Bayu Marhaenjati, Ronna Nirmala & Dessy Sagita – Shots were fired, dozens of people were arrested, some were badly injured and offices and facilities were burned and vandalized across the country on Friday as protests against the proposed fuel price increase reached their fevered peak.

Security forces doubled their presence on a day that saw more than 80,000 people take to the streets nationwide, according to protest organizers.

Tear gas canisters and rubber bullets were fired in front of the House of Representatives in South Jakarta after protesters refused to disband after the sun set.

Hours earlier, protesters took down the three-meter-high gates at the House complex and demanded to see lawmakers who were inside the building deliberating the proposed hike. The police immediately pushed the demonstrators back, then set up barricades to prevent them from occupying the building.

Around 7 p.m., the police moved to disperse the crowd, which was blocking two lanes of the inner-city toll road, by setting off fireworks. While most protesters fled, some fought back using smashed up concrete dividers and Molotov cocktails, prompting officers to respond with rubber bullets, tear gas and water canons. The Jakarta Police said 21 people were arrested.

National Police Chief Gen. Timur Pradopo said the crackdown "was in line with procedures."

In Salemba, Central Jakarta, students burned tires and blocked roads to protest the arrest of 54 of their peers on Thursday. They also accused the police for raiding the offices of the Indonesian Legal Aid Foundation (YLBHI) and the Indonesian Administrative Foundation (YAI) for sheltering protesters.

In Bima, West Nusa Tenggara, a 23-year-old student, Khairuddin, was shot in the thigh and had to be rushed to the hospital for massive blood loss and injuries.

His peers suspected that the police were using live rounds, but provincial police spokesman Adj. Sr. Comr. Sukarman Husein insisted officers had only used rubber bullets and tear gas to disperse the crowds. "[Protesters] were blocking the road and disrupting public activities," the officer said.

In Samarinda, East Kalimantan, and Medan, protesters set fire to local police stations, vandalizing state property as they marched toward their rally points. One protester in Medan was arrested.

In Makassar, South Sulawesi, students attacked the governor's office, pelting windows with rocks and rocking the office's main gate until it collapsed.

In Bogor, one student protester, Abdul Basyid, was rushed to the hospital after the police allegedly beat him. That prompted clashes between protesters and officers, with rocks and taunts exchanged. Eight people were arrested. "We were carrying out our protest peacefully. It is the police who are the real vandals," said one Bogor student, Gema.

[Additional reporting by Fitri, Rahmat, Tunggadewa Mattangkilang, Aidi Yursal & Vento Saudale.]

Indonesian fuel price rise on hold for at least six months

Jakarta Globe - March 31, 2012

Ezra Sihite, Robertus Wardi & Arientha Primanita – The government late on Friday night failed to obtain support from the House of Representatives to raise fuel prices from Sunday, with lawmakers debating alternate policies into the early hours of this morning.

After repeated suspensions to allow lobbying, the House plenary session finally voted to possibly raise the price in six months, at which point the Indonesian Democratic Party of Struggle (PDI-P) staged a walkout.

Under the agreed option the fuel price will only increase if the Indonesian Crude Price exceeds the amount set in the budget by at least 15 percent for six months.

The proposal to increase fuel prices sparked massive protests around the country during the week, including one in which demonstrators crashed through the gates of the House even as lawmakers deliberated.

In the face of these developments, President Susilo Bambang Yudhoyono canceled his plan to attend an Association of Southeast Asian Nations leaders summit in Phnom Penh on Tuesday and Wednesday, presidential spokesman Julian Aldrin Pasha said on Friday evening.

"The president has decided to remain in Indonesia, close to the people," Julian said. Vice President Boediono will replace him at the summit, presidential special staffer Teuku Faizasyah said.

At the plenary the three opposition parties – the PDI-P, the Great Indonesia Movement Party (Gerindra) and the People's Conscience Party (Hanura) – were firm in their rejection of any fuel price increase.

The ruling Democratic Party initially backed the increase but later modified its stance.

Their plan would allow the government to raise the cost of fuel only if the ICP rose a certain percentage above the $105-per-barrel assumed average of oil prices used to formulate the 2012 state budget.

Initially, they wanted a 5-percent difference but eventually shifted their demand to 10 percent and then 15 percent. The five other members of the pro-government coalition of parties laid down conditions that would make it impossible for the price increase to take place as scheduled.

Golkar, in its opinion read out by lawmaker Ahmadi Noor Supit, proposed that a "fuel price adjustment" only be made if the ICP was at least 15 percent higher than the 2012 budget price assumption for six consecutive months.

Ahmadi said while at first the party had understood the need for a price increase, "When the people began to make demands of the parties, we conducted a review. We reject an increase in the price of fuel."

The Prosperous Justice Party (PKS), a coalition member, wanted the ICP gap to be at least 20 percent, while coalition member the National Awakening Party (PKB) and the United Development Party (PPP) pushed for 17.5 percent and 10 percent, respectively. The National Mandate Party (PAN) joined Golkar in demanding the ICP be at least 15 percent higher than the assumed price.

Finance Minister Agus Martowardojo said the government could not yet estimate the fiscal risks of leaving fuel prices alone, but said the law dictated that the deficit must not exceed 3 percent.

Purbaya Yudhi Sadewa, chief economist at the Danareksa Research Institute, said the deficit risked surpassing 3 percent but that it would not have too much of an impact on the economy. "In reality, it would not be a problem, the market can absorb it and remain positive," he said.

[Additional reporting by Agustiyanti & Kunradus Aliandu.]

Fuel hike opposition a ploy: Analysts

Jakarta Globe - March 31, 2012

Robertus Wardi & Dessy Sagita – Government coalition members are trying to boost their public image and bargaining position over President Susilo Bambang Yudhoyono's Democratic Party in their last-minute rejection of the fuel price hike, political analysts agreed on Friday.

"I don't believe the coalition members think about people. For them, it is only a game of achieving self-interested goals while protesters outside risk their lives," said Yunarto Wijaya, an analyst from political think tank Charta Politica.

While the Democrats pushed the proposal to raise the fuel price by 33 percent from April and three opposition parties – the Indonesian Democratic Party of Struggle (PDI-P), the Great Indonesia Movement Party (Gerindra) and the People's Conscience Party (Hanura) – firmly rejected it, five other parties in the ruling coalition had their own agenda.

"I respect both Democrats and the opposition who have had clear positions from the beginning. The other coalition members seem like they are only trying to bolster their bargaining power and public image with their last- minute proposals," Yunarto said.

The state budget law prohibits the government from increasing fuels price this year. The 560-seat House of Representatives was this week debating whether to scrap Article 7.6, thereby allowing the hike.

The Democrats, the largest party in the House with 148 seats, wanted it removed and three opposition parties insisted on maintaining it. The five coalition members came up with different proposed amendments.

They used the Indonesian crude price (ICP) assumption in the state budget (set at $105 per barrel) as a basis to propose different conditions for the government to increase prices of subsidized fuels, leading to hours of protracted negotiations that pushed the plenary vote late into the evening.

The price is currently 10 percent above that, at $116 a barrel.

The Golkar Party, the second-largest party with 106 seats, said it would only support a fuel price hike if the ICP rose 15 percent above the budget forecast within the next six months. The Prosperous Justice Party (PKS), with 57 seats, rejected the price hike unless the ICP rose 20 percent above the assumption in the next three months.

The National Awakening Party (PKB), with 28 seats, proposed 17.5 percent while the National Mandate Party (PAN), with 46 seats, wanted 15 percent. The United Development Party (PPP) and its 38 seats insisted on 10 percent.

University of Indonesia political analyst Arbi Sanit, however, said the fuel price would ultimately be increased because the politicians realized that the mounting subsidy would create huge deficit for the budget.

"The politicians only want to show to protesters that they are concerned about their aspirations," he said. "But the protests are not powerful enough to change the government's plan."

Meanwhile, legal expert Yusril Ihza Mahendrac said even if the House failed to clear the way for the government to increase fuel prices, Yudhoyono could get credit by saying that he canceled the plan because he considered the people.

Signs of markups in fuel subsidy calculations: ICW

Jakarta Globe - March 30, 2012

Markus Junianto Sihaloho & Agus Triyono – Indonesia Corruption Watch has asked the antigraft commission and the state's audit body to check the government's fuel subsidy calculation in the budget bill after finding alleged markups in the numbers.

Firdaus Ilyas, ICW's coordinator for budget monitoring, said that the antigraft group would demand both the Corruption Eradication Commission (KPK), and the Supreme Audit Agency (BPK), to do their jobs regardless of whether the government increases subsidized fuel prices.

"We will report to the KPK that there is an indication of corruption in the government's formulation of the budget while asking the BPK to conduct audit on the subsidy calculation," he said.

With its assumptions – an international crude oil price of $105 per barrel, a 40 million kiloliter quota for subsidized fuel consumption and a 3.61 million ton quota for LPG consumption – the government says the subsidy cost will reach Rp 178 trillion ($19.4 billion) without an increase in fuel prices.

If fuel prices were increased by Rp 1,500 per liter, then the subsidy amount would stand at Rp 133.2 trillion, the government says.

However, the ICW calculated that without increasing fuel prices, the subsidy amount would only be Rp 148.1 trillion. If the government raised the fuel prices by 33 percent, the subsidy would only reach Rp 68.1 trillion. Firdaus said that based on his group's calculation, there were markups of Rp 30 trillion and Rp65 trillion in each scenario.

"Why do we have different results? The government should be transparent in their calculations. That's why we are asking both the KPK and BPK to check them," he said.

Firdaus said that ICW's calculations have been cross-checked with data from political parties, especially those from the Indonesian Democratic Party of Struggle (PDI-P). "Our data and calculations are valid. We have verified them before making them public," he said.

Theodorus Jacob Koekritz, a member of PDI-P's budget division, agreed with ICW's calculations, saying the party had reached the same conclusion. "Now, we are convinced that the government is hiding something," he said.

Meanwhile, a number of religious leaders, academics and activists filed a motion to the Constitutional Court, asking it to scrap several articles 2001 law on oil and gas, saying they have caused significant state losses but only benefitted foreign firms.

"We have noted that foreign companies own 89 percent of our oil and gas sectors. The law has violated the Constitution and that's why we will have it scrapped," said Din Syamsuddin, the chairman of religious organization Muhammadiyah.

Thousands workers show off against fuel price hike

Jakarta Post - March 30, 2012

Ridwan Max Sijabat, Jakarta – More than 5,000 workers from industrial areas in and around Jakarta staged a mass demonstration at the front gates of the legislative compound, demanding the House of Representatives (DPR) turn down the government's plan to increase fuel and electricity prices in April and May respectively.

Protesters from the Confederation of All-Indonesian Workers Union (KSPSI), Confederation of Indonesian Prosperous Labor Union (KSBSI), Confederation of Indonesian Workers Union (KSPI), Federation of Indonesian Metal Workers Union (FPSMI), Indonesian Workers Organization (OPSI) and Joint Indonesian Workers Secretariat (Sekber Pekerja Indonesia) decried the planned fuel price hikes that would certainly affect their economic livelihood.

"One command, one resistance. Lawmakers must reject the proposed fuel price hike," they shouted.

Hundreds of riot police, eight water cannons and four fire trucks stood by in case chaos broke out, while hundreds of armed military personnel were deployed inside halls and a mosque in the compound.

KSPSI Chairman Said Iqbal said in a forum the workers' presence was part of mass demonstrations, which involved tens of thousands of workers in big cities throughout the country, with one aim – the rejection of the fuel and electricity price hikes.

"We come here to urge the House to reject the government's proposal of increasing the fuel prices on April 1 and the power tariff price on May 1. We come here to give moral support for lawmakers to channel the people's opposition to the planned fuel price increases. We are here to back up lawmakers from the PDI-P, Golkar, PKS, Gerindra and Hanura to channel our aspirations," he said.

He called on lawmakers to no longer remain loyal to their own political parties, which he said have been inattentive to the real conditions people face at the grass-roots level. "Lawmakers should fight for a 'one man, one vote' mechanism in the planned vote for the proposed revision of the 2012 state budget law."

Newly-elected Chairman of KSPSI Andi Ghani Nuwa Wea called on lawmakers to listen to the people's aspirations, and asked the government and security authorities not blame workers if the national demonstrations turned violent.

The protesters said they would stay put at the gates of the DPR until the House ultimately opposed the fuel price hike plan in the upcoming vote. "We will perform the Friday prayers on Jl. Gatot Subroto and stay at the scene until dawn on Saturday. The House has no choice but to turn down the planned fuel price hike," he said.

54 arrested in violent anti-fuel hike protest in Central Jakarta

Jakarta Globe - March 30, 2012

Farouk Arnaz – Police arrested 54 people in Salemba, Central Jakarta, on Thursday evening when the protest against the government's plan to raise fuel prices turned violent.

National Police spokesman Insp. Gen. Saud Usman Nasution said 54 people were arrested because they were allegedly involved in setting several vehicles belonging to the police on fire and they were caught carrying Molotov cocktails, stakes and slingshots during the protest.

Police have been criticized for attacking the offices of the Indonesian Legal Aid Foundation (YLBHI) and the Indonesian Administrative Foundation (YAI) on nearby Jl. Diponegoro during the violent clash, but Saud said the officers were only trying to chase students who had set fire to the vehicles.

"They had no intention to conduct a peaceful protest; they want anarchy," Saud told a press conference at the National Police headquarters in Jakarta on Friday.

Rumors spread on Thursday evening that two students died in the violent Salemba protest, but Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto quickly denied it.

In a press conference held in his office in Jakarta on Friday morning, Djoko said no one died in the incident, although five students, one security guard and the chief of the Senen Police precinct were injured and being treated at Cipto Mangunkusumo Hospital, which is near the scene of the protests. (BeritaSatu/JG)

Protesters block Jakarta inner city toll road toward airport

Jakarta Globe - March 30, 2012

People heading toward Soekarno-Hatta International Airport in Tangerang, west of Jakarta, were forced to take other routes, such as the Jakarta Outer Ring Road in South Jakarta or the Cawang-Pluit toll road in North Jakarta, as protesters blocked two lanes of the Jakarta inner city toll road.

The toll road was blocked at the section in front of the House of Representatives in West Jakarta, allowing no vehicles to pass through and forcing the TransJakarta Busway to cease operations.

Hundreds of cars were trapped as they tried to access the route, and were forced to turn around and head in the opposite direction as hundreds of protesters broke through a fence divider onto two lanes of the toll road, allowing no vehicles to pass.

No security guards or toll officers seemed able to do anything to stop the demonstrators, detik.com reported.

Thousands of protesters staged demonstrations outside the House against the government's plan to raise fuel prices on April 1. Lawmakers are expected to vote on the proposal in the plenary session being held at the time of writing.

Police shoot tear gas as anti-fuel hike protesters break into DPR

Jakarta Globe - March 30, 2012

Police shot tear gas at thousands of protesters occupying the road outside of the House of Representatives in Jakarta on Friday as protesters forced their way into the front yard of the House by breaking down the gate.

Since Friday morning, thousands of protesters have been staging demonstrations against the government's fuel price hike plan outside the House, known as the DPR, which is holding a plenary session to decide whether or not to support the government's move.

On Friday evening, as the plenary session was adjourned following prolonged debates over the hike plan, protesters finally managed to break the front gate and quickly flooded the House front yard.

The latest move prompted security officers to take action by shooting tear gas at the crowd, dispersing them and forcing them out of the House yard.

Live TV footage shows protesters fleeing the scene, and they are now throwing stones at police, who are still occasionally shooting tear gas.

Protesters occupied the section of the Jakarta inner city toll road in front of the House, blocking the main access toward Soekarno-Hatta International Airport in Tangerang from eastern Jakarta.

Indonesia opposition parties block fuel price hike

Reuters - March 30, 2012

Jakarta – Leading Indonesian political parties said on Friday they will oppose a government plan to raise fuel prices unless oil prices climb further, dealing a blow to the ruling party's efforts to control a swelling budget deficit in Southeast Asia's largest economy.

The government wants a 33 percent rise in petrol prices, currently the cheapest in Asia, from April 1 to reduce a subsidy bill that threatens to undermine the budget discipline that led rating agencies to lift the country to an investment grade status.

President Susilo Bambang Yudhoyono's Democrat Party wants to change the law to allow a price hike if the Indonesia Crude Price (ICP), a basket of crude oil prices, rises to average more than five percent above a budget forecast for $105 a barrel. The price is currently 10 percent above that at $116 a barrel.

But the Golkar Party, part of the ruling coalition and with the second largest number of seats in parliament, said on Friday it rejected a fuel price hike and would only support it if the ICP rose 15 percent above the budget forecast.

Golkar previously supported the fuel price hike but changed its mind after a week of protests across the country. On Friday thousands of demonstrators gathered outside the parliament building and blocked access to a toll road to the airport.

"At the beginning of this debate, Golkar was leaning to understanding the government's stance. But when the people demanded, shouted and reminded us that Golkar is a party of the people, we of course reassessed our position," said Ahmadi Noor Supit, a Golkar lawmaker.

Protests over a fuel price hike helped spell the end for autocratic leader Suharto in 1998, and lifting prices would hurt the bulk of the country's 240 million people, many still living on a few dollars a day despite years of strong economic growth.

"The latest manoeuvre by Golkar is a smart calculation... this rejection of the fuel price hike could boost support for Golkar," said Syamsuddin Haris, a political analyst from Indonesia's Institute of Sciences.

Other parties also told parliament they rejected the hike or required a rise in the ICP price of up to 20 percent. Lawmakers are set to continue to thrash out possible options for a deal, though an April price hike now looks unlikely.

Failure to pass the proposal in parliament would keep inflation low but disappoint rating agencies that want the government to use the $18 billion it spent on fuel subsidies last year for much-needed infrastructure instead.

Lawmakers postponed the vote until the last minute as they feared supporting the move would hurt their popularity in the run-up to national elections in 2014.

Subsidies keep pump prices at just half the market rate, spurring fuel demand in Asia's largest gasoline and diesel importer and helping boost car sales to record highs. Lifting prices by a third would only take them to a level reached in 2008 after Yudhoyono hiked prices following a oil price spike.

The president cut prices in 2009, as oil prices declined during the global financial crisis. His plan to lift them again comes as oil prices have surged because of concerns over Iran's exports.

"At this late stage, failure to have the fuel price plan approved by the legislature would be a major political blow for the administration and likely to have economic repercussions," said Jakarta-based risk analysts Concord Consulting.

Without a price hike, the government sees the budget deficit widening to 4 percent of GDP, more than double the 1.5 percent it was aiming for this year. However, the central bank has said lifting fuel prices will boost inflation above its target to over 7 percent, from 3.6 percent in February. It is also likely to dampen consumer spending, the main driver of the economy in the G20 member.

Indonesia, a former OPEC member, has long subsidized pump prices as do other major producers such as Iran, but declining crude output and dilapidated refineries mean it relies on costly motor fuel imports. Economists say weaning consumers off subsidies is critical to the country's long-term financial health.

[Additional reporting by Adriana Nina Kusuma and Reza Thaher.]

Minister told off for threats against politicians protesting fuel hikes

Jakarta Globe - March 29, 2012

Markus Junianto Sihaloho, Ezra Sihite & Agus Triyono – Home Minister Gamawan Fauzi is facing mounting criticism after threatening to punish district heads who took part in rallies against the fuel price increase.

In a visit to the Jakarta Globe office on Wednesday, former President Megawati Sukarnoputri, the chairwoman of the opposition Indonesian Democratic Party of Struggle (PDI-P), warned Gamawan to be careful about saying something she said could be in violation of the law.

"When he was a governor [2005-09] he also rejected the government's plan to raise fuel prices," she said. "That's why I say to him, don't overreact."

Gamawan was supported by the PDI-P when he won his job as Solok district head and later as governor of West Sumatra prior to 2009. He was reportedly Megawati's favorite regional head, and quickly became one of the country's most popular officials.

In 2009, Gamawan was tapped by President Susilo Bambang Yudhoyono for his re-election team and was later given the Home Ministry portfolio. When Yudhoyono planned to increase fuel prices in 2005, Gamawan was one governor who fiercely opposed the plan.

Megawati said she would defend all PDI-P district heads who took part in rallies against the fuel price increase.

A number of PDI-P district heads and mayors took part in demonstrations in their regions on Tuesday, rejecting the plan to raise fuel prices.

They included Malang Mayor Peni Suparto; Solo Deputy Mayor FX Hadi Rudyatmo; Surabaya Deputy Mayor Bambang Dwi Hartono; Sukoharjo district head Wardoyo Wijaya; and Jember deputy district head Kusen Andalas.

This prompted Gamawan to issue a warning to mayors and district heads that they could lose their jobs for violating their oaths and the law.

Yudhoyono's Democratic Party immediately threw its support behind Gamawan. "If their actions can endanger the state and society, then they can be removed," said Andi Nurpati, the party's head of public communications.

She said that what the mayors and district heads were doing amounted to insubordination, and thus, they were in violation of the law.

Legal expert Yusril Ihza Mahendra dismissed the idea that mayors and district heads could be removed from office for taking part in protests. "They can't be removed by the home minister as they are directly elected by the people," he said.

Pro-price hike voices heard... for a price

Jakarta Globe - March 29, 2012

Yuli Krisna – A group of about 30 people, comprising pedicab drivers, trash pickers, housewives and youth activists gathered in front of the West Java governor's office in Bandung on Wednesday to rally over the planned fuel price hike.

But while most demonstrations in recent days have featured vocal opposition to the government's proposal to raise the price of subsidized fuel, the Bandung contingent rallied in support of the policy.

Pedicab drivers put stickers on their vehicles expressing various messages of approval for the price increase, expected to go into effect on Sunday. Five provincial legislators from the Democratic Party also took part in the rally, including Zulkifli Chaniago.

Addressing the crowd, Zulkifli said the government intended to reduce the subsidy because it was mostly enjoyed by people in medium and higher income brackets. He also criticized rallies against the plan that emphasized the price hike but failed to mention the government's compensation programs.

The pro-government rally raised some eyebrows because its participants were from the lower income set that many say will be hardest hit if the fuel price hike triggers inflation.

One of the pedicab drivers said he would let the government decide what was best for the people. "I'm okay with it. It's up to the government to decide," said the 30-year-old man.

However, he also admitted that he had been paid to take part in the rally. "Yes, I was given money to buy food; Rp 100,000 [$11]. I took the money because I needed it," he said.

Another pedicab driver, Dudung, 78, also confessed to having been paid Rp 100,000 to join the rally. Although he took part in the gathering, Dudung said he opposed the fuel price hike plan.

"My wish is [that the fuel price] doesn't go up. The income of pedicab drivers is very low. I want the prices to be affordable for low-income people," he said.

Students, police in violent brawl

Jakarta Post - March 29, 2012

Jakarta – Police and students were involved in a violent clash on Jl. Diponegoro after students started to burn tires during a day-long rally held by students of the Indonesian Christian University (UKI) and the Indonesian Persada University (UPI-YAI) in front of their campuses in Salemba, Central Jakarta.

Students effectively closing down a stretch of Jl. Diponegoro, beside the Cipto Mangunkusumo General Hospital (RSCM) and set tires alight.

The students had been provoking police and were enraged when one activist was detained. They then stormed a police post on Jl. Dipongoro, demanding the student's release.

Tensions heightened in the evening, when a police car was trapped in a traffic jam before being ambushed and set alight by students blockading Jl. Diponegoro in front of the Indonesian Legal Aid Foundation (YLBHI) office. Protesters have been using the office as a kind of transit place.

Police deployed two Barracuda armored-vehicles to the office to look for the students who burned the patrol car.

The clashes ended at about 9:45 p.m. after the students retreated to their campuses while the police reopened Jl. Diponegoro.

The relationship between students of the two universities during the rally was somewhat ironic, as they have been known to dislike one other and brawl.

"This is the beginning of peace between the UKI and the UPI. We are united to reject the fuel-price hike plan," a UKI student said in a speech during the rally, as quoted by kompas.com.

At around dusk, when the tires burnt out, several students from the UPI came along, bringing a new tire to burn. UKI students welcomed the "gift" while singing a song.

A similar clash also took place in Makassar, South Sulawesi, between security personnel with students of the Muhammadiyah University (Unismuh). (mim/rpt)

Indonesian protests highlight police violence

Jakarta Globe - March 29, 2012

Farouk Arnaz, Bayu Marhaenjati & Novianti Setuningsih – With protests against the planned government fuel price increase picking up in intensity, the police are coming under fire for their rough handling of the mainly student protesters.

Lawmakers from both the government coalition and the opposition were in agreement on Wednesday that the police had been unnecessarily harsh in its handling of some protests, including assaulting journalists and confiscating cameras.

Civil society groups joined in condemning the violence, saying human rights violations would only exacerbate the unrest.

Lawmaker Benny K. Harman of the ruling Democratic Party urged the National Police chief to punish those officers found to have used violence in dispersing protesters. He also criticized the police's rough treatment of journalists.

"Journalists are the ones they should be protecting," he said. "The seizure of their cameras is in direct violation of freedom of information."

A protest in Jakarta on Tuesday turned ugly after the police tried to block protesters, mostly students, from marching to the State Palace. The protesters began throwing rocks and Molotov cocktails at officers, who responded by spraying them with water cannons and shooting tear gas into the crowd.

At least 10 protesters sought treatment at nearby hospitals. Some 35 were arrested and released the following day.

Teguh Juwarno, the secretary general of the National Mandate Party (PAN), which is part of the pro-government coalition, agreed that the police were too repressive and too ready to employ violent tactics. "The National Police chief must punish those police officers who engaged in violence against journalists and demonstrators," he said.

Haris Azhar, from the Commission for Missing Persons and Victims of Violence (Kontras), said rights violations had included the police use of tear gas and water cannons on protesters, the hunting down and arrest of protesters and the seizure of a TV journalist's camera.

He also criticized directives allegedly given to police officers by a local military commander at Gambir train station in Central Jakarta on how to deal with the student protesters.

The Jakarta Police aren't the only ones in the hot seat. Kontras also admonished the police in Medan, where on Monday two protesters were shot with rubber bullets and two journalists were beaten by officers.

National Police spokesman Brig. Gen. M. Taufik said that officers were within their rights to defend themselves, and added that police officers were among the injured as well.

"Police had asked the protesters to leave behind their belongings as they were approaching the State Palace, but they reacted instead by throwing [stones]," Taufik said of one violent encounter in Jakarta. "Seventeen of our officers were injured."

Police found 20 Molotov cocktails among the student protesters. A police station, a car and a motorcycle were all destroyed in the clash.

Indonesia protesters rally against fuel price hike

Jakarta Globe - March 29, 2012

Thousands of Indonesian protesters rallied on Thursday against a planned fuel price hike, ahead of a decision on cutting subsidies which the government says the nation can't afford.

After previous demonstrations turned violent, around 14,000 police and 8,000 soldiers were deployed at key locations in Jakarta, including parliament house, the presidential palace and the international airport.

Demonstrations have occurred almost daily in recent weeks ahead of the parliamentary vote on Friday which is expected to raise the heavily subsidized fuel price by a third, from Rp 4,500 (49 cents) to Rp 6,000.

The government has said that without hiking the fuel price, rising global oil prices will push the country's budget deficit above the three percent of GDP cap stipulated by law.

Rally organizers promised tens of thousands of protesters would take to the streets on Thursday. By mid-morning some 2,000 had gathered in front of the presidential palace, all members of hardline Muslim group Hizbut Tahrir.

Men wearing Muslim caps and women in headscarves chanted "Replace, replace this rubbish system" and carried banners saying "Reject the fuel price hike! Rulers are liars, wicked and traitors."

"Capitalism and imperialism will only put people in misery as foreigners have always exploited countries with rich natural resources like Indonesia," said the group's spokesman Ismail Yusnanto.

The Indonesian Trade Unions Alliance said thousands of its members would also join demonstrations in the capital. "We demand that the government not hike the fuel price," union chairwoman Nining Elitos told AFP. "Everything will become more expensive, which will create a burden. It just means misery."

The Jakarta Police Traffic Management Center reported that anti-fuel price hike demonstrations also took place in front of the House of Representatives building in West Jakarta, where about 500 protesters gathered, at the Hotel Indonesia Traffic Circle and at the State-Owned Enterprises Ministry in Central Jakarta.

In Bandung city south of Jakarta, thousands of members of Hizbut Tahrir – a prominent religious group in Indonesia which is the world's biggest Muslim-majority nation – were already demonstrating by early morning.

Planned mass rallies in the capital fizzled Tuesday, with 22,000 security personnel overseeing just 3,500 protesters. But almost 10,000 people showed up in other cities including Medan in Sumatra island and Surabaya in eastern Java.

Some rallies turned violent as hundreds of protesters pelted rocks, petrol bombs and sticks at police, who fired tear gas and water cannons to disperse the crowd. (AFP, JG)

Parties bicker as rallies spread

Jakarta Post - March 28, 2012

Margareth S. Aritonang, Jakarta – With protesters violently clashing with riot police at rallies in several parts of the country on Tuesday, the Indonesian Democratic Party of Struggle (PDI-P) has been accused of fomenting unrest over the planned fuel-price hike by Democratic Party members.

"Rallies against the fuel-price hike are acceptable as long as the initiatives come from the protesters themselves. What I don't understand is why the PDI-P lawmakers don't use their voices to oppose the plan at the House instead of encouraging the rallies," the Democratic Party's House faction leader, Djafar Hafsah, said on Tuesday.

His comments came as the rally in Jakarta turned ugly when protesting students tried to force their way into the State Palace, before clashing with police. Riot police responded by firing tear gas and spraying the crowd with water canons after intercepting protesters in Gambir, Central Jakarta.

Scores of protesters were also injured during a rally in Palu, Central Sulawesi, after a group of students started hurling rocks at police, triggering a clash.

Democratic Party deputy chairman Max Sopacua accused PDI-P politicians of acting childishly in encouraging its members to join the street protests. He said that PDI-P politicians feared losing the vote on the proposed fuel-price hike.

"Voting is one of the features in a democracy. There must be a winner and loser during the process. Lawmakers work in the House, not on the streets. It's obvious that PDI-P lawmakers are not ready [for the vote]," Max said.

The PDI-P rejected the accusations and defended the rights of its members to speak freely on issues. "We don't encourage our members to take to the streets, but we can't prohibit our members from joining the rallies to express their personal views on the plan," the leader of the PDI-P's faction at the House, Puan Maharani, said.

The PDI-P is the only party in the House that has stated it would openly oppose the hike. The Prosperous Justice Party (PKS) had expressed reservations over the plan.

On Tuesday, the PKS said it would stick to its decision to reject the plan. "If the government's decision does not meet the people's expectation, [then] we will not abandon the people," PKS chairman Luthfi Hasan Ishaaq said as quoted by Antara news agency.

The House is scheduled to hold a plenary session on Thursday in which lawmakers are expected to decide on two options regarding the government's plan to increase subsidized fuel prices: Putting a ceiling on the amount the government can spend on fuel subsidies but allowing it to increase the price of gasoline, or increasing the amount of the subsidies without any price increase.

The central board of the PDI-P had issued a circular, dated March 26, to all party members to express their rejection of the planned hike. Responding to the circular, a number of local officials, including Surakarta Deputy Mayor FX Hadi Rudyatmo and Surabaya Deputy Mayor Bambang DH, both members of the PDI-P, joined street protests.

Home Minister Gamawan Fauzi said that his ministry had issued an order banning elected officials from joining the rallies.

Meanwhile, the Jakarta Police said that the turnout of protesters in the capital on Tuesday was not as high as expected.

City police spokesman Sr. Comr. Rikwanto said that only around 3,500 protesters joined the demonstration – far lower than the 8,000 registered by the police to join the rally. "This was way below our expectations," Rikwanto said.

The Jakarta Police had dispatched 22,000 personnel to handle the protest. In other parts of the city, the rallies were much more peaceful, with many protesters leaving once rain began to fall.

The protesters, comprised mainly of students, workers and supporters of the PDI-P, gathered at the entrance of the House building in Senayan, Central Jakarta, at the Hotel Indonesia traffic circle and at Merdeka Square. Rikwanto said the situation remained under control, although the protest turned violent in Gambir.

One of the protest leaders, PDI-P member Jeppri F. Silalahi, said a larger rally was expected to take place on Thursday.

During a rally in Gorontalo, protesters seized control of a gas station for around 20 minutes, allowing motorcyclists and three-wheeled motorized taxi-drivers to fill their tanks for free. Protesters also vandalized the gas station and left after being told that it was privately owned.

National Police spokesman Insp. Gen. Saud Usman Nasution said that police had launched an investigation into possible criminal acts that took place during the rally. "We call on all sides to exercise restraint. We will deal with all criminal acts according to the existing laws," he told The Jakarta Post.

PMI denies supplying rocks to demonstrators

Jakarta Post - March 28, 2012

Jakarta – Indonesian Red Cross (PMI) Secretary Irwan Hidayat has denied allegations that it provided rocks to demonstrators to be later used to fight the police. He said PMI had focused on helping wounded victims and those who had affected by tear gas.

"Thus the police previous statement that PMI supplied the masses with rocks is baseless and far from the truth," Irwan said on Wednesday, as quoted by tempo.co.

Jakarta Police spokesman Sr. Comr. Rikwanto had previously stated that the police found strong indications that one of PMI's ambulances was spotted transporting piles of rocks for demonstrators during yesterday's protests against the proposed fuel price hikes.

Irwan said as many as 12 ambulances and 36 personnel had been deployed to various places throughout the city to provide medical assistance, including Jl Merdeka Barat and the Presidential Palace.

"We evacuated 13 people to Cipto General Hospital, 12 to Tarakan Hospital and 30 to the Army Hospital both from the police and the mass of protestors," he said.(dic)

Activist, lawmaker protest police violence against journalists

Jakarta Post - March 28, 2012

Dicky Christanto, Jakarta – Following the police violence against journalists covering yesterday's public rallies, Indonesia Police Watch (IPW) executive director Neta S Pane said that journalists should lodge a complaint with National Police chief Gen. Timur Pradopo.

"The journalists should file a complaint. The National Police chief should be held responsible for what his subordinates have done. These police personnel have clearly violated the Press Law, which guarantees the full protection for journalist when carrying journalistic duties," Neta told The Jakarta Post on Wednesday.

He said the National Police chief should reassess personnel performance, and if necessary, take disciplinary measures against Central Jakarta Police chief as field commander.

Lawmaker Teguh Juwarno said the National Police chief owed the House of Representatives an explanation over what had happened between the police and journalists.

"Firm measures should be taken. Those who are responsible for this should be punished," Teguh, former TV journalist himself, said as quoted by kompas.com.

Several journalists were beaten by police personnel during the yesterday's mass rally that turned chaotic in Gambir, Central Jakarta.

Police used excessive force during fuel price protests: Kontras

Jakarta Globe - March 28, 2012

Novianti Setuningsih – Indonesia's Commission for Missing Persons and Victims of Violence has accused police of human rights violations after dozens of students were injured during protests against the government's proposed fuel price hikes in Gambir, Central Jakarta, on Tuesday.

Haris Azhar, coordinator of the commission, known as Kontras, said the rights violations included police use of tear gas and water cannons on protesters, the attack itself, the arrests, the hunting down of protesters who fled to a nearby settlement, as well as the seizure of a TV journalist's camera.

Haris also criticized alleged directives given to police officers by a local military command in Gambir to deal with the protesters, who were members of local student organizations.

The students and police officers clashed near the Gambir train station after the police attempted to block the students on their way toward the nearby Presidential Palace.

"The afternoon clash in Gambir shouldn't have occurred if only the police had consequently implemented security procedures, which were applied in four other demonstration spots," Haris said in a press statement on Tuesday evening.

He said at Gambir, police had at least abused Article 7 of the 2006 National Police regulation on Large Crowd Control by dealing with the protesters arrogantly, yelling at them and using foul language, as well as letting themselves become provoked by the protesters.

Police also abused a 2008 National Police regulation obliging officers to protect human rights, and a 2009 regulation that mandates police to only use force when really necessary, and that it should be proportional to the need.

"The excessive measures police officers still apply in dealing with protests in Jakarta and other regions in Indonesia show that the National Police have defied the principles of necessity and proportionality, as well as the aforementioned internal regulations. Police, in this case, still show an anti-people face," Haris said.

Kontras also admonished police for using force in dealing with anti-fuel price hike protests that turned violent in other parts of Indonesia, including in Medan on Monday where two protesters were shot with rubber bullets and two journalists were beaten by police officers. (BeritaSatu/JG)

Indonesian police on the defense after Jakarta's violent fuel protests

Jakarta Globe - March 28, 2012

Farouk Arnaz – National Police officials defended their actions during yesterday's chaotic fuel hike protests in Gambir, Central Jakarta, stating on Wednesday that officers were within their rights to defend themselves against the attacks of angry protestors.

Tuesday's demonstration against the government's plan to slash fuel subsidies turned violent when police tried to block about 400 protestors' march from the office of the state-owned gas company Pertamina to the nearby Presidential Palace.

The protestors began to throw rocks and Molotov cocktails at police officers, who responded by spraying them with water cannons and by shooting tear gas into the crowd. At least 10 protestors sought treatment at area hospitals. Some 35 were arrested and released on Wednesday.

The National Police's actions came under fire from protestors, some who demanded officers pay for their medical bills. But National Police spokesman Brig. Gen. M. Taufik said that police officers were injured as well.

"Police asked protesters to leave behind their belongings as they were approaching the Palace, but they reacted instead by throwing [stones]; 17 of our officers were injured after stones were thrown at them," Taufik said at the National Police headquarters.

The officers acted in accordance with police regulations, he added. "Within the context of dispersing crowds, the action was already in line with the standard operating procedures," Taufik said.

Police found 20 Molotov cocktails among the student protestors. A police station, car and motorcycle were destroyed in the violent clash. (BeritaSatu/JG)

10 hospitalized as fuel protests turn violent in Central Jakarta

Agence France Presse - March 27, 2012

Thousands of Indonesians protested nationwide Tuesday to reject the government's plan to hike the subsidized fuel price, with sporadic violence breaking out and injuring several people.

In Jakarta, a clash broke out between police and a group of students near the presidential palace, injuring five policemen and "fewer than 10" protesters, Jakarta police spokesman Rikwanto told reporters.

Around 500 protesters had pelted rocks, petrol bombs and sticks at police, who then fired tear gas and water cannons to disperse the crowd, an AFP photographer saw.

"The group was heading to the presidential palace. We stopped them... but they damaged several public facilities", said Rikwanto, who like many Indonesians only goes by one name. He said 35 people were detained for questioning.

Around 3,500 protesters turned out in Jakarta, much fewer than the reportedly 15,000 people the organizers had promised.

Earlier, around 300 protesters gathered outside parliament house in the capital Jakarta, carrying banners reading: "Fuel hike will put people in misery", and others asking the government to step down.

Around 100 police with batons and riot shields struggled to control protesters, mainly students and labor union members, as they pried open an iron gate to the building.

More than 20,000 police and soldiers were deployed in Jakarta, according to Rikwanto, amid fears of a repeat of violent protests caused in the past by similar plans to hike the fuel. In 1998, riots and unrest partly triggered by a government fuel price rise brought down the Suharto dictatorship.

Protesters also gathered in other major cities, including Medan on Sumatra island where around 6,000 people turned out, and Surabaya in eastern Java where around 3,000 protesters gathered, AFP correspondents saw.

"Fuel hikes will only give additional burden to poor people as it will cause staple food prices to rise," Amir, a student protester, told AFP in the second largest city of Surabaya – About half of the Indonesian population live on less than two dollars a day.

Violence also broke out in South Sulawesi provincial capital of Makassar, where around 2,000 people protested in several places including the governor's office. Protesters there had thrown rocks at anti-riot police, who then fired tear gas to disperse the crowd, an AFP correspondent saw.

Meanwhile, Indonesian parliament members continued Tuesday debating the government's proposal. They are expected to vote later in the week to raise the subsidized fuel price by a third, from Rp 4,500 (49 cents) a liter to Rp 6,000 for private vehicles.

The proposal has been met with widespread opposition both by members of parliament and the public, who fear accelerating inflation. But the government said that without the fuel hike and due to rising global fuel prices, the country's budget deficit will exceed a three percent cap of the GDP stipulated in law.

No government cars, uniforms to work

Jakarta Post - March 28, 2012

Yuli Tri Suwarni and Indra Harsaputra, Bandung/Surabaya – Government employees have been told to dispense office cars and uniforms in order to avoid possible public wrath in the wake of intensifying protests against the planned fuel-price hike.

In Bandung, West Java, Mayor Dada Rosada and Deputy Mayor Ayi Vivananda said that they had abandoned their office cars temporarily. Government vehicles are readily recognizable with their red-painted license plates.

They also called other officials in their municipal administration to do the same to avoid possible acts of vandalism by anti-government protesters.

"The mayor disseminated the call yesterday. We just follow up for security reasons, although my own political party, the Indonesian Democratic Party of Struggle [PDI-P] is siding with the protesters over the fuel-price hike," Ayi said in Bandung, Tuesday.

Ayi said the mayor also recommended against the use of luxury cars to avoid escalating public frustration, as people are already annoyed by facing the fuel-price hike plan, which has triggered an increase in staple foods prices.

Government employees have also been advised not to wear uniforms to work to avoid being a target of angry protesters.

"This is not a call that is given structurally. As civil servants, we can be easily recognized by our uniforms. We are just afraid of being a target of mass amok, especially because Monday's protest turned into chaos," Viky Edya, a staffer at the West Java gubernatorial office, said.

In Surabaya, East Java, head of the municipal administration's public relation division, Nanis Chairani, said that all the police plates of the official vehicles had been replaced with the black ones in anticipation of possible attacks during the fuel-price hike protests in the city.

"The instruction was not given in writing but through text messaging spread among the 72 heads of municipal apparatus working units [SKPD], including district heads and division heads using official cars," Nanis said.

Nanis added that the replacement of the car license plates was temporary and would be returned to their original plates when the fuel-price hike protests were over.

"If they have no time to change the plates, then they are advised to park the cars in the yard of the Taman Surya Park, across from City Hall, for security reasons," she said.

Indonesia asks businesses not to lay off workers due to fuel price hikes

Jakarta Globe - March 27, 2012

The central government has sent a circular to regional heads across the country, calling on them to persuade local businesses against laying off their employees following the planned fuel price hikes on Monday.

Manpower and Transmigration Minister Muhaimin Iskandar sent the circular, dated March 22, to governors, mayors and district heads across Indonesia, according to a press statement from the ministry.

"We're asking governors, district heads and mayors to take measures to prevent possible layoffs of workers," Muhaimin said in Jakarta on Tuesday. He added the government was aware that the planned fuel hikes would impact on industries and workers.

Muhaimin also suggested that companies do their production more efficiently, so as to reduce costs. "By making the production costs more efficient, it is expected that they can avoid laying off workers, without disrupting production process and companies' performances," the minister added.

Police to unleash specially trained female officers on fuel protesters

Jakarta Globe - March 27, 2012

Jakarta Police have a secret weapon to help deal with thousands of protesters expected to march today against the government's plans to hike fuel prices – 50 unarmed female officers trained in understanding the psychology of potentially dangerous mobs.

Sr. Comr. Agung Budi Maryoto, head of the Jakarta Police operational bureau, confirmed on Tuesday that they had dispatched two platoons of female personnel, who were also trained to deal with female protesters.

Agung said the officers – part of a massive security operation involving 22,000 police and military personnel – would be positioned at key areas, including the National Monument (Monas) Park, Presidential Palace and House of Representatives (DPR).

"If most of the protesters appear to be female and then the protest turns violent, male officers trying to deal with them would be prone to sexual harassment allegations," Agung said, adding the deployment was "based on ethics and human rights considerations."

He said the female officers were also expected to help deal with any female protesters who fainted during the protests.

Agung said the unarmed officers, who had been trained to understand the psychology of large crowds, would help to calm mobs with their negotiation skills and calm emotions.

Jakarta Police earlier said on Monday up to 22,000 security officers, including 8,000 military personnel, would be dispatched to secure what were expected to be massive protests.

Police have received a report that at least 8,000 protesters are set to stage protests against the fuel price hikes on Tuesday, although the actual figure is expected to be far larger than that, as both labor unions and student organizations have vowed to join the rallies. (Antara/JG)

Workers banish Dems councilor from rally

Jakarta Post - March 27, 2012

Arya Dipa, Bandung – Workers protesting the planned fuel prices hike in front of the West Java Provincial Legislative Council banished a Democratic Party councilor while he was addressing the crowd on Tuesday.

Awing Asmawi, the Democrat Party faction leader at the provincial council, was booed by workers for his party's support for the planned fuel prices hike. "Bring him down, he supports fuel prices hike," the workers yelled.

Awing was speaking on top of a car after council deputy speaker Ruddy Harsa Tanaya from the Indonesian Democratic Party of Struggle (PDI-P) who said he was with the workers in rejecting the price hikes.

Uu Rukmana from the Golkar Party also stated his opposition to the plan. "Let's pray together that the fuel prices hike is canceled. That's why we have to work together and be solid," Ruddy said, prompting cheers from the workers.

Meanwhile, Awing told the workers that he understood the fuel price hike would have positive and negative impacts. "I am from the Democratic Party and councilors from other parties are listening to your aspirations," he said.

As soon as he expressed his support for the planned hike, the workers started to yell demands for Awing to be brought down from the car roof.

"I support the fuel prices hike. Let's return to our duties," he said. "Let's pray together, if God listens to your prayers, let's hope your prayers are granted.

A number of workers approached the car, trying to bring down Awing, who was prevented from speaking any further by Rukmana. Dozens of police officers approached the car and escorted Awing down from the car and into the legislative council compound. (nvn)

Makassar police deploy 'pretty officers' to calm protesters

Jakarta Post - March 27, 2012

Jakarta – Instead of using water canons or tear gas to disperse protesters, on Tuesday the Makassar Police deployed dozens of police women to negotiate with residents staging protests in opposition to the government's plan to increase subsidized fuel prices next month.

"I deliberately deployed my pretty officers to calm the protesters. How can they resist police women who bring them snacks and drinks? This way, the protesters will think more clearly," Makassar Police negotiation team head Comr. Aisya Saleh said as quoted by kompas.com.

The Makassar Police deployed 30 police women to serve as negotiators in a massive protest opposing the proposed fuel price hike. The officers, standing on the front line, gave away candy and soft drinks to the protesting residents.

The sympathetic approach has been practiced by the Makassar Police over the past two years. The country is seeing a string of protests across the archipelago today. Thousands of police and military personnel have been deployed in many cities to anticipate mass movements. (swd)

Fishermen join fuel protests

Jakarta Post - March 27, 2012

Jakarta – A large group of protesters gathered outside the front gates of the House of Representatives on Tuesday to voice opposition against the government's planned April 1 fuel price hikes.

The group was comprised of labor unions, interest groups and university students. It included the National Fishermen's Union (SNT), the Indonesian Opposition Front (FORI) and the Indonesian Labor Union (SBSI). Police, who were lined up behind the front gates, estimated that there were about 200 protesters.

Demonstrators began gathering outside the gates at around 10 a.m. before ending at 1:30 p.m. Armed with loudspeakers, they had threatened to tear down the House gates. But at around 1 p.m., a speaker announced that they were going to postpone any further actions until Thursday.

"We will save our energy for now. We will come back in two days and we will tear this place down if the government passes its fuel hikes," said FORI coordinator Anwar Sastro Ma'ruf. No injuries were reported. (png)

Airport closed in violent rally

Jakarta Post - March 27, 2012

Apriadi Gunawan and Kusumasari Ayuningtyas, Medan/Surakarta – Protests across the archipelago turned violent on Monday, culminating in the storming of Polonia International Airport in Medan, North Sumatra, which disrupted flights and left hundreds of passengers stranded.

Thousands of protesters cordoned off the country's fourth-busiest airport for five hours on Monday afternoon, demanding that the government abolish a plan to raise fuel prices that is slated to come into effect on April 1.

One activist, Mantono, 26, was rushed to hospital after he was hit in the chest with a rubber bullet fired by riot police, who were backed by the Indonesian Military (TNI).

Authorities fired shots and used tear gas to disperse the crowd after protestors tried to force their way into the airport's building to occupy the runway.

"The stern measures were justifiable as the protesters were getting violent. They wanted to take over the airport, which is a vital facility, which may have risked passenger safety," North Sumatra police chief Ins. Gen. Wisjnu Amat Sastro said.

The chairman of the Islamic Students Association's (HMI) Medan chapter, Erwin Hidayat, said students and members of mass organizations would hit the streets in larger numbers this week to force the government to rule out raising fuel prices.

State airport operator PT Angkasa Pura II, which oversees Polonia International Airport, said no flights were rerouted during the five-hour shutdown, but the true cost of the closure was not yet known.

"It's just devastating. Several of our facilities were ransacked. We haven't calculated the losses yet," Angkasa Pura II general manager Bram Bharoto Tjiptadi said.

The airport, in the country's third-biggest city after Jakarta and Surabaya, mostly serves routes to and from major cities not only in Indonesia but also in Malaysia and Singapore. Most businesses owned by Chinese-Indonesians in Medan also closed down out of fear of riots and looting.

In Bandung, West Java, four activists were injured after police took strong action against protesters who allegedly tried to occupy the governor's office. Members of several labor unions also joined the rally and have pledged to launch more aggressive protests until March 30.

"This is just the start. We're going to get tougher in the coming days," chairman of the Indonesian Labor Union's (SBSI) Bandung chapter, Ajat Sudrajat, said.

In Makassar, South Sulawesi, protesters blocked roads by burning used tires and forced gas stations to shut down.

Wirabuana military commander Maj. Gen. Muhamad Nizam, who oversees Sulawesi, said he deployed 8,000 personnel to secure vital facilities, such as airports, seaports and gas stations from being taken over by protesters ahead of the planned hike in fuel prices.

Protesters in Makassar have been among the country's most militant, with a penchant for torching vehicles and buildings.

The government plans to raise fuel prices by around 30 percent to keep the state budget healthy, as soaring global oil prices have strained the state coffers' ability to pay for subsidies aimed at keeping fuel prices below the market price.

However, as history has shown, such policies contain extreme political risks, including the potential for violent rallies that may harm the position of the ruling government.

The opposition camp, led by the Indonesian Democratic Party for Struggle (PDI-P), has deployed its members to lead rallies in several places to oppose the fuel-price increase.

In Surakarta, Central Java, Deputy Mayor FX Hadi Rudyatmo led thousands of protesters on a march through the city. In Sleman, Yogyakarta, PDI-P executive Idham Samawi, a former regent, joined forces with several councilors touring the regency to protest the fuel policy.

[Additional reporting from Makassar, Bandung and Yogyakarta.]

More than 40,000 join protests

Jakarta Post - March 27, 2012

Jakarta – The National Police have confirmed that 40,800 protesters taking part in demonstrations across the country today, rallying against the government's proposal to increase the price of subsidized fuel.

"We have received reports on the number of protesters in the country today. So far, it has reached 40,800. The number can increase or decrease as the day goes on. In Jakarta alone, the confirmed number is 8,000," National Police spokesman Insp. Gen. Saud Usman Nasution said Tuesday.

He said 127 demonstrations were scheduled for today, out of which 21 demonstrations would take place in the capital, 24 in East Java, 18 in West Java, nine in South Sulawesi and eight in North Sumatra.

"The protesters will come from various backgrounds. They will include supporters of political parties, university students, worker union members, fishermen and many more," Saud told The Jakarta Post via telephone.

To support police personnel charged with maintaining security, Indonesian Military officers would be standing guard as planned. They would be protecting vital areas, such as the State Palace, he added.

According to Saud, in Bandung, West Java, the local police are tightening security at the Gedung Sate gubernatorial office and the Regional House of Representatives compound.

In Medan, following yesterday's occupation of the Polonia airport by protesters, the police are intensifying security measures. "We recommend that passengers use the airport's side entrance to avoid being stuck in the protesters' rally," Saud said. (tas)

Richest 10% use 40% of subsidized fuel, ADB says in backing case for change

Jakarta Globe - March 26, 2012

Tito Summa Siahaan – Indonesia's fuel subsidy must be targeted at the nation's poor even through reducing the fuel subsidy for others is politically difficult, a senior executive from the Asian Development Bank said on Monday.

"The richest 10 percent of households consume 40 percent of the total subsidized gasoline," Jon Linborg, the ADB's country director for Indonesia, said in an e-mail on Monday. "The top half of households use almost 84 percent of the total subsidized gasoline. So the poor benefit the least from it."

The government announced plans to raise the price of subsidized gasoline to Rp 6,000 from Rp 4,500 next month, which could save Rp 41.2 trillion ($4.5 billion) in the state budget. The government also planned to raise the electricity tariff in May, but delayed that to next year in order to ease the inflationary impact of the fuel price increase.

People, including laborers, students, nongovernment organization member and politicians, have gathered in widespread protests against the fuel price rise. Police and soldiers have been called upon to contain rallies that are expected to heighten today.

"Reducing fuel subsidies everywhere is not an easy process," Linborg said. "It involves difficult political process. But it is important to continue the dialogue that fuel subsidy reduction will benefit the poor, provided that the poor are protected from its initial negative impact through temporary inflation," Linborg said.

He cited the temporary cash assistance by the government as part of effort to ensure subsidies go to the poor.

Armida Alisjahbana, the minister of national planning and development, said the government needed to reform its energy subsidy policy.

"We now see that turmoil in the Middle East can easily influence the price of oil and investors increase the ante by buying oil contracts in commodities market. The period of cheap energy is over and now is the time for the government to reconfigure its energy subsidy policy."

It's a misconception that the fuel subsidy cuts are merely the basis for reducing the state budget deficit, Armida said. "It also speaks about energy security. But first the government needs to introduce and invest heavily into a viable alternative that can substitute for the country's reliance on cheap energy."

Armida is proposing the government to increase budget allocation to support fuel conversion program from oil-based fuel to gas-based fuel. The government has allocated Rp 965 billion for the program, but the ministry proposed to increased it to Rp 2.6 trillion.

Government pledges to pay subsidies for workers

Jakarta Post - March 26, 2012

Ridwan Max Sijabat, Jakarta – To help cushion the impact of the fuel price and electricity tariff increases expected in April and May respectively, Manpower and Transmigration Minister Muhaimin Iskandar has promised to provide workers with transport, healthcare and housing subsidies.

The minister said he would fight for the subsidies to help workers survive the economic hardship as a result of the increasing burden on household budgets.

"We are unable to revise monthly wages. So, the subsidies will be a short- term solution to the impact of the fuel price hike," he said after welcoming Said Iqbal, the newly elected chairman of the Confederation of Indonesian Workers Union (KSPI), to his office on Friday.

Muhaimin declined to explain in detail the extent of the subsidies or how they would be distributed to workers because this would be further discussed among relevant ministries and government agencies.

He said low-income workers were the group of people, after the poor and the jobless, who would experience the worst impact of the unpopular policy which is expected to trigger soaring inflation in the price of basic commodities. Without subsidies, the workers' quality of life and purchasing power will deteriorate.

At the same event, the minister assured there would be no downsizing in the labor force, saying he had discussed it with the Indonesian Chamber of Commerce and Industry (Kadin) and the Indonesian Employers' Association (Apindo).

During the meeting, Said informed the minister about a plan by labor unions to stage rallies continuously until May Day. The rallies will be staged jointly with students to protest the unpopular fuel policy and to press the government to seek alternatives and to ease workers' economic burdens.

"The purchasing power of workers will drop at least 10 percent because the recent wage hike was only around 10 percent while the price of premium gasoline will be raised by 33 percent to Rp 6,000 per liter from the current Rp 4,500. Workers and their families will not be able to go to clinics or public health centers when they fall sick because of increasing medicine prices and doctors' fees," he said.

He said trade unionists were certain that the government would raise the fuel price and power tariffs "but we will show our strong opposition and press the government to seek alternatives to assist low-income workers."

The ministry's Industrial Relations and Social Security Affairs director general Irianto Simbolon, who accompanied the minister at the meeting, said the government could set lower tariffs for workers and students after channeling transport subsidies to all public transportation, including passenger buses and trains.

Protesters occupy Medan airport

Jakarta Post - March 26, 2012

Apriadi Gunawan, Medan – Thousands of protesters are occupying Polonia International Airport in Medan, North Sumatra, as part of a rally against the proposed fuel price hike.

The occupation by the protesters, grouped under the North Sumatra Residents' Congress flag, began at 12:30 p.m. Monday and paralyzed the airport, forcing airlines to delay flights. The demonstration also disrupted the distribution of fuel to the airport.

A number of passengers were forced to walk 500 meters to enter the airport as all access roads to the airport were blocked by the protesters.

Tensions between protesters and security officers escalated at around 4:30 p.m. before police used water canons to control the situation. North Sumatra Police chief Insp. Gen. Wisjnu Amat Sastro reprimanded the Polonia Air Force Base commander for not being available at the airport during the protest.

The demonstrators have asked a number of province officials, including Governor Gatot Pujonugroho, to come to the airport and respond their demand of the signing of a petition against the central government's plan to increase subsidized-fuel prices. No provincial officials were at the airport at the time of publication. (swd)

Indonesian food prices rise on fuel fears

Jakarta Globe - March 25, 2012

Arientha Primanita, Dessy Sagita & Ivan Dasa Saputra – A week before a likely increase in the price of fuel, customers at markets are already complaining of rising costs for basic goods.

The government on Sunday plans to raise the subsidized fuel price by 33 percent to Rp 6,000 (65 cents) per liter, although it will announce its final decision on the policy on Wednesday. But the prices of other goods and services are already rising.

Ratno, 43, who sells vegetables at the Kreo market in Tangerang, said vegetable prices have slowly gone up in the past two weeks, with chili recording the highest rise at more than 50 percent. Onions and garlic have also become more expensive, he said.

"I don't want it [the fuel price] to increase because the prices for everything else will be affected," he said. "But what can we do? Even though we don't agree, the government will surely raise the fuel prices, so we will just have to go along."

Sutirno, who has run a stall selling essentials for two decades, noted similar trends over the past two weeks. "The rise that's really been felt is the one for cooking oil," he said. "I buy cooking oil from agents every three days, and every time the prices have increased."

He said this hike in prices has significantly cut into his profits and he worries prices for all goods will rise once the higher fuel price becomes official.

Elin Indriani, a housewife from Tangerang's Ciledug, said she was concerned the fuel price increase will push up the cost of running her household and make the milk she needs for her three young children unaffordable.

State railway operator Kereta Api Indonesia is already preparing to raise train fares for non-economy class tickets in anticipation of the new fuel policy.

Sulistyo Wimbo Hardjito, the operator's commercial director, said he hoped the business and executive class fare increases would be less than 10 percent. Economy class fares are regulated by the government.

Meanwhile, Sofyan Wanandi, the chairman of the Indonesian Employers Association (Apindo), said industries will have to raise the prices of their products and services following any increase in the fuel price.

He estimated that the prices of industry products will have to increase 5 to 10 percent to accommodate the 33 percent rise in the price of subsidized fuel.

"We support the increase in fuel prices as long as the [savings from the] fuel subsidy are then used for infrastructure," he said. "Because everyone will be able to enjoy this [infrastructure development] later, not only enterprises but also the people."

House of Representatives Speaker Marzuki Alie earlier this month urged businesses not to exploit the fuel price increase. "We ask on entrepreneurs, who will have a direct influence on the fate of the consumers, to think about the interests of the people," the Democratic Party legislator said.

Price speculators have been blamed for a shortage of diesel oil in Bontang, East Kalimantan, that has prevented thousands of local fishermen from operating.

Riza Pahlevi who leads the trade, industry and cooperative office of the Bontang district, admitted that only one agent is still selling diesel oil in the city. And even those sales, Riza added, have been limited to 20 liters per head. Boats need between 10 and 30 liters of diesel oil a day.

[Additional reporting by Tunggadewa Mattangkilang & Investor Daily.]

House approval needed before riot troop deployment: IPW

Jakarta Post - March 25, 2012

Jakarta – The Indonesian Police Watch says the Indonesian Military (TNI) must first secure approval from the House of Representatives before deploying troops to help the police handle rallies against the government's proposed fuel price increase.

IPW coordinator Neta S. Pane said the TNI Law stipulated that the TNI could deploy troops for 14 non-war duties, including assisting the police in maintaining security.

"Such assistance, however, can only be given after an official request from the National Police or as instructed by the House, not merely because it is ordered by the government. It is because the TNI is a state apparatus, not an authority," Neta said in a statement on Sunday.

Coordinating Legal, Political and Security Affairs Minister Djoko Suyanto previously said the government would involve military personnel to help the police handle any escalation of protests.

Meanwhile, TNI spokesman Rear Adm. Iskandar Sitompul said that any soldiers tasked with handling demonstrations would not be equipped with firearms but instead use riot control equipment such as shields and batons. (hwa)

PDI-P to join fuel price hike protest rally

Jakarta Post - March 25, 2012

Jakarta – The Indonesian Democratic Party of Struggle (PDI-P) has announced its intention to join protestors rallying against fuel price increases on March 27. A party official claimed that as many as 1 million PDI-P members would join the rally.

"Our party's stance is crystal clear on this issue. Our representatives in the House of Representatives have been contributing enough to the cause and now it is our turn as party members to join the mass rally to protest the government's decision to increase fuel prices," Jeppri Silalahi, the rally's committee spokesman, said on Sunday as quoted by tribunnews.com.

He said the party was waiting for members from the regions to join the rally. He said PDI-P members would gather at Proklamasi Square before moving to the presidential palace.(dic)

West Papua

Former Vanuatu prime minister says MSG leaders have betrayed West Papua

Radio New Zealand International - March 29, 2012

A former Vanuatu Prime Minister, Barak Sope, has condemned the growing links between Vanuatu and Indonesia, which he says ignores the plight of the Melanesian people of West Papua.

Mr Sope has been a long time advocate for the right to self determination in West Papua and says when Vanuatu was founded, a commitment was made that the country would not be free until all Melanesian colonies were free.

He says he accepts Vanuatu having diplomatic relations with Jakarta but granting Indonesia observer status at the Melanesian Spearhead Group was a step too far.

"Now that body was created to get independence and stand against what Indonesia has been speaking. So that is why I say we have got them to come in and sit down and be part of our partners and on the other side they are killing Melanesians and the Melanesian Spearhead Group was set up specifically for those West Papuans who have had Indonesia close the door with what they did in 1962."

Sope promises to put West Papua back on Decolonisation Committee

Vanuatu Daily Post - March 29, 2012

Ricky Binihi – A veteran Vanuatu politician who has relentlessly campaigned for the freedom of Pacific Islanders, former Prime Minister Barak Sope, is not happy with what the government is doing with West Papua.

"Being an advocate for the independence of Vanuatu, Timor Leste, Kanaky, West Papua and Tahiti it hurts my conscience when I have learnt what the current government is doing in relation to the West Papuan issue.

"First it allows the Indonesian government to become an observer of Melanes ian Spearhead Group. What is the wisdom of allowing the worst offender and murderer of our own brothers and sisters in West Papua to sit with us in MSG and lock out the victims, the very Papuan people that we want to protect," Mr Sope said in a statement.

Mr Sope said the next thing Vanuatu signed a cooperation agreement that will shut up our willingness to speak for the Papuan people.

"I am not prepared to live with guilty conscience knowing full well that my actions are contributing to the continue suffering of West Papuan people. I am very sure every Ni Vanuatu will agree with me," the former Vanuatu PM said.

He said he decided to live a private life but seeing how the government is handling the issue, he decided to re-enter politics. This is an issue very close to his heart and as long as he was still here he will not let the people of West Papua, Kanaky and Tahiti down.

"I will stand by them," he said. "Particularly for West Papua I must remind our people of Vanuatu that Indonesia continued to kill and rob them of their rich natural resources. All those who receive money from Indonesia or get assistance from Indonesia must be aware that those money your are getting is blood money. The big question is are you prepared to be seen as part of the robbery?

"The people of West Papua asked me through their organization West Papua National Coalition for Liberation to join them as a member of the recently established West Papua Decolonization Committee to take the issue to the United Nations. I thank them for the trust they have given me and promise that I will not let them down. Perhaps with my previous experience with the New Hebrides case, the Kanaky case and the East Timor issue we will do all we can to resolve this issue once and for all.

"As I prepare to accompany the delegation of West Papua Decolonization Committee to petition the UN Decolonization Committee, I urge you, all the people of Vanuatu to support this initiative," he said.

The Secretary General of West Papua National Liberation Mr Rex Rumakiek said he is happy that Mr Sope, one of pioneers of Independence who with the late Father Walter Lini petitioned the United Nations Decolonisation Committee of 24 in 1978 for Vanuatu Independence, will be part of their delegation to UN later this year.

Vanuatu never signed diplomatic relations with Indonesia because of our strong position on West Papua Independence until 1992 and now some politicians are already considering severing the diplomatic ties with Jakarta if they get into power after October this year.

Australian government wants Papua to continue to be part of Indonesia

Bintang Papua - March 28, 2012

While the Australian government is keen to hear about the present situation in West Papua and is hoping to get inputs from a number of sources, in believes in principle that Papua should continue to be a part of Indonesia.

"Australia fully agrees that Papua should continue to be a part of Indonesia," said Ruben Magai, chairman of commission A of the DPRP, when speaking with journalists during a closed meeting with Greg Ralph and Emily Whelan.

As a mark of its support for this position, it has decided to provide financial assistance via the World Bank, the UNDP and other agencies. "This is a sign of Australia's interest in the Papuan people," said Magai.

He said that Australia was showing its concern by providing financial assistance for the implementation of the OTSUS (special autonomy) law. This financial assistance is intended to help improve the infrastructure, to support the economic empowerment of the Papuan people as well as make provisions for their health and education. "But they need to control how their assistance is being used," said Magai.

He said that the election of the governor of the province of Papua had dragged on, and Australian diplomats were concerned about this. "We wanted to conduct the election in accordance with the Special Autonomy Law of 2001 but there are groups of people who have delayed these elections." But he did not say which groups of people he had in mind.

There were three points that should be borne in mind about the elections, firstly that the candidates should be indigenous Papuans, secondly, that the incumbent should serve a maximum of two terms, and thirdly regarding who should run the elctions, the DPRP or the election commission.

Australian diplomats also had a meeting with Dr Neles Tebay, rector of STFT, the College of Theology, during which they discussed the Third Papuan Peace Congress in Jayapura, the political status of West Papua as well as problems that have occurred in Papua including violations of human rights. Staff members of the embassy also held a meeting with the UP4B and an assistant of the governor of the province.

Australia keen to follow developments in West Papua

Bintang Papua - March 27, 2012

There has been growing international interest in the situation in Papua. This is apparent from the fact tht two countries have instructed their embassies to visit Papua and West Papua.

A while ago, the Dutch ambassador made a visit there and then it was the turn of the Australian embassy to make a visit.

Yesterday, the Australian Political Counsellor Ralph Gregory together with Emily Whelan who is the second secretary at the embassy held meetings with the MRP (Majelis Rakyat Papua) and the Papuan branch of Komnas HAM, the National Human Rights Commision.

Unfortuntely, these meetings did not take place in public, and as a result of which journalists were unable to report on what had been discussed.

The deputy chairman of Komnas HAM, the Rev. Hofni Simbiak said that the Australian visit had been a working visit which happens every year as required by the Australian government.

He said that the Australian embassy had requested information from all stakeholders in Papua who are following developments there. "This relates for instance to the implementation of UP4B, regarding which the embassy wanted to know whether this had been socialised and whether Papuans themselves were aware of this new regulation".

He also said that wherever new districts had been formed, there should be an MRP in each one, with the approval of the central MRP.

As regards requirements with regard to people standing for election as governors of the districts who should should be indigenous Papuans, he said that this was very important indeed, so as to ensure that these people are true leaders of their people and not just the long arm of the central government, which has been the case for such a long time.

He also said there needs to be clarification about the problems to be dealt with by the UP4B in a situation where we, as the cultural organisation for the Papuan people, have the right to express an opinion.

He said it was not clear who was responsible for organising the election of governors. Members of the MRP feel that this problem has been dragging on for years and if it is not resolved soon, the Papuan people will be the ones to suffer as a result. 'If there are any errors in the election regulations, it should be immediately discussed so as to ensure that the elections are peaceful.'

Diplomats from the Australian embassy also held a meeting with Frits Ramandey, secretary of Komnas HAM to discuss the human rights of the Papuan people, bearing in mind that hundreds of Papuans have died recently as a result of political conflicts.

Ramandey said that indeed, a large number of Papuans had suffered violations of their human rights such as during the recent incident in Puncak Jaya when hundreds of people had lost their lives.

(it is not known if the diplomats specifically brought up the military sweep operations currently being conducted with the involvement of Australian financed, armed and trained Kopassus and Detachment 88 counter- terrorist across Papua, which have been responsible for countless brutalities and village burnings in anti-separatist raids for the past year. - WPM)

With regard to the legal status of Komnas HAM, he said that the commission had submitted a draft to the government for Komnas HAM to have a much stronger legal status so as to be able to help the Papuan people to resolve these violations. It also drew attention to the fact that OTSUS, the Special Autonomy law for Papua, stipulated that Komnas HAM must be able to guarantee the basic rights of the Papuan people.

There was also a discussion about the rights of Papuan people living in Australia who need legal protection.

Indonesian soldier killed in Papua

Jakarta Globe - March 26, 2012

Banjir Ambarita, Jayapura – In the latest violence against soldiers in the restive province of Papua, an infantry soldier was fatally stabbed by an unknown assailant not far from his base in Skamto district after dark on Sunday.

The soldier was identified as Muhammad Ihksan, 29, and he died of a stab wound to the right side of his chest after being transported to Dian Harapan Waena hospital.

Ihksan reportedly received a phone call around 4:45 p.m. and stepped outside to take it because the telephone service inside the military compound was weak.

Then, police said, a car drove up and halted nearby. A man got out and suddenly stabbed Ihksan in the chest. The assailant climbed back in the car and fled while Ihksan shouted for help.

The wounded soldier was rushed to a nearby clinic and was referred to the Dian Harapan hospital after receiving first response treatment. He died at the hospital's emergency ward.

Papua has been home to a low-level armed resistance fighting for a free Papua since the 1960s.

Aceh

Ahead of local election, police tighten grip on Aceh

Jakarta Post - March 27, 2012

Jakarta – As the situation in Aceh becomes more volatile ahead of the local election, the National Police are stepping up security measures in the country's westernmost province.

"We have 8,776 personnel specially trained to secure the election. That figure accounts for two-thirds of our total capacity," Aceh Police spokesman Sr. Comr. Gustav Leo told The Jakarta Post on Monday.

The Acehnese will be casting their ballots in the poll on April 9.

Gustav said the officers would be deployed to ensure the safety of candidates during campaigning and to secure 9,768 polling stations across the province.

He also said police had divided up Aceh into three zones according to the level of security threats in each.

In areas considered the safest, which include Sabang and Banda Aceh, one police officer, accompanied by four community watch members, will be responsible for two polling stations. More police officers will be deployed to areas considered less safe for political campaigning.

"Lhokseumawe and Bireuen are two examples of areas with high security threat levels as well as high crime rates. And yet there is a high concentration of polling stations in these areas, with 259 polling stations in Lhokseumawe and 744 in Bireuen," said Gustav.

He added that the recent arrests of alleged terrorist suspects in Aceh indicated that there was a real security threat ahead of the local election. In January, police launched a crackdown on weapons; by March 11, they had confiscated 40 firearms.

Aceh Police and members of the elite Densus 88 counterterrorism unit are reported to have shot dead one terror suspect and arrested one other in a raid on Saturday evening in an escalation of violence ahead of next month's gubernatorial election.

The two, who are suspected of having plotted to disrupt the election through bomb attacks, were caught in a raid at Limpok village, Darussalam, Banda Aceh. The suspect who was killed has been identified as Maimun JF.

Maimun is believed to have been connected to a group of six people in possession of explosives who were arrested in Aceh on March 10. Gustav confirmed that Maimun was part of a terror network.

"Our investigation along with testimony from the six individuals confirmed his involvement in the network. When we intercepted him in Limpok village on Saturday, he tried to escape by climbing a wall," Gustav said.

Maimun was hit by police gunfire and he died on the way to hospital. He was buried in Pasi village, Lhong subdistrict, on Sunday.

Gustav said that Maimun and the six other suspects, identified as K, M, R, S, U and US were planning to launch attacks during the election period. "We are still going after five more suspects related to the group," Gustav said.

The National Police have yet to confirm if the suspects belong to a established terror network.

Meanwhile, leading gubernatorial candidate Irwandi Yusuf, who is also the incumbent, claimed that he had been the target of an assassination attempt by a terrorist group. "They [the terrorists] planned to kill me," he said before his supporters in Kuta Asan, Peusangan Bireuen, on Sunday as reported by tempo.co.

Earlier on March 17, Irwandi's campaign team vehicle was set on fire by two unidentified assailants in Reungkam village, Pirak Timue subdistrict.

A pair of independent candidates from East Aceh, Muslim Hasballah and Marwi Umar, became victims of a similar plot when their car was burned on March 15 in Beusa Beuramo village, Peureulak subdistrict. No casualties were reported in the two incidents. (tas)

Sharia remains priority for candidates

Jakarta Post - March 25, 2012

Hotli Simanjuntak, Banda Aceh – Islamic sharia remains the main political sales pitch among gubernatorial candidates to enable them to win the upcoming Aceh regional election scheduled for April 9.

This was disclosed by candidates when they presented their vision and mission in front of Aceh Legislative Council members and the public at the beginning of the 15-day campaign period on March 22.

"The implementation of Islamic sharia in Aceh has not been as well as expected. We have to uphold the truth and destroy evil before conducting other programs," said Ahmad Tajudin, an independent gubernatorial candidate from the Islamic boarding school, known as pesantren.

Ahmad, popularly known as Abi Lam Pisang, who has paired with Teuku Suriasyah, is one of the five candidates for the gubernatorial election. The other four pairs are Irwandi Yusuf and Muhyan Yunan, Muhammad Nazar and Nova Iriansyah, Darni Daud and Ahmad Fauzi and Zaini Abdullah and Muzakir Manaf.

Ahmad himself is an Ulema chairing a pesantren in Seulimum, Aceh Besar regency. Wearing attire similar to that regularly worn in Iran, he was confident about winning the election.

Besides sharia, Ahmad also offered other programs, mainly for the strengthening of the ulema position as one of the major ways for Aceh to advance.

By strengthening the position of ulemas, according to Ahmad, there will be high hopes that the ulemas will contribute in various fields, including the economy and culture based on the appropriate implementation of sharia.

"We will return to the golden days of Aceh as a prosperous region which was known due to the past glory of Islam," he said.

Similar development programs based on sharia were also offered by the four other candidate pairs. However, even though each of them had their own programs, none of them forgot about the products related to sharia.

Other programs not related to sharia included the plan for free school tuition and health services. Improvement of infrastructure development and realignment of the government apparatus also became major parts of the programs offered by each candidate.

"During my term as a governor, I comprehensively implemented free school tuition and free health services. I want to continue improving the program," said former Aceh governor Irwandi.

As former governor, Irwandi was confident he would be able to garner the largest number of votes in the election.

The problem with improving the quality of education among university students was offered by Darni Daud, who is also former rector of Syiah Kuala University in Aceh. According to him, students in Aceh have to be able to access overseas scholarships without using state funds.

"So far, nearly all scholarships use state money. It's time now to change this so as not to burden the public," Darni said.

Differing from other candidates, Zaini Abdulah from the Aceh Party, which is backed by former combatants of the Free Aceh Movement, gave emphasis to the implementation of points covered in the Helsinki Peace MoU and Law on Aceh administration which have not been fully implemented thus far.

"Everything related to the MoU and the law constitute the peace mandate, which must be dealt with first to ensure all the development processes," said Zaini, who is also a political opponent of Irwandi.

Political tension between the two has led to a series of violent acts and incessant intimidation involving supporters from both camps. "I don't care about the programs. I just want the election to be carried out peacefully," said Syarifudin, a resident of Lhoong, Aceh Besar.

Syarifudin said he just wanted to ensure there would be no more conflict in Aceh so that local people could live in peace without any trauma related to past conflicts.

Social organisations & NGOs

Mass organizations must not be controlled: Academic

Jakarta Post - March 26, 2012

Bambang Muryanto, Yogyakarta – A bill on mass organizations proposed by the government to replace the current Law No. 8/1985 has received strong criticism from academics and students in Yogyakarta who consider the move an attempt by the government to control rather than protect mass organizations.

"The bill as I see it is there as a reaction to violence committed by certain mass organizations, which accounts for why it is based on the construction that mass organizations are problematic," Gadjah Mada University sociologist Arie Sujito said in Yogyakarta recently.

Speaking at a hearing held at the campus with members of the House of Representatives' Special Committee (Pansus) deliberating the bill, Arie said that the government should not consider mass organizations as a threat, but rather as partners.

Providing examples, Arie said that following the powerful earthquakes that devastated Yogyakarta and parts of Central Java in 2006, it was mass organizations and not the government that first came to the affected sites to help survivors, as government rescue forces were paralyzed.

He said it would be a setback if the spirit of the bill was to control mass organizations. Should there be anarchy committed by mass organizations, the police should protect the people.

He also said that there was no need to put an article in the bill requiring mass organizations to state that Pancasila was their principle ideology. They should be allowed to state any ideology they like as long as they it is not against the state ideology of Pancasila, he added.

Hafid of UGM Students Executive Council (BEM) shared Arie's view, saying that mass organizations should be given the freedom to choose their respective principles but must support Pancasila as the state ideology.

Responding to the input, deputy chairman of the Pansus, Michael Watimena, expressed gratitude. "This will really enrich the deliberation of the bill in the future," he said.

Home Ministry expert staff overseeing politics and mass organization Tri Pranadji told the hearing that the bill was not a reaction to recent anarchic acts committed by some mass organizations. "The bill does not have any political motivations. The state just wants to empower mass organizations," he said.

Monitoring and advocacy director of the Center for Policy and Law Studies (PSHK), Ronald Rofiandi, urged the government to withdraw the bill on mass organizations and instead push the deliberation of the bill on associations that had already been included in the 2010-2014 national legislation program (Prolegnas).

Speaking at a discussion forum, Ronald said that mass organizations were not recognized in the legal framework because mass organizations according to Law No. 8/1985 were a creation of the New Order regime intended to control the dynamics of these organizations.

Indonesian law, according to Ronald, only recognizes two different social organizations: Memberless organizations as regulated in the Law on Foundation and member-based organizations as stipulated in an old regulation, Stb. 1870-64, on legal entity organizations.

"The House and the government must return to the right frame, which is the bill on association that is already on the 2010-2014 Prolegnas list," he said.

Labour & migrant workers

Indonesia still lacks formal jobs despite growth

Jakarta Post - March 27, 2012

Elly Burhaini Faizal, Jakarta – Indonesia is still facing high rates of time-related underemployment despite a continued decline in unemployment, indicating failures in the government's job creation program – in spite of rapid economic growth – a report shows.

The International Labor Organization's (ILO) new report on labor and social trends in Indonesia released last week shows that although unemployment has continued to decline, time-related underemployment, or workers who work less than 35 hours per week and are looking for a job or are available for more work stood at 14.1 percent in 2010.

The report also shows that most workers are employed by the informal sector, despite impressive economic growth. The report revealed that informal employment stood at 59 percent in 2010, slightly down from 61.5 percent in 2001. Employment in the regions outside of Java remains largely informal. In Papua, for example, 79.8 percent of employment is informal.

Kazutoshi Chatani, an economist at the ILO Jakarta Office, said that questions should be raised on slow progress on the creation of productive employment given that Indonesia experienced not only rapid economic growth over the past decade, but also saw rapid growth in investment, especially in regions outside Java.

The government recently unveiled the Master Plan for the Acceleration and Expansion of Economic Development of Indonesia (MP3EI) in eight economic corridors expected to spur more investment in the regions outside of Java.

The economic growth was also projected to accelerate in the coming years, standing at 6.6 percent per year on average in between 2012 and 2016, the Organization for Economic Cooperation and Development (OECD) said.

"Obviously, the opportunity is there for more investment and more economic growth. But how to translate this into the creation of productive employment remains in question," Chatani said on the launching of the ILO's report titled "Labor and social trends in Indonesia 2011: Promoting Job- rich Growth in Provinces". The report analyzes labor market trends at the provincial level.

To create more productive employment, Chatani said enterprises should play key roles in turning economic opportunities into job creation. "If you have formal enterprises in the economy and if these enterprises hire more workers, then more workers can work in the formal sector," he said.

That is not the case in Indonesia. According to the ILO report, the number of formal enterprises in Indonesia reached only 1.2 per 1,000 citizens in 2006, far lower than neighboring countries, such as Thailand, which stood at 4.3 per 1,000 citizens and 26.3 in Singapore.

"If Indonesia can create a better business environment, better access to capital, or more streamlined business regulations, perhaps it will have more enterprise, creating more formal employment, thus contributing to a further decline in time-related underemployment," Chatani said.

In the report, the ILO introduced the Employment Diagnostic Analysis (EDA) as part of an effort to accelerate job-rich growth in provincial levels. The method was developed at the ILO headquarters in Geneva and is being tested in East Java, East Nusa Tenggara (NTT), Gorontalo and Maluku.

"In realizing inclusive job growth, there is a need for suitable policy interventions at local levels," said ILO Jakarta Office director Peter van Rooij.

Rachma Iryanti, director for manpower and employment opportunities at the National Development Planning Agency (Bappenas), said creating more labor- intensive manufacturing industries was the key to increasing productive employment.

She said that as 50 percent of the labor force is still classified as low- skilled workers with only an elementary education, the labor-intensive manufacturing industry remains the best option for the government to create more formal employment, although it would provide investors better opportunities for capital-intensive industry as well.

"Slow progress in the creation of formal employment is closely related to constraints in the investment climate, ranging from poor infrastructure to unfinished investment regulations. We still have a lot more to do to improve the investment climate so we can promote more labor-intense manufacturing," Rachma said.

Migrant workers in Hong Kong greet SBY with rally

Jakarta Post - March 25, 2012

Bagus BT Saragih, Hong Kong – About 40 people claiming to be Indonesian workers staged a protest near the Shangri-La hotel in Hong Kong where President Susilo Bambang Yudhoyono was staying during his official visit to Hong Kong.

The workers, grouped under the International Migrants Alliance Hong Kong, chanted protest messages against President Yudhoyono and Vice President Boediono, who they said were "America's puppets and leaders of the anti- migrant workers regime".

At the time of the rally, Yudhoyono was meeting with representatives of Indonesians living in Hong Kong at the hotel.

According to the protesters, domestic helpers had not been invited to the event. "Migrant workers are the second-largest foreign exchange contributor to Indonesia, yet Yudhoyono opted to meet with businessmen to sell Indonesia's assets," said one demonstrator.

Prior to the meeting with Indonesians, the President, along with some of his ministers, indeed had a closed-door meeting with 12 Hong Kong tycoons.

As of December 2011, 150,613 Indonesian domestic helpers were working in Hong Kong, according to Sendra Utami, an official from Indonesia's Consulate General in Hong Kong.

The protesters said they had numerous complaints to deliver to the President. Among the issues was the obligation to pay about HK$21,000 to local agents while their salary was not more than $4,000 per month.

The government plan to increase fuel prices April 1 could result in more Indonesians opting to work overseas, while government efforts to protect migrant workers remained poor, according to the protesters. (swd)

Environment & natural disasters

Aceh forest's last orangutans could vanish within months

Jakarta Globe - March 29, 2012

Fidelis E. Satriastanti – The last remaining orangutans in the Tripa peat forest in Aceh could be wiped out in a matter of months if the slash-and- burn destruction of their habitat continues unabated, activists warn.

"We're no longer talking about a matter of years but of months ahead when there will be no more orangutans there if this continues," said Ian Singleton, conservation director at the Swiss-based PanEco Foundation, a partner of the Sumatran Orangutan Conservation Program.

He was referring to roughly 200 Sumatran orangutans left in the Tripa peat forest in Nagan Raya district, which have found themselves increasingly hemmed in by at least five palm oil concessionaires managing 60,000 hectares of land in the ostensibly protected area.

Singleton said a survey in 2004 showed there were around 280 orangutans in Tripa. "We haven't released the latest study yet, but it will probably show around 200 individuals left," he said. "It could be even less than that."

Activists in the area, he said, have seized at least 15 orangutans being held by villagers in the past few years, but more are still being illegally kept as pets, including by local officials and military personnel.

Wildlife activists contend that the Tripa population is indicative of the fate of all Sumatran orangutans, which are listed as critically endangered – just one step away from extinct – because the area is part of the Leuser ecosystem, which hosts the highest concentration of wild orangutans anywhere.

"The Sumatran orangutan is found mostly in the provinces of North Sumatra and Aceh, which are considered part of the Leuser ecosystem," Singleton said.

"It's the only [viable] place for them in the world. You can find up to eight individual orangutans per square kilometer in Tripa, whereas in highland areas you only get three to four individuals per square kilometer. In Kalimantan, you find much fewer than that."

Graham Usher, the landscape protection specialist for the Foundation for a Sustainable Ecosystem (YEL), warned that palm oil companies posed a grave threat to the Tripa area.

Between June 2009 and December 2011, 5,080 hectares of forest there were cleared.

"The area is in critical condition and has to compete with oil palm concessions," he said. "There's now less than 1,000 hectares, and that's not suitable for biodiversity, for orangutans to live."

He also said that from March 19-24, at least 102 forest fire hot spots had been detected in concession areas, indicating the companies were carrying out slash-and-burn activities to clear the peat forest.

Usher said that in addition to posing a clear threat to wildlife, the slash-and-burn activities were also responsible for releasing huge amounts of carbon dioxide stored in the thick peat layer.

He warned that up to 200,340 tons of carbon dioxide could be released per hectare, which if left intact could prove a lucrative source of local revenue from carbon trading schemes.

"If you assume that each ton of CO2 emissions is worth $10, then you'd be losing $2 million a hectare," Usher said.

"If this keeps on going, then you won't have any forests left in a matter of months." Singleton said the best solution for the Tripa peat forest to recover was to leave it untouched, as rehabilitation projects were expensive and unnecessary.

"When I came here in 1999, it had all been destroyed by massive clear- cutting," he said. "Then I returned in 2005, after the political chaos, and the trees had grown back on their own. "If you just leave the forest the way it is, it will eventually recover by itself."

The Tripa case is also being closely watched by forest and climate activists after the area was dropped from the government's revised forestry moratorium map last November, having initially been included for protection in the first edition of the map just months earlier in May.

A coalition of civil society groups, including YEL, the Indonesian Forum for the Environment (Walhi), Greenpeace Indonesia and Sawit Watch, have filed suit against Aceh governor and former environmental crusader Irwandi Yusuf for issuing a permit to a palm oil company in August, before the area's protected status had been officially rescinded. A ruling in the case is expected early next month.

Fisheries group accuses Jakarta of protecting firms that pollute seas

Jakarta Globe - March 28, 2012

Fidelis E. Satriastanti – The Fisheries Justice Coalition has accused the government of trying to legalize the dumping of toxic waste into the sea.

It said the government's draft regulation on the management of hazardous and toxic substances ignored the United Nations Convention on the Law of the Sea and would open the door for polluters.

Indonesia has ratified the UN convention, which obliges it to take steps to prevent, minimize, and overcome sea contamination.

The fisheries coalition, or Kiara, urged President Susilo Bambang Yudhoyono to revise the draft regulation to close loopholes it said would allow companies to legally dump dangerous waste in the ocean.

It said the country needed tougher laws in place to protect its waters from the dangerous practice of dumping hazardous materials at sea.

"There are at least five reasons to reject the government's draft regulation on toxic dumping," Kiara's secretary general, Riza Damanik, said on Tuesday. "It seems that the government is trying to protect environmental polluters by legalizing the dumping of waste at sea."

Riza said the draft regulation only called on industries to voluntarily limit the production of dangerous waste instead of making it obligatory.

"The dumping of tailings [mining waste], for example, endangers the marine ecosystem and food chain," he said.

However, the Environment Ministry's deputy for hazardous and toxic waste, Masnellyarti Hilman, denied that the draft regulation legalized the dumping of waste into the sea.

"It doesn't mean that companies are free to dump their waste. The regulation requires certain conditions to be met before they can dump waste into the sea," Masnellyarti said. "The conditions are stipulated with the aim to eliminate or minimize the impact of waste dumped into the sea."

She added that the draft regulation was written after intense discussions with experts.

In a recent case involving hazardous waste, a scrap metal exporter from Britain agreed to take back waste it had sent here.

"Britain said it would send a notification letter to take the containers back. The exporter, Stemcor UK Limited, will re-export it and it will reach England by April 30," Masnellyarti said.

The Netherlands is helping to find where the waste originated. "The Netherlands is trying to find out the origin of the waste, whether it was from that country or whether came from another country," Masnellyarti said.

In January, customs agents working with the Environment Ministry found 113 shipping containers said to contain scrap iron but in fact held contaminated electronics waste and asphalt.

Some of the containers, which arrived at North Jakarta's Tanjung Priok Port, were oozing a white liquid.

Waste disposal regulation unhealthy, say environmentalists

Jakarta Post - March 28, 2012

Margareth S. Aritonang, Jakarta – A coalition of environmental groups is urging the government to revise a draft regulation on toxic waste management, saying some articles might legitimize environmental degradation.

The Indonesian Forum for the Environment (Walhi), the People's Coalition for Fisheries Justice (Kiara), the Mining Advocacy Network (Jatam) and the Legal Aid Institute (LBH) suspect some big companies have played a role in drafting the regulation.

The draft regulation is currently under discussion at the Environment Ministry.

Article 20 of the draft regulation stipulates that the environment minister is authorized to declare any waste clean if scientific research says so. Thus, the waste is taken out of the hazardous and toxic category.

In addition, Article 55 does not compel companies to seek permits for the management of hazardous and toxic waste as long as they recycle and reuse them based on the national standard, which will later be set by the Environment Ministry.

"We find some articles, such as articles 20, 55 and 94, problematic. Those articles are detrimental to the environment as they don't compel companies to properly manage their waste," Walhi executive director Berry Nahdian Forqan recently told The Jakarta Post.

"These articles will open chances for suspicious lobbying between companies and the ministry. They can even lead to companies avoiding responsibility over the management of their toxic waste. Article 55 is also confusing as it does not require companies to seek disposal permits as long as they recycle and reuse their waste.

"How could [hazardous and toxic] waste be easily considered 'not harmful' only by changing its outer package?"

Berry said that Article 94 would allow PT Newmont Nusa Tenggara (NNT) to continue dumping mining waste into the sea. The article allows dumping waste into sea waters more than 100 meters deep.

"We suspect this particular article is made to legitimize the Environment Ministry's controversial policy of extending the permit for PT Newmont Nusa Tenggara to continue dumping its mining tailings into the Senunu bay, endangering marine life," he said.

Walhi and other environmental groups have filed a lawsuit demanding the overturning of the permit. The Jakarta State Administrative Court (PTUN) is scheduled to hand down its ruling in early April.

PT NNT, a subsidiary of the US-based Newmont Corporation, has been dumping mining tailings into the bay since 1999, in accordance with a license issued by the Environment Ministry.

Activists have long warned the government not to extend the permit allowing Newmont to dump mining tailings into the bay, saying it endangered marine life.

But the Environment Ministry renewed the permit on May 5 last year, arguing that PT NNT controlled the composition of its tailings far better than the government required it to.

Separately, the Deputy Environment Minister for hazardous and toxic waste management, Masnelly, has denied that the regulation had been drafted to favor PT Newmont Nusa Tenggara or any other relevant company.

Transparency is vital: Walhi

Jakarta Globe - March 26, 2012

A leading environmental group has called on the government to be transparent about policy changes after the Tripa peat forest in Aceh was scrapped from a protected area.

A map listed the peat swamp as protected when it was first issued in May 2011, but a revised map issued in November changed its status. Muhammad Teguh Surya, a spokesman for the Indonesian Forum for the Environment (Walhi), said future changes should be made with greater transparency.

"Otherwise we are being asked to blindly trust in the Ministry of Forestry and the National Land Agency, two agencies with a long track record of dubious behavior," he said.

Health & education

Urban poor 'fear' contraceptives

Jakarta Post - March 31, 2012

Elly Burhaini Faizal, Jakarta – Poor women in urban areas are reluctant to accept contraceptives offered to them for free, hampering efforts to slow the country's population growth.

Few were even aware of the importance of using contraceptives, National Family Planning Board (BKKBN) deputy chairman Julianto Witjaksono said.

"Poor people are somewhat reluctant to seek contraceptives, saying that they have no money to get contraceptives at care centers," he said at a media briefing. In fact, he said, contraceptives for low-income families were free of charge.

"I think they have a particular way of thinking that we find hard to change," Julianto said, adding many considered children as investments.

Elvi Royyana, 43, a midwife from an East Jakarta community health center (Puskesmas), said it was not easy to encourage people to use contraceptives, especially long-term ones such as implants or intra-uterine devices (IUD).

"Many people are reluctant to use IUDs, saying that it will cause severe bleeding and affect their sexual pleasure – which is totally wrong," she told The Jakarta Post.

Of the 192 patients who received contraceptives at the Puskesmas, just five had the implanted types and 15 received IUDs. The rest chose contraceptive injections.

According to the 2007 Indonesia Demography and Health Survey (SDKI), fertility rates are greatly differ between the poor and wealthy.

Julianto said that uncontrolled population growth could place a greater economic burden on poor families, which would eventually produce social problems. As of last September, 10.95 million of the country's 29.89 million poor people lived in cities, Central Statistics Agency (BPS) data states.

Recent BKKBN research shows that urban poor people in Indonesia have an average of three to six children. In Semarang, Central Java, the number of children born to some families even reached up to 10 people. With such huge numbers of children, parents bear a heavy burden in raising their children.

"In West Nusa Tenggara (NTB), for example, many children dropped out of elementary schools and are working only as construction laborers or half- unemployed workers in their adulthood," BKKBN researchers concluded in the study, which took place in the three provinces with highest number of poor people: Central Java, NTB and Gorontalo.

The BKKBN's acceptors-management director, Wicaksono, said many poor people had trouble just traveling to receive contraceptives.

"Even if contraceptive care is available in community health centers, many urban poor people face difficulties to reach the available care. They must spend a lot of money to transport them to care centers," he said.

In 2012, the BKKBN rolled out family planning programs in urban slum and poor areas in cities of 10 provinces, comprising Banten, Central Java, DKI Jakarta, East Java, East Kalimantan, Maluku, South Kalimantan, South Sulawesi, West Java, and West Kalimantan.

The program allows poor people to receive better access to family planning and contraceptives in hospitals, maternity clinics, community health centers, private clinics and even from a mobile team. People in slums, the homeless and those without identity cards are eligible.

Teachers still beating their students in Indonesia

Jakarta Globe - March 27, 2012

Ulma Haryanto – Violence remains a part of the education system in some part of the country, the nongovernmental group Plan Indonesia said over the weekend.

Wulan, a student sponsored by the NGO in Rembang, Central Java, said teachers at her school regularly used violence against students.

"There's one teacher who often spits at the students," she said at an event in Semarang, Central Java, over the weekend to mark Plan International's 75th anniversary. "The principal has been asked to admonish him because that kind of treatment scares the kids and makes them lose confidence."

Wulan said she also once saw a teacher at her school drag a boy along the street and repeatedly hit him with a palm branch for skipping Friday noon prayers.

Nono Sumarsono, the Plan Indonesia program director, said that in many regions in the country, the use of violence against students was still enshrined in the local education system.

"In East Nusa Tenggara, for instance, there's this philosophy that 'at the end of the rattan cane, there's gold,'?" he said. "The idea being that if you educate children with violence you get gold [good results]."

In some regions, he said, teachers come to class each day brandishing a rattan or bamboo cane for hitting their students.

"We're trying to gently change people's mind-set so that they embrace the philosophy that 'at the end of compassion, there's gold,'?" Nono said. "Plan is fully committed to actively protecting children from violence and ensuring that their rights are upheld."

He added that Plan's advocacy focus this year would be on birth certificates, violence and education. "We chose these three themes because they're all interconnected and have wide-ranging implications," he said.

Some 32 million Indonesian children do not have birth certificates and cannot enrol in school, according to 2007 government data.

Indonesia warned to invest more in education

Straights Times - March 27, 2012

Zubaidah Nazeer – Two international organizations have warned Indonesia in separate reports that strong economic growth alone cannot guarantee more jobs, especially outside Java. There is an urgent need, they say, for more investment in education to improve the quality of workers.

The International Labour Organization, in its report, noted a skills mismatch over the last decade as education struggled to keep up with shifting job market demands. As a result, Indonesians in the top ranks have seen their income rise while the wages of low-skilled workers have stagnated.

Separately, economists from the Asian Development Bank say investment in education is crucial to transform Indonesia from a middle-income to a high-income economy which generates higher gross domestic product and employment.

The economists were speaking at the launch of a book on the Indonesian economy yesterday. Both the ILO and ADB say funds for education have to be backed by spending to build better infrastructure, improve governance and reduce poverty.

The analysis by the two global institutions is timely as Indonesia prepares to raise fuel prices on Sunday. The unpopular move, the government says, is necessary as crude oil prices continue to rise and budget spending on fuel subsidies balloons, surpassing expenditure on infrastructure and social assistance programmes.

Concerns that higher prices could fuel inflation and make life even harder for the poor have led many Indonesians to take to the streets, with students and workers threatening to strike.

There is also a general mistrust of government measures, such as cash handouts for the poorest and transport subsidies, to cushion the blow of the hike.

But the ADB economists, taking a different view, believe the measures are adequate and that the short-term pain is necessary to guarantee a long- term gain for the economy. Said its chief economist Changyong Rhee: "It is a very courageous move and will take the economy in the right direction even though it is not popular."

Still, more than 80 per cent of those who benefit from current subsidies are middle- and upper-income families, and not the intended recipients.

But National Development Planning Minister Armida Salsiah Alisjahbana said the government has put in place measures such as compensation for the poor and limiting the number of vehicles on the roads to ease transportation costs that could spiral as a result.

Analysts say the time to implement such hikes is now, when the economy is stable and strong, and inflation is under control. The government should seize the moment to prioritize spending and roll out more poverty- alleviation measures, they add.

The Indonesian economy expanded 6.5 per cent last year, its highest GDP growth in over a decade. It also saw record investments of $19 billion and its debt rating was upgraded by two rating agencies.

While unemployment has declined recently, nearly two-thirds of jobs are found in the informal sector.

The ILO report noted that while the average number of years spent in school has increased, unemployment among senior high school graduates also remains high.

Some 10.2 per cent of young people are neither in school nor employed. High under-employment and unemployment are signs of a lack of job opportunities, the report said, and may be due to a skills mismatch as the economy shifts from traditional sectors such as agriculture to the service sector.

Economists call for 17 infrastructure projects costing Rp 190 trillion ($20.71 billion), which are part of the government's economic growth masterplan, to be implemented to ensure good connectivity across the sprawling archipelago, and eventually reduce poverty.

With greater access, investors can consider putting money in provinces other than those in Java and Sumatra, which now contribute 82 per cent to Indonesia's GDP, the ILO said.

Stigma of leprosy nearly as bad as the disease itself

IRIN - March 26, 2012

In Indonesia, a diagnosis of leprosy can cut patients off from family, employment, public services, even marriage and places of worship, health officials say.

According to a recent World Health Organization report, Indonesia ranked third globally in 2010 with 19,785 registered leprosy patients, behind Brazil with 29,761 and India with 83,041. By the end of 2011 there were 22,726 recorded cases in Indonesia, with approximately 1,900 under the age of 15.

Leprosy is caused by a bacillus transmitted by air through droplets from the nose and mouth during frequent contact with untreated persons. Without treatment, the disease can lead to permanent nerve damage and muscle paralysis, according to the WHO.

People with leprosy often face social ostracism, especially when they lose limbs, which can be eaten away by infections that go unnoticed or treated due to lack of sensation in the fingers and toes, and also by facial deformities caused by damaged nerve tissue.

H.M. Subuh, a senior Health Ministry official for infectious diseases, said that there is widespread stigma associated with the disease and the people who suffer from it.

"They are rejected by public services, experience difficulties in finding new spouses after divorce from their previous partners due to their diagnosis, and they have also been rejected in religious places."

Intan Setiadi, coordinator of a leprosy patient group in Tangerang, West Java, explained that even children are not spared. "If children have been disabled by the disease, if they have lost fingers or toes, then they too can become stigmatized."

Sitanala Hospital in West Java is one of three state hospitals in Indonesia with a unit specifically for leprosy patients (the others are in South Sumatra and South Sulawesi). The local government covers the cost of care, along with the WHO, which provides medication.

Once patients have been treated for the disease there is no risk of passing it on to others, but about 60 post-treatment patients are still quarantined in the Sitanala District Hospital.

"Other patients would not want to come to this hospital if they thought that leprosy patients were mixed in with other patients," said Ruli, a doctor working at the hospital. "Due to the stigma, and to ensure that we can attract other patients, we must have a separate leprosy facility."

Ruli says that what she calls "leprophobia" is common. "The disease can be considered a curse. People are scared when they hear the name but they don't really understand the disease. We all have something in common here."

Marcus used to work for a logging company in Kalimantan. In the 1980s he contracted leprosy and lost toes and fingers. Eventually he came to Sitanala District for medical help.

"Once my family knew what I had, they were scared of what the rest of the community would think," the 72-year-old said. "I didn't want my family to be shunned by the community, so I left and came to a place where I would be more accepted."

He never returned to work after contracting the disease, opting instead to live in a village in the hospital compound with hundreds of others who have had leprosy. The hospital provides older leprosy patients in the village with free accommodation and three meals daily.

Groups oppose new Higher Education Law

Jakarta Post - March 26, 2012

Rabby Pramudatama – A coalition of education watchdogs and university students is campaigning to reject a new law on higher education that is slated for endorsement by the House of Representatives next week.

The group said that the new Higher Education Law, which would replace the educational legal entities, carried the same spirit as that of the latter, which had been revoked by the Constitutional Court for promoting aggressive privatization of higher education.

"Article 77 of the bill defines three categorizes of universities: autonomous, semi-autonomous and limited autonomous," Jakarta Legal Aid Foundation (LBH) public lawyer Alghifari Aqsa said on Sunday.

By bestowing autonomy on universities, the law would allow the management of colleges to charge students exorbitant tuition fees, which would in turn drive away poor students. The coalition was convinced that the bill was a rehash of the controversial 2008 Educational Legal Entities.

The controversial law required all educational institutions to become legal entities within six years of the law taking effect. The legal entities were given autonomy to develop their own resources and build academic capacities, as well as to mobilize their own financial resources.

"We have learned from the facts that tuition fees have soared in all seven universities that have been turned into autonomous entities based on the BHP Law," Alghifari said.

Head of the University of Indonesia's (UI) Law School Student Executive Board Ali Abdillah said that aggressive privatization had made it difficult for students from poor families to enter UI.

He said that there was now a certain method to gauge the financial ability of prospective students at the UI. Ali also said he suspected that the autonomous status of the UI had made the institution less answerable to the public.

"The university has built so many infrastructure projects without transparent accountability reporting. This is what happens at the UI. There are many competent enough students who were reluctant to apply to the UI simply because they had no money," he said. University of Indonesia was the first university to be turned into an autonomous legal entity.

The UI currently charges between Rp 100,000 (US$11) and Rp 7.5 million per semester per student, depending on the program and the financial capability of the student. It also charges a one time entrance fee of Rp 5 million to Rp 25 million.

In 2010, the Constitutional Court scrapped the controversial law on educational legal entities, which critics said had turned universities into corporations.

Graft & corruption

An old boys' club no more: The many young faces of Indonesian corruption

Jakarta Globe - March 31, 2012

Nivell Rayda – Running through the heart of Jakarta, Jalan Sudirman has long been the city's economic center, adorned with high-rise buildings and overwhelmed by crippling traffic.

But for a brief period in 1998, the street belonged to the student-led pro-democracy movements, and to all those who desired change after 32 years of dictatorial rule under President Suharto, whose New Order planted the seeds of corruption.

Indonesians may have ousted Suharto in the end, but they have failed to quash his insidious legacy of rampant corruption, and the new generation of public servants is now as much a part of the problem as the old.

"Corruptors seem to be getting younger by the day," said Constitutional Court then-chairman Mahfud M.D. in an interview last August.

Indeed, a new breed of scoundrel is emerging in Indonesia, one that is even greedier than before, more shameless – and unusually precocious. Two people epitomize this new wave of young corruptors.

Gayus Tambunan, now 32, amassed more than Rp 100 billion ($11.2 million) in wealth with a salary of Rp 9 million per month as a mid-level tax examiner.

Gayus is serving an unprecedented 28 years in prison for bribing law enforcers, bribing his wardens at the Mobile Brigade headquarters where he was detained, falsifying his passport used to travel abroad when he was supposed to be in jail, money laundering and receiving bribes from clients while serving at the tax office – bribes totaling $659,000 and 9 million Singaporean dollars ($7.2 million).

"Gayus must have set some kind of record for greed and corruption," said his former boss, Tax Court head Tjip Ismail. "Even during the Suharto days, [$11 million] was a lot of money, and you couldn't amass that kind of wealth without being heavily connected to power or attracting people's attention."

The Attorney General's Office recently investigated another tax official with huge bank accounts: 38 year-old Dhana Widyatmika.

Then there's Muhammad Nazaruddin, 33, a former lawmaker, successful entrepreneur and treasurer for the ruling Democratic Party. Arrested last August in Colombia after weeks on the run, he is accused of soliciting Rp 28.8 billion in payoffs – he only managed to get Rp 4.8 billion – from two companies for whom he helped secure a lucrative government project.

Nazaruddin's wife, Neneng Sri Wahyuni, 30, is now wanted in another tender-rigging case. His nephew Muhammad Syarifuddin, 29, has been detained for abetting Nazaruddin's 70-day escapade through Asia, Europe and Latin America.

Another Democratic Party lawmaker, Angelina Sondakh, 34, is also accused of receiving funds from the construction of the athletes' village for the Southeast Asian games.

There is also Puguh Wirawan, a 35-year-old curator overseeing a bankruptcy case who was jailed for providing a judge with a Rp 250 million payoff in exchange for overvaluing his client's assets by Rp 10 billion.

Failing reforms

Danang Widoyoko, chairman of Indonesia Corruption Watch, the country's most prominent anti-graft group, said the Gayus and Nazaruddin cases "serve as an example that the government's bureaucratic reform efforts have failed."

"For many institutions, reform means more money for officials, but at the same time oversight and transparency [are] virtually nonexistent," he said. He added that he believes the key to the rise of this neo-corruption is the preservation of the same corrupt system.

"If the system is unchanged, then new recruits eventually follow the same corrupt habits of their superiors," he said. "In fact, their tactics are even more sophisticated as they explore new possibilities."

The Ministry of Finance, where Gayus worked, is one institution that has undergone massive changes in its remuneration system. High-level salaries have risen nearly 1,000 percent since 1998 – but with little internal oversight, public officials like Gayus still find ways to amass ill-gotten wealth.

After the fall of Suharto, Indonesia enacted the Law on Corruption in 1999 and established the Corruption Eradication Commission (KPK) in 2003.

Investigations by the KPK, which has a very high conviction rate, have shown that graft pervades even the most lofty institutions. The agency has found evidence implicating judges, prosecutors, governors and district heads across the country. In the House of Representatives, a total of 42 lawmakers have been imprisoned since 2007 in a number of cases ranging from bribery to extortion.

The KPK has also worked on prevention, coordinating an Anti-Corruption Initiative Assessment of public institutions and their progress – or lack thereof – in enacting its recommendations regarding transparency and accountability.

But those most heavily criticized in the assessments rarely act on the feedback, often brushing off the recommendations as "valuable input."

Changing faces of corruption

The Reformation movement that followed Suharto's ouster paved the way for the decentralization of power, bringing greater independence to ministries and regional governments. It also gave greater power of oversight to the House of Representatives and its independent commissions.

However, Transparency International Indonesia secretary general Teten Masduki believes corruption has gone from involving a few bureaucratic elites to a widespread phenomenon.

"In the Suharto era, we knew who the players were: the cronies and the well-connected," Teten said. "But now, everyone can directly involve themselves in the labyrinthine web of graft.

"Corruption now has many faces; it is less systematic but more widespread with a multitude of entry points, be it from the executives, the legislature or the judiciaries."

Sofyan Wanandi, the chairman of the Indonesian Employers Association (Apindo), said the die-hard culture of corruption in Indonesia could be explained by the simple economic rule of supply and demand.

"For businesses it is simple," he said. "There is a demand for legal certainty, a demand for swift bureaucratic process, and a demand to end discriminatory treatment for the haves and have-nots.

"If we can devise a system to meet these demands, the need for providing officials with payoffs will die out. But to do that we need a stringent leadership, and that is what's lacking."

President Susilo Bambang Yudhoyono has said he believes Indonesia's fight against corruption "is still on the right track."

The Ministry of Finance has demonstrated a zero-tolerance attitude toward graft, replacing nearly 3,000 officials since the Gayus scandal broke. But the ICW's Danang said anticorruption programs at other government agencies had been less effective and vague.

"How do they expect to curb corruption through anticorruption training and making officials sign 'integrity pacts' while doing little to ensure better transparency in public offices?" he said.

The KPK has found that officials are still reluctant to declare their wealth, report gifts that could affect their professional objectivity, report graft or accommodate public demands for scrutiny. Old problem, new players

Indonesia should have brought former President Suharto to justice, Danang said, noting how much the imprisonment of Hosni Mubarak meant to Egypt after protests toppled his regime in early 2011.

"Suharto behind bars would have sent a powerful message to corruptors," Danang said. "Instead, his legacy remains embedded in the mentality of the bureaucrats who publicly say they are against graft but secretly long for the Suharto era."

Indonesia did try to prosecute Suharto shortly after he was removed from office, but with many of his supporters still in power, the attempt failed.

The Suharto family and its cronies own hundreds of companies, including television stations, banks, hotels and mining and logging companies. According to a 2008 article by Worldpress.org, Suharto's alleged misappropriation is estimated to have been around $73 billion during his regime. Transparency International in 2008 listed Suharto as "the world's most corrupt leader of all time."

After Suharto died in 2008, the case was not revived. There remain those who revere Suharto and support efforts to name him as a national hero.

Times change, but as the cases of Gayus and Nazaruddin demonstrate, corruption endures – and it seduces even those of the younger generation that symbolically threw it out.

In December 2011, Indonesia's anti-money laundering agency, the Financial Transaction Reports and Analysis Center (PPATK), announced it had discovered 10 young public officials with suspiciously large bank accounts containing billions of rupiah each.

"I thought the account holders were conspiring with their superiors, but no. They did it themselves," PPATK deputy chairman Agus Santoso said. "[Illicit funds] are being funneled to their wives' accounts, one official's two-year-old daughter was insured for Rp 2 billion and one official had Rp 5 billion in insurance under his five-year-old son's name."

On Jalan Sudirman, a former student activist sipped freshly brewed coffee at a cafe and reflected on the fall of the New Order. "You don't suppose Gayus or Nazaruddin were among the students in the movement, do you?"

There was a long pause. "They couldn't have been," he said finally. "If they ever felt the sting of a rubber bullet or tasted a police baton, there is no way they could've done what they did."

[This article first appeared in Global Integrity Report: 2011, a major investigative study of 31 countries released by Global Integrity, an international nonprofit organization that tracks governance and corruption trends globally.]

Indonesia gets points for trying on corruption

Jakarta Globe - March 31, 2012

Indonesia may score high marks for its legal framework for combating corruption, but it loses something in the execution, according to a study released in Washington on Friday.

In a study that looked at governance and anticorruption mechanisms in 31 countries, Washington-based group Global Integrity put Indonesia's overall score at a respectable 81 out of 100.

At 95, the country's legal framework is considered "very strong" – but in terms of implementation, it rated a relatively "weak" 69.

The group noted that in practice, judicial decisions were sometimes not enforced by the state and citizens often did not have equal access to the justice system. "In general, there is a lack of trust of among the general public about judicial fairness in Indonesia, especially among disadvantaged citizens," the report says.

The "small people or disadvantaged citizens," it adds, often receive the maximum sentence, while "big people or people with money and power" receive the minimal sentence, and sometimes their charges are downgraded.

Global Integrity says Indonesian law enforcers have sufficient funding to fulfil their mandate, which includes combating graft, but notes that they are also susceptible to political interference.

By law, citizens are entitled to lodge complaints about infractions by law enforcers, but not all reports result in action being taken, the report says. Between January and September 2010, the National Police Commission received 928 complaints regarding police behavior. Only 465 were resolved.

In 2009, 429 police personnel were fired for involvement in criminal activity, lack of discipline or violations of the police code. In 2010, 272 police officers were fired for similar reasons and 88 between January and July 2011.

But Indonesia scores fairly well in terms of reporting on corruption in the media – 78 out of 100 – while antigraft groups in the country appear to be fairly effective in that role with a rating of 81. Despite this, activists and journalists still often face intimidation and threats for exposing corruption cases.

The report highlights an attack against Indonesia Corruption Watch activist Tama Satrya Langkun in July 2010 and many cases in which journalists were killed, attacked, threatened or imprisoned for reporting on corruption scandals in 2010 and 2011.

In December, a mob stoned and burned down the home of Dance Henukh, a reporter with the Rote Ndao News tabloid in East Nusa Tenggara, killing his newborn daughter.

Prior to the incident, Dance had written about corruption allegations surrounding the construction of 100 houses for transmigrant workers in Kuli village.

Global Integrity examined developed countries such as the United States, Ireland and Germany for the report as well as dozens of the world's emerging markets and developing nations, from Algeria to Ukraine to China.

Rather than measure perceptions of corruption, the report uses 320 "Integrity Indicators" to assess the accountability mechanisms and transparency measures in place to prevent corruption – or lack thereof.

"The country assessments that comprise the report offer among the most detailed, evidence-based evaluations of anti-corruption mechanisms available anywhere in the world," said Global Integrity's executive director, Nathaniel Heller.

"They provide policy makers, activists and citizens alike with the information to understand the governance challenges unique to each country and to take action."

KPK chief answers ethics accusations

Jakarta Globe - March 30, 2012

Rangga Prakoso – The country's antigraft chief says he sees a conspiracy to oust him behind an ethics complaint over his handling of two high- profile graft cases.

Abraham Samad, the Corruption Eradication Commission (KPK) chairman, has been reported to the commission's ethics body over his alleged breach in naming two graft suspects without first receiving the approval of other KPK leaders.

He named Miranda Goeltom a suspect in a bribery case at the central bank, and legislator Angelina Sondakh in connection with a graft scandal surrounding the Southeast Asian Games.

"It's just funny if it is true that I was reported to the ethics commission," he said on Thursday. "That's just part of the efforts to get rid of me." He did not say who he thought was conspiring against him.

Abraham insisted he followed all procedures in naming the two as suspects, which he did without the presence of the anti-graft body's four deputy chairmen.

Before December, when Abraham was named chief, the KPK leadership had always appeared together to name suspects. Abraham has changed that, naming suspects himself.

Miranda is suspected of bribing lawmakers in 2004 to win a deputy governor position at Bank Indonesia. Angelina is caught up in the athletes' village scandal that is threatening to draw down several other Democratic Party officials.

Abraham also denied meeting with President Susilo Bambang Yudhoyono, the chairman of the Democratic Party's advisory board, and board deputy chairman Marzuki Alie at the president's private residence in Cikeas, Bogor, to discuss the SEA Games case.

"Never. I don't even know where Cikeas is," he said. If the ethics commission wants to talk, Abraham said, he is ready to answer any questions. "I'm ready [to face] anyone on earth, especially when I didn't do anything wrong," he said.

Miranda and Angelina have not been detained, pending the completion of their case files by KPK investigators. "The KPK has surveillance protocols that allow us to anticipate any effort to flee or tamper with evidence," Abraham said.

Miranda was named a suspect on Jan. 26; Angelina was named one on Feb. 3.

Muhaimin subordinates get three years each

Jakarta Post - March 29, 2012

Ina Parlina, Jakarta – The Jakarta Corruption Court sentenced two subordinates of Manpower and Transmigration Minister Muhaimin Iskandar to three years in prison each for accepting kickbacks in a bribery case related to the funding scheme of the Infrastructure Development Acceleration Program (PPID).

In two different trials on Thursday, the judges found the secretary of the ministry's directorate general for development of transmigration areas I Nyoman Suisnaya and head of evaluation and report unit at another directorate Dadong Irbarelawan, guilty of accepting Rp 1.5 billion in bribes from a Papuan based company.

"The defendant is proven guilty and therefore we sentence him to three years in prison and order him to pay Rp 100 million in fines or he must serve an additional three months' imprisonment," presiding judge Sudjatmiko said in Nyoman's trial.

However, the judges disagreed with the prosecutors' charging of the suspects with taking kickbacks under Article 12 "point b" of the 2001 Anti-Corruption Law, which carries a maximum sentence of 20 years in jail.

Both panels of judges, presided by Sudjatmiko and Herdi Agusten, found them guilty of violating a different article, Article 5 (2) of the law, which carries a maximum of 5 years imprisonment.

Previously, the prosecutors demanded the court sentence Nyoman to five years in jail and Dadong to four years and six months.

The two panels of judges concluded that the two were barred from receiving any gifts or cash in their capacity as a public official.

The bribery case made headlines after Nyoman and Dadong were allegedly caught accepting Rp 1.5 billion in bribes from businesswoman Dharnawati of PT Papua Alam Jaya on Aug. 25 last year.

The cash was part of Rp 2 billion to be paid by Dharnawati to win an infrastructure project in four areas in Papua which used the PPID fund scheme. Dharnawati had yet to supply the remaining Rp 500 million.

Dharnawati is now serving two years and six months in prison.

Terrorism & religious extremism

Indonesian police shoot dead two terrorist suspects near Jakarta

Agence France Presse - March 30, 2012

Indonesian police killed two suspected terrorists in a raid on the outskirts of Jakarta on Friday, a force spokesman said, less than two weeks after officers shot dead five suspects on the resort island of Bali.

"The suspects tried to escape with a gun, triggering a shootout with the police who shot the two instantly," National Police spokesman Insp. Gen. Saud Usman Nasution said.

The raid took place at a rented house in Pondok Aren, South Tangerang, on the outskirts of the capital at 3:30 a.m., with anti-terror police confiscating a revolver, explosive materials, several books about jihad and documents outlining a bank robbery.

"We're still investigating whether they are linked to terror networks," the police spokesman said. "The two are also suspects in the stabbing and shooting of a traffic police officer."

The incident came less than two weeks after a counter-terrorism squad gunned down five suspects in two raids on the popular tourist island of Bali. Police suspected that group was planning a bank robbery to finance several terror attacks.

Muslim-majority Indonesia has been rocked by a series of attacks staged by regional terror network Jemaah Islamiyah in recent years, including the 2002 Bali bombings which killed 202 people.

The JI network has been weakened since anti-terror police killed some of its most prominent figures in bloody raids.

Indonesia jails Islamic school principal for terrorism

Agence France Presse - March 28, 2012

An Indonesian court on Wednesday jailed an Islamic boarding school head for 17 years for possessing more than two dozen home-made bombs and inciting terrorism.

Abrory M. Ali, who was the head of the Umar bin Khatab boarding school in West Nusa Tenggara province, eastern Indonesia, was arrested in July when some of his home-made bombs went off accidentally, killing a school employee.

Following the blast, police tried to raid the school but students attempted to stop them in a bid to prevent the discovery of the explosives and firearms. This prompted a three-day standoff during which the students, armed with machetes and swords, barricaded themselves inside.

"The evidence during the trial showed that the defendant was guilty of having assembled 27 pipe bombs" and of collecting firearms, chief judge Iman Gultom told Tangerang district court on Jakarta's outskirts.

"He also spread deviated teaching about jihad to his students which caused the loss of people's lives," he added. One of his students has previously been sentenced to 15 years in jail for killing a police officer with a sword.

Most of Indonesia's 200 million Muslims are moderates, but the country has struggled to deal with a radical fringe of extremists who have carried out numerous attacks including the 2002 Bali bombings that killed 202 people.

Country's terror network remains intact: BNPT

Jakarta Post - March 26, 2012

Rabby Pramudatama, Jakarta – The country's counterterrorism agency has detected continuing activity by terrorist organizations despite the fact that many terrorist suspects have either been jailed or killed since the first Bali bombing in 2002.

Based on its surveillance, the National Counterterrorism Agency (BNPT) said terrorist networks within the country remained intact.

"Terrorist activity in Indonesia has not stopped yet. Jamaah Islamiyah [JI] has reemerged through new channels. There has been a wave of [terror suspects] released since 2007, also their international connections have been reestablished," BNPT operations deputy Brig. Gen. Tito Karnavian said during the Jakarta International Defense Dialogue late Wednesday.

Tito said that terrorist groups in Indonesia could be divided into several mainstream groups namely JI, the Islamic State of Indonesia (NII), the Jamaah Ansharut Tauhid (JAT) and Angkatan Muda Islam Nusantara (Al-Amin).

The Indonesian government has launched full-scale investigations and prioritized law enforcement to curb the activities of those terrorist organizations especially following the devastating Bali bombing in 2002 which killed more than 200 people mostly foreigners.

According to BNPT data, more than 400 terrorists were successfully prosecuted in the period between 2002 and 2009. Since 2010, however, a number of terror attacks have occurred. Tito said that the quantity of attacks was higher than the country had experienced before.

Although JI, as an organization, had been inactive since 2002, Tito said, its network remained intact.

"JI is quite a well-structured organization. In terms of overseas connections, it has many relationships with Pakistan and Afghanistan networks," he said.

"So who were the groups involved in the attacks? Basically they are from the same group," he said. "We notice at least three JI splinter groups including the JAT, the organization cofounded by the former JI leader Abu Bakar Ba'asyir, the Hisbah which is based in Solo and then the Al-Tawhid wal-Jihad."

Last year, a series of mail bomb attacks and a planned bombing of a church occurred in Tangerang, Banten. Several suspects have been brought to court. Also last year, a suicide bomb was targeted at the Cirebon Police office in West Java. The bomber detonated the bomb inside a mosque at a police compound in Cirebon on April 15 that year.

Tito said some of those attacks were linked to paramilitary activities in Aceh and North Sumatra, where there were strong indications that the JAT or its elements were involved in the activities.

Recently, the National Police's Densus 88 counterterrorism unit killed five suspected terrorists in a raid in Bali. The suspected terrorists reportedly had links to the JAT network.

Meanwhile, BNPT chief Ansyaad Mbai said that the suspected terrorists had planned to launch an attack in parts of Bali, as well as other areas in the country.

Separately on Thursday afternoon, the Densus 88 arrested a suspect identified as Catur P, 40, as they raided a cell phone store in Sumedang, West Java.

The police have been successful in hunting and bringing terrorist suspects to court as with Umar Patek, the man allegedly responsible for the 2002 Bali bombing.

Patek, nicknamed "The Demolition Man", is standing trial at the West Jakarta District court. He is accused of masterminding the 2002 Bali bombing and assembling explosives that were used in bombings in nine cities on Christmas Eve in 2000.

Patek was captured on Jan. 25, 2011, in Abbottabad, Pakistan, after previously hiding in the Philippines. Tito said the arrest of Patek showed that Indonesia's terror networks were linked with Pakistan and the Philippines.

Based on these conditions, Tito said that the terrorist threat remained real; the JI network had survived and had created new "vehicles". There has also been a wave of releases of terror suspects who have promptly reactivated terror activities.

He said these conditions were a challenge for Indonesia in finding an effective way to contain the growth of terror networks, "We have legal constraints here." "We also need to strengthen interorganizational coordination, including with the military," he said.

Islamic law & morality

TV stations criticized for Julia Perez appearances

Antara News - March 29, 2012

Broadcast regulators in Mataram, West Nusa Tenggara, have admonished two Jakarta-based TV stations over live performances by dangdut singer Julia Perez on popular music shows.

Badrun A.M., the head of the provincial office of the Indonesian Broadcasting Commission (KPID), said on Wednesday that both RCTI and SCTV were censured for letting Julia, popularly known as Jupe, perform her controversial song "Jupe Paling Suka 69" ("Jupe Likes 69 the Best").

"That song is gaudy and inappropriate for children and teenagers," Badrun said. The song was one of 10 that were banned by the KPID last month after the regulator deemed them "pornographic."

Shotgun weddings in Dumai cause for concern

Jakarta Post - March 29, 2012

Dumai – Casual sex among teenagers in Dumai, Riau, is a cause for concern as out of wedlock pregnancies have been on the rise and have led to fledgling marriages.

Dumai Indonesian Ulema Council (MUI) head Lukman Syarif said they were concerned about the trend.

"Cases at the East Dumai Religious Affairs Office can serve as an example. This month, of the 10 couples getting married there, seven of them were already pregnant," he said on Wednesday.

"Ironically, almost every year, a number of female students in Dumai cannot sit exams because they are pregnant. But this shameful matter is always covered up."

Lukman urged the relevant agencies to immediately take action to stem the phenomenon. "I'm afraid the deviation among students will worsen if the government tends to be permissive and doesn't care," he said.

Sex & pornography

Miniskirts X-rated, claims Indonesia's porn taskforce

Sydney Morning Herald - March 30, 2012

Michael Bachelard, Jakarta – Indonesia's religious affairs minister believes miniskirts are pornographic and should be banned under the country's tough new anti-porn laws.

In comments endorsed by the country's leading Islamic advisory body, Suryadharma Ali said "one [criterion of pornography] will be when someone wears a skirt above the knee".

Dr Suryadharma, leader of the United Development Party, was appointed earlier this month to run Indonesia's anti-porn taskforce, announced and supported by President Susilo Bambang Yudhoyono.

Dr Suryadharma said that, before deciding what the taskforce would ban as pornography, it would consult widely to come up with "a set of universal criteria".

"Pornography is something that we can feel... but we have to make the criteria," he said, adding that wearing miniskirts would qualify. His comments were backed by the Indonesian Ulema Council, representing all Indonesia's Islamic groups.

"According to Islamic sharia [law], women not only have to wear long skirts but they have also to cover up all the private parts of their body," deputy secretary of the council's fatwa commission, Aminudin Yakub, told news website Detik.com.

Dr Suryadharma made no comment on how tourists in places such as Bali would be treated. A spokesman from his ministry told The Age there had been no directive yet on how the anti-pornography taskforce would counter offences.

Earlier this month, parliamentary speaker Marzuki Alie said he would draft rules banning female politicians and staff from wearing short skirts because they were distracting and that "there have been a lot of rape cases and other immoral acts recently and this is because women aren't wearing appropriate clothes".

"You know what men are like," he said. "Provocative clothing will make them do things."

The anti-pornography taskforce is widely seen as an attempt to distract the populace from issues such as corruption scandals around the Democratic Party of President Yudhoyono and the move this week to increase petrol prices.

Indonesians practise a generally liberal version of Islam, although there has been a move in the past decade or two for a more conservative interpretation. Women's groups and human rights activists have protested against the recent concentration on clothing.

A spokeswoman for the National Commission on Violence Against Women called the proposed miniskirt ban a violation of women's rights, adding sexual assault had nothing to do with either pornography or the length of women's skirts. "Many women [who were] raped happened to wear very conservative clothing," she said. "They were raped anyway."

House speaker says should focus on 'mini-brains' not 'mini-skirts'

Jakarta Globe - March 29, 2012

Ezra Sihite – House of Representatives Deputy Speaker Pramono Anung has criticized proposals to ban short skirts in Indonesia, saying the state had more important things to do.

"The state or the government should not be concerned with skirts. Our public appreciates differences and we don't denigrate women," Pramono said in Jakarta on Thursday.

"What we need to take care of are mini-brains and mini-morals. I disagree with regulation on miniskirts," the opposition politician added.

Religious Affairs Minister Suryadharma Ali has triggered fresh controversy on Tuesday after saying the government was considering regulating how women should dress, including that skirts should not be above the knee.

Suryadharma, also the executive chairman of the recently established anti- pornography task force, said the task force was determining what constituted pornography and how best to deal with it. "We think that there should be general criteria [on how women should dress]. For example, women's skirts should go past their knees," he said.

The task force was set up earlier this month to implement the controversial 2008 Law on Pornography. (BeritaSatu/JG)

Indonesia's anti-pornography task force considers short-skirt ban

Jakarta Globe - March 29, 2012

Ezra Sihite & Michael Sianipar – Asked to define pornography, an American Supreme Court justice once famously said: "I know it when I see it." The way Religious Affairs Minister Suryadharma Ali sees it, the answer to the same question might well be: "Short skirts."

The government's controversial anti-pornography task force, headed by Suryadharma, is now working on measures to tackle the issue – a discussion that includes coming up with a broad definition of pornography, which could potentially equate to dictating how women dress.

"We think that there should be general criteria [for women's clothing]. For example, women's skirts should go past their knees," Suryadharma said in Jakarta on Wednesday.

The task force, he said, is in the process of gathering suggestions from the public about what activities should be classified as pornographic and how best to cope with them.

Suryadharma admitted that the definition of pornography could be subjective, but nevertheless said: "There must a universal measure for that."

Masruchah, the deputy head of the National Commission on Violence Against Women (Komnas Perempuan), immediately slammed the proposed legislation, calling it a violation of women's rights.

"There are already norms and ethics in each different community. People already know what they should wear, where and when," Masruchah said. "The government must respect the diversity of our cultures and religions."

She added that sexual harassment and assault had nothing to do with the availability of pornography or women's sartorial choices.

"Data on rapes show that they don't correlate with how the women dressed," she said. "Many women [who were] raped happened to wear very conservative clothing. They were raped anyway." She added: "It's all to do with the mind-set of men."

After a series of sexual assaults on public minivans last year, Jakarta Governor Fauzi Bowo was criticized for telling women not to wear short skirts or pants when taking public transportation. He later apologized, but not before women donned miniskirts in a rally to protest his remarks.

In all of Indonesia, only Aceh, which implements Shariah law, regulates women's clothing by making headscarves mandatory. West Aceh district went even further in 2010, banning women from wearing tight pants.

The creation of the anti-pornography task force, which is supposed to enforce the controversial 2008 law banning pornography, was greeted with a barrage of criticism and scorn, with many accusing the government of having lost sight of its priorities.

Politicians and activists alike said it was a distraction from many more pressing issues such as corruption prevention, the empowerment of people in villages and isolated areas, poverty eradication, health care and social conflicts.

Showing thighs 'a porn crime'

Jakarta Post - March 29, 2012

Margareth S. Aritonang, Jakarta – The newly established antipornography task force says it will crack down on women wearing skirts that fall above the knee as such clothing will be included in the group's universal definition of pornography.

Religious Affairs Minister Suryadharma Ali, the task force's chairman, said Wednesday that the definition would be universally applied to all regions in the country, regardless of cultural background.

"We have yet to set a standard definition of pornography on which we will base our work. However, there must be a set of universal criteria to define something as pornographic, one of which will be when a woman wears a skirt above the knee," Suryadharma told reporters on the sidelines of a meeting with the House of Representatives' Commission VIII overseeing religious and social affairs on Wednesday.

When asked whether the task force would give leniency to women living in non-Muslim provinces, such as Bali and Papua, Suryadharma said that the task force would ensure the standards were universally applied.

"I know that some parts of the country have unique cultures, such as Bali and Papua. Nevertheless, we think that we must set universal criteria to be implemented in all parts of the archipelago. Requiring women to wear skirts that fall below the knee is one such criterion," he said.

The plan was swiftly condemned by top politicians and activists. House Deputy Speaker Priyo Budi Santoso said Suryadharma had gone too far in defining pornography.

"This will obviously make female lawmakers furious. I don't think that the task force should make a fuss about women's skirts. I think the definition of pornography must be based on principles with regards to how people should behave," he said.

Rieke Dyah Pitaloka, a lawmaker from the Indonesian Democratic Party of Struggle (PDI-P), said that the government ought to deal with more important problems than telling women what to wear.

"The way women wear their skirts, below or above the knees, will not impact others. It's nothing compared to the fuel-price hike plan, which undoubtedly will impact a majority of the people," Rieke said.

National Commission on Violence against Women (Komnas Perempuan) deputy chairwoman Masruchah opposed Suryadharma's definition of pornography.

"Defining pornography based on women's skirts is only a way to subordinate women. I regret that such an idea comes from state officials," Masruchah said. She also called for the task force to consider the country's cultural diversity.

President Susilo Bambang Yudhoyono set up the task force on March 13 to implement the 2008 Pornography Law. The task force was given a mandate to curb the distribution of pornography.

The President appointed Coordinating People's Welfare Minister Agung Laksono to lead the task force. Other members include Communications and Information Minister Tifatul Sembiring, Law and Human Rights Minister Amir Syamsuddin, and Women's Empowerment and Child Protection Minister Linda Gumelar.

'Miniskirts = porn': Religious Affairs Minister

Jakarta Post - March 28, 2012

Margareth S. Aritonang, Jakarta – Following the establishment of the anti-pornography task force, Religious Affairs Minister Suryadharma Ali said that skirts that fall above the knee would be included in the working group's definition of pornography, on which it would base its future work.

"We will arrange meetings with different stakeholders from the public to get input on how they understand pornography, and I'm sure that they will come up with different definitions [of pornography]. However, there must be a set of universal criteria to define something as pornographic, of which one will be when someone wears a skirt above the knee," Suryadharma, who was tapped by President Susilo Bambang Yudhoyono to run the body on a daily basis, said on the sidelines of a hearing with the House of Representatives Commission VIII overseeing religious and social affairs on Wednesday.

Once a standard of pornography was established, the task force would apply it nationwide across all ethnicities, he added.

Attempting to curb the distribution of pornographic materials across the country, the President recently established a task force on the management and prevention of pornography as a body to implement the 2008 Pornography Law.

The President appointed Coordinating People's Welfare Minister Agung Laksono to lead the task force and Religious Affairs Minister Suryadharma Ali to manage day-to-day operations. Members of the task force include other Cabinet members such as Communications and Information Technology Minister Tifatul Sembiring, Law and Human Rights Minister Amir Syamsuddin, Women's Empowerment and Child Protection Minister Linda Gumelar, Education and Culture Minister Muhammad Nuh, as well as Home Minister Gamawan Fauzi.

Indonesia considering banning short skirts

Jakarta Globe - March 28, 2012

Ezra Sihite – Religious Affairs Minister Suryadharma Ali says he is considering a regulation that women's skirts should pass their knees as a follow-up to the recent establishment of the government's anti-porn task force.

The task force is currently discussing measures to tackle pornography, including a probable need to tell women how to dress. "We think that there should be general criteria [on how women should dress], for example women's skirts should pass their knees," Suryadharma said in Jakarta on Wednesday.

He added the task force was currently collecting inputs from the public as to the details of what should be classified as pornography activities and best measures to cope with them. Suryadharma admitted definition of pornography could be subjective, but added, "There must a universal measure for that."

President Susilo Bambang Yudhoyono issued on March 2 a decree on the establishment of the anti-porn task force to support the implementation of the controversial 2008 pornography law. (BeritaSatu/JG)

Women's commission critical of government's plan to ban miniskirts

Jakarta Globe - March 28, 2012

Erwida Maulia – A proposed law regulating the length of women's skirts was blasted by the head of the National Commission on Violence Against Women (Komnas Perempuan) on Wednesday.

Masruchah, deputy chairwoman of Komnas Perempuan, said the government should not tell women how to dress. "There are already norms and ethics in each different community; people already know what they should wear where and when. The government must respect the diversity of our cultures and religions," Masruchah said.

The proposal, the latest in a series of controversial moves by government officials meant to regulate sex and morality in Indonesia, was brought up by Religious Affairs Minister and anti-porn task force head Suryadharma Ali during a meeting with lawmakers in Jakarta on Wednesday.

"We think that there should be general criteria [on how women should dress], for example women's skirts should pass their knees," Suryadharma said.

Masruchah called the proposed legislation a violation of women's rights, adding that sexual harassment has nothing to do with the availability of pornography or how a woman dresses.

"Data on rapes show that they don't correlate with how the women dresses," she said. "Many women [who were] raped happened to wear very concealing clothing. They were raped anyway. It's in the mindset of the men," she added.

President Susilo Bambang Yudhoyono named Suryadharma as the head of Indonesia's first anti-pornography task force on March 2. The organization has been tasked with enforcing the nation's controversial 2008 banning pornography.

All hot over Indonesia's latest antipornography drive

Jakarta Globe - March 27, 2012

John McBeth – An Indonesia woman attending a recent anticorruption dialogue with President Susilo Bambang Yudhoyono was surprised when a palace protocol officer approached her before the event and asked if she would move to the back row of seats.

The reason: She was wearing a dress, and a knee-length one at that. Encouraged by other participants, some of whom were also wearing equally modest dresses, the woman refused to budge. The aide did not press the point.

Later, the woman learnt from another palace official that "Ibu" – in other words First Lady Kristiani Yudhoyono – did not like women wearing Western-style dresses at presidential functions, only pants or the traditional ankle-length kebaya.

It was not so long ago that the pant suits favoured by US Secretary of State Hillary Clinton were considered unladylike. In fact, unlike the more decorative miniskirt, they were actually banned from the male-dominated United States Senate until the 1990s.

Mrs Yudhoyono's straight-laced, puritan preferences have come to light before. It is well known, for example, that she detested the Britney Spears-inspired bare midriff look, once popular among Indonesian teenagers.

But what makes this topical now – and the subject of considerable conjecture – is the President's sudden announcement this month that he is forming a so-called Task Force for the Management and Prevention of Pornography.

The daughter of legendary special forces Gen. Sarwo Edhie Wibowo, who was once embroiled in a scandalous extra-marital affair, Mrs Yudhoyono keeps a tight rein on palace affairs and is often described as Dr Yudhoyono's closest adviser.

Whether she was behind the latest initiative or not, it left a growing army of critics wondering about Dr Yudhoyono's priorities, with his Democrat Party besieged by almost daily corruption revelations and debate swelling over the raising of fuel prices.

If it was meant to distract the citizenry from these more pressing issues, then he clearly was not prepared for the ridicule heaped on the idea, including by a member of the Islamist Justice and Prosperity Party (PKS), who accused him of "lighting false fires."

The PKS was, in fact, one of the main proponents of the controversial 2008 Anti-Pornography Law, which prescribes various measures not only to curb the spread of pornography, but also the social behavior of Indonesia's independent-minded women as well.

Even its diehard leaders, among them Communications Minister Titaful Sembiring, must realize by now that putting a stop to pornography is mission impossible, akin to weaning Indonesians off cigarettes.

The latest Google Trends ranks Indonesia sixth behind Pakistan, Vietnam, India, Egypt and Morocco in Internet search requests using "sex" as the key word, while a more commonly quoted survey has it third in Web pornography downloads.

Pakistan, which also comes out on top in all categories of what can only be described as unusual sex searches, has seen a dramatic increase in the sale of illicit DVDs and CDs since efforts were made to block pornographic Web sites last November.

A similar trend has been noted in Indonesia in the wake of Titaful's much- publicized anti-pornography campaign two years ago. The fact that it has run out of steam may explain why the president is trying a new tack.

Chief Welfare Minister Agung Laksono, a senior Golkar politician and unlikely morality policeman, is nominally in charge of the new task force, but its day-to-day operations will be managed by Religious Affairs Minister Suryadharma Ali.

Golkar cannot have endeared itself to the cash-rich Religious Affairs Ministry when party chairman Aburizal Bakrie recently urged the government to allow private companies a share of the hugely profitable and graft- ridden business of arranging the haj pilgrimage to Mecca.

Suryadharma is not short of controversy himself. He has pointedly refused to enforce a Supreme Court order directing the reopening of a besieged church in Bogor, and only last January caused widespread alarm with inflammatory remarks about Indonesia's Shiite minority.

Editorial writers have predictably had a field day. "The government would do better to garner its efforts to eradicate corruption, rather than try to kindle passion in calming people's libidos," Tempo magazine said.

"There is a strong impression the government is focused on overcoming a wave of lust," it noted, pointing to a new House of Representatives rule banning its staff from wearing miniskirts.

This is the same parliament where dozens of members have been jailed for accepting bribes and other corrupt acts, and where one PKS lawmaker was caught by a long lens last year watching pornography on his laptop during a House session.

Making the whole issue seem all the more ridiculous was a photograph, splashed across the front page of the racy Rakyat Merdeka newspaper some days after the President's announcement, showing three Cabinet ministers posing with a group of miniskirted golf caddies.

A palace spokesman described the picture of Manpower Minister Muhaimin Iskandar, Mines and Energy Minister Jero Wacik and the Minister for the Acceleration of Development in Underdeveloped Regions Helmy Faisal as "indecent" and "unethical."

Leaving aside that over-reaction, Jero's presence was particularly sensitive because he has been one of the more vocal supporters of the 33 per cent fuel price increase, which critics claim will hit Indonesia's poorer classes the hardest.

Civil service & bureaucracy

Broken law, political ambitions tarnish new SOE appointments, house says

Jakarta Globe - March 26, 2012

Lawmakers accused the government on Sunday of violating laws and operating with political motivations in the appointment of directors and commissioners at many state-owned enterprises.

House of Representatives Commission VI, which oversees industry, trade, investment and state enterprises, announced it will immediately summon State Enterprises Minister Dahlan Iskan to explain the appointments.

Airlangga Hartarto, the head of the commission, said lawmakers have received reports from the public complaining that appointed executives were members of certain political parties.

"What we have now is problems regarding the appointment of [ferry operator] Pelni's president director," said the Golkar Party politician. "We have also received complains about the appointments of president directors at [industrial conglomerate] Rajawali Nusantara Indonesia and [plantation company] Perkebunan Nusantara [PTPN]. "All [of these appointments] have violated the regulations."

Edhy Prabowo, also on the commission, said he believes the last-minute appointment of many executives this month were more political than professional because they were not set a year earlier, as stipulated by the law.

"The government has violated the law on state-owned enterprises," he said. "So it [the government] must either change the directors and commissioners or have the law changed."

Indonesia has more than 100 state-owned enterprises, and political parties are competing to control lucrative posts in them as the 2014 elections approach. State-owned enterprises have long been seen as cash cows for corrupt politicians, especially ahead of elections.

The initial public offering of state-owned Krakatau Steel last year, for example, was widely criticized as a mere strategy to help officials in the president's Democratic Party collect money.

Civil society groups have pointed out that many directors and commissioners at state-owned enterprises are members and officials of political parties.

Government Watch (Gowa) recently reported that Patrialis Akbar, a former minister of justice and human rights and a senior member of the National Mandate Party (PAN), was the president commissioner of state coal miner Bukit Asam. (Antara, Suara Pembaruan)

Government plan to retire incompetent staff questioned

Jakarta Post - March 25, 2012

Dicky Christanto, Jakarta – An expert and a lawmaker have questioned the Bureaucratic Reform Ministry's plan to dismiss civil servants who fail the competency test by granting them early retirement packages.

"Many tax office employers are smart, meaning that they are likely to pass the competency test easily. But who is going to guarantee that these people will perform well as civil servants," House manpower commission lawmaker Rieke Diah Pitaloka told The Jakarta Post on Wednesday.

She said that a stricter monitoring system and law enforcement should be applied as well.

Commenting on this, Siti Zuhroh from the Indonesian Science Institute (LIPI) said that the government should design follow-up programs for those who hadn't passed the competency test and were granted early retirement. "These people should be trained so that they are able to be financially independent or else they will become another problem later on," she said.

Deputy Bureaucratic Reform Minister Eko Prasodjo earlier stated that the ministry intended to hold competency tests for civil servants. Those who passed the test would be rewarded with follow-up training to improve their skills, while those who didn't would be granted early retirement packages.

The plan was a response to a survey that unveiled that 40 percent of the 4.6 million civil servants nationwide are incompetent.

Jakarta & urban life

Jakarta's subsidized apartments left empty by red tape

Jakarta Globe - March 29, 2012

Ronna Nirmala – Despite the fact that millions of Jakartans rent, more than 4,000 subsidized apartments across the city are still empty.

Jakarta Housing Agency head Novizal told reporters on Thursday that the apartments cannot be sold to the public because the central government has yet to transfer ownership of the property to the city administration. The apartments were built two years ago.

"The apartments are built by the central government, either through the Housing Ministry or Public Works Ministry. We can't do anything until they hand them over to us," he said.

Novizal said that he was preparing documents for the ownership transfers. "Hopefully, we can offer them to the public this year," he said.

The low-cost apartment plan was launched by the government in 2005 to create affordable, comfortable apartments for middle- and low-income earners. The price for a low-cost apartment is between Rp 140 million and Rp 200 million ($15,300 and $21,800).

Novizal said those who can buy the apartments could have a maximum monthly income of Rp 2.5 million. They also need a Jakarta identity card and proof they do not own a house.

Currently, people eligible for subsidized apartments pay as little as Rp 120,000 per month to the city administration.

But Novizal said the central administration and the council have not agreed on how much residents should pay per month if they buy the apartment. "We are still discussing it. We hope we can agree on something quickly," he said.

Councillor M. Sanusi, however, denied both sides were discussing the rate of monthly rent. "We agreed on the bylaws last year. What they don't have is the gubernatorial decree to support the bylaw," Sanusi said. "So, the governor should just go ahead and issue a decree."

Sanusi also questioned why it takes so long to transfer the apartment's ownership to the city.

Residents distracted by celebrities at campaign rally

Jakarta Post - March 25, 2012

Jakarta – The preliminary campaign for the Jakarta governor election organized by the Hidayat Nur Wahid-Didik Rachbini ticket is threatening to turn sour as local residents are beginning to pay more attention to the celebrity entourage the candidates bring to campaign rallies rather than their campaign message.

The candidate pair came to greet residents living along Krukut river in Pejompongan, Central Jakarta, and were accompanied by celebrities including presenter Eko Patrio, movie star Primus Yustisio and artist Lukman Hakim. The first two celebrities are members of the National Mandate Party (PAN).

"I only came to this event because Eko Patrio was coming and I was informed that there would be a free meal during the event. I don't even know the candidates," a local resident told kompas.com on Sunday.

Many residents were shouting for Primus when he was about to deliver a speech, and seemed more interested in having their photo taken with the candidate than listening to his message for the city.

A member of the Justice Prosperous Party (PKS), Hidayat is currently member of the House of Representatives' Commission V overseeing transportation, public works and housing while Didik is an executive at PAN's center executive board. (dic)

Armed forces & defense

Military wins in government's reversal on conflict bill

Jakarta Globe - March 30, 2012

Markus Junianto Sihaloho – The government has added a last-minute provision to the bill on social conflicts that would give the military a greater role in resolving such issues, reversing an earlier pledge to curtail the military's involvement in this regard.

Eva Kusuma Sundari, the chairwoman of the House of Representatives special committee deliberating the bill, said on Thursday the proposed article was introduced just as the committee ironed out two final points of contention ahead of the bill's expected passage next week.

"A meeting of the committee last night managed to agree on the issues of funding and participation by foreign groups in resolving social conflicts, but the government added a new article about technical assistance from the military," she said.

The Indonesian Democratic Party of Struggle (PDI-P) lawmaker added that the new provision detailed the standard operating procedures for police to request military assistance in handling conflicts.

"The government's explanation is that there is currently no such SOP and that it's necessary to have one," she said. "We're going to discuss this article when the committee meets again on Monday."

That final meeting will be held a day before the plenary session of the House in which the bill is expected to be passed.

The last-minute insertion of the new article marks an about-face by the government on military involvement in social conflicts and disputes. In February, the Defense Ministry said that a bill on national security had been drafted to give local residents a greater say in resolving the disputes and to minimize the military's role.

Ministry official Maj. Gen. Puguh Santoso said that under the terms of the security bill, the military would have to seek approval from the National Security Council before taking any kind of action in order to prevent the recurrence of recent violent clashes that have resulted in allegations of human rights abuses on the part of the security forces.

"In the question of when the military can be called in, the potential for violence has always been a major issue," he said last month. "So that's why the military will no longer be able to take the initiative and dive headfirst into a violent situation. There has to be careful coordination."

Puguh also said that by limiting the military to a last-resort role and prioritizing the enforcement of existing local laws and regulations on security, "the bill will help to better integrate various security sectors so that there's no more fragmentation and we can develop a more cohesive system."

Human rights organisation accuses state of secrecy in fighter jet deal

Jakarta Globe - March 29, 2012

Ulma Haryanto – A major Indonesian rights group has accused the government of lacking transparency in its recent purchase of fighter jets.

"The last meeting between the government and Commission I of the House did not generate much progress in terms of transparency and accountability principles," Haris Azhar, coordinator of the Commission for Missing Persons and Victims of Violence (Kontras), said on Wednesday.

Haris was referring to a hearing on Monday at the House of Representatives with the commission that oversees defense and international affairs.

He claimed the government failed to disclose key items to the public, including details about the purchase agreement, at the meeting. Also in attendance was Armida Alisjahbana, the minister of national development planning; Sjafrie Sjamsoeddin, the deputy defense minister; and Air Marshal Eris Herryanto, the Defense Ministry's secretary general.

"The government also did not answer in detail how involved PT Trimarga Rekatama was in the procurement," he added.

Last week, a coalition of civil society groups, including Kontras, reported Defense Minister Purnomo Yusgiantoro to the Corruption Eradication Commission (KPK), citing a discrepancy between the government's $470 million purchase of six Russian Sukhoi fighter jets and the actual price tag of $328.8 million.

Haris said that in the 2011 revised state budget, the government allocated Rp 237.5 billion [$25.8 million] for five units of Sukhoi engines. Each jet has two engines.

At the same time, he added, the ministry said it would use $470 million to purchase 12 units of engines on top of six jets. "This means there was double budgeting," he said.

The government has claimed it planned to use commercial credit to finance the jet deal.

On Monday, Eris said Trimarga Rekatama acted as a local support distribution system for Russian jet maker Rosoboronexport. "The agency was not part of the Defense Ministry's management," he noted. "We did not buy [the jets] from Trimarga,"

As for the alleged lack of transparency, ministry spokesman Brig. Gen. Hartind Asrin said the ministry was protected by the 2008 Freedom of Information Law, which exempts information on national defense and security. "Article 17 explicitly says that information regarding defense and weaponry is not for public consumption," he said.

Haris disagreed, saying the government could withhold information about the strategy behind the purchase but not about the purchase itself.

"Besides, if they admitted that a third party also handled the purchases, it means the details are in civilian hands," he said. "If it [the purchase] is truly a secret, the government should do the transaction exclusively with the manufacturing company."

Speaking separately, President Susilo Bambang Yudhoyono's son Edhie Baskoro Yudhoyono, a lawmaker on Commission I, said on Wednesday that he appreciated the Defense Ministry's transparency.

"It [the ministry] is now far better than it was in the previous government," he said. It is "obeying procedures, including providing a detailed explanation to the House."

[Additional reporting by Markus Junianto Sihalolo & Ismira Lutfia.]

MPs strip vehicles of military permits

Antara News - March 29, 2012

Military Police in Padang, West Sumatra, stripped dozens of military stickers from cars and motorcycles whose owners were not authorized to use them.

Maj. Gokdin Gultom, the local MP chief, said the military insignia were only allowed to be used on official military vehicles and not on private ones. He added that the raid was also meant to prevent cases of civilians pretending to be military personnel in order to gain privileges.

"If we find cars still sporting these stickers, we will take serious action against the owners," he said, adding that future raids would target civilians wearing military uniforms.

SBY warns rivals on dirty laundry

Jakarta Post - March 26, 2012

Bagus T. Saragih and Rabby Pramudatama, Jakarta/Beijing – Following intense allegations by the opposition of graft in the recent purchase of Sukhoi jet fighters, President Susilo Bambang Yudhoyono has threatened to expose alleged markups in similar purchases made during president Megawati Soekarnoputri's administration.

Yudhoyono said he would not hamper any investigation into alleged markups in the procurement provided it included the entire purchasing process dating back to before he took office in 2004.

"I understood what happened at the time [regarding the procurement], but did not want to delve into the past," said Yudhoyono late Saturday in Beijing before departing for Hong Kong on an official visit. "However, since this issue has been brought up, I say go ahead and investigate it, in its entirety from when we first procured the jets."

Civic groups and lawmakers, led by House of Representatives' Commission I deputy chairman Maj. Gen. (ret.) Tubagus Hasanuddin of Megawati's Indonesian Democratic Party of Struggle (PDI-P), have launched a campaign to oppose the purchase due to alleged markups and corruption.

In December 2011, the government proceeded with the purchase of six Sukhoi Su-30MKKs worth US$470 million to complete the Air Force's Sukhoi squadron. However, critics have alleged the price was $50 million more than the price published by JSC Rosoboronexport, Russia's state company authorized to sell the jets.

The government first procured the Russian-made Sukhoi jets in 2003 under Megawati's administration, in which Yudhoyono was the coordinating political and security affairs minister, and as such he would have been familiar with the early processes of the purchase.

During that time, the deal was also plagued by graft allegations as it was not approved by the House and was not made through the Defense Ministry. Only a few officials were involved in the deal, including Megawati, then Military (TNI) commander Gen. Endriartono Sutarto and trade minister Rini Soewandi. Endriartono is known nowadays as a harsh critic of Yudhoyono's administration.

Cabinet Secretary Dipo Alam, who is accompanying Yudhoyono on the overseas trip, said that the procurement under Megawati had violated numerous norms and laws.

"We bought four jets using a controversial countertrade deal in which Russia was to receive crude palm oil (CPO) as payment," said Dipo, who was then deputy to the coordinating economic minister. "However, in the end, it was money from the state budget that was used for the payment not from the CPO, which I never believed would work in the first place," he said.

According to Dipo, the payment was made using the tactical budget, which was allocated for disaster management, and the payment process was "sophisticated".

Yudhoyono urged law-enforcement agencies to take the entire Sukhoi issue seriously as it had been going on for weeks and had misled the public. "If there has been a recent violation in the purchase, any officials involved should be punished. But officials who served in the past should also be held accountable for any wrongdoing," said Yudhoyono, whose relations with Megawati remain strained after he decided to run against her as president in 2004.

Lawmaker Hasanuddin, former presidential military secretary during Megawati's tenure, said he and fellow lawmakers perceived Yudhoyono's statement not as a threat but as an encouragement to dig deeper into the alleged corruption.

"We were never involved in any corruption in the original purchase of the Sukhoi. Yudhoyono should be careful what he wishes for, he might just get it," he warned.

Economy & investment

23 state firms continue to incur financial losses

Jakarta Post - March 31, 2012

Raras Cahyafitri, Jakarta – Of the total 141 state-owned enterprises, 23 companies continued to suffer financial losses last year, according to a State-Owned Enterprises Ministry senior official.

Deputy State-Owned Enterprises Minister Mahmuddin Yasin said in Jakarta on Friday that as many as 118 state firms booked profits, but only 70 of them paid dividends.

"There are 118 companies reporting profits last year. However, not all of them will be able to pay dividends because several of the companies still suffered accumulated losses," he said.

Firms which are still in the red are PT PAL Indonesia, PT Merpati Nu- santara Airlines, PT Dirgantara Indonesia, PT Danareksa, PT Bahana PUI, PT Perkebunan Nusantara XIV, PT Kertas Leces, PT Kertas Kraft Aceh, PT Djakarta Lloyd, PT Industri Soda Indonesia, PT Semen Kupang, PT Inhutani, PT Perkebunan Nusantara XI, PT Konversi Energi Abadi, PT Industri Gelas, PT Batan Teknologi, PT Survai Udara Penas, PT Pengembangan Daerah Industri Pulau Batam, Perum Produksi Film Negara, PT Industri Kapal Indonesia, PT Inhutani III and PT Pradnya Paramita.

The combined net profits from the state-owned enterprises reached Rp 123.5 trillion (US$13.46 billion), while losses totalled Rp 3.24 trillion. "From 70 firms able to pay dividends, 16 are listed companies," Yasin said.

In the draft revision of the 2012 state budget, the state is expecting that it will receive up to Rp 30.77 billion in dividends from state-owned enterprises.

Yasin pointed out that the main contributors of total dividends to be received by the state would be companies in the banking sector, electricity company PLN, telecommunication giant PT Telekomunikasi Indonesia (Telkom) and Pertamina.

There are 18 state-owned companies listed on the Indonesia Stock Exchange (IDX). As many as 17 companies have submitted audited 2011 financial reports to the bourse, with the exception being pharmaceutical company PT Indofarma.

Five companies – tin producer PT Timah, construction company PT Adhi Karya (ADHI), gas company PT Perusahaan Gas Negara (PGAS), Telkom and steel giant PT Krakatau Steel – reported lower net profits.

Telkom's net profit slumped 4.94 percent to Rp 10.96 trillion in 2011 from Rp 11.53 trillion in 2010. The company actually booked higher revenue of Rp 71.92 trillion, increasing by 3.96 percent from Rp 69.18 trillion.

Telkom suffered from growing expenses of Rp 46.25 trillion, which caused the company's operating profit to slip by 4.25 percent to Rp 21.95 trillion in 2011 compared to Rp 22.92 trillion in 2010. PGAS also posted lower net profits at Rp 5.93 trillion in 2011, falling 4.9 percent from Rp 6.24 trillion year-on-year.

"Lower distribution volume and increases in cost of revenue and operating expenses contributed to the fall. Increases in cost of revenue were caused by the rising purchasing price of gas from extended and new contracts," the company said in a written statement.

The company's revenue dropped 1 percent to Rp 19.58 trillion in 2011 from Rp 19.76 trillion in 2010. A 7.89 percent increase in cost of revenue to Rp 7.79 trillion in 2011 from Rp 7.22 trillion in 2010, caused the company's gross profit to drop 6 percent to Rp 11.77 trillion in 2011 from Rp 12.54 trillion in 2010.

The increase in operating expenses to Rp 4.05 trillion caused a 14 percent drop in PGAS' operating profit to Rp 7.72 trillion in 2011 from Rp 9.03 trillion a year earlier.

ADHI reported a 17.98 percent increase in its revenue to Rp 6.69 trillion in 2011 from Rp 5.67 trillion in 2010. Despite increasing revenue, ADHI's net profit dropped 3.88 percent to Rp 182.12 billion in 2011 from Rp 189.48 billion in 2010.

Cement producer PT Semen Gresik and toll road operator PT Jasa Marga were among companies that reported healthy growth in 2011.

Semen Gresik collected Rp 16.38 trillion in revenue in 2011, increasing by 14.22 percent from Rp 14.34 trillion a year earlier. Its net profit stood at Rp 3.92 trillion, surging 7.99 percent from Rp 3.63 trillion.

Jasa Marga reaped Rp 4.96 trillion in revenue in 2011, a 13 percent increase compared to Rp 4.39 trillion in 2010. The company booked Rp 1.24 trillion in net profits in 2011, increasing by 12 percent from Rp 1.19 trillion in 2010.

Garuda Indonesia, although reporting Rp 805.53 billion in net profits, will not be able to disburse dividends this year as it remained in an overall accumulated loss position.

Infrastructure reform crucial to Indonesian growth: ADB

Jakarta Globe - March 27, 2012

Tito Summa Siahaan – Unless the government manages to improve governance and infrastructure development, Indonesia will fall into the "middle-income trap," according to the Asian Development Bank.

"Though the Indonesian economy has been one of the best performers in the region in recent years, it faces a number of challenges – poor infrastructure, good governance and access to basic education – to progress to a high-middle income economy," ADB chief economist Changyong Rhee said on Monday.

Failure to address the challenges would put Indonesia in "a middle-income trap," Rhee said. This occurs when economies at the middle-income level can no longer compete with low-wage nations but do not have the human capital, technology and infrastructure to ascend to high-income status.

"So far, I have witnessed only Japan and the four Asian dragons [Taiwan, South Korea, Hong Kong and Singapore] be successful in lifting themselves into a high-income status," he said.

It was harder, he said, for a country to move into high-income status from the middle-income status than from low-income status. "The issue is key and urgent, because in the next 30 years Asia, including Indonesia, is expected to lead global growth," the economist said.

The government plans to spend Rp 4,000 trillion ($436 billion) in the next few years to boost the country's infrastructure, such as airports, seaports and toll roads, to create jobs and help reduce poverty. Lawmakers approved a land acquisition reform bill last year that was expected to help pave the way for land clearance for those kind of infrastructure projects.

Rhee said that because Indonesia was rich in biodiversity as well as vulnerable to environmental changes, it should incorporate a green growth agenda by promoting the development of new technology.

Armida Alisjahbana, the state minister of national planning and development, acknowledged that the government's environmental policies had always been "defensive."

"We focus on protecting the environment rather than exploring the opportunities and potentials. The government has yet to formulate a comprehensive strategy to exploit our environmental potential," she said.

The government has forecast economic growth at 6.5 percent this year, approximately the same rate as last year. Poor infrastructure and rampant corruption have been blamed for stunted economic growth in Indonesia.

Finance & banking

Concern grows over candidates' government links

Jakarta Post - March 26, 2012

Esther Samboh, Jakarta – There is mounting concern that the Financial Services Authority (OJK) will be unable to provide better and more reliable supervision as most of the 21 candidates picked by the selection committee to join the race have links to the government.

The selection committee tasked to pick 21 candidates in the race for the OJK's board of commissioners announced on Thursday the names that have been submitted for the President to make another cut. The chosen candidates, however, are dominated by those with connections to the Finance Ministry, Bank Indonesia (BI) and state-owned enterprises.

Nine of them are incumbents or former officials in the Finance Ministry; six have a history with BI; four are linked to state lender Bank Mandiri; and two are commissioners at Bank Negara Indonesia (BNI).

"There needs to be a mixture of people from outside BI and the Finance Ministry so that there will be a breakthrough in the culture of supervision – better and integrated," banking expert Mirza Adityaswara told The Jakarta Post on Friday. "Regulators must be proactive and anticipative. So, leaders of the OJK must be progressive."

The OJK will take over the banking and other financial institutions' supervisory role from BI and the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) effective 2014, overseeing all sectors of Indonesia's financial system, from banks, listed companies, insurers, to multifinance companies.

BI Governor Darmin Nasution has said that to supervise such a sensitive and complex industry, which accounts for funds of thousands of trillions of rupiah, OJK leaders had to have extensive experience in the sector.

Indonesia Corruption Watch (ICW) has caught a potential conflict of interest within the selection process given that most of the candidates have links with selection committee chairman Agus Martowardojo, both as Finance Minister and former president director of Bank Mandiri.

"The OJK could be led by people that are close to the finance minister or could be influenced to secure his interests. That should not have happened," ICW researcher Apung Widadi told the Post.

The corruption watchdog found 14 figures with such a conflict of interest and 4 retired officials among the 21 candidates, grouping them into four connections: Bank Mandiri, Finance Ministry, retired BI officials and Bapepam-LK people.

"Given the dominance of the [finance] minister during the selection process, we hope that the President will pick the candidates on his own, without suggestions from his ministers," Apung said.

President Susilo Bambang Yudhoyono will pick 14 of the 21 candidates to be submitted to the House of Representatives, which will conduct fit-and- proper tests to appoint the final seven names for the OJK board of commissioners by June this year.

The candidates were selected from a pool of 290 applicants who had to undergo four selection stages: administration, capability, and health, competence – including writing papers, interviews and general tests.

"I am sure that there are more people who are competent in the financial sector but they don't apply because they don't want to be bothered with fit and proper tests at the House and the political matters, or simply they don't want to see a decrease in salary. So they are more comfortable staying where they are," Mirza said.

"Besides, it's difficult to find people in the private sector who understand the philosophy of regulation because most of them are focused on making profits."

Analysis & opinion

Fuel wars wound Yudhoyono

Asia Sentinel - March 31, 2012

Indonesian President Susilo Bambang Yudhoyono seems almost certain to fall short in his attempt to put in place a 33.3 percent fuel price hike, probably doing incalculable damage to what is left of his presidency and dismaying foreign investors and ratings agencies.

A week of demonstrations nationwide – the worst since Yudhoyono took office in 2004 – culiminated Friday when thousands of demonstrators thronged the streets of Jakarta as a planned vote on the price increase in the House of Representatives neared.

The main route to Sukarno-Hatta International Airport was blocked by protesters, as were two lanes of the Jakarta inner city toll road. Violence erupted in central Jakarta late Thursday and Friday as protesters turned over cars and set them afire. A total of 54 people were arrested on Thursday as police struggled to keep order.

Angry labor unions, student groups, various protest movements and the well-oiled street politics of the opposition Indonesian Democratic Party of Struggle (PDI-P) managed to create an atmosphere of popular upheaval despite the fact that the economy is robust and the country is largely peaceful.

Added to the stew were the opportunism of the Islamist Prosperous Justice Party (PKS), and Golkar, the second-biggest party in Yudhoyono's fragile coalition, which backed away from an earlier agreement to support the price hike, leaving the president looking weak.

In the end, only the president's Democratic Party was holding firm as the House adjourned Friday. It was uncertain if a vote would even be taken as the various parties argued about the acceptable "threshold" price for oil that would get them to trigger a price increase.

But what was really at stake was political and Yudhoyono seems to have taken a thrashing.

The debacle could herald the real beginning of the lame duck phase for a president who has grown progressively weaker during his second term despite his resounding election victory in 2009. With many of his key lieutenants facing corruption charges and his party in disarray, the president seems to have finally lost control of his shaky ruling coalition.

National elections are to be held in 2014 and the country's chattering classes are already absorbed in pondering the likely next president. In such a climate, nominal coalition allies likely see no practical value in helping the president, who cannot run for a third term, raise fuel prices regardless of the economic sense behind such a move.

The other problem facing the president after such an embarrassing defeat is what to do with his "partners," Golkar and the small but vocal PKS. Both parties occupy key cabinet posts and one way to discipline them for breaking ranks would be to jettison them from the cabinet. But the president has been reluctant to make decisive moves on his cabinet – or indeed much of anything - although he may be backed into a corner by such open dissension.

The flip side is that Golkar and PKS might even welcome being removed from a floundering government as an election nears. There can be little political advantage for Golkar, the country's largest party, or PKS, its most fractious Islamist party, in being tied to Yudhoyono's tattered coattails.

In any case, should the fuel price move fail, it is hard to imagine SBY mounting any major initiative before 2014. Instead, he will likely confine himself to trying to minimize the damage to him personally from a growing party-funding scandal that has already brought down the party treasurer and a key lawmaker. The mess is likely to also lead to charges being brought against Democratic Party chairman Anas Urbaningrum and two cabinet ministers, Sports Minister Andi Mallarangeng and Manpower boss Muhaimin Iskandar. It is Mallarangeng whom the president likely misses the most. A long-time protege once seen as a possible future president, Mallarangeng has served previously as Yudhoyono's spokesman and a key political strategist.

"He needs Andi but Andi has been made irrelevant by the scandal," said a veteran local journalist. "SBY doesn't have anyone to turn to for strategy or political muscle anymore."

Likewise, SBY misses his first term vice president, Golkar's Jusuf Kalla, who was a master at cracking the whip and using his personal charm to keep unruly allies in line. The current vice president, Boediono, while considered to be honest and capable, is a nonpolitical technocrat with almost no political capital.

The end result has been drift and inaction since 2009 for a president who seems out of touch with politics.

His troubles started with the assault on his first finance minister, Sri Mulyani Indrawati, by forces aligned with coal tycoon and Golkar chairman Aburizal Bakrie, who wanted her out because of her zeal in seeking back taxes from his empire and her refusal to allow government bailouts to his ailing companies in the wake of the 2007-8 global financial meltdown. When Sri Mulyani was ultimately driven out of Yudhoyono's cabinet and into the eager arms of the World Bank, where she became a managing director, there were no negative repercussions for his supposed partners in Golkar or PKS, which also backed the unsightly assault on Sri Mulyani. It was clear there would be no discipline inside Yudhoyono's political world.

Often criticized for being naive and amateurish, Yudhoyono's Democratic Party also badly miscalculated when one of its lawmakers said publicly this week that Bakrie had supported a Rp2,000 increase in the fuel price. Bakrie's statement, made privately, was an embarrassment and he quickly denied it. The Democrat involved was disciplined but the damage to the fuel hike was done and the same day Golkar said it would not vote for the plan.

A deal brokered between the Democrats and Golkar to try to buy off protest through the distribution of direct cash assistance to the public after a fuel price hike appears to have collapsed. Golkar became wary of that maneuver because its leadership did not want to see the Democrats win public support with cash payments financed by the savings the government would realize from cutting the subsidy.

The problem is that the projected fuel price increase, which was expected to drive the cost of subsidized premium fuel, the most popular grade, from Rp4,500 (49 US cents) a liter to Rp6,000, is badly needed. The price of internationally traded crude has risen over the past six months from a low of about US$75 per barrel to hover near US$110 as unrest in the Middle East and the threat of military action against Iran have driven prices steadily upward. It was a miscalculation fostered by Yudhoyono himself when he cut prices shortly after being reelected in 2009.

Most economists agree that the price hike is necessary because of the distortions that subsidies build into the system, especially as prices skyrocket internationally, increasing the amount the government must put into the subsidy. Even at a 33.3 percent increase, the government will still be forced to subsidize a commodity that in reality costs around Rp8,000 for premium fuel. Without a price hike, the government's budget deficit is expected to rise to 4 percent of GDP, more than double its 2012 target of 1.5 percent.

The government paid US$18 billion in various subsidies in 2011 for fuel, exceeding the cost of Indonesia's entire social and education system budgets.

Leave fuel subsidies alone as long as public is denied share of resources

Jakarta Globe - March 30, 2012

Will Hickey – Indonesia has a burgeoning population with an exponentially growing need for energy, but many still live hand to mouth. So as April 1 approaches, the issue of fuel subsidies has been highly contentious. What the controversy shows is that Indonesia has failed to use its vast oil and coal resources to lift the living standards of all its citizens.

The root cause of the problem has been a squandering of resources for short-term profits. This has been a consistent theme, such as exporting high-calorie thermal coal from Kalimantan to higher paying markets instead of selling back a lower quality coal under the domestic coal obligation to state utility company Perusahaan Listrik Negara.

Leaders in the government and ministries do not consider Indonesia's resources to be owned by its citizens, but rather by themselves and foreign investors. For example, Freeport owns over 90 percent of its operation in Papua, with revenue last year of $2.3 billion, and BHP Billiton has a 75 percent stake in a $1.3 billion Kalimantan coal project. Companies appear Indonesian, but are heavily foreign influenced.

When it comes to the fuel subsidies, the constant banter about numbers hides the real issue: empowerment and resource ownership. The fuel subsidy is the only real claim to ownership or bona fide share interest most residents have on the natural resources in their own country.

In the absence of leadership that will empower, develop or add tangible value to its people, this shouldn't be taken away. And if the government insists on taking the subsidy away, it should also renegotiate production sharing contracts and mining work contracts that give generously to foreign investors and likely the people that approved them.

Nigeria is a country that has been ravaged by the pitfalls of production sharing contracts and corruption. It has some of the most pristine oil reserves in the world, yet most of its residents live on less than $2 a day. Where has the money gone?

Recently, Nigeria tried to remove fuel subsidies, resulting in severe riots and economic shutdown. Oddly, Nigeria's current World Bank candidate Ngozi Okonjo-Iweala (a self-proclaimed champion for the poor) supported this removal and in a lengthy discourse explained why it was good for Nigeria's future.

Nonetheless, President Goodluck Jonathan was forced to backtrack. Nigerians did not believe that any savings in the fuel subsidy would magically accrue to their benefit and development under the current regime.

The takeaway in countries like Nigeria and Indonesia should be from the ones who are benefiting immensely from the current system, not from those struggling on day-to-day subsistence.

China has subsidized prices for a long time to keep the export machine running. Yet a narrower-than-expected trade surplus last month forced China to raise the price of fuel. Nonetheless, China is committed to increasing value-added exports and it must continue to subsidize fuel to play the role of the world's factory.

The country provides for economic placation by way of continued fuel subsidies and mandating that any investing entities share skills and tech transfers through joint ventures to increase its value added activity on its exports. It has recently mandated that any new investments in its coastal area must be value added, not merely labor intensive.

But unfortunately Indonesia is not considering any such strategy. And the people on the street know full well the impact of lessening any subsidy: any shortfall will be forced on their shoulders, not on those of the elite. The people behind the budgets seem to be playing things by the numbers under a static rubric of today. They are not thinking about the future.

But fuel subsidies should be seen as a long-term, qualitative issue and not a short-term, quantitative one. Instead of a wish list about what a reduction in fuel subsidies might bring, let's consider a few things that active empowerment, leadership and resource ownership can produce.

Pollution reduction is one. Reducing fuel subsidies will not solve this issue. Only greater investment in public transportation, alternative energy and the education required for developing those factors will in the long term.

The solution is not in building bigger overpasses, longer runways, or wider freeways. That only increases the dependence on fossil fuels. Leadership must make alternative projects a reality.

Value added capacity should be a second priority. Malaysia is already pursing this goal in its oil sector. Its residents are not interested in merely exporting crude and palm oil for short term gain. They want to develop finished oil products for export to developing Asia.

Value added products, under conventional economic theory, raise living standards, salaries and a country's gross domestic product. China, too, is therefore squarely focused on developing value added exports for its export industries.

Third, don't forget human resource development, as this is the real key to sustainability. Does Indonesia really want to become a cheaper default to higher-priced Chinese labor? The government's attitude should be one of selective investment. The main question should be: who stands to benefit more, foreign investors or ordinary residents?

Investments that foster low-wage tourism and apparel making or allow a flood of cheap, Chinese-made goods to enter the market are not the way to go. Trade Minister Gita Wirjawan has approved investment ventures from China into infrastructure, ports and power generation. These investments create higher-wage jobs, but the minister should know that China is well- versed in integrating its own citizens into these projects at all levels in the work processes. And that is an important thing for Indonesia to keep in mind.

But there are other examples for Indonesia's national leadership to take to heart. The US state of Alaska, for example, and the United Kingdom and Norway take the position that it is citizens who effectively own a country's natural riches.

The way the people are paid varies. Alaska generates a cash windfall each year that is divided among residents, about $1,000 yearly. The UK has a "citizens first" mandate for educating their own to work in both upstream oil drilling and downstream refineries via its workforce development arm. Norway has a preference for using its oil reserves to empower its citizens via free health care, education and subsidizing childbearing.

Obviously, these are countries with high levels of transparency, but the point is that something can be done for ordinary people if only the political will is there. It should also be noted that in the case of Alaska and in the UK, oil investors originally fought hard against these reforms. It took significant political leadership and vision to force gain-sharing in these industries to benefit the masses.

For Indonesia, exactly that is needed. And the fuel subsidies should be left alone until a real development and growth strategy has been prepared that will benefit all.

[Will Hickey, a former Fulbright professor of energy and human resources, is an associate professor of management at Solbridge International School of Business in Daejeon, South Korea. He can be contacted at whickey@solbridge.ac.kr.]

The week in review: Election and fuel prices

Jakarta Post - March 25, 2012

Dwi Atmanta – The countdown for the Jakarta gubernatorial election has begun, although the provincial poll commission has yet to declare eligible tickets for the race. All candidates have started to publicly make promises and disclose their platforms to win the hearts and minds of 7.5 million Jakarta voters on July 11.

Ever since the poll commission closed registration of candidates on March 19, Jakarta voters have felt the heated rivalry among the aspirants, in particular between incumbent Governor Fauzi Bowo and his contenders. It was unclear who started the fire, but the exchange of words between them has thus far been highlighted both in print and electronic media.

As part of the psychological political battle, Fauzi, better known as Foke, questioned the capability of non-Jakartans to lead the metropolis. He was apparently referring to his potential chief rivals, South Sumatra Governor Alex Noerdin and popular Surakarta mayor Joko "Jokowi" Widodo, who respectively are nominated by a coalition led by the Golkar Party and the alliance of the Indonesian Democratic Party of Struggle and the Great Indonesia Movement Party.

Fauzi, like any other incumbent, enjoys privileges that he can exploit to cling to power. He must be the most popular candidate, and, in many cases, popularity counts when it comes to elections. A leader will be worried about a decline in his or her popularity rating and will seek every avenue to regain lost ground.

As an incumbent, Fauzi may exhaust the regional budget for pro-people programs in order to win reelection without having to be afraid of allegations of vote buying. He may intensify his visits to the field to meet people and voters without having to face allegations of early campaigning. None of his contenders can file protests against Fauzi for such privileges as long as he is still the governor of Jakarta.

But it is also because of the incumbency that Fauzi is vulnerable to attacks from his challengers. Jokowi, for example, said a leader should not have to be an expert, but he could assign experts to help him deal with the myriad of problems plaguing Jakarta. Fauzi, a German-educated engineer, was known for his campaign tagline "Leave it to the expert" in the 2007 election, but has now come under mounting criticism over flooding and traffic congestion issues that have remained unaddressed.

All contenders will capitalize on Fauzi's unfinished business and all of his campaign promises made in 2007 that he has apparently failed to realize. They have tried, and will continue to try to build public opinion suggesting that Fauzi has not brought enough progress to Jakarta.

For some candidates, however, their early promises to build a better Jakarta will not mean anything if they fail the administrative screening currently conducted by the Jakarta election commission.

The ticket of Alex Noerdin and Nono Sampono will have to prove the coalition behind their nomination is solid following a claim by leaders of the Jakarta chapter of Christian-based Prosperous Peace Party (PDS) that they support Fauzi and his running mate Nachrowi Ramli. The ticket of Faisal Basri-Biem Benyamin and the pair of Hendardji Supandji-Achmad Riza Patria will have to submit thousands of additional signatures demonstrating the people's support – complete with copies of ID cards.

Many have predicted that the upcoming election in Jakarta could be the most exciting selection of a leader if all six pairs qualify. Certain others deem the gubernatorial election as a warm-up for the 2014 presidential election, which will see the ruling coalition break up with the absence of President Susilo Bambang Yudhoyono as the Constitution bans him from running, throwing the race wide open.

Given the fact that Jakarta is an urban society with relatively better education than the rest of the country, hopes abound that voters will decide based on logic rather than popularity or the promises of candidates. It will be smart voters, rather than smart candidates, that determine the outcome of the Jakarta election.

Amid the deafening beat of war drums ahead of the gubernatorial election, Jakarta hosted sporadic rallies to challenge the government's plan to raise subsidized fuel prices. Reminiscent of the May 1998 demonstrations that forced president Soeharto to resign, the Association of Student Executive Boards (BEM) pledged to hold even bigger rallies next week to foil the planned fuel price hike, slated to take effect on April 1, pending the House of Representatives' consent.

Protests against the fuel policy occurred simultaneously across the country, while the police discovered more attempts to hoard subsidized fuel.

The public mood in the lead-up to the April 1 key decision looks identical to the historic regime change in 1998, which was also preceded by a fuel price increase. That was probably the reason why President Yudhoyono shared his concerns about a plot to unseat him and threats against him and his family. It was not the first time Yudhoyono has raised the issue of his safety and, coincidently or not, a few days later the counterterrorism squad shot dead five suspected terrorists in Bali on March 18.

Controversy surrounding the raid in Bali, twice a victim of bomb blasts in 2002 and 2005, centered on why the police were so quick to kill the suspects when their capture alive would have led the police to the terror network operating in the country.

Unfortunately, at such a crucial time for his administration, Yudhoyono is overseas, hoping that when he arrives back on March 29 everything is settled. Who knows?