indonesians about Prabowo's hardline image and his human rights record, as well as widespread apprehension about his links to the Suharto family. Taken together, these factors apparently provided a substantial deterrent for many voters. Arguably the most important reason, however, is that despite the global financial crisis the overall socio-economic conditions in Indonesia were simply not ripe for the emergence of a populist saviour.

Thanks largely to the government's three-phase 'direct cash assistance' (BLT) program, many poorer Indonesians appear to be quite satisfied with President Susilo Bambang Yudhoyono's performance. Significantly, the third phase of the BLT program was implemented in late March 2009, which meant that merely two weeks before the election more than 18 million poor families received yet another government-sponsored cash injection of Rp 100,000 per month, to be distributed over a period of two months. In view of these measures taken by the incumbent president, it is hardly surprising that few of the millions of farmers and fisherfolk targeted by Prabowo saw a need for a radical overhaul of the economic system. Moreover, even those who may actually have seen this need were apparently reluctant to believe that the person to implement it would be, of all people, Prabowo Subianto, who, to put it lightly, is hardly famous for his philanthropy.

Another important reason for Prabowo's failure to push Gerindra to a better result was that his campaign was essentially regressive. Despite the professional outlook of the advertisements, Gerindra appeared to be preoccupied primarily with romanticising the past rather than outlining the future. This nostalgia was epitomised in a statement by Gerindra's deputy chairman Fadli Zon who maintained that Gerindra 'would like to rebuild Indonesia just like how it was in the past when people gained prosperity from agriculture and fishing'. Clearly, the election result showed that very few Indonesians share this desire to go back in time. Thus, it could be argued that Prabowo may have revolutionised the style of political advertising in Indonesia, but he failed to match his impressive style with a convincing message.

So Prabowo will not become Indonesia's next president, and neither will Wiranto. Does that mean that at long last there really is no place for these two in Indonesia's democracy? Not quite. Despite the clear verdict at the ballot box and poor approval ratings in most opinion polls, both Prabowo and Wiranto are running as vice-presidential candidates for Megawati and Jusuf Kalla respectively. This may look like a consolation prize only, but it will ensure that the two will continue to have a place in the system for years to come. And don't be surprised if they run for president again in 2014.

[Dirk Tomsa (Dirk.Tomsa@utas.edu.au) is a lecturer in Asian Studies at the University of Tasmania.]

Indonesian democracy focused on more stability

Associated Press - July 6, 2009

Anthony Deutsch, Jakarta – Just over a decade ago, mobs torched buildings across Indonesia's capital in an uprising that toppled a 32-year military dictatorship.

Today the world's fourth largest country, with its fragile democracy, is relatively peaceful as it heads toward Wednesday's presidential elections. The economy is bucking a global downturn, and Indonesian soldiers are posted as overseas peacekeepers instead of battling separatists at home.

The newfound stability – in a nation that previously saw three presidents in four years, a devastating financial meltdown and a string of terrorist bombings by Islamic militants – is the main reason voters are expected to return President Susilo Bambang Yudhoyono to office for a second five-year term.

"They have done a great job so far," said Henry Silalahi, a 38- year-old insurance company accountant, referring to Yudhoyono and his party. "But it is not enough."

Indonesians will be looking to Yudhoyono to make greater strides against deep-rooted corruption and widespread poverty – major challenges facing the predominantly Muslim country of 235 million.

"Indonesia has been very, very successful," said Sunny Tanuwidjaja, a specialist in politics and social change at the independent Center for Strategic and International Studies in Jakarta. "But major hurdles for real democracy are still coming, and everything is possible."

The election is a three-way race between Yudhoyono, a 63-year-old former general; Megawati Sukarnoputri, who ruled for three years from 2001-2004 and whose father was Indonesia's first president; and Vice President Jusuf Kalla, the frontman of ex-dictator Suharto's former political machine, Golkar, who has paired up with retired Gen Wiranto. Wiranto was indicted by the UN for rights abuses in East Timor.

Polls indicate that Yudhoyono, who rose through the ranks during Suharto's brutal reign and has ruled for five years with the help of fundamentalist Muslim parties, has a comfortable lead and possibly enough to avoid a run-off on September 8.

Since the fall of Suharto in 1998, Indonesians have grappled with their Islamic identity, searching for a balance between religion – 90 percent say they are Muslims – and their secular government.

Unlike the previous election in 2004, when Indonesians were shaken by al-Qaida funded suicide attacks that killed 240 people, most of them foreigners on Bali, the threat of terrorism has barely been an issue.

Yudhoyono, Indonesia's first democratically elected leader, has won praise for a US-backed security crackdown on the Southeast Asian Jemaah Islamiyah network, and it has been more than three years since a major attack.

Campaigns briefly touched on Islamic identity, but media attention focused on whose wife wears a headscarf – the president's and his running mate's do not, while some of his opponents' do – but stayed clear of sensitive faith issues.

More attention has been paid to how the candidates will maintain stability.

Facing total collapse just a decade ago, Indonesia is now Southeast Asia's largest and one of its healthiest economies. Reforms and tight monetary policy have produced steady growth now at around 4 percent. A peace deal ended decades of civil war in Aceh province.

But Indonesia has struggled to attract badly needed foreign investment, due to its weak legal system and concerns about corruption. The country where President Barack Obama spent four years as a schoolboy regularly tops the list of the most corrupt nations.

The Corruption Eradication Commission, seen as a key gauge of the president's success, has convicted scores of lawmakers and entrepreneurs, including the father-in-law of Yudhoyono's son – a governor who received a four-and-a-half year prison term last month.

An immediate task for the next president, who will be inaugurated in October, will be determining the commission's future.

Free Indonesia may help Yudhoyono win poll

Bloomberg - July 6, 2009

Daniel Ten Kate and Arijit Ghosh – Indonesia's President Susilo Bambang Yudhoyono is projected to win a second five-year term with an enhanced majority after the resources-rich nation of 248 million avoided the worst of the global financial crisis.

Polls indicate the 59-year-old former general will win an overall majority July 8, averting a second round of voting that investors say might stall a stock-market rally and weaken the rupiah, Asia's best-performing currency this year.

Political continuity is key to enticing the investment Indonesia needs to match economic expansion in India and China, the world's fastest-growing major economies, Morgan Stanley said in a note last month. In his first term, Yudhoyono delivered the fastest growth in a decade by fighting corruption, cutting debt and reducing regulatory hurdles.

"People always ask themselves how they feel today when they head to the polls," said Anies Baswedan, rector of Paramadina University in Jakarta, who moderated the first of three presidential debates last month. "There is a growing feeling that the economy is really doing well, especially relative to other countries in the region."

Indonesia's $433 billion economy has skirted recession unlike many Asian neighbors that rely more on exports. Gross domestic product expanded 4.4 percent in the first quarter from a year earlier, compared with a 6.2 percent contraction for Malaysia and Thailand's 7.1 percent slump.

Yudhoyono's pledges

Yudhoyono in a campaign rally on July 4 pledged to boost economic growth to 7 percent, reduce poverty level to 8 percent of the country's population from 14.2 percent and reduce unemployment to 5 percent.

He is running against predecessor Megawati Soekarnoputri and Vice President Jusuf Kalla, 67. Yudhoyono was favored by 63 percent of those responding in a poll conducted June 30 to July 2 by the Indonesian Survey Institute. Megawati trailed with 20 percent in the survey, which interviewed 3,034 people and had a margin of error of 2.8 percentage points.

Both challengers say Yudhoyono's policies favor foreign investors and big business at the expense of poor farmers.

Megawati has pledged to create 12 million agricultural jobs, delay overseas debt payments and "save the nation's wealth" by reviewing government contracts.

Kalla, Megawati

Kalla heads Golkar, the party former dictator Suharto used to stay in power for 32 years until his ouster in 1998. Kalla helped draft Yudhoyono's economic policies and brokered a peace accord with rebels in Aceh to end a 30-year insurgency. He has vowed to protect small retailers against expanding hypermarkets, and says he'll cut fuel, food and electricity subsidies and use the savings to fund infrastructure projects.

In 2004, Yudhoyono required a run-off to defeat 62-year-old Megawati, becoming the first directly elected leader.

His Democrat party became parliament's biggest by winning 26 percent of seats in April's legislative elections. Support from groups unconnected to Kalla or Megawati may give him control of parliament, strengthening his hand in a nation where power is decentralized right down to the district level.

Yudhoyono's "got the best hand he could be dealt given the circumstances," said Robert Broadfoot, managing director of Hong Kong-based Political & Economic Risk Consultancy Ltd. "There are so many power centers that he's going to have his work cut out for him."

The president has also reduced terrorism in Indonesia, the site of at least 14 attacks between 1999 and 2005. Secretary of State Hillary Clinton said in April that the majority Muslim nation is an "anchor country" in rebuilding US ties with the Islamic world.

Incomes double

Per capita income doubled in Yudhoyono's first term to $2,237 last year, according to the International Monetary Fund. Cash handouts to 18.5 million households helped sustain his approval rating above 60 percent even as he cut fuel subsidies that strained government finances.

The budget deficit will be about 2.5 percent of GDP this year, Finance Minister Sri Mulyani Indrawati said on June 30, compared with 7.6 percent in Malaysia. Yudhoyono has reduced the debt-to- GDP ratio to an estimated 33 percent from 57 percent in 2004, according to the Finance Ministry.

Yudhoyono has pledged to double spending on roads, ports and bridges in the next five years to $140 billion. The country's 17,500 islands span an area wider than the continental US, creating transport bottlenecks that have restrained growth.

Investment boost

Last year, foreign investment in Indonesia rose at the fastest pace in the region to $8.3 billion, almost double the amount attracted in the entire decade before Yudhoyono took over.

Still, Indonesia's unemployment rate of 8.4 percent is the highest in Asia. About 32 million people live on less than 70 cents a day, according to the government. The nation's ranking in Transparency International's corruption-perception index remains lower than Nigeria and Costa Rica.

With natural resources like palm oil, coal and nickel, Indonesia benefited from a China-driven commodities boom since the last election that made the benchmark Jakarta Composite index the third-best performer in Asia after Shanghai and Mumbai.

Mining and energy stocks including PT Perusahaan Gas Negara and PT Timah led the gains. Indonesia is the world's largest palm oil producer and the biggest exporter of power-station coal.

"The market doesn't really need a whole lot, it just needs to become bigger," said Uwe Parpart, Asia strategist at Cantor Fitzgerald in Hong Kong. "In relative value terms, Indonesia would have my vote."

Campaign quiets down in Indonesia ahead of elections

New York Times - July 5, 2009

Norimitsu Onishi, Jakarta – The five men and one woman vying to become president or vice president in Indonesia's election on Wednesday are familiar faces. All but one made their names during Suharto's 32-year military rule, which ended more than a decade ago. Half of them, tellingly, are retired generals.

But after crisscrossing this archipelago for three weeks, the candidates wound up their campaigns over the weekend promising to shepherd the country into a new era. The election, only the second time Indonesians will directly choose their president, will take place after a three-day cooling-off period during which campaigning is banned.

Leading in the polls, President Susilo Bambang Yudhoyono played to his strengths by emphasizing the economic policies of his first term and the comforts of continuity.

"God willing, in the next five years, the world will say, 'Indonesia is something; Indonesia is rising,'" he said at a large rally on Saturday that paralyzed swaths of Jakarta, a testament both to his popularity and to this city's decaying infrastructure.

Emboldened by his Democratic Party's victory in April's parliamentary election, Mr. Yudhoyono has exhorted voters to give him a clear majority to avoid a runoff in September. His rivals, former President Megawati Sukarnoputri and Jusuf Kalla, the current vice president, have already started talking darkly about rigged balloting, though without offering any evidence.

A smooth election on Wednesday would cap a successful turnaround for a country that earlier this decade was reeling from anti- Western terrorism, breakaway regions and Islamic extremism. Today, Indonesia – with the world's largest number of Muslims and its fourth-biggest population – is a stable democracy with an economy that has continued to grow solidly despite the global downturn.

Mr. Yudhoyono, 59, has gotten much of the credit. A stronger mandate, experts say, should allow him to push through more of the reforms needed to extract Indonesia from its history of kleptocratic rule.

A retired general from the Suharto era who is viewed as ethical, Mr. Yudhoyono had to form a coalition government in his first term with several other parties. His main coalition partner, Golkar, Suharto's party, chose as vice president Mr. Kalla, a businessman whose family business thrived during the Suharto years. Golkar officials are believed to have reined in some of the president's economic reforms and his popular anticorruption drive.

After his party's strong showing in April, however, Mr. Yudhoyono's party and Golkar ended their partnership. The president chose as his new vice-presidential running mate a respected, Wharton- educated central banker, Boediono, 66, who is not affiliated with any party and is the least known of the six candidates.

The campaign, including televised debates, barely addressed policy differences. The candidates said little beyond generalities at campaign events that were dominated by music and dancing, and often attended by paid supporters.

Mr. Kalla, 67, though the No. 2 in the current administration and not known for reformist credentials, tried to take credit for the successes of the past five years.

"I'm standing here to lead this country, to go 'faster, better,'" Mr. Kalla said at a rally in eastern Jakarta last Thursday, repeating his campaign's motto, which tried to capitalize on Mr. Yudhoyono's reputation for being indecisive and too cautious.

Mr. Kalla's running mate, Wiranto, 62, is a retired general who rose to prominence after serving as Suharto's personal aide. The United Nations accused him of human rights violations after his troops committed widespread abuses in East Timor in 1999.

The third retired general running in the election, Prabowo, 58, is Mrs. Megawati's vice-presidential running mate. Once married to one of Suharto's daughters, Prabowo was also implicated in several human rights violations in his capacity as a former commander of the special forces.

The presence of two retired generals with troubled pasts did not emerge as a campaign issue, a sign that there has been no full reckoning yet of the Suharto era.

The political marriage between Mr. Prabowo and Mrs. Megawati – leader of the opposition during Suharto's last years and the daughter of independent Indonesia's first president, Sukarno, who was ousted from power by Suharto – surprised few in Indonesia, where politics has traditionally been a fight for spoils.

During the campaign, Mrs. Megawati, who served as president between 2001 and 2004, often appeared aloof, preferring to cede the spotlight to Mr. Prabowo. Despite his vast wealth – Mr. Prabowo is the wealthiest candidate, with declared assets totaling more than $160 million – he has run on a populist message. He talked about empowering state-owned enterprises and renegotiating contracts with foreign companies operating here in the resources industry.

"We don't want to be a nation of errand boys," he said at a rally last week.

[Muktita Suhartono contributed reporting.]

Police terror

Jakarta Post Editorial - July 1, 2009

The arrest of three terror suspects came just days ahead of the Indonesian Police's 63rd anniversary, which is celebrated nationwide today. But, despite the movement for the reform of the police department, there is still a general feeling of uneasiness and even terror among Indonesians when police officers are near. This fear remains despite the hard work of the police force to improve their image.

The recent string of arrests seems to be history repeating itself. Just before their 62nd anniversary, Polri arrested nine terror suspects with connections to fugitive Jamaah Islamiyah figures Noordin Moh Top and Mas Slamet Kastari, in Palembang, South Sumatra.

The police also had a victory in the war against drugs last month, with a raid on an ecstasy plant in Taman Sari, West Jakarta. The plant, with a reported multibillion rupiah monthly turnover, is known to be a major supplier for customers in Eastern Indonesia.

These are indeed significant achievements of the police force this year. But what is the overall picture of the force?

Perhaps the 2009 report by Amnesty International can answer the question. The London-based rights group said that it had observed a pattern of police abuse towards certain sectors of the Indonesian population.

"Criminal suspects living in poor and marginalized communities suffer disproportionately from a range of human rights violations including excessive use of force leading in some cases to fatal shootings; torture and cruel, inhuman or degrading treatment (and other ill-treatment) during arrest, interrogation and detention; and inadequate access to medical care while in police custody," it said.

Meanwhile, in its 2009 report, the New York-based Human Rights Watch (HRW) specifically detailed that security forces, including the police's special Mobile Brigade (Brimob) units, continue to abuse people in Papua's remote highland regions with virtual impunity.

The police booked a net deficiency in enforcing the law this year, as they failed to significantly progress in their investigation into the 2004 murder of rights activist Munir.

Last year, when current Police chief Gen. Bambang Hendarso Danuri was chief of detectives, he had the courage to arrest and name former deputy chief of the State Intelligence Agency, Maj. Gen. (ret) Muchdi Purwopranjono, as a suspect in the case, after nearly four years of investigation including in-court witness testimony from defendants Pollycarpus Budihari Priyanto, a former Garuda Indonesia pilot, and former Garuda president Indra Setiawan. Muchdi however, walked free in December last year, after judges at the South Jakarta District Court acquitted him from all charges due to a lack of evidence.

Meanwhile, a survey by Transparency International Indonesia (TII) published early this year shows the business community sees the police as the most bribe-riddled institution in the country.

Those are just a few shortcomings of the police force. We should expect a lot more from police than making the occasional high- profile arrest of a terror suspect or leading a drug raid.

Excellence can only be obtained through continuous improvement. The police motto Polisi adalah pengayom masyarakat (The police are the guardian of the people) should be more than just words.

Happy 63rd anniversary, Indonesian Police.