Olivia Rondonuwu – High in the snow-capped mountains, the sight of tribesmen roaming in loincloths contrasts sharply with that of miners using hi-tech machinery to extract gold and copper ore at a huge US-owned facility in remote Papua province.

The heavily-guarded complex is the resource-rich country's biggest mine and has been a controversial presence for more than five decades – accused of environmental devastation and extracting huge wealth while giving too little back to a poverty-wracked area.

On a rare visit by the foreign media to Freeport McMoRan's Grasberg complex in Papua province, AFP saw first-hand the challenge of mining at one of the world's biggest gold and copper mines, where thin oxygen makes it difficult for workers to breathe.

The dangers that come hand-in-hand with the job were highlighted in May when a training tunnel collapsed, killing 28 miners.

The company now faces a fight with the state as it looks to extend its contract at a time when emboldened politicians are taking aim at foreign miners with measures forcing them to leave more of their profits in the country.

During the three-decade rule of dictator Suharto, which ended in 1998, Freeport had a relatively easy life and was showered with privileges.

But 15 years on, Indonesia is transforming into a freewheeling democracy and booming economy, with mining firms among foreign companies under scrutiny in what critics say is a climate of rising economic nationalism.

"There is the feeling that Freeport has taken a lot and has shared poorly with the local area," said a government source familiar with ongoing negotiations to extend the mining giant's contract.

Authorities have demanded foreign miners give up full ownership of their mining assets in the country, pay higher taxes on mineral exports and build smelters in Indonesia instead of shipping ore abroad to be processed.

"It's as if I have rented a house for 20 years, but 10 years after it has all been agreed the owner comes to you and says 'this is unfair, I must hike the rent'," said Tony Wenas of the Indonesian Mining Association.

'Overdue' action

Freeport vigorously defends its operations in Indonesia, noting it is the single biggest taxpayer to the state.

Ruby Seba, Freeport Indonesia vice president of technical affairs, said the company sought to get its contract extended to 2041 as it aims to build what it says will be the world's biggest underground mine at Grasberg.

"It wouldn't be fair for us to put aside money to invest and suddenly have our contract severed," he said.

For many, government action to get more back from foreign companies is overdue, with Freeport seen as a symbol of foreign exploitation in Indonesia.

"After more than 40 years of Freeport being in Indonesia, the tribes living in the area are still walking around naked," Juli Parorrongan, a spokesman for the Freeport workers' union, told AFP.

Union head Sudiro, who like many Indonesians goes by one name, added: "It is ironic that in an area that is at the heart of Freeport's success, most of its workers are still living in poor conditions and are dependent on loan sharks."

After years of criticism, the company has recently sought to be more open. Freeport says it has invested lavishly in Papua – building an airstrip, health clinics and housing in villages that have been neglected by authorities.

Nevertheless, many indigenous Papuan tribespeople still live in the undeveloped province in grinding poverty.

And there is little doubt over the environmental consequences of the Grasberg mine, which has produced vast quantities of grey "tailings" waste – material left over from ore separation – which stretch over an area of 230 square kilometers and have scarred the otherwise beautiful landscape of rugged Papua.

Freeport insists that the tailings are harmless and is undertaking a project to grow plants, such as tomatoes, in the waste to back up its claim.

Challenges from within

The controversy surrounding the complex has been heightened by a series of difficult episodes, from shooting deaths to industrial action. Since 2009, 15 people have been killed in a spate of mysterious shootings by snipers hiding out in the mountains.

Freeport buses have now been fitted with armor and bulletproof glass and travel in convoy for safety as they transport workers. The site is guarded by hundreds of military and police sentries.

While some point to separatists as being behind the shootings – an insurgency has been simmering in Papua since it was handed to Indonesia in 1969 – others believe it may be the military seeking to justify their presence and squeeze more money out of Freeport.

It also faces challenges from within. Thousands of contract workers staged a three-month strike in 2011 that crippled production, claiming they were the lowest paid Freeport workers anywhere in the world. The action ended when the company agreed to a pay hike.

Despite all the difficulties, Freeport is determined to stick by Grasberg, the crown jewel in its empire.

During a visit to Jakarta in May, Richard Adkerson, Freeport McMoRan's chief executive, described Grasberg as "a great asset for the country". "There's no thought of walking away from this. No thought at all," he added.

Despite voicing concerns, Freeport has signaled it is willing to comply with the government's demands, recently signing a memorandum of understanding to build copper smelters and agreeing to pay higher royalties on its exports.

And while its stance has become tougher, the Indonesian government is unlikely to want to scare off such a big taxpayer. Most observers have little doubt that Freeport's contract will be extended and the company is in Indonesia to stay.

"My guess is Freeport will get what they want, but there might be conditions," the government source said, adding that Indonesian politicians would be out to make money from any deal to fund campaigns for elections in 2014.

Students reject special autonomy plus bill

Jakarta Post - November 7, 2013

Nethy Dharma Somba, Jayapura – Hundreds of students from various universities in Jayapura, Papua, continued protesting against the Papua administration bill, also known as the special autonomy plus bill, which is still in draft form and will soon be submitted to an assistance team at the Home Ministry in Jakarta.

The students blocked the entrance to Cenderawasih University (Uncen) in Waena, Jayapura and forced the suspension of activities at the biggest campus in Papua.

"We returned home because the campus was blockaded, so we couldn't attend lectures today [Wednesday]," said Joni, a school of natural sciences student. The students planned another long march to Jayapura but were tightly guarded by police personnel from the Jayapura Police.

Earlier on Monday, thousands of students marched from Abepura to Jayapura in protest against the Papua administrative bill.

The students claim the bill, if passed, would not improve the welfare of Papuans but would follow the same path as Law No. 21/2001 on Papua special autonomy, which is considered to have failed to significantly improve the welfare of indigenous Papuans. The students pointed to the fact that Papua is ranked 32nd out of 33 provinces on the Human Development Index in Indonesia.

Besides opposing the bill, the students also demanded that 29 Uncen lecturers involved in the assistance team on the bill resign.

Rally coordinator Yason Ngelia said Uncen had failed to properly oversee the drafting of Law No. 21/2001 on Papua special autonomy and yet was involved once again in formulating and disseminating information about the special autonomy plus bill.

"Uncen must stop being involved in state crime. The Papua special autonomy plus bill will only kill Papuans," he asserted. Yason urged Uncen to explain the involvement of the 29 lecturers and warned that failure to do so would result in more protesters taking to the street.

Uncen lecturer Paul Homers criticized the behavior of students who blockaded the entrance to the campus in protest. "They can express their aspirations, but don't disrupt the teaching and learning process as it is also undemocratic," Homers told The Jakarta Post.

He said that the Papua administration bill was aimed at giving wider access to Papuans to improve their welfare. Homers acknowledged that there was a lack of dissemination of information about the bill among students and said it had led to them rejecting it due to a lack of understanding.

Separately, West Papua Governor Bram Octovianus Atururi held a meeting with Papua Governor Lukas Enembe in Jayapura to discuss the bill. The bill, if passed into law by the House of Representatives, will come into effect in both Papua and West Papua provinces.

'Free West Papua' launches PNG office

Post Courier - November 7, 2013

Gloria Bauai – The Free West Papua campaign PNG chapter office was launched yesterday by international campaigner Benny Wenda.

This entity based in Port Moresby will coordinate and centralise the awareness and advocacy efforts in Papua New Guinea on the West Papuan issue.

The core objective is towards creating and educating Papua New Guineans on the plight of the Melanesian people in West Papua under the oppressive Indonesia colonial rule.

"We have a voice but our voice has been silent for more than 50 years. The Papuan issue is a regional issue and we call on our brothers and sisters in PNG to work with us hand in hand," said Mr Wenda.

According to Patrick Kaiku, an academic at the University of Papua New Guinea, many Papua New Guineans are still illiterate on West Papuan issues and even its location.

Following the launching of the office, Mr Wenda with other West Papuan independence advocates will initiate a series of activities to mobilise Papua New Guinea grassroots and national political support to free West Papua from continued colonial subjugation.

He said the Free West Papuan campaign recognised that Papua New Guinea is the official battleground in the liberation of West Papua and has called upon Papua New Guineans to help in their fight for the right to self determination.

"We are one land, one culture, one people, and one ancestor. We are one people and we cannot do this without PNG," said Mr Wenda.

Ken Mondia, the director for NGO Partners with Melanesia, is challenging the government of Papua New Guinea to stop dealing with international issues and start looking to help their brothers and sisters who are separated from them only by a political border.

Mr Benny Wenda has travelled the world on the campaign for Free West Papua and countries in Europe, Africa and other Melanesian islands such as Vanuatu and Solomon Islands have recognised the campaign and have set up offices.

[Gloria Bauai is a UPNG journalism student.]

Alleged Papuan separatist killed in clash with TNI

Jakarta Globe - November 5, 2013

Banjir Ambarita – An alleged member of the Free Papua Movement (OPM), an outlawed militant separatist organization, was shot dead by soldiers in Papua's Puncak Jaya province on Monday morning.

"One member of the armed group was shot and a firearm was confiscated," Maj. Gen. Christian Zebua, the top Indonesian military (TNI) officer in Papua, told the Jakarta Globe.

Kiwo Telenggen, the alleged OPM member, was shot in front of the Mulia district offices and died instantly.

He had arrived there earlier in the day along with two unnamed companions to a take a civil service test, but suspicious local residents reported them to military authorities, upon which the men fired shots at nearby soldiers and fled, according to Papua Police spokesman Adj. Sr. Cmr. Sulistyo Pujo Hartono.

At the time of the incident, First Lieut. Yuni and a detachment of TNI soldiers were headed to a Bank Papua branch on Jalan Ampera, near the district offices. According to Sulistyo, Yuni realized his ATM card was missing and drove off to look for it with the other soldiers still in the vehicle.

Kiwo allegedly opened fire on the car but did not hit anyone. The soldiers returned fire and killed him, Sulistyo said. Soldiers found a military issued pistol on his person that had been sized by separatists in 2012, according to police.

Kiwo is an alleged member of the armed wing of the OPM, under the command of Goliat Tabuni, who is thought to have organized other recent attacks against TNI soldiers. The OPM usually operates out of Yambi. Kiwo's body was taken to Mulia hospital.

Thousands of students rally to reject Otsus Plus and provincial division

West Papua Media - November 5, 2013

Thousands of Papuan university and high school students led demonstrations in Jayapura on November 4, firmly rejecting attempts by Jakarta to impose the revived "new, improved" version of the failed Special Autonomy package, named "Otsus Plus".

A coalition of student organizations, collectively known as 'Students, Youth and People's Movement' (Gerakan Mahasiswa, Pemuda dan Rakyat Papua (GempaR Papua – the acronym GempaR literally translates as "Unarmed Insurrection" or "Uproar"), also called the actions to reject Jakarta's latest plans to divide Papua into 33 districts and three further provinces.

The movement has been started by students from seven different high schools, technical colleges and universities in Jayapura, including Cenderawasih University, UMEL MANDIRI, STIKOM, STT GKI I.S. KIJNE and the opposition to the imposition of Special Autonomy Plus. The rally was subject to several threats of violence from Indonesian security forces, who routinely deem all gatherings on peaceful Papuan aspirations as subversive and treasonous, according to rally sources.

The planned administrative divisions of Papuan land and districts under Otsus Plus have been widely interpreted as a colonial act by most Papuan civil society groups, according to Papuan observers, and seen as a covert method of further increasing the massive militarisation of Papua. Each new district automatically gains its own military and policy company (150 men for each), and each further province each gains their own battalions of Military (1500 men) and Police (1200 men), further adding to the estimated 45,000 troops in Papua, the most militarised area under Indonesian occupation.

"Special Autonomy 'Plus' will not change (the mind of) Papuans. Special Autonomy Plus is not a solution for indigenous Papuans. We firmly reject the plan for Autonomy Plus in Papua and West Papua, we reject it, Autonomy Plus and the New Re-districting are the same (still) killing Papuan people, not the solution to prosperity " said Hendrik Koroto, Demonstration Coordinator and student at the Faculty of Engineering.

As is standard with any demonstration in Papua, the Indonesian police attempted at least twice to violently prevent the students from peacefully continuing on the march, shadowing the gathering with several hundred heavily armed security personnel. The notoriously hardline Jayapura Deputy Police Chief Kiki Kurnia, again confronted the marchers in an effort to disperse them, threatening the use of heavy force on the students with a display of hardware including heavily armed police, water cannon and Barrucuda armoured assault vehicles. Intense negotiations took place for almost 15-20 minutes between organisers and Senior Police However, Jayapura Police Chief Alfred Papare agreed to allow marchers to continue their march using one lane to allow traffic to pass.

Whilst one group was negotiating with police, a large number of students unexpectedly took to the road, and several waves of students began to march on the Governor's office, holding hands and neighbours with a tight protective formation. Police dragged barbed wire in front of the Governor's office and blocked the main entrance with 5 police trucks, and several other vehicles, The student and civil society gathering then occupied the forecourt of the Governor's office for over two hours, during which time Governor Enembe agreed to meet a delegation from the student representatives. No arrests were reported but threats were allegedly made against keynote speakers and rally organisers, according to witnesses who spoke with West Papua Media stringers.

[West Papua Media editors, with local stringers.]

Papuan students protest over new special autonomy

Tempo.co - November 4, 2013

Cunding Levi, Jayapura – Thousands of Papuan students marched to protest against the Draft Bill on Special Autonomy Plus. The protesters marched for 30 kilometers from Abepura to Jayapura, carrying banners and shouting "Special Autonomy Plus bring no change to Papuans."

Acting Secretary of the Papua Province Hery Dosinaen, stated that students who rejected the Special Autonomy Plus merely implementing their rights of democracy. However, he mentioned that the Draft Bill aims to bring about Papuan identity and dignity.

"[The Draft Bill] can accelerate development in Papua and seek to reconcile social and political issues," he said. Moreover, Hery said that the 2001 Special Autonomy Law is no longer relevant to current situation of the region.

Special Autonomy Plus will later grant authority to the Governor of Papua as an extension of the central government. The authority includes assembling cooperation with foreign parties, without central goverment's involvement.

Jakarta rally rejects creation of new administrative area in West Papua

Suara Papua - November 4, 2013

Oktovianus Pogau, Papuan, Jakarta – On Monday afternoon scores of youth and students from the Papua Student Alliance (AMP) held a peaceful demonstration at the House of Representatives (DPR) building to declare their opposition to the creation of 33 new operational areas (DOB, new administrative areas) in Papua.

Elias Petege, one of the speakers said that the majority of ordinary people in Papua and West Papua provinces do not want the creation of 33 new DOBs, including three new provinces, as agreed to recently by the DPR.

"The creation of 33 DOBs in the land of Papua will not answer the problems. We explicitly reject this plan. The DPR must cancel the RUU [draft law] that has been drafted", said Petege in a speech in front of the DPR building.

According to Petege, with the creation of new administrative areas, it will in fact allow for the establishment of more military complexes such as district military commands, battalions, sub-regional military commands and sectoral, district and regional police administrations, which will proliferate and threaten the existence of indigenous Papuans.

"We explicitly call in the DPR and Commission II [overseeing regional autonomy] to cancel the plan. The [political] elite who are working for this decentralisation are in fact seeking money, jobs and positions, not for the interests of the ordinary people", asserted Petege.

"Decentralisation will further marginalise the Papuan people. Right now the population of indigenous Papuans and non-Papuans are the same, what will happen is there is decentralisation. Migrants will continue to flow into the land of Papua, and of course Papuans will be further pushed aside from their own traditional lands", said Jigibalom.

According to Jigibalom, decentralisation in Papua will only destroy the identity of indigenous Papuans and further open up opportunities for military businesses.

"We are not convinced that decentralisation is in the interests of indigenous Papuans. Decentralisation will be a disaster for indigenous Papuans and because of this we strongly oppose the plan", said Jigibalom in a speech.

Satisfied with giving speeches in front of the DPR, at around 11.30am the protesters continued the action at the offices of the Ministry of Home Affairs (kemendagri) on Jl. Merdeka Barat in Central Jakarta.

In front of the home affairs ministry, the protesters, who came from Jakarta and the West Java cities of Bandung and Bogor, again declared their opposition to the creation of 33 new DOBs.

Frans Tomoki, one of the speakers, called on the home affairs minister (mendagri) not to accept the DPR recommendation for the decentralisation of Papua because it was decided unilaterally and is in the interests of the political elite.

"At the DPR we called on Commission II to withdraw the RUU creating 33 DOBs, and here at the Kemendagri we are calling on the mendagri to reject the unilateral creation of new regions. The majority of Papuan people have explicitly rejected decentralisation" said Tomoki.

Tomoki added that decentralisation would in fact give rise to new conflicts between local communities, including between the people and the central government.

"Already there are many examples of new regencies that have failed. And always end with tribal wars, this is a consequence of the creation of new regions that are done without coordination with local communities", asserted Tomoki.

After giving speeches for around 30 minutes, representatives from the protesters were invited to meet with several home affairs department officials and to present their position and demands. After meeting for around 1 hour, the representatives left the home affairs ministry offices. Action coordinator Jhon Wakerkwa then read out a statement and the protesters disbanded peacefully.

[Slightly abridged translation by James Balowski.]

Jakarta rally rejects creation of new administrative area in West Papua

Suara Papua - November 4, 2013

According to Jigibalom, decentralisation in Papua will only destroy the identity of indigenous Papuans and further open up opportunities for military businesses.

In front of the home affairs ministry, the protesters, who came from Jakarta and the West Java cities of Bandung and Bogor, again declared their opposition to the creation of 33 new DOBs.

Tomoki added that decentralisation would in fact give rise to new conflicts between local communities, including between the people and the central government.

[Slightly abridged translation by James Balowski.]

Human rights & justice

Indonesian Diaspora regrets attack on Yogyakarta meeting

Jakarta Post - November 2, 2013

Jakarta – Indonesians living abroad under the grouping, the Indonesian Diaspora, have signed a petition asking law enforcers to bring members of the Anti-Communist Front (FAKI) to court over last week's attack on a meeting organized by relatives of victims of the 1965 communist purge in Yogyakarta.

"Firm measures should be taken against the head of FAKI and its members, for they cited hate speech, broke up a meeting and were violent toward meeting participants," the Indonesian Diaspora stated in a press release sent to The Jakarta Post on Saturday.

The diaspora stated that it had sent the petition to President Susilo Bambang Yudhoyono and all state institution leaders. It also urged the police to remain impartial and arrest the attackers to uphold justice.

Figures like senior journalist Aboeprijadi Santoso, who currently resides in Amsterdam, the Netherlands; researcher and political scientist Burhanuddin Muhtadi, who is currently pursuing a PhD in Canberra, Australia; Nahdlatul Ulama (NU) scholar Ahmad Sahal, who is studying toward a doctoral degree in the US, and campaigner Nursyahbani Katjasungkana are among the petition's 137 signatories.

Dozens of FAKI members disrupted a meeting in Yogyakarta at which the families of the victims of 1965 were gathered and proceeded to and attack some of them, injuring three people. FAKI head Burhanuddin ZR argued that the meeting had a hidden agenda to resurrect the communism in Indonesia and, therefore, needed to be dispersed.(dic)

Sexual & domestic violence

Gorontalo Police name key rape suspect

Jakarta Post - November 8, 2013

Gorontalo – A police officer identified by the initials IG, who is believed to be the key suspect in the rape of a 17-year-old girl, has been officially named a suspect by the Gorontalo Police.

Gorontalo Police chief spokesman Adj. Sr. Comr. Lisma Dunggio said IG, a first police inspector adjutant, had also been detained at the Gorontalo Police headquarters since Nov. 4 after undergoing an examination

"Based on the examination, investigators concluded that IG had molested, but did not rape the underage female," Lisma told The Jakarta Post on Wednesday. The victim had mentioned that IG, who was stationed at the Mootilango Police in Gorontalo regency, was the key suspect who initially raped her in July this year.

The rapes, according to the victim, took place between July and October this year and involved a group of 13 people, consisting of nine policemen, three security guards from the Tolangohula sugar plant and a civilian. The victim has claimed that she was often threatened by the perpetrators if she reported them to the police.

However, Lisma refuted the victim's claims. Based on the examination, added Lisma, IG said that he and the victim were alone when they carried out the sexual acts, which he claimed were consensual.

"The victim may claim that she was raped, but that needs strong evidence. Investigators did not find indications of rape," said Lisma. The Gorontalo Police have also named five other people as suspects in the case.

Family of rape victim feels as if under surveillance

Jakarta Post - November 2, 2013

Syamsul Huda M. Suhari, Gorontalo – The family of an alleged gang-rape victim has said it believed unidentified people have been watching them since the case, which implicates nine policemen and four civilians, was reported.

One of the victim's uncles said that almost every day he saw strangers monitoring the girl's family home. "At first, we were not suspicious but because it happened repeatedly, we concluded that someone was watching us," he told The Jakarta Post on Friday.

Several days ago, he added, not long after a team from the National Police Commission (Kompolnas) visited the victim, neighbors reported the presence of a car that had been parked not far from her house since early that morning.

"The car was a black Rush with tinted glass. The driver left the scene in a hurry after being discovered," the uncle said.

Most of the suspicious incidents occurred during the night. Unknown people would ride slowly past the house on motorcycles trying to see into the property, he added, with their faces hidden by helmets. "But I can confirm that they are strangers, not local residents," he said.

After the case was reported to police in early October, the girl and her family decided to move to a relative's house, some two hours drive from their home.

The girl's father said he was forced to make the decision for the sake of security. "A number of the suspects live near our house and nobody has guaranteed our safety," he said.

During the family's move, he claimed to have spotted a bentor (motorized tricycle) driver who was looking for where they were staying. "After spotting the house, the driver then made a phone call to someone, as if he was submitting a report," he said.

The family, however, said it had not received any direct threats. "However, because I feel that I am being watched all the time, I am afraid to leave the house alone," he said, adding that other members of his family were also affected by the surveillance.

Commenting on the matter, Gorontalo Police chief spokeswoman Adj. Sr. Comr. Lisma Dunggio said she was not aware of any suspicious monitoring. "We have no idea about it; there are no orders to keep them under surveillance," she said.

"The police are still investigating the other alleged rapists as revealed by the victim to our detectives." She added that the police were also helping to provide the victim with psychological counseling.

So far, Gorontalo Police have named only one policeman and three civilians as suspects. However, Lisma said the suspects had not been charged with rape but molestation. She also said their files had been separated as different crime scenes were involved.

Eight other policemen are still being questioned as witnesses, including one whom the victim accused as being the first man to rape her together with three other policemen in July. Lisma said the police had yet to find strong-enough evidence to arrest the eight officers.

Sexual assault cases rife in Indonesian schools

Jakarta Globe - November 1, 2013

SP/Fana FS Putra – Cases of sexual assault and harassment of students at the hands of their teachers continue to come to light, with school authorities failing to act on many complaints.

A 12-year-old elementary school student in East Jakarta, identified as A.P., told the Jakarta Globe that she was repeatedly assaulted by her teacher, and was now traumatized and afraid to go to school.

A.P. said her math teacher K.G. had for the past six months often touched and kissed her neck, hands and breasts. "I was often kissed, hugged and touched. I fought and cried, but the teacher just laughed at me," the girl said at her house on Wednesday.

Holding back tears, she told of the drawn-out ordeal, in which her teacher would tell her to stay put when other students were leaving for home. After sexually assaulting her, A.P. said, the teacher would threaten her, telling her not to report his behavior to anyone.

She said she wasn't the only student being assaulted by the teacher, but another student by the initials S.F. was also a victim.

"I'm afraid to go to school now. I want to move to another school. I'm afraid," she said, adding that when she reported the incident to her home room teacher, she was told that the math teacher was only showing his affection for his student. "The home room teacher said that Pak K.G. kissed me because he was fond [of me]," she said.

The victim's mother I.S. said she reported the pattern of assault to the school, but staff responded to it lightly, saying that what the teacher did was normal. "It's not normal at all. Imagine, my daughter cried hysterically. This means she no longer feels comfortable with her teacher's behavior," I.S. said.

A similar incident involving a contract-based teacher, identified as M.S., was reported this week in Bandung, West Java. In the Bandung case, the teacher is suspected of sexually harassing or assaulting students for at least six years.

Agus, a parent of a student at the school, reported his daughter's teacher to his neighborhood watch chief after a community meeting, saying that M.S. had been harassing his daughter since 2012.

He said authorities had given M.S. a room to sleep in at the school because he lived far from work, and that the alleged harassment was committed in that room. Agus said he had reported the incident to school authorities but his report fell on deaf ears.

After news of M.S.'s alleged sexual harassment spread, another case emerged. The victim's father said his daughter was also harassed by the same teacher about six years ago.

"With a victim who is now in senior high school, it's believed that the teacher has been doing this since 2007," Agus said.

Labour & migrant workers

Labor unions victory over Jokowi, companies

Jakarta Post - November 7, 2013

Jakarta – The Jakarta State Administrative Court (PTUN) ruled in favor of labor unions, which demanded that seven companies commenced paying their workers in line with the 2013 provincial minimum wage (UMP) regulation.

The companies still pay their workers below the minimum wage of Rp 2.2 million (US$193.6) stipulated in a special decree issued by Jakarta Governor Joko "Jokowi" Widodo.

The companies were PT Kaho Indah Citra Garmen, PT Misung Indonesia, PT Myungsung Indonesia, PT Kyeungseng Trading Indonesia, PT Star Camtex, PT Good Guys Indonesia and PT Yeon Heung Mega Sari.

Jakarta Legal Bureau head Bayu Mahendra said, as quoted by kontan.co.id, the provincial government would issue an appeal over the ruling.

Nine suspects detained in wake of labor rally brawl

Jakarta Globe - November 6, 2013

Bayu Marhaenjati – Police said on Monday that they had detained nine suspects in connection to a South Cikarang brawl between demonstrating workers and paramilitary group Pemuda Pancasila during last week's general strike.

"Ten people have been arrested," said Jakarta Police spokesman Sr. Cmr. Rikwanto. "Six were arrested [at the crime scene], three were arrested in Abacus and one in Jakarta." A tenth suspect was arrested and released pending trial because he is accused of destroying a motorcycle rather than assault.

Rikwanto would not elaborate on the identities of the suspects, but he did say that they included both workers and Pemuda Pancasila members.

Rikwanto said that twenty people were injured in the clash, which involving 15,000 workers and 500 members of Pemuda Pancasila. Afterwards, four people were admitted to Hosana hospital in Cikarang with serious injuries. Three remain hospitalized.

The Pemuda Pancasila members said they were angry at the strikers for threatening industries that provided jobs in the community, according to Rikwanto.

The organization is known for violent and thuggish incidents. In September, members attacked the Depok District Court in West Java.

Jakarta governor defends minimum wage policy amid protests by labor

Jakarta Globe - November 6, 2013

Lenny Tristia Tambun – Jakarta Governor Joko Widodo's decision to only allow for a slight increase in terms of the capital city's minimum wage regulation prompted dissatisfaction among labor unions, who over most of last week rallied for the city government to approve a monthly minimum wage of Rp 3.7 million ($325).

Confederation of Indonesian Workers (KSPI) president Said Iqbal said Joko did not fully understand the elements used to determine the components of the decent living index (KHL) in the calculation of the minimum wage.

"The government used components determining a decent living in 2013, but set the minimum wage for 2014 at Rp 2.4 million," he said in Jakarta on Monday, adding that the Rp 3.7 million demanded by the labor union had been based on its calculations for 2014.

Responding to complaints and protests by workers, Joko said the wage increase had not been significant because workers in the capital are also supported by the Jakarta Health Card (KJS) and Jakarta Smart Card (KJP) programs, which gives them free access to health care and education.

He emphasized that such programs are not offered in other regions, which may result in other regions having a higher minimum wage compared to the capital. As a result, Joko called on workers to consider the different circumstances and accept his policy.

"Do note the difference [between Jakarta] and other regions. Here, there are public services offered for free, such as the KJP and KJS. That alone will already cut down their monthly spending," Joko said at City Hall on Monday.

He highlighted the fact that the local government was also making extra efforts in providing workers with decent residential space by means of fully furnished low-cost housing.

In addition to that, he said the city government is also planning to acquire thousands of busses in a bid to improve public transportation, which will offer a low-cost alternative.

"Those two elements were included in the calculation of the components of a decent living. We intend to provide them [with such services] in order to reduce their living expenses," Joko said.

"Last year, I increased their minimum wage by nearly 50 percent because there had been a deficit and because it didn't meet the decent living standard. If I were to increase the wage to Rp 3.7 million, investors would leave Jakarta."

Joko said protest against his minimum wage policy was something he would have to face in his efforts to balance the needs of businesses and workers.

North Sumatra workers oppose 2014 minimum wage

Associated Press - November 3, 2013

Apriadi Gunawan, Medan – The Association of North Sumatra Workers has voiced its opposition toward the 2014 monthly minimum wage of Rp 1,505,850 (US$134), which is a 10 percent increase from this year's Rp 1,305,000.

"The prices of staple foods and other goods are increasing by at least 30 percent. Therefore, we demand a 50 percent increase and reject anything below that figure," the association head Minggu Saragih said on Saturday.

He said the association would enact massive strikes that would cripple the province's economic activity and also called on its 1.6 million members to stop paying motorcycle tax until the governor revised his decision on the minimum wage.

Commenting on the minimum wage, North Sumatra Governor Gatot Pujo Nugroho said the decision was taken following consultations that involved all related stakeholders. "The decision was made after careful and thorough consideration," he said.

North Sumatra's workforce and transmigration agency head Bukit Tambunan said without further elaboration that it was difficult for them to meet the workers' demand of a 50 percent increase.(dic)

Wages rise as strike goes on

Jakarta Post - November 2, 2013

Jakarta – The Manpower and Transmigration Ministry announced on Friday that 12 provinces – including several hosting labor-intensive industries – had increased their 2014 minimum wages, in a move that businesses say could hurt the country's investment climate.

"We are still waiting for reports from provinces that have yet to raise their 2014 minimum wages for workers. The provinces are still waiting for approval from their respective governors," Manpower and Transmigration Minister Muhaimin Iskandar said in Jakarta on Friday.

The 12 provinces are Central, West and South Kalimantan, Jambi, Southeast Sulawesi, West Sumatra, Bangka Belitung, Papua, Bengkulu, West Nusa Tenggara, Banten and Jakarta

According to the ministry, Jakarta has the highest monthly minimum wage at Rp 2.44 million (US$211), although the Bekasi administration announced that it had raised the minimum wage by 40 percent from Rp 2.1 million to Rp 2.9 million.

The wage increases in each province vary, depending on indicators such as the inflation rate, economic growth, workers' purchasing power, basic cost of living and employers' ability to pay.

On Friday, around 3 million workers in 20 provinces and 150 regencies continued their nationwide strike, which has paralyzed activities in around 40 industrial areas in Java, Sumatra, Sulawesi and Kalimantan.

Their demands include a 50 percent hike in their minimum wages, which should be implemented simultaneously in January 2014, and an end to job outsourcing and the contractual system.

They also want the government and House of Representatives to immediately pass the bill on housemaids into law and revise the newly enacted law on mass organizations, which they claim has been devised to silence labor unions.

The Jakarta administration office was surrounded by thousands of protesting workers on Friday when the administration announced a 11 percent increase in the province's minimum wage from Rp 2.2 million to Rp 2.4 million.

The Jakarta Remuneration Council welcomed the minimum wage increase, saying that it had no problem with it as the increase was not much different from its recommendation of Rp 2.3 million. "It is not a problem for us," Asrial Chaniago of the Remuneration Council said on Friday..

The workers, however, were disappointed by the decision as they had urged the administration to raise the monthly wage to Rp 3.7 million.

"Workers will challenge the administration's decision in the State Administrative Court [PTUN] and they will continue to stage protests in front of the City Hall until their demand is met," Said Iqbal, chairman of the Confederation of Indonesian Workers Union (KSPI), said.

Responding to the workers' intention to file a lawsuit, Jakarta Deputy Governor Basuki "Ahok" Tjahaja Purnama said that he welcomed the workers decision to challenge the administration's decision at the PTUN.

The Riau Islands provincial administration increased the 2014 minimum wage to Rp 1.6 million, up from the current Rp 1.3 million per month. A demonstration demanding the government increase the minimum wage continued on Friday in Batam. A number of industries decided to shift their operations to the evenings to prevent their workers from joining the strike.

The workers who gathered in front of the Batam administration called for their demand for a 50 percent rise from the current Rp 2 million to be accepted.

Indonesian Employers Association (Apindo) chairman Sofjan Wanandi said the Jakarta administration's decision to raise the minimum wage would only add to the burden of small-scale businesses.

"Last year, the small businesses requested a waiver because they could not afford to pay [increased wages]. This year, they will likely ask for another waiver or they will be forced to shut," he said.

Sofjan pointed out that investors had already threatened to withdraw their capital from Indonesia because they were no longer able to pay workers' wages. Investors, he said, would prefer to move their investments to other countries where they could find cheaper staff.

Sofjan said many investors had left the country in the first six months of 2012 due to the unstable investment climate, which caused around 200,000 workers to lose their jobs.

"We are still calculating the exact financial losses suffered by businesses due to the two-day nationwide strike [on Thursday and Friday], but we predict that they will amount to hundreds of billions of rupiah," he told The Jakarta Post on Friday.

Activities at industrial estates in Pulogadung and Cakung in Jakarta and surrounding areas were suspended on Thursday as tens of thousands of workers stayed away from their workplaces and staged strikes to demand better conditions.

Major manufacturers, such as home appliance maker PT Maspion in West Cikarang and carmaker PT Suzuki Indomobil in Tambun, both in Bekasi, halted production to allow their workers to take part in demonstrations. (hrl)

Workers protest 11% wage hike

Jakarta Post - November 2, 2013

Corry Elyda, Jakarta – Thousands of workers descended on City Hall to protest a gubernatorial decree that raises the 2014 minimum wage by 11 percent, saying the meager increase constituted an economic injustice.

Demonstrators, coming mostly from industrial estates in Cilincing, Pulogadung and Cakung, forced their way onto City Hall grounds and threatened not to leave until the governor retracted or annulled the decree.

Jakarta Labor Forum secretary-general and demonstration leader Muhammad Toha said on Friday that they were disappointed with Governor Joko "Jokowi" Widodo for signing off on a monthly minimum wage of Rp 2.4 million.

Toha said the wage hike was too small, given the daily needs of laborers. "We will keep fighting, We will stay overnight to protest here until the governor changes the decree," he said on the sidelines of the demonstration.

Toha said the workers were optimistic that Jokowi would retract the decree. "We have so far not considered challenging the decree in the State Administrative Court."

Having received two alternative wage hike proposals put forth by the city's wage committee on Thursday, Jokowi decided to raise the minimum wage by 11 percent to Rp 2,440,331 (US$217) per month starting January 2014 from the current Rp 2.2 million, as was originally proposed by the city administration's representatives in a tripartite plenary session held by the labor committee.

At the session, employers had proposed a wage hike to Rp 2,229,000, while the workers walked out after their proposal of Rp 2.9 million was turned down.

Chairman of the Confederation of Indonesia Prosperity Labor Union (KSBSI) Mudhofir criticized the governor, saying he had shown no political commitment to improving the welfare of workers in the city.

"The governor's decision to raise the minimum wage by 11 percent is a humiliation for workers and other low-income people in the city, as the Bekasi municipal administration has committed to raising its minimum wage by 40 percent to Rp 2.9 million in 2014 from the current Rp 2.1 million. It is impossible that the cost of living is higher in Bekasi than in Jakarta," he said.

He said that representing its members in the Pulogadung and Cakung industrial estates and the Tanjung Priok port, the KSBSI unit in the city would file a lawsuit against the governor over the decree.

Jakarta workers had earlier demanded the governor raise the minimum wage by 68 percent to Rp 3.7 million, due to higher cost of living mainly driven by climbing commodities prices triggered by the fuel price hikes in June this year and by increasing transportation and housing rent prices.

Meanwhile, Asrial Chaniago, representing the Indonesian Employers' Association (Apindo) in the city's wage committee, said most employers in the city would comply with the gubernatorial decree but small-scale enterprises would likely request a deferment from the wage hike because of the economic difficulties they were facing.

"However, increasing the minimum wage by 11 percent is feasible for big companies, and the mechanism to propose a deferment is complicated," he said.

Asrial said that the amount of the proposed hike was reasonable. "The wage hike is acceptable because it is in line with the inflation rate, the basic cost of living [KHL] survey and worker productivity," he said, adding that most workers were not very productive since they lacked higher education.

Asrial said the employers were generally glad that Jokowi and Deputy Governor Basuki "Ahok" Tjahaja Purnama were prepared to handle the wage hike issue so they would not be handcuffed by workers' unrealistic demands.

The deputy chairman of the Jakarta office of the Indonesian Chamber of Commerce and Industry (Kadin), Sarman Simanjorang, said increasing the minimum wage to Rp 3.7 was unreasonable.

"The workers should be wise and realize that it is neither in their employers' interest nor in their own," he said.

Sarman warned that at least 7 million people were already unemployed and that with an excessive wage increase downsizing, layoffs and factory lock- outs would be inevitable.

Meanwhile, Jokowi said he could not do anything but take one of the two options that had been proposed by the wage committee.

He said it was impossible for him to fulfill the workers' demands, which he called unrealistic. "All small-scale enterprises and labor-intensive companies will collapse if the minimum wage was raised to Rp 3.7 million as has been demanded by workers," he said.

However, Ahok said the city government would provide workers and their families with cheap public transportation, a free health care program and a free education scheme to help improve their social welfare.

Despite workers' boycott, council proposes minimum wage

Jakarta Post - November 1, 2013

Sita W. Dewi, Jakarta – The Jakarta Remuneration Council gave Governor Joko "Jokowi" Widodo two provincial minimum wage options for 2014 despite labor union representatives refusing to attend the tripartite meeting on Thursday.

"Employers proposed Rp 2.29 million [US$203] whereas the administration put forward Rp 2.44 million. The governor will have to approve one of the options tomorrow," Jakarta Manpower and Transmigration Agency head Priyono said.

The options were decided on after a lengthy five-hour meeting that was attended by 23 representatives from the administration and local businesses. The seats for the seven workers' representatives were empty.

Employers' representative Bambang Adam said the amount employers proposed was adequate as it was "based on the basic cost of living components [and] in accordance to official surveys."

Bambang was referring to the 60 basic cost of living components (KHL) stipulated in Presidential Instruction No. 9/2013, which are a requirement in the deliberation of the provincial minimum wage.

Workers, however, believe that the basic cost of living should be set at Rp 2.7 million. In support of this – along with other work-related demands – workers across Greater Jakarta joined the nationwide two-day strike and boycotted the tripartite meeting, which had been originally scheduled for Wednesday.

Jokowi approached workers protesting on Jl. Medan Merdeka Selatan, just outside City Hall, at at 5 p.m. on Thursday and invited their representatives to speak to him, but the workers said no leaders were present to attend the discussion.

Jokowi returned to his office and waited for an hour before leaving through a side entrance on Jl. Kebon Sirih, saying "I have many other things to do."

Rally coordinator Tarmizi said that workers wanted no less than Rp 2.7 million. "We hope the governor delays the decision until an agreement is reached," he said.

Employers said they hoped the central government would find a solution to quell the annual saga. "This affects productivity, which drops by around 15 percent this time every year due to rallies and strikes," he said.

Previously, Jokowi had said the central government should propose a law on remuneration to avoid an annual recurrence of the dispute. "Last year it was the employers who walked out of the meeting, now it's the workers. This cannot happen every year," he said, explaining that it might harm the city's image and potential investors.

The Remuneration Council 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.

Last year, the governor made his decision at the 11th hour, setting the 2013 provincial minimum wage at Rp 2.2 million, a 44 percent increase from 2012's level of Rp 1.5 million.

A ministerial decree on minimum wages requires the provincial governments to decide on the new wage two months before the new policy would take effect, which is on Jan. 1 each year. The Jakarta Remuneration Board set the basic cost of living (KHL) at Rp 1,978,789 last year.

Businesses paralyzed

Jakarta Post - November 1, 2013

Rangga D. Fadillah, Jakarta/Bekasi – Activities at industrial estates in Pulogadung and Cakung in Jakarta and surrounding areas were suspended as hundreds of thousands of workers stayed away from their workplaces and staged strikes to demand better conditions.

Major manufacturers, such as home appliance maker PT Maspion in West Cikarang and carmaker PT Suzuki Indomobil in Tambun, both in Bekasi, halted production activities to allow the workers to demonstrate.

"Today, most workers at this company stopped working. Only a few of us worked to ensure that vital machinery kept running," said Nasan Indra Wijaya, a union member who works at PT Maspion.

The strike will lead to an about 70 percent loss in production, he claimed. However, he said he was unsure whether the strike would continue until Friday.

The streets of the MM2100 industrial estate in West Cikarang were packed with thousands of workers, many of them wearing the black jackets of the Indonesian Metal Workers Federation (FSPMI).

In the Nusantara Bonded Zone (KBN) in Cakung, East Jakarta, several companies, such as PT Kaho and PT Doosan Cipta Busana Jaya, let their workers leave for the day at 10 a.m. to prevent unions from sweeping the premises for workers to force them to demonstrate.

"From 150 companies in this area, only 10 of them sent all their workers to join the rally, the rest only sent 100 to 200 representatives and maintained production activities," said KBN spokesperson Solwati.

Employers at the industrial estate have yet to calculate financial losses caused by the demonstration, but they said they would lose millions of work hours if the strike lasted until Friday.

In South Tangerang, thousands of workers blocked Jl. Raya Serpong at the Bumi Serpong Damai intersection. A similar thing happened in Tangerang municipality, where at least 3,000 workers from FSPMI blocked off Jl. Gatot Subroto in Jatiuwung and made speeches.

"Eliminate outsourcing and let workers enjoy better welfare," one of the workers shouted through a microphone from the back of a pickup.

Access to the toll road at the Balaraja tollgate was also blocked by workers for hours. Vehicles from Jakarta heading to Tangerang also could not exit the toll road as the exit ramp was occupied by workers.

The demonstrators threatened to continue demonstrating until they received assurances from the Indonesian Employers Association (Apindo) about the 2014 monthly wage. They demanded a Rp 3.7 million (US$329) monthly wage for 2014. The same demand was also made by workers demonstrating in Bogor.

The police deployed around 17,000 personnel to secure the rallies in Jakarta and surrounding areas, according to Jakarta Police spokesman Sr. Comr. Rikwanto. He also said that a clash had broken out between workers and members of Pemuda Pancasila (PP) youth organization near PT Schneider in Cikarang.

"Members of PP blocked the workers' way because they thought that if the workers continued with their demands, they would lose their livelihood in waste management and food stalls," he revealed. Eight people were injured and 18 motorcycles were damaged in the clash.

In response to the demonstrations, Apindo reiterated that the workers' demand for a 50 percent wage increase was unrealistic and that many foreign investors would relocate to other countries if the government accepted the workers' demand.

"The nationwide strike has caused not only huge losses to employers but also discouraged foreign investors to maintain their investments in the country. The workers' demands are not realistic," said Apindo chairman Sofjan Wanandi.

Manpower and Transmigration Minister Muhaimin Iskandar advised workers to consider their companies' ability to increase wages or whether it would lead to bankruptcy and layoffs.

"It doesn't mean that we reject the workers' demand, but we want them to understand the situation so that [the demand] does not lead to bankruptcy. Companies, the government and workers have to work hand-in-hand," he said in a formal statement.

He also promised that the government would encourage companies to grow so that they could offer good salaries. He emphasized that the condition of each company was different, with some of them being financially strong and some were weak.

"Thus, communication between companies and workers is very important so that the workers don't feel cheated. Businesspeople have to ask workers to contribute to developing their businesses," said Muhaimin.

Yuli Trisuwarni from Depok, Theresia Sufa from Bogor and Multa Fidrus from Tangerang contributed to the story.

Workers' demands

1. 50 percent hike in minimum wage
2. Simultaneous implementation on Jan. 1, 2014, of the national healthcare program
3. Phasing out of outsourcing and contractual system
4. Endorsement of the bill on housemaids
5. Annulment of the newly endorsed law on mass organizations, thought to threaten labor unions' existence

Massive strike nearly cripples industries in Batam

Jakarta Post - November 1, 2013

Fadli and Andi Hajramurni, Batam/Makassar – A widespread labor strike on Thursday paralyzed activities at some 1,000 foreign investment companies in Batam, Riau Islands, as union members conducted door-to-door sweeps in 26 industrial areas.

The move by unionists forced industrial area managements to deploy members of youth organizations to safeguard their compounds.

Members of Pancasila Youth (PP), for example, guarded the entrance to Tunas Industrial Zone in Batam Center while the Federation of Indonesian Metal Workers Union (FSPMI) staged a rally in front of the industrial area.

Meanwhile, workers tried to bring down the entrance gate to Executive Park Industrial Zone. A worker for Siemens fabrication yard, Yudi Karya, said the firm's employees were given the day off in case of any fall outs due to the strike that might have disrupted the company's activities.

"We are also afraid to go to work wearing our uniforms because the unionists will demand us to take part in the strike. That's why we were given the day off."

FSPMI members initially planned to blockade Hang Nadim International Airport and a number of ports. Security personnel, however, were deployed to prevent such blockades from taking place.

It was estimated that the strike in Batam had caused losses of some US$20 million per day, said Nada Faza Soraya, acting chairwoman of the Riau Islands chapter of the Indonesian Chambers of Commerce and Trade (Kadin).

Workers all over Indonesia are demanding a 50 percent minimum wage increase for 2014. They are also demanding contract employment and the outsourcing system to be wiped out. Workers in Batam, for example, demanded Rp 3.7 million (US$328) instead of Rp 2.17 million for 2014.

In Makassar, South Sulawesi, some 1,000 workers and university students demanded Rp 2.25 million for 2014. "It is just enough to eat every day, while we have to borrow money every month for other needs. The conditions of workers with families are even worse," said worker Asriani.

Quoting data from the Central Statistics Agency, workers said that companies in South Sulawesi had enjoyed profit growth for several years while wages remained flat.

Despite the rally, activities at factories in the Makassar Industrial Zone remained normal because only some workers took part in the strike.

In Gorontalo, workers affiliated with FSPMI urged the provincial administration to revise the 2014 minimum wage from Rp 1,425,000 to Rp 1,762,000.

The Jambi chapter of the Confederation of Indonesian Labor Union (KSBI) demanded Jambi Governor Hasan Basri Agus review the province minimum wage of Rp 1.5 million and raise it to Rp 1.6 million. Hasan promised he would review the workers' demand, emphasizing that the minimum wage had gone through the remuneration council.

Papua Governor Lukas Enembe said the province minimum wage was set at Rp 1.9 million, although he admitted that the ideal figure was more than Rp 2 million. "We will review the figure because prices in Papua are very high," he said.

Meanwhile in Medan, members of the Indonesian Labors' Union (Serbundo) fielded a slightly different demand by calling on owners of oil palm plantations grouped in the Roundtable Sustainable Palm Oil (RSPO) to allow the existence of labor unions in their companies.

Oil palm plantations often violated labor regulations because there were no labor unions supervising industrial relations in the companies, Serbundo coordinator Herwin Nasution said. He said that Serbundo would stage a rally during an RSPO meeting on Nov. 11 in Medan.

[Syamsul Huda M.Suhari, Jon Afrizal and Nethy Dharma Somba contributed to the story from Gorontalo, Jambi and Jayapura.]

Massive wage hike may send jittery investors fleeing Indonesia

Jakarta Post - November 1, 2013

Mariel Grazella, Jakarta – Employers called Thursday's workers' strike "counter-productive". Instead of bringing workers closer to higher pay, the move was pushing investors away along with their job prospects.

Thousands of workers took to the streets to demand higher minimum wages. In West Java's manufacturing hubs of Bogor and Depok, at least 50,000 workers rallied to demand a minimum wage increase of 68 percent to Rp 3.7 million (US$329.3) per month.

Workers conducted similar strikes in 2012, which, for example, ended with Jakarta raising this year's minimum wage by 44 percent to Rp 2.2 million a month. The strikes this year and the last were on grounds that costs of living had spiraled up due to inflation.

In response to the labor strikes, Indonesia Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto said "in principle, the business community is not against an increase in the minimum wage."

"But the raise workers ask for should be reasonable," he said, adding the workers' demands were "unrealistic". "Businesses might as well shut down operations under such burdens," he said.

Footwear Manufacturers Association (Aprisindo) chairman Eddy Widjanarko said at least 48 investors, mostly from South Korea and Taiwan, had relocated to other Asian countries since last year, thanks to the wage hikes approved last year.

Another minimum wage increase, if approved, would also disrupt the industry's business performance, he said. "We are looking forward to 20 percent growth [next year], but if strikes continue, growth will stagnate [at 11 percent]," he said.

He added that another wage hike would further compound the challenges investors in Indonesia already faced – high raw material importation costs, multiple taxes, poor road infrastructure and convoluted importation red tape.

Indonesian Textile Association (API) chairman Ade Sudrajat said investors needed the government to peg wage hikes as this would facilitate investors in calculating their costs. "If the government does not do this, then investor costs would roller-coaster and swerve out of budget," he said.

Indonesian Employers Association (Apindo) chairman Sofjan Wanandi said all sides – employers, workers and the government – had to stick to "the rules of the game".

The government has passed a Presidential Instruction (Inpres) on provincial minimum wage (UMP). The Instruction states that a Payment Board would adjust minimum wages based on calculations of inflation, productivity and decent living standards.

The Instruction also prohibits ministers and governors from raising minimum wages above that sanctioned by the board. Sofjan said if the government were to cave, medium and small-sized businesses would be at the greatest risk of collapse.

The Presidential Instruction on minimum wage was designed to protect small and medium enterprises.

Sofjan added that if the government were to grant workers' demands, "employers would shut down operations, and workers would loose their jobs as well". He added that as many as 200,000 workers were laid off in the first six months of the year as businesses shut down due to this year's wage hikes.

Indonesian Industrial Estate Association (HKI) chairman Sanny Iskandar lamented the government's inability to prevent violence as mobs swept through industrial estates in Greater Jakarta and Purwakarta, West Java, inciting clashes with employers.

[Linda Yulisman contributed to this story.]

Yogya students hold solidarity action, condemn violence by paid thugs

Tribune Yogyakarta - November 1, 2013

Yogya – Scores of students from the Student Struggle Center for National Liberation (Pembebasan) held an action in solidarity with the October 31- November 1 national strike in the Central Java city of Yogyakarta – The action, which was held in front of the Yogyakarta Presidential Palace, was marked with the lighting of one thousand candles.

"Almost all workers in the country are taking action. Moreover workers in Jabotabek (Greater Jakarta) are standing firm to fight for their rights. We are here to support the actions by the workers", said action coordinator Ajwar on Friday evening.

Ajwar said that the workers' demand that the government increase the regency and municipal minimum wage (UMK) by 50 percent is reasonable and is in accordance with the reasonable living cost index (KHL).

"The politics of low wages by companies and the government hurts workers a great deal. This keeps workers out of reach of a decent living, so it is fitting if workers demand their rights", he asserted.

During the action the students also condemned the violent actions by thugs to thwart strike actions in the Jakarta satellite city of Bekasi and other areas on October 31. The group said that the government and employers must be held liable.

Ajwar said that four workers were slashed and stabbed by paid thugs during the incident and employers must be held responsible for the brutal action.

"It is very regrettable that in a democratic country there are still efforts to muzzle the people's wishes by acts of thuggery. We condemn this brutal action", he said.

[Translated by James Balowski.]

Yogya students scuffle with police at national strike solidarity action

Detik News - November 1, 2013

Edzan Raharjo, Yogyakarta – An action in solidarity with the national strike was held by scores of students from the Student Struggle Center for National Liberation (Pembebasan) at the Yogyakarta Presidential Palace in the Central Java city of Yogyakarta on Friday evening.

The student action, which was in support of the labour movement's demands for wage increases, was marred by a scuffle with police. The scuffle broke out when the students prepared to set fire to two tyres, which were encircled by a blockade of demonstrators.

When the tyres were fully alight, police officers moved in and forced their way through the student blockade, taking the tyres away and extinguishing the flames. Police also sized flags brought by the students although they were later returned. The action continued with students giving speeches.

The action was in support of workers who are holding a national strike to demand wages increases of 50 percent, which the students said was appropriate given the current situation. "Support the workers' strike. And halt actions by mass organisation thugs against the labour movement" said action coordinator Azwar in a speech.

The students lit scores of candles as a symbol of solidarity with the workers. They also brought posters with messages such as "The freedom to form trade unions is non-negotiable" and "Smash thuggery and militarism".

[Translated by James Balowski.]

Political parties & elections

Democratic Party steps up attacks on Jokowi

Jakarta Post - November 6, 2013

Bagus BT Saragih, Jakarta – The popular Jakarta Governor, Joko "Jokowi" Widodo finally responded to attacks launched by the Democratic Party (PD) on Tuesday.

Responding to a statement from President Susilo Bambang Yudhoyono that the regional government was responsible for traffic congestion, Jokowi said he could not be held solely responsible for the problem.

"Dealing with the traffic is not only Jakarta's business, but also the central government's. Both parties must cooperate with synergy to address the problem," said Jokowi, who has been in charge of Jakarta since last year. Jokowi said he was also encumbered by regulations put in place by the central government.

"I am in charge as the governor, but many aspects [in the transportation sector] are under the control of the central government. Traffic in Jakarta, for example, comes from many areas outside of my territory and that is where the central government should play its role, such as by setting up a Greater Jakarta Transportation Authority," said Jokowi.

Yudhoyono's veiled attack on Jokowi was made during a meeting with members of the Indonesian Chamber of Commerce and Industry (Kadin) at the Bogor Presidential Palace in West Java on Monday.

In response to complaints from businessmen over the traffic problem, which contributed to their production costs, the President spoke with some state leaders during the ASEAN and East Asia summits in Brunei Darussalam, last month.

"I was stunned when some prime ministers said they were concerned about the traffic in Jakarta. They said it could take two hours to reach city center from the airport. They asked 'What is the solution?' I just felt uncomfortable with the question. It was the governor who should have answered such a question," Yudhoyono said.

He added it was the regional administration that should come up with a solution to the problem, especially since the implementation of regional autonomy. "If you have issues with Jakarta's traffic woes, you have Jokowi [to answer for it]. If it is in Bandung [the capital city of West Java province], go to [West Java Governor] Ahmad Heryawan or the mayor of Bandung," he said.

Jokowi had earlier complained that policies from the central government did not help Jakarta deal with its problems, questioning the central government's decision to provide fiscal incentives, which included reducing the luxury tax on the low-cost green car (LCGC).

The policy would not only cost trillions of rupiah from the luxury tax, but it also undermined the central government-endorsed 17-step program to mitigate traffic congestion in the city as it would flood the capital and neighboring cities with cheap cars.

Political and public policy analyst Andrinof Chaniago said Yudhoyono's statement was "inappropriate", because "out of nine major causes of traffic jams, three were under the central government's responsibilities."

The three, according to him, are the lack of political will to implement a macro transportation scheme, the poor policy on housing and urbanization. "After failing to deal with the three issues properly, Yudhoyono instead issued the LCGC policy," Andrinof said.

The PD appears to have stepped up attacks on Jokowi, who analysts consider as the presidential candidate to beat in the 2014 election. PD lawmaker Ramadhan Pohan earlier said Jokowi was partly responsible for the wiretapping program conducted by the US and Australia, by giving a construction permit to the US Embassy building in Jakarta.

Final voter roll stirs up storm of criticism

Jakarta Globe - November 6, 2013

SP/Anastasia Winanti Riesardhy & Markus Junianto Sihaloho – Poll observers and politicians have slammed election organizers for sticking with the current voter roll for the 2014 elections, warning of flawed data that could pad the list by more than 10 million fictional voters.

Ray Rangkuti, director of the Indonesian Civil Circle (Lima), an election watchdog, accused the General Elections Commission (KPU) on Tuesday of being "too forceful" in insisting on Monday that it would stick with its much-criticized list of 186.6 million registered voters.

He said the KPU had unilaterally decided to raise the total from the initial figure of 176.2 million based on the claim that the extra 10.4 million were people who were eligible to vote but who lacked government identification numbers because they were not resident in their hometowns, were in jail, or disenfranchised by a combination of other factors.

"This is what the KPU is claiming, but is this the truth? If so, why didn't these problems surface earlier? Why weren't these people without government ID numbers registered for one before the October 23 deadline?" Ray said. "There's a lot of mystery behind this."

He also noted that the Elections Supervisory Body (Bawaslu), the government's polling monitor, had also raised questions about the additional voters.

He urged the House of Representatives' Commission II, which oversees domestic affairs, to set up a special committee to look into the matter. The KPU insisted on Monday that it would retain the 10.4 million names in the electoral roll for next year's legislative and presidential polls.

"We want to protect the constitutional rights of the citizens who are eligible voters," KPU commissioner Sigit Pamungkas said as quoted by Antara, the state-run news agency.

"Even though they don't fulfill the requirement [of having a government identification number], it's better rather than depriving them of their voting rights just for an administrative reason."

Election law stipulates that only those with valid identification numbers can vote. Sigit said he would work closely with the Home Affairs Ministry to ensure that everyone on the list received a number before the election.

However, politicians have lashed out at the KPU for its decision, with Arif Wibowo, a legislator from the opposition Indonesian Democratic Party of Struggle (PDI-P) calling it "premature and illegal."

"Announcing the final list as it stands violates the law," he said, adding he was unconvinced that the government would be able to distribute more than 10 million identification numbers in time for the legislative election next April.

Habiburokhman, a senior adviser for the Great Indonesia Movement Party (Gerindra), also said his party rejected the list in its current form.

"The problem is the inclusion of these 10 million voters without identification numbers. The 2012 General Elections Law clearly states that a valid identification number is a prerequisite for being registered as a voter," he said.

"Without this number, we won't know for sure who this individual is, and for all we know it could be a fictional voter."

He also said that Gerindra monitors scouring voter rolls at the regional level had found several cases of voters being registered to vote at multiple polling stations.

"But in order to properly identify all the cases of multiple registration, we would need to comprehensively study the national voter roll that we only received on October 29," Habiburokhman said.

"So it's virtually impossible for us to comb through all the entries in time to sign off on the list this week."

He added there was no need for the KPU to finalize the list at this point, noting that for the 2004 election, which was also held in April, the KPU had finalized the list in February of that year, or just two months prior to the polls.

In the last set of general elections, in 2009, the commission was widely criticized for listing many people multiple times while leaving off thousands of eligible voters, prompting the Supreme Court to rule that all voters should be allowed to cast a ballot just by showing an ID card.

Habiburokhman said the KPU should have learned its lessons from the 2009 presidential election, whose outcome he said was still "viewed by many people as not being legitimate."

"The KPU should also have considered that the number of parties eligible to compete in 2014 is much lower than in 2009, so the competition will be much tighter. That's why it should be doing everything it can to minimize the possibility of poll fraud and other problems," he said.

Tjahjo Kumolo, the secretary general of the PDI-P, agreed that there was no need to rush the announcement to finalize the voter roll.

"We're actually on the KPU's side in terms of wanting to see a free and fair election next year," he said.

"We're repeatedly written to the KPU to share its voter data with us so we can look into the problem voters, but there's never been a positive response from the KPU.

"For the sake of the KPU's own reputation, I believe the voter list should continue to be improved," Tjahjo added.

Others, however, say the KPU should not take the full blame for the problems with the list.

Jeirry Sumampouw, the national coordinator for the Indonesian Voter Committee (Tepi), said the list was based on the Home Ministry's potential voter database, or DP4, and that it was the latter that was fundamentally flawed to begin with.

"The Home Ministry is playing it off as though the DP4 is fine. The problem is that there are a lot of quality and accuracy issues with it," he said.

The DP4 is itself based largely on the voter roll for the 2009 elections, which was widely criticized for its multiple-registered voters and omission of valid voters.

But not everyone was critical of the KPU's voter list. Didik Supriyanto, the chairman of the Association for Elections and Democracy (Perludem), a poll watchdog, said the list this time around was vastly improved from 2009, adding the KPU should be lauded for taking its job much more seriously than before.

"What's different this time from 2009 is that the KPU has realized all year long that there the list is flawed, and has been working to fix the problems, whereas last time it didn't take the matter quite so seriously," he said.

However, he advised that the commission continue to fix the list and not stick with the current version.

Only three candidates will run for president in 2014: LSI

Jakarta Post - November 4, 2013

Margareth S. Aritonang, Jakarta – As only parties with a large number of seats in the House of Representatives can nominate a candidate for the 2014 presidential election, the Jakarta-based pollster Indonesian Survey Circle (LSI) predicted that there would only be three contenders running in the election next July.

LSI predicted that other than Golkar and the Indonesian Democratic Party of Struggle (PDI-P), which would both likely hold enough seats in the House to run a presidential candidate, a coalition of political parties under the so-called "central axis" would combine seats to field a contender.

In accordance with Law No. 42/2008 on the presidential election, only a political party or a coalition that garners 20 percent of legislative seats or 25 percent of the popular vote in the April 2014 legislative election is eligible to contest the presidential election.

The latest survey from LSI found that if the legislative election were to take place today, Golkar would secure 20.4 percent of the popular vote and PDI-P 18.7 percent.

The survey, which was conducted from Sept. 12 to Oct. 5 also found that the ruling Democratic Party would garner only 9.8 percent of the vote. With such a poor showing, the Democratic Party would cease to be a major political party and would be expected to join the central axis.

Agreeing on a candidate to nominate, however, would likely be a struggle for the central axis.

"Although the Democratic Party will collaborate with the central axis parties, it's unlikely it will endorse its own [presidential] candidate because unlike other parties in the group, the party has no strong and influential figure to contest the election," LSI researcher Ardian Sopa said on Sunday.

In addition to the Democratic Party, the central axis group is expected to comprise the nationalist parties – including the Great Indonesian Movement (Gerindra) Party, the People's Conscience Party (Hanura), the National Democratic Party (NasDem) and the Indonesian Justice and Unity Party (PKPI) – and the Islamic-based parties, including the National Mandate Party (PAN), the National Awakening Party (PKB), the United Development Party (PPP), the Prosperous Justice Party (PKS) and the Crescent Star Party (PBB).

Golkar has officially nominated its chairman Aburizal Bakrie as its presidential candidate. The PDI-P has yet to announce whether it would nominate popular Jakarta Governor Joko "Jokowi" Widodo.

The PDI-P is expected to name its presidential candidate early next year. Ardian of the LSI said that should the PDI-P fail to nominate Jokowi as its presidential candidate, it is likely that central axis would nominate him and pair him with the most popular candidate from the Islamic-based parties.

According to the LSI survey, PAN chairman and Coordinating Economic Minister Hatta Rajasa appeared to be the most favored vice presidential candidate among leaders from the Islamic-based parties. Hatta would secure 31.3 percent of the vote if the election were held today.

The survey also found that PBB senior politician Yusril Ihza Mahendra would come in second with 15.2 percent of votes, followed by PKB chairman Muhaimin Iskandar with 11.8 percent and PPP chairman Suryadharma Ali with 10.7 percent of the vote.

"A pair of candidates from the nationalist parties and the Islamic-based ones will be the best scheme to overcome the strength of Golkar and PDI-P in the upcoming presidential election," Ardian said.

PDI-P: Jokowi's nomination 'a matter of time'

Jakarta Post - November 1, 2013

A senior Indonesian Democratic Party of Struggle (PDI-P) politician said on Tuesday that the party was waiting for the right time to nominate Joko "Jokowi" Widodo as its presidential candidate.

Sabam Sirait, the former secretary-general of the opposition party, said that party chairwoman Megawati Soekarnoputri had indicated support for the popular Jakarta governor.

Jokowi, he said, was very close to Megawati, a former president who has run for reelection twice and lost to Susilo Bambang Yudhoyono. He said it was possible that Megawati, who has been granted the authority to nominate a presidential candidate, would hold an extraordinary congress to name Jokowi a candidate.

"The question is when. It's possible it will at the last minute. There will be a right time. Not now, as Jokowi would be heavily criticized," he said.

Jokowi has topped many surveys on potential presidential candidates even though neither he nor the party has confirmed his nomination. Jokowi, who was elected Jakarta governor in November last year, said he was focusing on managing the nation's capital city.

Environment & natural disasters

Illegal logging pact doesn't go far enough

Jakarta Globe - November 7, 2013

Diana Parker – On Sept. 30, Indonesia and the European Union entered into a historic agreement to protect Indonesia's forests from illegal logging by guaranteeing that only legally harvested timber products will be exported from Indonesia to the EU.

Now, an international human rights group is saying the agreement does not go far enough to curb illegal logging linked to human rights abuses.

"The EU-Indonesia timber trade agreement should help combat illegal logging, but there is still a long road ahead before either side can claim to trade only in legal timber," Joe Saunders, deputy program director at Human Rights Watch said in a statement to the media.

Under the Voluntary Partnership Agreement (VPA), all timber exported from Indonesia to the EU must be certified by Indonesia's timber legality certification system (SVLK) to prove that it was harvested legally. But, according to Human Rights Watch, these certificates do not ensure that the timber was harvested without violating the rights of local communities.

In particular, the certificates do not show whether companies asked permission or provided adequate compensation to local communities for the right to log the land where they operate.

This raises serious questions about the agreement, since the EU Timber Regulation (EUTR) – a new law that went into effect in March prohibiting the trade in illegal timber products – does require legal timber to be harvested in a way that respects community land tenure rights.

"The obvious question is, if it has to be legal, legal according to what laws?" Emily Harwell, a consultant with Natural Capital Advisors and the author of the HRW study, told the Jakarta Globe on Tuesday.

Once the agreement is fully implemented, companies can use legality certificates to satisfy "due diligence" requirements under the EU rules, meaning that if wood products are certified by Indonesia, companies importing timber to the EU will not need to take additional steps to ensure that these products comply with EU law. Under the current certification requirements, Harwell said, that poses a problem.

"If the SVLK certificates are meant to be used to satisfy the legality requirement, it's going to miss respect for third party rights, respect for community rights. Which is not going to be in compliance with the EUTR," Harwell said.

"If they want to comply with the EUTR they are going to have to address that," she added.

Land conflicts linked to logging and plantation concessions occur frequently in Indonesia, a problem that has long been exacerbated by a lack of legal recognition of community land rights inside state forests. Under Indonesia's 1999 forestry law, land zoned as forest was owned by the state, regardless of whether or not local communities held previous claims to the area.

In May, the Constitutional Court ruled that this was unconstitutional and that customary lands should not be classified as state forests. However, the Forestry Ministry has so far remained largely silent on when or how this ruling will be implemented.

Civil society monitors

While land rights could pose a major challenge to implementing the agreement, other parts of the VPA have been heralded as key steps forward in improving governance in Indonesia's forest industry. Civil society groups played a major role in designing the VPA - a process that took six years and involved EU and Indonesian officials, NGOs and the private sector.

"Today's signature of the FLEGT [Forest Law Enforcement, Governance and Trade] agreement is an important step to improve forest governance and law enforcement in Indonesia," Greenpeace forest campaigner Bustar Maitar said in a statement on Sept. 30 following the agreement.

In particular, Bustar highlighted the role of the independent forest monitor network (JPIK), a civil society grouping that will play an official role in the SVLK auditing process.

Greenpeace also stressed the need for continued reform. "The signature of the agreement should not be seen as an end point, but rather as a stepping-stone," it said in the statement. "There is still much work to be done if Indonesia's timber legality standard (SVLK) and system are to be credible."

Harwell also praised the inclusion of a formal role for civil society. "This is a good thing because they are independent of either the government or the business that's being audited," Harwell said.

But, she added, with thousands of forestry companies that are going to need these certificates, relying on civil society groups to guarantee the process goes smoothly is insufficient.

"It's just not going to be possible for them to conduct audits of all those certificates and the auditing process."

Long road ahead?

While the agreement has already been signed, it still needs to be ratified by both the European Parliament and Indonesia's House of Representatives. And even once it is ratified, the law will not immediately go into effect.

According to an EU press release issued in September after the agreement was signed, the legality licensing scheme will only become fully operational when both Indonesia and the EU believe "all the necessary preparations have been made."

This means it may still be some time before SVLK certificates can be used to prove Indonesian timber complies with EU law.

Earlier this year, the European Forest Institute helped carry out an independent evaluation of the SVLK, jointly commissioned by the EU and Indonesia. The EU requires all countries with which it enters into timber legality agreements to undergo evaluations of their auditing systems.

The results of this evaluation have not yet been made public, but officials from both the EU and Indonesia's Ministry of Forestry are working on action plans to address any problems that may have been raised.

"Earlier this year an interim report by our joint assessment team came up with a number of recommendations for improvements," Colin Crooks, deputy head of the European Union delegation to Indonesia, Brunei Darussalam and Asean, told the Globe in an e-mail on Wednesday.

"We are now working with the Indonesian Ministry of Forestry to agree an action plan to address these recommendations," he said.

The Jakarta Globe is a media partner of the B4E Indonesia Summit 2013

Researchers slam palm oil initiative as industry meets

Agence France Presse - November 7, 2013

Paris – Forests are still disappearing and local communities disregarded by palm oil development despite a plan to put the sector on a sustainable footing, researchers warned as an industry gathering kicked off Thursday.

After conducting 16 case studies in Africa and Southeast Asia, the hubs of the palm oil industry, researchers said in a new book they were disappointed with a joint industry-NGO initiative to reduce the sector's impact.

The criticism came as the group behind the initiative, the Roundtable on Sustainable Palm Oil (RSPO), began its annual meeting in Indonesia.

"Since its founding 8 years ago, the RSPO has adopted good standards, but too many member companies are not delivering on these paper promises," said Marcus Colchester, one of the authors of the book "Conflict or Consent? The oil palm sector at a crossroads".

The RSPO was created in 2004 by members of the palm oil industry with the support of governments and non-governmental organizations such as the WWF to take a voluntary approach to limit the environmental and social impact of industrial farming.

Today it counts major producers of the popular cooking oil and processed food component as members. The RSPO certifies operations that claim to respect the rights of indigenous peoples and adopt conservation policies.

The organization also aims to be a mediator for communities who have seen their way of life disrupted by palm plantations and the industry.

But as world demand for palm oil has boomed, it has touched off a land rush. Experts believe production will expand to Latin America in the next decade to meet growing demand.

In Indonesia alone, palm cultivation occupies 10.8 million hectares (26.3 million acres) – about the size of South Korea – and projects in the pipeline would occupy another 20 million hectares, or over 10 percent of the national territory.

Growing palm oil is a major source of conflicts, with the Indonesian government counting more than 4,000 disputes over land, according to Colchester. It has also propelled Indonesia into third place globally for greenhouse gas emissions, following the United States and China, due to deforestation.

The 16 case studies included Indonesia and Malaysia, which between them account for 85 percent of global palm oil output. Also included were Philippines, Thailand, Cameroon, and the Democratic Republic of Congo.

In most cases the RSPO improved dialogue between local communities and producers, said the book's authors. Certain companies even adapted their practices to take concerns of local communities into account, they added.

"But RSPO-certified companies have not always held to their commitments, especially in respect to the rights of indigenous peoples and local communities," according to the Forest Peoples Program, one the groups which conducted the case studies.

It pointed to a disconnect between company executives and managers. "Senior company officials may have committed to the new approach but too often operational managers have failed to respond," said the NGO.

Numerous companies also fail to follow guidelines and often local governments fail to protect communities, added Colchester.

He said they were disappointed with the slow progress and expressed concern some firms use RSPO certification as a marketing ploy.

Colchester also cited the case of the Singaporean giant Wilmar International, which processes 45 percent of the world's palm oil, and is a RSPO member.

When residents of a community on the Indonesian island of Sumatra turned to the RSPO over a Wilmar project, he said the company sold the concession while mediation was under way, thus ridding itself of the problem it had created.

Citarum, Kalimantan world's most polluted

Jakarta Post - November 6, 2013

Nadya Natahadibrata, Jakarta – Citarum River in West Java and the entire island of Kalimantan are among the world's 10 most polluted places alongside Chernobyl in Ukraine, says an annual report by environmental organization Green Cross Switzerland and international nonprofit organization Blacksmith Institute.

The report, "The World's Worst 2013: The Top Ten Toxic Threats", published on Monday, also said that around 200 million people in the world had been exposed to toxic pollution, which could lead to various health risks, including cancer.

Citarum River, which provides 80 percent of surface water to Jakarta and irrigates farms that supply 5 percent of Indonesia's rice, was among the most polluted due to hazardous industrial waste. Textile factories in Bandung and Cimahi were found to be the major toxic waster contributors to the river that was also judged the dirtiest river in the world in 2007.

As for Kalimantan, the report said that much of the pollution there had come from the vast small-scale gold mining in the area that utilized mercury in the gold extraction process.

The mercury, which is burned off during the smelting process, released toxic chemicals into the air and waterways, where it might accumulate in fish and water, it said.

Greenpeace toxin-free water campaign manager Ahmad Ashov said the report showed that the government lacked in its efforts to control the use of toxic materials in industry.

"The government only controls the waste, when in fact it should ban the utilization of all hazardous substances," Ashov told The Jakarta Post on Tuesday. Ashov said that based on Greenpeace investigation, around 100,000 toxic materials were being used without being evaluated.

"Government Regulation No. 74/2001 on hazardous and toxic materials only regulates around 255 substances, when in fact there are actually a lot more substances being used out there," he said. "Some of the substances that have not been regulated are nonylphenol ethoxylate and pthalate, which can cause reproductive disorders and cancer. These substances were found in Citarum River," he said.

The two substances have been phased out of many products in the United States and Europe due to health risks, yet they are still widely use in Indonesia's textile industry.

"The short-term impact of these hazardous chemicals are, for instance, skin diseases, which have infected residents of Majalaya, West Java. This could lead to skin cancer in the long run," Ashov said, citing that health impacts on Jakarta residents had yet to be investigated.

Greenpeace forest political campaigner Teguh Surya said environmental destruction in Kalimantan had been so massive that the public could easily see the damage that had been done without an investigation being conducted.

"Air and water pollution in Kalimantan are not solely caused by mercury. Coal mining and oil palm plantations have significantly contributed to pollution in the area," he said.

Meanwhile, deputy minister of pollution control MR Karliansyah said that major companies were not to blame for the pollution as they had followed the proper procedures for the processing of toxic waste.

He said that small companies could be blamed for the pollution. "It is hard to force the small scale industry to comply with these regulations because most of them have no installation to process the waste. Also, 70 percent of the water pollution in Indonesia comes from domestic waste, which is still very hard to control," Karliansyah said.

He said that the government had made plans to ban new chemical substances that were considered hazardous, to amend government regulation No. 74/2001.

Karliansyah shrugged off the new pollution report, saying that it might have exaggerated the problem. "I think it is an exaggeration to put Citarum and Kalimantan alongside Chernobyl," he said.

The list also includes Agbogbloshie in Ghana, the second-largest waste processing area in West Africa; Hazaribagh in Bangladesh – home to 95 percent of the country's tanneries and Dzerzhinsk in Russia, which is the center of the country's chemical manufacturing industry.

Health & education

Indonesia 'blowing smoke' over tobacco control

Jakarta Globe - November 8, 2013

Aditya L. Djono – The Coordinating Minister for People's Welfare has demanded three Ministries throw their support behind the long-overdue push for Indonesia to ratify the international tobacco control treaty.

"I believe there is absolutely no reason for these ministries to oppose accession to the treaty because it will not affect the country's finances, other countries have ratified the treaty and it didn't affect their income at all," Coordinating Minister of People's Welfare, Agung Laksono, said on Thursday.

The ministries in question were the Trade Ministry, Finance Ministry and the Ministry of Manpower and Transmigration.

The Ministry of Health, as the driving force behind the tobacco control program, has been attempting to gain support from other ministries for the country to join the World Health Organization's Framework Convention on Tobacco Control (FCTC).

The FCTC was a treaty adopted by the UN World Health Assembly in 2003. It has been ratified by 168 of 192 countries and it is legally binding in 177 countries, accounting for more than 85 percent of the world's population.

The treaty requires signatories to adopt price and awareness measures to reduce tobacco consumption by banning tobacco advertising, promotion and sponsorship, creating smoke-free work and public spaces, putting prominent health warnings on tobacco packages and combating the illicit trade in tobacco products.

Indonesia is the only country within the Association of the Southeast Asian Nations that has not ratified the convention.

Agung said Indonesia should ratify the treaty before the end of the year. He said the ministries' refusal was groundless because the treaty would not threaten the country's sovereignty nor tobacco farmers' livelihoods.

"On the contrary this treaty is aimed to protect Indonesians from the danger of tobacco, especially among first-time smokers who are mostly teenagers," he said.

Health Minister Nafsiah Mboi has repeatedly stated how Indonesia's refusal to ratify the treaty has made the country a target for criticism.

Last month, during the Organization of Islamic Countries' (OIC) summit of Health Ministers in Jakarta, Nafsiah said she was thoroughly embarrassed as Indonesia is one of only 10 states that have not signed the FCTC, alongside Zimbabwe and Somalia.

Nafsiah criticized Indonesia for repeatedly violating commitments it has made in several international forums.

In 2011, Indonesia voted in favor of a UN General Assembly resolution recognizing the most prominent non-communicable diseases which are linked to common risk factors, such as tobacco and alcohol use, unhealthy diet and lack of physical activity.

The meeting, attended by President Susilo Bambang Yudhoyono, also recognized the fundamental conflict of interest between the tobacco industry and public health.

In 2011, a regional WHO meeting issued the "Jakarta Call for Action on Noncommunicable Diseases," in which participants from Southeast Asian countries called on global leaders to ratify the tobacco treaty and scale up a package of interventions which have proven effective, including the reduction of tobacco use.

In 2007, at an OIC Health Minsters' summit in Kuala Lumpur, Indonesia stated its willingness to recognize that tobacco poses one of the greatest threats to health. The country joined an effort to call upon OIC member states to introduce stronger tobacco control legislation.

Diplomats have noted Indonesia's eagerness to project itself as a leader in international forums, but say the country's reputation will suffer if, rather than taking action and responsibility on basic agreements, the government is instead seen as merely blowing smoke.

In September, the Indonesian government received heavy criticism after it challenged Australia's decision to implement unbranded cigarette packaging, calling it a blatant act to protect the tobacco industry.

The World Trade Organization said Indonesia had made a formal request for consultations with Australia on the issue.

Indonesia is the fifth country to challenge Australia at the WTO over its pioneering legislation passed in 2011 and implemented last December. The measures require tobacco products to be sold in drab green boxes with a neutral typeface and graphic images of diseased smokers.

"As part of the United Nations, we have been thoroughly embarrassed in various international forums, and we all know tobacco lobbyists are behind this," said Sudibyo Markus, an advisor to the Indonesia Institute for Social Development.

The WHO's most recent FCTC meeting held in New Delhi last July singled out Indonesia's reluctance to accede to the convention.

Graft & corruption

More judges involved in ethics breaches

Jakarta Post - November 8, 2013

Ina Parlina, Jakarta – A joint panel has found a number of judges breached the code of ethics this year.

The joint panel, which was set up by the Judicial Commission and the Supreme Court to review ethics breaches among judges, has handed down penalties to seven judges this year. Out of the seven cases, four involved adultery, two bribery and one drug abuse. Two female judges were involved in the adultery cases.

"Well, there's not too many adultery cases, especially compared to minor violations such as procedural errors, administrative errors or meeting with litigants. But adultery is a real ethical breach," Judicial Commission member Imam Anshori said on Thursday.

Imam said he was baffled by the fact that the two extramarital cases involved female judges.

In an ethics hearing on Wednesday, a female judge at an East Java lower court, Vica Natalia, a Jombang District Court judge, was found guilty of breaching the judges' ethics code by having extramarital affairs with fellow judge and a lawyer. The ethics panels stripped her of her position.

In her defense, the mother of three pre-teen daughters denied she had affairs with the two men. She also said that her husband, a reverend, had failed to provide for her family.

Following the panel's decision, Vica, who wore a head scarf during the hearing, filed a report with the National Commission on Violence against Women (Komnas Perempuan).

"Basically I accept the panel's verdict. But there are some points that were used to back up the verdict that I can't accept – the allegation of romance, special relations and affairs, and that I was caught red-handed making out," she said.

"I am a mother of three daughters. In the eyes of my children, I never do anything that's bad for the family. For 15 years, I have had a good standing in the eyes of my children and other people," she added.

Her lawyer Agung Widodo said a report against Vica's husband for domestic violence had been filed with Komnas Perempuan.

Vica also objected to the photos of herself naked used as evidence at the ethics hearing, explaining that they were only selfies and not meant for public viewing.

In February, another young female judge, Adria Dwi Afanti of the Simalungun District Court in North Sumatra, was banned from hearing cases for two years after the ethics panel said she had breached the ethics code by having an affair with a policeman.

In July, an ethics panel dismissed judge Acep Sugiana of Singkawang District Court in West Kalimantan for having affairs with four women and for condoning one of the women having an abortion.

"In terms of affairs and adultery, we have guided them, and at the same time warned them since the beginning of the judges' recruitment process," Imam said. "Judges should be ready to face all the consequences of their profession, including not committing adultery," he said.

President and son accused of accepting kickbacks from Hambalang

Jakarta Globe - November 1, 2013

Rizky Amelia – Tri Dianto, a supporter of former Democratic Party chairman Anas Urbaningrum, alleged that President Susilo Bambang Yudhoyono and his son Edhie Baskoro Yudhoyono had accepted kickbacks from the Hambalang sports center project and challenged the country's antigraft body to question them both.

Tri, who was summoned by the Corruption Eradication Commission (KPK) as a witness for Anas, said the KPK needed to summon Edhie because he was the member of the steering committee during the Democratic Party's national congress in Bandung, West Java, in 2010. He added that both the president and his son received kickbacks from other projects.

He added that the president should also be questioned by the KPK in his capacity as the party's chief advisor. "SBY too was in charge of the Democratic Party congress in Bandung and he was also part of Andi Mallarangeng's campaign team," he added.

Former Democratic Party treasurer Muhammad Nazaruddin previously disclosed that funds from the Hambalang project went to the party's congress to help Anas win the chairmanship. It was reported that Anas needed between Rp 80 billion and Rp 100 billion ($7 million and $9 million) to win the election.

The KPK widened the scope of its investigation of Anas – who had been named as one of the suspects along with Andi, a former youth and sports minister – from the Hambalang project to the Democratic Party's 2010 congress. But when asked about the flow of funds in the congress, Tri claimed that he only learned about it from news reports.

"I've heard about it. But, I don't know any further. I am clean. I learned from the media that there was money distributed at the congress," Tri said.

He also threatened that he would disclose the names of the party's elites who often asked for projects from Nazaruddin. "I will explain it later. One thing is certain, they often asked for projects from Nazar," Tri said.

Nazaruddin, who owned Permai Group, often won government projects and then subcontracted it to other companies.

So far, the KPK has named four suspects: former minister Andi, Anas; former state-owned construction firm director Teuku Bagus Mokhamad Noor; and former youth and sport ministry financial controller Deddy Kusdinar. Andi has consistently maintained that he played no part in the Hambalang graft scandal.

The KPK has also questioned Anas' rivals in the party's chairmanship race, such as Marzuki, Andi and Andi's brother Zulkarnaen Mallarangeng who acted as Andi's campaign manager.

KPK investigators have further questioned several Democratic Party officials such as deputy secretary general Saan Mustopa and the party's secretarial staff Eva Ompita.

The KPK has also questioned hotel staff where the congress took place and staff at another hotel where some of the participants in the congress stayed.

The antigraft body named Anas as a suspect for accepting kickbacks in the Hambalang sports center project and other government projects during his term as a lawmaker between 2009 and 2014. The Hambalang center reportedly cost the state as much as Rp 471.7 billion.

In response to Tri's call for the KPK to summon President Yudhoyono and his son Edhie, who is also the party's secretary general, Democratic Party deputy secretary general Andi Nurpati said all legal processes should be left to the KPK. Andi said the Democratic Party respects the law that implicated her colleagues in the party.

Asked whether she had information about the Hambalang project fund, which allegedly went to the congress, Andi said she had not joined the party at that time. "I don't know because I was still with the General Elections Commission at the time and I don't know anything related to the congress," she said.

KPK deputy chairman Busyro Muqoddas previously said it was just a matter of time before the antigraft body would take Anas into custody. He said he understood why people thought Anas was untouchable because of his status as a suspect who had not yet been detained.

Busyro noted that Anas' situation was similar to Andi's. He reiterated that Anas would eventually be arrested as the investigation was still ongoing.

He also made assurances that the KPK would not be influenced by politics when it eventually arrested Anas. "We have never been and will never be influenced by external factors, let alone take politics into our consideration," he said. "That's not allowed at all. It will be purely based on legal considerations," Busyro said.

KPK chairman Abraham Samad previously said he intended to detain Andi soon.

Freedom of religion & worship

Sunnis stick to demands for Shiite conversion

Jakarta Post - November 8, 2013

Religious Affairs Minister Suryadharma Ali has said there is a possibility that the Shia refugees from Sampang, Madura, who are currently living in a shelter at the Puspa Agro Market complex in Jemundo, Sidoarjo, East Java, will be able to return to their homes in the near future.

"We have met with local clerics in Madura and based on discussions with them, they are willing to accept the refugees because they are interrelated," Suryadharma told reporters after meeting the displaced Shiites at the shelter on Wednesday evening.

Among those who attended the meeting were several officials from the East Java provincial administration, including the rector of Surabaya's Sunan Ampel State Institute of Islamic Studies (IAIN), Abdul A'la.

However one cleric insisted that the Shiites must convert first. "Residents and clerics in Madura insist that Tajul Muluk's Shia followers must return to the teachings of Ahlussunnah Wal-Jamaah, and then we will accept them again in Sampang," said the cleric in Sampang, referring to the leader of the Shia community.

The cleric requested anonymity because of the huge pressure to resolve the case. He also claimed that the minister's statement was a result of heavy international pressure on President Susilo Bambang Yudhoyono to solve the problem.

In a closed-door meeting at the Grahadi Building in Surabaya on Aug. 1, Yudhoyono expressed his disappointment at the Sampang incident, which had become an international issue, whereas in fact the case was much less significant than previous riots in places such as Poso or Ambon. Yudhoyono, however, asked that the case not be treated lightly as the world was closely following the case.

The demand for Tajul Muluk's followers to convert, said the cleric, was nonnegotiable. In several meetings with the administration, clerics and the police the community in Madura had expressed their wish for reconciliation provided the Shia followers "repented".

"Now, 12 families have repented and they have returned peacefully to their village in Sampang. Actually, many of Tajul Muluk's followers, who do not follow his teachings seriously, wish to return home," he said.

Of the 200 Shiites in the refugee camp, he claimed, only one third of them remained deeply committed but they were very influential in the group, while the rest just went along and joined the group due to economic hardship.

Shia refugee Imam Ansori, 45, said he refused to change faith despite having often been urged to do so by local clerics.

"We refuse to change our faith despite living in a shelter for who knows how long," said Ansori, who lives with both parents, his wife and three children in a 5-by-6 meter room in the shelter at the Puspa Agro Market complex.

The same stance was expressed by another refugee Rubaah, 42, who also lives at the shelter with his wife and two children. He said the calls to convert had actually been made by the local administration and clerics for a long time.

"We have been asked to sign a letter of repentance, failing which we will not get protection. We've refused because matters regarding religion are not in the hands of the local administration," he said.

Currently, the conditions for the 200 Shia refugees who have been staying at the Puspa Agro Market in Sidoarjo since June 20, are little better than those that they endured when they were taking refuge at the Sampang Sports Complex in Madura, despite the fact that they were promised a decent standard of living at the shelter.

They were relocated from the Sampang Sports Complex – where they had been staying since Dec. 30, 2012 – to the Puspa Agro Market after they were evicted by clerics in Sampang.

They were driven out of their village after an incident in which four homes, a small mosque and an elementary school at the Tajul Muluk Islamic boarding school complex in Nangkernang hamlet, in Sampang, were razed to the ground by an anti-Shia mob on Dec. 29, 2012.

Traditional believers press for recognition

Jakarta Globe - November 1, 2013

Markus Junianto Sihaloho – Some 15,000 women who embrace traditional faiths sought help from the Indonesian Democratic Party of Struggle on Tuesday, gathering at the party headquarters to demand that the religion column on the state-issued identification card to be erased, saying it was a source of discrimination.

They also called for the government to recognize the existence of traditional faiths in the country.

Eva Kusuma Sundari, a lawmaker for the party, known as PDI-P, echoed the women's concerns in Jakarta on Thursday, saying that discrimination by the government against traditional faith practitioners left them vulnerable to stress and violence.

She said that by requiring citizens to state their religion on state-issued ID cards (KTP), the government had institutionalized discrimination against people who practice traditional religions.

The ID card application requires citizens to choose from one of just six officially acknowledged faiths – Islam, Catholicism, Protestantism, Hinduism, Buddhism and Confucianism – despite a ruling by the Constitutional Court that the state was not entitled to limit the number of religions.

Eva said a woman from Surabaya, East Java, named Dian Jeani, who practices the Sapto Darmo faith, told her that the children of people with traditional faiths are often bullied and called infidels. Sapto Darmo is a traditional religion from Central and East Java whose practitioners believe in the worship of ancestors.

"Since schools don't provide a religion class for traditional faith holders, the children were forced to learn Islam and perform the prayers," Eva said. "As a result, the children suffered stress even though the education law requires schools to provide religion classes for all faiths."

Eva added that traditional faith believers were vulnerable to violence by hard-line and anti-pluralist mass organizations since they were not protected by the law.

In Jambi, believers in one local traditional faith have been called infidels by a mass organization in the area, Eva said, and they have been victims of both physical and symbolic violence. Similar situations have also occurred in West Java, she added.

Traditional faith believers are also worried about Home Affairs Minister Gamawan Fauzi's call for regional governments to foster closer ties with violent mass organizations such as the Islamic Defenders Front (FPI), Eva said.

"They feel like they are being thrown to mass organizations, which often resort to violence in their strategies to politicize religion."

In April last year, practitioners of the Sunda Wiwitan faith said that while their members had been allowed to list Sunda Wiwitan as their religion on their ID cards since 1972, the government suddenly stopped allowing them to do so in 2011.

"Suddenly, from 2011 until now, Sunda Wiwitan is no longer mentioned [on the ID card]," Daenah, a Baduy tribe figure who is also the head of Kanekes village, told the Banten governor Ratu Atut Chosiyah in Serang in April last year. "They said our religion is not mentioned in the laws."

The US government earlier said that state protection of religious freedom in Indonesia has been deteriorating.

While the Indonesian government generally respects the freedom of the country's six officially recognized religions, it has failed to overturn local regulations violating religious freedom, the US State Department said in a report.

And despite the country's tradition of religious pluralism, societal abuse against religious minorities is on the rise, it added. "There were several significant lapses in enforcing protections," the report said.

The International Religious Freedom Report, which examined religious freedom in 199 countries and territories in 2011, highlighted discrimination and violence against religious minorities in Indonesia including Ahmadiyah Muslims and Christians, as well as atheists.

It cited a case in February 2011 when a mob of more than 1,500 people attacked Ahmadis in Cikeusik, Banten province, killing three and injuring five others. Videos of the attack posted online showed members of the mob beating the Ahmadis to death as the police failed to intervene.

While 12 members of the mob were brought to trial, the report said, "they were given disproportionately light prison sentences" of three to six months. By comparison, an Ahmadi injured in the attack was arrested, charged with provoking the attack and sentenced to seven months in prison, it said.

"Due to inaction, the government sometimes failed to prevent violence, abuse and discrimination against individuals based on their religious beliefs," the report said. "In some cases, it failed to hold the perpetrators of violence accountable."

Poverty & social inequity

How the holes in Indonesia's safety nets hamper poverty reduction

IRIN - November 8, 2013

Indonesia's economy grew by roughly 6 percent in 2013, but its poverty reduction has nearly stalled with almost half the population living in poverty – and experts struggling to identify and serve the neediest among them.

"It's true that [social] targeting is not easy and it's complicated," Nina Sardjunani, the Indonesian government's deputy development planning minister, told IRIN.

The decrease in the official poverty rate from 2011-2012 (half a percentage point) was the smallest since 2003, according to the World Bank as cited by Australian National University.

Social targeting – the process used to identify people most in need of social assistance – in Indonesia has improved in recent years, say analysts.

But with some 11.4 percent of the population living in poverty (and another 40 percent hovering near it), the cyclical nature of poverty, time lags between identifying the poor and getting them assistance, and different ways of implementing national welfare programs at the community level, have all made it difficult to keep Indonesian families from falling into poverty, despite the government's goal to cut poverty to 8 percent of the nearly 247 million population by 2014.

With some 3 percent (nearly eight million people) still to go and only two months until 2014, it is imperative not only to expand poverty-alleviation initiatives, but also ensure their efficiency, say experts.

With fuel prices that have risen three times in the past decade and ongoing increases in rice prices (in a heavily rice-dependent country), the government has responded with several social safety nets this past decade.

Safety nets

The government first introduced the Bantuan Langsung Tunai (BLT), an unconditional cash transfer now known as the Bantuan Langsung Semetara Masyarakat (BLSM), to 19 million households every three months from 2005- 2006, and from 2008- 2009, to smooth over fuel price shocks.

In June 2013 the government allocated nearly US$829 million to the BLSM, distributing $13.35 to each of 15.5 million households twice between June and October.

The National Team for Accelerating Poverty Reduction (TNP2K), established by the government in 2010, oversees implementation of all public poverty reduction programs.

The excluded fight back A number of these initiatives, particularly cash transfers, have instigated protests throughout the past decade, while failing to lift significant numbers of households out of poverty, causing analysts to question the anti-poverty schemes' scope and efficacy.

Eligibility lists for unconditional cash transfers previously known as BLT were largely decided by sub-village heads; national program staff then reviewed the lists.

"If a poor household was not nominated, they were not assessed, and many of them missed out on the program," reported the World Bank in 2012. Until recently families had no official recourse to challenge BLT classification, resorting instead to protest.

There were protests in 56 percent of communities where BLT was implemented between 2005 and 2008 linked to perceptions of favoritism.

In a West Papuan community, villagers jailed a village chief and his treasurer in 2005; in Central Java in the same year, the community verbally insulted a village leader responsible for eligibility until he offered to resign, according to the 2012 study co-commissioned by TNP2K.

To maintain social peace, "local leaders often redistributed in order to decrease social jealousy," said Anna Winoto, the social policy specialist for the UN Children's Fund (Unicef) in Indonesia.

Another program that put a strain on community relations that has "abated but not disappeared" according to a 2012 World Bank report is Raskin, which provides 17.5 million households with 14kg of subsidized rice monthly.

Rice typically costs 40 US cents per kilogram; the subsidized price is almost half, and covers 30-40 percent of a household's average total rice consumption, according to the Asian Development Bank.

Village officials manage the subsidy, and often redistribute rice to the whole village to share equally. As a result, an estimated 71 percent of the lowest three socioeconomic groups – the targeted beneficiaries – receive subsidized rice, but it may be less than what is intended for them, says the World Bank.

However, in a report released one year after Raskin's implementation, the Organisation for Economic Co-operation and Development noted the "flexibility in local level implementation may have even improved targeting with pressure for fairer distribution at the local level and allowing newly poor families to access the subsidized rice".

Efforts to improve

The country's current social targeting methodology, introduced in 2011, is a database of households' socioeconomic indicators (excluding income due to lack of data) gathered every three years by the Central Bureau of Statistics.

"Before the government adopted a unified database in 2011, each program had [its] own list and target of people. It was all very confusing because of leakage [when resources intended for the poor flow to affluent groups] and overlap," said Winoto from UNICEF.

TNP2K identifies households falling into the lowest 40 percent according to BPS surveys, which are entered into the database. Each national poverty alleviation program can then filter its target population. (PKH targets the poorest 10 percent, BSM the poorest 25 percent with school-age children, and Raskin the poorest 25 percent, with or without children.)

In addition, the government introduced Kartu Perlingdungan Sosial (KPS) social security cards in June 2013 for the country's poorest 25 percent that were eligible for Raskin, BLSM, and BSM; without these cards, families will not be considered for enrollment.

Families that think they were unfairly excluded in the past from any social assistance program can now apply to their village head to be re-assessed. Card holders can also file complaints on a newly-established government website for citizen reporting which includes reporting applications for smartphones for download.

"Coverage has improved. However, we have to recognize a few challenges," said Winoto from UNICEF, who explained that household data is only collected by the Central Bureau for Statistics every three years, and the rapid rate at which people can fall into poverty means "a lot of people are still being missed in safety net scheme[s]." Involving the community is "key" to finding residents who may qualify for social assistance, but are falling through safety nets, said Winoto.

Community participation in data gathering has expanded in recent years after local government officials in Polewali Mandar community in West Sulawesi Province first piloted efforts in 2004.

Village chiefs there recruited data collectors from the community to identify households with children who had dropped out of school and were eligible for cash aid. Since then, more than 3,000 children have been identified and returned to school with social assistance to support them, according to local media.

In 2010 the same concept was tested in East Nusa Tenggara Province in 132 villages.

Methodology – but also money

Analysts say it is no surprise that a country with such a large population (fourth largest in the world) that was classified a low-income country only a decade ago would still struggle with poverty – and by extension – targeting assistance.

However, the World Bank has noted that the challenge of helping Indonesia's poorest is not only an issue of targeting, but also of inadequate resources invested in social assistance.

"While targeting is not perfect in Indonesia, most of the poor will be receiving at least one of these [social assistance] programs... [but] there is a question as to whether they receive enough assistance for their needs," said an economist with the World Bank in Jakarta, Matthew Wai-Poi.

Indonesia invests 0.5 percent of its annual $878.2 billion GDP in social assistance, as compared to a 2.6 percent regional average for Southeast Asia.

"We are yet to have established [sufficient] social safety nets," said Arianto Patunru, a local economics researcher for the University of Indonesia and Australian National University.

Police & law enforcement

Indonesian police keep their guns, if they can keep their cool

Jakarta Globe - November 8, 2013

Bayu Marhaenjati – won't disarm, but have promised to reevaluate the psychological condition of officers carrying firearms in the wake of a fatal shooting allegedly by a Mobile Brigade officer earlier in the week.

"Surely with this incident, everyone in the force who carries guns, not only the Brimob corps, will be reviewed," Jakarta Police spokesman Sr. Comr. Rikwanto said at police headquarters on Thursday.

Rikwanto went on to answer questions about who exactly will be evaluated, and on what schedule. "People will be reviewed based on the observations of their respective superiors," he said.

"They will continue to carry a gun if based on an observation and evaluation process their mental condition allows it, while their gun authorization will be revoked if they aren't fit."

Rikwanto said psychological tests were already conducted regularly on all members who hold guns, including unit heads.

"The psychological tests are conducted regularly for those who want to use weapons in their duties and for those who are being evaluated for it. It's held regularly, once a year," he said.

He said that detectives were among those officers allowed to carry a gun, saying their job was not only to type reports from behind their desk, but also to occasionally take part in the capture of criminals.

Rikwanto said that the number of Jakarta police officers carrying guns reached into the thousands. Brimob officers, one of whom is accused of Tuesday's murder, are often armed with automatic rifles and have a history of using them on protestors when called in to quell demonstrations.

Shooting

On Tuesday night a Brimob officer, identified as "First Brig. W.," reportedly approached Bachrudin, a security guard at a shophouse in Cengkareng, West Jakarta.

The officer, annoyed at what he deemed a lack of respect by the private security officer, demanded the man drop to the ground and do push-ups, Jakarta Police spokesman Sr. Cmr. Rikwanto said. When Bachrudin refused to comply, police said, the Brimob officer shot him in the chest.

"The victim thought that he did not do anything wrong and he refused," Rikwanto said. "The perpetrator shot him. The victim suffered a gunshot wound on the left side of his chest that caused his death."

The police officer turned himself in at the Brimob's Kelapa Dua headquarters in Depok, West Java. He was handed over to the West Jakarta Police for questioning, Rikwanto said. "He is still being questioned," he said.

The Brimob officer reportedly treated private security guards in West Jakarta like his subordinates, often visiting the store in Cengkareng drunk and demanding money or a show of respect, according to reports in the daily Kompas. He would order the security guards to hand over cash or alcohol, said Lorent, a friend of the deceased.

"He felt like he was a big guy around here," Lorent told Kompas. "Security guards were forced to salute him as he passed. If they didn't he would get really angry."

The National Police's supervisory commission (Kompolnas) expressed concern over the incident, stating that it was an example of the arrogance displayed by some police officers.

"The policeman should have managed to control himself and hold his emotions," Edi Saputra Hasibuan of Kompolnas said. "Don't think that just because you are a police officer you can do that."

Edi, whose background as a journalist at sensationalist tabloid daily Pos Kota has given him plenty of experience reporting on police cases, urged the West Jakarta Police to lay charges against the officer. "The perpetrator must be tried in a criminal court because he has killed someone," he said.

Institutional rivalries

Previously, Edi had called for a regulation that would require police and military officers to remove any attributes of office when entering nightclubs.

He said that a brawl between members of the Indonesian Military (TNI) and the National Police at a Depok karaoke bar – which left two Brimob officers injured and a soldier hospitalized with severe head wounds – was embarrassing.

Edi said the incident had marred the reputations of both institutions. "This is the result of discipline for members not being enforced maximally. These actions have been condoned," Edi said.

The nightclub brawl reportedly started when Second Brig. Sugandi, of the Kelapa Dua Brimob station, and another police officer were reportedly attacked by four members of the TNI in the bar area of Venus Karaoke in Depok Town Square last month. Four other Brimob members then entered the fray, according to the Jakarta Police.

Sugandi was stabbed in the stomach during the fight. Another police officer, Second. Brig. William, was slashed on his left hand. Both were admitted to nearby hospitals.

Second Sgt. Cholil, of an Army Strategic Reserve Command (Kostrad) unit in Ciluar, Bogor, suffered serious head wounds and was admitted to Gatot Subroto Military Hospital in Central Jakarta for treatment.

Lawmaker Abubakar Al Habsyi, a member of House Commission III, which oversees legal matters, also called on the National Police and TNI to carry out a serious evaluation of the situation. "Let's prevent things like this from happening over and over again," he said.

Abubakar said every unit should enhance security to prevent their members from coming and going from their stations on personal errands.

He said the measures were needed to prevent cases such as the revenge killings of four suspects by special forces (Kopassus) soldiers at Cebongan Prison in Yogyakarta.

Ombudsman findings damning for police

Jakarta Post - November 8, 2013

Yuliasri Perdani, Jakarta – The Indonesian Ombudsman has found that police investigators, especially at district levels, are failing to fulfill their primary functions to investigate crimes.

Ombudsman member Budi Santoso said that of the 319 reports filed by members of the public between January and July, the majority concerned the police failing to respond to calls asking them to carry out investigations.

"With 319 public complaints, the National Police became the most targeted institution, lagging behind regional administrations," Budi said on Thursday.

The Ombudsman received complaints in 23 provinces, with North Sumatra, Central Java and East Java lodging the most complaints. One of the complaints concerned the unresolved murder of journalist Fuad Muhammad Syafruddin, also known as Udin.

Udin died after being assaulted at his house in Bantul, Yogyakarta, in 1996. Many believe that Udin was murdered because of his reports of malfeasance involving local government officials.

The Yogyakarta chapter of the Indonesian Journalists Association (PWI) alleged the Yogyakarta Police simply did not want to solve the case, especially given the mounting evidence that they could use to prosecute the case today.

Another complaint was filed in Nias, North Sumatra, where a 15-year-old girl was raped and impregnated by a member of her family.

Mandrehe police precinct initially declined to investigate the case, prompting the girl's family to file the case to the Nias Police. The Nias Police failed to immediately arrest the suspect, allowing the suspect to flee to Bandung, West Java.

Aside from crime investigations, Ombudsman chairman Danang Girindrawardana said people complained about administrative services provided by the police, in applying for driver licenses or licence plate registrations.

Based on the Ombudsman's investigation, police officials have allowed applicants licenses without taking driving tests, while only paying a Rp 180,000 (US$15) bribe.

The cost increases if applicants hire a middleman who can obtain licenses faster through their links in the police bureaucracy. Government regulation No. 50/2010 regulates that driving licenses cost between Rp 50,000 to Rp 120,000.

While acknowledging that such misconduct sometimes happened, National Police Traffic Corps (Korlantas) chief Insp. Gen. Pudji Hartanto defended his corps. He blamed applicants for bribing officers in charge of the test.

"Some citizens decline to play by the rules. They persuade and bribe police officers to make an exception for them," Pudji said.

Meanwhile, National Police Public Supervision Inspectorate chief Comr. Gen Imam Sudjarwo claimed that officials at regional police levels had follow up most of the complaints. "We have immediately responded to the complaints and strive to improve our performance," he said.

Imam noted it was reasonable that the National Police, given the size of the institution, received higher numbers of complaints.

"We have 1,200 units of work that provide services for all of citizens. It is normal that we receive so many complaints. We perceive these as the public's attention to the force," he said.

Brimob member guns down security guard over 'lack of respect'

Jakarta Globe - November 6, 2013

Bayu Marhaenjati – A National Police officer allegedly shot a man in the chest, killing him over a perceived "lack of respect," after the security guard protested the Mobile Brigade (Brimob) officer's repeated requests for money or free alcohol.

The officer, identified as "First Brig. W.," reportedly approached Bachrudin at a shop in Cengkareng, West Jakarta, at 6:30 Tuesday night. The officer, annoyed at what he deemed a lack of respect by the private security officer, demanded the man drop to the ground and do push-ups, Jakarta Police spokesman Sr. Cmr. Rikwanto said.

When Bachrudin refused to comply, the Brimob member allegedly shot him once in the chest.

"The victim thought that he did not do anything wrong and he refused," Rikwanto said. "The perpetrator shot him... [and] the victim suffered a gunshot wound on the left side of his chest that caused his death."

The police officer turned himself in at the Brimob headquarters in Kelapa Dua, Depok, West Java. He was handed over to the West Jakarta Police for questioning, Rikwanto said. "He is still being questioned in the West Jakarta Police," he said.

The Brimob officer reportedly treated security guards in West Jakarta like his subordinates, often visiting the store in Cengkareng drunk and demanding money or a show of respect, according to reports in the Indonesian newspaper Kompas. He would order the security guards to hand over cash or alcohol, said Lorent, a friend of the deceased.

"He felt like he was a big guy around here," Lorent told Kompas. "Security guards would have to salute him as he passed. If they didn't he would get really angry."

The National Police's supervisory commission (Kompolnas) expressed concern over the incident, stating that it was an example of the arrogance displayed by some police officers.

"The police should have managed to hold himself and hold his emotions," Edi Saputra Hasibuan, of Kompolnas, said. "Don't think that just because you are a police officer you can do that."

Edi urged the West Jakarta Police to charge the officer as a civilian. "The perpetrator must be tried in a civil court because he has killed someone," he said.

Foreign affairs & trade

Indonesia metal ore ban to have only a small hit on exports

Reuters - November 8, 2013

Randy Fabi and Jonathan Thatcher, Jakarta – Indonesia's ban on shipping unprocessed mineral ore should cut export revenue by no more than 10 percent next year, the country's investment chief said, as the controversial rule is relaxed to limit the impact on Southeast Asia's largest economy.

The estimate, which could mean a loss of at least $470 million based on data on the top three metal exports, is the first a senior government official has publicly given on the potential economic impact of revisions to the mineral export ban.

Policymakers, grappling with an economic slowdown and a widening current account deficit, have been under pressure to water down the ban that threatens to halt billions of dollars worth of metal exports once it comes into effect in mid-January.

Uncertainty over how the final law will be enforced by Indonesia, the world's top exporter of nickel ore and refined tin, has hurt the country's credibility with foreign investors and rattled metal markets.

"We only see a slight impact (on metal export revenue from the ban)," Mahendra Siregar, chairman of the Investment Coordinating Board, said in an interview. "In total, a 10 percent decline would be the maximum."

The total value of the top three metal ore exports – nickel, copper and bauxite – was nearly $4.7 billion last year, according to Bank Indonesia.

Siregar said the ban would mainly impact shipments of copper and gold. Indonesia's major copper producers include U.S-based Freeport McMoRan Copper & Gold Inc and Newmont Corp, while the gold industry has state-owned Aneka Tambang and Australia's Newcrest Mining.

Export exemptions

Analysts believe that Indonesia does not have the capacity to process the enormous amount of ore it produces, and so the ban would strangle exports of minerals such as nickel.

The mining law was first passed in 2009 in a government bid to seize more control over Indonesia's natural resources.

But the government is close to finalising agreements with at least 12 companies that would allow them to continue shipping unprocessed ore after January's ban, said Siregar.

The dozen firms, which he declined to disclose, have already completed domestic mineral processing facilities or were close to completion.

Government officials said they expected an announcement of the changes once agreements were reached with a few more companies.

"The government plans to revise some of the regulations, some of the rules that apply to (the 2009 mining law)," Susilo Siswoutomo, deputy energy and mineral resources minister, at an investment conference on Thursday. "We are very confident that by the end of the year we will be able to do that."

Indonesia has received 28 "very serious" proposals to build smelters, some of which could be operational as early as next year, Siswoutomo said. There were 97 other proposals that were only at the stage of feasibility studies and were being reviewed by the government.

[Additional reporting by Fergus Jensen; Editing by Ed Davies.]

Prominent Indonesian MP calls for spies to be thrown out of Jakarta

ABC Radio Australia - November 7, 2013

Jim Middleton and staff – The head of Indonesia's Parliamentary Commission for Foreign Affairs has called for those found to be responsible for spying to be thrown out of Indonesia.

The prominent MP from Indonesia's governing coalition, Mahfudz Siddiq, told Newsline that intelligence personnel must be known to embassy officials for them to operate legally in Indonesia.

"If there are any personnel of your, for example, your intelligence agency that works in Jakarta – spying or something else – without any control, without any knowledge of your ambassador, I think it's illegal, it's unofficial," he said.

"If they are an official agent not under the control of your ambassadors in Jakarta, they should go back, you should throw out your personnel. Because when you place your personnel in Indonesia, in Jakarta, they should be under the control of your ambassador."

Indonesia's border protection intelligence sharing is being reviewed in response to reports that Australia has been listening in on Jakarta. Australia's foreign affairs minister, Julie Bishop, has arrived in Indonesia denying all talk of a diplomatic rift.

"I don't accept there has been a rift," she said. "The bilateral cooperation that exists between our two countries in areas such as people smuggling and counter-terrorism is of mutual benefit, of mutual advantage, to both countries, and that will continue to be the case."

Indonesia is deeply concerned, and Indonesia's foreign minister, Marty Natalegawa, says Indonesia is reviewing its co-operative agreements to share security information.

In Melbourne for scheduled talks with the Australian Government, Mahfudz Siddiq says communications must be done formally. "If Indonesia needs intelligence information, our intelligence agency can communicate with your intelligence agency," he said.

Indonesia threat to derail information sharing with Australia over spying

Sydney Morning Herald - November 4, 2013

Michael Bachelard – Indonesia has ramped up its reaction to revelations that Australia was systematically spying from its embassy in Jakarta, demanding an end to spying and apparently threatening in response to stem the flow of intelligence about people smuggling.

Foreign Minister Marty Natalegawa, who was stung by the revelations in Fairfax Media last week, has also vowed to co-sponsor an anti-spying resolution at the United Nations. Asked what action Dr Natalegawa would take against Australia, he said that if there was no "explicit assurances" that spying would stop, it would threaten Indonesia's role as a partner in other areas.

"I was looking at the Indonesia-Australia [partnership], the various agreements the two countries have committed themselves to," Dr Natalegawa said.

"We have to review our co-operation, our information exchange with the two countries concerned, both the US and Australia, because if they did gather information out of the official framework, the question is what is the use of the official framework. This is something we need to carefully think about and we have explained to them that we cannot accept this kind of thing and we demand that it won't be repeated in the future.

"One of them obviously is the agreement to exchange information, exchange even intelligence information, in fact, to address the issue of people smuggling... to disrupt terrorism, etc. Now these information flows have been rather effective, have been rather important. We need to look at that."

He was speaking in the context of his dissatisfaction with explanations given to him personally by Foreign Affairs Minister Julie Bishop, and to his department by Australian ambassador Greg Moriarty, in meetings last Friday, and from the Americans earlier in the week.

"The kind of response that we've been obtaining or receiving is the more generic response that neither the government of Australia nor the United States is able to confirm or deny the practices reported in the various media," Dr Natalegawa said.

"In the absence of such assurances to the contrary, of course we must assume that such activities are taking place."

It is a significant step up in response from Dr Natalegawa, who, sharing a conference podium with Ms Bishop in Perth last week, said the spying was "not cricket".

Back in Jakarta on Monday, he has called for a "strong commitment" by Australia and the United States that "they would not engage in any activity inconsistent with the friendly relations between our two countries".

At the weekend, Germany and Brazil announced they would ask the United Nations to adopt a draft resolution to end excessive electronic surveillance, saying illegally collecting personal data "constitutes a highly intrusive act".

Dr Natalegawa said Indonesia was "joining Germany and Brazil in co- sponsoring in the UN General Assembly [a discussion] to address precisely this kind of issue". Dr Natalegawa reiterated that spying had the potential to undermine trust and confidence between countries.

Economy & investment

Domestic industry upbeat on high demand

Jakarta Post - November 8, 2013

Linda Yulisman, Jakarta – Domestic biofuel producers are anticipating a rise in demand next year, possibly a triple increase, particularly following the recent issuance of a regulation that requires higher amounts of biodiesel in fuel blends.

Biofuel Producers Association (Aprobi) secretary general Paulus Tjakrawan predicted on Thursday that local demand might jump to 3.8 million kiloliters next year, up from 1.1 million kiloliters this year.

Out of that estimated volume, 3.5 million kiloliters will supply state- owned oil and gas firm PT Pertamina while the remaining 300,000 kiloliters will go to other companies, according to Paulus.

"In general, our production capacity is sufficient and we are ready to accommodate such a high increase in demand," Paulus told The Jakarta Post on the sidelines of a seminar hosted by the Industry Ministry.

The installed capacity of the domestic palm oil-based biodiesel industry, which comprises 23 firms, totaled 5.67 million kiloliters this year. In addition, the bioethanol industry, which uses cassava and molasses and relies on 13 producers, reached 272,730 kiloliters, according to the industry body.

The production of biodiesel alone is expected to hit 2.2 million kiloliters this year, up 20.88 percent from 1.82 million kiloliters last year. So far, most of the domestic biodiesel output is exported. This year, 69.7 percent of the total output will be exported.

However, the situation will soon change following the issuance of a regulation in August, which is partly aimed at reducing the oil imports that caused a staggering deficit in the country's trade balance.

From January to September this year, Indonesia posted a US$9.74 billion deficit from oil and gas trade, according to the recent data from the Central Statistics Agency (BPS).

Crude oil imports jumped 29.29 percent to $10.26 billion in the first three quarters of the year, contributing to an 8.5 percent increase in total oil and gas imports to $33.6 billion, which accounted for 23.94 percent of overall imports.

Under the Energy and Mineral Resources Ministerial Regulation, starting from September, various sectors including transportation, industry and energy, should raise their minimum use of biodiesel.

Power generators, for example, should use at least 7.5 percent of biodiesel, and the figure will climb to 20 percent next year. Private vehicles should also utilize 3 percent of biodiesel and the content will surge to 10 percent next year.

M. Suryadi Mardjoeki, head of gas and oil fuel division at the state-owned utility company PT PLN, said that in the last two months of this year, the company needed 26,000 kiloliters of biodiesel to supply a number of its diesel-fueled power plants.

Part of the necessity would be sourced through Pertamina, in addition to other companies through open tenders. "Currently, we are conducting trials in some of our diesel-fueled power plants in North Sumatra, Riau and West Kalimantan," he told the Post.

Suryadi added that as PLN would boost consumption of biodiesel in all diesel-fueled power plants next year, its demand might rise to 1.3 kiloliters.

Door widens for foreign investors

Jakarta Post - November 7, 2013

Satria Sambijantoro, Jakarta – Indonesia plans to reduce the foreign ownership cap in the telecommunications and pharmaceutical sectors and open up new industries, such as airport management, to boost foreign direct investment (FDI), which is needed to reverse an economic slowdown.

A meeting to discuss the revised version of the negative investments list (DNI) on Wednesday revealed the government would soon allow offshore-based investors to hold 100 percent ownership in airport and seaport management. Such management is currently closed to foreign investors, and only state- owned operators PT Angkasa Pura and PT Pelindo have that privilege.

The new scheme would allow foreign investors to be involved in airport management, while local enterprises would still have stakes in the ports' tangible assets and facilities, said Investment Coordinating Board (BKPM) chairman Mahendra Siregar.

"The offering of public private partnerships for some new airports – such as those in northern Bali and in Yogyakarta – has stalled because foreign investors' involvement in the airports' management remains impossible," he said.

Other revisions to the DNI would also include a relaxation in overseas holdings for industries such as pharmaceutical, telecommunications, ecotourism and movie distribution.

Under the future DNI, for example, foreign investors could own up to 85 percent of shares of pharmaceutical companies, higher than the existing 75 percent, according to Coordinating Economic Minister Hatta Rajasa.

The minister added that the maximum ownership limit for foreigners would be raised from around 45 percent to 65 percent in the telecommunications industry and from 49 percent to 70 percent in ecotourism.

The government would also allow foreigners to hold up to 49 percent shares in companies in the movie distribution industry, which until now was open exclusively to domestic investors, in a move to develop the country's lucrative creative and film industry, he said.

"We'll still hold another meeting to discuss the DNI. Nevertheless, we are committed that the new draft will be more open [to foreign investors]," said Hatta.

Hatta also said that the government would relax curbs for existing producers of alcoholic beverages from expanding their factories to help limit the import of liquor.

The major revision in the DNI is another effort taken by Indonesia to improve its investment climate and boost the stalling growth of investments.

On Oct. 25, Vice President Boediono unveiled a policy package that would make it easier for investors to set up new firms, establish new buildings, apply for electricity access, borrow funds from banks and pay their taxes.

The recent economic slowdown was attributed to the moderation in investments as investors held back from pouring money into the country due to stalling reforms and intensifying regulatory uncertainty ahead of the 2014 elections.

Indonesia posted 5.62 percent gross domestic product (GDP) growth in the third quarter, the slowest in nearly four years. Sluggish economic performance resulted from the sharp deceleration in gross fixed capital formation – an indicator of investments – that grew only by 4.5 percent, significantly lower than the 10 percent growth recorded in the same quarter last year.

Indonesian Employers' Association (Apindo) chairman Sofjan Wanandi said the presence of foreign investors would be beneficial as they could act as partners, not competitors, for local businesses. "We should seize the opportunity and cooperate with them [foreign investors] for the sake of developing our economy."

BKPM data shows the greater contribution of local investors in the economy. Total realized domestic direct investments grew 33 percent year-on-year in the third quarter, while FDI growth slowed to a three-year low of 18.4 percent.

Total investment realization in the third quarter, which topped Rp 293 trillion, generated 411,543 jobs in total, though the figure might quadruple given investment multiplier effects in the economy.

Economic slowdown drives up unemployment rate

Jakarta Post - November 7, 2013

Nurfika Osman and Tassia Sipahutar, Jakarta – Indonesia's unemployment rate reportedly rose in August on the back of the economic slowdown, as shown by the latest data from the Central Statistics Agency (BPS).

In a report published on Wednesday, the BPS announced that the open unemployment rate (TPT) surged to 6.25 percent as of August, higher than the 5.92 percent posted in February and 6.14 percent recorded in August 2012.

The report also said that the total number of working people had declined to 110.8 million in August from 114.02 million in February. Compared year- on-year, the figure had dropped by 10,000.

Most workers were recorded in the agriculture sector, while the rest worked in trade, social services, industry, construction, transportation, finance and other sectors.

Meanwhile, the number of the unemployed climbed to 7.39 million in August from 7.17 million in February and 7.24 million in August last year.

BPS head Suryamin said that the economic slowdown had negatively affected employment in the country and, at the same time, there had been an increase in the labor supply, thanks to a higher number of people qualifying for the workforce age limit.

Data from the BPS revealed that the amount of people who qualified for the workforce stood at 176.66 million as of August, up from 173.93 million in the previous year.

In terms of education, the vocational school graduate segment recorded the highest TPT rise, up by 3.51 percent to 11.19 percent within the February to August period, followed by university graduates, college graduates and high school graduates.

Labor analyst Payaman Simanjuntak attributed the higher TPT to the declining competitiveness of local industries as they were not able to compete with imported goods, which inundate the country.

"They cannot afford purchasing raw materials either as most of them are imported and expensive," he said. In the end, companies were forced to lay off their employees, according to Payaman.

He warned that the TPT would continue to rise in 2014 if the government failed to reduce imports, curb contraband and promote local businesses, including informal ones, as more than 50 percent of workers were reported in the informal sector.

The BPS' results were announced amid widespread labor strikes, in which workers demanded higher minimum wages as well as the elimination of contract employment and the outsourcing system.

Data from the Manpower and Transmigration Ministry said that as of Wednesday, the administrations of 22 out of 34 provinces had already set their minimum wage limit for 2014.

Separately, Suhartono, the ministry's spokesman, said that the higher TPT was caused by the mismatch between the workforce's competencies and market demand as well.

He said the government was currently preparing a job creation program to absorb the unemployed by implementing five strategies that would include developing workforce skills through training, helping the workforce set up small and medium enterprises and carrying out an emergency job creation program.

"We are optimistic that we can reduce the number of unemployed citizens in our country gradually. We want to reduce the [TPT] figure to 5.1 percent by the end of 2014," he said, adding that it would also collaborate with private sectors to channel them to related industries across the country.

Indonesian economy sees weakest growth in four years

BBC News - November 6, 2013

Indonesia's economy expanded at its weakest rate in four years in the third quarter as a result of slowing exports and subdued domestic demand.

Its economy grew 5.6% in the July-to-September period from a year earlier, down from 5.8% in the previous quarter. Indonesia's exports have been hurt by slowing demand from key markets and a drop in commodity prices.

Meanwhile, domestic demand has been impacted by rising fuel prices and rising interest rates. Fuel prices in the country surged earlier this year after the government removed its subsidy programme.

Petrol prices went up by 44% while diesel prices rose by 22%, leading to higher transportation costs and electricity bills.

Higher rates

Indonesia, like many other emerging economies, was also hurt after investors withdrew money from emerging markets earlier this year.

The pullout was triggered by growing speculation that the US central bank will start to taper off its key stimulus programme and start raising interest rates sooner than previously thought.

In Indonesia's case, concerns of slowing economic growth and a widening current account deficit further contributed to that pull out. All of this has hurt the Indonesian currency which has dipped nearly 17% against the US dollar since May this year.

A weak currency coupled with rising consumer prices has resulted in the central bank raising the cost of borrowing in the country. The latest raise in September saw the key rate rise to 7.25%, the highest level in more than four years.

Analysts said that the combination of all these factors had hurt domestic consumption and impacted growth.

In September, the country's central bank also lowered its growth forecast. It now expects the economy to grow by 5.5-5.9% compared with its earlier projection of growth of 5.8-6.2%.

Analysis & opinion

Indonesia: Attacks on workers are attacks on democracy – labour activist

Asian Human Rights Commission - November 8, 2013

[An interview with Said Iqbal, President of the Confederation of Indonesian Workers' Union (Konfederasi Serikat Pekerja Indonesia, KSPI) published by the Asian Human Rights Commission.]

Can you tell us about the recent national labour strike and protest in Indonesia? What are the demands of the workers?

On the 31st of October and the 1st of November 2013, the Consolidated National Movement of Labour (Konsolidasi Nasional Gerakan Buruh, KNGB) held a national strike across Indonesia. It was planned that the strike would take place in 20 provinces but at the end it happened only in 17 provinces. It was also planned that the strike would be held in 110 cities and regencies but at the end it was held in 100 cities and regencies. There were 1.5 million workers participating in the strike – slightly less than what was expected.

We were calling for five demands: the first one was the 50% increase of our minimum wage nationally. Using 84 items to determine the official decent living standards (Kebutuhan Hidup Layak, KHL), we are demanding the minimum salary to be IDR 3,700,000 for workers in Jakarta. Our calculation is different from those of the government and the companies', who only take into account 60 KHL items.

The second demand was calling for the implementation of national health security without exception on 1 January 2014 instead of gradual implementation by 2019. The laws on the National Social Security System (SJSN) and Social Security Providers (BPJS) have mandated that, by 1 January 2014, everyone shall enjoy health security. If the national health security is to be implemented gradually until 2019, it is likely that on 1 January 2014, there will be 10.3 million Indonesians in poverty who will be dismissed should they come to the hospital for medical treatment. This is because the government has decided that they will provide health security only for 86.,4 million individuals whereas actually - according to the National Team for Poverty Eradication (PNP2K) - the security is needed for 97.6 million people. So there is a difference of 10.3 million and those people will absolutely be dismissed by the hospitals if they come on 1 January 2014 for medical treatment.

Our third demand was for the abolition of outsourcing, in accordance with the Regulation of the Manpower Minister No. 19 Year 2012 which only allows five types of supporting jobs to be outsourced. These five types of supporting jobs are catering, security, cleaning service, driver and supporting service for oil and mining jobs. Outsourcing in the state-owned enterprises should also be abolished as almost 80% of those enterprises are still not in compliance with the Minister Regulation.

The fourth demand is the enactment of a law on domestic workers. The absence of such law opens the way for human trafficking and other illegal practices. There is no legal protection for domestic workers in Indonesia despite the fact that the ILO has a specific convention on domestic workers, Convention No. 189.

Lastly our fifth demand is the annulment of Mass Organisation law which we believe may infringe on the freedom of association and assembly.

How has the government respond to these demands?

The national strike resulted in good and bad news. The good news is that in several areas, the local governments have promised the labour representatives that they will increase the minimum wage between 30-40%. For example, in Bekasi the increase is promised to be around 30% and in Surabaya it will be around 30-40%. However the bad news is that the Governor of Jakarta, Joko Widodo, decided to only increase the minimum wage no more than 9%. He is in favour of cheap labour, a supporter of the market, and not in favour of the people. I am saying this because the 9% increase and the newly decided Regional Minimum Wage (UMP), which is only IDR 2,441,000, are not realistic and irrational. We, workers, have been accused of demanding something irrational when actually the Governor's decision is way more irrational. From the IDR 2,441,000 wage, a worker will have to spend IDR 600,000 on rent and around IDR 500,000 on transportation each month. For meals, a worker usually will spend IDR 9,000 for breakfast, IDR 12,000 for lunch and 12,000 for dinner – it is IDR 33,000 a day. This means in a month they will have to spend around IDR 990,000 for meals only. At the end of the month, therefore, they will only have IDR 300,000 or around USD 30! How can they send their children to school, pay their motorbike instalments, buying clothes or do other things? This is simply irrational. So this is the bad news.

What is worse is that, our peaceful and legal protest was attacked by paid thugs. There are 28 workers in Bekasi and Karawang who were slashed and attacked. Seventeen of them were severely injured and are hospitalised in Kosana Medika in Cikarang. Three of the seventeen are in critical condition. One of them, Rohmat, is in the ICU at the moment because his head was axed so that his skull was broken and the bone shards got stuck in his brain. The treatment cost is over IDR 400 million. Another worker, Ali Nurdin, was dragged by a motorbike for about 100 metres by the thugs and now he vomits blood every three hours. The third person who is in critical condition is Wawan who was stabbed in his stomach.

These three people are only workers whose wages are only slightly above the minimum wage. They were fighting for their rights but they were attacked by thugs who allegedly were paid by 'black companies'. The police also let this happened. They let the thugs carried weapons, kill, stab and slash the workers. This is a tragedy for humanity. Democracy in Indonesia is under threat as the 'black companies' have allied with thugs who killed and attacked the workers.

Who are these 'black companies' you were referring to?

'Black companies' are those who support cheap labour, always refuse to pay wages adequately, use outsourced labours when they are not supposed to, or those who do not want to provide pensions. Included in the list are also those who do not provide protection for domestic workers. They are all encouraged by the Indonesian Employers Association (APINDO). They are the advocates of cheap labours. As I said earlier, is it possible to live adequately with only IDR 300,000 in Jakarta? In Bangkok, the minimum wage for 2013 is equal to IDR 2,800,000 and in Manila it is equal to IDR 3,200,000.

Mainly the companies we categorise as 'black companies' are those in labour intensive industries such as companies from Korea, China or Taiwan whose business is garments or shoes. They always say if the minimum wage is too high then they would leave. The solution is then quite simple. Indonesia does not only consist of Jakarta, Bogor, Tangerang, Bekasi or Karawang. Our territory ranges from Sabang until Merauke. Each region has its own minimum wage. If the minimum wage in Jakarta and around is high it is because living in these areas is more costly. Labour intensive companies who cannot afford to pay minimum wage in Jakarta then can just relocate their business to Semarang, Kendal, or Sukabumi where the minimum wage is low. The living cost there is low – half of the minimum wage in Jakarta.

Jakarta and the areas that surround it instead, can be the place for capital intensive industries that have the capacity to pay better or higher minimum wage. The claim that all companies will leave if the minimum wage is quite high is, therefore, not right. We have not received any reports claiming that there is a company which left right after the local government in Jakarta decided to raise the minimum salary to IDR 2.2 million.

What was the response from APINDO?

The APINDO has always been in favour of cheap labour, refusing to give pensions and giving limited health security. It is difficult to convince them to agree to our demands. What we were actually hoping is that the government can take a balanced decision. We understand and agree that they need to take into consideration the difficulties based by the companies and that it is important to ensure that investment is coming to Indonesia. Yet at the same time, the government, including the Governor of Jakarta Joko Widodo, should not endorse cheap labour. It is not realistic to pay the labour only with IDR 2.4 million a month. It is a lie if they say the workers do not want to compromise. Indeed, we asked for an IDR 3.7 million minimum wage for workers in Jakarta. However, in formal meetings we have compromised and mentioned that, for an adequate life, IDR 2.6 million is needed. From that amount then we decide the minimum wage. Added with inflation and 2014 economy growth in Jakarta then we got the final number which is around IDR 3 million. We have also compromised by not using 84 KHL items but only 60. We, however, based our calculation on 2014 KHL, not the 2013 one as used by the government. The logic is simple – if we are going to decide the minimum wage for 2014 then of course we should use the 2014 KHL. But what is happening now is that the 2014 minimum wage decided by the Jakarta Governor is based on 2013 KHL. This is unfair. We are living in the future yet somehow the calculation for our wage is using last year's standard! The responses from APINDO and the governor of Jakarta to our demand on a minimum wage are therefore negative. As for our other demands, there have been no responses. Yet we will keep fighting as we believe what we are fighting for is guaranteed by the laws.

Let us get back to what you said earlier about how the police let the attack against workers happen – what did you mean by that?

An investigation held by the Commission for the Disappeared and the Victims of Violence (KontraS), Jakarta Legal Aid Institute (LBH Jakarta) and the legal aid institute in my organisation found that the attack was systemised. The attackers were prepared for that. A few days prior to the national strike, there had been pressures and terrors. The thugs were carrying machetes, axes, swords and big wooden blocks. They were marching in front of the police; it was prior to the day when national strike took place.

On the national strike day, Bekasi District Police also let the thugs carrying swords, axes, machetes, and big wooden blocks and they did nothing about it! The national strike was legal and constitutional! The Indonesian National Police themselves have issued a letter saying the national strike was in accordance with the regulations and the law – so it was legal. Given this, the police were supposed to ensure the security of the national strike instead of allowing violence to take place.

In fact, according to the investigation conducted by these groups, the Chief of Bekasi District Police as well as the local consultative forum (Muspida) were facilitating the people to reject the national strike. For this reason, we are demanding for the dismissal of the Chief of Bekasi District Police. It only happened in Bekasi, that the thugs were allowed to slash other people's heads. The victim was only having breakfast – he was not even protesting yet! What happened was that a group of thugs got inside the factory, slashed and axed people's head to the point that the victim's skull is broken. This is barbaric! And dragging a worker with a motorbike on the top of a hot road that he is suffering from concussion and keeps vomiting blood every three hours even until today! This is a barbaric omission. Our democracy is one that is under the threat of violence and crimes. The Bekasi District Police let this happened and did not do anything afterwards.

Have you or the family of the victims reported the attack to the police? If so, did it result in anything at all? What is your expectation?

We give our appreciation to the Deputy Chief of Jakarta Metropolitan Police. He reacted rightly by ordering his subordinates to arrest the perpetrators. If I am not mistaken the latest update is that there were 10 people arrested. We appreciate the Deputy Chief as well as the Chief for taking prompt action. Yet they should not only stop there. The complaint we submitted along with KontraS and LBH Jakarta to Jakarta Metropolitan Police was also to ensure that the intellectual actors such as the Chief of Bekasi District as well as the Muspida have to be held responsible too. The intellectual actors under the Waste Companies Association who allegedly have funded the violent attacks should also be held responsible. It is not possible for the thugs to do this unless somebody asked them to. We have reported these intellectual actors with the hope that the police will take legal action against them.

[The AHRC is not responsible for the views shared in this article, which do not necessarily reflect its own.]

Behind closed doors with Jakarta – they may as well be open

Sydney Morning Herald - November 6, 2013

Michael Bachelard – Twice now the smooth-talking Indonesian Foreign Minister Marty Natalegawa has lifted the veil on his discussions with Australian counterpart Julie Bishop to reveal what really goes on behind closed doors.

Disappointingly for those of us who had imagined otherwise, it's pretty much the same old spin we hear in public.

Dr Natalegawa's first release – later retracted as an "error" – was over people-smuggling talks in New York, when he warned Ms Bishop not to take "unilateral steps" which would risk "co-operation and trust".

They were rather less varnished comments than his public statements but very much along the same lines. The fact they were released publicly at all was at least as newsworthy as the contents.

Dr Natalegawa also cracked open the door after meeting Ms Bishop in Perth last week and discussing the revelation that Australia uses its embassy in Jakarta to spy on Indonesia.

"The kind of response that we've been obtaining... is the more generic response that neither the government of Australia nor the United States is able to confirm or deny the practices reported," Dr Natalegawa later said of those discussions.

If that's all that happens in the guarded rooms of diplomacy, then it's no wonder countries spy on each other to find out what's really going on.

The relationship between the Abbott government and the complex democracy that is Indonesia is in its infancy. It's being tested by Tony Abbott's own electioneering on boats and by the spying revelation – an event beyond his government's control.

It may also be tested by his government's cuts to the aid budget and now by Ms Bishop's plan to ensure that this money is spent in a way that furthers Australia's foreign policy objectives and meets its approval under a so- called "mutual obligation" regime.

Indonesia's national pride means senior officials do not like talking about their country as an aid recipient, although the need for the aid remains enormous, and Indonesia has no larger donor than Australia.

So a "mutual obligation" condition attached to that aid may well be seen as paternalistic – at least to the extent that it differs from the strict guidelines already imposed on how money is spent.

The recent slew of revelations, diplomatically expressed bad blood, misunderstandings and backbiting must be read in the context of Abbott's promise to create the warmest ever relationship with Indonesia. By his own measure it must be said he has so far failed, and worse may yet be to come.

President Susilo Bambang Yudhoyono, a friend to Australia, is increasingly a lame duck at home and an election is coming up next year.

For Abbott to keep his election promise, his foreign minister must start developing better, warmer relationships with those she's dealing with. Then she'll need to do it all again when the personnel change next year.

It's not clear if Bishop "does" off-the-record, but pro-forma words and declarations we have seen so far will not cut it. It's early days, but the challenge has clearly been issued.

UN inquiry must be NZ's first step

Dominion Post - November 4, 2013

Maire Leadbeater – Foreign Affairs Minister Murray McCully has confirmed that a controversial three-year aid programme will go ahead next year in Indonesian-ruled West Papua.

I cannot believe that a $6.34 million training programme in community policing will contribute to a better life for indigenous Papuans. This police practice model is based on pre-empting problems by supporting community efforts to tackle crime.

Nothing wrong with that in principle, but will this gentle approach work in West Papua, a region largely closed to the outside world where the security forces practise torture and brutality with impunity? The real aim of this aid seems to be to reassure the Indonesian authorities that New Zealandis on their side and does not support "separatism".

I have been following the programme since its early stages in 2008, thanks to documents released under the Official Information Act.

Our diplomats find that the police programme is warmly received by the governing elite. When the programme was announced in October the Papuan papers ran stories and happy photos of our officials meeting local top brass.

Last April, the New Zealand ambassador met chief of police Brigadier General Tito Karnavian, who conceded that there is a need to "train police as serving local communities, not as oppressors". General Karnavian has reasons to be well disposed to New Zealand – he trained at our Defence Force Command and Staff College back in 1998 and is a graduate of Massey's Defence and Security Studies Centre.

I wonder what he learnt from his New Zealand teachers because in many circles General Karnavian's reputation is anything but benign. He was previously head of the crack anti-terror unit Detachment 88, responsible for the 2009 extra-judicial killing of Papuan guerrilla leader Kelly Kwalik.

Since his appointment as police chief, democratic space has been narrowed to the point of vanishing altogether. Tribal leaders and activists have been arrested while gathering in prayer, demonstrating on International Democracy Day and recently marking an anniversary of the formation of the International Parliamentarians for West Papua.

It is estimated that there have been 100,000 and 200,000 conflict related deaths over the past 50 years of Indonesian rule. West Papuan activists describe their experience as "genocide", but this can be a tricky claim to establish in international law. To meet the legal definition of genocide "intent to destroy" must be established with respect to a "national, ethnical, racial or religious group".

However, two Sydney academics, Jim Elmslie and Camellia Webb-Gannon, have broken new ground with their contention that "slow motion genocide" in West Papua does meet the criteria of the 1948 UN Genocide Convention. In the latest Griffith Journal of Law and Human Dignity they say that Indonesian Government policy has been "consistently directed towards countering and eliminating Papuan attempts to create an independent state for their nation or enjoy political freedom on a par with other Indonesians". The academics detail a litany of entrenched violations from outright military sweeping campaigns, massacres and assassinations, to failed and discriminatory health services.

Indigenous Papuans are now outnumbered as the result of the systematic introduction over many years of floods of new migrants. Elmslie and Webb- Gannon claim that the Indonesian Government aims to destroy West Papuans who support independence – "a very substantial part" of the indigenous population.

New Australian Prime Minister Tony Abbott has insisted that West Papuans were "better off" under Indonesian rule.

On the other side of the ledger, Vanuatu's Prime Minister Moana Carcasses Kalosil addressed the United Nations General Assembly last month and called for the UN to investigate alleged human rights abuses as well as the political status of West Papua. Indonesia claims its incorporation of the territory was legitimate and cites a 1969 United Nations-sponsored referendum.

But only 1022 press-ganged Papuan men participated in the so called "Act of Free Choice" which has since been shown to be fraudulent. Western nations chose to look away – Indonesia was a Cold War ally and the right of all peoples to self-determination was secondary.

As a party to the Genocide Convention New Zealand is obliged to take a stand if the case is proved, but it would be inhumane to sit on our hands.

We should support Vanuatu in its call for a UN investigation. But first we should give up the idea that we can make a positive difference by training the Indonesian police in how to be nice.

[Maire Leadbeater is from the New Zealand group West Papua Action.]

Indonesia's labour movement stirs

Red Flag - November 4, 2013

Max Lane – Widespread strikes and worker protests took place in many Indonesian town and cities on 31 October and 1 November. On the first day of the strike, the Indonesian police stated that they had noted actions in 50 towns and cities in 15 provinces.

The protesters had three main demands: a 50 percent increase in the minimum wage, an end to all illegal labour hire ("outsourcing") and a social insurance scheme for all Indonesians.

The actions were organised by a coalition called the Labour Movement National Consolidation (KNGB), formed three weeks before the strike. The KNGB comprised the Confederation of Indonesian Trade Unions (KSPI), the Workers Joint Secretariat (Sekber Buruh), National Trade Union Confederation (KSN) and several other union federations and regional alliances. The KSPI includes the Metalworkers Trade Unions Federation (FSPMI), which has been at the heart of many major actions over the last three years.

A national strike with similar demands was held in October 2012 organised by the Indonesian Workers Assembly (MPBI), which comprised the KSPI, KSN, Confederation of the All Indonesian Workers Union and the Confederation of Prosperity Labour Unions. Wage increases of 40 percent and more were won as a result of that strike, although many employers are still resisting paying up.

It appears that KNGB was formed in response to a breakdown in the unity of the MPBI. While only two of the big confederations from 2012 are in KNGB, the new alliance includes the openly left wing Workers Joint Secretariat. Although the Workers Joint Secretariat can mobilise only small forces, its involvement is a major advance in ending separate mobilisations. The KNGB also involved many local alliances of enterprise level unions, which may have involved members of all the MPBI unions.

It is difficult to assess how many workers took part – probably several hundred thousand. Activists report that in the industrial belts around Jakarta, production was stopped in about 40 percent of factories, despite the abstention of two large confederations.

There was also systematic harassment, especially in the factory belt areas, by groups of uniformed gangs, mostly belonging to the Pemuda Pancasila (PP). This group was formed during the Suharto dictatorship as a weapon of the state. The PP and other groups mobilised to prevent workers leaving factory compounds or factory neighbourhoods to join mobilisations.

In some cases there were physical attacks, resulting in workers being hospitalised with stab wounds and slashes. Later, there were clashes between organised workers and the PP and other similar groups. Police were often present but usually did nothing to stop the PP, although some gang members were arrested.

In other areas such as in Sumatra and Sulawesi, the police attacked protesters and detained some for several hours. On the factory island of Batam, off Singapore, it is reported that the factory belt areas were brought to a total halt.

Recovering from dictatorship

Militant trade unions first arose in the 1920s in Indonesia and were engaged in many important campaigns over the next four decades, including winning nationalisation of all former colonial companies in the 1950s, the repudiation of foreign debt in 1957 and the appointment of worker representatives on the board of management of many state-owned companies in the 1960s. After General Suharto took power in 1965, unions disappeared for several years.

Between the early 1970s and 1998, there was only one union – tightly controlled by the dictatorship and used as a weapon to control workers. During these 33 years, new generations of workers entered into a workforce in which trade unionism had almost disappeared. Since the end of the dictatorship in 1998, and especially since 2000, independent trade unionism has slowly re-emerged.

Key in developing a militant wing have been sections of the FSPMI, a union with a large, well-organised membership based in manufacturing and assembly plants, including the automotive sectors.

Consciousness in these very new unions, at all levels of leadership and among the factory base, is very uneven. There is constant struggle and argument over the best tactics and levels of militancy required. There is not yet a developed practice of strikes (stopping production), most worker protest mobilisations taking place outside shift hours.

The 40 percent participation in stopping production in the factory areas was a significant advance on this front. A crucial technique to achieve this turnout is "sweeping". Workers from one factory gather outside of factories still operating and call on the workers to join them. They chant and bang on the factory gates.

The practice developed during 2011 and 2012, when workers from one factory would mobilise to show support for workers on strike or involved in conflicts with management at other factories. This inter-factory solidarity over the last few years has fostered an atmosphere that has made "sweeping" feasible.

There has also been an active "ekopol" education campaign, originally hosted by the FSPMI, which has brought progressive labour movement ideology into the factory belts around Jakarta and in other provinces. Although the FSPMI has recently ended these courses for being too left wing, other unions have started to host them.

The timing of the strikes was linked to the wage-fixing process. The minimum wage is fixed annually by municipal and district governments on the advice of a tripartite wage council.

The governor of Jakarta, Joko Widodo, incurred workers' wrath when he confirmed that the Jakarta minimum wage would be raised only 10 percent. The unions have assessed that the cost of living is such that a 50 percent increase is needed to achieve a decent standard of living. Most surveys show that the workers' real purchasing power has decreased drastically over the last decade. Other local governments have yet to announce their decisions.

While the media and the new middle class and its twitterdom have generally been hostile to the strike, a positive sign has been the many campus student actions in solidarity with the workers. Human rights NGOS and similar groups have also expressed solidarity.

We've always spied on Indonesia – and they've spied on us too

Crikey - November 1, 2013

Damien Kingsbury – With much of the recent discussion about countries spying on each other, the only startling thing is that anyone would bother to feign surprise. Indonesia and Australia have long spied on each other, and they have both known about it.

The main distinctions between Australia and Indonesia's intelligence activities are their methods and who they share information with. Australia tends to use electronic information gathering and separate analysis in Jakarta and Canberra; Indonesia's spying tends to rely more on human intelligence.

Australia's spying on Indonesia began in the 1950s, as Australia and Indonesia increasingly found themselves in competing Cold War camps. Australia also had a tangential role in assisting the US in supporting the failed 1957-58 PRRI-Permesta rebellion.

Australia's spying on Indonesia increased as the two countries initially took opposing views on the future of West Papua and as the Indonesian Communist Party became more influential. Following Indonesia's military coup of 1965-66, Australia's interests shifted to more economic concerns, but intelligence gathering continued.

In 1999, a high-ranking Indonesia general, Abdullah Mahmud Hendropriyono, openly claimed that Australia had spies in East Timor around the time of the ballot for independence. Although it was denied at the time, Australia did have a small number of intelligence officers there, assessing the status of electoral process.

One of the more obvious findings was that Hendropriyono was a key figure in the establishment of the military-led militias, which murdered around 3000 people and laid waste to the country following the vote. Australia has since continued to spy on Indonesia, in Jakarta and Bali, as well as on activities of its more extreme Islamist organisations.

Similarly, Indonesia has long spied on Australia, although its intelligence service's primary function, like its military, has always been focused internally. Indonesian spying on Australia was very active during the Suharto era, targeting Indonesia-focused Australian activists.

Indonesian students, in particular, have long been required to be present at and report on "anti-Indonesian" activities, such as human rights meetings and activities in support of West Papua and, in the past, Aceh and East Timor.

However, as many of Indonesia's informants in Australia are not professionally trained, they have regularly misinterpreted events or have reported what they think their consular masters want to hear as opposed to what has actually happened. As a result, a number of Australian activists have been identified as holding different or stronger views than they do.

Indonesia has also long tapped Australian telephones, usually those connected with events within Indonesia, but it does not have an NSA-type wholesale sweep.

Individuals interested or involved in Indonesia, especially in an area that might be in some way controversial, can reasonably expect that, if not under constant surveillance, they have been and will probably continue to be spied on by Indonesian agents acting in Australia.

This is what intelligence agencies do. It was ever thus for the world's second-oldest profession.