Jakarta – Thousands of people staged a peaceful demonstration at the Hotel Indonesia traffic circle to show support for Palestine during Car-Free Day on Sunday.

Masses from various groups, such as the Indonesian National Committee for Palestinian People (KNRP), the Silaturrahim Forum of the Indonesian Campus Proselytizing Council (FSLDK) and the Indonesian Muslim Students Action Front (KAMMI), protested against Israel's intensifying assault on the Gaza Strip and demanded the United Nations declare Israeli Prime Minister Benyamin Netanyahu a war criminal.

The crowds also urged the government to establish a diplomatic consulate in Palestine and urged country members of the Organization of the Islamic Conference (OIC) and the Arab League to consolidate their support.

"Around 1,000 people participated in the demonstration," FSLK chairman Marzuki said as quoted by tribunnews.com. Marzuki added that the demonstration was also aimed at gathering donations for Palestine and to encourage people to sign an online petition.

The demonstration kicked off around 7:30 a.m. The crowd marched to City Hall on Jl. Merdeka Selatan, Central Jakarta, at around 10 a.m. before dispersing due to heavy rain. The demonstration resulted in slight traffic congestion and held up Transjakarta bus services along the route momentarily.

Israel launched a military campaign on Wednesday after days of heavy rocket fire from Gaza, and has carried out some 700 airstrikes since, the military said.

Hamas health officials said 45 Palestinians had been killed and 385 wounded since Wednesday's escalation of the cross-border battle. In Israel, 3 Israeli civilians have died and 63 have been injured. Four soldiers were also wounded on Saturday. (aml/iwa)

Indonesian students protest against Israeli strikes

Agence France Presse - November 18, 2012

Hundreds of Indonesian Muslim students protested in Jakarta Sunday against fresh Israeli air strikes on the Gaza Strip.

About 1,000 students carried Palestinian flags and photographs of destruction and civilian casualties, chanting "Save Gaza, Save Humanity" in English outside the US embassy.

"We are showing our support for Palestinians who have suffered in the latest attack," protest coordinator Yousef Saiful Gunawan, 21, told AFP. "America is a country that has always championed human rights but why is it not doing anything to stop Israel's attacks? Israel is the real terrorist," he added.

Israeli air strikes killed 16 Palestinians in Gaza on Saturday, and fresh strikes on a media centre and homes early Sunday caused further deaths and injuries. Indonesia, the world's most populous Muslim nation, with 240 million people, is a strong supporter of the Palestinian cause.

Foreign Minister Marty Natalegawa on Thursday said the government was "following the situation on the Gaza Strip closely and attentively". "Indonesia urges all parties to refrain from further actions so as not to aggravate the situation which could result in casualties among innocent civilians," he said.

West Papua

Call for NZ to pursue West Papua peace role

Otago Daily Times - November 23, 2012

John Gibb – New Zealand could improve the "critical" human rights situation in West Papua by pursuing the peacemaking role that proved successful during the earlier Bougainville conflict, human rights advocate Frederika Korain says.

Miss Korain, a West Papuan undertaking university postgraduate study in Canberra, spoke in Dunedin recently about human rights and associated gender issues in West Papua.

After her talk at the National Centre for Peace and Conflict Studies at the University of Otago, she said New Zealand enjoyed a "very good reputation" in the region.

And she believed offering to help resolve issues would not harm New Zealand's "very good relationship" with the Indonesia Government, andIndonesia would also benefit from resolving conflicts.

New Zealand could host Indonesian representatives and people from West Papua on neutral ground, and act as mediators, as had happened successfully during the Bougainville conflict, beginning in 1997.

Some peaceful demonstrations in West Papua had recently been broken up violently by the authorities, and some civil rights leaders had been killed. A "horrible situation" had developed and positive action was needed, she said.

Pastor shot dead in Papua

Jakarta Globe - November 22, 2012

Farouk Arnaz – A pastor was found dead on a street in Merauke, Papua, on Thursday morning with a gunshot wound to her head.

The victim was identified as Frederika Metalmeti, the pastor of the Bethlehem Pentecostal church in Boven Digoel district for the past 10 years.

"The victim is a resident of Tanah Merah," National Police spokesman Brig. Gen. Boy Rafli Amar said on Thursday. "Police officers investigating the crime scene found a 4.5-millimeter shell casing, helmet, bag and sandals owned by the victim."

Boy said the perpetrator shot Frederika on her left forehead. "The remains are being autopsied at Boven Digoel hospital," he said.

Boy said police have yet to determine the motive of the shooting but they were in the process of questioning two witnesses. Liputan6.com reported that a Merauke Military commander claimed Frederika was shot by a close friend who happens to be a member of the military.

Police get serious about addressing graft in Papua

Jakarta Post - November 21, 2012

Nethy Dharma Somba, Jayapura – Papua Police are determined to seriously tackle rampant corruption practice in the Papau and West Papua provinces.

On Tuesday, Papua Police's directorate of special crimes questioned Maybrat Regent Bernard Sagrim on his capacity as a witness in the alleged Rp 3 billion (US$310 million) corruption case.

Accompanied by his lawyer Petrus Ohoitimur, Sagrim was interrogated with 40 questions from 9 a.m. local time.

Director of Papua Police's special crimes Sr. Comr. Setyo Budiyanto explained that the misused funds were taken from grants amounting to Rp 15 billion awarded to West Papua province and Sorong Regency.

"After being audited by the Development Finance Controller [BPKP], it was found out Rp 3 billion of the funds was unaccounted for," Setyo said, adding that the funds were initially intended to finance the government management in Maybrat, which had just been separated from Sorong regency in 2009.

Papua Police chief Insp. Gen. Tito Karnavian has instructed all police forces covering Papua and West Papua to get serious in their dealings with corrupt cases by November and December this year.

In response to his commitment to eradicate corruption in Papua, the National Police headquarters has provided Rp 2.8 billion (US$311,000) in funds and personnel backup to conduct joint investigations.

In 2011, Papua Police were able to uncover 28 graft cases and returned Rp 5.3 billion in lost funds to the state, and as of October this year, they handled 37 corrupt cases and saved Rp 120 billion of funds.

The redistribution of wealth has failed to materialize in Papua as most of the major funds channeled by the central government to Indonesia's easternmost provinces have been wasted – or embezzled by the local elites – as is evident by the fact that Papua and West Papua remain the most disadvantaged regions.

In connection with the alleged fund misuse in Maybrat, the Papua Police have named Sepran Souw, a member of staff at the Maybrat regency. "Sepran has been charged under Article 2 and 3 of Law No. 31/1999, which has been renews with Law No. 20/2001 on corruption with maximum jail sentence of 20 years," Setyo said.

Setyo said further that the Papua Police had actually planned to question the Maybrat regent for a long time, but the plan was hindered by the fact that they had to ask for permission from the President.

However, the limitation was already omitted after the Judicial Court issued a verdict that there is no need for all law enforcers to ask for permission from the President any longer. "This will speed up the investigation," he added.

Sagrim went to the Papua Police headquarters in Jayapura to meet his summons. His lawyer Petrus denied his client had any involvement in the graft case.

"The graft case has nothing to do with my client because each official has his or her own responsibility. Even though one of my client's subordinates had been named as a suspect, his responsibility should not necessarily be burdened to his superior," he said.

Petrus said that his client had cooperated with the police by meeting the summons. "My client was questioned as a witness," he added.

NPPB: A rival organization created by Indonesia to compete with KNPB

West Papua Media - November 17, 2012

Jayapura, KNPBnews – In their continuous efforts to destroy the legitimate movement of the people of West Papua who are fighting for their rights, Indonesian counter-intelligence operations have now created a rival organization called the West Papua Youth National Committee (Komite Nasional Pemuda Papua Barat, or KNPPB).

The organization claims itself to be a forerunner of a self-claimed Republic of West Papua under the leadership of Yance Hembring, an agent of the Indonesian Republic.

The KNPPB, an acronym which bears a striking resemblance with KNPB, was created by Indonesia to further strike a blow at the genuine struggle for Papuan rights, led by the KNPB.

The fact that Indonesia would instigate further attacks towards the good image of the political struggle of the people of West Papua was to be expected and it was also predicted.

It was only a matter of time before journalists of the newspaper Bintang Papua, a number of which are mere agents of Indonesia, calculatedly published the news item concerning the establishment of this rival organ, based on information passed on by sources who are nothing more than the minions of the Unitary Republic of Indonesia (NKRI), and who have been paid to discredit the struggle of the people of West Papua, a struggle led by the KNPB and the people of West Papua.

Active monitoring of the online media shows that Yance Hembring's group constitutes a faction of the OPM which has already surrendered to the Republic of Indonesia and which is now being used by Indonesia to influence and destroy the bases of the OPM. This faction is now also being used by Indonesia to recruit young people to destroy the KNPB by setting up the rival organ called KNPPB, in exchange for money.

The release today of this deceit by the newspaper Bintang Papua (issues numbers 14 and 15) has as main purpose to blacken the good image of the KNPB and to diminish the sympathy of the people of West Papua for the KNPB. Wim Metlama, KNPB's National Spokesperson, said that Indonesia was resorting to the old ways of paying Papuans and Papuan newspapers in order to play their dirty political games and soiling the good image of the struggle of West Papua.

"Treacherous moves like these are not something new. These are old tricks that Indonesia has been using, but it has always been to no avail. And we are convinced that the people of West Papua are wise enough to recognise these dreadful tricks played by the colonisers. Even more so, this deceit only proves once again to the people of West Papua that Indonesia is in the habit of manipulating the truth and lying to the people, and precisely for that reason will they realise that the NKRI is truly an occupying colonial force in West Papua", said Wim.

The newspaper Media Papua is unfortunately contributing to the spreading of the lie, by publishing the news item and disseminating the deceitful information into the public in West Papua.

According to our monitoring, a month ago, Papua police chief Tito Karnavian had approached the board of editors of the newspaper Bintang Papua and he had asked them for their support for his colonial agenda. Soon, if not already, many agents of the printed media and other reporters in West Papua will be offered money in return for services to support the colonial program as Tito Karnavian has recently requested.

[Translated by LT.]

Aceh

TNI pans use of GAM flag as Aceh standard

Jakarta Globe - November 22, 2012

SP/Muhammad Hamzah, Banda Aceh – The military's top officer in Aceh has objected to calls to use the flag of a defunct separatist group as the official flag of the province.

Maj. Gen. Zahari Siregar, head of the Iskandar Muda Military Command, which oversees military operations across the province, said on Thursday that the proposal by the Aceh administration to the provincial legislature to use the flag of the Free Aceh Movement (GAM) could revive separatist sentiment in the province.

He argued that the draft of the qanun, or Islamic-based bylaw, had already been widely criticized by academics and historians, and should not be allowed to pass by the legislature.

He said that under a 2007 government regulation on regional insignia, no official flags or seals may contain any likeness to or elements from flags or seals of outlawed or separatist organizations.

Under the qanun, the provincial flag will be identical to that of the GAM, an organization that waged a bloody separatist struggle for 29 years before it was disbanded in late 2005 following a peace deal with the government.

"If it does get approved, the Aceh administration will have to get further approval from the central government," Zahari said, adding that it was unlikely that Jakarta would agree to the change.

He also urged Aceh residents not to hoist the GAM flag on Dec. 4, the anniversary of the organization's founding, warning that any such acts would be treated as a security threat and dealt with accordingly by the military.

The GAM flag features a white crescent and star imposed on a red background with horizontal bands of white, black and white stripes running above and below it.

Adnan Beuransyah, a member of the provincial legislature, said the draft of the qanun was "nearly final" and was expected to be passed by the legislature before the end of the month.

However, he said there was still some tweaking to do, including on the dimensions of the crescent and star and the width of the black and white stripes.

He argued that because the GAM no longer existed, the prohibition on using its flag did not apply. Adnan said he was not worried the Home Affairs Ministry would refuse to acknowledge the new flag.

"What we're approving is essentially the aspirations of the people, not the aspirations of those in power," Adnan said.

Husaini Husda, a historian at the Ar-Raniry State Institute of Islamic Studies (IAIN) in Banda Aceh, approved of the proposed flag, saying it resembled the old flag of the Aceh sultanate.

Police blame victim for Aceh mob violence, fail to identify attackers

Jakarta Globe - November 19, 2012

Nurdin Hasan & Farouk Arnaz – Banda Aceh – Police in Aceh have blamed the leader of a supposedly heretical religious group for a brutal mob attack that left him and two others dead on Saturday, adding that there is no incriminating evidence against the attackers who also torched the victim's home.

Tengku Aiyub Syahkuban, the leader of the religious group, was killed after a mob of around 1,500 people armed with machetes and sticks set fire to his home in Jambo Dalam village, Bireuen district, early on Saturday while he was congregating with followers.

One of Aiyub's followers, Muntasir, and one of the attackers, Mansur, also died in the incident, while 10 people were seriously injured.

Aceh Police spokesman Sr. Comr. Gustav Leo said on Sunday that had he survived the attack, Aiyub would have been named a suspect in the case. "For the murder of civilians, [the suspect] would be Aiyub. But he died, so his suspect status is automatically annulled," he told the Jakarta Globe.

As for the attackers, Gustav said none of them had been named a suspect. He added that police were having trouble identifying who among the 1,500 attackers was directly responsible for the deaths. "We haven't been able to name any suspects. All we've been able to do is question witnesses from both sides," he said.

According to police, the incident began when dozens of men came to Aiyub's home at 10:30 p.m. on Friday to demand that he cease his teachings, which they claimed were blasphemous.

Aiyub and his followers reportedly attacked the men, killing Mansur with a machete. After that, the aggressors returned, this time with a huge mob at their back, and surrounded Aiyub's home in the early hours on Saturday.

The machete-wielding mob began throwing rocks at the house and set it on fire. As Aiyub and Muntasir tried to flee from the burning building, they were brutally murdered by the mob.

Bireuen Police Chief Adj. Sr. Comr. Yuri Karsono said his team could do little to stop the violence. "At 2.30 a.m. on Saturday, the security personnel could no longer contain the mob," he said.

He added that his men tried to escort Aiyub and his followers from the house before the mob arrived, suggesting that police had prior knowledge that the attack was about to happen.

Yuri said police managed to get two of the followers to safety, including one who was badly injured by the mob, but Aiyub and Muntasir refused to leave the house. He said police also requested reinforcements from the military, but the soldiers were unable to get to the scene because they were blocked by the mob.

Rights groups have warned of a worrying increase in the number of cases of violence against religious minorities. They also point out that the perpetrators are rarely prosecuted, and in the few cases in which they are brought to trial, they have walked away with lenient sentences.

In February last year, three people from an Ahmadiyah community in Cikeusik, Banten, were murdered in a similar attack by a mob of more than 1,000 people. Only 12 people were charged with the attack, receiving token jail sentences of just three to six months.

In August this year, two people from a Shiite community in Sampang, East Java, were killed in an attack that forced the community to flee from their homes. One person has been charged with orchestrating the attack, but has yet to go on trial.

Sectarian attack leaves three dead in Aceh

Jakarta Post - November 18, 2012

Hotli Simanjuntak – Three people were killed and nine others injured when a sectarian attack broke out at Jambo Dalam village in Peulimbang district, Bireuen regency in Aceh on Friday night.

The attack was aimed at the house of Tengku Aiyub Syakuban, 60, after he was accused of disseminating heretical teachings.

The three victims were identified as Aiyub; Muntasir, 26, a residentof Puuk village in Peulimbang; and Manyur, 35, a resident of Lancok Bungon village in Peulimbang. Both Aiyub and Muntasir were reportedly burned alive during the attack.

The three bodies were sent to Dr. Fauziah Hospital in Bireuen, about 250 kilometers from the Aceh capital of Banda Aceh, on Saturday morning.

The attack was reportedly caused by anger among the residents when they learned that Aiyub, who had been reported to the authorities earlier for disseminating what locals called "heretical teachings", had resumed his activities.

Aiyub had actually signed an agreement to stop his teachings, but later reneged on the pledge. Therefore local residents decided to attack him at his house, which was dark at the time because the lights had been switched off on purpose.

The attackers became increasingly angry and forced their way into the house, only to face an unexpected counterattack once inside. A violent clash resulted and led to the death of Mansur, one of the attackers.

"Due to the counterattack from Aiyub's followers, the masses were enraged, so they acted blindly," Aceh Police spokesman Sr. Comr. Gustav Leo said Saturday.

Upon hearing that one of the residents was killed during the attack, a greater number of people gathered and later launched a new attack, setting the house on fire.

Aceh residents have demanded that the government forbid what they called "heretical movements", and that law enforcers criminalize those who proselytize non-Islamic teachings.

The spread of "heretical teachings" in Aceh is said to have caused public unrest and the victims are from the younger generation, especially high school and university students. Therefore, residents have demanded that the governor issue a decree banning heresy, profanity and apostasy in Aceh.

Bireuen Police chief Adj. Sr. Comr. Yuri Karsono said that the police officers were still conducting an investigation into the case. Hundreds of officers, backed by soldiers, have been deployed to the site of the incident to prevent fresh attacks.

"The situation last night was tense. No security officers could enter the incident site or evacuate the victims, let alone ask for information. Now, however, the condition has increasingly returned to normal and we hope there will not be any new clashes," Yuri said Saturday as quoted by kompas.com.

The attack took place as residents reached a breaking point in their tolerance for Aiyub's alleged heretical teachings, which they claimed included four "misleading" principles: His mentioning that the Koran was incomplete, the holding of prayers in dark locations, that the performance of Friday prayers was not obligatory for men and that sexual intercourse out of wedlock was permissible.

Human rights & justice

State must end impunity over human rights cases, says Elsam

Jakarta Post - November 23, 2012

During the commemoration of International Day to End Impunity on Friday, the human rights watchdog Institute for Research and Advocacy (Elsam) had once again urged the government to prosecute unfinished human rights violation cases.

According to Elsam executive director Indriaswati D. Saptaningrum, most of the perpetrators involved in human rights violations still walk free, as the government has kept silent.

"Seven human rights cases are stuck in the Attorney General's Office (AGO)," Indriaswati said, citing unsolved cases like the 1965 communist purge and the 1998 Tanjuk Priok massacre.

"Those crimes that happened in this nation's past are so gross and unacceptable, but remain unsolved until today," she said. "Recently, we also witnessed the rampant violence against journalists"

Elsam urged President Susilo Bambang Yudhoyono to evaluate the performance of AGO in taking steps to resolve pending human rights violation cases. "We must keep reminding the government that neglecting means giving impunity and protection toward the perpetrators of human rights violations," she said.

The International Day to End Impunity was launched Nov.23 of last year to observe the 2009 Ampatuan massacre in the Philippines, where 32 journalists and media workers were murdered.

Through the commemoration of the day, human rights activists call on governments to bring justice for those who were killed or kidnapped when they tried to defend their freedom of expression. (cor/lfr)

Rights abuse victims tell government to end impunity

Jakarta Post - November 20, 2012

Jakarta – Victims of human rights abuses and rights advocacy groups are pushing the government to formally admit past human rights violations and apologize to families and survivors of the victims.

The pressure is being given as part of the International Day to End Impunity which falls on Nov. 23. "We want the President, whoever he or she is [or was], to be willing to apologize to us, the victims of atrocities conducted by the state," said Sri Sulistyawati in Jakarta on Monday.

The 72-year-old former journalist said she was forcefully arrested after the New Order administration suspected her of being a member of the outlawed Indonesian Communist Party (PKI). She was also imprisoned for 11 years without trial.

Sulistyawati and other victims of the 1965 purge, as well as victims of the 1984 Tanjung Priok riot, the 2003 Aceh incident and the 1998 May riot, have joined the Commission for Missing Persons and Victims of Violence (Kontras) and Amnesty International for a series of campaigns urging the government to end impunity.

The victims and NGOs are scheduled to meet with the National Commission on Human Rights (Komnas HAM), the National Commission on Violence against Women (Komnas Perempuan) and the Law and Human Rights Ministry to discuss human rights issues.

In addition, they are also holding a public lecture in a private university in Jakarta to raise awareness of human rights violations. "Our specific aim is to remind university students of the serious human rights violations in the country," said Sri Suparyati of Kontras.

Various parties, including the state-funded Komnas HAM, have outlined in reports and studies the gross human rights violations involving the state in the past. However, the government has not taken concrete actions to bring the perpetrators to justice.

Komnas HAM has also officially submitted its findings and recommendations to the Attorney General's Office (AGO), but the law enforcer has taken no action, arguing that the rights commission's reports give inadequate legal proof for them to investigate past abuses,

Therefore, the government's stance contradicts article 35 of Law no. 26/2000 on human rights courts, which stipulates that victims of human rights violation should receive rehabilitation, restitution and compensation.

"I just want the government to fulfill my rights," said Riyati Darwin, who lost her son in the 1998 May riot. Up until the present day, she said, the government has shown no intention to look for the responsible parties that murdered her son.

"We want the government to rehabilitate us very soon because we have become old and we want our descendents to be no longer stigmatized. Death is just days away," Sulistyawati said.

Besides working with the two NGOs, Riyati and Sulistyawati will also work hand-in-hand with Bosnian rights activist Jasna Zecevic to convince the government to solve human rights issues in the country.

"We cannot build a country until we solve the problems of the past," said Zecevic, who is still struggling to raise the awareness of the Bosnian government about rights abuse issues. (riz)

Media & press freedom

Indonesian air force denies abusing journalists in Palembang

Jakarta Globe - November 23, 2012

The Indonesian Air Force has denied allegations that its soldiers physically abused photojournalists covering a demonstration in Palembang, South Sumatra, earlier this week.

Air Force spokesman First Marshall Azman Yunus said that on Wednesday morning, about 20 soldiers from the Palembang air base were trying to close down an illegal plantation along Jalan Harun Sohar, Palembang, when locals tried to block them.

He said the 4.5-hectare land was owned by the state and should be under the management of the Air Force. "The 20 soldiers from the air base were intercepted by about 50 people with sharp and blunt objects," he said on Thursday, according Antaranews.com. "Our soldiers were only trying to protect themselves."

Sriwijaya Post reported that photojournalist Kris Samiaji, of Sumatera Ekspress, was approached by 10 soldiers when he was taking photos of other soldiers allegedly beating up protesters.

"My camera was grabbed by a soldier," Kris was quoted as saying. "I was punched in the left ear. An examination at Bhayangkara hospital showed that there are bruises on my ear and also on my right ribs."

But Azman said that the soldier who grabbed Kris was instead trying to pull him away from the path of a speeding car.

"The one who said he was was pushed and fell down, and later said that he was a journalist, actually [the soldier who is] a member of the Palembang air base was trying to help him," he said, according to Antaranews.com. "So [he] was not beaten up."

Berita Pagi reporter Adi Kurniawan also reportedly suffered similar abuse when a soldier smashed the mobile phone he was using to record another soldier attacking the demonstrators.

"Later in the afternoon, dozens of journalists met the air base commander, including the one who was pushed," Azman said, referring to Kris. "They were told the reason [it happened] was that a car was passing by. The soldier who pushed [him] said he did not beat him up."

Palembang Air Base Commander Lt. Col. Adam Suharto apologized for the incident. "As far as I know, Air Force soldiers are committed to not being violent," he said on Thursday as quoted by Suarapembaruan.com. "Even if there was [violence], it was not intentional. I'm ready to discuss with journalists to solve this problem."

Adam said that the soldier, who he identified as Jimmi, also told him he was only trying to save Kris from being hit by a car.

Air force attack reporters in latest blow to press freedom: Local media

Jakarta Globe - November 21, 2012

Indonesian Air Force soldiers allegedly attacked two journalists in Palembang, smashing equipment and choking one reporter as they attempted to document instances of military brutality at a protest on Wednesday, local media reported.

The journalists were documenting a large demonstration in Sukarmi, Palembang, on Wednesday when the soldiers reportedly began to beat the protestors. Journalists were recording video and snapping photos of the abuse when the Air Force members reportedly turned on the press, chasing reporters from the scene and beating two caught in the fray, local media reported.

Photojournalist Kris Samiaji, of Sumatera Ekspress, was covering the demonstration as protestors marched from Jalan Soekarno Hatta to Sultan Mahmud Badaruddin II airport when he was approached by 10 soldiers.

"My camera was grabbed by a soldier," Kris told the local newspaper Sriwijaya Post. "I was punched in the left ear. An examination at Bhayangkara hospital showed that there are bruises on my ear and also on my right ribs."

Berita Pagi reporter Adi Kurniawan reportedly suffered similar abuse as a soldier smashed the mobile phone he was using to record the attacks. "His mobile phone was smashed to the ground and his neck was strangled," Kris told Sriwijaya Post. Both Adi and Kris planned to report the incident to the military police.

It is the second instance of alleged press abuse by members of the Indonesian Air Force in the past month. Last month, a mid-ranking Air Force member was caught on video choking a Riau Pos photojournalist attempting to take a photo of a downed Air Force jet in Pekanbaru, Riau.

Lt. Col. Robert Simanjuntak later publicly apologized for the attack outside the office of Riau Pos, hugging photojournalist Didik Herwanto and shaking hands with five other reporters victimized in the attacks.

But last week one of the reporters, Riau Televisi cameraman Fahri Rubianto, was pulled from his car and beaten by four unidentified people in Pekanbaru, Riau. According to the Antara News Agency, Fahri has since gone missing. His family has not confirmed the reporter's disappearance.

Political parties & elections

Government requires parties to 'educate' voters

Jakarta Post - November 23, 2012

Bagus BT Saragih, Jakarta – The government has issued a regulation obliging political parties to spend at least 60 percent of assistance funds received from the state budget on voter education programs.

The regulation requires parties to launch campaigns to educate voters on the democratic process and on the specifics of their policy platforms, with a goal of encouraging a more active democracy and discouraging transactional politics and a reliance on celebrity politicians.

Apung Widadi, a political corruption analyst from the Indonesia Corruption Watch (ICW), said that he welcomed the regulation, despite its flaws.

"One part of the new regulation that we should applaud is that the Supreme Audit Agency [BPK] is now obliged to conduct strict and tight audits of political parties," Apung said.

"This is significant. We have learned from research that almost all nine parliamentary political parties have failed to demonstrate transparent and accountable bookkeeping."

Apung noted that the regulation lacked monitoring and enforcement mechanisms. "It's a shame [....] Political parties can just ignore the regulation without having to worry about possible sanctions."

Government Regulation (PP) No. 83/2012, which was signed by President Susilo Bambang Yudhoyono earlier this month, amends PP No. 5/2009, according to a press release from the Cabinet secretary.

According to the 2011 Political Parties Law, parties are entitled to annual grants from the central and regional governments. The amount of the "assistance funding" is based on the number of votes that individual parties received in the prior national or regional election, and the parties' number of seats in the House of Representatives and regional legislative councils.

Political parties receive only meager funding from the central government. In 2010, for instance, President Susilo Bambang Yudhoyono's Democratic Party received Rp 2.34 billion (US$248,040) from the state coffers, while the Golkar Party received Rp 1.62 billion and the Indonesian Democratic Party of Struggle (PDI-P) received Rp 1.57 billion.

Earlier this year, the ICW released a report that said that parties had spent the assistance funds, which come from taxpayers, recklessly and without accountability.

Senior leaders of several of the nation's leading parties said they welcomed the regulation. PDI-P lawmaker Eva Kusuma Sundari said that the party had always allocated its assistance funds for political education and training programs.

"The new regulation is very good for the regeneration of our members, even though we actually also need the money for our daily operations," Eva told The Jakarta Post via a text message.

Abdul Malik Haramain of the National Awakening Party (PKB) said that the PKB was ready to make political education a priority in its next fiscal year.

"Political education must continue, especially since the public tends to have the incorrect perception that political parties are busy only during the times before the election," he said.

Meanwhile, United Development Party (PPP) secretary-general Romahurmuziy said that the PPP had been consistent in allocating funds for education programs.

Indonesian Survey Institute (LSI) political analyst Kuskrido "Dodi" Ambardi said that mandatory political education were needed as some parties grew increasingly pragmatic, doing away with ideology and focusing only on fund raising.

"The public has lost trust in political parties, as these organizations don't respond to their needs anymore," Dodi said.

A trend to nominate movie starts and celebrities for high office indicated that parties have been reluctant to educate voters, according to the analyst. "This shows that parties will resort to any means just to gain votes," he said.

Parties have been reluctant to account for the money the receive from the state budget. In September, the ICW released a report that said that only a handful of political parties had fulfilled legal requirements to provide financial reports upon request.

The parties holding seats in the House that provided the ICW with financial reports were the Great Indonesia Movement Party (Gerindra), the PDI-P, the People's Conscience Party (Hanura) and the Prosperous Justice Party (PKS). The non-compliant parties were identified as Golkar, the PKB and the National Mandate Party (PAN).

Vice president impeachment attempt gathers speed

Jakarta Post - November 22, 2012

Margareth S. Aritonang and Bagus BT Saragih, Jakarta – Lawmakers, especially those from opposition parties, have renewed their efforts to impeach Vice President Boediono after the country's top antigraft body implicated him in the 2008 Bank Century bailout scandal in his capacity as then Bank Indonesia governor.

It would be the third attempt by the House of Representatives after those in 2010 and 2011, which were also based on the bailout scandal.

Like in 2010 and 2011, analysts believe the plan to build a momentum for the impeachment process would not see Boediono losing his vice presidential post but would merely serve as another political bargaining chip.

Lawmakers and officials from President Susilo Bambang Yudhoyono's inner circle have suggested that the President has been planning another Cabinet reshuffle, probably the last before he ends his second term in office in 2014.

Speculation is rife that that some ministers who represent political parties may lose their Cabinet posts due to corruption and extramarital affairs, prompting House members from respective parties to utilize the Century case as a political weapon to retain concessions in the Cabinet.

"KPK [Corruption Eradication Commission] leaders have suggested that Boediono was involved but the commission did not have the power to charge him. Hence, we can use our right to shift public opinion," Akbar Faisal from the opposition People's Conscience (Hanura) Party said on Wednesday.

He was referring to the House's constitutional right to express its opinion, which is the first political step before the Constitutional Court decided if a vice president can be impeached based on criminal allegations against him.

Support for the impeachment also came from politicians in government coalition parties, such as Bambang Soesatyo from the Golkar Party, the biggest ally of Yudhoyono's Democratic Party.

"The right to raise a political opinion, if endorsed, could serve as the ultimate decision to judge whether Boediono was really involved in the controversial bailout," Bambang said. One of three ministers from Golkar was rumored to be at risk of being sacked from the Cabinet.

The Democratic Party, as well as other government coalition parties such as the United Development Party (PPP) and the National Awakening Party (PKB) predictably declined to join the impeachment proposal.

"It's not that simple to impeach a vice president because everything is already regulated in the Constitution. It's better to trust the KPK to validate his [Boediono's] role," the Democratic Party's Max Sopacua said.

The Great Indonesia Movement (Gerindra) Party, meanwhile, showed a surprising move not to side with its fellow opposition parties to support the impeachment initiative.

"Allowing the KPK to investigate Boediono is the best option. Later, the House can decide what to do [after the KPK has completed its investigation]. It might lead to impeachment, but it's too premature now," said Gerindra lawmaker Martin Hutabarat.

Gerindra's stance has revived old speculation that Yudhoyono was mulling over making the party a coalition member and appointing a Gerindra minister in an attempt to take greater control of the House, which has frequently made major political moves against his administration.

Cabinet power struggle may end in reshuffle

Jakarta Post - November 21, 2012

Bagus BT Saragih and Margareth S. Aritonang, Jakarta – The ministers whose officials were implicated in the budget-fixing scheme revealed by Cabinet Secretary Dipo Alam may be in increasingly hot water with President Susilo Bambang Yudhoyono.

Comments from Heru Lelono, an expert member of the President's staff for information affairs, on Tuesday made it clear that the heat was on. "The President will definitely take firm action if evidence can be found that some of his ministers were involved in the misappropriation of state budgets."

However, the aide declined to confirm if firm action meant that the President would fire the ministers, which would lead to a Cabinet reshuffle. "If the ministers feel that they are 'clean', they have no reason to worry. Just work as usual," Heru said.

Dipo filed a report with the Corruption Eradication Commission (KPK) last week alleging that several officials from the Agriculture Ministry, Defense Ministry and the Trade Ministry had conspired with House of Representatives lawmakers to fix their budgets.

The Cabinet secretary said that he had documents from civil servants at the ministries to substantiate his allegations.

While some lawmakers have described Dipo's claims as a publicity stunt aimed at creating perceptions of a rift within Yudhoyono's multi-party Cabinet, Tjahjo Kumolo, a lawmaker of the Indonesian Democratic Party of Struggle (PDI-P), said that Dipo was in the middle of "power struggle" with top officials in Yudhoyono's inner circle.

Heru, however, dismissed such speculation. "I can understand that the Cabinet secretary's move has created pros and cons. But I don't think we can use it as evidence that the Cabinet is in disarray."

Critics outside the House have described Dipo's move as part of an elaborate plan hatched by Yudhoyono himself to justify another reshuffle in January, possibly the last before his second term ends in 2014.

Meanwhile, others have said that Dipo's move may have been to lay the groundwork for ousting ministers implicated in extramarital affairs from the Cabinet during a reshuffle, or perhaps for firing Youth and Sports Minister Andi Mallarangeng, who has been implicated in several graft scandals.

Presidential spokesman Julian Aldrin Pasha shrugged off notions that Dipo had been Yudhoyono's errand boy. "The President is aware of Pak Dipo's report to the KPK. However, it was [Dipo's] personal initiative and his individual political action," Julian said.

Increasing the heat for the ministers involved, albeit tangentially, in Dipo's allegations, copies of a document that appeared to have been issued by Finance Minister Agus Martowardojo began to circulate on Tuesday.

In the letter dated Sept. 25, Agus ordered his officials to halt the disbursement of Rp 678 billion (US$70.38 million) additional funding to the Defense Ministry. Lawmaker Mahfudz Siddiq, the chairman of the House Commission I overseeing defense and security, confirmed that the letter was genuine.

Mahfudz said that Dipo requested that the budget disbursement be put on hold during a meeting with Commission I lawmakers and a high-ranking official from the Finance Ministry.

Contacted separately, Col. Bambang Hartawan, the spokesman of the Defense Ministry, had no details on the allegations. "We don't have official information yet. However, we are ready to respond to the reports about alleged corruption in our ministry because we are open and transparent," Bambang said.

On Tuesday, KPK spokesman Johan Budi said that investigators had launched a separate investigation into a suspect fertilizer procurement at the Agriculture Ministry. Agriculture Minister Suswono has said that Dipo's report to the KPK "was based on inaccurate data".

Indonesian Islamic parties at crucial crossroads

Straits Times - November 19, 2012

Salim Osman – Two recent opinion polls caused a stir in Indonesia when they predicted that none of the major Islamic political parties would remain among the top five parties in the 2014 general election.

In a survey done last month, the Indonesian Survey Circle (LSI) painted a bleak picture for the Prosperous Justice Party (PKS), the National Awakening Party (PKB), the National Mandate Party (PAN) and the United Development Party (PPP).

If elections were held today, each of the four parties would garner less than 5 percent of the vote and Islamic parties collectively would gather a total of only 21.1 percent of the popular vote.

The top five are Golkar with 21 percent of the vote, the Indonesian Democratic Party of Struggle (PDI-P) with 17.2 percent, the Democratic Party with 14 percent, and two newer secular parties – the Gerindra party with 5.2 percent, and the newly founded National Democratic Party with 5 percent.

A separate survey by the National Survey Institute (LSN) also found that the top Islamic political party PKS would receive 4.4 percent of the vote and its colleagues PKB 2.8 percent, PAN 2.3 percent and PPP 2.2 percent.

Based on the findings of the polls, only the PKS, with 4.4 percent of the vote, would be able to retain its seats in the DPR as it crosses the new threshold of 3.5 percent of the vote, a requirement to enter Parliament.

Such a gloomy prediction for the parties rattled Islamic party politicians as they harbor ambitions to field their own candidates for the presidential election in July 2014, just three months after the legislative election.

The politicians are also upset that the LSI survey found that their leaders marked as presidential candidates such as PPP chairman Suryadharma Ali and PKS president Luthfi Hasan Ishaaq had low electability of around 2 percent.

Compare this with the more than 60 percent electability for leaders from secular parties such as Prabowo Subianto of Gerindra, Megawati Sukarnoputri of the PDI-P, and Aburizal Bakrie of Golkar.

While the Islamic party politicians may cast doubt on the reliability of the polls, the findings only confirm the decline of Islamic parties as seen in their performances in the elections.

In four elections, Islamic parties failed to receive more than 44 percent of the votes despite almost 90 percent of Indonesians being Muslim. Although Islamic parties won a combined total of 44 percent in the first general election in 1955, their electoral appeal has waned in the post- Suharto period.

In 1999, the Islamic parties won 36.3 percent of the vote, while in 2004, they got 41 percent. However by 2009, their vote dropped significantly to 29.2 percent, their worst performance since independence in 1945.

Why the slide in support for Islamic parties? And does this spell the end of political Islam?

First, voters may have less confidence in Islamic parties' capacity to tackle national problems, where the secular nationalist parties are seen to have a better grasp.

Said Umar Bakry of the LSN: "Voters do not think that life would be better if Islamic parties were to win in the election. They have more confidence in secular parties like Golkar and Gerindra."

Second, the performance of the parties' representatives in Cabinet reflects their lackluster leadership.

Over the past year, voters have been aghast at the blunders of former PKS president Tifatul Sembiring, who is Communication and Information Technology Minister, and PKB chairman Muhaimin Iskandar, the Manpower and Transmigration Minister, for his failure to protect Indonesian migrant workers abroad.

Third, parties like PKS thrived because of its anti-corruption slogans during campaigning. But once they are in government, "they are not viewed publicly as being aggressive enough in addressing the country's many cancerous scandals," wrote analyst Donny Syofyan of Andalas University in West Sumatra.

The party has spent much time and energy to beat off the challenge from its former legislator Yusuf Supendi, who filed a report with the Corruption Eradication Commission (KPK) in May last year alleging that party secretary-general Anis Matta had embezzled 10 billion rupiah (US$1 million) in campaign funds.

Fourth, Islamic parties face stiff competition from secular and nationalist parties for the same constituents with the latter accommodating the voters' Islamic aspirations. These parties have transformed themselves into secular-inclusive parties to accommodate the Islamic constituents. Voters with Islamic leanings now have a wider choice as they no longer have to depend on the Islamic parties to fight for their religious interests.

Despite waning support for Islamic parties, it is premature to say that political Islam is also in decline.

Islam still plays an influential role in Indonesian politics. Some observers see its impact as being more diffuse and subtle than before and it can no longer be regarded as the exclusive preserve of Islamic parties. All of the major non-Islamic parties combine Islamic appeals in their campaigns. This is done in response to the growing religiosity of Muslims in the country.

The influence of Islam is palpable in the enactment of laws at both the national and regional levels. Despite Islamic parties being a minority in the Indonesian Parliament, a significant number of laws promoting an Islamic or religiously conservative agenda have been passed.

For example, the controversial education bill that requires Christian schools to provide Islamic instruction for Muslim pupils in 2003 and the anti-pornography Bill in 2008 were passed by the House of Representatives (DPR), which is dominated by nationalist, secular and Pancasila-based political parties.

Local laws or peraturan daerah (perda) that are highly religious in content have also been passed by regional Parliaments dominated by non-Islamic parties.

On the issue of religious violence, there appears to be a weak response from political parties and their representatives in Parliament over the attacks on the religious minorities, such as followers of the Ahmadiyah sect and Shi'ite Muslims. Politicians avoid these issues because they carry political implications.

While Islam remains influential in Indonesian politics, the gradual decline in support for Islamic parties will have to be stemmed if party executives want their organizations to remain relevant and revitalized. These parties are now at a crucial crossroads.

KPU needs reform, strong leadership, conflict resolution

Jakarta Post - November 18, 2012

Jakarta – Nurul Arifin, a Golkar lawmaker at House Commission II on regional autonomy, says the House will summon Home Minister Gamawan Fauzi to clarify an internal rift within the General Elections Commission (KPU).

Lawmakers need information from the minister because the rift involves KPU secretariat staff members, many of whom are officials with the home ministry.

The conflict emerged publicly last Saturday after a KPU commissioner, Ida Budhiati, complained about the KPU secretariat staff members who did not fully support the work of the KPU members. She said secretariat staff members refused to help the administrative verification of 34 political parties in mid-October.

Nurul said on Friday that the House would summon the minister, as well as KPU secretary general Suripto Bambang Setyadi, in the next two weeks. "We will ask for explanations from Suripto and the minister, " Nurul, said during a panel discussion in Jakarta.

She added that the KPU, with the help of the ministry, should reorganize officials in the KPU secretariat in order to end the rift, which had caused a delay in the announcement of the verification result.

"The most important things [to do] are to replace the vice secretary general, Asrudi Trijono, and to evaluate the bureau heads. We cannot expect better performance from the KPU if he does not share the same visions as the commissioners," Nurul said.

Besides Asrudi, Nurul named KPU Law Bureau vice chief Saiful Bahri as another official who should be dismissed. According to Ida, Saiful shouted at her to leave an internal meeting between the KPU secretariat and the commissioners on Oct. 24. Saiful said the incident was the culmination of the internal conflict.

Saiful added that the KPU secretariat staff members had been supporting the commissioners. "We are right behind them," he said on Friday, as quoted by tempo.co.

Nurul's suggestions were echoed by Titi Anggraini, executive director for the Association for Elections and Democracy (Perludem), who said the KPU needed to break the shackles of the ailing bureaucratic system. (yps)

President or governor? Let's choose from our entertainment industry

Jakarta Post - November 18, 2012

Jakarta – Like any other citizen in the country, celebrities are granted a constitutional right to run for a political position. Yet many question, if not doubt, the competency and capability of celebrities to be national or regional leaders.

Veteran actor Deddy Mizwar brushed aside criticism directed toward fellow celebrities running for political office. "Anyone, including celebrities, businesspeople or physicians, has the same constitutional right to be elected as one of the country's leaders," he told The Jakarta Post on Friday.

Deddy, a prominent filmmaker, is the running mate of Ahmad Heryawan of the Prosperous Justice Party (PKS), who is seeking a second term as the governor of West Java, the nation's most populous province.

Deddy is not the only celebrity who is setting out to contest the election. Aside from the gubernatorial race, celebrities are also aiming for the country's top position.

Self-proclaimed king of dangdut Rhoma Irama recently expressed his willingness to run for president in 2014 after realizing his support from fans at an ulema group in East Jakarta. "This time, it feels as though I am hearing a calling [for the candidacy] from myself," Rhoma said as quoted by tempo.co recently.

Rhoma may be a popular figure, but he must convince political parties to provide support for his candidacy.

The current election law stipulates that a presidential candidate has to be supported by a party or a coalition of parties that has 25 percent of legislative votes, or 20 percent of seats in the House of Representatives in the legislative elections prior to the presidential election.

Like in other countries, celebrities in Indonesia have been used by political parties as "vote getters" during campaign periods. Surprisingly, 18 celebrities even made it into the House in the 2009 election.

Since then, the status of celebrities in Indonesia has shifted, according to political analyst with the Indonesian Institute of Sciences (LIPI) Siti Zuhro. "In the past, celebrities were only used by political parties to garner votes. But now, they are the parties' icons," Siti said.

This shifting trend, according to her, shows that political parties are desperate to look for any necessary means to win elections.

Siti said these celebrities should also take a look at themselves to see whether or not they are capable of running the country because "it takes more than one night to learn about state administration".

She believed that celebrities would eventually disappear from the country's political contests. "In the 1999 election, political parties relied on ulema as their icons. But now, they have been cast aside. Celebrities will also end up like them," she said.

According to Maswadi Rauf, the University of Indonesia (UI) analyst, political parties have fooled people by installing celebrities as leaders. "Political parties have deceived people. Celebrities have excelled in arts and culture. They are not trained to lead the nation," he said.

Both Maswadi and Siti criticized the tactic of political parties always nominating notable figures in any election to gain more votes. "They just want to take shortcuts [to get votes] by endorsing well-known people," Maswadi said. (riz)

Local celebrities in politics (select list)

1990s action film star Dede Yusuf (West Java Deputy Governor)
Singer and sinetron star Dicky Chandra (formerly Garut deputy regent; resigned in 2011)
Sinetron and film star Zumi Zola (East Tanjung Jabung regent)
1980s film star Rano Karno (Incumbent Banten deputy governor, previously Tangerang deputy regent)
Actor and singer Irwansyah (Independent candidate, 2013 Tangerang election)
Actor and director Deddy Mizwar (West Java deputy governor candidate)
Film and sinetron star Rieke Diah Pitaloka (incumbent House lawmaker, West Java gubernatorial candidate)

Surveys & opinion polls

Handle political surveys in Indonesia with care

Straits Times - November 23, 2012

Bruce Gale – Political polling in Indonesia, say seasoned observers, has little to do with determining voter preferences. Rather, the surveys conducted by the country's numerous political consultancies focus on promoting the political fortunes of the parties or rich individuals who hire them.

Recently published surveys have certainly come to sharply differing conclusions about the electability of potential presidential candidates for the 2014 elections.

One poll released last month by the Political Weather Station (PWS), for example, showed that former vice-president Jusuf Kalla was the most popular presidential candidate. He was supported by 22.14 percent of respondents. The predicted margin of victory, however, was narrow.

About 20 percent of voters preferred Indonesian Democratic Party Struggle (PDI-P) leader and former president Megawati Soekarnoputri, while another 19.3 percent chose Great Indonesia Movement Party (Gerindra) chief patron and former army general Prabowo Subianto.

A survey by the National Survey Institute at about the same time, however, produced a very different result. In this case, Prabowo came out on top, being favored by 20.1 percent of respondents. Trailing well behind was Wiranto, chairman of the People's Conscience Party (Hanura), a potential presidential candidate who did not figure in the PWS survey at all. He garnered support from 12 percent of those polled.

Kalla, who PWS declared the most popular, only got 9.4 percent. Megawati and Golkar party leader Aburizal Bakrie collected 8.8 percent and 7.1 percent, respectively.

With such wildly differing results, can any of these surveys be trusted?

The sample sizes – usually around 1,200 – are generally regarded by commercial survey firms as adequate, producing a margin of error of 2 percent to 3 percent. Most political surveys also draw their respondents from all of the nation's 33 provinces, underlining their claim that the results have truly national significance.

But the fact that the sole source of income of these consultancies comes from politicians and political parties suggests caution. Professional pollsters consulted for this story noted privately that there were many ways to rig a sample so that the results favor one or two particular candidates while still making it appear nationally representative.

The fact that the results of such surveys are used to influence the political process is hardly in doubt. The PWS survey, for example, has been used by the supporters of Kalla to suggest that Golkar might be better off supporting the former vice-president's bid for the presidency rather than that of its party chairman. Bakrie garnered support from only 16.3 percent of respondents in the PWS poll. Kalla and Bakrie have a long history of political rivalry.

So those looking for a more reliable means of measuring national political preferences must look elsewhere. One option is the Monthly Political Monitor produced by commercial pollster Roy Morgan.

This report is based on a series of questions added to regular consumer confidence surveys conducted for local banks, telecommunications companies and consumer goods manufacturers. Using a sample size of at least 2,000 and targeting respondents 16 years and older in 17 provinces, this survey claims to cover about 83 percent of the nation's voters.

With no particular political axe to grind, this poll reveals Prabowo to be the most favored of the current crop of potential presidential candidates. He was supported by 14 percent of respondents, closely followed by Megawati (13 percent), Bakrie (12 percent) and Kalla (9 percent).

State-Owned Enterprise Minister and newspaper tycoon Dahlan Iskan garnered 8 percent of support, and other potential candidates had insignificant support.

Far more important was the number of respondents who said they were undecided – 14 per cent. Based on these results, what sort of alliances are we likely to see in 2014?

Roy Morgan research also shows that despite the recent scandals that have battered his administration, President Susilo Bambang Yudhoyono remains the most popular politician in the country.

He may therefore have considerable influence over undecided voters. One option to preserve his legacy might be for Yudhoyono to support a Democrat-Golkar alliance, with Bakrie running for the presidency on condition that Yudhoyono's brother-in-law, Army Chief of Staff Pramono Edhie Wibowo, partners him as vice-president.

Both are military men, an occupation that, according to Roy Morgan, most voters prefer in a presidential candidate.

As for the opposition, the most viable coalition would be between Prabowo (Gerindra) and Megawati, or a candidate supported by her PDI-P.

The nation's political elite, however, is far more used to using surveys as a political weapon rather than as an analytical tool. It is therefore far from clear whether the results of independent polling will figure in the political calculations of the major players as the 2014 elections approach.

Aher-Deddy preferred choice: Survey

Jakarta Post - November 20, 2012

Bandung – West Java gubernatorial candidate Ahmad "Aher" Heryawan and running mate Deddy Mizwar are the most popular pair for the province's top posts, according to the results of a survey.

The survey, conducted by the Center for Policy and Strategy (Puskaptis) from Nov. 12 to 16, revealed that 34.8 percent of the 1,200 respondents would vote for incumbent Governor Aher, who is backed by the Prosperous Justice Party (PKS).

Of the respondents, 21.2 percent said they would vote for incumbent Deputy Governor Yusuf Macan Effendi, whose running mate is Lex Laksamana, Puskaptis revealed on Sunday.

Rieke Dyah Pitaloka and Teten Masduki were preferred by 15.7 percent of respondents, while gubernatorial aspirant Irianto "Yance" MS Syaifuddin and running mate Tatang Farhanul Hakim were in fourth position with 7.3 percent.

Independent candidate Dikdik Mulyana Arif Mansur and running mate Cecep Nana Suryana Toyib were the least popular gubernatorial hopefuls with only 1.9 percent of respondents saying they would vote for them.

"Swing voters account for 19.1 percent of total respondents," said Puskaptis chairman Husin Yazid.

The deputy governor, who is widely referred to as Dede Yusuf, came first in terms of popularity with 96.4 percent of respondents saying they liked him. Dede was a popular television actor back in the 1990s. Aher's running mate Deddy, a noted actor and director, came second in the popularity stakes with 94.2 percent.

Rieke, who was also a well known actress before turning to politics as a lawmaker from the Indonesian Democratic Party of Struggle (PDI-P), was the third most popular figure with 93.4 percent. "The popularity of the incumbent governor reaches 92.5 percent," Husin said.

Of the respondents, 88.7 percent were aware of the approaching Feb. 24 election, 6.5 percent said they knew very little about it, while 4.8 percent said they had not been informed about it.

"The West Java General Elections Commission (KPU) has to work hard to inform the public about the election," Husin said. "Political parties, the candidates and local administration also have to chip in." (han)

Most parents do not want their children to be lawmakers

Jakarta Post - November 18, 2012

Jakarta – A new survey published on Sunday revealed that most people do not want their children or future children to work as lawmakers due to the growing negative perception of the profession.

The Indonesian Survey Circle (LSI) found in its most recent poll of 1,200 respondents in seven provinces, a staggering 56.43 percent were reluctant to see their children become members of the House of Representatives. In the study, conducted from Nov. 12 to Nov. 15, only 37.62 percent of respondents hoped their sons and daughters would become politicians.

"According to a survey conducted in 2008, only 31.32 percent of respondents perceived being a lawmaker as a negative job for their children. The figure rose about 25 percent in the latest survey, reflecting the fact people have higher resentment toward the profession," Rully Akbar, an LSI researcher, said during a press conference in Jakarta.

According to focus group discussions and in-depth interviews of some respondents, LSI named corruption cases as the main cause of public dissatisfaction.

Respondents noted that many lawmakers had been implicated in corruption cases, such as the Youth and Sports Ministry's Hambalang sports complex project and the Religious Affairs Ministry's Koran procurement project.

"The respondents also considered State-Owned Enterprises Minister Dahlan Iskan's report that lawmakers had extorted state-owned firms, and Cabinet Secretary Dipo Alam's statement that political parties had put their members in ministries to orchestrate budget allocations," he added.

Most respondents (69.55 percent) also believed that House members only thought about their own group or other vested interests. Only 22.76 percent of respondents them were sure that lawmakers defended people's rights and needs.

Moreover, respondents believed that some lawmakers had conducted inappropriate acts, such as engaging in extramarital affairs (71.1 percent), living luxurious lifestyles (78.9 percent), skipping or sleeping during meetings (87.3 percent) and conducting humiliating acts, such as opening a pornographic website during a meeting (69.7 percent). (yps/iwa)

Social organisations & NGOs

Muhammadiyah celebrates 100 years

Jakarta Post - November 19, 2012

Bagus BT Saragih, Jakarta – Heavy downpours around the Gelora Bung Karno Stadium in Senayan, Central Jakarta somewhat dampened the jubilation of those attending the centenary celebrations of Muhammadiyah, the country's second-largest Muslim organization.

Many of the audience sat in the venue in wet clothes and several programs did not proceed as scheduled.

Despite the disruption, however, the organization remained upbeat about its ongoing role: To remain consistent in making a positive contribution to the country and to enhance its role in the global arena.

"We still have many items on our agenda, but the rain makes it impossible for us to proceed," Muhammadiyah chairman Din Syamsuddin said, referring to a musical performance by Dwiki Dharmawan.

"The rain is actually a symbol of God's blessing to Muhammadiyah on its 100th birthday," he added. At one point, Din braved the rain and hopped into a black Toyota Alphard to greet spectators via the car's sunroof.

Earlier, Din had managed to hold a teleconference with leaders from Muhammadiyah's provincial chapters, although it ended abruptly due to a technical glitch caused by the rain.

In his speech, Din said the celebration's tagline, "The Sun will Never Stop Enlightening the Nation", was aimed at bolstering the spirit of Muhammadiyah to remain relevant amid the increasingly fast dynamism in Indonesia, as well as the region and the world.

"Muhammadiyah has survived for so many years amid both internal and external challenges. Today, we must reinforce our spirit to help improve Indonesia in areas, such as education, social service, the economy, people's empowerment and many more. We will never tire of carrying out our programs in any kind of situation," Din said.

Muhammadiyah would also continue to widen its contribution outside Indonesia, he said. "Muhammadiyah realizes that our dedication cannot be limited only to Indonesia. In the past, Muhammadiyah has been involved in peace processes, such as in the Philippines and Thailand," Din said.

In his speech, Din also expressed his appreciation for the government's commitment and activity in supporting the struggle of the Palestinian people for statehood.

"I appreciate the government's active campaigning for Palestine via the UN and other international forums," he said.

Dozens of the country's top figures and foreign ambassadors were present at the event. Among them were former vice president Jusuf Kalla; Jakarta Governor Joko Widodo; former governor Sutiyoso; Forestry Minister Zulkifli Hasan; Regional Representatives Council (DPD) speaker Irman Gusman; Democratic Party chairman Anas Urbaningrum; People's Conscience Party (Hanura) chairman Wiranto; and noted media mogul and NasDem Party founder, Hary Tanoesoedibjo.

In his speech, Kalla conveyed his admiration for Muhammadiyah, which he said "had positively touched all Indonesians at all levels".

Hasyim Muzadi, former chairman of Nahdlatul Ulama (NU), also congratulated Muhammadiyah for its significance during its 100 years of existence. "I hope we can continue to strengthen the unity of the Islamic world, both in Indonesia and around the world," he said.

Din said he had invited President Susilo Bambang Yudhoyono and Vice President Boediono but the two had not been able to attend. "This is the third time the President has not attended but it is our fault for not getting in line with the President's agenda," he said.

Yudhoyono has been in Phnom Penh, Cambodia, attending the ASEAN and East Asia summits.

As a social organization, Muhammadiyah has never formally engaged in political activities. But, some observers suggest there are covert ties between Din, as well as Muhammadiyah, with certain political figures and groups.

Din was among high-level Islamic figures who stood as petitioners at the Constitutional Court in challenging the constitutionality of the state's oil and gas regulator, BPMigas. Last week, the court ruled in favor of the petitioners and disbanded BPMigas, causing a massive blow to Yudhoyono's administration.

The formation of the National Mandate Party (PAN) in the wake of political reforms in 1998 was initiated by senior Muhammadiyah figures, and the party's members were also dominated by Muhammadiyah followers, but the organization has never claimed to be officially affiliated with PAN.

Muhammadiyah was established by Ahmad Dahlan in Yogyakarta on Nov. 18, 1912 during the Dutch colonial era. Today, with about 30 million followers throughout the archipelago, it remains one of the most influential organizations in Indonesia.

Women's rights

Home Affairs Spokesman: 'Discriminatory' bylaws actually protect women

Jakarta Globe - November 23, 2012

Camelia Pasandaran – The National Commission on Violence Against Women says the number of bylaws in Indonesia that discriminate against women is increasing, but the Home Affairs Ministry spokesman said on Friday that it was all a matter of perspective.

The commission, known as Komnas Perempuan, said on Thursday that it found 282 bylaws that discriminate against women in 100 districts and cities in 28 provinces across Indonesia. Among them are bylaws that prohibit women from dressing in certain ways and going out late at night. Last year, the commission found 189 such discriminatory laws.

The commission said West Java and West Sumatra were among the provinces that issued the most number of discriminatory bylaws. West Sumatra, it said, has 33 such bylaws.

But Reydonnyzar Monoek, the spokesman of the Home Affairs Ministry, which has the authority to review and revoke bylaws, said he doubted the number was that high.

"Let us sit together and try to understand the substance of the bylaws so that we can have the same perspective," he told the Jakarta Globe on Friday.

"For instance, can you really say that a bylaw prohibiting women from going out at night in Tangerang, excluding factory workers who have to work the late shift, is discriminatory? It's being made to sound like it's restricting women, but it's actually protecting them from crime."

He said he also saw nothing wrong with a bylaw in Tasikmalaya, West Java, that obliged Muslim women to wear a hijab in the city. "It's only mandatory for Muslims, not for Christians," Reydonnyzar said. "Tasikmalaya residents are religious people."

The spokesman added that people should realize that men and women were created with different rights and obligations. "In the context of cultural values, though dressing is a personal matter, there are norms to be followed in the public space," he said.

"Besides, before a bylaw is passed, there's a period of public consultation," he said. "Where were those civil society organizations during that period? Why are they protesting now?" Komnas Perempuan deputy chairman Masruchah said the ministry spokesman did not know what he was talking about.

"The way government protects women should not be discriminatory," she told the Globe on Friday. "Do you think a single woman who's sick in the middle of the night should have to consult with the government first before going out to visit a hospital? And it should be understood that not every Muslim woman wants to wear a hijab. The government should not enforce religious obligations."

Masruchah said that instead of limiting women's rights, the government should think of ways to prevent crime. "They should instead assign more police officers at night, install more street lights and educate people about gender awareness," she said.

She added that the commission has actually been coordinating with the government and has created a team to address the issue, including with the legal division of the Home Affairs Ministry.

The news comes two weeks ahead of the 4th conference on "Role of Women in Development" Organization of Islamic Cooperation (OIC) member states, which will take place in Jakarta from Dec. 4-6. The theme of the conference is "Strengthening Women's Participation and Roles in Economic Development in OIC Member States."

Labour & migrant workers

Employers to boycott minimum wage for Batam

Jakarta Post - November 23, 2012

Fadli and Arya Dipa, Batam/Bandung – Employers in Batam, Riau Islands Province, have voiced plans to boycott the implementation of the new minimum wage set by the local authority, arguing that the decision was made under pressures and without the presence of their representatives.

This was supported by the provincial Chambers of Commerce and Industry (Kadin) head Johannes Kennedy Aritonang, the provincial Association of Indonesian Employers (Apindo) chairman Cahaya, Apindo Batam chairman OK Simatupang and the Small and Medium Enterprise (SME) Association chairman Syarifuddin Andi Bola in Batam on Wednesday evening.

The Batam Wage Council (DPK) announced to the protesting workers on Wednesday that the 2013 wage was set at Rp 2.04 million (US$211) per month, an increase of over Rp 600,000 from the 2012 wage.

Cahaya said the DPK's decision was not legitimate because it was not a deliberation but rather a process of coercion by the workers. "How could they talk if thousands of workers surrounded the deliberation site. A deliberation needs a neutral environment," Cahaya said.

Cahaya added that it would be difficult for the employers to meet with the minimum wage as their maximum capability was Rp 1.7 million for the coming year. This is why he called on Apindo members not to comply with it.

Johannes concurred. "Wage components are calculated over two to five years and we have experienced two jumps already. The government must also listen to employers and not just to workers," he said. Johannes said he would file a summons to the State Administrative Court if the decision was endorsed by the Riau Islands governor.

The meeting in which the DPK decided on the minimum wage, held on Wednesday from 9 a.m. to 3 p.m., was only attended by representatives from the local administration and workers unions.

It was a continuation of Monday's meeting, which had ended in deadlock as neither Apindo or workers unions could agree on the amount. Apindo did not attend the following meeting on Wednesday.

Thousands of workers went on strike across the nation on Wednesday to demand an increase in wages and in opposition to the national social security programs, which they say are against the Amended 1945 Constitution.

The Indonesian Prosperity Trade Union (SBSI) secretary Surya Dharma Sitompul said the DPK's decision on minimum wage was inline with employees aspirations.

"We ask the mayor and governor to endorse the decision. It has been a long time since workers were heard. There did not used to be a workers movement in Batam," he said.

In West Java, the 2013 minimum wage in cities and regencies has been raised by 25.6 percent on average compared to the previous year. The increases range from between Rp 50,000 and Rp 827,800.

Unlike in Jakarta – where the minimum wage is set at the provincial level – in West Java it is set at the city and regency level. "I did not make any changes to the figures proposed by the 26 regents and mayors. All I did was endorse it," West Java Governor Ahmad Heryawan said in Bandung on Wednesday.

He said there were 17 regencies or cities whose minimum wage was higher or equal to the their respective basic cost of living (KHL). "For eastern part of West Java [Ciamis, Tasikmalaya and Banjar], the minimum wages remain under the KHL," Heryawan said.

West Java Manpoweer and Transmigration Agency head Hening Widiatmoko said the differences were due to the result of KHL surveys and meetings of the DPK in the respective regions.

Bekasi municipality was recorded to have the highest minimum wage of Rp 2.1 million per month while Majalengka regency was recorded with the lowest wage of Rp 850,000.

In anticipation of employers' incapability to pay the minimum wage, Heryawan welcomed them to file objections before 10 days prior to it's implementation on Jan. 1, 2013.

Government supports move to challenge Jakarta's minimum wage

Jakarta Post - November 23, 2012

Bagus BT Saragih, Jakarta – Industry Minister MS Hidayat said on Friday that he supported a plan of top businesspeople to challenge Jakarta Governor Joko "Jokowi" Widodo's decision to set Jakarta's 2013 provincial minimum wage at Rp 2.2 million (US$228).

"I have been informed by Apindo [Indonesian Employers Association] that it will file a lawsuit with the PTUN [state administrative court]. As long as it utilizes legal avenues, I support it," Hidayat told reporters at Halim Perdanakusuma Air Force base in East Jakarta.

Hidayat was among President Susilo Bambang Yudhoyono's entourage that just arrived from Islamabad, Pakistan, to attend the D-8 Summit.

"Businesspeople have said that their aspiration was not accommodated by the decision on the minimum wage. Sofjan phoned me about the matter," he said, referring to Apindo chairman Sofjan Wanandi. "Apindo is afraid that its members will have to lay off workers," he added.

Jokowi announced Tuesday that the 2013 provincial minimum wage had been set at Rp 2.2 million, a 44 percent increase from this year's Rp 1.5 million.

Although the increase was slightly lower than the recommendation of Rp 2,216,243 by the City Remuneration Board, it has sparked controversy. Businesspeople have said that they considered the minimum wage too high and that it would significantly affect their cash flow.

Hidayat said that he had made a deal with Apindo that small and medium enterprises (SMEs) and labor-intensive industries would be exempt from paying the new minimum wage. "I hope the deal can be implemented as soon as possible," the minister said.

Jokowi, who was also at the Air Force base, said he would not object to Apindo's plan to challenge the new minimum wage policy via court. "It is their right to do so," he said. (lfr)

Workers continue their rallies as government urges them to return to work

Jakarta Post - November 23, 2012

Ridwan Max Sijabat, Jakarta – Workers continued staging rallies on Thursday with many thousands taking to the streets demanding the government and employers follow the newest ministerial regulation on outsourcing.

They also demanded that the government end the cheap-labor policy and exempt workers from paying contributions to the national healthcare program.

For a second day, workers from industrial areas in Jakarta, Bekasi, Tangerang and Bogor marched from the Hotel Indonesia traffic circle to the Presidential Palace. Others staged protests outside the House of Representatives compound in Senayan and the Manpower and Transmigration Ministry, causing major traffic congestion in the city.

The demonstrations, which also involved hundreds of students from several universities in the city, were jointly organized by the Confederation of All-Indonesian Workers Union (KSPSI), the Confederation of Indonesian Workers Union (KSPI), the Confederation of Indonesian Prosperous Labor Union (KSBSI) and the Indonesian Workers Organization (OPSI).

"The time has come for us to fight for justice and not to wait on charity from employers," KSPI chairman Said Igbal said at a rally outside the Presidential Palace on Thursday.

On Wednesday, thousands of workers organized by the National Workers Union (SPN) besieged the Presidential Palace, demanding the President issue a government regulation in lieu of law (perpu) to replace Law No. 40/2004 on the national social security system which requires that workers pay contributions to the five mandatory social security programs.

They said that according to the Constitutional Court's verdict No. 82/2012, workers have the right to register themselves with the social security providers to participate in the social security programs at the expense of their employers.

Said said workers, mostly underpaid, should not need to pay premiums to the national healthcare system because it was part of their constitutional right and therefore should be fully covered by employers under the current occupational social security program, Jamsostek.

Separately, KSBSI chairman Mudhofir said at a rally outside the Manpower and Transmigration Ministry that it was the right time for the government to end the cheap-labor policy because the country's economy had grown by around 6 percent annually, following the economic downturn which hit Asian countries in 1997.

"Employers have never voluntarily revised the remuneration system in their businesses and the government has never revised the policy without pressure from workers," he said, adding that workers would continue pressing the government and employers to accept the list of 80 wage components to provide decent salaries to workers.

The government has recently issued a new ministerial decree that sets 60 wage components compared to the former 46 components, leading to a significant increase of between 20 percent and 40 percent in provincial minimum wages for 2013.

Meanwhile, Manpower and Transmigration Minister Muhaimin Iskandar called on workers to go back to their workplaces, saying industrial strikes were not the only way to fight for their aspirations.

"With the two-day strikes, both workers and employers lose millions of working hours, industrial processes are halted and production is suspended. It is better for labor unions to channel their aspirations through the National Social Security Committee (DJSN) to be brought to the plenary session with the relevant stakeholders preparing draft regulations to implement the social security programs," he said.

The workers also demanded the government instruct all labor supervisors in regions to closely monitor the implementation of newly issued Ministerial Decree No. 19/2012 which allows employers to outsource only five job types – security, catering, driving, cleaning and support services in mining sites – to other companies. Several manpower supplying companies have threatened to bring the new decree to the Supreme Court for judicial review.

Layoffs could be massive following wage hike: Employers

Jakarta Post - November 22, 2012

Novia D. Rulistia, Jakarta – The 2013 minimum wage set for workers in Jakarta is considered too high by employers, who fear that it may backfire as businesses consider a recruitment freeze.

An entrepreneur in the food and beverage sector, Adhi Lukman, said on Wednesday that the Rp 2.2 million (US$228) minimum wage for a single worker had persuaded him and his fellow businessmen to find a more affordable way to compensate for the high labor costs.

"The alternative we have in mind is to invest more in machinery to replace human workers. That way, employment opportunities will be limited, thus creating a new social problem," said Adhi, chairman of the Indonesian Food and Beverage Association (Gappmi).

He said that in his industry, the significant wage hike would lead to a 4 to 5 percent increase in products' basic prices. "That increase means higher selling prices. And every increase will have a significant impact on business in this sector."

Jakarta Governor Joko "Jokowi" Widodo made official on Tuesday the decision to raise the minimum wage from the current Rp 1.5 million. The new minimum wage will come into effect in January.

The increase of nearly 44 percent was slightly lower than the recommended Rp 2,216,243 issued by the Jakarta Remuneration Board last week. The main reference point behind the decision was the basic cost of living for a single worker, which the board set at Rp 1,978,789.

The board is chaired by officials from the city administration and representatives from labor unions and employers' associations. The tripartite forum makes recommendations on the minimum wage to the governor on an annual basis. The Jakarta governor has the final say on the city's minimum wage.

Eddy Kuntadi, chairman of the Jakarta branch of the Indonesian Chambers of Commerce and Industry (Kadin), said that although they would comply with the decision, there were consequences they may have to face in the implementation.

"The new wage will definitely impact all businesses – large and small. Some may have to conduct layoffs or even close their businesses," he said.

Although employers were beholden to pay severance to any staff laid-off, Eddy said it needed to be calculated accurately by employers. "Layoffs are probably necessary to cut total costs, but maybe it is better than having to suffer prolonged losses."

Based on the existing Labor Law, business owners who fail to comply with the minimum wage policy could face a fine of Rp 400 million and up to four years in prison.

"Small and medium enterprises [SMEs] will be the ones who suffer most in this wage hike. But they can request a postponement from the governor if they feel it will burden them too much," Eddy said.

The government plans to be lenient with SMEs by not insisting that they pay their workers the new minimum wage immediately. Manpower and Transmigration Minister Muhaimin Iskandar said recently that SMEs could propose a postponement if they felt the new minimum wage was too burdensome.

There are around 18,000 SMEs listed as members of Kadin Jakarta. The city's Manpower and Transmigration Agency head, Deded Sukendar, said the administration would raise awareness about the new wage among employers and workers in the city.

West Java Increases minimum wage levels by 25 percent

Jakarta Globe - November 22, 2012

SP/Adi Marsiela, Bandung – In the wake of Jakarta's 44 percent minimum wage hike, West Java has approved an increase in the minimum wage levels of its 26 districts and cities by an average of 25 percent.

"[Hopefully] there'll be no lawsuit," West Java Governor Ahmad Heryawan said on Wednesday night after signing the decision.

Seventeen of the 26 districts and cities, including Bogor, Bekasi and Bandung, will next year get a minimum wage higher than the decent living cost (KHL). Other regions, including Ciamis, Tasikmalaya and Banjar, will still have minimum wage levels lower than the KHL.

Bekasi will have the highest wage among the 26 with Rp 2.1 million ($217) per month – just Rp 100,000 lower than Jakarta's Rp 2.2 million – while the lowest one is in Majalangka district at Rp 850,000. The three areas with the highest increases are Bogor city, Bogor district and Karawang, from below Rp 1.3 million to an average of Rp 2 million.

Heryawan said the minimum wage levels were based on the recommendation of the district heads and mayors. "They're all exactly the same as the recommendation, none less," he said.

Apindo's West Java chapter is maintining its opposition to the new figures and has refused to sign the decision of West Java wage council. Deddy Wijaya, the head of Apindo's West Java chapter, said the process did not follow the proper mechanism.

"It's strange that the amount was changed after the workers rallied," Deddy said. "This is a violation of government regulations. We are strongly objecting to it."

Meanwhile, the chairman of the Confederation of All-Indonesia Workers Union, Roy Jinto, said he was disappointed that many of the districts still set the minimum wage lower than the KHL. "But we will still accept it as it was recommended by the district heads and mayors," Roy said.

Heryawan said employers that cannot afford the new wage levels can request a delay in implementation.

Last year, Bekasi raised its minimum wage from Rp 1.29 million to Rp 1.49 million, sparking a lawsuit from the Indonesian Employers Association (Apindo) and days of massive and chaotic protests.

Thousands of workers blocked the Jakarta-Cikampek toll road on Jan. 27, creating severe congestion stretching some 20 kilometers and forcing a number of stores in the area to close. Apindo eventually bowed to the protests.

Government issues new rule on outsourcing

Jakarta Post - November 22, 2012

The government has issued a much-anticipated regulation that limits outsourcing to five types of jobs: security, cleaning services, drivers, catering and support services for mining companies.

The regulation, Manpower and Transmigration Ministerial Decree No. 19/2011 on labor standards in outsourcing, was announced on Nov. 15.

Muhaimin Iskandar, the relevant minister, signed the decree on Thursday after receiving approval from the National Tripartite Commission representing the government, employers and workers.

"The new ministerial decree has been issued to regulate on outsourcing in detail as it is allowed by the 2003 Labor Law, and to correct the practice of unlawful outsourcing, which has caused job insecurity among many workers in the formal sector," Muhaimin said.

Workers on strike, reject national healthcare program

Jakarta Post - November 22, 2012

Ridwan Max Sijabat and Ainur Rohmah, Jakarta/Semarang – Thousands of workers went on strike in cities across the country in opposition to national social security programs that they say are against the Amended 1945 Constitution.

In Jakarta, demonstrators called on President Susilo Bambang Yudhoyono to issue a regulation in lieu of law (perpu) to replace Law No. 40/2004 on national social security system in line with the recent decision of the Constitutional Court.

The Constitutional Court stated that the social security programs were part of workers' rights and therefore, the expense of their employers. "We reject the national social security programs if workers are required to pay their own contributions," said Asep Saifullah, a worker from Tangerang.

Asep said workers do not need to pay contributions to receive social security protection and their registration with the Jamsostek social security program should be at the expense of their employers. He referred to article 28 of the 1945 Constitution, which stipulates that the people of Indonesia have the right to receive social security protection to improve their human dignity.

The draft government regulation that has been prepared to implement the national healthcare program stipulates that workers pay 2 percent of their gross monthly wage and their employers pay 3 percent of their monthly premium to the program.

Deputy Chairman of the National Workers Union (SPN) Djoko Heryono concurred and said the President should issue a perpu to replace the 2004 national social security system law, which required all participants to pay their contributions to the five mandatory programs.

"With the Constitutional Court's recent verdict, Law No 40/2004 that requires workers to pay contributions is no longer binding and a perpu should be issued immediately to comply with the Court's decision," he said.

The Constitutional Court reviewed Chapter 15 of the 2004 National Social Security System Law and on Oct. 8, 2012, decided that employers were obliged to register themselves and their workers to the social insurance providers. In addition, they also decided that workers had a right to the five mandatory social security programs at the expense of their employers.

In Semarang, Central Java, hundreds of workers flocked to the provincial legislative council, voicing their protest against the laws on social security providers (BPJS) and the national social security system (SJSN).

Protester coordinator Nanang Setyono said that the law did not regulate the free social security protection – as promised by the House of Representatives – or lifetime health insurance. He said that only a limited number of diseases were actually covered.

"We feel as if we have been fooled because the law is not what was promised by the House. It does not provide us with free health insurance," he said.

A similar demand was also expressed by workers from Sidoarjo, Mojokerto, Gresik, Pasuruan and Surabaya, East Java. "We urge the government to issue a regulation that guarantees lifetime free health insurance and pension funds for workers," said strike coordinator, Kholid Bahasuan.

Separately, Bambang Purwoko, a social security expert at the Pancasila University, said workers should understand that the national social security system was a blend of social security and social insurance. "For social security, the mandatory programs are covered by employers and workers do not need to pay contributions. However, in terms of social insurance, workers have to pay their premium to get the maximum benefits," he said.

Presiding director of state-owned PT Askes I Gede Subawa appreciated the Constitutional Court's decision in the sense that employers have to cover the transport and administrative cost accrued by workers when they register with the social security providers for the five mandatory programs.

With Jakarta's minimum wage to rise 44%, bosses warn of job cuts

Jakarta Globe - November 21, 2012

Lenny Tristia Tambun, SP/Fuska Sani & SP/Mikael Niman – A 44 percent rise in the Jakarta minimum wage has prompted a major employer organization to warn of mass layoffs as companies grapple with the increased production costs, and led analysts to suggest that a major increase in productivity was needed to justify the hike.

Employer groups have also expressed fears that the new Jakarta minimum wage of Rp 2.2 million ($228) a month, approved by Governor Joko Widodo on Tuesday, would prompt similar pushes for wage increases across the country.

Business said that Joko's decision was driven by populism, and was an effort to show that he could meet the high public expectations before he took office last month.

Joko urged workers and employers to accept the Rp 2.2 million figure, and expressed hope that his decision would end a festering dispute between the two camps.

"If we talk about whether we are satisfied or not, then it will be an endless discussion, and we will never be able to decide on the figure," he added. "I hope all parties can accept it."

The Indonesian Employers Association (Apindo) voiced its opposition, saying that the increase was too great.

Under previous regulations, Jakarta's workers earned a minimum Rp 1.5 million a month. The new minimum wage is Rp 220,000 more than the amount sought by Apindo, but Rp 590,000 less than the amount sought by labor unions.

"We can't accept it as it is too high," said Hasanudin Rahman, the head of Apindo's industrial relations division. "Remember, Jakarta's wage [level] is the barometer for other regions. What if all other regions demand the same pay?"

Less than two hours after Joko's announcement, Yogyakarta Governor Sultan Hamengkubuwono X said the minimum monthly wage for his province for 2013 should rise above the cost of living.

"The minimum monthly wage in the entire territory of Yogyakarta should be higher," the sultan said. "The decision on the minimum monthly wage level should be, at the latest, made today."

Previously, the Bekasi Wage Council raised the West Java city's minimum wage to Rp 2.1 million per month, a 50 percent increase from last year's Rp 1.4 million. Apindo chairman Sofjan Wanandi said the wage increase would force the employers to lay off staff to cut costs.

"The government forgets that by making a populist decision, employers will suffer losses," he said. "The consequence? The employers will massively cut back employment."

Jakarta's manufacturing industry employs more than 3 million workers in factories, making shoes, clothes and other household goods, Sofjan said. The textile and garment industry alone employs 2.5 million people while shoe manufacturers have hired 500,000 workers, he said.

"Take pity on [small business owners], the shoe and garment industry [and] all labor-intensive [industries]," he said. "They cannot afford this wage hike. Salaries are already 30 percent of costs. With the electricity and gas price hikes, how can we compete next year?"

Kodrat Wibowo, an economist from Padjajaran University in Bandung, said workers' demands for higher wages should match an increase in productivity, given Indonesian productivity lags behind that in neighboring countries.

International Labor Organization data from 2010 shows that Indonesia's labor productivity – measured in annual gross domestic product per working person – was $10,587, compared to $25,058 in Malaysia and $12,593 in China.

"Indonesian labor productivity is lower than others in the region. I don't think that is because of a lack of education or lack of training. That issue has been here for decades," Kodrat said, blaming the low productivity on "poor work ethics."

Enny Sri Hartati, director at the Institute for Development of Economics and Finance (Indef), proposed that the government boost infrastructure so that the costs of doing business could fall.

Economist Purbaya Yudhi Sadewa agreed that Jakarta's wage increase would be followed by other regions and that we will see massive layoffs across the nation to cut costs, or companies will not be able to compete and close their doors.

Rowdy workers in East Java, Batam impasse

Jakarta Post - November 21, 2012

Fadli and Nurni K. Sulaiman, Batam/N. Penajam Paser, E. Kalimantan – A demonstration to raise the minimum wage in Surabaya, East Java, turned rowdy on Tuesday, when thousands of workers from Gresik rallied in front of the governor's office on Jl. Pahlawan.

Some workers grew enraged on Tuesday after learning that East Java Governor Soekarwo declined to meet with their representatives from the Gresik Labor Union.

The representatives left the governor's office after they were met by Edy Purwinarto, the third assistant of the people's welfare division. As news of the perceived slight spread through the crowd, some started to push against the temporary barriers erected to block their access.

As police officers on hand to provide security formed a line, protesters pelted them with glass and plastic water bottles. Tensions lowered when Edy told the crowd that Soekarwo would meet with their representatives "soon", as reported by tribunnews.com.

The incident follows rallies on Monday, when thousands of workers from five East Java cities – Surabaya, Pasuruan, Gresik, Sidoarjo and Mojokerto – rallied at Negara Grahadi, which is the official residence of the East Java governor, and at the headquarters of the provincial administration, demanding that officials raise the monthly minimum wage from around Rp 1.5 million (US$155) to Rp 2.2 million.

Soekarwo had previously met to discuss wage hikes, which are set by individual administrations, with regents, mayors, the heads of local manpower agencies and representatives of both workers and the Indonesian Employers Association (Apindo).

The meeting, however, yielded no results. "We still have to consult on this issue with the manpower and transmigration minister [Muhaimin Iskandar]," Soekarwo said.

Separately, officials in Batam, Riau Islands, were still debating on increasing the local minimum wage for 2012. A meeting of the Batam Manpower Agency, the city remuneration council, Apindo and the Federation of Indonesian Metal Workers (FSPMI) on Monday ended in stalemate.

FSPMI has requested that the monthly minimum wage be increased from Rp 1.4 million to Rp 2.1 million, while Apindo said it would only agree to raise wages to Rp 1.79 million.

The meeting will resume on Wednesday. "If the meeting on Wednesday still ends in deadlock, let the mayor make the decision. The mayor can even ask the governor to set the next year's minimum wage if he fails to do so," Zarefriadi said.

Meanwhile, North Penajam Paser Regent Andi Harahap in East Kalimantan has decided to raise the local minimum wage from Rp 1.3 million to Rp 1.9 million, slightly under the Rp 2 million demanded by workers.

Jokowi sets Jakarta's 2013 minimum wage at Rp 2.2 million

Jakarta Post - November 21, 2012

Andreas D. Arditya and Novia D. Rulistia, Jakarta – Jakarta Governor Joko "Jokowi" Widodo announced on Tuesday that the 2013 provincial minimum wage had been set at Rp 2.2 million (US$228), a 44 percent increase from this year's Rp 1.5 million.

The increase was slightly lower than the recommendation of Rp 2,216,243 issued by the City Remuneration Board last week. "We rounded the number. I hope all parties can accept this decision. We cannot please all sides," Jokowi told reporters at City Hall.

The governor's decision made at the eleventh hour, as Tuesday was his deadline, has drawn criticism from wary businesspeople. A ministerial decree on minimum wages requires provincial governments to decide on the new level two months before the new policy takes effect – on Jan. 1 each year.

Earlier this month, the Jakarta Remuneration Board set the basic cost of living (KHL) at Rp 1,978,789. This amount was used as the main reference when deciding on the provincial minimum wage.

Indonesian Employers Association (Apindo) chairman Sofjan Wanandi said that although the new minimum wage would burden some businesses, employers would still comply with the new decision. "There is nothing else we can do, we have been struggling at our best," Sofjan said.

He said that while the new wage level might not hurt big businesses, it would be the small and medium enterprises (SMEs) that would suffer the most.

"The turnover of the SMEs is usually less than Rp 20 million per month, how can they survive if they have to spend Rp 2.2 million per employee?" Sofjan said. "For some, redundancies may be inevitable, others may also close their businesses," he said.

The government plans to be lenient with SMEs by not insisting outright that they pay their workers the new minimum wage. Manpower and Transmigration Minister Muhaimin Iskandar recently said that SMEs can propose a postponement if they feel the new minimum wage is too much of a burden.

Business owners are allowed to request a waiver, which is only granted after audits proving that the business is undergoing financial difficulties. City Manpower and Transmigration Agency head Deded Sukendar said that there had been few companies requesting waivers.

"Tomorrow, we will speak with some associations. The raise is significant, 44 percent, certain sectors will feel the impact of it," said Eddy Kuntadi, chairman of the Indonesia Chamber of Commerce and Industry (Kadin).

Failure to pay the minimum wage is punishable by law. Business owners may face up to Rp 400 million in fines and one to four years in prison for violating the existing regulation.

In 2011, the minimum wage was set at Rp 1.29 million or only 92 percent of the KHL of Rp 1.4 million. In 2010, the wage of Rp 1.11 million was 84.48 percent of the KHL at that time. Not until 2012 was the minimum wage higher than the basic cost of living (102 percent).

New labor decree off course

Jakarta Post - November 19, 2012

Ridwan Max Sijabat, Jakarta – Ignoring complaints from the business sector, the Manpower and Transmigration Ministry has issued a controversial decree that will limit the use of contract workers through the so-called outsourcing scheme.

Manpower and Transmigration Minister Muhaimin Iskandar said over the weekend that he had already signed on Thursday a revised decree on labor outsourcing and that it had been sent to the Law and Human Rights Ministry to be passed before its immediate enactment.

Under the decree, companies will be given six months to alter the status of their contract workers into permanent staff.

According to the planned decree, companies will not be permitted to outsource their core business, leaving outsourcing limited to five types of job: cleaning services, security, driving, support services on mining sites and catering.

"Businesses are required to comply with the Labor Law and respect workers' normative rights on remuneration, allowances, annual leave and bonuses," said Muhaimin.

"They are allowed only to subcontract their temporary jobs, such as building repairs, painting and card printing, which can be finished within several months," he said.

Due to the inflexibility of the Labor Law, labor-intensive companies, such as footwear and textile firms, prefer to outsource their core work to third parties on a contract basis in order to avoid making them permanent employees.

Companies, meanwhile, argue that they employ contract workers to do core jobs because, under the existing Labor Law, it is costly and difficult to fire under-performing permanent staff.

According to a recent labor survey, conducted jointly by the Akatiga social research center, the Indonesian National Workers Union (SPNI) and the Friedrich Ebert Stiftung Foundation, around 20 million people are employed under the outsourcing scheme. The figure is higher than the 14 million workers registered by business lobby group, the Indonesian Employers Association (Apindo).

Most of the workers are concentrated around industrial estates in Banten, Batam, East Java, Riau Islands and West Java.

The new decree will also prohibit companies from employing workers outsourced from third-party firms to undertake core jobs.

In response to the decree, chairman of the Confederation of Indonesian Workers Union (KSPI) Said Iqbal, and chairman of the Confederation of Indonesian Prosperous Labor Union (KSBSI) Mudhofir said the decree was a starting point toward improving the country's poor labor conditions.

"The decree is not a victory for workers, but it is a major step toward repairing poor labor standards and conditions. Now, workers will be able to enjoy job security and their normative rights," said Mudhofir.

The revision to the decree was drafted after the government bowed to pressure from unions following major rallies – some ending in violence – during the past couple of months in several industrial cities.

On several occasions, union organizers resorted to ransacking production facilities at firms that were not willing to allow their workers to join the rallies. Due to the violence, a number of labor-intensive companies threatened to relocate their factories overseas.

Aside from the outsourcing issue, the union members also demanded an increase of more than 35 percent to the minimum wage. All regencies and municipalities are currently drafting new minimum wages, which will come into force next year.

Apindo chairman Sofjan Wanandi said many firms that supplied manpower would challenge the decree at the Jakarta Administrative Court or the Supreme Court.

He also expressed his regret at Muhaimin's decision to ignore employers' aspirations during the National Tripartite Committee plenary session on Wednesday, when Apindo opposed the government's plan to limit outsourcing jobs.

Businesses have repeatedly raised their concerns that the decree would increase the country's unemployment and limit opportunities for people to work in the formal sector.

According to the Central Statistics Agency (BPS), around 41.4 million people, or 35 percent of the 118-million-strong workforce, are categorized as open or half-unemployed workers.

Concerns over the benefits of higher minimum wage

Jakarta Globe - November 18, 2012

Lenny Tristia Tambun & Muhamad Al Azhari – The Jakarta government is set to increase the monthly minimum wage by 44 percent in the nation's capital. But for both workers and employers, concerns abound on the impact of each other's livelihood.

Tari, 25, who works in Kota, Central Jakarta, said she was concerned that a higher minimum wage would prompt her employer to fire some workers, including herself as she had only been employed for a year.

"Yes, the prospect of layoffs worry me. If I lose my job, my life will become worse than it is today," she said, adding that she works in administration. But she said that the proposed pay increase would help to support her 1-year-old baby.

"It is very costly to raise a toddler. The cost of formula milk and diapers accounts for almost 40 percent of my current salary," said Tari, who earns Rp 1.9 million ($197) a month. "My husband and I must compromise other spending in order to meet our basic needs. The increase in minimum wage will allow us to breathe."

On Wednesday, the Jakarta Wage Council chose to raise the monthly minimum wage to Rp 2.22 million, which is higher than business leaders' proposal of Rp 1.98 million but less than workers' demand of Rp 2.79 million. Higher wages are typically meant to be in line with higher consumer prices, which have been rising on average around 5 percent in the past three years across the country. Inflation last month hit 4.61 percent.

Jakarta last raised the minimum wage a year ago to Rp 1.53 million from Rp 1.29 million.

A wage increase that is double the rate of last year's could affect cost structures for many companies, particularly on micro-, small- and medium- sized businesses (UMKM). In order to maintain operating costs, some companies may be forced to fire workers and pass on the costs to consumers by raising prices on goods and services.

Yusuf Hardy, the deputy chairman of the Food and Beverage Businessmen Association (Gapmi), said such wage increases would also mean higher product prices. "Go ahead, increase it as much as they want," he said. "How will businesses usually respond? By raising the price. The price of bread will never be the same."

Some business leaders called a minimum wage increase of more than 40 percent unfair. "Usually the wage increase is adjusted by the inflation rate plus around 2 or 3 percent," said Ernovian Ismy, secretary general of the Indonesian Textile Association (API). "Now, the proposed increase is way too high. What I am worried about is whether some small textile companies can afford it or not."

He added that the textile industry would also face stiff competition from imported goods. "So when companies are overburdened, what typically happens? They may start reducing work shifts, send workers home or just import the goods if the cost of production is too expensive," Ernovian added.

The high increase in wages could also make it challenging for companies to meet the sudden spike in labor costs, particularly in the manufacturing industries, which employ hundreds of thousands of workers to make shoes, clothes and other household goods.

"The government forgets that by taking a populist decision, employers will suffer losses," Sofjan Wanandi, chairman of the Indonesian Employers' Association (Apindo), said on Thursday. "As a consequence, employers will have to lay off workers."

Textile and garment manufacturers employ around 2.5 million people while the shoemaking business employs around 500,000 workers, he said.

"Take pity on the UMKM sector, shoes and garment businesses, all labor- intensive [industries]," he said. "They cannot afford this wage hike. Salaries are already 30 percent of their cost, not to mention the electricity and gas-price hike. How can we compete next year?"

For workers, the wage increase is a welcome relief for those living in and around the nation's capital, which has the highest living expenses in the country. Minimum wages in other parts of the country would be a small fraction of Jakarta's.

Tari hopes that she will be able to save some of her income for emergency spending or leisure trips. "I once intended to buy education and health insurance for my baby but couldn't afford it with my salary. Now hopefully I will be able to get my baby insured," she said.

Jakarta Governor Joko Widodo said on Thursday that the decision to increase the monthly minimum wage to Rp 2.2 million was not yet final. But he said he hoped to find a win-win solution for both workers and employers. Still, some workers are skeptical that once the minimum wage increase pushes through, employers might not follow suit.

"It's very kind of the government to raise the minimum wage by 44 percent," said Ester, who works in sales promotion in the Gunung Sahari business area in Central Jakarta.

"And it would be nice if the company agrees to adjust the minimum wage according to the new standard. But in fact, the company used to pay less [than the required standard], only between 5 percent and 15 percent. That's the best it can do."

The 34-year-old, who earns Rp 2.2 million per month, said the new minimum wage would normally provide a pretext for the company to reduce the number of workers. "[The company] would argue layoffs are in place because it cannot afford the new wage, but the truth is that after the layoffs, the workers are paid less than the minimum wage."

Environment & natural disasters

Ministry pushes to continue deforestation moratorium, house pushes back

Jakarta Globe - November 23, 2012

Camelia Pasandaran – Indonesian lawmakers threatened on Friday to freeze the budget for reforestation projects if President Susilo Bambang Yudhoyono continues the nation's deforestation moratorium until 2014.

Yudhoyono issued a two-year moratorium on new forestry permits for peat and primary forests after the Norwegian government promised $1 billion in conservation assistance. To receive the funds Indonesia has to provide verifiable proof that it has reduced deforestation rates in a nation where more than a million hectares of forests are cut down annually.

The bulk of the money won't be paid until Indonesia can prove reforestation efforts have made an impact. But the promise of funds was not enough for United Development Party (PPP) lawmaker Romahurmuzy.

The head of the House of Representatives forestry and agriculture commission said Indonesia was losing too much money setting up reforestation projects when it could be issuing more permits for palm oil plantations.

"It's not worth it," he said. "Our total budget is Rp 1,600 trillion. The budget for the Forest Ministry is Rp 6 trillion. The reward is not equal to the economic potential being lost in the forest sector."

The government receives some 300 applications for new palm oil plantations a year, Romahurmuzy said. It approves between 70 and 80 a year. One 10,000 hectare plantation can provide work for entire villages in rural Indonesia, Romahurmuzy said.

"If Norwegian is not serious about the compensation, the government should seriously consider not continuing it," he said.

The Ministry of Forests will recommend the moratorium stays in effect until the 2014 presidential election, ministry spokesman Sumarto said. The ministry still has 40 million hectares of cleared land to replant, he added.

"The Forest Ministry plans to continue the moratorium," Sumarto said. "[Minister] Zulkifli [Hasan] will soon report the plan to the president."

The government has a responsibility to restore the nation's forests and should not focus on the compensation funds, Sumarto said. "We have the responsibility to maintain our economy by changing the consumptive pattern in managing the forest," he said.

It will take at least 25 years to restore the nation's forestland, Sumarto said. The reforestation programs also provide jobs for some of the four million people who live near deforested areas, he added.

"So we try to extend the moratorium at least until 2014, as long as this government term," he said.

Health & education

Jakarta to mandate 'breast-feeding corners' under proposed bylaw

Jakarta Globe - November 23, 2012

Shopping malls, office buildings and other public places in Jakarta will have to provide new mothers with a "breast-feeding corner" under a proposed bylaw aimed at reversing Indonesia's low breast-feeding rates.

"The aim is to allow every infant to enjoy six months of exclusive breast milk and, thus, reduce the infant mortality rate," Jakarta Health Agency head Dien Emmawati told the Jakarta administration's news site beritajakarta.com.

Breast-feeding rates are woefully low in Indonesia, where a combination of folklore and heavy marketing from infant formula makers contributes to one of the lowest breast-feeding rates in the world.

Indonesia ranked 30 out of 33 countries listed in the 2010 World Breast- Feeding Trend Initiatives Report. Both Afghanistan and Malawi scored higher. The nation's low breast-feeding rates have been linked to childhood malnutrition and stunting in children younger than five.

Dien said she hopes the "breast-feeding corners" will encourage mothers to breast-feed their children exclusively for six months and until the age of two. Breast-feeding centers are currently available at some Jakarta government offices and hospitals.

Indonesia suffers setback in fight against AIDS

Jakarta Post - November 22, 2012

Elly Burhaini Faizal, Jakarta – A new report published by the United Nations (UN) shows that Indonesia has suffered a setback in its campaign against HIV/AIDS.

In the report, released in conjunction with the 2012 World AIDS Day, the Joint UN Program on HIV/AIDS (UNAIDS) records that the rate of new HIV infections in Indonesia, along with several other countries such as Bangladesh, Sri Lanka and the Philippines, increased by more than 25 percent between 2001 and 2011.

The report also said that in Indonesia HIV-prevention programs for males who have sex with males (MSM) stood at less than 25 percent, or very low.

The coverage of HIV-prevention programs for commercial sex workers in Indonesia and two other countries, Bangladesh and Pakistan, also reached less than 25 percent.

The prevalence of the HIV infection among people who use drugs by injection in Indonesia has reached more than 35 percent.

Responding to the report, Health Minister Nafsiah Mboi said on Wednesday that it was "so embarrassing". "Millions of dollars are spent annually on HIV/AIDS programs to curb the spread of the disease in this country. Yet, there is such a low coverage of HIV-prevention programs. I don't know what mistakes I have made. It [the report] was shocking to me," she told reporters on Wednesday.

"The World AIDS Day Report 2012" launched by UNAIDS on Tuesday reported some significant progress made in recent years. The report showed that 25 low- and middle-income countries, half of which are in Africa have achieved more than 50 percent reduction in the rate of new HIV infections. "I don't know what else we can do to try to change the situation," she said.

Data from the National AIDS Commission (KPA) shows that the prevalence of consistent condom use is still low although it has been associated with lower prevalence of HIV infections and other sexually-transmitted diseases. "[The consistent use of condoms] among sexual workers reaches only 40 percent," KPA chairman Kemal Siregar said.

The 2012 UNAIDS report deals another blow to Nafsiah who assumed her post only five months ago. Soon after she filled the new position, which was left vacant following the death of then health minister Endang Rahayu Sedyaningsih, Nafsiah enganged in a fierce debate with lawmakers and religious groups accusing her of hatching a plan to distribute free condoms to teenagers.

UNAIDS country coordinator Cho Kah Sin said that Indonesia should not be preoccupied with the numbers presented in the report. The report, he said, outlined statistics which outlined the situation during the 10-year period from 2001 to 2011.

"There is a group of countries in the Asia Pacific region where, by comparing the statistics from baseline data in 2001 to 2011, we see a rise in new HIV infections," he told The Jakarta Post.

The rise in infections in several countries, including Indonesia, comes from the fact that the rapid increase of infection in the country starts later compared to other countries. Cho added that the situation was also caused by the low coverage of HIV-prevention programs despite good intensions.

UNAIDS predicts that there will be an increase of about 76,000 new HIV infections in Indonesia every year. "I think this is much more important to realize," Cho said.

288 high school students join disciplinary boot camp in Bogor

Jakarta Post - November 20, 2012

Bogor – In an attempt to reduce school clashes and develop character building among senior high students, the Jakarta Police are hosting a six- day disciplinary boot camp for 288 students in Bogor, West Java.

The camp began on Tuesday at the State Police School in Lido area in Bogor. According to police, who organized the camp with the Education Ministry, 226 and 223 students will join the second and the third training sessions, respectively.

The Jakarta Police's director for community development, Sr. Comr. Yosi Hariyoso, said that the camps aim is to teach the students leadership skills and discipline. "This program is designed for all students, not only those involved in violent incidents," Yosi said.

Members of the Paskibra (flag-raising team) and Osis (student organization) also participated in the camp. "We hope that the camp can establish a golden generation for the country's future," Yosi added. (fzm)

Graft & corruption

Loopholes in the law help graft convicts to keep their jobs

Jakarta Post - November 21, 2012

Rabby Pramudatama, Jakarta – Loopholes in existing laws have helped state officials in several regions to maintain their strategic position despite their status as graft convicts, ministers have said.

According to Home Minister Gamawan Fauzi, this year alone as many as 474 regional administration officials have been implicated in legal cases mostly graft scandals. Among the 474 officials, Gamawan said, 330 have been convicted, 49 are currently awaiting trial and 95 others have been named as suspects.

"I am still updating the data, I believe the number could increase up to 1,000 cases by the end of the week," Gamawan told reporters during a monthly discussion initiated by the Law and Human Rights Ministry on Tuesday.

Gamawan acknowledged that despite their status as convicts, defendants or suspects, many officials still retain their positions. The minister, however, refused to be held responsible for the phenomena.

"Actually, it is not my responsibility to appoint officials for structural positions in the regions. It's the responsibility of the head of the region," he said.

In addition, Law and Human Rights Minister Amir Syamsudin criticized the heads of regional administrations for keeping those with criminal records in their posts. Amir likened the regional heads to lawyers, who often seek loopholes in the laws.

For instance, he said, article 23 of the 1999 Law on public officials stipulates that civil servants can be discharged from their position if he or she broke their vow or were involved in criminal activity. He said that the phrase "can be" is enough room for people to interpret the law as not imperative, when in fact it is.

Among the many government officials with criminal records who still retain their jobs, the most notable in the spotlight recently are Azirwan, a former graft convict who had headed the Bintan Enterprises Agency in Riau Island province.

Another official is the governor of Bengkulu, Agusrin Maryono Najamudin, who keeps his position as governor under the Jakarta State Administrative Court (PTUN) order, despite being convicted in graft case.

Emerson Yuntho from the Indonesia Corruption Watch (ICW) said that there was no excuse for graft convicts to retain their position; they should have been sacked instead. "The ones who misinterpret the public official law have meant to cheat the true principal of the law," he said.

He said firstly, the government official who has been found guilty for corruption has clearly violated the vow uttered during their inauguration, which means that he or she should be discharged from their position.

Secondly, especially in the Azirwan case, it has been clearly stipulated in article 20 of the Law on public officials that the one appointed for a structural position in the regional administration should be a civil servant who has a history of good achievements, he added.

"I don't understand how we can say someone has good achievements if, for example, the last three months of their life was spent in jail," Emerson said.

KPK formally names suspects, fails to impress the public

Jakarta Post - November 21, 2012

Margareth S. Aritonang and Bagus BT Saragih, Jakarta – The Corruption Eradication Commission (KPK) on Tuesday formally named two former deputy Bank Indonesia (BI) governors as suspects in the 2008 Bank Century bailout scandal.

The KPK announced the names of the suspects, Siti Chalimah Fadjrijah and Budi Mulia, during a hearing with the House of Representatives' (DPR) team specifically setup to monitor the Rp 6.76 trillion bailout.

"Our investigation has concluded that BI former deputy governors SCF and BM are guilty of having roles in the installment of the short-term liquidity support [FPJP] for Bank Century," KPK chief Abraham Samad said, referring to Siti Fadjrijah and Budi Mulia by their initials.

According to Abraham, Siti and Budi are also guilty of declaring that Bank Century failed which may have caused systemic impacts.

The long-awaited announcement somewhat disappointed the public and lawmakers, as nothing new was uncovered by the KPK investigations. Many lawmakers wanted to see Vice President Boediono, who was then BI governor, also placed on the KPK list.

"The mentioning of the two names is hardly an achievement because those names had already been mentioned during a House plenary meeting in October in 2010. Why don't you include Boediono? Wasn't he, as a leader of the BI, also responsible?" said Akbar Faisal, a People's Conscience Party (Hanura) lawmaker.

Sidarto Danusubroto from the Indonesian Democratic Party of Struggle (PDI- P) emphasized that "BI deputy governors must have executed their policies based on the governor's consent".

Citing a recommendation letter by a House special committee on the bailout in 2009, lawmaker Bambang Soesatyo said that Boediono in his capacity as BI governor, as well as other officials such as former senior deputy governor Miranda Goeltom, were also indicated to have played roles in the irregularities surrounding the installment of the FPJP.

"I think it's the job of law enforcers to prove such indication. However, they can't process Boediono due to his rights as vice president. Therefore, we hope that the KPK will forward further findings on the matter so that the House can pass them on to the Constitutional Court for legal action," the Golkar politician said.

After explaining its lack of authority to investigate Boediono, Abraham of the KPK emphasized that "the KPK cannot proceed the request because the authority belongs to the Constitutional Court".

However, Samad's statement was rebuffed by the Constitutional Court chief justice Mahfud MD, who said that the KPK has the authority to summon Vice President Boediono.

"The Constitutional Court doesn't have authority to investigate a criminal case implicating president or vice president. It should be carried out by the KPK, the Attorney General's Office [AGO] or the National Police," he said in a separate interview.

"Whether the man is Boediono or anyone else, the main thing is that the authority of the KPK is not affected by the Constitutional Court's authority," he added. Mahfud also highlighted the KPK's performance in the aftermath of the KPK-police rift in October.

"I saw that in the last three weeks, the KPK's performance has slowed down, they have not made any significant progress, such as in the Hambalang sports complex fraud case [...] The KPK has to pay people, by working hard to eradicate corruption," he said.

Separately, Vice Presidential spokesperson Yopie Hidayat said that Boediono supported the KPK's investigation into the Bank Century bailout. He said that Boediono had approved the controversial bailout in 2008 to maintain the country's financial and economic stability.

"If Bank Century was not salvaged, it could have resulted in a systematic impact upon Indonesia's financial system," he said. (yps)

[Rabby Pradmudata contributed to reporting.]

KPK names two more suspects in Century scandal

Jakarta Globe - November 20, 2012

Markus Junianto Sihaloho – Indonesia's antigraft body announced on Tuesday two new suspects in the Bank Century bailout scandal.

"Two Bank Indonesia officials have been found out to have participated in acts of corruption that caused state losses. They are being identified as B.M., the deputy of Section IV on Foreign Exchange Monetary Management and S.C.F., the deputy of Section V on supervision," said Corruption Eradication Commission (KPK) chief Abraham Samad.

The two officials named were Budi Mulya and Siti Fadjrijah, respectively. He said that the duo had abused their authority by approving the short term loan facility for Bank Century. "Their [mistake] was declaring Bank Century as a failed bank, which could have caused a systemic impact." Abraham said that he would soon follow up the case.

Century was created in 2004 as the result of a merger of three problematic lenders: Bank Pikko, Bank CIC and Bank Danpac. In 2008, the bank collapsed, but the government injected Rp 6.7 trillion ($717 million) to bail it out and bring its co-owner, Robert Tantular, to justice for siphoning off customers' money. Since then, the government has taken over the bank and renamed it Bank Mutiara.

Long after the bail out, several factions at the House of Representatives questioned the need to save the bank, which many have argued poses a threat to the country's banking and financial system.

The House has also voted that the bailout of Bank Century was illegal. The governing body blamed former Finance Minister Sri Mulyani Indrawati and Vice President Boediono, who at the time led the central bank, for allowing it to go through.

After the Supreme Audit Agency (BPK) performed a forensic audit on Bank Century, the organization discovered a flow of cash from Robert to Budi in September 2008, right before Bank Indonesia disbursed funds for the bailout in October.

Budi admitted that he received Rp 1 billion as a personal loan from Robert, but claimed it had nothing to do with the decision to bail out Century.

Meanwhile, Siti Chalimah Fadjrijah was reportedly persistent in urging other officials at Bank Indonesia to merge the three banks instead of shutting them down. As the deputy governor of supervision, she should have known the condition of the bank, but she agreed to bailout the bank regardless.

The director of supervision of Bank Indonesia, Zainal Abidin, said that he already sent Boediono a letter, with a copy of it sent to Fadjrijah, telling them that Bank Century should not receive a bailout because the bank had numerous structural problems.

Bambang Soesatyo, a member of the House Century supervision team from the Golkar Party, aired his appreciation for what the KPK had done so far in the case. "Our hope is that the probe goes beyond these two suspects," he said.

Dipo's maneuver shows rifts in Cabinet

Jakarta Post - November 20, 2012

Margareth Aritonang, Jakarta – Politicians are questioning why Cabinet Secretary Dipo Alam has reported officials from three ministries to the Corruption Eradication Commission (KPK) for allegedly colluding with lawmakers to fix budgets.

The unprecedented move by a Cabinet secretary indicates, again, serious friction within the multi-party Cabinet headed by President Susilo Bambang Yudhoyono.

One politician from the Golkar Party, which has often challenged the President on policy while remaining in Yudhoyono's coalition, said that Dipo should have consulted with the President and resolved problems internally, instead of filing a report with the KPK.

"Pak Dipo's move seems to confirm rumors that there is a serious rift within the Cabinet. The President must take immediate action on the matter, otherwise this will create a chaotic situation," Golkar Party politician Priyo Budi Santoso said in Jakarta on Monday.

Priyo, who is a deputy House of Representatives' speaker, evinced skepticism on Dipo's intentions. "He pointed to certain ministries, rather than pointing at all government institutions. He further described such corruption practices with lawmakers, which I think is an attempt to force the House and the government into conflict," Priyo said.

As previously reported, Dipo told the KPK that officials from three ministries allegedly colluded with lawmakers to fix budgets. While the Cabinet secretary declined to name the ministries, sources close to Dipo who declined to be named said the ministries were the Agriculture Ministry, Defense Ministry and the Trade Ministry.

High-ranking officials from the ministries have said they were ready to be questioned by the KPK about the allegations. The collusion at the Trade Ministry reportedly occurred before Gita Wirjawan was appointed trade minister in October last year.

Meanwhile, the reported collusion at the Defense Ministry involved more than Rp 600 billion (US$63.3 million) in an "optimization fund" that the ministry had requested from House Commission I overseeing defense.

Commission I chairman Mahfudz Siddiq confirmed on Monday that a Finance Ministry official had withheld disbursement of the fund at the Cabinet secretary's request.

"The Finance Ministry's director-general for budgeting told us in a meeting [in September] that the Cabinet secretary had asked the ministry to withhold disbursement of the fund," Mahfudz said.

"Dipo's move was irrational. He overstepped the President's authority by requesting that the Finance Ministry withhold the funds. He should have first reported it to the President, so that the President could summon relevant ministries for clarification."

Mahfudz described Dipo's actions as designed to distract the public from several currently controversial issues, including Yudhoyono's grant of clemency to several high-profile narcotics convicts on death row and the involvement of several politicians from his Democratic Party in several corruption cases, such as the Hambalang sports facilities construction project in 2010.

NGO discloses alleged misuse of Rp 63 billion of ministry social aid funds

Jakarta Post - November 19, 2012

Bagus BT Saragih, Jakarta – A state budget watchdog suspects there have been irregularities in the disbursement of Rp 63 billion (US$6.54 million) in social aid funds at the Disadvantaged Regions Ministry.

The Indonesian Forum for Budget Transparency (FITRA) said on Sunday that the ministry had not been accountable in the disbursement of the funds as many allocations had been made without proper and sufficient documents.

"Based on past experience, the absence of crucial documents can be an indication of irregularities. Hence, I urge law enforcers to investigate," FITRA researcher Uchok Sky Khadafi said.

He also expressed his concerns over the House of Representatives that had not "spoken out" to criticize ministries that had been accountable with state funds. "Why has the House been silent [on this issue]?" he asked.

According to FITRA, which claims to have based its findings on the Supreme Audit Agency's (BPK) 2012 audit, the amount of social aid funds at the ministry that lacked accountability reports accounted for 22.7 percent of the total Rp 277.57 billion allocated to the ministry for social aid in 2011.

Most of the problematic funds were allocated for projects in the regions. According to FITRA's data, they included a sanitation project in Morowali regency in Central Sulawesi worth Rp 300 million; a clean water project in Lebong regency, Bengkulu (Rp 298 million); a clean water project in East Halmahera regency, North Maluku (Rp 313 million); a clean water project in West Pasaman regency, West Sumatra (Rp 493 million); a dock in Muna regency, South East Sulawesi (Rp 396 million); village roads in East Lombok regency, West Nusa Tenggara (Rp 325 million); and a village market in Alor regency, East Nusa Tenggara (Rp 663 million).

When contacted for his respose to the claims, Disadvantaged Regions Minister Ahmad Helmy Faisal Zaini instead asked The Jakarta Post to contact the ministry's secretary, Nurdin. The secretary, however, did not respond to the Post's telephone inquiry.

Denials, claims of political maneuvering greet Dipo's collusion allegations

Jakarta Globe - November 19, 2012

Markus Junianto Sihaloho, Rizky Amelia & Ronna Nirmala – Politicians and antigraft activists have been left scratching their heads over claims by Cabinet Secretary Dipo Alam of corruption between legislators and officials in three ministries, but for different reasons.

While members of the House of Representatives balk at the notion of collusion, and even point to pre-election intrigue, activists contend that the practice is so common that everyone is already aware of it.

Agus Gumiwang Kartasasmita, deputy chairman of House Commission I, overseeing foreign and defense affairs, denied on Sunday that there was any kind of collusion between his commission and the Defense Ministry, one of the three ministries reportedly identified by Dipo in a report filed last Wednesday with the Corruption Eradication Commission (KPK).

"We at Commission I don't know anything about any collusion by anyone with regard to budget discussions," Agus said. "Whatever is agreed on and later formalized is done based on the funding request from the ministry and is comprehensively covered in the press."

He argued that it made no sense to accuse legislators of marking up funding in order to take kickbacks, saying that if anything, House Commission I had a long record of slashing defense budget requests.

He cited a controversial plan by the Defense Ministry to buy Leopard tanks from Germany, pointing out that it was the House that had uncovered and subsequently cut out the ministry's planned use of a broker, thereby bringing down the cost of the purchase.

Agus also denied that the House was involved in farming out government contracts in exchange for kickbacks.

"All we do is approve the equipment that the ministry wants to buy," he said. "For instance, if they want to buy computers, we'll talk about the specs and so on, but beyond that we have nothing to do with the purchase of the computers. As far as we're concerned, the government can by Apples or Acers or Samsungs or whatever meets their specifications."

All the president's men

Dipo's report to the KPK, in which he also reportedly fingered the Agriculture Ministry and the Trade Ministry, follows on a memo he released in later September in which he prohibited collusion between government institutions and politicians.

Commission I legislator Tjahjo Kumolo said the move highlighted growing disorder in the administration of President Susilo Bambang Yudhoyono.

Tjahjo, from the opposition Indonesian Democratic Party of Struggle (PDI- P), said he was surprised to hear from presidential spokesman Julian Aldrin Pasha that Dipo, a close Yudhoyono confidant, had not even consulted with the president before filing his report with the KPK.

"So I'm confused. Why is there an increasing sense of chaos in the administration? Why are the president's men slugging it out with each other in full view of the public?" he said.

He argued that as the cabinet secretary, it was Dipo's job to ensure harmony among the ministers, and to bring any spats to the attention of the president. "But it looks like [Dipo] is ignoring the president and wreaking havoc in the cabinet," he said.

Tjahjo claimed it was apparent that Dipo was trying to publicly humiliate Yudhoyono in a bid to boost his own popularity. Yudhoyono's term in office ends in 2014, with no clear front-runner emerging to replace him. Dipo, however, has not said whether he was considering a run.

Tjahjo called on House Commission II, overseeing domestic affairs, to call in Dipo, Julian and Sudi Silalahi, the state secretary, to testify about the collusion claim. He said it was important to get a clear picture from the president's inner circle about what was really going on.

"We need to figure out what game is being played out at this level of government. If those closest to the president are out to promote themselves, that would be highly inappropriate," he said.

Stating the obvious

Antigraft activists have also received Dipo's report of collusion with a degree of skepticism, but for a whole other set of reasons.

Yuna Farhan, secretary general of the Indonesian Forum for Budget Transparency (Fitra), said the illicit practice was "nothing unusual" and that it was rife throughout the government.

"I don't think Dipo's actions or statements highlight anything particularly special. He's just confirming what we've all known for so long," he said.

He cited a number of high-profile graft cases currently being investigated by the KPK at other ministries, including the procurement of Korans by the Religious Affairs Ministry and the construction of the Hambalang Sports Center and facilities for last year's Southeast Asian Games by the Sports Ministry. "All those cases involved high-level collusion between the ministries and legislators," Yuna said.

A Sports Ministry official and a Democratic Party legislator have been jailed in the SEA Games case, while another Democrat is standing trial in the same case. Similarly, a Golkar Party legislator has been named a suspect in the Koran case.

Yuna argued that Dipo had the power to do more in tackling collusion than simply reporting it to the KPK. "He should fix the things that are wrong in the system. The whole system of government budget planning must be made more transparent so that everyone can see what's going on," he said.

He said the change should start with the Finance Ministry, which distributes funding to the other ministries once the House has approved the budget. "With greater transparency on the Finance Ministry's part, everyone will be able to see where the money goes and whether there are any markups," Yuna said.

Din Syamsuddin, head of Muhammadiyah, the country's second-biggest Islamic organization, also played down the significance of Dipo's allegation. "While I support his move to file a report with the KPK, I must remind the KPK that it has bigger cases that it shouldn't forget. It shouldn't get sidetracked by what could very well be a diversion," he said.

Hard-line & vigilante groups

Indonesian hard-liners register volunteers to wage jihad against Israel

Jakarta Globe - November 23, 2012

Ronna Nirmala – The Islamic Defenders Front (FPI) distributed registration forms to volunteers willing to wage jihad against Israel at a protest in front of the US Embassy on Friday.

The hard-line group said they already had some volunteers – including FPI paramilitary commander Munarman – and that they planned to send FPI members to Palestine regardless of visa requirements.

"They will, insha Allah [God willing], depart with other volunteers," FPI deputy chief Bernard Abdul Zabbar said on the sidelines of Friday's protest. "Whether they permit us to go or not, we will still help volunteers who wish to go. We have many friends who will help us whether the state allows us to go or not."

FPI members distributed the forms to the 5,000 protestors who gathered to demonstrate outside the US Embassy in Jakarta. The protestors denounced the United States for failing to side with Palestinians and burned photos of US President Barack Obama, Israel Prime Minister Benjamin Netanyahu and Syrian President Bashar al-Assad.

The hard-line group also handed forms to police officers tasked with securing the area, Alfian Tanjung, another deputy chief of the FPI, told the Indonesian news site liputan6.com. "We're offering jihad registration forms to FPI members and police officers," Alfian said.

Freedom of religion & worship

Lawmakers insult Shia at House

Jakarta Post - November 23, 2012

Margareth S. Aritonang and Wahyoe Boediwardhana, Jakarta/Sampang, East Java – Members of the beleaguered minority Shiite Muslim community of Sampang, Madura, were shocked on Thursday when House lawmakers answered their requests for aid with ethnic slurs and indifference.

The Shia, who have been living in a refugee camp after majority Sunnis burned their houses and killed two in August, were at the House to ask lawmakers to allow them to return home after the local government announced it would stop giving the refugees food and water.

"We don't know how long we can survive there [in the camp]. We are told that we have a government, but we never feel the love of the government," Shiite leader Iklil Al Milal told lawmakers on Commission VIII overseeing religious and social affairs.

Iklil said that the 176 Shiites in the camp have used their own money for the past two days to buy food and water. "An officer from the Sampang Disaster Management Agency gave us a warning on Tuesday that the agency could no longer support us. Please let us go home so we can work and support ourselves," Iklil said.

Iklil's emotional plea failed to resonate with lawmakers assembled for the hearing, some of whom were busy with personal business. United Development Party (PPP) lawmaker Hasrul Azwar, for example, was seen talking with a staff member about a cash delivery.

Hasrul's conversation distracted those at the meeting, prompting chairman Abdul Azis Suseno of the Prosperous Justice Party (PKS) to reprimand him.

Another lawmaker, Rukmini Buchori of the Indonesian Democratic Party of Struggle (PDI-P), indulged in ethnic stereotyping, attributing the violence that befell the Shia to their heritage as coarse Maduran fishermen.

People from Madura were ill-tempered, Rukmini said, which led to the frequent clashes between Shia and Sunni on Madura Island.

"They [Madurans] were once involved in conflicts with locals in Sampit [Central Kalimantan] and Sambas [West Kalimantan]. They now attack each other [in Sampang]. It seems to me that the Madurese can't pull themselves together. This may have something to do with the fact that they are mostly fishermen. They are used to speaking loudly at sea and they continue doing it on land," Rukmini said.

The lawmaker then called on the Commission for Missing Persons and Victims of Violence (Kontras) to "help" the Shiites renounce their religious beliefs.

"I don't know for sure, but I've been told that the Shiites practice a different kind of Islam. The Shia community must learn to adapt to the norm. I encourage Kontras to help them reform so they can be accepted by their neighbors," she said.

Another lawmaker, Mahrus Munir of the Democratic Party, said that he suspected that the Shiites had created their problems themselves and that he doubted that local officials were ill-disposed to their plight.

"I know that the government has not done its best. But are you sure that they cut the food and water supply?," Mahrus said to the Shia community representatives.

Contacted separately, Home Minister Gamawan Fauzi said that he was surprised to learn about the food and water scarcity among the Shia refugees and that he would verify the situation with the local administration.

The minister also said that the government would press ahead with its plans to relocate the Shia refugees by building 70 apartments in a new location.

However, this offer came with a caveat. "They can use these apartments or other places the government will prepare as soon as all of them, not only some, agree on relocation," Gamawan said.

Agriculture & food security

Indonesia rejects industry plea for more beef imports

Reuters - November 23, 2012

Indonesia has rejected a request for an increase in beef import quotas, an industry group said on Friday, urging the government to reconsider its beef sustainability push after prices in many parts of the country nearly doubled this week.

Indonesia slashed 2012 cattle and beef import quotas by as much as 62 percent to stimulate domestic beef production and help reach an ambitious 2014 self-sufficiency target.

Domestic beef prices have spiked in parts of Java province as retailers struggle to find supplies after the government drive to boost self- sustainability by cutting imports backfired, a trade ministry official said this week. The move has caused turmoil in domestic beef prices, said Sarman Simanjorang, chairman of trade body the Jakarta Beef Committee.

"That's why we have to evaluate the policy," he added on the sidelines of a beef industry panel in the Indonesian capital. "We proposed that the government add 30,000 tonnes of beef import quotas, they refused it."

Beef prices in many parts of Java have climbed from Rp 65,000-70,000 ($6.75-$7.27) per kg to as much as Rp 105,000 ($10.91) per kg in recent weeks, Deputy Trade Minister Bayu Krisnamurthi said on Monday.

"The agriculture ministry argued that Indonesia has a beef surplus of 20,000 tons, which business people do not believe," added Simanjorang, whose group has more than 4,000 members, among them beef or cattle producers, importers, processing industries and retailers in the capital.

Other areas also hit by the shortage, said to be caused by cattle supply problems from East Java, West Java, Central Java, Lampung and Jakarta, include Bogor, Depok, Tangerang and Bekasi.

Beef producing provinces were refusing to send cattle to be slaughtered in Jakarta, so to ensure supplies for themselves, Simanjorang added.

Indonesia consumed about 430,000 tons of beef in 2011 and this is estimated to rise by about 13 percent this year, as the growing affluence of its population of 240 million boosts consumption. Beef consumption next year is likely to rise to 550,000 tonnes, said Joni Liano, executive director of the Indonesian Feedlot Association (Apfindo), while domestic supplies are seen at only 432,000 tons.

The archipelago's beef and cattle imports come mostly from Australia, New Zealand and Canada.

In an effort to combat rising food prices earlier this year, Indonesia said it planned to expand the job of national rice procurement agency Bulog, to include other food items, including beef.

Southeast Asia's largest economy issued import quotas for 90,000 tons of beef and 600,000 live cattle in 2011.

'Don't have a cow, man': Beef sellers strike over shortages, high prices

Jakarta Globe - November 17, 2012

Indonesians with an appetite for beef may find themselves out of luck this month, as skyrocketing meat prices have caused several vendors to close shop and go on strike.

"There are usually three beef kiosks here, but they have all shut down since Thursday," Siti, a vegetable hawker at the Palmerah market in West Jakarta, told Tempo.co on Saturday.

Meanwhile, Metrotvnews.com reported that sellers at the Kramatjati market in East Java are also striking – though they showed up to their stands, they did not offer beef.

Asep, a local hawker, said that he stopped selling beef because there was no more stock available. He added that the shortage had been ongoing for roughly a week. Another vendor at the Kramatjati market, Uci, commented that beef sellers agreed to strike until Monday and will start selling again on Tuesday.

The price of beef at the moment is more than Rp 90,000 per kilogram. "This is because of a supply shortage," Ngadiran, the head of the Market Trader Association (APP), said on Saturday, as quoted by Tempo.co.

Thomas Sembiring, the head of the Indonesian Beef Importer Association (ASPIDI), stated that the shortage and steep increase in price was caused by a government decision to slash its import quota for beef. He added that purveyors chose to stop selling because the higher prices drove customers away.

The scarcity has caused problems for Padang restaurants, in particular, which are known for offering dishes such as rendang, a popular West Sumatran beef curry dish.

Padang Pukek Jaya, a restaurant located in Kampung Rambutan in East Jakarta, has stopped selling rendang because of the recent price hike. "Many customers want to order rendang, but we cannot serve it because of the beef shortage," Sisi, the owner of the restaurant, told Kompas.com.

Parliament & legislation

Lawmakers' trip to Germany to meet protest

Jakarta Post - November 18, 2012

Indonesian lawmakers' working visit to Germany to learn about engineering legislation is expected to be met with hostility from Indonesian communities in the Western European country.

The Berlin chapter of the Association of Indonesian College Students (PPI), the German branch of Nahdlatul Ulama and Watch Indonesia in Berlin said in a joint statement that they were opposed to the visit because it lacked transparency and urgency.

Eleven members of the House of Representatives' legislation committee are scheduled to visit Germany Nov. 17-23. Another 11 lawmakers will depart for Britain for the same purpose next month.

Committee chairman Ignatius Mulyono said that the visits to Germany and Britain were part of the House's efforts to obtain input needed to draft a bill on engineering. The law will be vital for Indonesia to regulate free competitions when Indonesia fully implements the ASEAN Free Trade Area (AFTA).

PPI Berlin chairman Yoga Kartiko said that the lawmakers should focus on domestic problems before they conduct so-called "comparative studies".

"It would be more productive to study key issues in the bill with local experts and relevant institutions knowing that the Indonesian situation is starkly different from that of Germany," he said.

Stronger legislation needed, analysts say

Jakarta Globe - November 17, 2012

Pitan Daslani – The dissolution of oil and gas regulator BPMigas by the Constitutional Court this week highlighted the weakness of Indonesia's lawmaking abilities, some political and legal analysts said, arguing that strengthening the legislative procedure and lawmaking is urgently needed.

The Constitutional Court, known as MK, ruled on Wednesday that several articles of the oil and gas law that served as the foundation of BPMigas were unconstitutional.

The court said that while BPMigas was a representative of the government, it was unable to control the oil and gas sector for the benefit of the people, thus failing to apply the spirit of Article 33 of the Constitution, which states that key sectors of production and natural resources remain under the state's powers.

While MK's ruling on the oil and gas law has been surprising, it is only one of many laws that have been fully or partially scrapped by the top constitutional judges. According to MK, it has amended nearly 60 laws since the court's establishment in 2003.

The experts also agreed that Indonesia's lack of confidence following the 1997 financial crisis and dearth of knowledge in how to regulate its own energy sectors following the downfall of Suharto prompted officials to seek outside help.

BPMigas was formed in 2001, following advice from USAID, a US agency that provides economic assistance in line with American foreign policy. Indonesia, which devalued its currency in 1997, plunged into crisis that had also swept parts of East Asia. The country, under rule by then- authoritarian leader Suharto, sought help from the International Monetary Fund for aid, which in return asked for a series of reforms, which included the energy sector.

Then-Mines and Energy Minister Kuntoro Mangkusubroto sought help from USAID to improve Indonesia's bill on the energy sector and the US government willingly stepped in to salvage the situation, according to a 2008 press statement from the US Embassy in Jakarta. Kuntoro asked USAID "to help review a draft Oil and Gas Law," according to the statement.

The United States provided technical assistance and training for Indonesia as it considered reform in the energy sector after Kuntoro had asked for help, the US Embassy said.

That was part of the implementation of an Indonesian government agreement with the IMF as contained in the Letter of Intent, which required the government to reform the energy sector.

The United States provided "inputs on best practices and international experience on these issues" that were "designed to be helpful and contributed to the [Indonesian] government's process, and all decisions about any changes to law or policy were made by the government of Indonesia as an output of its own processes."

For that, Indonesia and the United States signed what was called a Strategic Objective Grant Agreement under which USAID would channel a total of $20 million for five years.

"These budgets were for funding the long-term technical assistance teams, short-term TAs, workshops and training. USAID mobilized three TA teams for Oil and Gas, Electricity and General Energy," the statement said.

The document explains further that "USAID helped the government of Indonesia to review the draft law, in terms of its consistency, implementability and the phases of the implementation. It also helped review the academic paper for this law, which explains the reasons, how it would be implemented and what likely impacts would occur. This academic law became the 'Oil and Gas Policy' paper."

This revelation shows the government's lack of competence in drafting a law, according to state administration expert Margarito Kamis, who testified in the MK hearings for the oil and gas law.

He told the Jakarta Globe on Friday that even during the proceedings, "the United States government's intervention in restructuring the oil and gas draft law was discussed openly."

Meanwhile, energy industry analyst Kurtubi said that US intervention in drafting the oil and gas law was a logical outcome of the Indonesian government's own policy of obtaining loans from the IMF.

The government's LOI for the IMF required scrapping Law No.8/1971 on state oil and gas company Pertamina and replacing it with a new law, the formulation of which from the initial stage to its adoption and issuing of implementation directives was funded by the World Bank and USAID, Kurtubi explained.

The law sought to liberalize the energy sector and left domestic fuel prices to a free-market mechanism, of which establishment of BPMigas was deemed necessary at that time.

He said the law also sought to split Pertamina's operation into upstream and downstream activities so that it would be easier to privatize the sector.

It also allowed foreign oil companies to conduct downstream operations – or selling and distribution of fuel – only by obtaining an operating license but with no obligation to build the industry's infrastructure. All of Pertamina's downstream outlets must be available for use by foreign downstream operators, Kurtubi said.

The analysts have also suspected the body of being too liberal and inefficient because while cost recovery compensations for the contracts under its auspices continued to swell, Indonesia's crude oil production declined over time to just more than 900,000 barrels per day from the previous level of 1.4 million barrels per day.

Their suspicion was based on the fact that BPMigas was not formed until after the Indonesian government had sought advice and help from USAID to review the oil and gas draft bill that had earlier been rejected by the House of Representatives.

"I told the Constitutional Court that exploitation of natural resources is too big an issue to be handled only by a body that was set up under the Oil and Gas Law. Such an arrangement is unconstitutional because exploitation of natural resources is mandated by Chapter 33 of the Constitution, which is high above the law," Margarito said.

These are part of the reasons why Muhammadiyah, Indonesia's second-largest Islamic organization, is now planning to propose judicial reviews on a number of other laws that it thinks are not compatible with the 1945 Constitution, the analysts said.

The ultimate purpose is to ensure that the people of Indonesia should get maximum benefit from the exploitation of natural resources either by local or foreign operators, political expert Indria Samego said.

He told the Globe that efforts of Muhammadiyah, Nahdlatul Ulama and other mass organizations in proposing such judicial reviews "must be appreciated because they reflect the true aspirations of the people that Indonesia must be sovereign in managing its natural resources."

"The government must be strong," Indria said, otherwise, it would be easily indoctrinated to believe that it must not interfere in the market process to avoid distortion and a high-cost economy, which would be a disaster for the nation if left unchecked.

"Many government officials are seeking help from abroad and in the process they expect to be regarded as being pro-free-market. This is the fate of a colonized nation," he lamented

Senior economist Dradjad Wibowo said that the oil and gas law was too liberal, with an unclear direction. He said that the House must completely overhaul the law.

"It [the law] aimed to cripple Pertamina at a time the company needed to be strengthened in order to become a big-scale player. But because it split Pertamina's operations, it was difficult for the company to accumulate surplus and capital," he said.

The law is also to blame for the drastic decline in the nation's oil production, Dradjad said.

President Susilo Bambang Yudhoyono issued a regulation after the MK's ruling to abolish BPMigas and transfer its authorities to the Energy and Mineral Resources Ministry.

Hikmahanto Juwana, a legal expert from the University of Indonesia, said that disbanding BPMigas and shifting its functions to the ministry represents a setback because it will put the Indonesian government at par with the foreign oil companies with whom it will sign contracts.

Hikmahanto suggested that after so many decades of dealing with foreign contractors, Indonesia should not implement a system where the state signs contracts with foreign operators like it did for ventures with Freeport- McMoRan Copper & Gold and Newmont Mining.

Ethnic & communal conflicts

'Lack of redress' over past now haunts Poso

Jakarta Globe - November 17, 2012

Rangga Prakoso & Rizky Amelia – Analysts have blamed the recent string of terrorism-related violence in Central Sulawesi's Poso district on the government's failure to solve underlying social woes.

"These kinds of incidents happen again and again because the roots of the problem have never been addressed," Erlangga Masdiana, an intelligence analyst from the University of Indonesia, said on Friday.

He said the factors behind the rise of militant Islam in Poso had never been thoroughly solved, and if any solutions were brought up, they were only discussed at the top level among public figures, but never involved the disputing parties.

Erlangga said that Poso was a special region due to the diversity of its people and their historical reluctance to blend.

"There's a culture gap in Poso. There's no cultural blend. It's true that some of the conflicts stem from ethnic and religious issues, which can erupt at any time," he said. However, he argued that the problems could be solved through proper enforcement of law and order.

"Second, the cultural and assimilation problems have to be solved thoroughly. If they involve ethnic and religious matters, communication between religious figures must be nurtured. If they involve personal matters, they should be solved through the law," he said.

The Commission for Missing Persons and Victims of Violence (Kontras) said the government had failed to adequately deal with the victims of the violence in Poso.

"The victims and families of the conflicts are still traumatized and still hold grudges," said Sinung Karto, head of advocacy at Kontras. "The government's programs have failed to heal them."

He added that the victims of the conflicts became radicals after organized groups from outside Poso approached them. The victims thus felt like they had support in seeking justice for family members who died.

Sinung said local authorities were another factor behind the tensions there, particularly after the Poso district head gave former combatants development projects. Intending to deradicalize them through empowerment programs, it instead resulted in re-radicalization. "The Poso administration ignored the need to restore the victims' civil rights," Sinung said.

Since last month, the district has seen a series of violent attacks involving several fatal shootings, ambushes and bombings of police and civilians.

"The violence started as acts of terrorism. If the police cannot manage this, it can lead to civilian conflicts," said Syamsul Nur Alam, deputy chairman of Kontras. He said there had also been extra-judicial killings of terrorist suspects by the police's counterterrorism unit in Poso's Muslim- majority areas.

Last week, police killed a terrorist suspect, identified as Jipo, while another raid on Nov. 10 led to the death of a person identified as K. who was trying to detonate a bomb, a police official said. Both killings have sparked anger in the Poso Muslim community, leading to demonstrations in front of the district police headquarters and a local market.

"Kontras calls on the police to talk first and consider the psychological state of residents because the area was once a conflict zone and the reconciliation process has not been adequate," Syamsul said.

Former Vice President Jusuf Kalla previously said the violent incidents were not religious conflicts but simply crimes that needed to be tackled and prevented. "There's no conflict in Poso. The recent terrorism [incidents] were just crimes that have to be properly addressed and prevented," he said.

Kontras warned that the religiously charged terrorism acts could cause the restive area to again descend into armed conflict. Poso was the scene of sectarian violence in the late 1990s in which more than 1,000 people were killed.

Jakarta & urban life

Jakarta to pay river-dwelling residents to keep waterways clean

Jakarta Globe - November 21, 2012

Ronna Nirmala – Tired of years of mismanagement and costly, but ineffective, cleanup efforts, Jakarta Deputy Governor Basuki Tjahaja Purnama announced an end to the hiring of private contractors to clean the capital's heavily polluted rivers on Wednesday.

The capital spends some Rp 90 billion a year on contracts with private companies to dredge Jakarta's 13 waterways with little effect on their cleanliness, Basuki said.

Most of Jakarta's rivers are heavily polluted by industrial waste, raw sewage and floating islands of litter that contribute to the capital's annual flooding issues.

"Floods are actually a matter of mismanagement and we will repair that," he said. "It is currently difficult to see whether these private companies actually clean the rivers. What we can see is that the rivers remain dirty and if we ask them they always argue that they had just cleaned it yesterday and that the garbage just arrived."

Jakarta government will drop the budget for private companies and instead pay local residents who live along the waterways to keep the rivers clean, Basuki said.

"If the river is 400 kilometers long, we will assign one kilometer to one person," he explained, adding that the residents could receive some Rp 2 million a month. The scheme could create new jobs for residents and allow the government to hold individuals accountable, Basuki explained.

Governor Joko Widodo and deputy Basuki rose a wave of populist support into office, besting incumbent Fauzi Bowo in a heated runoff election. The pair have spent their first month in office on a reformist kick, threatening to fire inactive bureaucrats and soliciting input from local residents in a move that has inspired cheers from Jakarta's citizens and jeers from some former leaders and city experts.

Jakartans cautiously check out free city healthcare services

Jakarta Post - November 21, 2012

Jakarta – Mustaqim, 44, was waiting for his turn to be examined at the Tebet community health center (puskesmas) in South Jakarta over the weekend. "My eyes hurt and I've come to get them checked," he told The Jakarta Post while taking off his sunglasses to show his sore eyes.

The resident of Manggarai Utara said it was nothing serious "but I caught the flu as well", trying to be as convincing as possible about his poor health.

The real reason for his visit to the puskesmas, he admitted later, was to find out whether he could get the free medical examination just by showing his ID card as promised by Governor Joko "Jokowi" Widodo earlier.

"It didn't really matter if I ended up paying for the examination. I just wanted to know if it really was free," said the ojek (motorcycle taxi) driver.

Last week, the Jokowi administration launched the Jakarta Health Card program that allows all city residents to access free medical services at the city's community health centers and hospitals.

The administration distributed 3,000 health cards in low-income areas such as Tambora in West Jakarta, Pademangan in North Jakarta and Manggarai in South Jakarta.

Jokowi expects about 4.7 million Jakartans will have the cards that will entitle them to free health services in all puskesmas or third-class facilities in hospitals across the capital by 2013.

Residents who have not yet obtained the health cards can also get the free treatment by showing their ID cards or family cards as long as they are not already covered by health insurance.

Rusminah, 36, a mother of three, went to Tebet Puskesmas to get an IUD kit and she was dealt with for free by showing her ID card.

"I'm happy that I can get the family planning service for free. Without this health card program, I'd have to pay around Rp 17,000 [US$1.72] to get the IUD kit," said the wife of a factory worker. "I feel touched, I mean, I've never got anything for free," she told the Post.

Mustaqim and Rusminah were among the many Jakarta residents who went to puskesmas just to check out the much-vaunted free healthcare program.

Tebet Puskesmas official, Sutoyo, said that he hadn't calculated the number of visitors that day but he said that the line seemed to be longer than the days before the program was launched.

He said that all Jakarta residents could avail of free services, including dental treatment and inpatient facilities. "Any facilities that are provided by the puskesmas can be accessed freely by every Jakarta resident," he said.

The situation was similar at Manggarai Puskesmas, where the center head, Sindang Marlina, said the number of patients increased significantly after the program was launched.

"Usually we only handle around 50 to 60 patients in a day. Today we had 112 patients, and 68 of them received the service for free," she said. "Some of the patients did not suffer any health problems but came here just to check whether they could get free treatment," she added, smiling.

However, the program faced criticism as the administration has not yet reimbursed payments claimed by hospitals that provided similar free healthcare in the program initiated by previous governor Fauzi Bowo; the Gakin card program.

Pasar Rebo General Hospital spokesman Deddy Suryadi told kompas.com that the city administration still owed Rp 5.5 billion to the hospital as of this year. Deddy said that the delayed payment complicated the hospital's operational activities because they needed the money to run their healthcare facilities.

As reported earlier, the administration expects to spend about Rp 2.9 trillion on health next year, Rp 900 billion of which will be used to finance the health card schemes.

According to Sindang, all the services provided at the puskesmas will be reimbursed by the administration every month. "I don't know for sure the mechanism of the reimbursement, I guess we just have to wait and see at the end of this month," she said. (nad)

Transgendered community looks to Jokowi

Jakarta Post - November 20, 2012

Novia D. Rulistia, Jakarta – Anticipating that their long fight for recognition from the Jakarta administration may come to an end, a group of transgendered persons brought a long wish list to City Hall on Monday.

They were scheduled to meet the new governor, Joko "Jokowi" Widodo, in whom they believed would be able to give them better access to jobs and health care.

"We know that Pak Jokowi is close to unfortunate people, so we hope he can listen to us and give attention to the transgendered community because we are also part of the city," said Indonesia Transgender Forum chairperson Yulianus Rettoblaut.

Yulianus, or Mami Yuli, said that transgendered individuals, locally known as waria, often found it hard to look for descent jobs because many people still see them "different".

"We also want to suggest to him [Jokowi] to provide training for our community to improve our skills so we can have better employment opportunities," she said.

However, their list of expectations could not be delivered directly to the governor, as their visit did not fit in Jokowi's tight schedule. Instead, the group was received by Jakarta Public Order Agency (Satpol PP) chief Effendi Anas.

For the transgendered individuals who earn their living by working as street prostitutes, Satpol PP is their nemesis. Media reports record that many of them caught in raids have been beaten by Satpol PP officers.

In 2008, one individual died during a raid around Taman Lawang park, Central Jakarta. She drowned in Ciliwung River after fleeing a hail of stones thrown by officers.

The officers said that raids were conducted in order to create a more comfortable living environment, free from "people with social and community problems" (PMKS), in which transgendered persons are often listed.

Instead of allowing the visiting group to get everything out of their chest, Effendi talked them into staying off the street. "You can draft a proposal about nursing homes and various programs to help improve the lives of your community and hand it to Pak Jokowi and the social agency," Effendi said in the meeting.

Yulianus said the meeting with Effendi was insightful. "Now we know why Satpol PP officers conduct raids. I will inform my friends to behave in a more appropriate manner, including wearing descent clothes so raids will not be needed in the future," she said.

Merlyn Sofyan, the group's chairperson for the western part of Indonesia that includes Jakarta, said that besides addressing employment opportunities, they also expected the administration to focus on the provision of health services as well as providing more shelters for the homeless in their community and nursing home for elderly individuals.

"There is this Jakarta Health Card program, we hope that program can reach our community too," she said. "We will keep campaigning to have Jakarta ID cards through proper procedures. If they are healthy, we believe they can be productive and be good for the society," she said, adding that only 500 transgendered persons in Jakarta have Jakarta ID cards.

According to the group, there are more than 8,000 transgenders living in the capital, mostly living in slum areas at train stations or under bridges. The group, Yulianus said, would arrange another meeting with the governor in the near future.

Ahok orders Jakarta schools to stop collecting illegal fees from parents

Jakarta Globe - November 19, 2012

Jakarta Deputy Governor Basuki Tjahaja Purnama lashed out at the capital's education agency in a video posted to YouTube, giving the agency an ultimatum, either reform or look for a new job.

The deputy governor ordered the agency to crack down on the collection of illegal schools fees, a common practice in Jakarta's free education system. Basuki threatened to freeze the budget of any schools that continued to demand fees from parents.

"There should be no more fees taken by schools," Basuki said in the video. "Even at international schools, there should be no fees taken." Teachers who continue to ask for additional money will be asked to look for work outside the capital, he added.

"There should not be an extra lesson [fee] added to their salaries," Basuki said. "The money managed by the school committee for [additional teacher] allowances is illegal. Ask [the teachers] whether they want to go to jail."

The head of the Jakarta education agency Taufik Yudi argued that schools can ask parents to finance the operations of public international schools (SBI) and schools in the process of attaining international accreditation (RSBI).

But according to Basuki, all donations should be counted as revenue in the regional budget, not handled by individual schools. "It should not be managed by the schools," he said. "There should not be illegal fees managed by schools."

The deputy governor's comments came during a longer discussion of education reform in the capital. Basuki told the education agency that city administration will conduct regular audits of schools to cut down on wasteful spending.

"We will also audit the prices of student workbooks (LKS), to see whether it [the price] make sense or not," Basuki said. "If it doesn't make sense, we'll replace the headmaster." Basuki also urged wealthy Jakartans to send their children to private schools instead of public international schools.

"If you're rich and driving an [expensive Toyota] Alphard, please [send your children] to Al Azhar or Sekolah Pelita Harapan," he said. "Our vision is clear, the schools for the gifted should only be for the poor. No rich students should go to these schools."

Another video of Basuki reprimanding the Public Works agency went viral last week after it was posted to YouTube. The deputy governor slashed their budget by 25 percent and threatened to report them to the Corruption Eradication Commission (KPK) and the Attorney General if they skim money off inflated budgets.

Foreign affairs & trade

OIC legislatures to discuss anti-blasphemy

Jakarta Post - November 20, 2012

Margareth Aritonang, Jakarta – The House of Representatives (DPR) has decided to follow up a proposal for an international anti-blasphemy provision by garnering support from legislatures throughout the Organization of Islamic Cooperation (OIC).

The need for an international anti-blasphemy provision was mentioned by President Susilo Bambang Yudhoyono in his address to the 67th session of the United Nations General Assembly in New York in October.

As the President's call received short shrift from other governments, the House has initiated work with the foreign legislative bodies to create a "collective understanding" about blasphemy at a parliamentary event on interfaith dialogue scheduled for Tuesday and Friday in Bali.

House Speaker Marzuki Alie said that the gathering aimed to encourage each respective parliamentary body to produce, among other things, legislation that would not tolerate any justification for blasphemy, even democracy.

"Blasphemous acts are often tolerated in the name of democracy. Democracy is also cited to prohibit a government punishing a citizen who insults a certain religion. We think it's inappropriate to use freedom of religion to validate blasphemous acts. Therefore, all countries need to have the same understanding [on blasphemy]," Marzuki told reporters on Monday.

"It's the government that often encourages meetings to endorse such an anti blasphemy protocol. It's time for the world's legislative bodies to follow suit so that we can produce legislation encouraging religious harmony in our respective countries," the Democratic Party politician added.

Concurring with Marzuki, lawmaker Hayono Isman from the House's Commission I on foreign affairs said that the move was also "a response to a call by the United Nations secretary-general [Ban Ki-moon] for the House to play a more active role in nurturing religious tolerance in the country".

While the Indonesian government and lawmakers believe in the urgency of setting legal guidelines to counter blasphemy internationally, the UN's rights body has deemed Indonesia's existing laws on such matters, such as the 1965 Blasphemy Law and a 2008 joint ministerial decree, as discriminatory against religious minorities.

The UN has continued to call on Indonesia to amend or repeal such discriminatory laws after the government's refusal to adopt such a recommendation following a UN quadrennial rights summit in Geneva, Switzerland, last May.

Through its high commissioner on human rights, Navanethem Pillay, the UN has again urged the Indonesian government to amend or repeal all laws and regulations deemed discriminatory against religious minorities groups or risk the country's pluralist nature being hijacked by religious extremists.

Marzuki refused to comment on Pillay's call, saying that the decision would be made later after the four-day interfaith gathering in Bali.

Mining & energy

Indonesia's court rules local governments must set mining areas

Bloomberg - November 22, 2012

Indonesia's Constitutional Court granted greater power to local administrations to designate areas for mining by amending some articles in the 2009 Mining Law, according to a ruling announced today.

The court revised article 6 point 1 of the law to state that local administrations must consult with the parliament in deciding areas for mining, Chief Judge Mohammad Mahfud said in Jakarta. The article earlier dictated that mining areas be decided by the central government after coordination with local governments.

"To meet the democracy principles, local empowerment and regional autonomy, it is fair that the local government has the power" to decide mining areas, according to the ruling, obtained by Bloomberg News.

The current regulation "is insufficient to protect the constitutional rights and the regional authority in determining policy on the natural resources in the region, especially for minerals and coal," the ruling says.

The ruling is the second success by local governments in seeking bigger benefits from abundant coal, nickel and copper resources, after the Supreme Court annulled on Nov. 5 some articles in Energy and Mineral Resources Minister Decree No. 7, which is the supporting rule for the mining law, including article 21 that bans exports of mineral ores.

"It won't affect existing miners if the ruling is not retroactive," Leonardo Henry Gavaza, a Jakarta-based analyst at Bahana Securities, said by phone. The decision will potentially complicate the process of new permits, he said.

'What we want'

Today's decision was based on a request from Isran Noor, regent of East Kutai in East Kalimantan province, a coal producing region. Indonesia is the world's largest exporter of tin and thermal-coal and biggest producer of nickel ore.

"That is exactly what we want, because we're the ones who know exactly resources in our region," Noor told reporters at the court after the decision was read. "After this, we can resume issuing mining permits that were halted due to the judicial review."

The Ministry of Energy and Mineral Resources will study the ruling, Susyanto, the ministry's head of legal and public relations, said at the court. "We will study the verdicts and consult with other ministries including the Law and Human Rights Ministry," he said.

The court also ruled that Mining Business Areas, or Wilayah Usaha Pertambangan, WUP, in Bahasa Indonesia, will be designated by local governments, and signed off by the central government, a reversal of the previous regulation.

WUP's are mining areas in which sufficient geological data has been produced on potential reserves. The ruling applies to mineral and coal areas.

Infrastructure & development

Infrastructure on red alert, players call for solutions

Jakarta Post - November 23, 2012

Hans David Tampubolon, Jakarta – The condition of infrastructure development in Indonesia is currently in a state of emergency and the government must start developing an innovative response to solve the issue, investors are saying.

The Indonesian Association of Planners' (IAP) secretary-general, Bernardus Djonoputro, said unclear regulations, a lack of project preparation and difficulties in acquiring land had always been and were still the major problems that remained unsolved, thereby hindering private sector firms, be they foreign or local, from significantly contributing to infrastructure development in Indonesia.

"All global players are interested in entering the infrastructure industry in Indonesia but, at the same time, we are competing against other emerging markets. The financing is available, but it will only enter markets that are able to provide assurances and security," Bernardus said during a press conference on the sidelines of the Infrastructure Leaders Forum (ILF) seminar in Jakarta on Thursday.

Based on data from the National Planning Agency (Bappenas), Indonesia needs at least US$140 billion to finance infrastructure development over the next five years. The government, however, can only afford to fund around 35 percent of the needed infrastructure financing. The rest of the financing is expected to come from private investors under public private partnership (PPP) schemes.

There are 79 PPP projects worth $53 billion that have been offered to the private sector, out of which only one project in Central Java has completed its tender phase since the start of this year. The remaining projects have stalled in their early stages.

Poor infrastructure is creating high costs for the economy and logistical bottlenecks are expected to worsen following industrial expansion in Java. Indonesia's land transportation costs are far higher than those in neighboring Malaysia, Thailand and Vietnam, according to the World Bank.

Deputy head of infrastructure and regional development at the Office of the Coordinating Economic Minister, Wahyu Utomo, said the government had conducted several rounds of analysis seeking innovative measures.

"To support infrastructure development, we are considering developing a new institution, which has yet to be named. This institution will be responsible for preparing project proposals that are sufficiently viable to be offered to private investors," Wahyu said.

He added that, alternately, the government was considering issuing infrastructure bonds to obtain financing to enhance project preparations. "These bonds would focus on infrastructure projects as stipulated in the Master Plan for the Acceleration and Expansion of Indonesian Economic Development [MP3EI]," he said.

The MP3EI is a government blueprint that is expected to trigger growth in Indonesia and, in the long run, make the country one of the top-five global economies by 2025. It focuses on infrastructure development in six corridors – Java, Kalimantan, Sulawesi, Sumatra, Bali-Nusa Tenggara and Papua-Maluku – across the archipelago.

Development of the corridors is expected to garner at least Rp 4,000 trillion ($468.5 billion) in investment for various projects within a 15- year period, beginning in 2011.

Analysis & opinion

Theater of the absurd, Indonesian politics style

Straits Times - November 21, 2012

John McBeth – When I picked up a newspaper the other morning and read that Golkar was considering former finance minister Sri Mulyani Indrawati as a running mate for its presidential candidate Aburizal Bakrie, I almost choked on my wheaties.

I mean, what has Golkar been smoking – or, for that matter, some of the commentators who actually think it is possible? Perhaps they believe in Napoleon's saying: "In politics, an absurdity is not an obstacle."

Back in May 2010, it was Aburizal and his political cohorts who drove Sri Mulyani to resign from President Susilo Bambang Yudhoyono's Cabinet and into her current well-paying job as a managing director at the World Bank, where she is doing just fine.

Two months earlier, a parliamentary inquiry had made her and Vice-President Boediono, the former central bank governor, the target of a criminal investigation for directing the 2008 bailout of little-known Bank Century, which cost the state US$710 million.

Hollowed out by its corrupt owners, the pair have always insisted that they made the difficult decision to save Century to head off a feared meltdown among 20 smaller banks – similar to that which occurred during the 1997-98 Asian financial crisis.

Now, two years after that event, Golkar has her on a list of possible vice-presidential candidates for 2014. Clearly, no one even bothered to ask Sri Mulyani. When I sent her the story, she declared herself "speechless" – as well she might.

Media memories appear short as well. One newspaper which carried the original Antara news agency report failed to grasp how ludicrous the whole idea was, calling a Bakrie-Sri Mulyani ticket an "intriguing if unlikely pair."

But not everyone in Golkar is on the same page. Golkar stalwart Marzuki Darusman dismissed the proposed 2014 team as a "sick joke," and deputy party chairman Fadel Mohammad noted politely that Sri Mulyani wouldn't be a good fit for the party platform.

The two Golkar politicians supporting this journey into unmitigated gall are Deputy House of Representatives Speaker Priyo Budi Santoso, another party vice-chairman, and secretary-general Idrus Marham, reputedly a close Bakrie associate.

Marham was, in fact, the head of the committee of inquiry into the bailout, and Santoso, as Golkar's oft-quoted spokesman at the time, was a frequent critic of Sri Mulyani and Boediono, even if their reputations were and are above reproach.

After Sri Mulyani's resignation, it was Santoso who blithely announced that the legal process against her was being suspended, saying she had overreacted and should be grateful she was getting a "soft landing" and not being made a scapegoat.

But the case has refused to go away, perhaps because it is seen as a useful political weapon to keep Yudhoyono off balance. Only last month, the Anti- Corruption Commission (KPK) said it will name suspects in the case by December.

Still, it may not be so surprising that Golkar is casting around for a younger running mate to partner the 65-year-old Bakrie. He continues to trail badly in polls behind retired general Prabowo Subianto and ex- president Megawati Sukarnoputri.

More than 82 percent of Indonesians are under 50 years old, including 42 percent of voters between 18 and 30. Yet, like Bakrie, the only prospective presidential candidates so far are all familiar 60-something figures from the Suharto era.

Certainly the surprise victory of Solo mayor Joko Widodo, 51, in the recent Jakarta gubernatorial elections has reenergized those Indonesians who still cling to the belief that somewhere out there is a proverbial white knight waiting to be unleashed on the electorate.

That yearning is understandable when not only are parties failing to act as conduits for aspiring national leaders, but also so many new-generation politicians are being chewed up and spat out by the meat grinder that is Indonesian politics.

Look no further than jailed Democrat Party treasurer Muhammad Nazarrudin, 34, and Australian-born legislator Angelina Sondakh, 34, both convicted in a single graft case that has laid waste to Yudhoyono's party.

Forty-something Democrat chairman Anas Urbaningrum is under a similar cloud and may only be staving off the inevitable. Sports Minister Andi Mallarangeng, one of only four ministers under 50, has been so badly tainted by the affair that his future is also in doubt.

In this depressing climate, it is not at all clear whether Sri Mulyani could ever be tempted to return to such a shark pool from a job where she is appreciated and, ironically enough, brings great credit to Indonesia.

But while she has alluded to what she believes was the conspiracy of vested interests that led to her resignation, she has never had anything nasty to say about her country and returns frequently on business trips and to visit family and friends.

No doubt aware of the folly of burning bridges, Sri Mulyani is not nearly as apolitical as she may seem and, at the still-tender age of 50, there is time yet. After all, if 2014 is not the presidential election which sees the changing of the guard, 2019 surely will be.