S.K. Zainuddin – Plantation king Eka Tjipta Widjaja, the patriarch of the Sinar Mas Group, has replaced Budi Hartono as the richest man in the country, according to Globe Asia's 2011 150 Richest Indonesians list.

The 88-year-old tycoon is worth $12 billion, tripling his fortune from $4 billion last year, while Budi Hartono of clove cigarette-giant Djarum was pushed to second place with a net worth of $11.5 billion. Eka Tjipta claimed the No. 1 spot this year primarily because of Sinar Mas's massive expansion in palm oil.

Globe Asia, in it's latest edition to come out this week, estimates that the company has over one million hectares of palm oil estates either under production or in early stages of preparation. These alone are worth $8 billion. When Eka's property assets, banking, pulp and paper and coal mining operations are factored in, his total net worth has increased by a staggering $8 billion.

Indonesia's rich natural resources and fast growing consumer market have been the backbone of one of the sharpest spikes in the net worth of Indonesia's super rich since the magazine started compiling the rich list in 2007.

In the past year, record-high global commodity prices have translated into record earnings for those tycoons who have coal mines and vast palm oil plantations. Just about any businessperson of stature these days is eyeing a coal mine if they do not have one already, or are looking to expand production. Of the 21 billionaires on this year's list, nine have built their fortunes through ownership of coal mines.

Between June 2010 and June 2011, the total net worth of Indonesia's top 150 tycoons rose by nearly 75 percent to $107.9 billion. In addition, of the 20 richest Indonesians, 14 have made their money from coal mining or palm oil plantations, or both.

And with the Jakarta Composite Index rising 39 percent over the past 12 months, many owners of businesses listed on the Indonesia Stock Exchange (IDX) saw their net worth soar together with share prices of their companies.

Two of the new entrants to this year's list, Samin Tan, who owns Borneo Lumbung Energi and Metal, and Agus Lasmono, majority shareholder of Indika Energy, both rose to fame and fortune by acquiring coal mines. This trend applies to many other rich-listers, who have used the new global and domestic environment to dramatically increase their wealth.

"Indonesia's wealth is directly tied into commodities and the rise in commodity prices in the past year, driven by money printing and growing demand from emerging markets, particularly China and India, has seen a material improvement in Indonesia's overall wealth," said Nick Cashmore, head of securities at broker CLSA Indonesia.

With an economy growing at a robust 6 percent, Indonesia's domestic sector has also proven favorable for entrepreneurs such as Anthony Salim of the Salim Group and William Katuari of the Wings Group, who are going head-to- head in wooing consumers with their food and household goods product lines.

Media has forgotten me, says Mega

Jakarta Post - May 31, 2011

Erwida Maulia, Jakarta – Former president Megawati Soekarnoputri on Tuesday expressed her disappointment at the Indonesian media for apparently neglecting to report on her role in the reform movement.

Megawati said media hardly mentioned her in reports of commemorations of the 13th year of the reform movement held earlier this month.

"Who was it again who attended the Ciganjur meeting? Whose pictures did they take? The media shouldn't favor some and forget others," Megawati said while addressing a seminar on energy at the House of Representatives in Jakarta on Tuesday.

Megawati, the chairwoman of opposition party the Indonesian Democratic Party of Struggle (PDI-P), was referring to a famous meeting of four "reform figures" comprising herself, former president Abdurrahman "Gus Dur" Wahid, former People's Consultative Assembly speaker Amien Rais and Yogyakarta Governor Sultan Hamengkubowono X, at the residence of the late Gus Dur, in Ciganjur, South Jakarta.

The meeting was also deemed an important milestone in the reform movements that ended the 32-year authoritarian rule of former president Soeharto in 1998.

Facebook has lots of users in Indonesia, just not a lot of usage

Jakarta Globe - May 28, 2011

Indonesia's claim to having the second-largest number of Facebook users in the world – 30 million accounts as of this year – may not be all it's cracked up to be.

According to a new study by global market research firm TNS, only 14 percent of Indonesian users access Facebook every day. Compared with an average global figure of 46 percent, Indonesian Facebookers are falling short.

James Fergusson, director of global technology at TNS, said the lower access figures were most likely caused by the fact that many Indonesians depended on Internet cafes and old-model smartphones to get online.

"Discomfort with Internet cafes or first-generation smartphones forces consumers to compromise and decrease the frequency they access social networks," Fergusson said at the TNS Digital Nation 2011 seminar in Jakarta on Thursday.

He added, however, that Facebook activity was bound to increase soon as more Chinese smartphones entered the market. "Chinese smartphones are very user friendly, they use the Android system and they are sold at a relatively low price," he said.

He also predicted increasing Facebook access would provide new opportunities for Indonesian businesses and entrepreneurs to market their products and improve services.

The research firm estimated that more than 60 percent of users would eventually use the social networking site to post information about products.

Meanwhile, TNS had some comforting news for all those concerned that the tolerance and mutual respect taught by the state ideology, Pancasila, were being lost. Young Indonesians were found to be more open to mixing with people from other religions compared to their counterparts in other Asia- Pacific countries.

In a study that looked at the influence of the Internet on the behavior of young people, TNS found that 58 percent of Indonesian youngsters said they had close friends from a different religion. This compared to only 32 percent of young people in Asia Pacific who were friends with people with different beliefs.

The study noted that the result did not mean Indonesian teenagers were neglecting religion in their daily lives. The research firm found that 95 percent of young Indonesians consider religion as the most important aspect of their lives.

"Religion plays a very important role in young Indonesians' lives, but at the same time they are more open to accept differences compared with similarly aged young people in other Asia-Pacific countries," said Riko Rahman, from TNS Indonesia.

Young Indonesians were also found to place great value on education for improving their future. Despite this, however, more than 30 percent of young people said they were not able to continue their studies after middle school because of money problems.

Irene Ariyani, a senior client adviser at TNS Indonesia, recommended that banks be more active in offering loans to cover education needs. "Loans for education are important to create achievable higher education, so young Indonesians can realize their potential," she said.

Erotic pictures on trucks to be removed

Jakarta Post - May 28, 2011

Sidoarjo – The Sidoarjo Transportation Agency in East Java has ordered truck owners to remove all erotic paintings and provocative slogans from their vehicles because they are considered traffic safety hazards.

Agency head Mohammad Husni Thamrin said removing the erotic pictures and written sexual inferences was not only related to ethics, but also because the concentration of an increasing number of drivers of other vehicles was disturbed by pictures and innuendos painted on the backsides of trucks.

"If the truck owners do not remove the pictures, licenses for the road worthiness of their vehicles will not be issued," he said Friday.

Minaret cellphone towers prove 'win-win prospect'

Jakarta Globe - May 25, 2011

Dwi Lusiana, Malang, East Java – The 40-meter minaret outside Sabilillah Mosque looks like any other in this Muslim heartland.

But the carefully camouflaged electronic equipment near the top gives it away: This minaret doubles as a base transceiver station for a cellphone operator.

Ahmad Farhan, secretary of the mosque's committee, says the only electronic equipment the minaret used to have since it was built in the 1980s was loudspeakers for the call to prayer and making other announcements.

But in 2006, the committee was approached by Hutchison CP Telekom, which runs cellphone operator Three, with an offer to rent the minaret so BTS equipment could be mounted on it.

"They rented it for 10 years at a total cost of Rp 240 million [$28,000]," Farhan says. "It wasn't easy to accept the offer because there were a lot of factors that we had to consider, including whether the deal would comply with Shariah."

He says there were also the legal questions of whether such a move would violate zoning regulations. But the biggest problem by far, he says, was getting approval from residents in the surrounding areas.

"There was no way we could get 100 percent approval from everyone to allow the minaret to be used as a BTS tower," he says. "About 95 percent of people said they understood the plan and had no objections, but there was always going to be a small number opposed to it."

The plan eventually went ahead, but one of the conditions was that the BTS equipment be painted to blend in with the rest of the tower. With the money from the rent, the committee went on to build a community hall at the mosque grounds to host social and charitable events.

And now more telecommunications operators and mosques in Malang have been getting in on the act, spurred by the fast uptake of cellphones and the high cost of having to build a dedicated BTS tower.

Eko Wahyu Nurhidayat, the local field operations manager for XL Axiata, says erecting BTS towers takes up to nine months and requires building permits.

"There would also be a high capital cost to buy the materials and construct the tower, whereas if we rent out space on existing structures our only cost would be operational costs," he says.

Eko says that XL Axiata, which has long rented space on office buildings, in 2005 even offered Rp 400 million to fund the construction of two minarets and a second story at the Roisiyah Mosque in the city's east in return for being allowed to use one of the minarets as a BTS tower.

"Putting up a BTS is a service to users, but doing so while being able to help a mosque is even better," he says. "Renting out minarets to double as BTS towers is always a win-win prospect."

Abdullah Rozak, from Roisiyah's mosque committee, agrees that without the offer from XL Axiata, the mosque would have struggled to raise enough money for a minaret, let alone to build a second story.

He says the 11 committee members, when voting for the plan, were adamant that it should not disrupt prayer services or other activities at the mosque. Abdullah says another operator has already put in an offer to rent the second minaret.

"We're still considering that deal, particularly the rental price," he says. "We're not doing any more construction work, so we can afford to lower our price from the first time around."

Tri Wedyani, head of Malang's Communications and Information Technology Office, says the practice of using existing structures for BTS equipment is regulated under a 2008 bylaw.

"It's perfectly legal as long as the BTS operators have a clear contract with the owners of the existing towers," he says. "If they opt to build their own towers, they're restricted by the zoning bylaw to certain parts of the city."

The practice has also been embraced by the local branch of Nahdlatul Ulama, the country's biggest Islamic organization.

Abdul Mudjib Syadzili, the branch's secretary, says that ever since state- owned Telkomsel, the country's largest cellphone operator, rented out minarets at 40 of the city's mosques to host its BTS equipment, more and more mosque committees were keen to take up the offer. The NU alone has 1,987 mosques in Malang.

"The committees keep asking about the Shariah aspect of renting out space for BTS equipment," Abdul says. The short answer, he says, is that there's no problem.

Court awards Tommy $1.5 million damages for 'convict' article

Jakarta Globe - May 24, 2011

Heru Andriyanto – An Indonesian court has awarded Hutomo "Tommy" Mandala Putra more than Rp 12.5 billion ($1.5 million) in damages after a magazine described the youngest son of former Indonesian dictator Suharto as a "convicted murderer."'

Presiding Judge Tahsin, sitting in the South Jakarta Court, said the article published in Garuda Indonesia, the national carrier's in-flight magazine published by Indo Multi Media, had "ruined the reputation of Hutomo Mandala Putra as a national and international businessman."

Tahsin ruled that six people named in the lawsuit must pay the businessman, a former convict jailed for ordering the assassination of a Supreme Court justice who found him guilty of corruption, Rp 13.75 million in material damages and Rp 12.5 billion in immaterial damages.

He also ruled that Garuda must also publish a full-page apology in the next three editions of their in-flight magazine, though demands that the apology be printed in three national newspapers were not upheld. "It's not relevant," Tahsin said.

Tommy's lawyer, Ferry Firman Nurwahyu, said both himself and his client were satisfied with the verdict, even though they had been seeking Rp 25 billion.

"We are satisfied. This is a hard blow for them. We won't appeal the verdict. We're happy even though the amount is only this much. What's important is the legal fact was proven, that they damaged my client's good reputation," Ferry said.

Garuda's lawyer Erry Hertiawan said the judge overlooked one important fact. "The judge did not consider the fact that the article's translator, Ted Thornton, had confessed that he was the one who added 'convicted murderer' in the footnote. The footnote was not included in the original draft, Ted added it himself," Erry said.

Aceh

Anti-mining demonstrators vandalize Aceh governor office

Antara News - May 31, 2011

Over 100 demonstrators protesting the issuance of mining permits vandalized the gate of the Aceh governor's office on Monday after they were banned from staging a rally inside the building's compound.

The protestors, mostly members of environmental organizations, rallied to urge the governor to revoke 120 mining permits and to close mining areas in the province.

"The presence of mining companies in Aceh has caused misery to the local people instead of improving their welfare," rally coordinator Robi said in his oration. "As a matter of fact, many of them contributed nothing to the region."

Moreover, he said, issuing the mining permits would create conflicts within the community.

The demonstrators forced themselves past a number of security guards and into the compound of the governor's office after they had earlier been denied entry. They later went to the terrace of the governor's office where they held an oration and unfurled a banner demanding the closure of the mining areas.

The group of protestors later clashed with police as they forced themselves into the governor's office. The confrontation did not last long after both demonstrators and police officers calmed down their more agitated colleagues involved in the clash.

Indonesian rights group says caning unconstitutional

Agence France Presse - May 27, 2011

An Indonesian human rights group on Friday condemned the use of caning in staunchly Islamic Aceh province, saying the punishment violated the country's constitution.

The Commission for Missing Persons and Victims of Violence (Kontras) urged the government to repeal a bylaw used by the partially autonomous province to carry out the punishment under Muslim sharia law. Dozens of men have been publicly caned there for gambling this month.

Kontras said that caning should be barred by clauses in the country's constitution which grant citizens freedom from torture and from acts that detract from human dignity.

"The Indonesian government has to review the use of caning as punishment," deputy coordinator Indria Fernida said in a statement. "A slow response by the government will indicate that they neglect this matter and adhere to a kind of punishment that violates the constitution and human rights principles," she said.

On Thursday, 19 people were being lashed in public after being caught gambling. Twenty – one people were also lashed earlier this month for gambling, while the punishment is also used for offenses including adultery.

Sixteen people were reportedly caned in Aceh last year, according to rights group Amnesty International, which said last week that the punishment violated the UN Convention against Torture.

"It seems that Aceh's authorities are increasingly resorting to public caning in violation of international law," Amnesty's Asia – Pacific director Sam Zarifi said.

Aceh, on the northern tip of Sumatra island, adopted partial sharia law in 2001 as part of an autonomy package aimed at quelling separatist sentiment. Caning carried out there is mainly aimed at causing shame rather than injury.

Aceh poll date set, but worries grow over fair play

Jakarta Globe - May 28, 2011

Nurdin Hasan, Banda Aceh – Aceh has decided to hold its provincial, district and mayoral elections on Nov. 14, but the absence of supervisory bodies at each level is raising concerns of possible campaign and polling irregularities.

While the Aceh Independent Electoral Commission (KIP) agreed this month to the poll date, there has been no sign of movement to form election supervisory committees (Panwaslus) to oversee the three levels of elections.

"I am worried that the election stages organized by the KIP will not face any sort of supervision, which will only increase the potential for cheating," said Muhammad Jafar, a legal and political affairs staff member for the Aceh governor.

The law governing the Panwaslus is vague, saying the committees must be in place for an election but not clarifying at what stage in the process they should be ready by.

"It is true that legally there is nothing governing this, but logically, they are needed to supervise and prevent any irregularities in the field," Jafar said.

Jafar, who headed the KIP when the province successfully held simultaneous regional elections in 2006, said that with little supervision, any suspected electoral violations would not be investigated, resulting in nagging doubts about the legitimacy of the results.

"What is dangerous is when the cheating is systematic and massive because it could be the basis for the Constitutional Court to cancel or change the results of the regional elections in Aceh if anyone challenges them," he said.

His hope is that legislative councils at all levels of the province can quickly organize the selection of the five members to sit on their respective Panwaslus. Under the law, the names of the candidates are then sent to the national Elections Supervisory Board (Bawaslu) for approval.

Jafar said KIP would begin verifying candidates as soon as it began receiving names.

Mukhlis Mukhtar, a lawyer specializing in political law in Aceh, said the Panwaslus were necessary to provide oversight at every step of the elections.

"The experience is that regional elections in Aceh are always rough and full of intimidation," he said. "Even with a Panwaslu, a lot of terror and intimidation still takes place. What would happen if there were no Panwaslu?"

He called on the KIP to suspend the Nov. 14 election date and reassess only after all the supervisory committees across the province were in place.

Mukhlis a former Aceh provincial legislator, said that proceeding without the Panwaslus would expose the election results to legal challenges. He also said the unilateral action by the KIP to determine an election date without consulting the Aceh administration or the provincial legislature ran counter to the law.

Akmal Abzal, a member of the KIP, said the commission had been compelled to act by the General Elections Commission (KPU) in Jakarta, which had issued a statement on May 2 demanding that the KIP set a date. "The KIP could no longer wait, because time is now really pressing," Akmal said. He added that the local government could still pass legislation to modify the schedule for the elections.

19 people caned in Aceh over gambling

Jakarta Globe - May 27, 2011

Nurdin Hasan, Banda Aceh – Eighteen men and one woman were caned in the eastern Aceh town of Langsa on Thursday, less than a week after Amnesty International called for an end to the practice.

The caning took place in the town's Merdeka Park and was watched by more than a thousand onlookers.

Irvon, head of the general crimes unit at the Langsa Prosecutors' Office, said most of those caned had been convicted of gambling after being found selling coupons for togel, a type of illegal lottery.

"Most of them were dealers and only a few were players," he said. He added that each of them had received six strokes of the cane, including the woman.

Irvon said a 20th person arrested in the case, believed to be the ringleader of the lottery racket, had not been caned because he was not Muslim and would stand trial on criminal charges at the Langsa District Court.

The others had been tried at the Shariah court, which calls for punishments of between six and 12 lashes for gambling.

The caning came four days after human rights group Amnesty International urged the central government to repeal an Aceh bylaw that allows the form of corporal punishment for crimes deemed to be against Islamic law.

"It seems that Aceh's authorities are increasingly resorting to public caning in violation of international law," Sam Zarifi, Amnesty's Asia- Pacific director, said in a statement on Sunday.

"The Indonesian government must act to stop these punishments, which constitute cruel, inhuman or degrading treatment and often amount to torture."

Amnesty said caning violated the UN Convention Against Torture, which Indonesia ratified in 1998, and urged the government to review the bylaw to conform with international and national human rights laws and standards.

Prior to Thursday's caning, 21 men were subjected to the same punishment, also regarding togel, bringing the total this month to 40 people. Amnesty says a total of 16 people were caned in the province last year.

Banned sect 'worse than tsunami': Aceh official

Jakarta Globe - May 26, 2011

Nurdin Hasan, Banda Aceh – City officials said on Thursday that they would stick to their threat to name and shame members of a banned sect who had not yet repented before the deadline of Wednesday.

Illiza Sa'aduddin Djamal, deputy mayor of Banda Aceh, said his administration was still verifying information about the followers of the Millata Abraham sect before revealing their identities.

"Right now we're coordinating on the data with the city's Shariah enforcement agency and the city police," she said. "We'll start publishing their names in early June."

Illiza said official records showed there were around 100 followers of the sect in the city, although unofficial estimates put the number at closer to 200.

She added that no matter how insignificant their transgressions might seem, the impact was "worse than the tsunami" that killed more than 170,000 people in Aceh alone in December 2004. "When a Muslim leaves Islam, that's a major disaster," she said.

The city administration issued a decree on April 6 banning the sect. On May 10, it gave the followers an ultimatum to renounce their faith by May 25 or face having their identities published in the local media as part of a name-and-shame campaign.

Millata Abraham members do not recognize the Prophet Muhammad and only pray once a day at midnight, instead of five times a day as everyday Muslims are required. In April, more than a hundred members of the sect underwent a mass conversion to the mainstream faith.

Said Yulizal, head of the Shariah enforcement agency, said that since the ultimatum, only 20 of the followers had volunteered to renounce their faith. "We're giving them a final chance to report themselves to our office," he said.

He attributed the low turnout to the possibility that several of the followers may have already left Banda Aceh.

Aceh punisher unveils tricks of the cane trade

Jakarta Globe - May 26, 2011

Nurdin Hasan, Banda Aceh – M. is a member of the Wilayatul Hisbah, Aceh's Shariah Police, and he is proud of it. But the athletically built 33-year- old is no ordinary officer.

With a shy smile, he looked about awkwardly when he told the Jakarta Globe that aside from his wife, nobody in his family knew a thing about his actual job: he is one of the officers who cane people – old or young – for violating Shariah laws. M. is an algojo, a punisher.

Aceh adopted a form of Shariah law in 2001 as part of the regional autonomy offered to help quell separatist sentiment.

Amnesty International recently argued that caning violates the UN Convention against Torture, which Indonesia ratified in 1998, and urged Indonesia to bring Aceh's bylaws in line with international and national human rights laws and standards. The rights group urged Jakarta to repeal a bylaw used to openly cane at least 21 men for gambling this month.

But according to M. the Acehnese are required to abide by all local Shariah regulations. And violators, he believes, must be punished.

M. explained that his job entailed following strict procedures – for his own security. A dark-colored cloth, with holes for the eyes, covers his entire head. An eye mask is additionally tied around the head. Everything is deliberate, right down to the gloves on his hands – nobody should recognize him in any way, least of all the people who violated Shariah law and are to be caned.

M. told the Globe on Tuesday that he remembers the first time he walked on to a stage, with a rattan cane measuring up to a meter. He remembers the thousands who filled the compounds of the Bireuen Grand Mosque to witness the punishment.

"There was a prosecutor walking with me on each side. This was in June 2005. Thousands watched me. I was anxious. What if I conducted [the caning] wrongly? What if I violated the code? And then I though, what if, once I cane this gambler, he gets mad. And hits me back," M. said. "I prayed to Allah to give me strength and guidance."

M. beat the gambler without hesitation and made no mistakes. He said that everything went in accordance to the rules. He would then go on to conduct canings eight different time across the province.

"My parents do not know what I do. Only my wife does, and she is OK with this. I have never caned a woman, however. It is a bit tough, caning a woman because she is in a sitting position," said M., a father to a 2-year-old boy. "If you are not really skilled you could end up striking her head, which is against the rules."

Separately, another Shariah Police officer, identified as A., said that he had caned a woman. "I do not feel remorse for those being caned, because they are getting what they deserve in accordance to regulations in Aceh," he said.

M. insisted the Globe keep his identity secret, because he could still be instructed to carry out other canings in the future.

A graduate of the State Islamic Institute (IAIN) Ar-Raniry in Banda Aceh, M. joined the Wilayatul Hisbah in February 2004, six months after he completed his education. He worked on temporary contracts for two years and earned Rp 750,000 ($85) a month, plus an operational allowance of Rp 250,000. As a bachelor, this was enough.

Today, he makes nearly Rp 2 million as a Grade 3A civil servant. M.'s wife is also a civil servant. She graduated from the Syiah Kuala Unversity's School of Law and works at the Aceh provincial administration's Shariah Office.

"My main duty, on a day-to-day basis, is to interrogate those detained over Shariah violations. We also conduct raids at nights, particularly during weekends, at hotels and cafes," M. said.

Syarifuddin, a top commander of the Wilayatul Hisbah, said that officers like M. and A. were necessary to upholding Shariah law.

"Normally when we get hold of violators, we warn them, asking them not to repeat their mistake. We only enforce the law when someone has been arrested several times and cannot be convinced the nice way," Syarifuddin said. "Violations of Shariah law are a disease that needs to be eradicated from the lands of Aceh."

Human rights & democracy

Indonesia a model for human rights: Boediono

Jakarta Globe - May 25, 2011

Camelia Pasandaran – Senior government officials on Wednesday defended the country's human rights record against recent criticism about it gaining a seat on the United Nations Human Rights Council.

Speaking at a meeting on the Human Rights Action Plan for 2011-14, Vice President Boediono pointed out that 184 out of 191 countries voted on Friday for Indonesia to serve a three-year term. Indonesia has been granted a seat three times since the 47-nation body was founded in 2006.

"We should be proud that Indonesia is currently a model where human rights conditions are good," Boediono said. Justice and Human Rights Minister Patrialis Akbar also lauded the country's record. "Indonesia, compared to [others], is respected as a country where human rights are upheld."

Several local rights groups have questioned the country's eligibility for a seat on the council because of unresolved cases of rights violations during the fall of Suharto in 1998 and the ongoing surge in religious violence.

A recent report by the US government listed Indonesia as a having made significant strides in rights, but it also noted that the country was facing many problems, including political corruption, limits on freedom of expression, violence against minority groups and human trafficking.

The UN's high commissioner for human rights, Navanethem Pillay, also voiced concerns in a recent letter citing reports of violence against religious minorities, including the Ahmadiyah sect, Christian groups and even Buddhists. She has proposed a special rapporteur on human rights visit the country this year to investigate the reports.

But Patrialis said those reports did not properly reflect the country's rights record and dismissed them as "temporary" problems. "If it is only one or two cases, it is not a national problem," he said, adding that the authorities were working to resolve the conflicts.

However, the minister said the UN rapporteur would be welcome to visit the country any time.

Boediono said the country should remain realistic about the problems it faced. "The action plan should not be too ambitious, but concrete and able to be done within three or four years," he said.

China, Saudi Arabia and Angola also have seats. Libya was recently suspended from the body.

Politics & political parties

Scramble to 'fetch' missing politician

Jakarta Globe - May 30, 2011

Markus Junianto Sihaloho – Just days after officials said there was nothing wrong with controversial politician Muhammad Nazaruddin's trip to Singapore, the government and the Democratic Party are now organizing ways to bring him back.

Djoko Suyanto, the coordinating minister for political, legal and security affairs, said on Sunday that he had ordered the Corruption Eradication Commission (KPK) to cooperate with the National Police and the State Intelligence Agency (BIN) to immediately find Nazaruddin and bring him back to Indonesia.

"This is so Nazaruddin can immediately be presented, especially when the KPK needs his testimony," Djoko said, adding that Nazaruddin's safety needed to be guaranteed.

Nazaruddin is the politician at the center of one of the biggest graft scandals to face the ruling party since President Susilo Bambang Yudhoyono was re-elected.

It emerged on Thursday that he left for Singapore on May 23, hours before the Democrats fired him as their treasurer. It was also a day before a travel ban was requested by the KPK and subsequently issued in relation to an investigation into a Southeast Asian Games graft case.

The KPK immediately said Nazaruddin had the right to travel in the absence of a ban. Justice and Human Rights Minister Patrialis Akbar said it was too early to accuse him of fleeing, and Democrat officials said he had received permission to seek medical treatment in Singapore.

The Democrat lawmaker, who is also facing allegations he offered a "friendship gift" of 120,000 Singapore dollars ($97,000) to the Constitutional Court's secretary general, told the Jakarta Globe he was only in Singapore for a medical checkup and would return as soon as the results came in.

However, in a meeting on Saturday, the president requested the party find a way to bring Nazaruddin back to Indonesia. Yudhoyono wanted Nazaruddin to face any summons from the KPK, party spokeswoman Andi Nurpati said. "We hope a delegation to fetch Nazaruddin can be formed soon," she added.

Jafar Hafsah, the chairman of the Democratic faction in the House of Representatives, said efforts to convince Nazaruddin to return began a few days ago.

Through phone conversations, he said, Nazaruddin told them he was still in Singapore for a medical checkup and had not done anything from Singapore to harm the party's image, including spreading information on scandals allegedly involving Democrats.

Nazaruddin was referring to an SMS text message sent out in his name on Saturday that threatened to expose various scandals linked to the party.

"Of course we also urged him to return back to Indonesia to face any legal investigation," Jafar said. "We are now considering sending a special delegation to talk with him and bring him back here."

Singapore does not have an extradition treaty with Indonesia, but law enforcers were successful last year in convincing fugitive Gayus Tambunan to return home from the city-state.

Yudhoyono 'blunders' responding to SMS allegations: Analyst

Jakarta Globe - May 30, 2011

Arientha Primanita – President Susilo Bambang Yudhoyono should not have bothered to comment on a mystery text message containing allegations of corruption and inappropriate behavior, political analysts said on Monday.

Ibramsyah, from the University of Indonesia, said Yudhoyono should not have given the allegations legitimacy by acknowledging them.

"Yudhoyono should have just ignored it, as it was a slanderous text with no clear sender," Ibramsyah said. "People would be sure that it was fake, so no need to sweat about it," he told the Jakarta Globe.

He said Yudhoyono's forceful rebuttal of the allegations was a waste of time and energy and had become counterproductive. "He should be thinking about the people's welfare and the judicial mafia that the country needs to fight."

Ibramsyah said that as president, Yudhoyono should have been more relaxed in responding to the allegations and demonstrated a more commanding performance in front of the public.

Yunarto Widjaja, from Charta Politika, said Yudhoyono had overstepped by commenting on the text message. "This is a blunder for Yudhoyono as in my opinion this could amplify the issue itself," Yunarto said. "People will think this is an important issue..."

He also criticized Yudhoyono's communications team. "They should know what the real issues that need attention are," he said.

National Police, meanwhile, say they have formed a special team to trace the origins of the message. The message originated in Singapore though rogue Democratic Party legislator Mohammad Nazaruddin has denied he was behind the claims.

Will Nazaruddin scandal sink the Dems in 2014?

Jakarta Globe - May 30, 2011

Markus Junianto Sihaloho – The Democratic Party remains the most popular in the country, according to a new survey, but an analyst warns it still has to deal with the fallout from an ongoing corruption scandal.

The poll, released by the Indonesian Survey Institute (LSI) on Sunday, showed that 18.9 percent of respondents would vote for the Democrats if an election were held this month. However, LSI director Syaiful Mujani said this was down from the 20.85 percent it won in the general elections in April 2009.

By contrast, he said, the opposition Indonesian Democratic Party of Struggle (PDI-P) had improved in the same period from 14.15 percent to 16.7 percent, and would likely keep growing in popularity as the 2014 elections loomed.

Tommy Legowo, an analyst from the group Concerned Citizens for the Indonesian Legislature (Formappi), said that given their slender lead, the Democrats should be mindful of the impact to their image that the case of their former treasurer, Muhammad Nazaruddin, would have.

The party last Monday dismissed him as treasurer in a move widely seen as an attempt to contain the fallout from the litany of graft cases in which he has been implicated. But the day after, the lawmaker fired back, leveling accusations at a number of high-ranking Democrat officials.

When it was revealed last Thursday that Nazaruddin was in the fugitive haven of Singapore, Democrat officials were initially dismissive, saying he had been given permission to go and that he had the right to leave as a travel ban had not been imposed when he left.

But on Sunday, party officials also ordered the controversial politician to return from Singapore to face questioning by the Corruption Eradication Commission (KPK).

Tommy said that while the Democrats could fire Nazaruddin from the party outright, that would not be enough to halt the bad press. He warned that Nazaruddin was likely preparing a slew of allegations against other Democrats if he was left out to dry by the party.

"Nazaruddin might feel he's being backstabbed, because he did provide financial help to the party and some high-ranking party officials," Tommy said. "He might reveal more scandals, which wouldn't be good for the party."

On Saturday, cellphone text messages purporting to be from Nazaruddin were sent out to several journalists and politicians, which claimed Nazaruddin had been set up and would wreak vengeance from Singapore, including spilling the beans on scandals involving President Susilo Bambang Yudhoyono.

While Nazaruddin has denied sending the messages, Tommy said it highlighted the difficulty faced by the party and president in containing the controversy. "SBY must be firm in saying that this time he can't please all groups," he said. "Someone must be sacrificed to save the party's image."

Senior party members met on Saturday night at Yudhoyono's residence in Bogor to discuss the threatening text messages.

Andi Nurpati, the party's public communications head, denounced the allegations made in the messages as "lies" and "character assassination." One claim was that some party elites were implicated in a same-sex scandal, while another was that 19 million votes were manipulated in the 2009 elections. But she acknowledged that the party had been taken by surprise by the entire scandal.

[Additional reporting by Antara.]

Golkar blames ratings slide on Democrats, rethinks ties

Jakarta Globe - May 31, 2011

Anita Rachman – Allying itself with the ruling coalition seems to be hurting the Golkar Party more than it is benefiting it, party members and political observers say.

After a recent survey indicated that the party had fallen behind its two main rivals in the popularity stakes, Golkar officials pointed on Monday to its membership in the Democrat-led coalition as the cause of the decline and said they would re-evaluate the tie-up.

"[Being part of the] coalition is resulting in a decline in [Golkar's] popularity and it is the opposition party that is gaining votes," said Priyo Budi Santoso, Golkar's executive board chairman and a deputy speaker of the House of Representatives.

An Indonesian Survey Institute (LSI) study released on Sunday showed that 18.9 percent of respondents would vote for the Democrats if an election were held this month, down from the 20.85 percent it won in the general elections in April 2009.

The Indonesian Democratic Party of Struggle (PDI-P) came second with 16.7 percent, up from 14.15 percent during the polls. Golkar, which finished second in the 2009 elections, came third with 12.5 percent.

Priyo said it was curious to see the PDI-P seemingly benefiting from the Democratic Party's decline. "The PDI-P is the one getting the votes from the Democrats' decline," he said. "This is an interesting phenomenon. Why aren't they going to Golkar?"

"We will immediately discuss our future in the coalition with party chairman [Aburizal Bakrie]," he added.

Nurul Arifin, Golkar's deputy secretary general, said the party's membership in the coalition put it in a "difficult position." She cited the coalition's contract that required Golkar and other member parties to be unified on policies or issues – a move meant to curb dissent.

But even when Golkar broke ranks, Nurul said, her party was suspected of twisting the Democratic Party's arm for favors. "We get a bad image. In fact, we truly want to criticize [the coalition]," she said. "So, when we leave the group, we can be seen as purely critical of the government, without ulterior motives."

Nurul added that Golkar was considering a yearly evaluation of its membership in the alliance.

LSI researcher Burhanuddin Muhtadi agreed that Golkar was "trapped" in the six-party bloc, which he said was struggling with image problems.

"When the coalition does its job well, praise goes to the Democrats alone," Burhanuddin said. "But when it fails, the criticisms are not only directed at the ruling party but also at the members of the coalition, including Golkar."

The researcher said Golkar's seemingly ambivalent approach – where it insists on staying in the coalition while denouncing it at the same time – sent mixed signals to the public.

When the entire coalition's stance proves unpopular, he said, people usually turn to the "consistent opposition," the PDI-P.

But Burhanuddin said leaving the bloc would not halt Golkar's falling ratings. "It should find another way by strengthening its infrastructure and members at the lower levels. It should improve its performance," he said.

Burhanuddin said Golkar should not ride on the coalition's coattails, but should instead focus on internal reforms. Though this would be difficult, he said, this would certainly attract the support of more voters.

New blow for Democratic Party

Jakarta Globe - May 30, 2011

Camelia Pasandaran & Farouk Arnaz – Things are going from bad to worse for the beleaguered ruling party with the House of Representatives to seek an explanation from National Police as to why they halted an investigation into alleged electoral fraud involving Democratic Party spokeswoman Andi Nurpati.

Golkar Party legislator Aziz Syamsuddin, said House Commission III for law and legislation, of which he is a member, had scheduled a meeting with police on June 13 to seek an explanation as to why the case was never investigated.

Aziz said that though the case was before Gen. Timur Pradopo was appointed National Police chief, "we need to see why it happened." He said if it was discovered that police had intervened, the House, also known as the DPR, would establish a special committee to investigate the case.

On Monday, Constitutional Court Chief Mahfud M.D. said he secretly reported Andi, a former member of the General Election Commission (KPU), to then National Police Chief Gen. Bambang Hendarso Danuri in February 2011 amid allegations of fraud.

Claims were made that an official letter from the court relating to results of the 2009 legislative elections in South Sulawesi were altered. Andi was allegedly involved in the scandal but she has never faced charges.

Mahfud said it was the court's obligation to report the alleged crime. "Afterwards, it is the legal obligation of the National Police to investigate the case. Whether the police did so or not, it is no longer our business."

Mahfud said if the allegations were proven, the spokeswoman could face up to seven years in jail. He said the statute of limitations did not expire until 2022, "so we could still open the case."

But Insp. Gen. Mathius Salempang, the National Police's deputy chief of detectives, said on Monday that although they had received the complaint from the Constitutional Court, Andi's name had not been mentioned. He would not provide any other details.

Yudhoyono blasts social web sites, Blackberry over corruption allegations

Agence France Presse - May 30, 2011

Indonesian President Susilo Bambang Yudhoyono on Monday angrily denounced the media and users of social networking Web sites for spreading false allegations against his embattled party.

The ex-general lashed out at those spreading allegations of graft at the highest levels of the Democratic Party, which is reeling after former treasurer Mohammad Nazaruddin fled the country in the face of a corruption probe.

"Two days ago there was someone who slandered me from a dark place with a dark heart. This was outrageous slander including personal insults. I say openly they are irresponsible, ignoble and cowardly," he said.

"SMS, Twitter, Web sites, Blackberrys – all online media should be used to improve life and educate our nation. We should not use online media to spread lies and assassinate character or abuse anyone, not just me but those who have become victims of information technology."

He added that any allegations against him were "1000 percent untrue," without referring to any specific messages.

The Democrats are reeling after Nazaruddin fled to Singapore in a blaze of publicity last week. He was due to be questioned by anti-graft investigators over a $100,000 "gift" he made to a court official and suspicious contracts for the Southeast Asian Games, which Indonesia is hosting in November.

A widely circulated text message purportedly sent by Nazaruddin from Singapore on Saturday makes allegations against Yudhoyono, Democratic Party chairman Anas Urbaningrum and spokeswoman Andi Nurpati, among others.

Yudhoyono reportedly summoned the Democratic Party's leadership board for a meeting on Saturday to warn them of plots to destroy the party.

The normally taciturn leader has won two elections on promises to tackle corruption in one of the most corrupt countries in Asia, but his critics say he has failed to make any difference to the culture of graft and impunity. Until now the Democratic Party has generally managed to stay above the corruption scandals that are daily media fare in Indonesia.

Flunking in popularity, Golkar to re-evaluate its position in coalition

Jakarta Globe - May 30, 2011

Anita Rachman – With a recent survey indicating that Golkar Party's popularity has fallen below its two main rivals, a top Golkar politician said on Monday that the party might need to reconsider the benefits of being part of the ruling coalition.

"[Being part of the] coalition is resulting in a decline of [Golkar's] popularity, and it is the opposition party that is gaining votes," said Priyo Budi Santoso, who is also a deputy speaker of the House of Representatives. As such, he said, Golkar might need to rethink whether it should stay in the coalition.

The Indonesian Survey Institute (LSI) study, released on Sunday, showed that 18.9 percent of respondents would vote for the Democrats if an election were held this month, down from the 20.85 percent it won in the general elections in April 2009.

The Indonesian Democratic Party of Struggle (PDI-P) came second with 16.7 percent, up from 14.15 percent during the elections. Golkar, who went second during the 2009 national elections, came third with 12.5 percent.

Priyo said it was curious to see PDI-P seemingly benefiting from the Democratic Party's decline.

"The PDI-P is the one getting the votes from the Dems' decline. This is an interesting phenomenon. Why aren't they going to Golkar?" Priyo said. "We will immediately discuss with chairman [Aburizal Bakrie] regarding our future in the coalition," he said. "But for now we are still in the coalition."

Dems may have Rp 47 trillion in deposits

Jakarta Post - May 28, 2011

Great Indonesia Movement Party (Gerindra) advisory council member Permadi has alleged that the Democratic Party has kept Rp 47 trillion (US$5.5 billion) in bank deposits accumulated from donations given by party cadres and partners.

The sum of donations provided by party cadres is normally commensurate with their positions in the House of Representatives, while contributions from partners are usually in proportion with how far they want the party to serve their interests, Permadi said in a discussion held Saturday.

He said that the government should take action to prevent further negative prejudice against the party.

Democratic Party official Hinca Panjaitan denied Permadi's allegations. "It's not true. All donations to the party are made in a transparent mechanism," he said, as quoted by tempointeraktif.com.

He also said that the party has a very good budgeting system, adding that therefore, the accusations were without clear reason.

Dems house faction leader approved Nazaruddin's Singapore trip

Antara News - May 27, 2011

The Democratic Party's House of Representatives faction leader explained on Friday that the party gave embattled lawmaker Muhammad Nazaruddin permission to go to Singapore for medical purposes.

Jafar Hafsah said that Nazaruddin, the dismissed party treasurer, filed a formal letter to him on May 23 requesting leave for medical reasons. "So I approved it," Hafsah said. "A week before, Nazaruddin had already asked for a permission to me through text message and phone."

But various Democrat officials contacted on Thursday – House of Representatives Speaker Marzuki Alie among them – said they knew nothing of their former treasurer's whereabouts.

Nazaruddin told the Jakarta Globe late on Thursday that he was only in the city-state for a medical checkup and would return to face the KPK as soon as the results came in.

Nazaruddin was dismissed from his post on Monday amid allegations of involvement in three corruption scandals, including a high-profile case relating to the construction of the athletes' village for the Southeast Asian Games in Palembang, as well as claims that he offered a "friendship gift" of 120,000 Singapore dollars ($96,000) to the Constitutional Court secretary general.

PPP chair election heats up ahead of national congress

Jakarta Post - May 25, 2011

Jakarta – Ahead of the party's national congress in early July, competition is brewing at the United Development Party (PPP) as several members engage in a fierce battle to head the Islamic party.

Incumbent chairman Suryadharma Ali, who is also the religious affairs minister, is seeking a second term and has emerged as one of the strongest candidates.

His fiercest competition looks likely to come from legislator and veteran party executive Ahmad Muqowwam, who was recently transferred from the House of Representatives' Commission IV overseeing education where he served as commission chairman to Commission II overseeing housing and population, of which he is only a member.

Muqowwam's supporters claim the transfer was political maneuvering on Suryadharma's part to stifle support for Muqowwam's bid to be the party's next chairman.

"Suryadharma is scared. He's afraid of losing his post and he will do anything to hold on to it," party executive Yuyon Ali Fahmi, a close aide to Muqowwam, told The Jakarta Post.

Suryadharma's campaign team, however, denied the allegations, saying Muqowwam's transfer was part of a routine shake-up to improve the party's performance at the House. "The transfer is in no way linked to the race for party chairman," PPP deputy secretary-general M. Romahurmuziy told the Post.

Other party members have also voiced their intentions to join the race, including legislator Ahmad Yani from the House legal affairs commission and new party member Muchdi Purwopranjono, who previously served as deputy chairman of the Greater Indonesia Movement Party (Gerindra) until his move to the PPP in February this year.

Muchdi was elected to head the party's Papua provincial branch on May 18. The PPP national executive board decided on the same day, however, not to recognize Muchdi's victory and instead installed Bachtiar Ghaffar as the new head of the Papua branch.

As a result, Muchdi on Monday reported Suryadharma and three other members of the party's national executive board – Husnan Bey Fananie, Emron Pangkapie and Romahurmuzy – for defamation and improper conduct.

Lawyer Eggi Sudjana, who is close to Muchdi Purwopranjono, said he believed Bachtiar's appointment was also a move by Suryadharma to cut down competitors.

The PPP will hold its national congress earlier in 2011 to "better prepare" for the 2014 elections. The congress will likely be held in Bandung from July 3 to 7.

The party, whose popularity is plummeting, is trying to gain the support of smaller Islamic parties to gain Muslim voters. The Crescent Star Party (PBB) is rumored to have plans to join the PPP, the second-largest Islamic party after the Prosperous Justice Party (PKS), which is embroiled in a series of scandals and internal friction.

University of Indonesia political analyst Arbi Sanit said he believed there was a leadership crisis at the PPP. "There are not that many alternatives for a new chairman from within the party," he said.

Apart from party stalwarts, some outsiders are also being touted as possible candidates. Former Constitutional Court chief justice Jimly Asshidiqie, politician Yusril Ihza Mahendra, and former youth and sports minister Adhyaksa Dault have been linked to the race.

Arbi said Suryadharma and Muqowwam were the favorites. "The others' chances are pretty slim," he added. (mim)

Selling Suharto's New Order 'successes' misleading

Kompas - May 25, 2011

Jakarta – The tales of the New Order regime's success, which are being used as a selling point for the Golkar Party, are misleading. Golkar cannot just claim to be an important part of the New Order's successes, but must also concede that it is responsible for the bankruptcy of Indonesia and all of the crimes committed by the New Order regime.

Speaking in Jakarta on Monday May 23, the coordinator of the parliamentary watchdog Forum of Concerned Citizens for Indonesia's Parliament (Formappi), Sebastian Salang said, "The people cannot of course be blamed for missing the New Order era. People are making this assessment based on what is happening today so perhaps they say that Suharto is better than SBY (President Susilo Bambang Yudhoyono). But if this is being used as a political selling point it is also misleading. It is an error to use this as a selling point for the 2014 elections".

In a speech commemorating National Awakening Day in the Serdang Bedagai regency in North Sumatra on Friday last week, Golkar Party general chairperson Aburizal Bakrie said that several recent surveys have found that quite a lot of people miss the stability, firmness and fast pace of development in the past, particularly during the New Order period.

According to Bakrie, Golkar understands this longing for the past. "In fact, the Golkar Party is actually an important part of these past successes. Because of this, if necessary, [we] are willing and able to repeat these past successes, by of course absorbing the spirit of the period and accommodating a new development that is better", he said.

Research professor Ikrar Nusa Bhakti from the Indonesian Institute of Science's Center for Political Studies (PPP-LIPI) said that Golkar must also be deemed to have succeeded in bankrupting Indonesia and castrating all of the social organisations during the New Order period. Claiming the successes of the New Order is to completely ignore what actually happened. "Golkar, which considered itself to be a functional group, not a political party, succeeded in becoming the backbone of the New Order and its authoritarianism, and making it impossible for the Indonesian people to be free to assemble and join a trade union", he said.

According to Bhakti, what is even worse, Golkar should take responsibility for the bankruptcy of the Indonesian economy when it was hit by the 1997 monitory crisis, which marked the beginning of the fall of Suharto.

"It has to be remembered that that the [New Order's] political stability was because the military moved into all spheres of political life while the successful economic growth was through the total depletion of Indonesia's natural wealth. The current economic foundations are fragile because [economic growth] was built upon foreign debt from the World Bank and the IMF, who also allowed corruption to proliferate. If the economic foundations of the New Order had been strong, [Indonesia] would not of course have been hit by the flow on from the 1997 economic crisis. Golkar is responsible for the bankruptcy of Indonesia", he said.

Golkar Party General Secretary Lalu Mara Satriawangsa said that regardless of what was said by Bakrie in his speech, it was actually only a desire to take what good from the past and pass this on. "What is inadequate, well yes improve it. That there were good things in the past cannot be denied", he said.

[Translated by James Balowski.]

Nazaruddin dismissed merely to save face: Activist

Jakarta Globe - May 24, 2011

Arientha Primanita – The Democratic Party's dismissal of Muhammad Nazaruddin as party treasurer does not illustrate Yudhoyono's seriousness in eradicating political corruption in the country, but rather his desire to save face, an activist said on Tuesday.

Setara Institute for Peace and Democracy founder Hendardi said the decision to merely dismiss Nazaruddin as party treasurer represented a small compromise.

While Nazaruddin remains in the House of Representatives, he could use that position to protect himself from the cases he is allegedly involved in, Hendardi said.

"The decision does not show that Yudhoyono is serious about eradicating political corruption, but rather his own image and the image of the Democratic Party," he said in a statement.

Hendardi said Yudhoyono and the party's chairman, Anas Urbaningrum, could not wash their hands of Nazaruddin as if the party was squeaky clean. "The public no longer believes the corruption eradication attempts initiated by political elites," he said.

In the case of Nazaruddin, the public already suspects the involvement of other Democratic politicians, as the alleged corrupt practices of Nazaruddin could not have been carried out alone, Hendardi said.

Nazaruddin has been accused of taking kickbacks from the contract to buil and athletes' village in Palembang, South Sumatra, for November's SEA Games. Mindo Rosaline Manullang, who is suspected of brokering the deal, initially accused Nazaruddin of having taken Rp 25 billion ($2.93 million) for mediating between the government and the winning contractor, but has since recanted that allegation.

Hendardi said Nazaruddin should have been dismissed from the party altogether after they first learned of the SEA Games graft case, to allow the Corruption Eradication Commission to freely investigate the case.

Elections

Electoral participation could drop to 60 percent by 2014

Kompas - May 29, 2011

Jakarta – The number of floating voters is tending to increase. This can be seen not just from the decline in participation levels in elections between 1999 and 2009, but the political parties in general would be unable to hold on to their constituents if an election was held today.

This was revealed by Indonesian Survey Institute (LSI) researcher Saiful Mujani on Sunday May 29 in Jakarta. The participation levels in elections between 1999 and 2009 have declined. If this trend is linear, in the next five years participation levels will decline to 60 percent. The decline in electoral participation of 20 percent in just a decade, according to Saiful, indicates the weakness of the relationship between the political parties and their constituents.

This conclusion is supported by the results of an LSI survey on May 10-25 of 1,220 respondents with a margin of error of 2.9 percent and a confidence level of 95 percent. Only the Golkar Party, the Indonesian Democratic Party of Struggle (PDI-P) and the United Development Party (PPP) will be able to maintain their constituents. More than 70 percent of these three parties' voters – 74.5 percent for the PPP, 75.4 percent for the PDI-P and 77.5 percent for Golkar – will not change their choice of vote.

Only 54.5 percent of voters will continue to vote for President Susilo Bambang Yudhoyono's ruling Democrat Party. Voter loyalty for the medium size parties such as the Greater Indonesia Movement Party (Gerindra), the National Mandate Party (PAN), the Justice and Prosperity Party (PKS) and the National Awakening Party (PKB), is only 51-63 percent.

Based on this survey, the Democrat Party will still be able to win an election, but its vote share would shrink to just 18.9 percent. Although it still received the highest vote in the survey, Democrat voters are very unreliable. Conversely, Golkar voters are more stable compared with PDI-P and the Democrat Party. Saiful said however that the Golkar Party will not be able to attract now voters while the PDI-P will be able to maintain its long-term constituency as well as attract additional voters.

University of Indonesia political psychology professor Hamdi Muluk believes that the electability of parties and political party leaders in Indonesia is not just determined by their closeness to people or information in the lead up to elections. Very few voters identify themselves with a particular political party, and this is why the popularity is such a determining factor.

Indonesian Institute of Science (LIPI) researcher Lili Romli added that the political parties in Indonesia are extremely unhealthy. Cadreisation is not functioning, recruitment is 'instant' and the political parties are unable to represent the ordinary people. Political oligarchies are growing stronger and the parties are controlled by elite dynasties.

[Translated by James Balowski.]

Smaller parties look to block Golkar plan for 5% threshold

Jakarta Globe - May 28, 2011

Anita Rachman – The Golkar Party will not get its way on the contentious legislative threshold, officials from smaller political parties have vowed.

Marwan Jafar, factional chairman for the National Awakening Party (PKB), said on Friday that it was sure the threshold – the minimum percentage of nationwide votes needed to earn a seat in the House of Representatives – would not be set any higher than 3 percent.

"It will be discussed in the joint secretariat," he said, referring to the Democratic Party-led ruling coalition, which inked a new strategic agreement on Monday. "All members are fine with 3 percent; only Golkar [is insistent on 5 percent]."

House factions had earlier agreed to raise the legislative threshold to 3 percent from the current 2.5 percent. But Golkar criticized the decision at Thursday's House Legislation Body meeting, saying it wanted the limit doubled and wanted it to be put to a vote at the body or at a House plenary session.

The lack of agreement stems from the myriad proposals put forward by different parties. Golkar and the opposition Indonesian Democratic Party of Struggle (PDI-P), the second- and third-biggest factions at the House, are seeking a doubling of the current threshold to 5 percent.

The Democrats want it to be set at 4 percent, while the Prosperous Justice Party (PKS) is pushing for between 3 percent and 4 percent. The five smaller parties all want it to stay at 2.5 percent.

The threshold increase has been criticized by smaller parties as a way for bigger parties to monopolize the legislature, while proponents argue it will simplify the party system. Only nine parties met the 2.5 percent threshold in the 2009 polls, with 29 others failing to gain a seat in the House.

Marwan said he was sure the 3 percent threshold would also be supported by the smaller parties outside the coalition, the Great Indonesia Movement Party (Gerindra) and the People's Conscience Party (Hanura).

M. Romahurmuziy, deputy secretary general of the United Development Party (PPP), said he was unconcerned by Golkar's proposal to put the issue to a vote. Golkar and the PDI-P together hold 200 of the 560 seats in the House.

"[The coalition] has agreed on 3 percent," he said. "If Golkar insists on 5 percent, then let's see at the House plenary session. I am sure they won't get their way."

But Golkar legislator Nurul Arifin said her party would continue to fight to have the 5 percent threshold pushed through. "That's what the people want, therefore we should fight for it," she said. "If the Democrats are with us, we could make it 5 percent."

Nurul said 36 percent of the House wanted 5 percent, 26 percent wanted 4 percent, and 37 percent wanted 3 percent. She added that she was confident the Democrats would back a simpler party system because that would better support the presidential system.

Meanwhile, Saan Mustopha, the Democrat's deputy secretary general, said it would listen to all sides of the debate. "The most important thing is not the number, but the arguments why we should go with a certain limit," he said.

Saan said the issue would be raised at the joint secretariat's next meeting.

Golkar, PDI-P insist on 5% threshold as debate heats up

Jakarta Post - May 28, 2011

Ridwan Max Sijabat, Jakarta – As the House's debate on the general elections bill heats up, two parties want the electoral threshold be upped to 5 percent from the current level of 2.5 percent.

Legislators from the Golkar Party and Indonesian Democratic Party of Struggle (PDI-P) proposed the increase, which came after a House of Representatives plenary meeting in April, when parties inched closer to a compromise threshold of 3 percent.

Both parties said the proposal was based on a long study and political analysis and promised to continue to lobby smaller parties to agree to a compromise.

"It is impossible for Indonesia to treat legislative elections as a free market that allows all parties to compete and to send their representatives to the legislature," Puan Maharani, the PDI-P's leader in the House, said on Friday.

"We should learn from the last three general elections that the more parties there are, the more chaotic the elections will be, the more confused voters will be, the more factions will appear in the legislature and the more ineffective the government will be," Puan added.

Ignatius Mulyono, the chairs of the House's committee revising the bill, and Ali Wongso Sinaga of the Golkar faction, agreed that both parties would court smaller parties to support the 5 percent solution.

Smaller parties, including unregistered parties outside the House, and pro-democracy NGOs have opposed a higher threshold.

At the plenary meeting, five smaller House parties – including the United Development Party (PPP), the National Mandate Party, the National Awakening Party, the People's Conscience Party (Hanura) and the Great Indonesia Movement Party (Gerindra) – proposed maintaining the 2.5 percent threshold, while the Democratic Party proposed a 4 percent threshold and the Prosperous Justice Party (PKS) backed an increase to 3 to 4 percent.

Hadar N. Gumay, the executive director of the Center for Electoral Reform (Cetro), warned big parties against attempting to monopolize political power, saying it was not the right time to impose a higher electoral threshold, which he said would counter pluralism.

"The government's ineffectiveness has little to do with the multiparty system and more to do with national leadership," he said.

Senior Golkar politician and former House speaker Akbar Tandjung said on Friday that a simpler political party system would lead to a more effective presidential system.

"Ideally there should be no more than five or six political parties in Indonesia," Akbar said at a seminar at the PPP's national headquarters. "I believe that two Islamic parties in Indonesia is enough: one to represent traditional Islamic groups, and the other to represent modern Islam," Akbar said.

He added that there should be only two nationalist parties while leaving room for increased representation.

"There should also be room for other groups. Let's say the Christian groups want to establish a political party to accommodate their voice, we should let them," Akbar said. "The political elites should realize that this is the best for the whole nation."

House Deputy Speaker and PDI-P politician Pramono Anung said a higher electoral threshold for the 2014 elections would be ideal.

Twenty-nine of 38 political parties standing in the 2009 election failed to meet the threshold required for House representation. "It should be higher, either three or four percent or whatever that the House decides on," Pramono said.

Syamsuddin Haris, a political analyst at the Indonesian Institute of Sciences, said, "It would be hard to establish democratic consolidation if every instance of political dissatisfaction leads to the establishment of new political parties." (mim)

Golkar in fury over threshold ruling

Jakarta Globe - May 27, 2011

Anita Rachman – The Golkar Party lashed out on Monday against a decision by the House of Representatives to propose raising the legislative threshold to 3 percent.

Golkar legislator Nurul Arifin said her party had been holding out for a 5 percent threshold, which is the minimum number of votes nationwide that a party must win in order to be represented in the House. "Golkar insists on 5 percent," she said. "What the people want is a simplification of the political party system."

She was speaking after Thursday's meeting of the House Legislation Body to agree on a threshold figure for the proposed amendment of the 2008 Elections Law, which ended without agreement and prompted the body's chairman to settle on the figure of 3 percent.

"The chairman was being authoritarian," Nurul said. "He banged his gavel [to end the meeting] before we could say something."

The lack of agreement stemmed from the various proposals tabled by different parties. Golkar and the opposition Indonesian Democratic Party of Struggle (PDI-P), the second- and third-biggest factions at the House, are seeking a doubling of the current threshold from 2.5 percent to 5 percent.

The ruling Democratic Party wants it to be 4 percent, while the Prosperous Justice Party (PKS) is pushing for between 3 and 4 percent. The five smaller parties all want it to stay at 2.5 percent.

Ignatius Mulyono, chairman of the House Legislation Body, said he had gone with 3 percent because that was the figure previously agreed on by all parties.

Ahmad Yani, from the United Development Party (PPP), said that if Golkar reneged on the earlier agreement and insisted on 5 percent, then the PPP could do likewise on other issues it had compromised on.

"That was the agreement," he said, referring to the 3 percent threshold. "If Golkar scraps it, I want a whole new set of discussions, starting from the beginning."

He added a simpler option would be to let the government determine the figure, which would be deliberated later anyway by the House.

Nurul agreed that there was no point on reaching consensus on a figure now, given that the 3 percent proposed by the legislative body would likely be revised once the draft amendment was deliberated. However, she added that if the body had to come up with a number for the legislative threshold, they could have taken it to a vote.

The Democrats have 13 members in the 51-seat body, while Golkar has 10. The PDI-P has seven, the PKS has five and the rest have two to four.

Government wants polling bodies free of politicians

Jakarta Globe - May 24, 2011

Anita Rachman – Home Affairs Minister Gamawan Fauzi and Justice and Human Rights Minister Patrialis Akbar on Monday said the country's election organizers should be free from any political influence, and called for political party members to be banned from polling bodies.

The ministers met with the House Commission II, overseeing home affairs, to discuss the revision of the Election Organizers Law, which is targeted to be finished in the current sitting period, which ends in July.

Seven of the nine political factions in the House of Representatives have pushed for an amendment on the Law on Election Organizers to allow cadres to sit on the election boards. Only the ruling Democratic Party and the National Mandate Party (PAN) were against the proposal. Watchdogs have warned several times that with the integrity of the nation's legislature already at rock bottom, allowing active politicians to sit at the National Electoral Commission (KPU) would only make matters worse.

The current law states that applicants to election organizing bodies must have not been active members, such as office holders, of political parties for five years but they are allowed to join immediately upon resignation.

The Democrats and PAN are fine with retaining the status quo. But the seven other factions want the law amended to eliminate the five-year wait prior to applying to work as an election organizer, such as with the KPU or the Election Supervisory Board (Bawaslu), but want to impose a similar five- year wait to re-join a party after quitting such as position.

Gamawan said that the government believed a resignation from a party did not necessarily mean that links between them would cease.

"That proposal also doesn't go along the spirit of the Constitution that requires and independent election," he said. "Thus, the government proposes the House to consider the article."

Nurul Arifin, a legislator from the Golkar Party, said the seven factions will insist that politicians' rights to join KPU must be considered, as long as they have resigned from their party.

Other points that are being debated by the government are about the organizers' Ethics Council and KPU's tenure, which lawmakers want to shorten so organizers could work earlier and leave the job sooner.

Environment & natural disasters

Indonesian government complicit in rainforest destruction: Report

Jakarta Globe - May 31, 2011

Stephen Schaber – The Indonesian government is facilitating the destruction of protected forests, according to a cable news report aired on Tuesday.

"[Logging and mining companies are] legally destroying the forests since government officials simply gave them a license to do so," Al Jazeera correspondent Step Vassen says in the special report.

Al Jazeera bases its findings on discussions with environmentalist organizations and footage captured secretly in Kalimantan of a coal mining company operating in a protected forest area.

President Susilo Bambang Yudhoyono recently signed a two-year moratorium on logging in Indonesia's primary forests and peatland. The Al Jazeera report challenges the authenticity of the ban.

"Indonesia is at the forefront of the battle against climate change," Vassen says. "But the reality on the ground [is that] most of the so- called, 'lungs of the world,' have been destroyed already."

Environmentalist organizations interviewed for the report blame corrupt officials for the exploitation. They say it is common practice for government officials to issue logging or mining licenses in return for a "stiff bribe." The sheer volume of cases brought to court back their claim, the groups say.

One local Kalimantan resident says the president's logging ban is too late, "because most of Kalimantan's is already divided between mining companies and palm oil plantations."

The Norwegian government has promised Indonesia $1 billion to implement a two-year logging ban. Vassen says Indonesia refutes criticism "the ban is only symbolic."

But a presidential advisor on climate change, quoted in the report, believes a balance can be struck between environmental preservation and economic growth.

"[Can] Indonesia achieve 7 percent growth without harming this 60 million hectare primary forest," Agus Purnomo says. "Yes. And we can also reduce emissions significantly."

The report questions Agus' assertion by immediately showing flyover footage of deforested land that now resembles a "moon landscape." The correspondent simultaneously points out that, "mining companies are legally bound to restore the forest."

The report also cites the power of local government as a factor in the exploitation. "Ever since the introduction of regional autonomy," Vassen says, "the [central] government is often overpowered by local authorities who are not keen to enforce the logging ban."

The Al Jazeera correspondent says that in just one district in East Kalimantan, more than 700 logging permits have been requested, among which "hundreds" have been issued.

The district chief, interviewed on-camera, concedes corruption is a problem. "Officials wrongly handed out permits," Rita Widyasari says. "They've handed out permits in a protected forests so they didn't treat forests in a proper way. They gave it away for mining or plantations."

Despite the district chief stating this abuse will not happen again under her rule, environmentalists remain skeptical. "With new corruption cases being detected throughout Borneo, the remaining forests could very well be up for sale."

After 5 Years, Sidoarjo mud victims blast lag in payouts

Jakarta Globe - May 30, 2011

Amir Tejo, Sidoarjo, East Java – Five years since a torrent of hot mud engulfed thousands of homes in Sidoarjo, East Java, villagers are still waiting for the damage payments promised to them.

"This is unacceptable," said Abdul Fatah, the owner of a school destroyed by the mud and one of hundreds of residents who gathered in Porong subdistrict on Sunday to mark the anniversary of the May 2006 disaster.

"This mudflow has been going on for five years now, but our claims remain unpaid," he said.

Fatah said Lapindo Brantas – the Bakrie Group subsidiary blamed for the gush that followed the blowout of one of its natural gas wells – had only paid him Rp 400 million ($47,000) of his Rp 1.5 billion payout.

He said the company had violated the law by delaying the payments to him and around 11,000 families entitled to property-damage compensation.

"Under a presidential decree, we were supposed to receive the money in two stages – first 20 percent, then 80 percent," he said. "That 80 percent was supposed to be paid in cash up front, not in installments."

"By allowing Lapindo to [pay in installments], the state is breaking the very law that it set down," Fatah added. Every month Lapindo failed to follow through on its promise, he said, hope faded for his dream to build a new Islamic school.

Saman, a resident of Jatirejo village, said the trickling monthly payments were delayed. He said payouts had stopped coming in the four months since January and only resumed earlier this month.

Saman said he had joined members of the Sidoarjo district legislature in pushing the central government to provide a loan to Lapindo so that it could complete its payments, but the state did not respond to the demand.

Diaz Raichan, a spokesman for Lapindo, has assured residents the compensation process was still ongoing. "We expect to pay them off in full by the middle of 2012," he said last week.

The mudflow has destroyed hundreds of homes, swamped 720 hectares of land and displaced thousands of people since it began erupting just 200 meters from the mouth of the ruptured Lapindo gas well.

While most scientists agree the disaster was caused by an explosion at the well, Lapindo and the government have laid the blame on an earthquake that struck days before the mudflow, about 280 kilometers away. This theory has been dismissed for lack of evidence by many experts studying the mud volcano.

Shortly after the disaster, President Susilo Bambang Yudhoyono ordered the company to pay about $400 million for mud containment efforts and compensation to those affected.

Lapindo is partly owned by the family of Golkar Party chairman Aburizal Bakrie, who at the time of the eruption was the coordinating minister for the people's welfare.

On Sunday's anniversary, residents held a mass prayer and hung banners calling for full compensation to be paid immediately by Lapindo. They also called for the government and Lapindo to compensate around 45 families whose homes were destroyed by the mudflow but who were not officially recognized as living in the disaster zone.

Javan mud survivors scrape by in misery

The Australian - May 30, 2011

Peter Alford, Jakarta – It was a bleak anniversary for Muhammad Budi and Sarwi, marked as every other day for the past five years by Lusi's sulphurous white plume rising from the middle of 640ha of grey-black devastation.

Before May 29, 2006, the two men had family homes, communities and good jobs, but today they scrape a miserable living showing gawkers around the edges of the freakish Sidorajo mud volcano, which ruined their lives.

Sarwi, 42, remembers the Monday morning everything changed. He was breakfasting with his wife and daughter before his shift at a nearby steel plant. "There was a loud bang, a very bad smell, then we saw a fountain of boiling mud. Everybody ran to the village office but there was not enough space for us all," he said.

Sarwi's house in Tampak Siring village was 300m from the world's worst mud eruption – triggered, most scientists believe, by a gas-drilling accident – and is today buried beneath a vast mud dome.

He scrapes a living as an ojek (motorcycle taxi) rider on the 15m-high rock embankment shielding the highway, railway and neighbourhoods on the western flank of Lusi, short for Lumpur (mud) Sidorajo.

The area's ojek association is open only to men from the devastated zone, such as Sarwi and his friend Budi, 28, who had his own scrap business there five years ago. Their customers – at best one or two each per day, says Sarwi – are mostly sightseers.

Lusi has spewed more than 150 million cubic metres of sterile sludge across a once-prosperous mixed district of farms, light industry and suburban housing on the southern fringe of Surabaya, East Java's largest city.

More than 40,000 people have lost their homes, 33 schools are laid to waste, 65 mosques shut, 30 factories gone, hundreds of smallholdings and fish farms are ruined and thousands of jobs lost.

Groundwater has been fouled beyond the inundated area and hundreds of homes have been demolished by householders relocating brick by brick from spoiled water, reeking air and the continuing threat of wall breaches.

The transport corridor to Surabaya's industrial port, Tanjung Perak, remains severely disrupted, and what used to be a four-hour truck journey can now take 10 hours.

Since Wednesday, the disruption has been worsened by hundreds of protesters sporadically blocking the highway in their campaign to be included in compensation schemes run by BPLS, the government's Lusi disaster management body, and drilling company Lapindo Brantas.

"We've been protesting for five years," said neighbourhood organiser Bambang Subandrio. "But there's never any answer – we just keep getting the bad water and smelly air."

The government's national audit office has calculated that Lusi's accumulated economic costs will reach $US3.46 trillion ($3.23 trillion) in 2015.

"Perhaps the most devastating and defining aspect of this disaster, as opposed to others, has been the loss of community experienced by the victims," says a new social impact report prepared by Humanitas Foundation, an Australian charity.

"I liked it most at Idul Fitri (the end-of-Ramadan feast) when everyone was here, but now our families, everyone, is scattered," says Budi, standing on the embankment's southwest corner above the grey brackish water and sulphurous mud submerging his village, Jatirejo.

Like most of the displaced, Budi and Sarwi lived on land handed down through generations of family, fixed in their communities. But not for their children, the ojek men are reminded each day as they ride along the wall.

About 14,000 families have been cut off from their heritage. Hundreds more would risk severing those ties if they could get government money to escape from Lusi's poisoned surroundings.

It hardly matters to those people that hopes are rising that Lusi's worst might have passed.

The daily mud flows have fallen to about 10,000cu m, down from an average of more than 100,000cu m, and after almost five years of continuous eruption, the volcano now goes quiet for up to 13 minutes at a time. "It's changed its behaviour and that's a positive thing," said Durham University geologist Richard Davies, a leading authority on Lusi.

He thinks pressure in the aquifer, pushing water from 2.8km below the surface, might be equalising with pressure at the surface, although subterranean gas continues pushing mud upwards.

In a paper in February, Professor Davies calculated the eruption would probably continue for 26 years before reaching manageable levels – less than a 1000cu m daily flow. Now he's recalculating. However, he warned that events could still go badly wrong for the people living around Lusi.

The most dangerous of the possibilities would be a major collapse of the mud dome – in one area the surface has subsided 12m in a year – spreading the damage outside the walls.

Sidoarjo mudflow victims commemorate 5 years of disaster

Jakarta Post - May 29, 2011

Jakarta – Hundreds of mudflow victims in the East Java town of Sidoarjo staged rallies on Sunday as part of the 5th anniversary of the disaster and are demanding compensation.

Rally coordinator Abdul Fatah said the government had failed to pay equal compensation to victims of the mudflow, which first erupted in May 2006 amid the drilling of PT Lapindo Brantas in the area. Lapindo Brantas is an oil and gas company affiliated with top politician and business tycoon Aburizal Bakrie.

"We mudflow victims want the government to be firm in this matter. The President should have more strength than a businessman," he said, as quoted by kompas.com.

Younger participants at the rallies performed a play depicting their suffering. Thousands living around the drilling site in Porong district, Sidoarjo, have been displaced because of the mudflow and were promised compensation.

Environment Watch: Illegal loggers, firms destroy mangroves

Jakarta Post - May 27, 2011

Wahyoe Boediwardhana, Surabaya – Mangrove conservation forests along the east coast of Surabaya (Pamurbaya) face threats not only from indiscriminate land clearing for fish or shrimp ponds, but also by the commercial interests behind them.

Rumah Mangrove Surabaya issued a report showing people resorted to illegal logging under the pretext of expanding their fish and shrimp farms, but later sell the land to developers who convert it into residential areas.

Rumah Mangrove Surabaya consortium director Wawan Some said 10 of the 400 hectares of mangrove forests in the Kalisari Damen conservation area in Kejawan Putih subdistrict, Mulyorejo district, had been destroyed.

He said such practices were once widely used by illegal loggers in the 1980s and 1990s. "They intentionally expanded their farms toward the sea so they could obtain land ownership documents," he said.

Wawan said that after shrimp farmers had occupied the land for two to three years, they would sell it to developers who would construct up-scale housing estates such as the Marina.

"The developers could very easily claim that they bought the land from the shrimp farmers legally. So any blame for damage to the conservation area falls on the shrimp farmers," he said.

Wawan cited figures from the Surabaya administration, which showed there were currently 2,000 hectares of mangrove forests in the Pamurbaya area, 40 percent of which are damaged. The density of mangrove swamps in the area, which act as a natural buffer against coastal erosion, should ideally be between 200 and 300 meters from the coastline, while in fact, the density is only between 4 and 5 meters.

He said 80 percent of mangrove forests in the Pamurbaya area were "dominated" by developers, an indication of the extent of shrimp farming regulatory breaches.

In a recent police crackdown on illegal logging, Surabaya Police arrested four suspects: Amir, a logger, and Tosin, Ghoni and Chodjin, who are shrimp farmers.

The Surabaya administration is widely perceived to be negligent in its management of mangrove conservation forests, prompting the Ecological and Wetland Conservation Research Institute (Ecoton) to summon the Surabaya mayor.

Ecoton director Prigi Arisandi said the summons was intended to push the Surabaya administration to immediately issue a bylaw on coastal fish farms given that the area of fish farms in the Pamurbaya area increases each year.

"Between 2001 and 2011, there were four incidents of large-scale illegal logging. The administration should ensure this doesn't happen again," Prigi said.

The Surabaya administration plans to buy land from the shrimp farmers if they are proven to be the rightful owners as the area has been designated a forest conservation area and should be free of any commercial activity.

Decree leaves secondary forests 'ripe for the picking'

Jakarta Post - May 26, 2011

Adianto P. Simamora, Jakarta – Environmental activists have raised concern that businesses will focus on securing permits to convert secondary forests, because a recently imposed moratorium on forest conversion only covers primary forests.

Palm oil producers, who are a major force in the nation's forestry sector, have said that the recently signed forest-clearing moratorium does not allow them to operate on degraded land located in areas designated as primary forest areas.

"It is almost impossible to expand business in those areas," Association of Palm Oil Producers (Gapki) secretary-general Joko Supriyono told The Jakarta Post. President Susilo Bambang Yudhoyono has said that palm oil producers would be allowed to operate in degraded forests.

The two-year-binding pact was signed last week. The moratorium was one of the stipulations of a letter of intent that the country signed with Norway last year, under which Norway pledged Indonesia US$1 billion.

The moratorium covers only primary forests and peatland, but not secondary forests. The moratorium also protects degraded forest land within primary forest areas.

"With the moratorium, the real opportunity for palm oil plantations is secondary forests," Presidential aid on climate change Agus Purnomo said.

The Forestry Ministry announced last year that Indonesia possessed a total forest area of 132 million hectares, comprising 48.6 million hectares of primary forests and 82.8 million of secondary forests.

Joko said it was not easy for businesses to operate on degraded areas in primary forests, as that would require an amendment of the national spatial planning law, which would have to be endorsed by the House of Representatives.

"I can assure you that no one from the plantation sector would dare convert [forest land] if the regulations are not changed. No one is interested in going to jail," Joko said.

The world's largest crude palm oil producer and exporter, Indonesia has 8 million hectares of oil palm plantations, 40 percent of which is managed by small growers, Gapki said.

Oil palm plantations have expanded by 300,000 to 400,000 hectares per year on average over the last few years. There are 849,498 hectares of oil palm plantations on peatland.

The director of the Oslo-based Rainforest Foundation Norway, Lars Lxvold, said he was concerned about the lack of protection for secondary forests extended by the moratorium. He said secondary forests were rich in biodiversity and were crucial to local livelihoods. "[The forests] can store huge amounts of carbon," he said in a statement.

Without necessary political will from the government, Lxvold said, there would be no credible protection of Indonesian rainforests.

"Until Indonesia is able to implement necessary measures to actually reduce deforestation, Norway has to cut its transfers to Indonesia significantly. If not, they will undermine the credibility of REDD Plus," he said.

The foundation said it was also concerned because the moratorium decree did not stipulate punishments for violators.

Research by the Leiden-based Van Vollenhoven Institute (VVI) showed that by the end of 2010 the Forestry Ministry had designated 78,110 hectares of land as community forests, 29,680 hectares of which had been contracted out to businesses through concession permits approved by local administrations.

Scientists say mudflow has changed face of Sidoarjo

Jakarta Globe - May 25, 2011

Fidelis E. Satriastanti, Sidoarjo, East Java – The underground mud volcano that began erupting here since 2006 has permanently changed the landscape of the surrounding area, scientists say.

Richard Davies, a prominent geologist from Britain's Durham University, said on Wednesday that the geological changes that had occurred in Sidoarjo since he last visited four years ago looked set to stay that way.

"I was surprised when we drove up to the middle of the crater where they're actually building stone walls. It suddenly struck me that this is a permanent feature of the Indonesian landscape," he told reporters on the eve of an international scientific symposium hosted by the Humanitus Sidoarjo Fund.

Following Davies' first visit to Sidoarjo in 2007, he published a paper concluding the disaster had almost certainly been caused by gas drilling activities carried out by Lapindo Brantas, which is part-owned by the family business empire of Golkar Party chairman Aburizal Bakrie.

Davies' second paper on the subject predicted the hot mud and gases spewing from the ground would continue for the next 26 years, when it would reach manageable levels. He said the visible decrease in the flow of mud between 2007 and now was a positive sign.

"That's something that scientists are debating, what kind of mechanism is taking place," he said. "Maybe it indicates that it's slowing down and the pressure is diminishing. That's a positive thing to talk about. If the change of eruption style indicates that the pressure has dropped, it's good news."

Mark Tingay, a geophysicist from the University of Adelaide in Australia who has also studied the disaster since it began, said he was similarly surprised by the changes in the landscape caused by the flow of mud. "I came in 2007 and it has changed dramatically since that time," he said.

"The eruption seemed to have slowed down dramatically as we walked down the crater. But what struck me was that all of those villages and those houses were completely gone."

Pitando Hariyadi, a field officer from the Sidoarjo Mudflow Mitigation Agency (BPLS), confirmed that the mudflow seemed to have peaked.

"We've gotten used to the eruption, but it's slowing down," he said. "Yesterday, the mud stopped gushing for 13 minutes, which is a record. Normally we get gushers every 20 seconds."

Throughout 2009, the mud flowed out of the ground at an average rate of 100,000 cubic meters a day, according to BPLS data. This year, the daily average has dropped to 13,000 cubic meters.

Pitando also said that the mud had indeed created a new landscape in the area and that would likely stay that way. He said the initial mudflow had moved in only one direction, but later spread out in all four directions, including toward the Porong highway.

"The mud pushed through the dam built to contain it," he said. "That dam was actually built only six months ago. We're now standing over part of the dam that got submerged by the flow."

The mudflow has destroyed hundreds of homes, swamped 720 hectares of land and displaced more than 11,000 people since it began erupting in late May 2006.

Health & education

Indonesia 'worst' in tobacco fight

Jakarta Globe - May 30, 2011

Dessy Sagita – As countries mark World No Tobacco Day today, Indonesia is still struggling to end the deadly addiction among its citizens despite overwhelming evidence that smoking is a major killer.

Indonesia remains the only country in the Asia-Pacific region that has not ratified the World Health Organization's Framework Convention on Tobacco Control, which requires its members to ban all tobacco advertising, including sponsorships and promotions, and impose no-smoking zones.

This has led activists to describe Indonesian programs to fight tobacco addiction, especially among young smokers, as the "worst in the world."

"Indonesia is a gigantic country, the number of smokers is outrageous," said Fuad Baradja, head of public education at the Indonesian Smoking Control Foundation (LM3).

"People start smoking when they are toddlers. But despite the severity of the situation, we still don't have adequate regulations that can address these problems properly. Therefore it's safe to say our anti-tobacco programs are the worst in the world."

World No Tobacco Day was initiated by the WHO in 1987 to encourage people to stop consuming tobacco products for at least 24 hours, but so far in Indonesia its impact has been limited.

Ministry of Health data shows that more than 60 percent of Indonesian men are smokers and more than 43 million children live with smokers.

A global youth tobacco survey conducted by the WHO in 2006 found that more than 37 percent of Indonesian high school and university students smoked, and three out of 10 admitted they started before turning 10.

Kartono Muhammad, a leading anti-tobacco activist and a former chairman of the Indonesian Doctors Association (IDI), said efforts to catch up with neighboring countries in terms of curtailing tobacco's harmful impact had thus far been ineffective, largely due to a lack of national leadership.

"Unfortunately, the efforts are sporadic and they don't reach all parts of Indonesia," he said. "That's because these efforts were initiated by local governments while the central government has been idle."

Only eight of the 33 provinces and 11 of the more than 400 districts in Indonesia have imposed no-smoking zones in public areas and facilities.

Jakarta is one of the provinces that has banned smoking in buildings but the regulation has remained largely ignored.

However, the WHO honored Jakarta Governor Fauzi Bowo on Sunday for his commitment to fighting tobacco addiction.

Technicality stubs out total ban on smoking ads

Jakarta Globe - May 27, 2011

Dessy Sagita – Two years into drafting the 2009 Health Law's implementing regulations, the Health Ministry announced on Friday that the expected blanket ban on cigarette advertisements and sponsorships could not go forward.

"Initially, we wanted to impose a total ban on cigarette ads and sponsorships, but after considering the importance of many sectors we decided not to do that, we will only control it," said Budi Sampurna, head of the legal bureau at the Ministry of Health.

Budi said the planned ban was hampered by two existing laws on the press and broadcasting, which allowed advertising as long as cigarettes or their packaging were not shown on television.

He added that the passage of another law on controlling tobacco, currently being drafted, could overrule the existing laws, and allow a total ban to be implemented in the future.

The Health Law had been seen as a victory by activists as it classified tobacco as an addictive substance, which meant its traffic had to be controlled by the government.

But activists have been disappointed over and over again, first over the delay in the release of the implementing regulations, and then in February's announcement that a total ban would only be imposed in stages.

Budi said the government had yet to finalize exactly how ads would be limited, but stressed the state would do its best to prevent them from being viewed by young people.

"We realize it will not be 100 percent effective in reducing the number of smokers but let's see it as a brake, we are slowing down the increase in new smokers," he said. The government, he added, would also urge regional administrations to create more smoke-free areas and limit billboards promoting cigarettes.

Activists were not placated. "Honestly I'm not convinced by the government's claim that they will limit the number of ads," said Fuad Baradja, head of public education at the Indonesian Smoking Control Foundation (LM3).

"The most ideal policy to fight tobacco addiction is the FCTC, if the government insists on not ratifying the framework, they should at least issue a regulation that is on the same track," he said, referring to the World Health Organization's Framework Convention on Tobacco Control.

Indonesia is the only country in the Asia-Pacific region that has not ratified the convention, which requires its members to ban all tobacco advertising, including sponsorship and promotion, and impose no-smoking zones.

Arist Merdeka Sirait, chairman of the National Commission for Child Protection (Komnas Anak) said the government's decision contradicted the Health Law.

"The law clearly states tobacco as an addictive substance and clearly addictive substances should not be advertised," he said. "The government should ask themselves, what do they care about more, income or the future or our children?"

Women & gender

Reform era laws detrimental to women: Activists

Jakarta Globe - May 25, 2011

Ronna Nirmala – Oppressive laws adopted since the fall of Suharto are threatening to erode long-held women's rights, activists warned on Wednesday.

Maria Farida Indrati, a Constitutional Court justice, said that since the onset of reform and regional autonomy, more women were finding themselves "in adverse situations as a result of regulations, treatment by men and other factors."

She said discrimination often occurred because of bylaws and regulations issued by conservative regional administrations. "Our diversity is being erased by these laws," Maria said.

She cited the cases of Aceh province and the city of Padang in West Sumatra, where the respective administrations had made it mandatory for all female Muslim civil servants to wear an Islamic headscarf during work hours.

"Customary laws may be applied under the principle of regional autonomy, but they should be contingent on the individual," she said. "Faith is a personal affair."

Maria was speaking at a seminar on women's rights in the reform era, hosted by the National Commission on Violence Against Women (Komnas Perempuan).

Erma Suryani, a researcher from the State Islamic Institute (IAIN) in Mataram, West Nusa Tenggara, told the seminar there had also been an increase in the number of women entering common-law marriages, thus being deprived of key rights afforded to those in a state-recognized marriage.

"It's absolutely detrimental to their rights once they get divorced by their husbands," she said. "They have a hard time claiming custody of their children or spousal support."

Yanu, an activist with the Yogyakarta Indonesian Family Planning Association (PKBI), said that from her experience in the field, society seemed to be taking an increasingly conservative view of women.

"We often see cases where Christian women or those from other minority religions have to wear a veil to a community gathering or face a hostile reception, even outright rejection," she said.

Masruchah, deputy chairwoman of Komnas Perempuan, said women should not stay silent in the face of such discriminatory practices.

"If there's something wrong that happens to a woman, she has to tell it to the people around her," she said. "That helps prevent others from propagating the same behavior against women."

She added that cowing before discrimination would only make the situation worse.

Most media reports on women's issues focus on violence: Rights group

Jakarta Globe - May 24, 2011

Elisabeth Oktofani – Activists said on Monday that violence against women still dominated reports on women's issues in the print media and that other angles and themes needed to be explored.

The state-sanctioned National Commission on Violence Against Women (Komnas Perempuan) said its findings came from a survey of reports on women's issues published by eight national print media in 2010, including the Jakarta Globe.

The survey showed that from the 1,278 articles on women's issues covered in those media that year, 82.95 percent were focused on violence against women. The majority of the rest covered gender discrimination, female criminals and morality issues.

Komnas Perempuan's Andy Yentriyani said at a discussion on Monday that the media should pay more attention to the frequently negative portrayal of women's morality, even in stories where a woman is the victim of a sexual assault.

"The presumption of innocence is often neglected by the media, especially media reports on pornography, where the moral issue, rather than the sexual violence, is being brought forward," she said.

TV presenters Cut Tari and Luna Maya both came under intense media scrutiny last year after being implicated in the Nazril "Ariel" Irham sex video scandal. Both women were publicly denounced by some religious groups for immoral behavior.

Komnas Perempuan commissioner Arimbi Heroeputri said that while 83 percent of reports on women's issues actually met the journalistic code of ethics, including in not naming victims of certain crimes, only half met both the journalistic code of ethics and Komnas Perempuan's own code of victim's rights.

Nunung Qomariyah, another commissioner, called on the media to become an agent of change and help spread a better understanding of the issues women face in society.

"The media also has a function to influence, create and change society's point of view... on women's issues, to have a better understanding in the society," Nunung said.

Another commissioner, Neng Dara Affifah, said the press council and other journalistic organizations must closely monitor the implementation of the code of ethics in media reports.

"In order to implement the code of conduct in media reports on violence against women, media workers and women activists need to discuss and establish an appropriate code of conduct," Neng said.

Neng said that in reporting on violence against women, the presumption of innocence, especially for the victims, should also be respected, especially when concerning a public figure.

Gender & sexual orientation

Indonesia's transgender community facing test of faith

Jakarta Globe - May 28, 2011

Elisabeth Oktofani – For Indonesian transgenders, practicing religion in public is not an easy thing, but that doesn't stop some from trying.

Mariyani, a 50-year-old transgender hairdresser, said during a discussion on homosexuality and religion that transgender people, just like other people, wish to be able to practice their religion openly.

"If I ever had the choice, I would not want to be a transgender, but this is what God has decided for me," Mariyani said.

"It needs to be understood that it is not true that all transgenders are bad, because there are good transgenders who actually have a strong willingness to publicly practice religion but unfortunately we are not accepted," she said.

But Merlyn Sopjan, a Christian transgender who heads the Malang Transsexual Association (Iwama), told the Jakarta Globe that unlike Mariyani, she has never experienced rejection in her church.

"Even though there are many people who know that I am a transgender, no one stares at me every time I walk to the church and I feel so comfortable because I can practice my religion peacefully," Merlyn said.

"I think it is because that in Christian religious rites, the male and female believers are not segregated," she added. "However, I have one friend who was told by the priest that he cannot join the Mass if he dresses up as a woman."

Merlyn said she expects that transgenders will eventually be accepted within religious groups. "As human beings who are committed to our religion, we just want to have the freedom to practice our religion as other people do," she added.

Mohamad Guntur Romli, a prominent liberal Muslim intellectual and a graduate of Egypt's Al Azhar University, said on Thursday that the root cause of suspicion of homosexuals in Indonesia is ignorance.

"The lack of knowledge about rights and health issues related to homosexuality has created hatred within society," Guntur said.

"Homosexuality is being equated with a mental disorder or the homosexual community is blamed for having spread HIV/AIDS, for instance. That's not proper information about homosexuality and this has led to homophobia among wider society," he explained.

Guntur said religious institutions and leaders have also played a role in the stigmatization of homosexuals. "Religious institutions and leaders often find it difficult to be sympathetic toward homosexuality," he continued.

He said that self-righteous religious leaders and institutions see homosexuals as sinners. "Ignorance about homosexuality has created homophobia in society and religion is being used to spread hatred toward homosexual communities," Guntur added.

Muhammad Syukri, an openly gay man from Yogyakarta, told the Globe on Friday that obvious signs of gayness sometimes lead to rejection.

"Being gay is not as hard as being transgender... whenever I want to practice my religion, I do not get a hard time from another believer, because I do not dress up as a woman," Syukri said.

But as soon as he would begin acting in what is seen as a feminine way, trouble often starts. "Some people make a fun of me and actually, that is a form of harassment," Syukri said.

LGBT community says the state not living up to vows of support

Jakarta Globe - May 24, 2011

Dessy Sagita – Homosexuality continues to be seen as a mental disease in Indonesia despite two decades of formal recognition to the contrary, activists said on Monday.

Donny Suryono, from a coalition of more than 60 groups representing lesbians, gays, bisexuals and transgenders, said the lack of government support for the LGBT community increased the marginalization of its members.

"Up to this very moment, the stigma of associating homosexuality with a mental illness continues to exist, and what's even worse is that the government hasn't done anything to stop it," he said at a press conference linked to last week's International Day Against Homophobia.

On May 17, 1990, the World Health Organization officially declared that homosexuality was not a mental illness. Indonesia's Ministry of Health followed suit in 1993.

Hartoyo, a researcher from the gay rights group Our Voice, said the idea that homosexuality was a mental disease was so deeply ingrained in Indonesian thinking that families often forced their gay children into heterosexual marriages in the hope that it would "cure" them. He said this constituted one of the many forms of abuse still suffered by the LGBT community.

"Abuse often happens at home, which is supposedly the safest place for anyone to be themselves. And because it happens in this private environment, many times those cases go unreported," he said.

In the past three months, the Our Voice Web site has received 20 reports of abuse against homosexuals and transsexuals committed by family members. Hartoyo said discrimination also occurred at schools, where homosexuals, feminine boys and masculine girls were often bullied by their peers and often chose to drop out of school.

He said there were at least 10 national laws and regional bylaws that discriminated against the LGBT community, including the 2008 Anti- Pornography Law, which categorizes homosexuality as deviant sexual behavior. "It's hurtful for us to hear such things," he said.

Donny said that despite these discriminatory laws and bylaws, Indonesia also had several other regulations guaranteeing protection and equality for members of the LGBT community. The country has also ratified the 2005 International Covenant on Civil and Political Rights, which nullifies prohibitions on homosexual behavior.

However, Donny said the implementation and enforcement of these regulations by the authorities was far from perfect.

Graft & corruption

Female bribers test women's role in fight against corruption

Jakarta Post - May 31, 2011

Jakarta – Recent graft scandals implicating women have challenged the notion that women are less corrupt than men, but women's role in corruption eradication remains important, activists at a seminar say.

Two hundred people, most of them women, gathered to discuss women's role in corruption eradication in a seminar hosted by the Women's Empowerment Foundation and Wadah Titian Harapan Foundation recently.

The seminar featured four speakers: Corruption Eradication Commission (KPK) deputy chairman Bibit Samad Rianto, Surakarta Mayor Joko Widodo, Transparency International Indonesia secretary-general Teten Masduki and Women's Empowerment Foundation official and University of Indonesia lecturer Ani Widyani Soetjipto.

The speakers emphasized the important role of women in creating a corruption-free society. Ani said women could have both positive and negative influences in the struggle to eradicate corruption.

More men perpetrate acts of corruption, leading to assumptions that women are less likely to be corrupt and that their role as homemakers could be leveraged to produce a new generation of people of integrity who would abide by principles of good governance, Ani said.

"However, research shows no correlation between the increasing participation of women and a reduction in corruption," she said. "Corruption knows no gender distinction. Anyone can be corrupt."

Ani cited cases involving women, such as Artalyta Suryani, a businesswoman who was convicted in 2008 for bribing a prosecutor.

The case of Nunun Nurbaeti, the businesswoman allegedly involved in the distribution of traveler's checks to legislators during the 2004 election of Bank Indonesia senior deputy governor, was also an example of women implicated in graft cases.

The assumption was faulty, Ani said, because women had little public presence and little access to the power required to undertake acts of corruption. Now, more women are involved in public activities, meaning they have more opportunities to commit corruption.

Bibit identified three pillars in corruption prevention efforts: bureaucracy, business sector and society. He said prevention efforts such as anticorruption campaigns through bureaucracy reform and sustainable education on anticorruption from an early age was very important.

"Integrity can't be formed all at once. It should be formed from an early age in the home, school, neighborhood and workplace, which means the role of women as mothers, wives or coworkers is a dominant force," he said.

Teten said the struggle against corruption was one of many steps leading to good governance. "What should be addressed in the anticorruption movement is the impact of corruption itself," Teten said. Women remain the group most affected by corruption, he added.

Ani agreed, saying graft reduced budget allocations for welfare, such as education, healthcare and basic services, which were tied to the daily life of women who play different roles in private, public and community environments at once.

"Corruption also leads to negligence of human rights and the rise and spread of organized crime such as human trafficking, where almost all victims are women," Ani said. (rcf)

Police to close doors in corruption crack down

Jakarta Globe - May 30, 2011

Farouk Arnaz – The National Police have a new plan to restrict the use of case brokers in attempts to crack down on pervasive corruption – limiting access to police headquarters.

The new initiative – which essentially involves closing about 10 doors – was announced by Comr. Gen. Nanan Soekarna, deputy chief at the National Police.

"We need scrutiny," Nanan said. "We're not robocops or angels. Journalists, plaintiff and legal advisors, don't tempt our member or ourselves with bribery."

Nanan said police would restrict access to National Police headquarters by limiting entry to just one point, so it could be recorded who entered and exited the building. The Corruption Eradication Commission had a similar system, he said.

The National Police are perceived to be one of the country's most corrupt institutions and riddled with case brokers, who act to negotiate deals between criminals and police.

Insp. Gen. Mathius Salempang, the National Police's deputy chief of detectives, said limiting access to police headquarters deserved special attention. Asked by reporters when the National Police aimed to be free of corruption, Nanan answered, "The sooner, the better."

Procurement questions clip Merpati's wings

Jakarta Post - May 26, 2011

Nani Afrida, Jakarta – A lack of transparency surrounding the procurement of 15 passenger aircraft produced by China's Xi'an Aircraft Company (XAC) has led to allegations of misconduct by the government and state-owned Merpati Nusantara Airlines. The Jakarta Post's Nani Afrida explores the issue.

Merpati Nusantara Airlines, which takes the first part of its name from the Indonesian word for dove, serves many remote cities in eastern Indonesia – an area ignored by most of the nation's carriers.

However the state-owned airline had a handful of feathers plucked from its wings after one of its Chinese-made MA-60 planes plunged into the sea while landing in West Papua on May 7, killing all 27 people on board.

Although the National Transportation Safety Committee is still investigating the crash, critics are questioning the quality of Merpati's Chinese-made MA-60s, which now account for the largest part of the airline's fleet. Top politicians have been quick to join in, alleging that there were irregularities in how the government and the airline procured 15 MA-60 aircraft from China's Xi'an Aircraft Company (XAC).

Meanwhile other critics have claimed that officials and the airline inflated the cost of the aircraft – and used international politically wired brokers who traded the procurement for loans to build power plants.

Former vice president Jusuf Kalla first ignited the controversy when he alleged that one minister, later identified Trade Minister Mari Elka Pangestu, was obstinate and forced the government to approve the purchase of the Chinese-made aircraft.

"I even scolded the minister for being too pushy in nailing the deal," Kalla said, recalling a meeting in his office when he was vice president. Mari has denied the allegation. Mari has denied the allegation.

The proposal to buy the aircraft was widely opposed at the time on fears that it might disrupt the financial health of Merpati, which had been struggling to keep its head above water in a sea of debt.

Other critics claimed that the procurement was poorly conceived as XAC was a relatively new company and its MA-60 aircraft had a poor safety record, as evidenced by deadly accidents in the Philippines and Africa.

Despite concerns, Merpati signed a contract with XAC in June 2006 to buy 15 MA-60 aircraft for US$232 million. Funds for the purchase were provided by a subsidiary loan agreement (SLA) provided by the Export-Import Bank of China (China Eximbank).

The price was deemed expensive. Merpati paid $15.46 million per aircraft, while Nepal purchased two identically equipped MA-60s from XAC for $11 million per aircraft around the same time – and was given a third aircraft for free. XAC also reportedly sold an MA-60 to Zimbabwe for $11 million.

Suspicious of cost inflation, the State-Owned Enterprises (SOE) Ministry asked the State Development Comptroller to audit the procurement in March 2010. The watchdog recommended in April that Merpati renegotiate the procurement, determining that the airline had paid too much for the aircraft.

The airline complied, and in April negotiated a reduced price for the aircraft of $12 million per unit, while the SLA was reduced to $220 million. Merpati pays the Indonesian government 3 percent interest on the SLA, while the government pays 2.5 percent interest to China Eximbank.

"The final (SLA) loan scheme for buying the planes was set at $220 million. Why did it become so expensive?" Kalla said. He said Merpati officials told the government the price for each aircraft would be $12 million, meaning that a loan of only $180 million would be needed to buy 15 planes.

While Kalla refused to speculate on which officials were behind the contract negotiations, legislator Epyardi Asda said he believed politically wired lobbyists brokered the deal despite opposition at the House of Representatives. Epyardi said he had been monitoring the deal since his tenure on the House of Representatives' Commission VI overseeing state companies and trade and industry between 2004 and 2009.

The legislator currently sits on House Commission V overseeing transportation and infrastructure. "We were questioning the reasons behind the MA-60 purchase back then because of safety concerns. We preferred that other manufacturers, including PT Dirgantara Indonesia, provide the aircraft instead," Epyardi, who is supported by the United Development Party (PPP), said.

Epyardi alleged that one member of the Cabinet between 2004-2009 was engaged in the first round of negotiations for the deal.

State-Owned Enterprises workers union chairman Arief Puyuono, also a Merpati employee with 20 years of service, recently alleged that two businessmen, who he identified as "MS" and "AH", and a presidential special staff member he identified as "JW", played the largest roles in negotiating the contract.

He also said Mari was aware of the trio's lobbying efforts, something the Trade Minister denied on sidelines of a Cabinet meeting last week. "There will be explanation. Many people are involved in this issue, so just wait. I also did not have any role in the negotiations," Mari said.

According to Arief and Epyardi, MS was a "field operator" who was connected to AH and JW. Arief said MS had jury-rigged the inflated price for the aircraft by including items such as training, additional equipment and aircraft simulators in the SLA loan scheme.

"Usually those items are free of charge because they are included as one package. If we had to pay additional costs, the price would have been less than $1 million," Arief said.

MS, JW and AH also allegedly used Merpati's procurement of the MA-60s as part of a deal for Chinese loans to build 10,000 megawatt power plants in Indonesia.

The loans were put on hold in 2009 after Merpati said it wanted to cancel the MA-60 purchase. The row was settled in mid-2009 after then coordinating economic minister Sri Mulyani Indrawati flew to China to renegotiate the settlement.

"Before flying to China, Sri Mulyani was furious after learning that the President had ordered the purchase of the MA-60s even though he fully understood the decision would harm Merpati's financial condition," a legislator aware of the deal said, declining to be named.

Merpati president director Sardjono Jhony, who took over in Ma 2010, denied that there was any pressure behind the purchase.

"We considered the MA-60 because it was suitable for our operation – and we also received a SLA from the government, with lenient terms. XAC is also good company. The parts and other equipment are from Europe. So the MA-60 is very safe and reliable," he said.

MA-60: Aircraft procurement timeline

Procurement assessment:

2002 - Xi'an Aircraft Company (XAC) promotes the MA-60 to the Indonesian market.

2005 - During the 7th international Indonesia-China joint commission meeting on economics, trade and technical cooperation in Beijing, China, the Chinese government agrees to provide concessional loans for the purchase of MA-60s.

Sep. 14, 2005 - The operational director of state airline Merpati Nusantara Airlines conveys interest and seeks procedures to the Chinese Embassy in Jakarta for the aircraft purchase.

Nov. 24, 2005: Merpati president director Hotasi Nababan signs a memorandum of understanding (MoU) with XAC executives for the purchase.

Procurement process and contract:

March 3, 2006 - Merpati president director Hotasi Nababan asks the State- Owned Enterprises (SOE) Ministry to approve the company's business plan to buy 15 MA-60s. The ministry is expected to follow up on the request with the National Development Planning Agency (Bappenas) and the Finance Ministry.

March 22, 2006 - Merpati president director Hotasi Nababan requests an approval from the SOE Ministry to take advantage of the concessional loans provided by China to purchase the 15 planes.

May 9, 2006 - The Transportation Ministry validates the airworthiness of MA-60 aircraft.

Jun 7, 2006 - Merpati signs a contract with XAC to buy 15 MA-60s worth US$232 million.

Sep. 27, 2006 - Merpati's board of commissioners supports the procurement using the concessional loan facility. The SOE ministry also grants its approval. The loan will have a maturity period of 15 years, with a 3-year grace period and 3 percent annual interest rate.

Nov. 28, 2006 - XAC and Merpati sign a MoU to lease two MA-60s to Merpati.

May 22, 2007 - Bappenas approves the financing of the MA-60s through a subsidiary loan agreement (SLA) worth $232 million provided by the Chinese government.

Jun 28, 2007 - The SOE minister approves the Bappenas proposal for the SLA.

Aircraft delivery and operation:

Aug. 28, 2007 - Two MA-60 leased aircrafts arrive. Merpati signs the certificate of acceptance.

Aug. 19, 2008 - XAC announces to Merpati the procurement contract has been in effect since Aug. 5.

May 8 and Aug. 12, 2009 - Merpati technicians find some cracks on the vertical tail (rudder) of the leased MA-60s. XAC then fixes the problem, with the Chinese civil aviation authorities providing a security and safety guarantee.

Price evaluation and contract review:

Jun. 7, 2006 - Initial contract states that the price of the MA-60s, including costs for supporting equipment – airborne equipment, buyer's optional equipment, training devices and training for crew and technicians – is set at $14.1 million per unit.

2008 - State asset management company PT Perusahaan Pengelola Aset (PPA), tasked with restructuring ailing Merpati, reviews the aircraft price. The PPA believes the price should be between $11 million and $12.5 million per unit, including costs for facilities and equipment.

Sep. 4, 2008 - Merpati president director Bambang Bhakti asks the vice president, the finance minister and the Bappenas chair to revise the loan agreement from a purchase to a lease.

Aug. 5, 2008 - Indonesia and China sign a government concessional loan agreement for the procurement of aircraft. Indonesia is represented by the Finance Ministry while China by the Export-Import Bank of China.

Aug. 27, 2008 - XAC insists the contract continue, and says it is ready to deliver the remaining 13 MA-60 aircraft.

Sept. 8 and 12, 2008 - Exim Bank of China sends a letter to the vice president and the finance minister requesting the acceleration of the SLA process for the MA-60 purchases.

Sept. 24, 2008 - The SOE Ministry sends a proposal to the Finance Ministry, Bappenas and the Office of the Coordinating Economic Minister to renegotiate the purchasing contract, covering the price, the aircraft condition and the SLA composition, which will comprise a 50 percent loan from China while the remaining will come from the state capital participation scheme (PMN).

Oct. 16, 2008 - XAC asks Merpati to halt operating the leased MA-60s following the contract uncertainty. XAC says if Merpati refuses to comply the company will file the case with the international arbitrate in Singapore.

Renegotiation:

Nov. 13, 2008 - XAC receives reports from Merpati's restructuring team of the company's financial woes, asking to revise certain terms and conditions in the purchasing contracts that will enable Merpati to purchase and operate the MA-60s.

Nov. 14, 2008 - XAC reminds Merpati it is ready to deliver the 13 aircraft.

Dec. 16, 2008, March 19 and April 15, 2009 - Indonesia renegotiates the purchasing contract with its Chinese counterparts.

April 24, 2009 - Renegotiation reports:

Merpati requests a gradual delivery time in line with pilot recruitments. XAC and the Chinese government agree to deliver the planes starting in September of 2009.

Merpati requests more capital for aircraft procurement worth $68 million to guarantee the company's operational sustainability. It says the aircraft price is too high. But, XAC believes otherwise.

Merpati proposes the possibility of a fixed-rate interest loan and payment in yuan-rupiah exchange. China considers extending the loan maturity to 20 years from 15 years.

Merpati asks XAC and the Chinese authorities to issue a performance and buyback guarantee related to aircraft performance.

Aug. 26, 2009 - The SOE Ministry agrees with Merpati's business plan and loan restructuring.

March 23, 2010 - The SOE ministry requests the State Developmen t Comptroller (BPKP) to audit the MA-60 procurement.

April 9, 2010 - The BPKP issues several recommendations:

Renegotiate the contract price.
Seek a guarantee from XAC for aircraft damages for ten years.
All correspondence should be attached with the purchasing contract.

April 16, 2010 - Merpati and XAC amend the purchasing:

XAC provides spare-part and components guarantees, including airworthiness certifications for 25 years.
XAC provides a buyback guarantee based on the latest book value of the aircraft should Merpati stop operating the aircraft due to failures in design or in the fabrication process that cannot be repaired by XAC.
The price is set at $11.2 million per unit, excluding additional costs for optional equipment requested by the buyer. The total price is set at $12 million per unit.

April 7, 2010 - Merpati, XAC and state aircraft producer PT Dirgantara Indonesia sign a MoU on maintenance, repair and training for pilots and technicians.

April 7, 2010 - The Transportation Ministry issues a safety certification for MA-60s.

April 16, 2010 - The SOE ministry and state airline Garuda Indonesia, as Merpati shareholders, approve the loan for the MA-60 purchases.

Source: SOE ministry

Former top officials involved in the deal:

Former vice president Jusuf Kalla
Former state-owned enterprises ministers Sugiharto and Sofyan Djalil
Former chairperson of the National Development Planning Agency (Bappenas) Paskah Suzetta
Former finance minister Sri Mulyani Indrawati
Trade Minister Mari Elka Pangestu
Former transportation minister Jusman Syafii Djamal

Evidence lacking to probe companies linked to Gayus fortune, police say

Jakarta Globe - May 24, 2011

Farouk Arnaz – The National Police's chief detective said on Monday that there were no plans to probe firms linked to alleged bribes paid to Gayus Tambunan despite questions lingering on how the former taxman amassed his fortune.

Even though it has been more than a year since investigations began, Comr. Gen. Ito Sumardi said the police had not yet determined how the graft convict came to have more than Rp 100 billion ($11.7 million) in his personal accounts.

"We haven't been able to unravel where it all came from," he said. "There is insufficient evidence against the people and companies linked to this case. "Before naming suspects, we must have concrete evidence. We cannot name suspects just because of his testimony."

During the Gayus investigation, the former middle-ranking tax official told police that most of his wealth came from providing services to as many as 44 companies, including miners Kaltim Prima Coal, Arutmin and Bumi Resources, which are linked to the family of Golkar Party chairman Aburizal Bakrie.

Gayus was arrested in February 2010 after police found Rp 28 billion in his bank accounts. The equivalent of Rp 74 billion in foreign currency and gold ingots were also found in one of his bank safe-deposit boxes.

However, after he was convicted for graft in January, Gayus recanted his testimony and alleged he had been pressured into making the claims against the Bakrie Group companies by Denny Indrayana, a presidential adviser and member of the Judicial Mafia Eradication Task Force.

Gayus was sentenced to seven years in jail after being found him guilty of bribing police officers and a judge to help him secure an acquittal in an embezzlement trial in 2010. Three years were added to his sentence on appeal.

Following the conviction, President Susilo Bambang Yudhoyono ordered an extensive probe into the affair, including into Gayus's suspect wealth.

Police have been working with the Financial Transaction Reports and Analysis Center (PPATK), State Development Finance Comptroller (BPKP), Corruption Eradication Commission (KPK), Judicial Mafia Eradication Task Force and Attorney General's Office on the Gayus case.

Gayus still faces charges in two other trials, one for allegedly bribing his way out of a police detention facility in Depok during his trial and another for allegedly using a falsified passport to exit the country.

It is believed Gayus left the Mobile Brigade (Brimob) detention center on at least 68 separate occasions, including for trips to Macau and Singapore last year on the forged passport.

Antigraft advocates argue for KPK chief Busyro to serve full term

Jakarta Globe - May 24, 2011

Ulma Haryanto – Antigraft activists testified on Monday that Busyro Muqoddas should serve out the full four years as head of the anticorruption commission, rather than the one year mandated by legislators.

Saldi Isra, a constitutional law expert from Andalas University in Padang, told the Constitutional Court that the 2002 Law on the Corruption Eradication Commission (KPK) clearly stated that the elected chairperson must serve a four-year term.

He added that if the House of Representatives, which selected Busyro to the KPK, had meant for him to serve in a caretaker role to round out the previous chairman's term, then it should have stated so explicitly.

In that case, Saldi said, the House should have given the post of chairperson to the candidate with the next highest number of votes in the previous selection process. "They shouldn't have held a new selection process and chosen Busyro," Saldi said.

He was testifying in the judicial review of Article 34 of the KPK Law, which states the antigraft chief may only serve a single four-year term.

Busyro was selected as chairman of the antigraft commission by the House in November, but legislators insisted he would only be serving out the remaining one year left in the tenure of former chairman Antasari Azhar, who was in March 2010 convicted of murder.

In between Antasari's suspension and Busyro's appointment, the KPK was headed by a presidentially appointed caretaker.

"If you read the text of the article, it's clear that [the KPK] leadership has a four-year tenure," Saldi said. "Whoever he is and whenever he is appointed, he has to serve for four years."

He added that if Busyro was made to serve only one year and thus step down at the same time as the four deputies selected alongside Antasari, that would effectively mean the entire KPK leadership had been selected as a single entity, thus undermining its independence.

"As an independent agency, its leaders should not be under the influence of any regime or executive agencies," he said. "I want to recommend this kind of independency to other independent bodies such as the KPU [General Elections Commission]."

Erry Riyana Hardjapamengkas, a former KPK deputy chairman, also testified that he believed Busyro should have been given a full four-year term as chairman, arguing this would ensure continuity in the commission's work.

"The sustainability [of investigations], the human resources work and the Rp 1.6 billion [$190,000] spent on Busyro's selection process should not be wasted just like that," he said. "Whoever is elected, they should serve in full."

After the hearing, Erry told reporters that when his own tenure ended in 2007, the handover to the incoming leadership consisted of only a handful of meetings.

"But such a forum isn't enough because the KPK handles so many difficult cases and the new leadership might not be aware of certain dynamics or other developments," he said.

War on terror

Suspects in police murders 'are JI'

Jakarta Globe - May 27, 2011

Farouk Arnaz – The specter of an active Islamic terror campaign in Indonesia resurfaced on Thursday as police revealed that two suspects seized hours after a deadly attack on a police post were believed to be part of the Jemaah Islamiyah network.

The two were arrested on Wednesday evening, just hours after four men on motorcycles attacked a police post in Palu, Central Sulawesi. Two men sprayed the post with bullets, killing two officers and wounding a third.

Central Sulawesi Police Chief Brig. Gen. Dewa Parsana did not provide the full identities of the two suspects but said they were found to have links to Jemaah Islamiyah, the regional terrorist network blamed for the 2002 Bali bombings that killed 202 people and a string of other bomb attacks in the country.

The pair were found with three weapons, Dewa told a news conference on Thursday afternoon. "We seized their motorcycle and three long-barreled firearms," he said. "They are the main perpetrators.

"It is now confirmed that their motive was terrorism when they attacked our officers, whom they consider infidels. They have ties to Jemaah Islamiyah." He added that the police were now "pursuing their network."

Dewa did not provide details on the links between the two detained suspects and the regional terrorist network. However, Palu and other areas of Central Sulawesi were the scene of intense sectarian violence between 2001-02, when Muslims and Christians fought each other, leaving some 1,000 people dead.

Sporadic violence has continued to flare up in the area despite a negotiated truce in 2002. The province, especially the districts of Palu and Poso, is still believed to be home to Muslim militants and hard-liners, including members of Jemaah Islamiyah.

In Wednesday's attack, four men on two motorcycles, their faces hidden behind full helmets, parked near a police post next to a bank office in Palu late in the morning. Two men dismounted and riddled the post with bullets before fleeing the scene. Two policemen inside the post died of gunshot wounds. A third officer was shot in the thigh but survived.

National Police spokesman Sr. Comr. Boy Rafli Amar said the three firearms seized from the two arrested suspects were an Enfield Jungle Carbine, an M16 automatic rifle and a V2 assault rifle that had belonged to one of the two slain officers. "We seized these weapons, along with a magazine containing 25 rounds," he said.

Boy said the two suspects, who were identified only as H., 26, and F., 23, were arrested after they later shot at police officers manning a roadblock in southern Palu. Two other suspects, who were believed to be with them, managed to escape. Police have not said whether they have identified the two suspects still on the run.

Following arrest, police charge six NII members

Jakarta Globe - May 25, 2011

Farouk Arnaz – The National Police on Wednesday officially charged six Islamic Indonesian State (NII) members that were detained in Central Java on Monday evening.

"The six people were detained at the Central Java Police Headquarters on subversion article after they were questioned on Tuesday, " National Police spokesman Chief Comr. Boy Rafli Amar said.

He identified these six peoples as TDH, a NII Governor in Central Java; N.B, a communication head section; SP, a human resources head section;.M.A S, a treasury; SL, a logistic head section along with his subordinate MR.

On Tuesday, National Police General Crimes Chief Brig. Gen. Agung Sabar Santoso said that some of them have been on West Java Police's wanted list since 2008.

"They have links to the NII members previously detained by the West Java Police, despite the fact that the group resided in Ungaran, Central Java. We nabbed them on Monday evening," Agung said.

Bashir uses final defense to blast 'US influence'

Reuters - May 25, 2011

Olivia Rondonuwu – Islamist cleric Abu Bakar Bashir used his final defense against charges of funding a militant group on Wednesday to denounce the United States for trying to stop Islamic preaching in Indonesia.

Prosecutors are seeking a life sentence for the frail Bashir, 72, who delivered a speech in a piercing voice accusing the government of of being under strong US influence.

Bashir does not command widespread support in Indonesia, but the speech could inflame hardcore Islamists who have already vowed reprisal attacks following the US killing of Al Qaeda chief Osama bin Laden.

Prosecutors said Bashir raised at least Rp 350 million ($41,000) from supporters and funneled some to a militant training camp discovered last year in a remote mountainous part of Aceh.

"Prosecutors accused me of being behind Aceh and being its biggest financier – it is an accusation and slander, with the interests of the pharaoh US for me to be diminished from Indonesian society," Bashir told the South Jakarta court.

"Because my preaching is considered dangerous, and with this lifetime of jail, the dream of the pharaoh US and its allies will come true."

Copies of the 55-minute speech were being sold at the court for Rp 20,000, with a form attached to join Bashir's group, Jema'ah Ansharut Tauhid, which has formally renounced violence but whose members have been involved in recent attacks including a suicide bombing at a police mosque on Java island.

Days prior to the trial, his followers invited people with text messages to attend "Bashir's Islamic lecture" in court.

Hundreds of men in skull caps and women in burqas arrived, filling the public gallery and spilling into the court car park to watch it on television. With fists in the air, they shouted "Allahu akbar," or God is greatest".

Police, who have scored success in tackling terror groups in recent years, say militants at the Aceh camp were hatching several plots including an attack on President Susilo Bambang Yudhoyono, and hoped to turn Indonesia into an Islamic state.

As well as being the spiritual leader of JAT, Bashir was considered the spiritual leader of the outlawed and now-defunct Jemaah Islamiah, which police have blamed for several bombings including the country's worst ever militant attack, the 2002 Bali bombings that killed 202 people. A verdict is not due until June.

Radical & religious extremism

Eight state institutions agree to promote Pancasila

Jakarta Globe - May 24, 2011

Camelia Pasandaran & Arientha Primanita – In response to rising radicalism in Indonesia, the heads of eight state institutions agreed to strengthen Pancasila within the country.

"All state institutions should commit to actively strengthening Pancasila as the nation's ideology according to their specific roles, positions and authorities," the head of the Constitutional Court, Mahfud MD said, reading a joint statement issued by the president, vice president, the Constitutional Court, People's Consultative Assembly, House of Representatives, Regional Legislative Council, Supreme Court, Supreme Audit Agency and Judicial Commission.

"We need a national action plan for certain institutions to socialize and strengthen Pancasila values formally through education," he said.

Mahfud said the people in Indonesia had put aside the state ideology of Pancasila. "As a result, in the middle of the nation's achievements, mainly on political democracy in the reformation era, some problems threatening the national pillars have surfaced," Mahfud said.

"Conflict and social violence are easily triggered by ethnic differences, primordialism, and religious [differences]. The tolerance that had been the original character of the nation is now fading caused as a result of thought penetration and individual pragmatic actions."

To solve the problems threatening peace and stability in Indonesia, the leaders aimed to strengthen the teachings of Pancasila. "The values of Pancasila should be revitalized as the guiding star as well as spirit that flow through every attitudes and activities of all nation's elements in their respective position, status and profession."

Agriculture & food security

Liberalisation leading to foreign control of food sector

Kompas - May 25, 2011

Jakarta – Foreign penetration through multi-national companies in the food sector is increasing and spreading. Foreign companies in Indonesia don't just control trade, but have spread into upstream activities such as agricultural production, covering seed and medicines, through to the processing, packing, trade, transportation and the retail industry.

This was revealed by research professor Husein Sawi from the Agricultural Department's Agricultural Research and Development Agency on Tuesday May 24 in Jakarta.

Husein said that liberalisation in the trade and industrial sector had provided an opportunity to foreigners to increase their markets in Indonesia, as well as other developing countries. "They have moved like a single packet. As soon as liberalisation opened up they took control of every line", he said.

Initially they went into trading. In order to guarantee the supply of goods, they then moving into production. In order to increase the volume of production, they took control of the seed industry and created a dependency.

If that was not enough, they moved further into processing industries though the acquisition of national companies. In order to ensure that their products sold, foreign companies have got into the retail sector.

The agricultural input industries are supplied by only 10 multi- national companies (MNC) with a sales turnover of as much as US$40 billion [annually]. Five of biggest of these companies are Syngenta, Monsanto, Bayer Crop, BASF AG and Dow Agro.

Conversely, farmers still depend on the processing industries and food traders. Ten big MNCs control food sales valued at US$409 billion including Nestle, Cargill, ADM, Unilever and Kraft Foods.

Indonesia has fallen into the grip of the global network of MNC, particularly the largest ones such as Nestle, which controls the global cocoa trade, Cargill that controls the livestock feed trade and Unilever, which controls processed food.

The world's food retail sector is also controlled by MNC such as Wal-Mart, Metro Group, Tesco, Seven & I Holdings and Carrefour.

Husein revealed that many local food products have been sold to foreign companies such as Danone (France), Unilever (Holland), Nestle (Swiss), Coca Cola (US), HJ Heinz (US), Campbell's (US), Numico (Holland) and Philip Morris (US).

Agricultural Minister Suswono revealed earlier that the politics of agro-industry policies in Indonesia are controlled by a particular group, which has strong access and lobbying powers, not just within the government, but also in the legislator.

[Translated by James Balowski.]

Land disputes & evictions

AI urges government to resolve Jambi's shooting incident

Jakarta Post - May 27, 2011

Bagus B. T. Saragih, Jakarta – London-based human rights group Amnesty International is urging the government to resolve the shootings, allegedly fired by police officers, against palm fruit farmers in Jambi.

"We urge the Indonesian authorities to initiate a prompt, independent and impartial investigation into the reported unnecessary and excessive use of force," Josef Roy Benedict, Amnesty's campaigner for Indonesia, said Friday in a statement received by The Jakarta Post. "Take measures to ensure that those responsible are brought to justice in fair trials and the victims receive reparations."

Amnesty also called for an independent police complaints mechanism by the National Police Commission (Kompolnas). "The police internal affairs division is currently investigating the incident but we are not aware of any progress on the case," Josef said.

In January, Police Mobile Brigade (Brimob) officers in Karang Mendopo village, Sarolangun regency, opened fire on a group of palm fruit farmers, critically injuring six of them. The shootings took place amid a land dispute between the farmers and a palm oil company PT Kresna Duta Agroindo, which has been ongoing since 2006.

About 30 Brimob officers, who attempted to evict the farmers, confronted them and fired warning shots into the air as the farmers refused to leave. As the farmers fled in panic, the police reportedly opened fire on them with rubber bullets hitting six farmers in the face, thigh, stomach and back.

Following the incident, seven other villagers were arrested and questioned. They were later released without charge.

It was not the first alleged excessive use of force in Jambi. In April 2010, an oil farmer in Teluk Rendah, Tebo Ilir district in Tebo regency, Jambi, allegedly suffered a gunshot in a clash between farmers and palm oil company PT Tunjuk Langit Sejahtera.

Legislation & parliament

Lawmaker refuses to publicly apologize for calling leaders 'budget crooks'

Jakarta Globe - May 31, 2011

Markus Junianto Sihaloho – National Mandate Party (PAN) Lawmaker Waode Nurhayati on Tuesday said she would not publicly apologize to leaders of the House of Representatives for calling them "budget crooks."

Waode said she was willing to privately apologize to House Speaker Marzuki Alie, as he is her senior. "However, if I am asked to apologize on [television show] 'Mata Najwa', I'm going to have to reconsider," Waode said.

During a live interview on Metro TV's "Mata Najwa", Waode claimed she had plenty of evidence that House leaders had tampered with budgets. She accused the finance minister, the heads of the House Budget Committee, and the House leaders of being "budget brokers."

House Speaker Marzuki Alie has reported Waode to House Ethics Council and demanded that the PAN lawmaker publicly apologize on the television. "If she said it before on Mata Najwa, she can at least also apologize there," Alie said on Monday.

House ethics council dismisses three lawmakers

Jakarta Globe - May 31, 2011

Anita Rachman – The House of Representatives' Ethic Council has finally dismissed three lawmakers found guilty of various corruption crimes.

Izzul Islam from the United Development Party (PPP), As'ad Syam from Democratic Party and Mukhamad Misbakhun from the Prosperous Justice Party (PKS) were dismissed on Tuesday.

"Those three are just some of them. But there are 10 or more lawmakers whose fates have yet to been decided" said Nudirman Munir, the deputy chairman of the ethics council.

Izzul was charged with diploma forgery, As'ad was convicted in a corruption case, and Misbakhun is guilty of falsifying documents while serving as a commissioner for PT Selalang Prima Internasional in order to obtain a line of credit from Bank Century.

Dudhie Makmun Murod, former the Indonesian Democratic Party of Struggle (PDI-P) lawmaker who was given two-year prison time for receiving bribery money during the 2004 Bank Indonesia election, had submitted his resignation letter last week following instruction from his party.

Meanwhile, the council has started investigating Muhammad Nazaruddin and Angelina Sondakh, two members of the Democratic Party allegedly implicated in a corruption scheme over the Sea Games bribery scandal.

Nudirman said that the Council will start calling witnesses and it will take action on all the ethic violations, while the legal status would be given to the hands of the law enforcement.

Marzuki leaves door open for office tower plan's revival

Jakarta Globe - May 26, 2011

Anita Rachman – Although House Speaker Marzuki Alie has suspended all activities related to the construction of a new legislative office building, the project has not been completely dropped and may still come to fruition.

Just two days after announcing that the House was suspending the construction plan, Marzuki said on Wednesday that "we need room," bringing up the possibility that the project will be revived.

"My guidance is the strategic plans, that we need room. Whether we are going to be placed underneath the stairs or somewhere, just as long as we have room," he said.

Although he did not specifically say a new building was still in order, Marzuki pointed out that the current legislative building had its flaws. "We understand that there have been cracks in Nusantara I," he said. "That is the result of a Public Works Ministry study from April 2011."

He said the cracks were caused by natural wear and tear. "First, the building is overloaded because the capacity is for 800 people, but it is being filled by 2,500," he said. "Second, the construction is not good enough."

After meeting with the Ministry of Public Works on Monday, Marzuki said the House was suspending all ongoing activities related to the construction of the new building. The tender prequalification phase was also canceled, and he said it would depend on the House's Household Affairs Committee (BURT) whether the project would be continued in the future. House members have argued that they need more room since they plan on having five advisers and one personal assistant for each lawmaker.

Separately, the House deputy speaker from the Prosperous Justice Party (PKS), Anis Matta, said the decision was not yet final. Monday's meeting with the Public Works Ministry was only a consultation meeting.

The result of the meeting will be taken to the BURT and House leaders. Anis said House leaders had not scheduled a meeting to follow up on the results of Monday's meeting, though he conceded that the House did need a new office building.

Ade Irawan from Indonesia Corruption Watch said Marzuki's statements showed that he wanted to wash his hands of the case.

Ade said that even if research showed there were cracks, what the House needed was just a renovation, not a new building. "The House must decide soon and announce it officially," he said. "They need to cancel the plan."

Jakarta & urban life

Veterans battle city over Semanggi closure

Jakarta Globe - May 28, 2011

Ronna Nirmala, Zaky Pawas & Arientha Primanita – They may have fought bigger battles when they were in uniform helping Indonesia gain independence from the Dutch or battle domestic insurgencies, but a group of veterans are no less impassioned about their current struggle: trying to force Jakarta to reopen an entrance into a South Jakarta shopping mall they control that was closed months ago in a bid to ease traffic congestion.

This time the aged veterans have taken to the barricades in a different way, sporadically removing the barriers put up last September to prevent motorists from turning left into Plaza Semanggi from Jl. Gatot Sabroto. City officials said the left turn into the mall, which was also a popular shortcut for those heading north toward Jl Casablanca, made traffic worse.

But the veterans, who earn money from the rental of the land and its buildings by the Lippo Group's shopping mall division, say the traffic diversion is cutting into mall revenues so severely that their income is threatened. Mall shopkeepers say their business has fallen by as much as 60 percent since traffic was rerouted.

So this past week the old warriors fought back by removing the traffic barriers at least twice and liberating the traffic.

Shoppers and nearby residents were delighted since the traffic diversion has added as much as an hour's travel time at peak hours for those needing to access Palaza Semanggi or the roads behind it from South Jakarta.

The battle began in earnest on Wednesday when a group of veterans in full dress uniform held a protest in front of the barriers blocking the entrance, and later removed some of them, reopening access from the west.

The next day, the Jakarta Transportation Office, with police support, put the barriers back in place, but by Friday a small breach had been reopened.

"Its open! It's open!" cried one expat, ordering his driver on Friday afternoon to quickly make the once-familiar turn. By Saturday morning, the barricades were back and the veterans were nowhere to be seen.

H. M. Aziz M., a spokesman for the Indonesian Legion of Veterans (LVRI), said that having gone to war over the barriers they were not afraid of legal reprisals.

Aziz said the organization, which was granted rights to the land by the government in the 1960s, received a steady income from the property, and the closure of the southern entrance had resulted in an earnings decline for both the operator and the Legion of Veterans.

"We allowed Plaza Semanggi to be built here to help our revenue," Azis said. Rais Abin, president of the Asean Organization of Veterans, claimed that Jakarta Governor Fauzi Bowo had been informed of the dispute and had responded by saying the matter was in the hands of the city's transportation office.

"We have twice had discussions with [the transportation office], but there has been no follow-up," he said.

Both Aziz and Rais said they were willing to sign an amicable peace treaty, but they want the city to respect their status and they are not backing down.

"Let's have a discussion like between father and son," Rais said. "We don't ask to be pitied, we only ask to be respected. If you can live free now, it is because of our efforts in the past."

Sr. Comr. Royke Lumowa, Jakarta Police traffic director, said removing the concrete barriers was against the law. "We will reprimand them," he said.

Udar Pristono, head of the transportation office, said the veterans' action violated a 2003 regulation on traffic. He told the Jakarta Globe, which is affiliated with the Lippo Group, that the regulation calls for up to three months in prison or fines of up to Rp 5 million ($585) for illegally removing road separators.

He said the street in front of Plaza Semanggi was city-owned, giving the city the right to install the barriers.

[A. Lin Neumann contributed reporting to this story.]

Trucks free to enter toll road again

Jakarta Post - May 28, 2011

Esther Samboh, Jakarta – After two meetings in as many days, parties backing both sides of Jakarta's ban on trucks on sections of the inner-city toll road agreed to suspend the ban as of midnight Saturday.

All sections of the inner-city toll road, except the heavily congested section from Cawang to Pluit, would be reopened to trucks as of Saturday at midnight until June 10, Coordinating Minister for the Economy Hatta Rajasa told reporters at his office in Jakarta on Friday.

"The police will manage the traffic. If congestion occurs, we will be flexible on the Cawang-Pluit section and [it] might be opened, too," Transportation Minister Freddy Numberi said.

The Jakarta administration previously extended a ban on trucks to four more sections of the inner-city toll road for a month after implementing a five-day truck ban along the Cawang-Tomang section for the 18th ASEAN Summit on May 7-8.

The expanded ban barred trucks from operating between 5 a.m. and 10 p.m. along the sections of the inner-city toll road between Cawang and Tomang, Pluit and Tomang, Cawang and Tanjung Priok, Cawang and Pasar Rebo and Cawang and Cikunir.

The ban was met by a mixed response throughout Jakarta. Some residents reported observing immediate benefits, claiming that the toll road was less crowded and commutes were faster without trucks to slow the pace of traffic.

Some even took to the streets to support the ban, rallying on several days to give moral support to the city administration, which faced a barrage of criticism from the central government, local businesses and truck drivers.

A strike by hundreds of container truck drivers in the Tanjung Priok Port, North Jakarta, on Friday was followed by the triumphant return of their trucks to the toll road.

The drivers, who conducted their strike at Koja Container Terminal 3, demanded that trucks be allowed on all sections of the inner-city toll road. The strike left the port quiet, with only a few trucks spotted.

"By June 10, all related institutions will return here and sit down to evaluate the policy that we all just agreed to test. Then, we will come up with a permanent decision," Hatta said.

The related institutions were comprised of the Transportation Ministry, the Public Works Ministry, the Trade Ministry, the Jakarta Traffic Police, the National Traffic Management Center, the administrations of Jakarta and South Tangerang and the Organization of Land Transportation Owners (Organda), among others.

The results of the evaluation would be taken into consideration for regulations to be developed by the Transportation Ministry and the regional administrations, Freddy said.

Jakarta previously planned imposing a complete ban on trucks traveling on the inner-city toll road to reduce congestion on the city's streets, especially during rush hour.

Container trucks accounted for 30 percent of the vehicles on the toll road during rush hour, according to reports.

Organda chairwoman Eka Sari Lorena – whose organization, along with the Transportation Ministry, opposed the truck ban – said the recent ban on trucks had cost Jakarta's freight distributors Rp 12 billion (US$1.4 million) a day.

"We need to recalculate the potential losses, because our previous estimation was for an overall ban," she said.

Jakarta Governor Fauzi Bowo said all was not lost in the wake of the decision, adding that the city would continue to assess implementing a ban on trucks on sections of the inner-city toll road during certain hours.

"The commitment of all stakeholders must be respected. This is a joint agreement. I just want to remind everyone that Jakarta's Governor was elected by the people of Jakarta. I have a commitment to ensure the prosperity of all citizens, including members of Organda," Fauzi said.

Difficult access and poorly maintained roads have made logistical costs in Indonesia among the highest in the Asia, topping 20 percent of gross domestic product (GDP), compared with 10 percent in Singapore and Japan and 16 percent in Thailand and South Korea.

The Jakarta Police said the return of trucks to the toll roads would likely lead to renewed congestion.

"We tried, but the government thinks otherwise. We have no choice but bow to the pressure, if it's for the sake of the common good," Jakarta Traffic Police chief Sr. Comr. Royke Lumowa said on Friday.

"Residents will bear the consequences and will again face gridlock," he said.

Film & television

Indonesians despair over Hollywood boycott

Agence France Presse - May 29, 2011

Indonesian movie lovers are being starved of the latest Hollywood blockbusters by a drawn-out tax dispute which has led United States studios to boycott the country in protest.

Since the Motion Picture Association (MPA) stopped distributing films to Indonesia in February, cinema takings have tumbled as theatres try to fill the gap with local fare and B-grade foreign films dug out of the rejects bin. Everyone is losing except the sellers of pirated DVDs, who are enjoying a spike in sales.

"Customers are looking for titles like 'Fast Five', 'Black Swan' and 'Thor' because they can't watch them in the cinema," said DVD pirate Yani. "They complain that my videos are low quality and they wouldn't watch them if they had a choice. But I can't complain, business is good."

She said sales had jumped 50 percent since the MPA took the drastic step of cutting off supplies of new Hollywood releases to Indonesian theatres earlier this year.

Meanwhile cinemas are almost empty. One of Jakarta's biggest theatres is showing "Elite Squad", a Portuguese film from 2007, and "My Sassy Girl", from 2008. The newest US offering is "Source Code", released last year.

Indonesian Cinema Companies Union head Djonny Sjafruddin said about half of all movies screened in Indonesia – or about 130 films a year – were imported from the MPA, representing US studios including Warner Bros, Universal Studios and Twentieth Century Fox.

"Money-wise, that translates to 60 to 70 percent of total income of cinemas here," said Sjafruddin, whose union represents 240 cinemas nationwide.

"The MPA's move has clearly hurt us. We've reduced daily screenings from five to four and stopped midnight and weekend screenings. If this problem isn't solved, we may all have to shut down."

The studios are reportedly disputing a 22.5 percent tax introduced in June last year on royalties they receive from the distribution of their films in Indonesia. "The MPA felt it was unjustified. The government said it would resolve the issue but it's taking too long," Sjafruddin said.

Culture and tourism ministry official Ukus Kuswara said the government and MPA had negotiated a "win-win solution". He refused however to reveal any of the details, and in the meantime the movies are still not being distributed.

"Let's just say it's not about the tax figure, but the imposition mechanism. There's a difference in perception but that's been sorted out now," he said, adding that US box-office hits would return to Indonesian screens soon.

The ministry's film department director, Syamsul Lussa, drew fire from frustrated film lovers last week for attending the Cannes Film Festival in France instead of staying to sort out the mess at home. Many wondered sarcastically if he had enjoyed the Hollywood films screened at the prestigious event.

Since the boycott, Indonesians have missed out on Natalie Portman's Oscar- winning performance in "Black Swan", as well as "True Grit", "127 Hours", "Thor" and "Pirates of the Caribbean: On Stranger Tides", among others.

Worse may be yet to come, with "Harry Potter and the Deathly Hallows: Part 2" also likely to be axed, Sjafrudin said. "We lose money and the public are denied their entertainment. Everyone's angry," he said.

A visit to two cinemas in Jakarta last week found fewer than a dozen people buying tickets for "The New Daughter" and "Kung Fu Kid", both released in 2009. "I thought the bigger cinemas would be showing new movies but everything's so old. I'm so upset," said disappointed customer Nenny Triyana, 30.

Irene Ibrahim, 25, said she felt embarrassed for Indonesia. "My friend in Bahrain posted on her Facebook wall raving about "Thor" and I'm here in Indonesia watching the trailer on YouTube. How pathetic," she said.

"The whole world is at film 'A' and we're at 'Z'. I don't care what disagreement they have. All I know is that as a movie fan, I'm left with no choice but to watch bad movies which give me bad migraines."

One cinema manager in Jakarta, who declined to be named, said staff were bearing the brunt of customers' frustrations. "They have yelled at us asking if this means they have to go to Singapore or Australia just to watch a movie," he said.

Indonesia's blogosphere, meanwhile, is seething. "The absence of Hollywood movies is an epic fail in this country," said one blogger, Rizky Danurwindo.

Judicial & legal system

Parties split on changes to Constitutional Court law

Jakarta Globe - May 31, 2011

Anita Rachman & Camelia Pasandaran – The imminent passage of amendments to the 2003 Law on the Constitutional Court could see key changes in the way the country's most highly regarded judiciary functions.

The House Legislation Body said on Monday that among the proposed amendments were an increase in the minimum and maximum age of justices, halving the length of tenure and delegating the authority to hear regional electoral disputes to district courts.

Nurul Arifin, a legislator from the Golkar Party, said there was still no agreement among parties on several points.

"One proposed amendment is to cut the justices' tenure to two and a half years, but Golkar wants it to remain at five years," she said. "Likewise the retirement age. The current law pegs it at 65 years, but we want it extended to 70 years."

The law also puts the minimum age for a Constitutional Court justice at 40, but the House is seeking to raise this to 50 years.

However, Arif Wibowo, from the Indonesian Democratic Party of Struggle (PDI-P), questioned the wisdom of having older justices on the bench. "Is 50 an ideal age for a public official?" he asked.

He also pointed out the need for an ethics council for the court, comprising a member of the Judicial Commission, one justice each from the Constitutional and Supreme courts, a government representative and a House member.

"The establishment of an ethics council will allow for the dismissal of a justice for ethics violations, which the current law doesn't provide for," Arif said.

The House is also mulling relieving the Constitutional Court of the duty to hear election disputes. Subiakto, a legislator from House Commission III, which oversees legal affairs, said that authority should be devolved to district courts, given the sheer number of disputes brought up at each regional poll.

"We consider that regional election disputes really exhaust the resources of the Constitutional Court," he said. "Therefore, one of the amendments being proposed would delegate electoral disputes to district courts."

The Constitutional Court has handled thousands of electoral disputes since taking over that role from the Supreme Court.

Chief Justice Mahfud M.D. has previously called on officials at the local level, including from Regional Elections Commissions (KPUDs) and Regional Elections Supervisory Committees (Panwaslu), to handle the disputes themselves rather than inundate the court with "rubbish cases."

Subiakto said the House deemed it would degrade the court's role if most of its time was spent on discussing regional polling disputes. "Therefore we're seeking the court's opinion on the appropriateness of devolving this authority to district courts," he said.

For his part, Mahfud said he had no objections to the proposal or even to delegating the task back to the Supreme Court. However, Justice Akil Mochtar pointed out that in order to assign electoral disputes to district courts, there would be a slew of legislation required.

"If you want to change it, there are four laws that need to be amended," he told the House. He listed them as the 2004 Law on Regional Governance, the 2008 Amended Law on Regional Governance, the 2007 Law on Elections Organizers and the 2009 Law on Judicial Authority.

Akil added that while transferring the burden of hearing polling disputes would mean a lighter workload for the Constitutional Court, this task should not be shuffled around between institutions so frequently.

"I only want to remind that if you keep transferring the authority, the facilities that have been prepared [to handle disputes] will be rendered useless," he said.

Criminal justice & prison system

AGO says it will still go after teen over Rp10,000 phone card

Jakarta Globe - May 28, 2011

Elisabeth Oktofani& Heru Andriyanto – The Attorney General's Office indicated on Friday that it would continue pursuing a teenager accused of stealing a Rp 10,000 cellphone voucher, despite a recent ruling dismissing the matter.

"We embrace the principle of legality, as long as the crime falls under the criminal charges. This is the theft of phone voucher that falls under the Article 362 [of the Criminal Code]," said Marwan Effendy, the deputy attorney general for internal supervision.

He was commenting on a preliminary court decision rejecting the indictment against Deli Suhendi, 14, and ordered he be cleared of theft charges because, among other things, he was not accompanied by lawyers during the police interrogation.

"For underage children, there are special rules for the trial and detention procedures, but the criminal charges will be the same," the deputy said.

Marwan said unconventional methods to settle controversial cases were often rejected by the Supreme Court if they were against the principle of legality.

"We once used the 'sociological' approach but our decision was overturned by the Supreme Court," he said, apparently referring to the decision by prosecutors to drop charges against antigraft officials Chandra Hamzah and Bibit Samad Rianto last year.

Prosecutors said "it would be morally harmful than beneficial to try the two officials," but the top court ruled such an approach was not recognized by the Indonesian judiciary system.

The AGO's insistence on the trial drew protests from the National Commission for Child Protection (Komnas Anak) for ignoring a regulation that adopts a special approach for children.

"As a prosecutor, Marwan Effendy has violated the 2009 joint ministerial decree on how to deal the children who are in conflict with the law, and if he insists to go through with the case he will set a precedence for other prosecutors," commission chairman Arist Merdeka Sirait said.

"It needs to be considered that there was no aggrieved person who reported this case, but police reported it themselves and there was no Rp 10,000 credit voucher as the evidence for the trial."

Supriyadi Sebayang, a lawyer for Deli, told the Jakarta Globe that the defense was ready.

"Although it is surprising that the prosecutor insists to file the appeal against Deli, we are going to fight against the prosecutor." "The prosecutor's willingness to continue with the case has raised question about the motive behind the action, whether there is a fear toward the investigators [police]?" he said.

"This is not a big case, not worth millions of rupiah, but only Rp 10,000 and there is no aggrieved person."

Foreign affairs & trade

Australia bans cattle exports to 11 Indonesian abattoirs over cruelty

Reuters - May 31, 2011

Canberra – Australia suspended live cattle exports to 11 Indonesian abattoirs on Tuesday and announced a review into the A$320 million ($342 million) trade after graphic footage was broadcast of Australian cattle being inhumanely slaughtered.

"I have decided to halt the trade of live animals to the facilities identified by the footage. I reserve the right to add further facilities to the banned list," Agriculture Minister Joe Ludwig said in a statement.

"I will appoint an independent reviewer to investigate the complete supply chain for live exports up to and including the point of slaughter," he said.

Australian television on Monday aired footage of cattle being beaten, whipped and kicked prior to slaughter in Indonesia, prompting a political outcry.

"It exposed nothing short of shocking cruelty for Australian livestock," said independent MP Andrew Wilkie, whose backing is vital for Prime Minister Julia Gillard's one-seat government.

Wilkie and independent Senator Nick Xenophon on Tuesday unveiled legislation calling for the immediate ban on live animal exports to Indonesia and a full ban of live animal exports to all nations within three years.

"The pictures we saw last night were horrific, and if it was happening here in Australia, those people would be arrested and prosecuted," Xenophon told a news conference.

Wilkie said he understood the sensitivity of diplomatic relations with neighboring Indonesia, an important export market for Canberra and a fellow member of the Group of 20 rich nations, but it was clear there was a "systemic problem with Australia's whole live export industry."

Australia exports about 500,000 head of cattle a year to Indonesia, representing about 60 percent of its live cattle trade.

An investigation by Australian animal rights activists in March found slaughter boxes provided to Indonesian abattoirs by Australia's livestock industry contributed to the inhumane deaths of millions of animals over a decade, using methods barred under Australian and international guidelines.

Agriculture minister Ludwig said it was clear animal welfare reforms in the live export industry had not gone far enough. Indonesia is Australia's 13th largest export partner, with two-way trade worth A$9.8 billion in 2010, with the live animal market being Australia's second most important behind the Middle East.

Australia's previous conservative government banned live cattle and sheep exports to Saudi Arabia between 1991 and 2000 after hundreds of cattle died from heat stress en route to the Persian Gulf. The country's cattle industry has already moved to suspend supply to three Indonesian abattoirs.

Economy & investment

15 percent of subsidized fuel sold to industries

Jakarta Post - May 31, 2011

Rangga D. Fadillah and Esther Samboh, Jakarta – Downstream oil and gas regulator BPH Migas reported Monday that between 10 and 15 percent of the subsidized fuel distributed by the government was illegally sold to industries.

BPH Migas committee member Adi Subagyo said the growing price disparity between subsidized and non-subsidized fuel caused distortions, particularly at gas stations located near industrial and mining areas.

"Illegal activities have increased recently. Almost every day BPH Migas members are summoned by police to give expert opinions on the illegal sale of subsidized fuel," he said via telephone.

Unlike the general public and public transportation firms, businesses are not allowed to buy subsidized fuel to support commercial activities.

The agency announced earlier that the consumption of subsidized fuel in the first four months of 2011 topped 12.9 million kiloliters, exceeding the 12.3-million-kiloliter quota by 5.3 percent.

BPH Migas earlier partly blamed the increase in the use of subsidized fuel on the many motorists who switched from using non-subsidized fuel to subsidized fuel because of the surge in prices.

Currently, the price of non-subsidized gasoline is Rp 9,500 (US$1.10) per liter, more than twice the price of subsidized gasoline at Rp 4,500 per liter.

The government earlier planned to limit the sale of subsidized fuel to private vehicle owners in April this year to help slash the budget deficit. However, the decision was later delayed amid fears that lifting the subsidy would trigger social unrest.

Finance Minister Agus Martowardojo said Monday the delay was not indefinite, adding that the Energy and Mineral Resources Ministry was preparing the most effective way to reduce the sale of subsidized gasoline.

The Energy and Mineral Resources Ministry will conduct a trial of its plan in July through the use of radio frequency identification (RFID) networks at several selected gas stations, ministry director general of oil and gas Evita Legowo said last week.

Under the system, gas station attendants will have information on how much subsidized fuel any vehicle had consumed and how much more the vehicle owner was allowed to purchase.

"The data will be important in determining future policies. This is just a trial, not an attempt to limit the sale of subsidized fuel because the policy has not yet been decided," Evita said.

The acting chief of the Finance Ministry's fiscal policy office, Bambang Brodjonegoro, said the government would resume talks on limiting the sale of subsidized fuel and come up with a decision after the trial in July.

The government and the House of Representatives' Commission VII overseeing energy affairs in April delayed the plan to stop the sale of subsidized gasoline to private vehicle owners, a move that could cost the government Rp 6 trillion in more subsidies and add Rp 13 trillion to Rp 17 trillion to the budget deficit as global oil prices soar.

Indonesia allocated Rp 95.9 trillion to subsidize fuel this year, an amount that local and international observers, including the International Monetary Fund and World Bank, consider too high as they claim the funds would be better used for infrastructure development or for health and education.

Government unveils giant 2025 economic plan

Jakarta Globe - May 28, 2011

Dion Bisara & Faisal Maliki Baskoro – The government on Friday outlined its blueprint for the country's development over the next 14 years, presenting a series of startling numbers, including some Rp 4,000 trillion ($470 billion) in investment and a predicted 550 percent rise in GDP.

The Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI) would see 17 infrastructure projects worth a total of Rp 190 trillion start this year, said Hatta Rajasa, coordinating minister for the economy. The projects are part of the Rp 4,000 trillion investment plan.

Launching the master plan – a part of Indonesia's bid to become one of the world's 12 largest economies by 2025 – President Susilo Bambang Yudhoyono outlined five major obstacles: slow bureaucratic processes, selfish regional governments, investors failing to meet commitments, unfavorable policies and political gridlock.

"We can't predict what will happen 15 years from now," Yudhoyono said. "There are two possibilities, Indonesia can successfully implement this master plan and achieve its goal or it can fail. I am not about to see it fail. "Our future is negotiable and it's up to ourselves and God to change the future."

The master plan foresees per-capita income soaring to up to $16,000 in 2025 from last year's $3,000, and gross domestic product possibly reaching up to $4.5 trillion in 2025 from $700 billion in 2010, when the economy was the world's 17th largest.

"It's impossible to achieve our long-term economic goals without the master plan," Yudhoyono said. "We also can't rely wholly on market mechanisms. The government's role, as a visible hand, is important."

The blueprint is based on six economic corridors, each with specific competitive advantages. Sumatra has been pegged as a center for agriculture and energy, Kalimantan for mining and energy, Sulawesi and North Maluku for agriculture and fisheries, Bali and Nusa Tenggara for tourism and food production, Papua and Maluku for natural and human resources and Java for industry and services.

The MP3EI earmarks Rp 544 trillion for infrastructure projects through 2014, with state companies pledging to contribute Rp 836 trillion and business groups, represented by the Indonesian Chamber of Commerce and Industry (Kadin), promising to invest Rp 1,350 trillion over that period.

Kadin chairman Suryo Bambang Sulisto said the plan had been a long time coming. "We see this not only as a plan to accelerate development, but a golden opportunity to invest," he said. "Private sector participation sends a strong signal to foreign investors that the government is going all out in implementing the master plan."

Investors and local businesses have long complained about infrastructure inadequacies and bottlenecks in the economy. Important legislation needed to boost infrastructure development, such as the land acquisition law, also remains uncertain, and overlapping bureaucracies due to decentralization continues to hinder investment.

[With additional reporting by Francezka Nangoy, Yanto Soegiarto.]

Analysis & opinion

The lords of the ring

Jakarta Globe - May 31, 2011

Joe Cochrane & SK Zainuddin – Fortune has favored Indonesia's business barons and captains of industry these past 12 months. Rising commodity prices, strong consumer demand and a raging stock market have combined to push the net worth of the GlobeAsia 150 Richest to new record levels. And after three years, we also have a new number 1.

Coal, palm oil, property, consumer goods. Indonesia's rich natural resources and fast-growing consumer market have been the backbone for one of the sharpest spikes in the net worth of the super-rich since we started compiling the GlobeAsia 150 Richest Indonesians list in 2007.

In the past year, record high global commodity prices have translated into record earnings for those tycoons who have coal mines and vast palm oil plantations. In fact, just about any businessman of stature these days is eyeing a coal mine if he does not have one already, or is looking to expand production. It is no surprise that of the 21 billionaires on this year's list, nine have build their fortunes through ownership of coal mines.

Two of the new entrants to this year's list, Samin Tan, who owns Borneo Lumbung Energy and Metal, and Agus Lasmono, majority shareholder of Indika Energy, both rose to fame and fortune by acquiring coal mines.

This year's new number one, Eka Tjipta Widjaya, the patriarch of the Sinar Mas group, knocked Budi Hartono of the Djarum Group off his perch primarily because of the group's massive expansion in palm oil. We estimate that Sinar Mas has over one million hectares of palm oil

Money does grow on trees

Fauzi Ichsan, senior economist for Standard Chartered in Jakarta, says "it's a very simple explanation" why Indonesia's rich are getting richer. "Commodities and asset inflation," he says. "In the last 18 months, commodity prices have more than doubled. Oil has gone from $35 a barrel in March 2009 – today it is $100 a barrel.

"The rise in oil prices also pushed up the prices of other commodities prices, especially energy commodities like gas, coal and palm oil. On top of that, we've seen a big equity market rally over the last 18 months," he says.

"Basically the gap between the rich and poor is widening because of asset and commodity inflation. Even if you are a farmer and own your own rice field, you're OK because food prices have gone up and the price of your land has gone up. We're not talking about new jobs or inventing new stuff in Indonesia. This is not new."

Indeed, Indonesia has for a while been among the world's top producers and exporters of numerous commodities, including coal and palm oil. And globally, the past 12 months has seen more of the same.

"Wealth has expanded because those owning assets have seen their net worth expand as asset prices have risen. It's a simple story," he says. "Deals have been done, work expended but at the end of the day global loose monetary prices continue to drive asset prices higher and thereby increase the wealth of the owners of those assets.

"The numbers are staggering: the share prices of coal miners PT Banyan Resources, PT Bumi Resources, and PT Adaro Indonesia increased by 179.3 percent, 69 percent, and 10 percent, respectively, between May 2010 and April 2011, making them among the JCI's top 15 performing stocks during that period."

But nothing is etched in stone – or coal for that matter. "Just as the tide has risen, were commodities prices to again fall, so Indonesia's tide would subside," Cashmore reflects. "The country remains beholden to directional movements in commodity prices. Coal mining is the latest fashionable investment trend and every aspirational taipan must have a coal strategy."

Consumer is king

Of course, there is more to life than coal and palm oil. Indonesia's economic upswing has been followed by growing consumer spending, as millions more Indonesians have more money in their pockets and are joining the growing ranks of the middle class.

"The commodities story is slightly less compelling than the consumption story," says Tai Hui, Southeast Asia head of research for Standard Chartered Global Research in Singapore.

Indonesia's economy grew at an impressive 6.5% in the first quarter of 2011 compared to the same period in the previous year on the back of consumer spending and investment. "I would say that (retail and consumer goods players) made good money," says Erwan Teguh Teh, head of research at CIMB in Jakarta.

The retail sales index is up quite substantially, and if we look at some of the deals done over the last 12 months, the valuations are lucrative. Matahari and Alfa Mart, for example.

"And they are reinvesting. If you follow some of the listed retailers, they are expanding. Most of them are expanding by 10% to 15% new space every year. That's a lot. Depending on inflation, they could grow 15% to 20% each year overall."

Among the top retail and consumer goods players are Anthoni Salim, ranked number 3, Peter Sondakh, ranked 9th; William Katuari, ranked 13th; Mochtar Riady, ranked 17th; and Chairul Tanjung, number 23; and Sjamsul Nursalim, number 29. Another sector in the portfolios of Indonesia's richest is property – and with good reason.

The performance of listed property companies on the JCI improved by 2.6% between June 2010 and May 2011. The country's second-largest property firm, PT Bakrieland Development, controlled by the family of Aburizal Bak rie, who is ranked 5, announced in May that it expects its 2011 net profits to rise by 30%.

However, while share prices and demand are both going up, that doesn't necessarily mean the same applies to property values. "I don't think the value is going up significantly," states Edwin Sinaga, president director of brokerage firm Financorporindo Nusa. "I think it's about 10% to 20%."

What will be the hot new sectors for 2012 and beyond? Hui of Standard Char tered says that sectors linked to consumer demand are a sure bet, in particular telecommunications.

"The way the income level in Indonesia is now... we are moving away from the bare necessities of life to something more interesting. So you will see a rapid growth in telecommunications; we're moving away from motorbikes to cars. That change in consumer behavior all helps facilitate income growth of those businesses," he said.

But will this growth alone help Indonesia itself, rather than just making telecoms and car manufacturers better off? Some don't think so, given the country's continuing dependence on producing raw materials such as coal and palm oil.

"The value-add to the economy is not apparent," Ichsan concludes. You can't compare Indonesia's list of the richest with prominent figures on the US rich list like Steve Jobs of Apple or Bill Gates of Microsoft. They really change people's lifestyles with their inventions. And the rich list in Indonesia – we are riding on global growth."

Five years of mud disaster

Jakarta Post - May 29, 2011

H. Drake, Honolulu, Hawaii – This Sunday May 29, 2011, marks the fifth anniversary of the eruption of the Lapindo mudflow. While recent reports by the BPLS – the agency charged by the president to handle the disaster – indicate significant reductions in the daily amount of mud output, the area is far from safe.

In addition to the mudflow, land subsidence and toxic gases continue to dramatically impact residents' health, homes and livelihoods. As the embankment walls continue to regularly fail, as mud continues to contaminate local water and irrigation systems and as local infrastructure and roads collapse, the scene is far from improving. More than a mere mud volcano, the Lapindo mudflow represents an event with a long, complex history. What follows is a list of one researcher's greatest hits.

The trigger debate: Who can forget the debates over what triggered the mudflow? According to a consensus of Indonesian and international experts, drilling at a gas exploration mine operated by Lapindo Brantas caused the mudflow.

Yet, instead of following overwhelming evidence and analysis, various interested parties transformed a scientific dispute into a political spectacle by circulating disinformation through a range of questionable sources.

The perpetrator-less crime: The proliferation of erroneous and incomplete information precludes both any possible satisfactory resolution of the trigger debate and the establishment of culpability.

A House of Representatives taskforce formally absolved Lapindo Brantas of any wrongdoing in causing the mudflow, but, in a surreal turn, it lost several pages of its speech right before publicly delivering its formal recommendations, leaving most of its findings off the record.

Wrong priorities: Thus far, mudflow response policies have prioritized the minimization of political and financial impacts over the delivery of assistance.

The slow and inconsistent delivery of assistance that has fractured and disempowered communities and coalitions of victims attests to these failed priorities.

Other than ornamental and oblique statements to the media, the government has displayed no commitment to either pressure Lapindo Brantas to take responsibility or take meaningful control of the relief effort.

How much is your hardship worth? Instead of delivering a formal compensation scheme, Lapindo Brantas and the BPLS devised a sale-purchase program to deliver assistance in the form of land purchases. Since most of the land in the area is either submerged under mud or uninhabitable, this seems like a great idea – money for useless property.

The problems, however, are too many to note. The major ones are: What about victims who don't own land, job losses, harvest losses, etc.? If you don't possess a national certificate proving ownership, how do you measure and prove ownership if the land is submerged?

How do you prove ownership of land without being exploited by a flood of middlemen – formal and informal officials and surveyors – who have profited by false measurements and the misclassification of land?

Have your subsidiary talk to mine: No business, institution or government office is truly powerful until it has its own subsidiary company. Lapindo Brantas – itself a subsidiary of the Bakrie Group – established subsidiary Minarak Lapindo Jaya to administer the delivery of the sale- purchase payments.

The central government has the BPLS to manage the disaster relief effort. Although currently the BPLS is receiving funding from the national budget, Lapindo Brantas funded it before.

This reminds me of a joke: what happens when one subsidiary funds another subsidiary that funds another subsidiary? You get muddy politics.

Muddy politics: While a lack of transparency characterizes the participation and operations of a range of public and private workers and officials in the area, most frustrating is the lack of transparency in the relationship between Lapindo Brantas and the government.

Despite comments by representatives on both sides, the harmony of their actions suggests cooperation. While it is common for nations inspired by neoliberal economic ideologies to blur the lines between corporations and governments, it is irresponsible to do this in a political environment not yet capable of protecting the rights and interests of the ordinary masses.

It's never good to be a victim, but this is ridiculous: The best-case assistance scenario for the average displaced family is qualifying for the sale-purchase payment and receiving the first 20 percent of the total value; the final 80 percent has yet to be delivered (it's about three years late now).

For those opting to relocate to Kahuripan Nirwana Village, a Bakrie-owned property development made available for victims, in addition to outstanding payments, it took over a year for most victims to receive water and electricity in their homes, and few have received the promised titles to these new homes.

Then there are the victims in places like Besuki and Mindi, who live just outside the designated area to be eligible for the sale-purchase plan. Many have neighbors just across the street whose homes happened to fall in the designated area.

On both sides of the street there are the same crumbling houses and same gaseous air, and no clear rationale for the establishment of this "impact zone" has been delivered. Let me make this clear: this may look like an arbitrary bureaucratic irregularity, but this exclusion (this policy that excludes) endangers the lives of those who have no options.

A sickening reality: Let us not forget the submerged communities, the 50,000 displaced residents, the 13 deaths caused by an explosion from an underground gas pipeline and the rapid spread of illness, including favorites such as malnutrition, burns, skin infections, diarrhea, typhoid fever, respiratory illnesses and nerve damage.

We cannot possibly imagine living in this environment, facing both geological threats and human predators who arrive with official credentials. Five years. We cannot imagine.

[The writer is studying the Lapindo mudflow on a Fulbright fellowship. He is a Ph. D. candidate at the University of Hawaii, where he studies environmental criticism and cultural production.]

Under the radar, a threat to rival JI

Jakarta Globe - May 27, 2011

Rebecca Lunnon – Jemaah Islamiyah is still often the first name associated with terrorism in Indonesia. Even recent attacks such as the spate of book bombs in Jakarta in March had some referring directly to JI as the perpetrator while others were more subtle, referring to "old players."

The automatic tendency to see JI as the most likely culprit of terrorist attacks today is often not only erroneous, but dangerous. Since the Australian Embassy bombing in 2004, JI-related attacks were led only by Noordin M. Top, who was killed in September 2009. There has been no indication that anyone has been able to fill his position. He did not have the support of the mainstream JI that advocates dakwah, or religious outreach, over violent jihad. Indeed, if JI individuals are involved in incidents it is less as a part of the JI organization and more in cooperation with other organizations.

The issue is not so much that this tendency is erroneous, but rather that it is dangerous. Although JI is still considered a threat, the tendency to see it as the tier-one threat blinds us to danger of other groups. More specifically, it has stopped us from seeing the real threat that Abu Bakar Bashir's newest organization, Jamaah Ansharut Tauhid, poses.

The organization is, in fact, very similar to JI. It has the same leader, similar structure and is based on the same ideology and tactics, albeit with some adjustments to match contemporary trends. It is these adjustments that actually make it a more dangerous and unpredictable threat. For instance, the turn to ightiyalat (secret assassination) attacks against both foreigners and local authorities or community figures. In addition, JAT has also recruited many JI members, in addition to those from a range of other organizations, including Darul Islam, Kompak, Jamaah Tauhid wal Jihad, Jamaah As-Sunnah and the Islamic Defenders Front (FPI).

Like JI, JAT has shown an ability to work across groups, and has been able to run an above-ground organization focusing on dakwah and community service programs with branches spread throughout Java and Sumatra, while at the same time unofficially supporting elements involved in underground terrorist activities. This is where its danger lies, as it has successfully camouflaged the extent of its terrorist activities from most observers.

However, JAT members have without doubt been involved in the following incidents: Sigit Qurdowi, likely a member of JAT's alleged armed wing, Laskar Hisbah, was shot in Sukoharjo on May 14. He was suspected of involvement in the April 15 Cirebon suicide bombing among other things. Musolah, thought to have prepared the explosives used in that bombing, was also a JAT member. Police are still following up on other leads linking more JAT members to the bombing, which only killed the attacker.

Last year in North Sumatra, the robbery of a CIMB Niaga bank branch in Medan on Aug. 18 and the retaliatory attack against police in Hamparan Perak on Sept. 22 in response to the arrests and killings of some of those involved in the robbery, involved former members of the Indonesian Mujahideen Council (MMI) – and hence very likely JAT members. The robbery itself was thought to have been masterminded by Abu Tholut, head of Laskar Hisbah and a member of JAT's advisory council, for terrorist activity related to the Tandzim Al Qaeda Serambi Mekkah (Al Qaeda in Aceh) training camp in Aceh. The camp involved a wide range of JAT figures, including the organization's leader Bashir, members of its advisory council such as Lutfi Haidaroh alias Ubaid; Mustaqim alias Abu Yusuf; Abdul Haris, who is the head of JAT's Jakarta branch; and members of various district-level branches such as Syarif Usman (South Jakarta) and Hariadi Usman (Bekasi).

In addition, smaller groups have been linked to JAT, such as a band of bomb-makers in Bandung who were rounded up in August 2010.

Other occasions have involved JAT working with members of JI or other radical organizations.

For instance, Heri Suranto (second secretary of JAT in Solo, Central Java) had organized a religious study group led by Ustad Urwah (JI) for a group of relatively young men in Solo. After Urwah's death, Abu Tholut and Joko Purwanto (JI) took over. Joko had given the group basic military and religious training by the time it was rounded up in May last year.

JAT is clearly a danger, but seems to have slipped under the radar. The organization needs to be monitored carefully, and not only for its underground terrorist activities.

The religious education sessions JAT runs for non-JAT members or groups facilitate the spreading of radical ideas and aid recruitment of individuals to JAT or other radical organizations.

Second, the community service programs that JAT runs – more effectively than the government as it happens, particularly in the wake of natural disasters such as the Mount Merapi eruptions in 2010 – also pose a threat to the government's credibility in the eyes of society.

Analysts and the government, at all levels, need to be aware of the tendency to see JI as the most significant threat in Indonesia, and need to be prepared to leave the comfort that comes with their knowledge about JI. They need to start accepting that JAT poses a serious threat that warrants extensive investigation.

Then again, what's in a name? That which we call a rose by any other name would smell as sweet – or in this case as dangerous, given the remarkable similarities between JAT and JI.

[Rebecca Lunnon is a research analyst at the S. Rajaratnam School of International Studies at Nanyang Technological University in Singapore.]