A West Papuan leader says Indonesian lobbying of regional governments should not dilute the case for West Papuan membership in the Melanesian Spearhead Group.

The comment from the secretary-general of the United Liberation Movement for West Papua, Octo Mote, follows visits by Indonesia's Foreign Minister to Papua New Guinea, Solomon Islands and Fiji.

Retno Marsudi's visits came as MSG countries consider a membership bid by the Movement. Ms Marsudi's talks in Fiji resulted in Indonesia committing 20 million US dollars to a MSG capacity building programme.

Mr Mote says Jakarta can forge closer ties with Melanesia but doesn't have an argument against the West Papuan MSG bid.

"Therefore the only way they can is to give money. But where is this money from? This money is blood money. That money is from West Papua. Indonesia doesn't have resources, except from Freeport McMoran [which operates a large mine in Papua], except from British Petroleum (which operates a large gas project in Papua), except from many other natural resources in West Papua."

Source: http://www.radionz.co.nz/international/pacific-news/267979/indonesians-accused-of-blood-money-approach-to-msg

Freeport to refine some copper concentrate in Papua smelter

Jakarta Post - March 6, 2015

Nethy Dharma Somba, Jayapura – One of the world's copper and gold giants, PT Freeport Indonesia, has pledged that it would process some of its copper concentrate at a smelter to be built by the Papua provincial administration and its Chinese partner in the province's regency of Timika.

The company's president director Maroef Sjamsoeddin said that Freeport would continue cooperating with the Papua provincial administration.

"That way PT Freeport does not need to build a smelter at its own expense because the Papua provincial administration has expressed a willingness to build one," Maroef said in Jayapura on Wednesday night.

In cooperation with Chinese investors, the Papua provincial administration plans to build a smelter with a capacity of 900,000 tons per year in Timika, which is located near the mining giant's mines. The plant is expected to begin operation by 2020.

Maroef said the provincial administration's decision to build the smelter, paying for it out of its own funds and not out of Freeport Indonesia's, was made during the visit of Energy and Mineral Resources Minister Sudirman Said to the smelter development site in Timika.

Freeport processes a small part of its copper concentrate in a smelter in Gresik, East Java. Under the new mining law, all miners should process their mineral production in local smelters. The government has asked Freeport to build a new smelter in Papua, but the company prefers to build one in Gresik, near the existing one.

Maroef said that by 2017 Freeport would close its open-pit mine in Grasberg and would focus on its underground mining, which is predicted to produce 2 million tons of concentrate a year.

Previously Papua Governor Lukas Enembe said that the planned smelter would cost Rp 13 trillion (US$1 million). The facility is expected to be able to start operation by 2020 as construction will take some 54 months to finish.

The site for developing the smelter is located in Poumako, Timika, covering an area of 650 hectares. The site is also to be developed into an industrial center.

"The site is ready to develop as it already has spatial planning, an environmental impact analysis [amdal[, a cement packing industry and is located only some 3 kilometers from the port site," Lukas said.

Papua Mining Agency head Bangun Manurung said the smelter would not use the planned PLTA Urumuka plant to supply its need for electricity, as the power plant was still in the planning process and would need a long time to complete.

"There is no guarantee that in five years PLTA Urumuka will be operating already. That's why we will use another technology," said Manurung, who is also chairman of the smelter development team.

He said the smelter facility would use Canadian technology that was developed by ENFI, a subsidiary of the NFC Non Ferrous China Company, and use a gas-fueled power plant (PLTG).

"This is a continuous process system; the heat produced can be used to generate electricity so that it will not need a huge supply of electricity," Manurung said. The facility will need a total electricity supply of up to 50 megawatts (MW), in which 10 MW is for the smelter, 20 MW is for the refinery and the remaining 20 MW is for the utilities. The PLTG will be built near the smelter and refinery, using GE technology.

The whole compound of the facility will hold a copper smelter, a copper refinery, a gold and silver refinery, a sulfate acid factory, an oxygen factory and a steam-fueled power plant (PLTU) using coal as raw material or a PLTG. The project is to be funded by the Bank of China.

Manurung said that within the next six months his team would work on the licenses for the smelter development site as it would also be developed into an integrated industrial area for Timika.

"Most importantly, within the next six months, hopefully, the MoU [memorandum of understanding] with PT Freeport on its concentrate supply for the smelter will be already done. If Freeport does not supply the concentrate it will raise a big question mark," Manurung said. -

Source: http://www.thejakartapost.com/news/2015/03/06/freeport-refine-some-copper-concentrate-papua-smelter.html

FM's pacific tour concludes as Papua issue continues to bubble

Jakarta Post - March 4, 2015

Bagus BT Saragih, Jakarta – Foreign Minister Retno LP Marsudi has completed her one-week tour of four pacific nations, including three members of the Melanesian Spearhead Group (MSG), which has just received another membership application from a Papuan resistance group.

Retno arrived in Jakarta on Wednesday after concluding her diplomatic trip to New Zealand. Previously, she visited and met with the foreign ministers of three MSG member states: Papua New Guinea, the Solomon Islands and Fiji.

The MSG was said to be gearing up to discuss the United Liberation Movement of West Papua's (ULMWP) full membership application, which was submitted to MSG's headquarters in Port Vila, Vanuatu, last month.

The ULMWP is a grouping of three West Papuan groups, namely the Federal Republic of West Papua, the West Papua National Parliament and the West Papua National Coalition for Liberation (WPNCL). The MSG Leaders' Summit in Port Moresby, last year, rejected WPNCL's membership application.

But official statements from the Indonesian Foreign Ministry did not indicate any relationship between Retno's tour and ULMWP's bid to become MSG's sixth full member.

Retno and her Melanesian counterparts only discussed "Indonesia's commitment to the US$20 million capacity-building program for MSG countries."

Papua New Guinea's Foreign Minister Rimbink Pato, the Solomon Islands' Milner Tozaka, and Fiji's Ratu Inoke Kubuabola, also agreed that, "as part of Indonesia's greater engagement in MSG, the ministers will intensify communication on issues relating to the MSG."

The ministers will also "promote regular consultations, contacts and exchanges of visits among Indonesia and MSG members," according to the statement.

Tozaka also extended an invitation for Retno to attend the MSG meeting as an observer in July in the Solomon Islands.

In December 2014, the ULMWP was established in Port Vila, the capital of Vanuatu which has frequently criticized alleged human rights abuses in West Papua and Papua provinces.

Vanuatu also refused to take part in a mission of high-ranking representatives of the MSG nations to visit Jakarta, Maluku and Papua, in January, last year.

The invitation succeeded in wooing MSG member states and persuaded them to recognize the latest developments by the Indonesian government in the country's most remote and backward provinces of Papua and West Papua.

In New Zealand, Retno and her counterpart Murray McCully agreed to enhance the two countries' relationship in many sectors including agriculture, trade, investment and defense. (nfo)

Source: http://www.thejakartapost.com/news/2015/03/04/fm-s-pacific-tour-concludes-papua-issue-continues-bubble.html

Fiji: Many support ECREA petition backing justice for West Papua

Pacific Media Centre - March 4, 2015

Suva (The Fiji Times/Pacific Media Watch) – About 1000 signatures supporting West Papuan self-determination have been collected by the Ecumenical Centre for Research, Education and Advocacy (ECREA).

This is in solidarity with the West Papua people who have applied to officially join the Melanesian Spearhead Group.

ECREA director Sirino Rakabi said while petitions had been sent to all their networks and friends, forms had also been distributed to all the 56 divisions of the Methodist Church.

"We have received news from our civil society organisation network that many people throughout Fiji are supporting and signing the petition," Rakabi said.

"We have disseminated forms already and have emailed soft copies to those that requested online.

"This week, we will be disseminating petitions with the DVDs covering the march and launch of the 'Fiji Solidarity Movement for West Papua's Freedom' to all Christian denomination headquarters, theological and Bible schools and also to NGOs in our network.

"We are also working on a documentary to be circulated virally for people to be aware of the oppression and injustices happening in West Papua."

ECREA hopes to submit these petitions in May to Prime Minister Voreqe Bainimarama. Last Friday, ECREA staged its first public awareness march on the West Papua campaign to coincide with World Social Justice Day.

Source: http://www.pmc.aut.ac.nz/pacific-media-watch/fiji-many-support-ecrea-petition-backing-justice-west-papua-9145

PNG media watchdog queries West Papua 'gagging' order over during visit

ABC Radio Australia - March 4, 2015

Papua New Guinea's media watchdog has demanded an explanation for why local journalists were blocked from asking questions about West Papua during an official visit by Indonesia's foreign minister, Retno Marsudi.

Ms Marsudi has just wrapped up a three-country tour through the Pacific aimed at strengthening relations with PNG, Solomon Islands and Fiji.

Journalists in Port Moresby were told by PNG officials they were not to raise the sensitive issue of the Indonesian province, where a pro- independence movement has existed for decades.

Alexander Rheeney, the president of the Media Council of Papua New Guinea, has demanded clarification from PNG's foreign ministry.

"We are concerned local reporters were actually gagged from asking any questions relating to the issue," he told Radio Australia's Pacific Beat.

"The West Papua issue will continue to be a story of interest not just to ordinary Papua New Guineans but to the region and the world as well.

"The fact that the department did give out instructions asking reporters not to ask questions is unfortunate.

"I would welcome an opportunity to sit down with the PNG department of foreign affairs to look for a way forward." Solomons reporters also silenced on West Papua

Ofani Eremae, a senior journalist at the Solomon Star newspaper, said the media had initially been allowed to attend a session with Ms Marsudi but the invitation was withdrawn at the last minute.

"West Papua is a human tragedy; it is a human rights issue that Indonesia can no longer keep secret," he said

"When you look at how both the Indonesian and Solomons government kept the media from engaging in this visit, it is something that is quite sad especially when it comes to freedom of the press. "I'd like to think that if Indonesia really wants to get engaged with Melanesia and with the Pacific, they should open up to the media, take questions from the media, because I think that is the right thing to do."

PNG prime minister Peter O'Neill said the issue of West Papua had been discussed during Sunday's meeting with Ms Marsudi and PNG foreign minister Rimbink Pato.

"After many years of bilateral engagement, ours is a relationship where we can express our views in an open and honest dialogue," Mr O'Neill said in a statement.

"We appreciate Indonesia's understanding that our concern on this issue relates to human rights, and this is not linked to issues of sovereignty.

"I further expressed my desire for Indonesia to support the application of the Papua provinces to have membership in the Melanesian Spearhead Group (MSG)."

The MSG leaders are expected to meet to make a decision in the middle of the year. Apart from Vanuatu, governments in the Pacific in the past have been reluctant to raise human rights issues or speak on behalf of Melanesian separatists.

Last month, Mr O'Neill told a PNG leaders summit that the time had come to highlight the "oppression and brutality" faced by Melanesians in Indonesia's West Papua.

Source: http://www.abc.net.au/news/2015-03-03/journalists-told-not-to-raise-west-papua-issue-indonesia-visit/6278126

Soldiers on trial for supporting armed groups

Jakarta Post - March 3, 2015

Jayapura – Three Indonesian Military (TNI) soldiers at Cenderawasih Military Command are on trial charged with providing ammunition to armed civilian groups in remote Papua.

The trials of Second Sergeant Martinus Jikwa, village supervisory non- commissioned officer (Babinsa) at Lanny Jaya Military Command, Second Sergeant Arsyad Wagab, and Babinsa member at Kurima Military Command First Private Darius Kogoya were heard separately by the Jayapura military tribunal on Monday.

Military prosecutor Maj. Agung, said the three defendants had supplied ammunition to armed civilian groups and charged them with violating Emergency Law No. 12/1951 on firearms.

The trial was adjourned to March 5 to hear witness testimonies, such as that of former policeman First Brig. Tanggap Jikwa.

The involvement of TNI troops in the supply of ammunition to armed civilian groups was uncovered after the police were able to arrest Tanggap Jikwa, who was stationed at Nduga Police station, on Oct. 26, 2014, in Wamena.

Source: http://www.thejakartapost.com/news/2015/03/03/soldiers-trial-supporting-armed-groups.html

NZ MP slams government as Indonesian minister visits

Radio New Zealand International - March 3, 2015

The Indonesian Foreign Minister is visiting New Zealand today and meeting her counterpart Murray McCully, amid calls in Parliament for them to discuss human rights abuses in Papua.

Retno Marsudi has just completed a tour of Papua New Guinea, Solomon Islands and Fiji. Last month, the United Liberation Movement for West Papua formally applied for membership of the Melanesian Spearhead Group.

The New Zealand Greens MP, Catherine Delahunty has raised in Parliament the matter of human rights abuses in Papua and says it's hypocritical for the government to have the guts to address abuses in Iraq while ignoring closer neighbours.

"This is a quiet war against the people of West Papua. It's very disappointing to have on the one hand the government saying we must participate in a war to protect human rights and yet the war in our region, the attack on West Papuan people, they are really not doing anything about it."

Catherine Delahunty says it's disappointing there was no reaction to the slaughter of school children wearing uniforms in Papua in December.

Maire Leadbeater, from West Papua Action Auckland, says the PNG Prime Minister raised documented violations, and Mr McCully should do the same.

"Papua New Guinea's Prime Minister Peter O'Neill didn't say anything about necessarily wanting a change of sovereignty or anything but he's talking about a voice at the table, I think, of the Melanesian Spearhead Group. And why should that not be granted, because it's very clear that that's what the united leadership of West Papuan leaders want."

Maire Leadbeater says Indonesia sits at the MSG as an observer, and it's fitting that the Melanesian provinces have the same status.

Source: http://www.radionz.co.nz/international/pacific-news/267639/nz-mp-slams-government-as-indonesian-minister-visits

Gas-supply woes hamper investment in Papua

Jakarta Post - March 3, 2015

Raras Cahyafitri, Jakarta – Uncertainty over the gas supply for planned industrial development in the eastern part of the country, particularly Papua and West Papua, has hampered the government program aimed at accelerating the realization of investment in the area, says the head of the Investment Coordinating Board (BKPM).

BKPM head Franky Sibarani made the statement on the sidelines of a visit to Manokwari, West Papua over the weekend.

"Several projects planned in the area, such as those involving Pupuk Indonesia [a fertilizer firm] and Ferrostaal [German firm Ferrostaal AG] have been delayed because of the gas-supply problem. We need support to debottleneck the issue so that we can encourage investment," Franky said.

He added that the price of gas was also a specific issue bottlenecking the realization of Ferrostaal's planned investment in West Papua.

The German firm previously said that it had planned to develop a petrochemical plant in West Papua with an estimated cost of US$900 million. The company initially planned to start construction in 2013 and would have finished the project by 2016. However, the planned project is now stalled.

Papua and West Papua hold natural resources that can support energy for industrial development in the country. Teluk Bintuni regency, for example, has a significant amount of gas resources. The regency is home to the Tangguh LNG plant project involving the development of six gas fields in Wiriagar, Berau and Muturi blocks. The Tangguh LNG is operated by BP Berau Ltd., which is now working on the development of the plant's Train 3.

BP Berau has committed 40 percent of the LNG to be produced at Tangguh Train 3 for domestic-market allocation. BP Berau and state-owned electricity firm PLN previously signed a memorandum of understanding (MoU) highlighting that the Tangguh LNG operator would provide LNG to PLN.

"The 40 percent also includes the allocation of 20 mmscfd [million standard cubic feet per day] gas for the West Papua province, including Bintuni and Fakfak, which can use the supply to fuel electricity," said Rudianto Rimbono, a spokesman for the Upstream Oil and Gas Regulatory Task Force (SKKMigas).

Given the commitments, no more gas can be allocated for other industries unless new resources are found.

According to Rudianto, new gas supply may come from Kasuri block, which is currently operated by Malaysian Genting Oil. "However, Genting Oil is still in the exploration stage and we are still waiting for its POD [plan of development]," Rudianto said, adding that SKKMigas expected Genting Oil's exploration in the West Papuan block to continue despite the declining price of oil, which has affected oil and gas firms' investment calculations.

Investments in Papua and West Papua, which are the country's eastern most provinces, have been sluggish in past years. According to BKPM figures, foreign investment in Papua province was $1.26 billion in 2014, down from $2.35 billion a year earlier. Meanwhile, investment by domestic players was worth Rp 249.9 billion last year, a drop from Rp 584.25 billion in 2013.

Domestic investment in West Papua province also slipped to Rp 100.1 billion last year from Rp 303.95 billion in 2013. Meanwhile, foreign investment in the province stood at $153.3 million in 2014, a significant rise from $54.16 million.

Source: http://www.thejakartapost.com/news/2015/03/03/gas-supply-woes-hamper-investment-papua.html

For Indonesia's foreign minister, Melanesian shuttle diplomacy

Jakarta Globe - March 2, 2015

Jakarta – Indonesian Foreign Minister Retno L.P. Marsudi is rushing to put out diplomatic fires across the Pacific with back-to-back visits to neighbors Papua New Guinea, the Solomon Islands and Fiji – three members of the intergovernmental organization known as the Melanesian Spearhead Group that have threatened in recent weeks to recognize West Papua as an occupied member state.

Retno's trip comes as MSG leaders are set this month to consider a formal membership application from the United Liberation Movement for West Papua, a joint resistance group formed in December last year. Its leaders submitted their application to the MSG's Secretariat in Vanuatu on Feb. 4.

The ULMWP is comprised of leaders from the Federal Republic of West Papua, West Papua National Parliament and West Papua National Coalition for Liberation.

Indonesia gained special observer status in the MSG under former president Susilo Bambang Yudhoyono.

Papua New Guinean Prime Minister Peter O'Neill says he raised the issue of human rights in West Papua and Papua in talks with Indonesia's foreign minister, Radio New Zealand reported.

O'Neill also urged the Indonesian government to support the application by the Papuan provinces to join the MSG, according to PNG Loop. O'Neill insisted that his views on Papua were to do with human rights and "not sovereignty."

The statements marked a significant break from Papua New Guinea's previous stance of recognizing Indonesian sovereignty over West Papua and remaining silent on human rights abuses there.

"Sometimes, we forget our own families, our own brothers, especially those in West Papua. I think as a country, the time has come to speak for our people about the oppression there," O'Neill told cabinet ministers on Feb. 4, as quoted by ABC News.

"Pictures of brutality of our people appear daily on social media and yet, we take no notice. We have the moral obligation to speak for those who are not allowed to talk. We must be the eyes for those who are blindfolded."

However, Papua New Guinea's Foreign Minister Rimbink Pato said prior to his press conference in Port Moresby with Retno that neither he nor his counterpart would talk with reporters about West Papua issues – and reporters should not ask. Press conferences in Fiji and the Solomon Islands were similarly silent on the issue.

While Fiji's government and opposition both voiced their support for West Papua's application earlier last month, Fijian leaders' tune changed shortly thereafter.

On Feb. 11, Papua New Guinea Today reported Fiji's foreign minister, Ratu Inoke Kubuabola, and opposition leader Ro Teimumu Kepa met with exiled West Papuan activist Octavianus Mote. Mote said Fiji's leaders expressed their willingness to support West Papua's bid.

"I'm very pleased with the reception to the visit and look forward to further talks with our Fijian friends in March," he said. "The CSO community and the Methodist Church in Fiji have been very gracious in offering to write to the MSG Secretariat in support of our request for membership."

Mote added that Vanuatu had also signaled its support. However, on Feb. 16, the foreign minister appeared to equivocate under questioning from opposition whip Ratu Isoa Tikoca. "I cannot confirm if Fiji will support the application of West Papua," Ratu said, as reported by the Fiji Times.

"The application to be considered by senior officials of the MSG and then it goes out to the foreign ministers and then the MSG leaders. We have to follow the process so I can't confirm whether Fiji will support the application."

Retno's primary bargaining chip in her whirlwind tour last week would appear to be money. Indonesia declared its commitment to disbursing a total of $20 million in financial assistance to support capacity building of MSG nations. Meetings to discuss technical details of usage and disbursement of the funds are expected later this year.

The Foreign Ministry said that each of Retno's meetings yielded "intensified cooperation" regarding MSG issues.

Source: http://thejakartaglobe.beritasatu.com/news/indonesias-foreign-minister-melanesian-shuttle-diplomacy/

Fiji reaches agreement with Jakarta as MSG bid looms

Radio New Zealand International - March 2, 2015

The Foreign Ministers of Indonesia and Fiji have agreed to intensify consultations together within the Melanesian Spearhead Group framework.

Indonesia, which has special observer status in the MSG, sent its minister Retno Marsudi to three full member MSG countries, Papua New Guinea, Solomon Islands and Fiji late last week.

Johnny Blades reports.

"Retno Marsudi's trip has come as MSG leaders consider a formal membership application by West Papuans.

Following her meeting with Fiji's Ratu Inoke Kubuabola, local media reports that Fiji and Indonesia are further enhancing their bilateral relations.

They agreed to promote regular contacts and exchange visits between Indonesia and MSG members. However no mention was made about the issue of West Papua and the MSG application.

Earlier, following Retno Marsudi's meetings with PNG's Foreign Minister Rimbink Pato in Port Moresby, local media were told not to ask about West Papua."

Source: http://www.radionz.co.nz/international/pacific-news/267505/fiji-reaches-agreement-with-jakarta-as-msg-bid-looms

Aceh

Residents caned for gambling in Aceh

Jakarta Post - March 7, 2015

Banda Aceh – The sharia police in Aceh Besar regency, Aceh, conducted a public caning of six residents on Friday for cock-fight gambling.

"They were caught in Meunasah Krueng village in early January. They received the caning punishment after the Sharia Court found them guilty and decided to cane them in public," said Sharia Police chief Muhammad Rusli.

Police seized Rp 2,500,000 (US$190) and four roosters, which the gamblers had used for the cock-fighting, from the men who were aged between 30 and 40 years old.

They were caned on a platform erected by the government in front of hundreds of mosque-goers after Friday prayers.

According to Rusli, each of the defendants received five lashes. The court had reduced their sentences by a lash each to account for time already served.

"They should have received six lashes of the cane, but as they had served a month in detention, the judges reduced the lashes to five," said Rusli, adding that the defendants were caned for violating Edict No. 13/2002 on gambling.

Source: http://www.thejakartapost.com/news/2015/03/07/islands-focus-residents-caned-gambling-aceh.html

Human rights & justice

Indonesian soldiers ordered to watch 'The Look of Silence'

Jakarta Globe - March 4, 2015

Semarang – Hundreds of members of the military command in Central Java's capital, Semarang, attended the screening of "Senyap" ("The Look of Silence") last week by award-winning American director Joshua Oppenheimer – a documentary movie on Indonesia's bloody past of anti-communist purge, which has often been blamed on the Indonesian Military.

The screening was held about the same time that "Look of Silence" was awarded a Bodil Award from the Danish Film Critics Association for best documentary film.

The screening was held in the headquarters of the district military command, attended by the commander, Lt. Col. Taufik Zega, as well as chiefs of subdistrict military units under his supervision.

"The screening was aimed at clarifying the intention of the documentary production, in order to avoid misunderstandings," Central Java's Diponegoro Military Command said on its website, although it stopped short of explaining what misunderstandings.

"The screening was part of efforts to examine facts about what actually happened in 1965, because many people have conflicting opinions in regards to what happened in 1965," it added.

By watching the movie, soldiers were expected to be able to explain to the public the content of the movie and its connections with the Indonesian Military, when confronted about the issue, the website added.

Indonesia's anti-communist purge in 1965-66, during which at least 500,000 people were estimated to be killed, was led by the Indonesian Military, following a failed coup attempt by the Indonesian Communist Party (PKI), which has been banned since then.

"Look of Silence," which first screened last year, is a follow-up to Oppenheimer's Oscar-nominated documentary "Jagal" ("The Act of Killing)," released two years before.

While "The Act of Killing" explores the anti-communist pogrom by getting the perpetrators to re-enact their crimes, "Look of Silence" looks at the massacre through the eyes of its victims.

In 1965, Ramli was murdered as a teenager for his alleged support of the Indonesian Communist Party (PKI). The film crew follows his brother, Adi Rukun, who was born 1968, as he meets and confronts Ramli's murderers and their families.

When "The Act of Killing" was released in 2012, it was screened in secret in Indonesia, for fear of government retaliation. "The Look of Silence," though, premiered with a public viewing in Jakarta on Nov. 10 – Heroes Day – last year.

Indonesia's National Commission on Human Rights (Komnas HAM) has reaffirmed its support for the screening of the movie throughout Indonesia, stating that this is a part of human rights education and national reconciliation in the nation.

Nevertheless, the movie has met with rejection from some groups, such as the hard-line Islamic People's Forum, whose members stormed the campus of Gadjah Mada University (UGM) in Yogyakarta in December last year while a student organization was screening the movie

The protesters mistakenly argued that the film promoted communism – a "known enemy of Islam" – and its return to Indonesia.

Source: http://thejakartaglobe.beritasatu.com/news/indonesian-soldiers-ordered-watch-look-silence/

Political parties & elections

Golkar infighting continues despite ruling

Jakarta Post - March 6, 2015

Margareth S. Aritonang, Jakarta – The internal rift within the Golkar Party is dragging on, with the camp of Aburizal Bakrie filing a lawsuit at the West Jakarta District Court to challenge the ruling of the Golkar dispute tribunal that has favored the rival camp led by Agung Laksono.

Earlier this week the party's dispute tribunal upheld the leadership of Agung Laksono, a former coordinating minister for people's welfare, with two out of the four members of the tribunal recognizing Agung's chairmanship, while the two other members of the tribunal declined to issue a recommendation.

Dissatisfied with the hung decision, Aburizal's camp has defied the pledge that both camps would accept whatever was decided by the tribunal.

Representing Aburizal's side, Idrus Marham, the camp's secretary-general, told reporters his side had withdrawn its petition with the Supreme Court for a cassation of an earlier verdict issued by the West Jakarta District Court on the dispute, which had recommended the factions resolve their dispute internally, before officially filing a fresh lawsuit with the court.

Idrus emphasized that the fresh suit was aimed at encouraging the West Jakarta District Court to look into the core of the dispute before a legal process could kick off. "All the party's executives, as well as members throughout the country, expect the bickering to immediately come to an end," Idrus said.

Meanwhile, a lawyer for Aburizal's camp, Yusril Ihza Mahendra, said that the suit, similarly to an earlier lawsuit, called on the court to legitimize the leadership of Aburizal, which was sealed during a national congress held in Bali in September last year.

Emphasizing that the internal conflict within Golkar would continue for sometime, in spite of the tribunal's ruling, Yusril thus called on Law and Human Rights Minister Yasonna H. Laoly to refrain from using his authority to intervene in the matter.

"I hope the law and human rights minister will carefully handle his job so that he does not make any mistakes," Yusril said.

The Aburizal camp made the move only one day after representatives from Agung's camp came to Yasonna's office, with all the necessary documents, to register Agung's leadership of Golkar.

Yasonna, who was criticized for intervening in a similar power struggle within the United Development Party (PPP), has yet to comment on the matter.

Separately, Golkar lawmaker Agun Gunandjar Sudarsa, who is a member of the Agung camp slammed Aburizal's move to challenge the party's tribunal decision, a move he referred as a threat to the unity of the party.

"It will prolong the problem. The condition of the party will only get worse because they are hungry for power," Agun said.

Agun said further that he deeply regretted Aburizal's lawsuit as the two camps could in fact join hands in preparing the party's programs for the future, particularly approaching the simultaneous regional elections. "We would have ended the conflict by now if we really cared about the party," he said.

Source: http://www.thejakartapost.com/news/2015/03/06/golkar-infighting-continues-despite-ruling.html

Internal tribunal fails to settle ongoing squabble for Golkar

Jakarta Globe - March 3, 2015

Hotman Siregar & Robertus Wardhy, Jakarta – The rift dividing Indonesia's oldest political party, Golkar, continued to widen as two rival factions drew different interpretations of a verdict issued on Tuesday by Golkar's internal tribunal concerning the party's dual leadership.

Two of the four judges in the tribunal, Andi Mattalatta and Djari Marin, have declared the executive board chaired by former chief welfare minister Agung Laksono as Golkar's legitimate leaders.

Judges Muladi and Natabaya chose to remain neutral, saying the ongoing tussle over the party's leadership should be settled in a court of law.

Choosing to accept the more favorable response, Agung's faction "welcomed" the tribunal's decision and said it would report the results to the Justice Ministry – which had also suggested that the factions bring the matter to court.

"Tomorrow [Wednesday] morning we will register [our executive board] with the Justice Ministry. We hope this will immediately validate [our leadership]," Agung told reporters after the tribunal hearing at Golkar's headquarters in West Jakarta.

The Central Jakarta District Court last month threw out a lawsuit filed by Agung and his followers that sought to have the party's Bali congress, where incumbent Aburizal Bakrie was re-elected for a second term, deemed invalid.

A separate congress held in Ancol, North Jakarta, saw anti-Aburizal party members elect Agung as chief in early December, mere days after the Bali event.

The Central Jakarta District Court on Feb. 2 ordered the feuding factions to first resolve their dispute through an internal tribunal, until which time the court had no authority to hear the lawsuit.

The West Jakarta District Court last week rejected a separate lawsuit filed by Aburizal's faction against Agung's leadership claims, issuing a similar ruling. Aburizal's supporters have appealed to the Supreme Court.

Bambang Soesatyo, the treasurer of Aburizal's faction, claimed the congress had resulted in a draw and no one had won Golkar's chairmanship. "The Ancol camp did not win. The result was a draw, so the tribunal is suggesting both parties to settle the matter in court," Bambang said.

The ongoing conflict was triggered by last April's legislative elections, in which Golkar finished second behind the Indonesian Democratic party of Struggle (PDI-P), a longtime political rival. Golkar then failed, for the first time ever, to get a single name on a ticket in the presidential ballot in July.

Agung's camp blamed Aburizal's leadership for both failures, particularly his insistence that no one but he be allowed to stand as the party's presidential candidate. Aburizal then drew further ire from the party ranks by endorsing former Army general Prabowo Subianto, who eventually lost to the PDI-P's Joko Widodo.

Source: http://thejakartaglobe.beritasatu.com/news/internal-tribunal-fails-settle-ongoing-squabble-golkar-leadership/

PAN crisis looms as national congress ends

Jakarta Post - March 3, 2015

Margareth S. Aritonang, Nusa Dua, Bali – Contrary to earlier vows to remain united, the rift between rival camps within the National Mandate Party (PAN) has only deepened a day after the party elected Zulkifli Hasan as its new chairman.

Two prominent figures within Hatta's circle, current deputy chairman Drajad Wibowo and leader of PAN's faction at the House of Representatives, Tjatur Sapto Edy, who had actively campaigned for Hatta's second term as chairman, announced their resignations on Monday following Hatta's loss in a tight race a day earlier.

While Tjatur told reporters that he was considering tendering his resignation as leader of PAN's faction at the House without elaborating further, Drajad said that he would leave the party's chairmanship structure because of Hatta's loss.

"I've had this planned since earlier in the year. I decided that I would distance myself from the party's leadership board if Bang [brother] Zul [Zulkifli's nickname] took over the chairmanship," Drajad said on the sidelines of PAN's national congress in Nusa Dua, Bali, on Monday.

"But I will still be an active member of the party. I can still fight for political aspirations in PAN" he added.

PAN carried out the last of its three-day congress' activities on Monday. Members engaged in formulating the party's five-year course of action as well as elected a new chief of the party's high assembly.

However, unlike the previous two days when the congress' venue was packed with supporters of both Zulkifli and Hatta, the venue was half empty during Monday's session as Hatta's camp reportedly refused to attend.

Hatta supporters claimed they were prohibited from attending the closing session, an accusation the rival camp quickly refuted. A spokesperson for Zulkifli's team, lawmaker Yandri Susanto, ensured that "all were invited to attend but apparently not everyone could make it".

The Monday session saw the unchallenged election of senior politician Soetrisno Bachir as leader of the high assembly, taking over the position from cofounder Amien Rais, who has been appointed chairman of the party's honorary council, a new body that was set up on Monday.

The installment of both individuals contradicted Zulkifli's earlier remarks, which highlighted a promise to equally involve elites from both fighting factions as a means to put an end to the rivalry between the two camps under his leadership, as both Amien and Soetrisno had voiced support for Zulkifli.

Zulkifli has denied favoritism in the installment of the two individuals and to prevent tensions from further escalating following his victory, Zulkifli said he would meet with Hatta to discuss the latter's recommendations for members of the party's central board.

"I must emphasize that PAN remains united. Differences are normal but we are fine. I will discuss the matter with Pak Hatta. I believe everyone will stay together for PAN," Zulkifli said.

Source: http://www.thejakartapost.com/news/2015/03/03/pan-crisis-looms-national-congress-ends.html

PAN will remain in opposition, new chairman Zulkifli says

Jakarta Globe - March 2, 2015

Markus Junianto Sihaloho & Yustinus Paat, Nusa Dua, Bali/Jakarta – Zulkifli Hasan, the newly elected chairman of the National Mandate Party (PAN), asserted on Monday that his party would stay in the opposition, dismissing speculation that it considered crossing over to the pro- government side.

Zulkifli, who won the leadership race against incumbent Hatta Rajasa in Bali on Sunday, said both he and the former chief economic minister had close ties with the opposition Red-White Coalition (KMP).

"Hatta and I are equally close to the KMP. So there will be no changes [in our relations] with the KMP," Zulkifli said on the sidelines of PAN's national congress in Nusa Dua, Bali, on Monday.

"Hatta is close to Prabowo, and so am I. [I'm close] to Ical, too; we even came from the same hometown," he added, referring to Prabowo Subianto, chairman of the Great Indonesia Movement Party (Gerindra) and Aburizal "Ical" Bakrie, chairman of Golkar Party.

Gerindra and Golkar are also members of the opposition bloc, which consists of five political parties. Zulkifli added that he was also close to Djan Faridz, leader of the pro-KMP faction in the United Development Party (PPP).

The PPP – a former KMP member – supported Prabowo's candidacy during last year's presidential election, which was won by Joko Widodo of the Indonesian Democratic Party of Struggle (PDI-P).

Following a disagreement with the rest of the KMP during the election for speakers of the People's Consultative Assembly (MPR) in October, the PPP jumped ship to the pro-government Awesome Indonesia Coalition (KIH), led by the PDI-P.

Zulkifli was elected as MPR speaker that month. The PPP, meanwhile, has since then split into two factions, although it is now formally a member of the KIH. When asked what he would do if PAN was asked to join President Joko Widodo's administration, Zulkifli said, "[remaining] outside government is more respectable."

He added, though, that this did not mean that PAN would become hostile toward the government, as was the impression after the KMP's aggressive maneuvers in the national legislature following their bitter defeat in the presidential election.

"If the government is pro-people, we must support them; in order to improve the people's welfare. If they are against the people, though, surely PAN will criticize the government," the new chairman said.

Zulkifli won the party leadership by a narrow margin. He collected 292 votes over Hatta's 286, with six votes declared invalid. His win has been attributed to PAN founder and chief patron Amien Rais's support for him.

Although throwing his support behind Hatta during last year's presidential race as Prabowo's running mate, Amien has since been distancing himself from Hatta.

"If Hatta doesn't create change, Zul can step forward and be a symbol of renewal," Amien was quoted as saying in January. "For me, five years [of Hatta as party leader] is enough. There should be regeneration soon, but it all depends on the congress." Hatta served as the PAN chairman from 2009 to 2014, during which he also served as the coordinating minister for the economy under former president Susilo Bambang Yudhoyono.

Speculation has it that Hatta had grown too close to Yudhoyono, the chairman of the Democratic Party, and that Amien worried Yudhoyono was using Hatta to steer PAN in a direction he desires.

The Democratic Party and Prosperous Justice Party (PKS) are both other members of the KMP.

Firdaus Syam, a political observer of the National University (UNAS), said Monday that Zulkifli's win, along with his close relationship with Amien, had put an end to the possibility that PAN would ever jump ship to the government.

Amien, along with Prabowo and veteran Golkar politicians such as Akbar Tandjung, are seen as chaperons of the KMP.

The KMP issue aside, Firdaus praised PAN's election of a new chairman, calling it a democratic process with minor conflicts and a good example for a modern political party.

Hatta has called on his supporters in PAN to accept his defeat and to maintain their loyalty to the party.

"We respect [the election result]. We'll give our support [to the winner]. Let's stick together. If we don't, our party will fall apart," he told congress participants on Monday.

Firdaus contrasted PAN's peaceful and orderly election with the highly divisive leadership struggles in the PPP and Golkar last year, which resulted in major internal rifts afflicting Indonesia's two oldest parties. He also compared PAN's internal process with that of the PDI-P and the Democratic Party, which he has described as examples of regeneration failures.

The PDI-P and Democratic Party both look set to let their founders and current chairpersons take the reins for another five-year period. Both parties are slated to hold national congresses this year.

"The PDI-P and the Democrats should follow the example of PAN's congress. The chairperson doesn't have to be the founder or the party's central figure," Firdaus said.

Source: http://thejakartaglobe.beritasatu.com/news/pan-will-remain-opposition-new-chairman-zulkifli-says/

New PAN chairman must make clear what party stands for: Analysts

Jakarta Globe - March 2, 2015

Yustinus Paat, Jakarta – The National Mandate Party (PAN), should strengthen its political appeal under new chairman Zulkifli Hasan and take advantage of the ongoing identity crises that other Indonesian political parties have to deal with, analysts say.

"As the new chairman, Zulkifli should make clear the party's position, identity, platform, and branding so that PAN can truly become an independent and large party," Hamdi Muluk, a political communications expert at the University of Indonesia (UI), told the Jakarta Globe on Monday.

Hamdi suggested that PAN solidify its support base and stop relying on other parties or political coalitions. "PAN shouldn't just be a follower or an insignificant part of the Red and White coalition [KMP]," Hamdi added. "That will destroy PAN."

At the same time, PAN should clarify its party identity and policy platform to attract more supporters, the analyst suggested.

"It is clear to me that Indonesian political parties are struggling with an identity crisis now. That is a big challenge for Zulkifli even as he puts in more effort to attract outside supporters," Hamdi said. "One of the measures of a successful party leader is getting his party a high number of votes at elections."

During the 2014 elections, PAN only got 8.8 percent of the total tally, equivalent to 48 seats in the House of Representatives.

Andar Nubowo, a political analyst from survey and research agency IndoStrategi, said that Zulkifli must improve the relationship between the party and Muhammadiyah, Indonesia's second-biggest Islamic organization, to attract more supporters.

"Muhammadiyah's supporter base is very important for PAN so I hope Zulkifli can help bridge the two sides," Andar said. The founding of PAN was an outcome of Muhammadiyah's 1998 congress.

Andar also noted that Zulkifli must maintain PAN as a political party that accommodates political aspirations from every level of society.

"PAN must rebrand its political orientation from exclusively catering to the middle classes to the lower classes, and from a modern Islam-based party to nationalist groups," said Andar.

Source: http://thejakartaglobe.beritasatu.com/news/new-pan-chairman-must-make-clear-what-the-party-stands-for-analysts/

MPR speaker elected new PAN chief

Jakarta Post - March 2, 2015

Margareth S. Aritonang, Nusa Dua, Bali – National Mandate Party (PAN) cofounder and senior politician Amien Rais has illustrated his strong grip on the party, with a successful attempt to sway support for his in-law, Zulkifli Hasan, ensuring the latter is the new chairman of the party.

Zulkifli, the current People's Consultative Assembly (MPR) speaker and former forestry minister, beat incumbent Hatta Rajasa in a close race by securing 292 votes, six votes ahead of Hatta, in a national congress on Monday night.

By sealing Monday's win, Zulkifli, whose daughter Futri Zulya Safitri married Amien's son Ahmad Mumtaz Rais, has matched Amien, who led the party and served as MPR speaker from 1999 to 2004.

Once a progressive icon of change from Muhammadiyah, Amien founded the party in 1998 in an effort to reform former president Soeharto's New Order regime.

The victory also confirms the party's stance, with it likely remaining in the opposition Red and White Coalition, which Amien helped build during the presidential election last year.

"[Thank God]. This is not my victory, but the party's victory," said Zulkifli after the vote.

Although the congress was marred by an earlier incident, due to the elimination of eight of the party's local executives for having breached the registration process, the voting went smoothly.

In addition, Amien had earlier attacked Hatta by calling him "a liar" as the former coordinating economic minister once said to a party forum that he would attend a meeting with the Red and White Coalition, while in fact he met with President Joko "Jokowi" Widodo.

When Zulkifli's lead became apparent, Hatta shook Zulkifli's hand and embraced him minutes before the final count was called. However, Hatta did not greet Amien before he left the congress room.

"The party is obviously divided. Everything is divided into two and the two competing groups, which is a lot like the [ruling] Great Indonesia Coalition and the [opposition] Red-and-White Coalition, may have clashed again had we not made a decision quickly," said Tjatur Sapto Edy, deputy chairman of the congress' steering committee.

As the in-law of Democratic Party chief Susilo Bambang Yudhoyono, Hatta had indicated he would follow the lead of the country's former president in taking "a neutral stance" on the national political scene, which meant that PAN would have preferred a loose relationship with the opposition coalition and may have supported government allies in the Great Indonesia Coalition.

Tjatur added that the committee, with consent from both Hatta and Zulkifli, had decided to skip some procedures to speed up the voting session, over fears of further conflict after the morning incident.

The committee later exempted Hatta from elaborating on his achievements when leading the party from 2010-2015 before all leaders of the party's branches throughout the country, and instead required that he submit a written report.

PAN is expected to conclude the three day congress with a ceremony on the party's five-year course of action on Monday.

Source: http://www.thejakartapost.com/news/2015/03/02/mpr-speaker-elected-new-pan-chief.html

Stress soars for PAN at congress

Jakarta Post - March 1, 2015

Margareth S. Aritonang, Nusa Dua, Bali – Allegations of vote buying have marred the National Mandate Party's (PAN) national congress, where party executives are expected to vote for a new chairman, despite earlier claims to promote "a clean and fair fight" by the two competing candidates, incumbent Hatta Rajasa and challenger Zulkifli Hasan.

Soon after the party's fourth national congress began in Nusa Dua, Bali, on Saturday, the campaign teams of the two candidates stepped up efforts to take what many called "safety measures" to ensure that the leaders of PAN's municipal and provincial branches voted for their selected candidates. A vote for the party's chairmanship is expected to take place on Sunday.

A member of Zulkifli's team said his camp had stepped up efforts to safeguard the votes of 368 leaders of PAN's branches at the provincial, regency and municipal levels who had pledged to give their support to the current People's Consultative Assembly (MPR) speaker.

"All of the supporters are kept in separate hotels to avoid scenarios where they are approached and change their minds," said the team member, who wished to remain anonymous.

"They have also been given new cell phone numbers that the other camp has no knowledge of, so we avoid any unwanted communication. All communication must go through the campaign coordinator," added the source.

The Hatta camp resorted to the same measures. Hatta's campaign team gathered around 400 of the party's local leaders, who have been in Bali since Wednesday, at an event during which they were involved in activities that aimed to strengthen ties between Hatta loyalists as well as nurture a "sense of belonging" among the camp.

Despite pledges of civility ahead of the congress, tensions ran high with the members of both camps being suspicious of the other side's moves. Both camps have also accused each other of playing "dirty tricks".

Senior PAN politician Tjatur Sapto Edy, a member of Hatta's camp, alleged that the rival group had involved a certain "powerful" figure to influence the camp's supporters into changing their preference. Zulkifli's camp made a similar allegation.

In a press briefing hours before the opening ceremony of the congress, Zulkifli, in his response to allegations of vote buying, strongly warned against possible interference. "We hope that no external parties are involved in PAN's congress," he said.

A Hatta victory would likely change PAN's stance, from one of opposition in the House of Representatives to a non-partisan position, much like the Democratic Party.

A Zulkifli victory would likely mean PAN would remain in the Red-and-White Coalition and become a staunch critic of President Joko "Jokowi" Widodo's administration, a stance promoted by the party's co-founder Amien Rais, who is also Zulkifli's in-law.

In his speech at the opening ceremony, Amien slammed Hatta for lying about his meeting with Jokowi and NasDem Party chairman Surya Paloh in September last year. The party's chairmanship is expected to be determined by PAN's 592 local leaders who are eligible to cast their votes.

Hatta or Zulkifli must secure at least 297 votes to win the race.

Also on Saturday, Hatta told his supporters during the opening ceremony that "whoever wins the race must ensure PAN remains united". Hatta, the former vice presidential candidate of Prabowo Subianto in last year's presidential election, is predicted to win the PAN leadership battle.

A joint study conducted by the Jakarta-based Centre for Strategic and International Studies (CSIS) and the Cyrus Network, predicted Hatta would secure 42.77 percent of the vote from PAN leaders at the regency and municipal levels, while Zulkifli would only garner 38.64 percent.

A number of high-profile politicians from political parties within the opposition coalition, including Prabowo, attended the opening ceremony.

Source: http://www.thejakartapost.com/news/2015/03/01/stress-soars-pan-congress.html

Police vs KPK

Police urged to obey Jokowi's order

Jakarta Post - March 7, 2015

Ina Parlina, Jakarta – Suspended Corruption Eradication Commission (KPK) deputy chairman Bambang Widjojanto and antigraft activists have stepped up their demand for the National Police to comply with President Joko "Jokowi" Widodo's instruction to halt the prosecution of individuals involved in the fight against corruption.

Bambang, along with former Financial Transaction Reports and Analysis Centre (PPATK) chairman Yunus Husein, former law and human rights deputy minister Denny Indrayana and a number of antigraft activists, visited the State Secretariat on Friday to seek confirmation that Jokowi had indeed made the order through State Secretary Pratikno.

Pratikno said on Thursday that Jokowi's goodwill should not be in doubt, insisting that since the beginning, the President had called for an end to the prosecution of antigraft campaigners.

After meeting with officials from the State Secretariat, Bambang called on deputy National Police chief Comr. Gen. Badrodin Haiti, who is temporarily in charge of the police force, "to follow up what has been started by the President through the State Secretary".

The group also handed a letter to Jokowi expressing activists' grievances over what they described as the "criminalization" of anticorruption partisans.

Attacks on the KPK intensified after the commission named Comr. Gen. Budi Gunawan, who was earlier nominated to be National Police chief, a graft suspect. Budi is a former confidant of Jokowi's patron and chairwoman of the ruling Indonesian Democratic Party of Struggle (PDI-P) Megawati Soekarnoputri.

The National Police is pressing ahead with its investigations into Bambang, Yunus and suspended KPK chairman Abraham Samad for allegedly divulging state secrets by exposing the contents of Budi's bank accounts following a report filed by the Indonesian General Society Movement (GMBI) and Budi's lawyer Razman Nasution.

The GMBI has also filed a report against Tempo magazine over an article on Budi's suspiciously large bank accounts in the weekly's Jan. 19-25 edition. The complaint is being processed by the police, who have ignored a recommendation from the Press Council to allow the council to mediate.

The GMBI alleges that by revealing the flow of funds, the magazine had divulged state secrets and violated both the 1998 Banking Law and the 2010 Money-Laundering Law.

Abraham and Bambang have furthermore been named suspects by police in an array of petty criminal cases.

Meanwhile, Denny has been reported by a group calling themselves the Defenders of the Country's Unity (PEKAT) to the West Jakarta Police for defaming Budi.

Following the arrest of Bambang in early February, Denny made a statement saying that by filing a pretrial motion at the South Jakarta District Court, Budi Gunawan had made a "silly move".

Denny added that the police should not process the reports against him and other antigraft activists. "We are waiting for the police's next step. They should comply with the President's order," Denny said.

Other than processing the report against his statements, the police also plan to question Denny as a witness in an alleged graft case involving a payment gateway, an online passport-application service originally launched on July 14 last year when Denny was a deputy minister.

The program was suddenly halted in October last year after the ministry said that it had yet to issue the authorization for the project to start. "It was an effort of mine to cut red tape," Denny said in his defense.

A number of independent press associations have in the meantime called on Jokowi to take action to stop such criminalization of the media by the police.

Source: http://www.thejakartapost.com/news/2015/03/07/police-urged-obey-jokowi-s-order.html

Budi Gunawan's men in, 'traitor' out

Jakarta Post - March 7, 2015

Fedina S. Sundaryani, Jakarta – More than a dozen of Comr. Gen. Budi Gunawan's subordinates from the National Police Educational Division (Lemdikpol) have received major promotions within the National Police headquarters, with three of them being assigned to strategic positions.

According to a classified telegram, a copy of which was made available to The Jakarta Post on Friday, 62 middle- and high-ranking officers were given approval on Thursday to receive promotions, including 16 officers from Lemdikpol.

The telegram was signed by the assistant to the National Police human resources division, Insp. Gen. Haka Astana.

The chief of the National Police's General Supervision Inspectorate (Irwasum), Comr. Gen. Dwi Priyatno, confirmed on Friday that a major overhaul had taken place, but denied that it had been engineered to meet the demands of certain parties within the force.

"All officers have the right to be promoted as long as they meet all the requirements regarding their education and achievement. It's fine as long as it has been agreed by the [police force's] leadership and the police's committee on officers' Rank and Promotion Council for High-Ranking Officers [Wanjakti]," he said.

Speculation was rife that the promotion of 16 of Budi's subordinates is proof that Budi is trying to wrest more power, even though he is no longer a candidate for the vacant police chief position following the move by the Corruption Eradication Commission (KPK) to name him a suspect in a bribery case.

One of the middle-ranking officers who received promotion was Sr. Comr. Victor Edi Simanjuntak, who now serves as the National Police's director of special and economic crimes, replacing Brig. Gen. Kamil Razak.

Victor was one of the officers who made the arrest of suspended KPK deputy chairman Bambang Widjojanto for involvement in an alleged perjury case in January. The arrest was made not long after the KPK announced that Budi was a graft suspect. Bambang's perjury case is currently being handled by the special and economic crimes directorate.

The Indonesian Ombudsman criticized Victor's promotion, saying that the agency had earlier found irregularities in his role in the arrest as he was not an officer with the National Police's detective division.

Ombudsman commissioner Budi Santoso said the promotion of Victor showed the police clearly ignored the agency's recommendation to penalize him for overstepping his position as an officer at Lemdikpol.

The National Police headquarters had earlier said that Victor was enlisted to arrest Bambang as the force needed more manpower and that he met all the requirements. "The National Police has full authority on whom they promote and demote, but this promotion still does not make sense to us," Budi Santoso said.

Victor's predecessor, Kamil, who is a former official at the Financial Transaction Reports and Analysis Centre (PPATK), was also one of several senior officers being investigated for allegedly being involved in the "secret operations" for the KPK that led to the antigraft body's decision to name Budi Gunawan a graft suspect. Kamil is expected to be transferred to the National Police's Security Maintenance Agency (Baharkam).

Another of Budi Gunawan's subordinates at Lemdikpol receiving a major promotion was Brig. Gen. Anton Charliyan, who was made the National Police spokesperson, replacing Insp. Gen. Ronny Sompie. To be qualified to fill his new position, Anton was recently promoted to one-star general.

Another Lemdikpol alumnus, Sr. Comr. Erwin Triwanto, has also been promoted to Yogyakarta Police chief.

This is not the first time Budi Gunawan's subordinates have been promoted within the force. In January, Comr. Gen. Budi Waseso, one of Budi's close associates, was promoted to become detective division chief, replacing Comr. Gen. Suhardi Alius, who was known as a reformer in the force.

Following his promotion, Budi Waseso quickly moved to name Bambang and suspended KPK chairman Abraham Samad suspects in petty criminal cases.

Separately, National Police Commission (Kompolnas) member M. Nasser acknowledged that promotions within the police force were prone to intervention. "We often question these rotations because we always suspect that there is always an intervention, whether internal or external," he said.

Source: http://www.thejakartapost.com/news/2015/03/07/budi-gunawan-s-men-traitor-out.html

Police asked to stop cracking down on media

Jakarta Post - March 6, 2015

Haeril Halim and Ina Parlina, Jakarta – As the National Police ignored a recommendation from the Press Council and pressed ahead with its move to process a complaint against Tempo weekly's cover story of the fat bank accounts of Comr. Gen. Budi Gunawan, a number of independent press associations on Thursday called on President Joko "Jokowi" Widodo to take action to stop what they deemed "criminalization" of the media by the police.

During a press conference on Thursday at the Press Council office in Jakarta, Alliance of Independent Journalists (AJI) chairman Suwardjono urged Jokowi to order acting National Police chief Comr. Gen. Badrodin Haiti to comply with the 2012 deal made between the police and the press council in which the two parties agreed to transfer any police reports against the press to the Press Council for further action.

"All ongoing investigations against media outlets with regard to their journalistic products must be handed over to the council and in future the police must direct any complaints regarding news publication to the council," Suwardjono said.

On Jan. 22, the Indonesian General Society Movement (GMBI) filed a report against Tempo over an investigative piece on Budi's wealth. The group accused the magazine of divulging state secrets and violating both the 1998 Banking Law and the 2010 Money-Laundering Law.

Many have said that the police's move to accept the complaints could bring dire consequences.

"If the police in Jakarta criminalize journalists here, what about our fellow reporters in regions across the country. By processing the Tempo case, the police have infringed upon the jurisdiction of the Press Council," Yadi Hendriana, Indonesian Television Journalists Association (IJTI) chairman, said during the press conference.

Yadi said that the police should comply with a recent finding issued by the Press Council that Tempo did not violate any journalistic code of ethics as regulated under Article 40 of the Press Law and that the dispute between the magazine and the plaintiff had to be settled through the Press Council.

Also present, Tempo magazine's chief editor Arif Zulkifli said that the police move against his media outlet was a serious threat to the freedom of speech that the country had been enjoying over the past 17 years, following the ouster of president Soeharto.

Arif said that the police report against Tempo could also be seen as confirmation of what the magazine had printed because the plaintiff had not accused Tempo of violating the Press Law by questioning the validity of the data in the report, merely accusing it of revealing state secrets.

Arif further said that he had received information that the police were currently holding off their probe, but there was no guarantee that criminalization against the media would stop.

He said that the police had also made a similar move in their investigation into The Jakarta Post, whose editor-in-chief Meidyatama Suryodiningrat was named a blasphemy suspect for publishing a cartoon in the Post July 3 edition criticizing violence conducted by the Islamic State (IS) organization, by postponing their investigation, not officially stopping it.

"These cases must be solved once and for all by issuing an order saying that the investigation has been officially stopped. By postponing them, the police could dig up the cases in the future should Tempo and The Jakarta Post write another critical story that offends certain parties," Arif said.

Earlier on Thursday, Arif and senior journalist Goenawan Mohamad held a meeting with Jokowi at the Presidential Palace, where they discussed the criminalization of the press, among other issues.

"Pak Jokowi is very concerned with such cases," Arief said at the Palace. "I believe it is interesting that Pak Jokowi gives his full attention to the condition of our press, not only Tempo, but all the media in the country."

Source: http://www.thejakartapost.com/news/2015/03/06/police-asked-stop-cracking-down-media.html

They all fall down: New law seen in subverting KPK

Jakarta Globe - March 6, 2015

Ezra Sihite, Erwin Christianson & Fana F.S. Putra, Jakarta – The State Palace emphasized on Thursday that it was not curbing the powers of the national antigraft agency, which has since its inception, successfully jailed hundreds of corrupt officials, law enforcers and even politicians.

Speculation came after the State Palace announced that President Joko Widodo would soon issue a presidential regulation on graft prevention, which one top official said would make preventive measures the main focus of the fight against corruption across the country.

Cabinet Secretary Andi Widjajanto confirmed that prevention would make up the bulk of the fight against graft, but the regulation would not alter or affect the highly respected Corruption Eradication Commission (KPK).

"The regulation will not impact the KPK," he said on Thursday. "It merely instructs ministries and government institutions to improve internal mechanisms that would prevent corruption from happening."

The KPK and other law enforcement agencies will as a result be more involved in ridding the nation of graft; not less, he added.

The regulation "will allow law enforcers to quickly identify signs of administrative violations and the illegal use of state funds," the minister said, adding that this would allow law enforcers, such as the KPK, to act before corruption actually occurs, thus preventing state losses.

The National Development Ministry is currently finalizing the regulation. And once the draft reaches the president, it may be enacted in "four to six days."

In campaign promises made last year, Joko vowed to shift the government's entire budgeting, procurement and evaluation system online in order to push for more transparency and accountability.

The ongoing controversy surrounding Jakarta's city budget has shed light on the ease at which projects and programs – often unnecessary – can be manipulated, causing billions of dollars in losses.

Governor Basuki Tjahaja Purnama last month revealed Rp 12 trillion ($925 million) worth of additions to the capital's budget proposal that had not been approved by City Hall, nor requested by local officials.

The changes, Basuki said, could only have been made during legislative budget deliberations by members of the City Council. Similar discrepancies were discovered in last year's budget Basuki said, citing the unneeded procurement of uninterruptible power supplies for schools across Jakarta as an example. The city's education agency vehemently denied requesting the UPS machines, the prices of which were listed at 300 times their true retail value.

Experts and activists have long argued that graft prevention in Indonesia borders on nonexistent, putting the blame largely on a corrupt government.

Though the KPK has successfully jailed district heads, governors and ministers for cases ranging from budget manipulation, the misappropriation of funds or assets, to tender rigging and receiving kickbacks from contractors, the state has yet to make financial transactions more transparent.

Interim KPK commissioner Johan Budi, who until recently was chief of the agency's corruption prevention unit, reminded the government not to sideline the law enforcement aspect of fighting graft.

"Prevention and enforcement play equal parts [in fighting corruption]," Johan said on Thursday. He added that arrests and convictions serve as momentum for change the government rarely seizes.

"You cannot have one without the other. We are carrying out both simultaneously, with equal effort and speed."

The recent spat between the KPK and the police, spurred by Joko's surprising decision to select a candidate with a questionable track record for National Police chief, has spurred observers to question the president's commitment to combatting corruption.

The antigraft body declared Comr. Gen. Budi Gunawan as a suspect for bribery and money laundering on Jan. 12, but Joko pressed on with his choice until unrelenting public pressure forced him to drop Budi as the only candidate for police chief.

Joko has also stayed clear from apparent retaliative attacks launched by the National Police as they dug up closed cases against all four KPK commissioners and dozens of investigators, some of which were nearly a decade old and all built on dubious grounds.

Tensions finally eased when Joko appointed current police deputy chief Comr. Gen. Badrodin Haiti as his sole candidate for police chief. However, Joko also suspended two KPK commissioners from active duty, replacing them with three interim chiefs.

KPK investigators and staffers voiced their unhappiness with the move, calling the replacements "ghosts who are afraid of the police" in a protest on Tuesday.

Just days after the interim chiefs were sworn in, the KPK transferred Budi's case to the Attorney General's Office – an institution that has had little success in prosecuting graft cases and has itself been the subject of numerous corruption cases.

Attorney General H.M. Prasetyo has already indicated his office would not be pursuing the case against Budi, potentially derailing Joko's pledge for reform.

The president has expressed his wish to see nothing but harmony between the KPK, National Police and AGO, conceding that the antigraft body's interim chiefs were chosen based on their ability to quell tensions with the police.

"They must go hand in hand; help each other. They must foster synergy in the fight against corruption. This must be their focus," he said at an exclusive interview with BeritaSatu TV aired on Tuesday.

"If all three agencies can cooperate with one another, there is so much they could do to combat corruption," the president said.

"But if each institution chooses to work alone, refuses to share information and prioritizes its own ego, this is what happens," he added, referring to the vindictive squabble between the KPK and National Police.

Activists and academics were quick to point out that Joko's focus on harmony without addressing the root of the problem only undermines the antigraft body's credibility, while gracing corrupt law enforcers with impunity.

"The police's impact on the fight against corruption is nothing compared to the KPK's," said State Islamic University rector Komaruddin Hidayat, arguing that the National Police and AGO are themselves rife with corruption.

Coordinating Minister for Politics, Legal and Security Tedjo Edhy Purdijanto denied that Joko was trying to undermine the KPK by choosing dubious interim commissioners and now by drafting the new regulation.

"The president and his administration remain committed to the KPK and the fight against corruption," he said on Thursday.

As a possible sign that the move to hand over Budi's case to the AGO was nothing more than a bargaining tool, Badrodin announced on Wednesday that the police would likely drop all pending investigations into KPK commissioners and investigators – except non-active chief Abraham Samad and his deputy Bambang Widjojanto.

Still, police have yet to ease pressure on its current foe, expanding its investigation into those supporting the KPK in the recent spat. Police on Thursday summoned former deputy justice minister and academic Denny Indrayana for questioning in relation to an online payment system for passport applications inside the ministry meant to help prevent graft.

Denny said the move was an effort to "criminalize an unprecedented technological innovation that works to prevent extortion practices." "[The investigation] also criminalizes the KPK and its supporters," he added.

Investigators claimed they had examined 12 witnesses since receiving a complaint last month from a little-known group called Pijar. Police have yet to calculate state losses incurred by the online payment method – if any. They are questioning its use of vendors – who receive the payments before passing them on to the state, charging a fee for their services – instead of letting the funds go straight into state coffers.

Police claim they have also received complaints from similarly unknown groups against 26 KPK leaders and investigators, as well as Tempo magazine and former anti-money laundering agency chief Yunus Husein.

Yunus's office was the first to flag irregular transactions involving millions of dollars in Budi's bank account in 2010. Tempo was among the first media groups to report the findings.

Source: http://thejakartaglobe.beritasatu.com/news/jakarta/fall-new-law-seen-subverting-KPK/

Antigraft body's old guard support Ruki's actions

Jakarta Post - March 5, 2015

Haeril Halim, Jakarta – Responding to mounting opposition from the public and current staff members of the Corruption Eradication Commission (KPK), the acting chairman of the antigraft body, Taufiequrachman Ruki, is enlisting support from former commissioners and advisors of the agency to help neutralize the growing criticism directed at him for handing over Comr. Gen. Budi Gunawan's graft case to the Attorney General's Office (AGO).

Following a protest on Tuesday by more than 400 KPK officials, including investigators and directors, Ruki held a closed-door meeting with former KPK commissioners and advisors including Tumpak Hatorangan Panggabean, Haryono Umar, Erry Riyana Hardjapamekas and Busyro Muqoddas, as well as suspended KPK chairman Abraham Samad and commissioner Bambang Widjojanto.

Some members of the KPK's old guard voiced their support for Ruki's decision on Budi, saying that it was the right way to build solidarity within the KPK.

"What is important now is to build internal solidarity and transparency within the KPK so that there is no more room for suspicion [against KPK leaders] in the future," Haryono said.

The approximately 400 antigraft officials who staged a protest on Tuesday at the KPK compound lambasted what they described as the "horse-trading" undertaken by Ruki, who they said had been sent by the government to take the case away from the KPK.

The KPK officials also accused Ruki of trading Budi's case with the police so that they would stop their ongoing investigations into current commissioners Adnan Pandu Praja and Zulkarnain, as well as into several investigators and directors who all face criminal charges from the police following the KPK move to name Budi, a short-lived candidate for the position of National Police chief, a graft suspect.

Haryono also said that during Wednesday's meeting, former KPK commissioners demanded an explanation from Ruki regarding suspicions that he might have acted according to an agenda set by others. "In the meeting we learned that there is no suspicion and that there was no horse-trading behind Monday's deal," Haryono said.

Meanwhile, Tumpak said that the move to transfer Budi's case to the AGO was the best decision, and could be justified by Law No. 20/2002 on the KPK as an effort to rebuild the KPK after it endured numerous attacks following its decision to name Budi a suspect.

To ensure that the AGO would not suspend Budi's case or transfer it to the police, Tumpak said that the KPK could hold a joint case expose with prosecutors from the AGO.

"I don't think [that the case should be transferred to the police]. Let the AGO determine what to do next after holding the joint case expose," Tumpak said.

Earlier, Attorney General M Pasetyo said that the KPK had recommended that it would be "effective" for the AGO to pass Budi's case to the National Police on the grounds that prosecutors from the agency had launched a probe into Budi's case in 2010.

Former KPK advisor Abdullah Hehamahua, who was also among the former KPK advisors who joined Wednesday's meeting, said that all the former KPK commissioners had agreed to recommend that Ruki file for a judicial review with the Supreme Court over the pretrial decision that ordered the KPK to stop its investigation into Budi.

Ruki used the pretrial decision as the main reason to justify the transfer of Budi's case to the AGO because the KPK law prohibited the agency from halting a graft investigation.

"If the Supreme Court annuls the verdict then the KPK could consider taking Budi's case back. It depends on the current leadership's decision," Abdullah said.

Source: http://www.thejakartapost.com/news/2015/03/05/antigraft-body-s-old-guard-support-ruki-s-actions.html

Staff join hands to admonish Ruki's surrender

Jakarta Post - March 5, 2015

Haeril Halim and Ina Parlina, Jakarta – Corruption Eradication Commission (KPK) officials, including directors and investigators, have pledged to continue demonstrating against KPK leaders until they voided Monday's decision to hand over Comr. Gen. Budi Gunawan's investigation to the Attorney General's Office (AGO), which will later transfer the case to the graft-ridden National Police.

On Tuesday, around 400 KPK officials staged a protest at the antigraft body compound lambasting what they described as "horse-trading" undertaken by acting KPK chairman Taufiequrachman Ruki, who they said had been sent by the government to take the case away from the KPK.

"These actions will continue. We will further press KPK leaders to cancel the agreement and urge them to file a case review petition against a pretrial verdict that forced the KPK to stop investigating [Budi]," KPK union worker chairman Faisal said after Monday's rally.

On Monday, Ruki said the KPK "had no choice" but to transfer Budi's case to the police following the pretrial verdict because of an internal law that prohibits the commission from halting an investigation, as well as its failed effort to challenge the verdict through a cassation mechanism.

During the protest, KPK workers wrote statements on a 50-meter-long banner that condemned the agreement and rebuked the 68-year-old Ruki, who was reportedly the initiator of the controversial decision. "Stop weakening the KPK from within," read one anonymous statement, while another written, by KPK official Nanang, read "It is the KPK's job to eradicate corruption."

One investigator joining the protest, who requested anonymity, said: "I am sure that suspended commissioners Abraham Samad and Bambang Widjojanto would not agree that their cases be traded for something else." Abraham and Bambang's cases are currently being handled by police.

Following Monday's deal, acting National Police chief Comr. Gen. Badrodin Haiti said that police had postponed their investigation into two other KPK commissioners, Adnan Pandu Praja and Zulkarnain. Badrodin also said police would review nine other investigations into KPK investigators and directors, but that police would proceed with the Abraham and Bambang investigations.

The investigator continued: "I've been working here for eight years under three different groups of leaders. I've experienced the KPK's tremendous achievements and integrity under the third chairman [Abraham]; but today, [under Ruki] we no longer see such things because everything can be 'traded' now."

Ruki and acting commissioner Indriyanto Seno Adji approached the protesters and awkwardly signed the banner, but did not comment on the criticisms being lodged against them. Later, Ruki convened protesters in a closed-door meeting inside the KPK building to explain his controversial decision.

"I am honored to see that they [KPK officials] have grown up [with critical thinking]. They are all the result of the first leadership and now I am back to fill the empty seat [vacated by Abraham]. I will listen to your aspirations as I am now part of them as well," Ruki said.

Former KPK commissioner Busyro Muqoddas said Ruki's controversial decision was rumored to have been triggered by intervention from the administration, adding that Ruki must cancel the decision, which he said had undermined the credibility of the KPK.

"Pak Ruki needs to cancel the decision [as a form of] goodwill," Busyro told The Jakarta Post.

Cabinet Secretary Andi Widjajanto said President Joko "Jokowi" Widodo had demanded a comprehensive solution to the KPK's internal tension. "Basically, the directive of the President is to find a comprehensive legal resolution," Andi said on Tuesday.

According to Andi, Jokowi said there should be "no maneuvers outside legal channels", and he reinstated his call for all parties "to refrain from creating a hostile situation". "The President wants synergy between law enforcement institutions to be achieved soon," Andi said.

Source: http://www.thejakartapost.com/news/2015/03/04/staff-join-hands-admonish-ruki-s-surrender.html

Police target 'Tempo' for Budi story

Jakarta Post - March 4, 2015

Fedina S. Sundaryani, Jakarta – In what appears to be a threat to future press freedom, the National Police are following up on a report against Tempo magazine for publishing a story on the suspicious bank accounts of a politically wired police general.

The police, however, claimed they were currently working with the Press Council to decide if they would proceed with a probe into Tempo for its recent report on the wealth holdings of former police-chief candidate Comr. Gen. Budi Gunawan.

Acting National Police chief Comr. Gen. Badrodin Haiti said that police had sought counsel from the Press Council to determine whether Tempo had violated the council's code of ethics or had violated criminal laws by publishing the article.

"We have asked the Press Council to analyze the situation first, but coordination continues between the council and our detective division," he said.

On Jan. 22, the Indonesian General Society Movement (GMBI) filed a report against Tempo over an article on Budi's suspiciously large bank accounts in the weekly's Jan. 19-25 edition.

The GMBI alleged that by revealing the flow of funds, the magazine had divulged state secrets and violated both the 1998 Banking Law and the 2010 Money Laundering Law.

Joined by Budi's lawyer Razman Nasution, the GMBI also filed police reports against suspended Financial Transaction Reports and Analysis Centre (PPATK) chairman Yunus Husein and suspended Corruption Eradication Commission (KPK) leaders Abraham Samad and Bambang Widjojanto for allegedly divulging state secrets by exposing the contents of Budi's bank accounts.

Abraham and Bambang have also been named suspects by police in a number of petty criminal cases.

The GMBI criticized Bambang, Abraham and Yunus' decision to go public with the information that Budi was "red flagged" by both the PPATK and the KPK just days after President Joko "Jokowi" Widodo nominated Budi for National Police chief, triggering a month-long standoff between the KPK and the police.

Although the police have requested the Press Council's assistance in the case, Badrodin hinted that the case could be left open even if insufficient evidence was found. "We have had experiences where several cases are kept pending because of insufficient evidence."

Separately, Press Council member Yosep Adi Prasetyo said the police could not slap criminal charges on Tempo because publication of the investigative piece was in public interest.

"There is an exemption in investigations. Even the media can violate some journalistic ethics as long as it's in the public's best interest," he announced after a meeting with several investigators from the Jakarta Police.

Yosep said individuals vulnerable to charges included sources used in the article and that if the weekly were made to divulge identities, public trust in the organization was likely to erode.

Yosep, who is head of the council's legal division, advised that the case be handed over to the Press Council so that it could hold an ethics hearing as stipulated in the Press Law.

Meanwhile, Tempo's chief editor, Arif Zulkifli, insisted that the Press Law protected the magazine's right to publish the article in question. "Article 40 of the Press Law clearly states that the media is given the right to find information that is beneficial to public interest," he said.

Arif said he was surprised to hear that a police report had been filed, as he was never contacted by police.

Arif added that the magazine was prepared to defend its stance if the police decided to press charges, but that he would prefer to have the allegations mediated by the Press Council. "This is not a criminal case. The problem must be resolved through the Press Council," he said.

Source: http://www.thejakartapost.com/news/2015/03/04/police-target-tempo-budi-story.html

VP Kalla says no outsiders trying to weaken KPK

Jakarta Globe - March 3, 2015

Noviani Setuningsih & Farouk Arnaz, Jakarta – Vice President Jusuf Kalla says that the Corruption Eradication Commission (KPK) itself is to blame for any supposed moves it claims are aimed at weakening the antigraft agency.

"The KPK may have grown weaker because of the internal factors – you all know the story, the glass house and politics and such," Kalla said, referring to the title of an article published in Kompas newspaper. In in the article, it was claimed that former KPK chief Abraham Samad had illegally met with some politicians during the presidential campaign last year.

Kalla said that nobody from outside the KPK was trying to dismantle it. The vice president also denied that the KPK had suffered a defeat when the Attorney General's Office on Monday took over its case against Comr. Gen. Budi Gunawan, a former National Police chief candidate who had been named a graft suspect but who successfully challenged that KPK move in court last month.

"I don't think it's about winning or losing. It was a court decision – it was a legal matter and not a battle," Kalla said.

Activists were quick to criticize Monday's decision, warning that the move could pave the way for other graft suspects to get away from facing justice.

"The handover is a severe blow to the KPK as well as a cause for celebration for those seeking to weaken the KPK," Miko Ginting, a researcher with the Center for Legal and Policy Studies, or PSHK, said on Monday.

Miko said the KPK should have pressed on with its case against Budi – whom President Joko Widodo nominated for National Police chief in January before withdrawing him last month – despite a court ruling faulting the KPK's basis for naming Budi a bribery and money-laundering suspect.

Budi was charged in connection with irregular transactions amounting to millions of dollars flowing through his personal bank accounts between 2003 and 2006.

But the lone South Jakarta District Court judge hearing the pretrial motion filed by Budi against his status as a criminal suspect, Sarpin Rizaldi, explained on Feb. 16 that the KPK had no jurisdiction over the police general, whom he described as "not being a law enforcer" at the time of the alleged money laundering.

Kalla said KPK should start a process of introspection to find out what is really causing it to lose authority.

Source: http://thejakartaglobe.beritasatu.com/news/vp-kalla-says-outsiders-trying-weaken-KPK/

KY may recommend Sarpin's dismissal

Jakarta Post - March 3, 2015

Haeril Halim, Jakarta – The Judicial Commission (KY) said Monday that South Jakarta District Court judge Sarpin Rizaldi could face dismissal if a current investigation confirmed that he had abused his power in annulling the suspect status of then National Police chief nominee Comr. Gen. Budi Gunawan.

In his ruling, Sarpin controversially ordered the Corruption Eradication Commission (KPK) to lift the suspect status it had earlier slapped on Budi for a bribery case and deemed the KPK investigation into the police general "invalid".

The Criminal Law Procedures Code (KUHAP) does not authorize a judge to challenge someone's legal status through a pretrial mechanism.

Justice Commission commissioner Imam Anshori said that commission investigators would issue a recommendation to the Supreme Court to fire Sarpin from his position should the ongoing investigation find he had intentionally acted against the code to facilitate Budi's interests.

"It depends on the result of the investigation. The punishment varies depending on how serious the violation is. The dismissal option is on the table but again it all depends on the evidence we collect after questioning Sarpin," Imam said.

Imam said the commission had questioned a number of witnesses and experts in the case, adding it was still waiting for the original copy of Sarpin's verdict from the South Jakarta District Court.

"We will soon summons Sarpin after we have examined the copy of the verdict. Today we also questioned the KPK's legal division team," Imam said.

Aware of the current probe, Sarpin, in a move to challenge the investigation, said he would not attend any summons issued by the commission.

Sarpin even stated publicly that he was responsible to God for his ruling not to the commission. "If they want to question me, tell them to come to my office if they have the guts," Sarpin said, as quoted by tempo.co on Friday.

Imam did not want to comment on Sarpin's defiance, saying "he will lose his chance to explain the case clearly if he decides not to attend our questioning".

He expected the commission would make its final decision about Sarpin in the second or third week of March. "We can still issue a final decision even without questioning him should he fail to attend," Imam said.

Imam said that the commission expected the Supreme Court to take the initiative to amend Sarpin's ruling, which experts said had caused trouble in the country's judiciary system following the influx of graft suspects filing pretrial petitions to challenge their legal status after Sarpin approved Budi's pretrial motion, should its investigation confirm that Sarpin had abused his authority in making the ruling.

"It all depends on the Supreme Court, but we expect the commission's findings could become the gateway for the Supreme Court [to correct the controversial ruling]," Imam said.

Source: http://www.thejakartapost.com/news/2015/03/03/ky-may-recommend-sarpin-s-dismissal.html

Police warned against criminalizing 'Tempo'

Jakarta Post - March 3, 2015

Jakarta – The Independent Journalists' Alliance (AJI) has called on the police not to criminalize media reporting on corruption since it was the people's constitutional right to be informed.

The AJI aired the call in response to the controversial statement by deputy police chief Comr. Gen. Badrodin Haiti to the effect that 'Tempo' weekly magazine could be prosecuted in connection with its recent report on the alleged flow of funds to Comr. Gen. Budi Gunawan.

"The magazine's report is a press product, or a work of journalism. Their report is actually part of the national media's efforts to fulfill citizens' constitutional rights to receive information as guaranteed in Chapter 28F of the amended 1945 Constitution," AJI Chairman Suwarjono said on Tuesday.

He added that the regulation requiring public officials to report their wealth proved that the legal system regarded information on public officials' wealth as public information.

"Clearly, the public has the right to know about facts linked to public officials' wealth. It is also clear that 'Tempo' magazine's coverage is part of the fulfilment of this right," he said as quoted by tribunnews.com.

He said the national media would resist if Tempo was named a suspect in the case. The police are still investigating the magazine over the report. (rms)

Source: http://www.thejakartapost.com/news/2015/03/03/police-warned-against-criminalizing-tempo.html

Police seeking to drop Abraham, Bambang cases

Jakarta Post - March 3, 2015

Jakarta – Acting National Police chief Comr. Gen. Badrodin Haiti said police were still approaching those who have filed reports against suspended Corruption Eradication Commission (KPK) leaders, Abraham Samad and Bambang Widjojanto, for their consent to drop the legal cases.

"We will provide an explanation, but it is not a certainty. We will approach the case-filers to have the legal cases dropped," he said after attending an Indonesian Military (TNI) and police leadership meeting in Jakarta on Tuesday.

He argued that the report-filers would likely prefer to see the investigations continued, but said, "With our approach, [hopefully] the informants can [be made to] understand the current situation and [we can win] get their agreement to drop the cases."

He said that during the time it took to persuade informants to rescind their reports, investigations of the suspended KPK leaders would continue because the two had already been named suspects.

Bambang was named a suspect for allegedly directing witnesses to give false testimony when the Constitutional Court was trying a West Kotawringin election dispute in July 2010.

Abraham has been named a suspect in two different cases. In the first, he allegedly helped Ferriyani Lim, a woman from Pontianak, West Kalimantan use ID and family cards to apply for a passport to the immigration office in Makassar in 2007; in the second case, he allegedly abused his power as KPK chairman by lobbying to become a vice presidential candidate with elite figures of the Indonesian Democratic Party of Struggle (PDI-P) ahead of the July 9, 2014 presidential election.

Badrodin said police would suspend investigations into the two reports filed against KPK deputy chairmen Adnan Pandu Praja and Zulkarnain because the two cases had not yet been investigated.

The KPK's move to hand over the Budi case to the AGO and the police's plan to suspend all legal cases implicating KPK leaders were apparently part of a comprehensive settlement to the recent police-KPK conflict.

President Joko "Jokowi" Widodo recently asked the KPK, the AGO and the police to end sectoral egoism and create better synergy in the fight against corruption. (rms)

Source: http://www.thejakartapost.com/news/2015/03/03/police-seeking-drop-abraham-bambang-cases.html

KPK staff walk out in protest at Budi case handover

Jakarta Post - March 3, 2015

Jakarta – Hundreds of employees of the Corruption Eradication Commission (KPK) staged a walkout for a quarter of an hour and in protest at the commission's decision to hand over the case on former National Police chief candidate Comr. Gen. Budi Gunawan to the Attorney General's Office (AGO).

Faisal, coordinator for the Forum of KPK employees said they opposed the KPK leadership's move to hand over the Budi case to the AGO and called on KPK leaders to request the Supreme Court to reopen the case.

He said the KPK leadership should provide an open explanation of their strategy in fighting corruption in the country.

Faisal said in a free-speech forum that corruption eradication had to be conducted in the worst conditions and therefore the KPK had to be in the front rank in corruption eradication. "If there are 10 corruption eradicators, we must be part of them but if there is only one corruption fighter, then it is only us," he said.

Nanang Farid Syam, another KPK employee, said the commission had never feared to fight against corruption and the commission had only two choices: Live with dignity or die in humiliation.

Nanang also said they stood behind suspended KPK chairman Abraham Samad and deputy chairman Bambang Widjojanto who have allegedly been criminalized for enforcing the law. "What Abraham and Bambang did [naming Budi a suspect] was to implement the law and enforce the law," he said as quoted by tribunnews.com.

The KPK leaders handed the Budi case over to the AGO on Monday after the South Jakarta District invalidated the KPK's move to name Budi a graft suspect. But Attorney General Prasetyo said later that his office would likely hand the case to the police for the sake of efficiency because the case had once been handled by them.

The demonstration that took place in front of the KPK building in Kuningan, South Jakarta, lasted only 15 minutes and ended when acting KPK chairman Taufiqurrahman Ruki asked them to go back to work.

"Those who are KPK employees are asked to come in and get back to work. Let me face journalists," he told the protesters. Ruki said he was glad and had pride in the protesters.

"I am glad that they had the courage to stage the protest because they were recruited and educated in the KPK's first term of leadership. I led the first term. I was the former chairman of the first term who has been asked to fill the vacant chairmanship seat in the third term. I am part of the protesters and therefore I am glad to see and listen to their demands. Whatever they have said is our voice. Pak Indriyanto and I are part of the KPK staff. I won't be divided from them," he said. (rms)

Source: http://www.thejakartapost.com/news/2015/03/03/KPK-staff-walk-out-protest-budi-case-handover.html

KPK throws in towel against cop

Jakarta Post - March 3, 2015

Haeril Halim, Jakarta – Graft suspect Comr. Gen. Budi Gunawan may walk free as the Corruption Eradication Commission (KPK) "admitted defeat" in its attempt to proceed with the prosecution of the general known for his close ties to President Joko "Jokowi" Widodo's party patron.

With its key officials facing criminalization, the KPK has made a historic decision to transfer Budi's legal case to the Attorney General's Office (AGO), which intends on handing it over to the graft-ridden National Police for investigation.

Acting National Police chief Comr. Gen. Badrodin Haiti has voiced the possibility that the case could be halted if the police find insufficient evidence to continue.

"The KPK and the National Police agree that the status of Budi's case is that of a preliminary investigation after a pretrial decision annulled Budi's suspect status," said Badrodin, who is known as a close associate of Budi.

"Whether the case progresses into a primary investigation depends on the gathered evidence. But even if the case progresses, there is also the possibility of stopping it."

Attacks on the KPK intensified after it named Budi, who was earlier nominated as National Police chief and in a confidant of Jokowi's patron and chairwoman of the ruling Indonesian Democratic Party of Struggle (PDI- P) Megawati Soekarnoputri, a graft suspect.

The KPK alleges that Budi accepted bribes from fellow officers in their attempts to attain promotions when he was assigned as the National Police's chief for promotion and career development.

Acting KPK chairman Taufiequrachman Ruki said the AGO had received Budi's dossiers from the KPK to be examined based on the agency's recommendation that it would be "effective" should the AGO agree to pass the case to the National Police on the grounds that they had investigated Budi's case in 2012.

"We have admitted defeat, but it does not mean that we will also give up on other cases as we are also investigating 36 other cases," said Ruki, a retired police general. "We don't want this one case [Budi's] to disrupt other cases. We will also have to face many pretrial hearings in near future."

The KPK made the announcement after holding a closed-door meeting with Attorney General M. Prasetyo, Law and Human Rights Minister Yasonna H. Laoly, Coordinating Political, Legal and Security Affairs Minister Tedjo Edhy Purdijatno and Badrodin at KPK headquarters on Monday.

Acting KPK commissioner Johan Budi said he believed that by surrendering the case to the AGO, the KPK could prevent the police from summoning the agency's investigators and directors in a number of criminal probes. "Such conditions create an uncomfortable atmosphere at the KPK," Johan said.

The KPK has already lost its chairman, Abraham Samad, and a commissioner, Bambang Widjojanto, both of whom resigned after the police named them suspects in separate cases many say were engineered by police.

Around 21 investigators assigned by the police to the commission will be named suspects by the National Police for their failure to renew their gun licenses. The commission's highly decorated investigator, Comr. Novel Baswedan, also faces the possibility of detention in connection to a murder case.

Following the deal, Badrodin said the police were "considering reviewing" nine other criminal cases implicating KPK directors and investigators. "I will establish communication with the plaintiffs so that in the future they will not file any complaints against us if we stop investigating the nine cases," Badrodin said.

Prasetyo argued that the deal to hand over the case was aimed at forging a "harmonious relationship" between the KPK and the police, but it would not necessarily compromise the prosecution of Abraham and Bambang.

"But as of now I'm not sure whether I can use my prerogative rights as a prosecutor to halt the case from going to trial for the sake of the public interest," said the NasDem Party politician.

The hand over decision has angered the majority of KPK officials, including investigators, who inform reporters that they would stage a protest at the KPK headquarters in South Jakarta against the decision.

"On Tuesday at 9 a.m. we will voice our stance as KPK officials regarding the decision. We will sign a white canvas to express our thoughts on the decision made today [Monday]," KPK officials said in a statement on Monday.

Indonesia Corruption Watch (ICW) said that the police's victory had sent a clear message to the public.

"No one can prevent the police from attacking the KPK, including the President himself. This sets a bad precedenT and we are worried that more attacks will come from the police in the future," Emerson Yuntho of ICW said.

Source: http://www.thejakartapost.com/news/2015/03/03/KPK-throws-towel-against-cop.html

In overture to AGO, a sign of the KPK's submission in Budi Gunawan case

Jakarta Globe - March 2, 2015

Erwin Sihombing & Fana F.S. Putra, Jakarta – Indonesia's antigraft commission on Monday handed over its investigation into would-be police chief Budi Gunawan to the Attorney General's Office, an institution with far less success in prosecuting graft cases.

Activists were quick to criticize the decision, warning that the move could pave the way for other graft suspects to get away from facing justice and hinder Indonesia's fight against graft.

"The handover is a severe blow to the KPK" – Corruption Eradication Commission – "as well as a cause for celebration for those seeking to weaken the KPK," Miko Ginting, a researcher with the Center for Legal and Policy Studies, or PSHK, said on Monday.

He said the KPK still had legal avenues to continue pursuing the case, including seeking a case review of the controversial ruling with the Supreme Court, or starting a fresh investigation against Budi.

Budi was charged in connection with irregular transactions amounting to millions of dollars flowing through his personal bank accounts between 2003 and 2006.

But the lone judge hearing the pretrial motion filed by Budi against his status as a criminal suspect, Sarpin Rizaldi, argued that the KPK had no jurisdiction over the police general, whom he described as "not being a law enforcer" at the time of the alleged money laundering.

Miko said that regardless of whether Budi qualified as a legitimate antigraft target, the KPK did have jurisdiction in cases where the alleged graft had a monetary value exceeding Rp 1 billion ($77,190).

Legal experts have also pointed out that the court's decision to revoke Budi's suspect status is not a legally recognized move under the Criminal Code Procedures, or KUHAP.

Under the code, a pretrial motion is only authorized to hear technical aspects of an investigation, such as the processes leading to arrest and seizure of assets, and not weigh on the substance of the criminal charge itself, which can only be determined after the indictment of the suspect.

The court also did not rule out the possibility of the KPK starting a fresh investigation against Budi.

Miko said there was a "great chance" that the AGO, marred with numerous corruption cases involving its own prosecutors, would ultimately drop Budi's case.

Some 2,000 cases forwarded by the KPK to the AGO have never gone to trial, according to Hifdzil Alim, a researcher with Gadjah Mada University's Anti-Corruption Study Center (Pukat UGM).

Buckling under pressure

The handover of Budi's case will likely tarnish the reputation of the KPK, which has never lost a case in its 10-year-history, Miko said, adding that the latest move showed the KPK was buckling under pressure from the police.

Since the KPK charged Budi on Jan. 13, the police have dug up a series of cold cases, some a decade old, against KPK leaders and investigators.

Police are pursuing 26 separate cases and have thus far charged two of the KPK's four commissioners on three separate criminal cases, forcing them to be suspended from active duty.

Suspended KPK chairman Abraham Samad has been charged with allegedly helping a prominent graft convict receive a reduced sentence last year in exchange for political backing from the convict's party to support Abraham's alleged bid to become vice president.

In a separate case, the South Sulawesi Police have charged Abraham with document forgery after he allegedly falsified a document to help a woman, Feriyani Lim, apply for a passport in 2007.

Suspended deputy chief Bambang Widjojanto is accused of compelling witnesses to commit perjury in an election dispute case that he handled as a lawyer in 2010.

Interim KPK commissioner Johan Budi appeared to hint on Monday that handing over Budi's case to the AGO was done largely to stop the wave of retaliatory attacks by the police against the KPK.

"The situation inside the KPK is uncomfortable [...] because of all of these [police] summonses. Therefore, steps must be taken quickly by the KPK," he said at the AGO headquarters in South Jakarta.

Another interim KPK commissioner, Indriyanto Seno Adji, said the handover was the legal option that "carries the least amount of risk" for the KPK. He added the KPK had decided against seeking a case review against Judge Sarpin's ruling because it was not applicable in the current case.

Sarpin effect to worsen

KPK interim chairman Taufiequrachman Ruki said the KPK "has lost [Budi's] case. But it doesn't mean we are giving up the fight against corruption, because there is a lot of cases we must handle."

But legal experts contend that this will only embolden corruption suspects who already see Sarpin's controversial ruling as a precedent to have the charges against them dropped before they are even indicted in a court, in what is now widely being called the "Sarpin Effect."

On Thursday, former Democratic Party legislator Sutan Bhatoegana became the latest graft suspect to invoke his right to file a pretrial motion against his booking and arrest by the KPK.

Sutan, who was arrested by the KPK on Feb. 2 after being named a suspect in May 2014 for allegedly taking kickbacks from companies bidding for government oil contracts, has appointed Razman Arif Nasution, who represented Budi during his pretrial hearing, to represent him in court.

The pretrial motion is the third to be filed against the KPK since the South Jakarta District Court ruled in favor of Budi on Feb. 16. Former religious affairs minister Suryadharma Ali and Fuad Amin Imron, a former speaker of district legislature in Bangkalan, East Java, are also preparing to file pretrial motions.

Suryadharma was charged last May with embezzling funds meant for sending pilgrims on the hajj. Fuad was arrested in December on charges of bribery and money-laundering in connection with his position in the local legislature.

"The handover will have too big an effect [...] toward the fight against corruption," Supriyadi W. Eddyono, the executive director of the Institute for Criminal Justice Reform, said on Monday.

"By handing over [the case to the AGO] the KPK is essentially agreeing with the ruling that it has no jurisdiction to investigate suspicious police accounts or similar cases."

He urged the KPK to seek a case review with the Supreme Court, which he said would likely reverse the ruling to stamp out the "bad precedent" set by Sarpin.

Attorney General H.M. Prasetyo indicated that his office was indeed likely to drop the case against Budi.

"The basis [for a possible dropping] is the pretrial ruling that stated that [Budi's] naming as a suspect was invalid," he said. "We will examine [the KPK's] investigation because the prosecutors' office is not the one conducting the investigation so we don't know what [the case] is about."

Prasetyo argued that the only reason the KPK handed over Budi's investigation was because the KPK, by law, cannot drop a case. "Meanwhile [Sarpin's ruling] is already final and binding and must be executed," he said.

Prasetyo also said his office would not take into consideration an ongoing probe by the Judicial Commission, the government's watchdog for the judiciary, into Sarpin's ruling, noting that the commission could not overrule the court's decision even if it found it to be questionable.

"We will not be influenced by it. The court has already ruled [the KPK's] investigation to be invalid. So this [ruling] has to be acted upon quickly," Prasetyo said.

Cases against KPK to continue

While seemingly intent to let Budi off the hook, Prasetyo said his office would work closely with the police on the cases against the KPK's Abraham and Bambang. "The cases against the KPK leaders [...] will be handled differently from [Budi's], because in Budi's case there is already a pretrial ruling. The cases against [Abraham and Bambang] will continue," he said.

National Police deputy chief Comr. Gen. Badrodin Haiti, who is Joko's new nominee for police chief, said separately that the police would not drop their investigations into the 24 other KPK officials and investigators unless the criminal complaints against them – most of them filed by people affiliated with Joko's party – were withdrawn. "Otherwise the police will face lawsuits from the plaintiffs," he said.

Badrodin also denied that the investigations were a tit-for-tat over Budi being charged by the KPK, saying that if it were up to him, he would cease the investigations against the KPK officials. "We will work to see that these cases are not continued by trying to convince the plaintiffs," he said.

Source: http://thejakartaglobe.beritasatu.com/news/in-overture-to-ago-a-sign-of-the-KPKs-submission/

Police disobey Jokowi in KPK crisis

Jakarta Post - March 2, 2015

Haeril Halim, Jakarta – A member of an independent team assisting President Joko "Jokowi" Widodo resolve tensions between the National Police and the Corruption Eradication Commission (KPK) – Bambang Widodo Umar – has called on the force to comply with the President's earlier order to stop pressing dubious charges against KPK leaders and investigators.

On Friday, the police brought new charges against suspended KPK chairman Abraham Samad, in addition to his forgery-document case.

This time, the police accused him of also abusing his authority as KPK chairman in regard to his alleged vice presidential ambitions in 2014, despite mounting criticism that such an offense was subject to a breach of ethics, which must be handled internally by the KPK.

In addition to unclear accusations against suspended KPK commissioner Bambang Widjojanto in a perjury case, the National Police have also kept up the pressure on the KPK by insisting on summoning the antigraft body's leading investigator, Novel Baswedan, in an assault case, which was halted in 2012 in the wake of another conflict between the KPK and the National Police.

Umar said that the police had besmirched the image of the President as the country's highest authority by not complying with the order, which Jokowi issued when deciding to cancel the inauguration of Comr. Gen. Budi Gunawan as the country's top cop and to dismiss Abraham and Bambang from their posts as a compromise to resolving the recent standoff between the two institutions.

The police went further, naming Bambang and Abraham suspects as well as accusing 21 KPK investigators of possessing illegal firearms, after the KPK named Budi a graft suspect in its year-long investigation into a total dubious transaction of Rp 95 billion in his bank accounts between 2004 and 2006.

Umar, also a police observer, added that the police must follow the President's order by launching case exposes to determine whether cases against Abraham, Bambang and Novel met the criteria of a criminal case.

"If the case expose forums find no indication of irregularities, then the police must go ahead and process the cases, but if there are irregularities then they must be stopped," Umar said, adding that such a forum was attended by the head of the police, investigators and experts.

On Feb. 16, the South Jakarta District Court controversially approved a pretrial petition filed by Budi to challenge his graft suspect status that had earlier been issued to him the KPK. The court ordered the KPK to stop the investigation into the police general. The verdict said the KPK's investigation into Budi was "invalid".

As Law No. 30/2002 on the KPK prohibits the antigraft body from halting a corruption investigation, Umar said the current KPK leaders should not rush into handing the case to the Attorney General's Office (AGO) or the National Police, as earlier voiced by acting KPK chairman Taufiequrachman Ruki.

Umar added that handing over the case to either the police or the AGO could tarnish the credibility of the antigraft body.

"The KPK must also conduct an expose case forum on Budi's case. If the forum confirms that the KPK has no authority to proceed [as said by the verdict] then the hand over mechanism is possible [or the other way around]," Umar said.

Emerson Yuntho of Indonesia Corruption Watch (ICW) lambasted Ruki for voicing such an option, adding that the KPK must continue Budi's investigation.

According to Emerson, the KPK risked losing public support if it transferred Budi's case. He added that the Supreme Court must act to annul the controversial verdict.

Source: http://www.thejakartapost.com/news/2015/03/02/police-disobey-jokowi-KPK-crisis.html

AGO to hand over Budi Gunawan case to police

Jakarta Post - March 2, 2015

Jakarta – The Attorney General's Office (AGO) will hand over the Budi Gunawan case to the National Police.

"To be more effective, I, in my capacity as attorney general, will hand over Budi's dossier to the National Police to be dealt with in accordance with the law," he said in a press conference in Jakarta on Monday.

Prasetyo made the statement moments after he received Budi's dossier from Corruption Eradication Commission (KPK) leaders.

Following a meeting between KPK leaders and the AGO on Sunday, acting KPK chairman Taufiequrachman Ruki handed over Budi's case to Attorney General Praestyo at the AGO building in South Jakarta on Monday after the South Jakarta District Court invalidated the KPK's move to name head of the Police Education Institute Comr. Gen. Budi Gunawan a graft suspect.

According to the 1999 Corruption Law, the KPK is not allowed to drop a graft case. Budi was named a suspect on allegations that he accepted a bribe from a businesswoman while he was chief of the career and human resources development division at the police headquarters from 2004 through 2006.

Also present at the handover were deputy police chief Comr. Gen. Badrodin Haiti, who has been nominated as police chief, Coordinating Political, Legal & Security Affairs Minister Tedjo Edhy Purdijatno, Law and Human Rights Minister Yasonna Laoly and the five KPK leaders. (rms)

Source: http://www.thejakartapost.com/news/2015/03/02/ago-hand-over-budi-gunawan-case-police.html

Graft & corruption

Probe Megawati's role in BLBI case: NGO

Jakarta Post - March 2, 2015

Jakarta – The Indonesian Forum for Budget Transparency (FITRA) has urged President Joko "Jokowi" Widodo to investigate the controversial decision of former president Megawati Soekarnoputri in the 2002 Bank Indonesia liquidity support (BLBI) case.

"It is ironic that Megawati issued a presidential instruction, freeing recipients of the funds from the obligation to fully repay their debts. [Investigation into] these five recipients must be completed," FITRA secretary-general Yenny Sucipto said in a press conference in Jakarta on Sunday, as quoted by kompas.com.

Through the issuance of Presidential Decree No. 8/2002, Megawati regulated the "release and discharge" of recipients of the 702 trillion BLBI fund to pay their debts. The debtors include the Salim Group of Bank Central Asia (BCA), Sjamsul Nursalim of Bank Dagang Negara Indonesia (BDNI), M. Hasan of Bank Umum Nasional (BUN), Sudwikatmono of Bank Surya and Ibrahim Risjad of RSI Bank.

Fitra hopes Jokowi will examine the decree and order the Supreme Audit Agency (BPK) and the Financial Transaction Reports and Analysis Centre (PPATK) to audit the BLBI funds disbursement.

"Jokowi needs to have courage. I believe that Jokowi is consistent. He must be ready to uphold the law," Yenny added.

Source: http://www.thejakartapost.com/news/2015/03/02/national-scene-probe-megawati-s-role-blbi-case-ngo.html

Terrorism & religious extremism

Jokowi tells police, army to focus on terrorism prevention

Jakarta Globe - March 3, 2015

Farouk Arnaz, Jakarta – Indonesia's security forces must prioritize the prevention of terrorism in the country, President Joko Widodo said on Tuesday during a meeting with leaders of the National Police and the Indonesian Military (TNI).

"In handling terrorism, prevention is our top priority. We shouldn't wait until something happens and then take action," Joko, popularly known as Jokowi, told a press conference after the meeting.

Joko said he believed that the country's security and defense forces should work together to collect information to prevent terrorism.

The president also warned that such terrorist organizations as the Islamic State (also known as ISIS) movement in Iraq and Syria continued to pose a global threat. "Indonesia and also other countries are currently facing a similar challenge: the doctrine of ISIS," said Joko.

The National Counterterrorism Agency, or BNPT, in December last year said 350 Indonesians had traveled to Syria to join IS. Terrorism expert Al Chaidar, meanwhile, estimated that IS has as many as two million sympathizers in Indonesia.

Although only a small portion of them translate the sympathy into actual actions by directly going to Syria or Iraq to support the extremist group or helping them with financial assistance, concerns are growing that those who have gone to Syria and Iraq will attempt to spread the movement's extreme ideology among Indonesia's largely moderate Muslim population upon their return home.

The coordinating minister for political, legal and security affairs, Tedjo Edhy Purdjiatno, said on Tuesday that some Indonesians seeking to join IS pretended to go to Turkey or Jordan for a vacation before entering Syria or Iraq.

Economic growth

Joko on Tuesday instructed the police and army to keep the country secure to boost economic growth.

"We must maintain stability so we can reach our economic growth and infrastructure development targets," the president said. Joko has set an annual growth target of 7 percent for the next three years.

Separately on Tuesday, Comr. Gen. Badrodin Haiti, the deputy chief of National Police, announced that an agreement had been signed with the TNI to organize joint training sessions for young officers and boost ties between the two organizations.

"We've agreed to have a joint basic training for six weeks for army and police recruits in order to strengthen our relationship... so that we can work together very well in the field," Badrodin said.

"That is a new modus operandi. Going for a tour and then disappearing. I've received this information," Tedjo said.

Source: http://thejakartaglobe.beritasatu.com/news/jokowi-tells-police-army-focus-terrorism-prevention/

Freedom of religion & worship

Muslim, Buddhist leaders denounce religious strife

Jakarta Post - March 5, 2015

Bambang Muryanto, Magelang, Central Java – Muslim and Buddhist leaders from South and Southeast Asia have issued the Yogyakarta Statement, which refuses the use of Islam and Buddha in the politics of discrimination and violence.

In the statement, religious leaders from 15 countries called on Muslim and Buddhist communities to maintain peace because Buddhism and Islam are two of the world's largest religions.

"We reject such abuse and pledge to counter extremist religious interpretations and action with our authentic primary narratives of peace," declared Sri Lanka Council of Religion for Peace president Bellanwila Wimalaratana Anunayake Thera, representing the Buddhist community in Sri Lanka, at Borobudur temple, Magelang, Central Java, on Wednesday.

Bellanwila pointed out that Islam and Buddha had similar teachings, such as peace, love, compassion and a commitment to justice for all mankind.

Both religions also respect the sanctity of life and human dignity as a basis to ensure basic human rights without discriminating between race, color, language or religion, he went on.

The Yogyakarta Statement, addressed to all the people of the world, is the result of a high-level summit of Buddhist and Muslim leaders entitled "Overcoming Extremism and Advancing Peace with Justice", which lasted for two days in Yogyakarta and at Borobudur.

The event was organized by the Indonesian Ulema Council (MUI) and the Council of Buddhist Communities (Walubi) and sponsored by the International Forum on Buddhist-Muslim Relations (BMF).

"We also recognize the need to strengthen governmental measures against religiously motivated discrimination and violence," Bellanwila said.

Based on international instruments such as Article 20 of the ICCPR and the UN Human Rights Council Resolution 16/18, he said all states should fulfill their responsibilities to protect their citizens from religious and racial discrimination and violence.

Meanwhile, the International Movement for a Just World president Chandra Muzaffar, representing Muslim leaders, said leaders of both religions would encourage solidarity, joint strategic actions, education, advocacy and prevention of the emergence of conflicts.

"We will also develop the effective use of media for positive messaging, particularly social and alternative media," said Chandra.

He went on to say that the meeting was very important in light of the potential for conflict between Buddhist and Muslim communities in the Southeast and South Asia regions, such as in Thailand, Myanmar, Sri Lanka and Bangladesh.

"If we want peace and justice, it is very important for Buddhists and Muslims to come together because these are two major world religions. If we look at Southeast Asia in particular, where 42 percent of Muslims and 40 percent of Buddhists are found, we find two almost equal communities and they must have good relationships," Chandra argued.

He added that the rise in religious extremism in various corners of the world could not be generalized. However, usually the conflicts, under the name of religion, arose if there was oppression, occupation or poverty caused by the pilfering of natural resources.

MUI chairman Din Syamsuddin said extremism also developed from religious misinterpretations.

Din expressed hope that the religious leaders would spread the Yogyakarta Statement in their respective communities. "The Yogyakarta Statement is very meaningful. It is not for Buddhists and Muslims only; it is for the whole world," he said.

Religions for Peace deputy secretary general Rev. Kyoichi Sugino said his organization would translate the Yogyakarta Statement into nine languages. "We will send it to young people around the world, so they can correct their leaders if they speak out wrongly," said Sugino.

Source: http://www.thejakartapost.com/news/2015/03/05/muslim-buddhist-leaders-denounce-religious-strife.html

Blasphemy Law sows radicalization: Experts

Jakarta Post - March 4, 2015

Fedina S. Sundaryani, Jakarta – Experts have warned that implementation of the Blasphemy Law could lead to the radicalization of Muslims.

Tobias Basuki, a political analyst from Jakarta-based Centre for Strategic and International Studies (CSIS), said that fear of being charged under the Blasphemy Law or attacked by hard-line groups had discouraged moderate Muslims and minority groups from joining debates on religion, especially Islam.

"Minority groups have been silenced, especially in the past 10 years, because of [former president] Susilo Bambang Yudhoyono's inaction. After all that now we're heading toward a condition where silencing others is acceptable," said Tobias at a seminar on Tuesday.

Although Yudhoyono was hailed internationally for encouraging pluralism, many lamented the fact that many who questioned mainstream religious teachings were charged with blasphemy under his watch.

Article 156 of the Criminal Code (KUHP) stipulates that those found guilty of publicly displaying hostility, hatred or contempt toward a group of people could face a maximum prison sentence of five years.

On top of such a draconian law, hard-line groups such as the Islam Defenders Front (FPI) have the freedom to crack down on minority groups and individuals promoting an inclusive version of Islam.

Paul Marshall, a senior fellow at the Jakarta-based Leimena Institute, said that his extensive research on Muslim countries and religious freedom showed that the greatest danger to religious pluralism did not come from the government implementing the Blasphemy Law but from mobs and militant groups who would take the law in their own hands if they felt that someone had insulted their religion.

"The danger is when you get a passive state where the government just sits there when 100 people attack someone for what they said or who they are [...] this allows violence to flourish," he said.

Marshall said that the government's unwillingness to protect citizens against such groups made them afraid to raise religious issues, especially to contradict extremist views. "There's a danger of increasing radicalization because you start to only hear one voice," he said.

Rights watchdog group Setara Institute reported 135 cases of religious- based violence across the country in 2007. The latest figures show the number of case rose to 264 in 2012.

Members of the Ahmadiyah and Shia communities have been subjected to repeated attacks by Sunni Muslims who condemn them for their beliefs and teachings. Several Protestant and Catholic groups have also been prevented from building churches even though they have valid permits.

However, Marshall acknowledged that the situation was much better in Indonesia as the Blasphemy Law was more lenient than in other countries and there had not been too many allegations against members of the community.

Furthermore, attacks against minority groups were not as prevalent as they were in Middle Eastern countries for instance, he said.

"There's increasing sentiment here that the Indonesian understanding of Islam and its efforts in inter-religious relations should have more influence in the Muslim world than it actually has. The influence has been largely one way from the Middle East to Indonesia," he said.

Source: http://www.thejakartapost.com/news/2015/03/04/blasphemy-law-sows-radicalization-experts.html

Tolerance touted for local Muslims, again

Jakarta Post - March 1, 2015

Fedina S. Sundaryani, Jakarta – Religious leaders are urging Muslims nationwide to take the lead in promoting religious tolerance in multicultural Indonesia.

They issued the joint statement after a two-day forum where they discussed ways to encourage a greater appreciation of religious diversity. Ahmad Fuad Fanani, research director at the Maarif Institute for Culture and Humanity, said Muslim organizations should also be more open to discussions of pluralism. He encouraged the issuance of a fatwa on the subject.

"Organizations such as Muhammadiyah [the second-largest Islamic organization in the country] should seriously discuss tolerance and diversity during their national meetings so that members of their communities can be more accepting of minority groups," he told The Jakarta Post on Saturday.

Fuad said Muslims in the country needed to accept that despite being a Muslim-majority nation, Indonesia was a plural society with peoples of diverse cultures and faiths.

It is also incumbent upon the government to promote religious pluralism, Fuad said. "It is the government's job to protect the peace and prevent conflicts by continuing to tell the public that diversity is a fact of life," he said.

Meanwhile, Religious Affairs Minister Lukman Hakim Saifuddin acknowledged that intensifying religious conflict was a threat that could lead to the nation's unraveling.

Rights watchdog group Setara Institute reported 135 cases of religious- based violence across the country in 2007. The latest figures show the number of case rose to 264 in 2012.

Members of the Ahmadiyah and Shia communities have been subjected to repeated attacks by Sunni Muslims who condemn them for their beliefs and teachings.

Members of the Indonesian Christian Church (GKI) Yasmin in Bogor have also faced hardships after being denied, for a fifth consecutive year, the right to hold a Christmas service at their church, which has been sealed by city authorities in response to public pressure in 2010.

"What we need right now is a public and a leadership that is responsive to a diversity becoming increasingly complex. We need to find ways to not get distracted by our own diversity," Lukman said.

Ahmad Syafii Maarif, former chairman of Muhammadiyah and founder of the Maarif Institute, said the effort to promote pluralism in the country must start with Muslims themselves.

Syafii said he was concerned that some Muslims were more concerned to see Islam as the nation's dominant faith than with striving to understand the religion's true teachings.

"If we look at what is taught in the Koran, Muslims here have yet to practice tolerance of all faiths. We should not be concerned with the number of Muslims [in the country] but with the quality of Muslims [in the country]," he said.

Syafii urged Muslims to adhere to the inclusive teachings of the Koran so that minority groups in the country would be less worried about militant groups attacking their places of worship under the guise of Islam.

Wawan Gunawan Abdul Wahid of Muhammadiyah pointed out that Islam was an inclusive faith with no explicit teachings against non-Muslim political leadership. "This means that there is always the possibility of a non- Muslim leader leading a large Muslim community as long as they allow for religious freedom," he said.

Source: http://www.thejakartapost.com/news/2015/03/01/tolerance-touted-local-muslims-again.html

Agriculture & food security

Fall in rice output tests Jokowi's food vision

Jakarta Post - March 3, 2015

Satria Sambijantoro, Jakarta – Farmers reported declining rice production throughout last year, indicating a challenging test for President Joko "Jokowi" Widodo's goal to secure the domestic rice supply without imports.

The Central Statistics Agency (BPS) reported on Monday that total output estimates, harvest area and farmers' productivity in the rice sector all declined in 2014 from the previous year.

Latest BPS data show that total rice-production estimates declined 450,000 tons year-on-year to 70.8 million tons in 2014, a sharp turnaround from a 2.2 million ton increase posted the previous year.

The declining rice production last year was due mostly to seasonal factors such as bad weather, BPS deputy head for statistics Sasmito Hadi Wibowo told a press briefing.

Whether the new government could achieve its future goal to secure food supply without imports, Sasmito said, would depend on whether it could realize the farming infrastructure projects planned for this year.

The Jokowi administration has vowed to improve farming infrastructure as the President seeks to strengthen domestic food supply to make the nation less reliant on imports. His plan includes an ambitious project to build 49 new dams over five years to improve irrigation for local farmers.

Total output of rice, the main staple food for Indonesia's citizens, is targeted by Jokowi to rise to 82 million tons by the end of 2019, up more than 15 percent or by 11.2 million tons from the current level.

In the corresponding period, corn production is expected to hit 23.4 million tons from the current rate of 19 million tons, while soybean production is hoped to reach 1 million from 953,000 tons.

Coordinating Economic Minister Sofyan Djalil said Monday that he was still optimistic about the food sovereignty goal, citing the government's planned support to local farmers in order to boost their productivity.

"We plan the involvement of the TNI [the Indonesian Military] and its Babinsa unit [non-commissioned officers assigned to villages] to safeguard the distribution of seeds and fertilizers and to help local farmers," he said at his Jakarta office. "There will be a systematic effort to boost rice production."

In its efforts to bolster the domestic food supply, the new government is hampered not only by declining rice output, but also by the prevalence of traders illicitly manipulating rice prices in the market.

This year, rice prices in certain areas of Indonesia have already surged more than 30 percent, with Trade Minister Rachmat Gobel blaming the issue on a "rice mafia" looking to push the government to open stalled imports.

On Monday, the BPS revealed a finding that justified suspicions that unscrupulous traders were hoarding rice stockpiles to benefit from higher prices.

Despite the increase in rice prices in the market, the price of unhusked rice (gabah) produced by local farmers fell to Rp 4,922 (0.37 US cents) per kilogram in February from Rp 5,357 per kg a month earlier, the statistics agency reported.

"Some traders are reaping huge profits here, as they manage to buy rice at low prices from farmers and sell it at high prices," said the BPS' Sasmito.

He argued that the government's decision not to import rice was the correct move, as an influx of imports would only serve to push down the value of unhusked rice sold by local farmers, eventually affecting their welfare and purchasing power.

Source: http://www.thejakartapost.com/news/2015/03/03/fall-rice-output-tests-jokowi-s-food-vision.html

Land & agrarian conflicts

Greenpeace halts APP deal after brutal murder

Jakarta Post - March 3, 2015

Jon Afrizal, Jambi – Environmental group Greenpeace has suspended cooperation with giant Asia Pulp and Paper (APP) as police are trying to prevent further violence after a farmer was allegedly beaten to death in Jambi by guards linked to the company.

Bustar Maitar, the head of Greenpeace's Indonesia forest campaign, told Agence France-Presse on Monday that the group was temporarily withdrawing support for the company's initiatives on forest conservation.

Maitar said support for APP would be suspended until the case was "settled in a transparent and fair manner". "They have declared themselves to be a responsible company. If APP doesn't take this seriously, it will cost them their reputation," he said.

The green lobby group had once been one of the strongest critics of APP, accusing it of destroying vast swathes of carbon-rich forests that were home to endangered species such as Sumatran orangutans and tigers.

Police said the farmer, Indra Pelani, was allegedly killed on Friday afternoon near an acacia plantation by the company's Kembar 803 post in Tebo regency in Jambi province after being beaten by a rapid response unit (URC) team from a security firm contracted by Wira Karya Sakti (WKS), a pulpwood supplier owned by APP, a member of the Sinarmas Group of companies.

Jambi Police chief Brig. Gen. Bambang Sudarisman said the beating started when Indra and Nick Karim of the Jambi branch of the Indonesian Forum for the Environment (Walhi) passed the post on a motorcycle and became involved in an argument with the URC team members.

The argument ended with the team members beating Indra while Nick was reportedly told by locals to run away. Indra died in the incident and his body was dumped some 5 kilometers from the company's District 8 area.

"There were seven of them who did the beating, namely Asmadi, Febrian, Ayatullah, M. Ridho, Zaidian, Depsa and Jimmi," Bambang said. He said he had undertaken some measures to prevent people from getting provoked by the incident.

Meanwhile, APP said in a statement that it had ordered WKS Sakti to suspend all personnel allegedly involved in the incident. "We condemn violence and we support Greenpeace's decision to focus its efforts on this issue," it said, adding that efforts would be made "to ensure that justice is done".

APP's pledge to stop using logs from Indonesia's natural forests followed years of campaigning by green groups, which had led to the company losing packaging contracts with big brands such as food maker Kraft and Mattel, manufacturer of the popular Barbie doll.

Bambang has written a letter to the National Police informing deputy chief Comr. Gen. Badrodin Haiti of Indra's death.

Source: http://www.thejakartapost.com/news/2015/03/03/greenpeace-halts-app-deal-after-brutal-murder.html

Governance & administration

Jokowi's chief of staff given even more powerful role

Jakarta Globe - March 2, 2015

Ezra Sihite, Jakarta – President Joko Widodo's chief of staff Luhut Panjaitan has been granted greater authority to coordinate key policy initiatives, under a new Presidential Regulation, or Perpres.

Luhut, a former army general and Golkar Party member who switched allegiances to Joko's camp ahead of last year's election, will become involved in streamlining policy initiatives across ministries and even coordinating the work of coordinating ministers, Cabinet Secretary Andi Widjajanto said on Monday.

Andi explained that Luhut would focus on the implementation of strategic programs and would still be reporting directly to the president.

"The president has five priority programs," Andi said at the State Palace. "Infrastructure, maritime affairs, tourism, energy and food. Well, these five priority programs need to be coordinated across ministries and agencies."

The cabinet secretary said Luhut's new role under Perpres No. 26/2015 could be compared to that of the now-defunct Presidential Delivery Unity for Development, Monitoring and Oversight (UKP4), which was established by former president Susilo Bambang Yudhoyono during his second term in office.

The UKP4 was tasked with monitoring the government's development programs, dealing with a wide range of issues – from simplifying investment bureaucracy to supervising carbon trading programs. It was also tasked with monitoring and evaluating ministries' performances.

Andi stressed, however, that the chief of staff would not be given "super" powers and that he would be working together closely with the State Secretariat, the Cabinet Secretariat, the National Development Planning Agency (Bappenas) and the State Finance Development Comptroller (BPKP).

The appointment of Luhut as chief of staff late last year was seen by observers at the time as an attempt by the president to gain the upper hand in political power plays being waged within his government.

Joko, a junior member of the Indonesian Democratic Party of Struggle (PDI- P), has since his inauguration in October been seen by many as struggling under the thumb of elite politicians who have closed ranks around him – mainly PDI-P chairwoman Megawati Soekarnoputri, National Democrat (NasDem) party chairman and media mogul Surya Paloh, and Vice President Jusuf Kalla.

Hamdi Muluk, a political psychology professor at the University of Indonesia (UI), said earlier this year about Luhut's appointment that the presidential chief of staff was a very strategic position.

"[Luhuk's appointment] may be one of Jokowi's tactics to balance the power play around him," Hamdi said, referring to Joko by his nickname. "And I think it will surely work. Luhut is quite a powerful [politician], and Jokowi himself said he had known Luhut, had been friends with him for quite some time. They can trust each other, they can work well together."

Hamdi pointed out that Luhut was not only a veteran politician, but he also had strong military links, particularly within the army.

Luhut served as a commander in the Army's Special Forces unit Kopassus, and a commander of its infantry division. He was appointed as the Indonesian ambassador to Singapore by former president B.J. Habibie in 1999, and named industry and trade minister during the late Abdurrahman "Gus Dur" Wahid's presidency from 2000 to 2001.

Source: http://thejakartaglobe.beritasatu.com/news/jokowis-chief-staff-given-even-powerful-role/

Jakarta & urban life

Basuki ups the ante in Jakarta budget brouhaha

Jakarta Globe - March 3, 2015

Lenny Tristia Tambun & Deti Mega Purnamasari, Jakarta – Governor Basuki Tjahaja Purnama of Jakarta on Tuesday revealed more irregularities inside the city's budget proposal, which has been revised by the Jakarta City Council, saying it is filled with programs not proposed or even needed by city officials.

The revised budget plan was uploaded to the city government's official website, Jakarta.go.id, and the governor's personal site Ahok.org, referring to Basuki's popular nickname.

"I intentionally uploaded City Hall's version of the budget proposal and the City Council's [...] so people can judge for themselves which of the two is more appropriate," Basuki said on Tuesday.

Among the Rp 12.1 trillion ($933 million) worth of unsolicited programs is the Rp 3 billion sanitation fee for the Marunda low-cost apartments in North Jakarta.

Then there's the Rp 2.4 billion project to refurbish the Lubang Buaya urban ward's office in East Jakarta. The ward chief, Fathoni, confirmed on Tuesday that his office was in need of a renovation but said he had only requested funds of Rp 100 million.

Basuki also highlighted the Rp 30 billion project to publish a three-part biography of the governor and distribute them to schools across the capital, which he said was never proposed by his administration.

"The council's budget also includes the procurement of 3-D scanners, uninterruptible power supply [for schools] and many other programs that are not part of the city administration's plans. This is what I'm fighting against," he said.

"I am not fighting for myself. This is a fight to build a more transparent budgeting system." Such irregularities may occur across Indonesia; they may even mar the state budget," he added.

In an unprecedented move, Basuki has refused to submit the Rp 90 trillion budget proposal approved by the City Council to the Home Affairs Ministry, submitting instead what he calls the low-cost version – at Rp 78 trillion – that his administration initially proposed.

Incensed, the City Council voted overwhelmingly last Thursday to launch an inquiry into his refusal to submit its version of the budget to the Home Affairs Ministry – a process that could potentially lead to Basuki's impeachment.

In response, Basuki accused the councilors of inserting unauthorized and dubious spending programs into City Hall's budget, and just a day later filed a criminal complaint with the Corruption Eradication Commission (KPK) over the Rp 12 trillion markup.

The United Development Party (PPP) on Tuesday became the second party to withdraw support for the inquiry, after the National Democrat Party (NasDem) reneged on its "yea" vote on Monday.

The National Awakening Party (PKB) is mulling a similar move, PKB politician Hasbillah Ilyas said, adding that the party "does not want to be seen as supporting a troublesome budget proposal."

But these three parties only represent a minority. Those in favor of the inquiry still make up 85 out of 106 members of the City Council.

Support for a probe has dwindled since Basuki approached the KPK with allegations that similar acts of budget manipulation are a common part of legislative deliberations year after year.

The governor also submitted audits by the city's Inspectorate General and the State Finance Development Comptroller (BPKP) that revealed the council inserted numerous programs into the budget after City Hall submitted it for deliberation.

In response, the council lawyered up on Tuesday and vowed to sue Basuki over three main issues: defamation, forging the 2015 budget, and attempts to bribe council members.

"We will file these complaints with the police on Monday, at the latest," said the newly appointed lawyer, Razman Arif Nasution.

Razman recently shot to fame for representing former National Police chief candidate Comr. Gen. Budi Gunawan in a KPK bribery investigation.

Basuki has throughout the brouhaha garnered praise and support from activists, citizens as well as his own staff, who see his effort as a milestone in the fight against corruption.

"Ahok must fight on. Let [the recent events] be a lesson and example to other regional leaders; should they find any irregularities in their respective budgets, they should not be afraid to report them," said Ade Irawan, Indonesia Corruption Watch coordinator.

Although Basuki has remained uncompromising, his deputy, Djarot Saiful Hidayat, has not. Djarot on Sunday staged a meeting with his fellow Indonesian Democratic Party of Struggle (PDI-P) politicians – council speaker Prasetio Edi Marsudi and Home Affairs Minister Tjahjo Kumolo – to discuss possible resolutions to the increasingly heated standoff.

The PDI-P, the biggest party at the council with 28 members, has so far been adamant about plans for an inquiry. Tjahjo has also defended the council, saying there was no such thing as "unwarranted programs" once the budget passed the deliberation stage. It would be impossible for councilors to insert more programs without the government's consent, he added.

Basuki on Tuesday said he never asked Djarot to conduct the meeting, adding that he would not bow down to pressure from the council or the Home Affairs Ministry.

"Djarot and I are friends. But if he feels uncomfortable about [defending the original budget] because of his political affiliations or loyalties, then he should stay out of this," he said. "I am fine on my own, if not better."

Source: http://thejakartaglobe.beritasatu.com/news/jakarta/basuki-ups-ante-jakarta-budget-brouhaha/

Its bluff called, city council starts to wilt in dispute with Basuki

Jakarta Globe - March 2, 2015

Lenny Tristia Tambun, Deti Mega Purnamasari & Carlos Paath, Jakarta – The National Democratic (NasDem) Party on Monday retracted its support for a legislative inquiry that could lead to impeachment proceedings against Jakarta Governor Basuki Tjahaja Purnama, following the latter's vow to reveal alleged budget manipulation by the Jakarta City Council and setting the stage for more U-turns.

Patrice Rio Capella, the secretary general of the party known as NasDem, said the party's central leadership board had instructed all of its members in the City Council to withdraw their support from a vote that passed last week calling for an inquiry against Basuki.

"We would also like to apologize for disrupting public services [as a result of the standoff] which has drained much energy and attention and disrupted the development of Jakarta," Patrice said, adding that the instruction came directly from NasDem chairman Surya Paloh.

In an unprecedented move, Basuki has refused to submit the Rp 90 trillion ($6.94 billion) budget proposal approved by the City Council to the Home Affairs Ministry – submitting instead what he says is the lower-cost version, at Rp 78 trillion, that his administration had initially proposed to the council.

Spooked councilors

In calling the City Council's bluff, Basuki appears to have spooked at least one party, NasDem, which was left scrambling for excuses for its flip-flop.

Enggartiasto Lukito, a member of the party's central leadership board, claimed NasDem had indeed been committed to the council's plan for an inquiry, which he said would have also expose any attempt to inflate the budget.

"But because [the KPK] has pledged to investigate the case," he said, NasDem felt the council's inquiry is no longer necessary. "We urge the KPK to prioritize what [Basuki] has reported," he added.

Basuki praised NasDem for dropping its support for the inquiry. "NasDem is right for saying that it wants an investigation into the Rp 12 trillion [in unsanctioned programs] and moving away from supporting the inquiry," he said at City Hall.

"Other parties that say they want the Rp 12 trillion [in programs] dropped but that continue to support the call for an inquiry against [me] are being hypocritical."

Unconditional support

The KPK vowed last week vowed to follow up on Basuki's allegation, after the governor deposited several reams of paperwork that he said held evidence of "stealth spending" inserted into the budget after it was submitted by City Hall to the City Council.

The illicit spending, he said, was confirmed by separate audits conducted by the Jakarta Supreme Audit Agency (BPKD) and the Regional Development Planning Agency (Bappeda).

Basuki also said he had secured "unconditional support" from President Joko Widodo, who promised to end similar practices nationwide. NasDem is a member of Joko's ruling coalition, which is led by the president's Indonesian Democratic Party of Struggle, or PDI-P.

Deputy Governor Djarot Saiful Hidayat, a PDI-P member, said he would push his party colleague to also drop their support for the inquiry into Basuki.

"I hope all [parties] drop their support for the inquiry," he said. "Let the Home Affairs Ministry resolve [the budget dispute] and let's just focus on what the people really need. We need to get the budget approved so that we can resume our work."

Given that Djarot, Home Affairs Minister Tjahjo Kumolo and City Council Speaker Prasetio Edi Marsudi are all from the PDI-P, the problem should be resolved soon, said Hasto Kristiyanto, the party's acting secretary general.

"Whatever the problem is, the people should not be the ones to suffer. All sides must sit down and resolve this matter with a cool head," he said.

But Hasto stressed that the PDI-P had not withdrawn its support for the inquiry. Djarot said Tjahjo had agreed to facilitate a meeting between City Council leaders and City Hall.

Ministry spokesman Dodi Riatmadji said separately that his office was examining the original budget proposed by Basuki's office and the version approved by the council.

"The result [of the examination] will be submitted [to City Hall] on [Saturday]," he said, adding that both parties must respect whatever decision the ministry made on the issue. "The governor and the council [...] are both part of the city," he said.

Tjahjo said his ministry would not meddle in the KPK's investigation into the matter, saying his only concern was "the administrative side of things."

"I met with the council speaker and deputy governor in Jakarta on Sunday. But we haven't reached an agreement. We will meet again [on Tuesday]," he said.

Tjahjo also lauded Basuki's move to expose the alleged budget manipulation. "If there are indeed unsanctioned programs, then we must hold the budget while the political and legal processes take place," he said.

Unsolicited spending

Among the spending items that the councilors allegedly inserted into the budget was the procurement of uninterruptible power supply systems for 55 schools across the city, at a cost of nearly Rp 6 billion each. The schools say they neither need nor asked for the devices, whose prices are highly inflated from retail prices.

Former Jakarta Education Office chief Lasro Marbun said the procurement of similar equipment was also included in the city budget last year. And as with the current proposal, it was never requested by his office.

"The planning, budgeting, usage and procurement process of these UPS machines is being investigated by the State Finance Development Comptroller [BPKP]. My office never requested it; we don't know who did or why," Lasro said. He added that his office quickly halted last year's procurement after discovering the unsanctioned program.

This year's budget also calls for a "biographical trilogy" on the governor, which Basuki said he had never heard about. Lasro, now the city administration's inspector general, said the education office had also not asked for the trilogy.

The Jakarta Globe has independently verified that last year's procurement of UPS machines was unsolicited by the schools, many of which do not have computers. A search for the companies appointed to provide the equipment led to dilapidated warehouse and empty buildings.

Source: http://thejakartaglobe.beritasatu.com/news/jakarta/bluff-called-city-council-starts-wilt-dispute-basuki/

Residents support Ahok during Car Free Day

Jakarta Post - March 2, 2015

Corry Elyda, Jakarta – Hari Baskoro, 39, said he was on a mission when attending Car Free Day on Jl. Sudirman and Jl. MH Thamrin on Sunday morning.

"I intentionally came here to give my support to Ahok," he said while showing off a caricatured face of Jakarta Governor Basuki "Ahok" Tjahaja Purnama on his T-shirt.

The resident of Pejompongan in Central Jakarta said he wanted to take real action to show his stance because he believed Ahok was trying to protect the city budget from unnecessary allocations like the procurement of uninterruptible power supply (UPS) device for schools and offices.

"I want Pak Ahok to know that many people support him. I also represent my extended family members who also support him," he said.

Hari was not alone. Hundreds of other Jakartans gathered at the Hotel Indonesia traffic circle to express their support for Ahok.

Aditya Yogi Prabowo, the coordinator of the event, said the movement started on social media when around 500 followers of his account twitter @temanahok (friends of Ahok) agreed to gather more support during the Car Free Day event. As of Sunday evening, the account had gained 14,700 followers.

"Ahok does not have any political party that supports him but he has us, the residents of Jakarta," Aditya said, adding that around 1,500 people had signed a petition to support the governor on Sunday.

Ahok has not held political party membership since he left the Gerindra Party last year.

Support for Ahok was also seen in an online petition on Change.org to disperse the City Council. More than 40,000 people had signed the petition as of Sunday evening.

The governor has been at odds with the council since the submission of the administration's e-budget version of the 2015 city budget to the Home Ministry.

The council drafted its own budget after stating that the one submitted by the city administration to the ministry was "illegal", claiming it had been drafted without approval from councilors.

In response, Ahok said he only wanted to have a transparent working culture, which was not shown in the council's version of the budget, where Rp 12.1 trillion (US$931.7 million) of approved programs and projects had been erased and replaced with questionable allocations by councilors.

The governor reported the irregularities in the 2015 and 2014 city budgets to the Corruption Eradication Commission (KPK) last Friday. Documents on the city's version of the 2015 budget and the council's version were also available for download on his personal website Ahok.org.

Meanwhile, an opposing group also tried to rally people against Ahok during Car Free Day. Members asked passersby to sign white banners bearing the words Cabut Mandat Ahok sebagai Gubernur (Retract Ahok's mandate as governor).

Most comments on the banners, however, were not related to the city budget saga. Riska Destianti, a Pasar Minggu resident, said she was not familiar with the city budget problem, but she agreed to Ahok being unseated because he was arrogant. "I just do not like the way he leads the city," she said.

Source: http://www.thejakartapost.com/news/2015/03/02/residents-support-ahok-during-car-free-day.html

Transport & communication

Indonesia steps up telcom surveillance

Jakarta Post - March 6, 2015

Ina Parlina and Margareth S. Aritonang, Jakarta – Following foreign media reports on alleged spying by New Zealand on Indonesia, National Intelligence Agency (BIN) chief Marciano Norman said Thursday that security authorities in the country had been working to improve communication security.

A document, released by former US National Security Agency contractor Edward Snowden dating back to 2009, released on Thursday, said a New Zealand Government Communications Security Bureau (GCSB) officer had worked with the Australian Signals Directorate to spy on Indonesian telecommunications company Telkomsel, Reuters reported on Thursday.

Marciano said his agency had learned about spying allegations that dated back to the administration of president Susilo Bambang Yudhoyono. Marciano said, "We have been conducting efforts to improve communication security."

The documents said New Zealand's electronic spy agency had also intercepted emails and mobile and fixed-line phone calls in its neighboring small Pacific states, including Fiji, and shared the intelligence with its international allies, for example Australia.

Lawmaker Tantowi Yahya, the deputy chairman of House of Representatives Commission I overseeing defense, foreign affairs and communications, said the House was aiming to regulate divestment initiatives among telecommunications companies operating in the country in an effort to take control of crucial information.

Tantowi, a politician from the Golkar Party, said that one of the efforts could be limiting foreign ownership in telecommunications companies.

He said that such a move would be made possible with the amendment of the 1999 Telecommunications Law, which has been included in the current National Legislation Program (Prolegnas).

"Article 4 of the law clearly states that the telecommunications industry must be under the control of the government. The fact of the matter is there are violations to such stipulations. No wonder we are easily wiretapped," he added.

Golkar has consistently called for the takeover of telecommunications firms Telkomsel and Indosat, both deemed as strategic.

Sixty-five percent of Telkomsel ownership is controlled by state-owned telecommunications firm PT Telekomunikasi Indonesia (Telkom) and 35 percent by Singtel Mobile, a subsidiary of Singapore Telecommunications Ltd.

Meanwhile, 65 percent of Indosat's shares are owned by Qatar-based Ooredoo, 14.29 percent by the Indonesian government and the remaining 20.71 percent by the public.

When asked if President Joko "Jokowi" Widodo had knowledge of the wiretapping allegation, Cabinet Secretary Andi Widjajanto declined to comment.

New Zealand's Prime Minister John Key refused to comment on the disclosures, but had said on Wednesday when asked about their expected release that they were bound to be wrong, Reuters reported. The GCSB also refused to comment.

Key is scheduled to visit Indonesia this year. His last visit was in October 2013 when he attended the APEC Summit in Bali.

Source: http://www.thejakartapost.com/news/2015/03/06/indonesia-steps-telcom-surveillance.html

Criminal justice & prison system

Police chief's 'happy snap' with Bali nine pair Chan and Sukumaran

Sydney Morning Herald - March 5, 2015

Jewel Topsfield, Tom Allard – The Denpasar police chief has denied a grinning photograph of himself and condemned prisoner Andrew Chan was a heartless selfie.

Bizarre photographs emerged on Indonesian news websites of Senior Commissioner Djoko Hari Utomo with his arm draped around Chan's shoulder as if the two were posing for a happy snap.

Senior Commissioner Djoko was photographed standing in the aisle of the Wings Air plane that was about to take Chan and Myuran Sukumaran on their last flight before execution.

The Senior Commissioner told Fairfax Media he was trying to raise the spirits of the Australians and had no idea the photo was being taken.

"It was not a selfie moment," he said. He said he was patting the men's shoulders and urging them to "Be tough, be strong, and keep going".

Chan, who appears stunned, is looking at the camera. The photo was leaked to local media. Sukumaran is also photographed, talking to the police chief. Surrounding the men are Brimob paramilitary officers wearing balaclavas.

The fact the photos were leaked to media outlets is paradoxical, given the tight security at Cilacap airport.

The airport was in lockdown for the arrival of the men on a Wings Air flight and armed Brimob and police officers even patrolled the perimeter fences in the jungle to stop journalists from taking photos of the men's arrival.

The men, organisers of a heroin smuggling syndicate, were taken by ferry from Cilacap to the Nusakambangan prison island, where they are due to be executed.

Families arrive ahead of executions

The families of the condemned men flew into Yogyakarta, in Central Java, on Thursday on their way to Nusakambangan.

Helen Chan, Andrew's mother, joined her son Michael after flying in from Sydney on Wednesday.

Chinthu and Brintha Sukumaran, Myuran's brother and sister, were on the same plane, with other family members and supporters. They joined Raji Sukumaran, Myuran's mother.

Michael Chan and Raji Sukumaran had remained in Bali while other families recently returned home to renew their visas and take a brief break from the emotional strain of visiting Kerobokan prison each day.

The families were picked up by consular vehicles on the tarmac and whisked away to Cilacap. They will be permitted to visit the Bali nine pair on Nusakambangan, where the men are being held in isolation cells.

The Indonesian government is yet to confirm a date for execution, which will be by firing squad. However, the convicts must be given 72 hours' notice.

Source: http://www.smh.com.au/world/police-chiefs-happy-snap-with-bali-nine-pair-andrew-chan-and-myuran-sukumaran-20150305-13w2da.html

Mining & energy

Government presses Newmont to amend contract as MoU expires

Jakarta Post - March 4, 2015

Raras Cahyafitri, Jakarta – The Energy and Mineral Resources Ministry is urging copper miner PT Newmont Nusa Tenggara to complete negotiations over the amendment of the firm's contract of work (CoW) as a previous deal that filled the void has just expired.

Energy and Mineral Resources Minister Sudirman Said stated on Tuesday that the government did not need to extend a memorandum of understanding (MoU) with Newmont, which expired on Tuesday, as it did with another copper giant, PT Freeport Indonesia, which had its MoU extended by six months.

"As I understand it, an extension is not compulsory for an MoU. We won't talk about the MoU; we will talk about matters that are legally needed," Sudirman said, referring to the CoW amendment.

The government has been struggling to renegotiate a number of existing mining and coal contracts to comply with the 2009 Mining Law. To fill a void in the legality of miners' operations, the government has signed MoUs with several miners.

The MoU with Newmont highlighted several points to be adjusted and drafted in the amendment of its contract, which should have been completed six months after the signing of an agreement on Sept. 3 last year between Newmont Nusa Tenggara, a subsidiary of US-based Newmont Mining Corp., and the Ministry's mineral and coal directorate general.

The signing was done after Newmont withdrew its international arbitration appeal against the Indonesian government's policy of banning ore exports. The MoU also secured Newmont the permit to resume export of its semi- finished copper concentrate products.

Under Newmont's MoU, the company has principally agreed to pay higher royalties of 4 percent for copper and 3.75 percent for gold, up from the current rates of 3.5 percent and 1 percent, respectively.

The company's mine size must also be reduced to 66,000 hectares from the around 86,000 hectares it is at present, according to the MoU, which also highlighted Newmont's support for the domestic mineral downstreaming policy by establishing a copper smelter.

Mineral and coal director general R. Sukhyar said that although Newmont's MoU was not extended, his office would continue to work on Newmont's CoW amendment to make it conform to the 2009 Mining Law and ensure that previous terms agreed to would continue to be valid.

"We will accelerate the amendment process and are expecting to finish it in April. We have sent a draft of the amendment, but we haven't received any reply from Newmont," Sukhyar said.

Newmont is now considering sending its copper concentrate to a planned copper smelter that will be built by Freeport.

A deal between the two companies would determine whether the government would issue a permit for Newmont to extend exports of copper concentrates. The permit, issued last year and only valid for six months, is scheduled to expire on March 18.

The possibility of such deal emerged after the government found out that copper concentrate supplies would not be enough to feed to many smelters in the country.

There is currently only one copper smelter in the country, which is operated by PT Smelting Gresik and has a capacity to process up to 1 million tons of copper concentrate per year. Under a plan by Freeport, a new smelter with a capacity of 2 million tons will be built in Gresik. Another smelter is also planned by the Papua administration with a capacity of 900,000 tons.

Source: http://www.thejakartapost.com/news/2015/03/04/govt-presses-newmont-amend-contract-mou-expires.html

Fishing & maritime affairs

Javanese fishermen in violent standoff with police

Jakarta Globe - March 3, 2015

Batang/Rembang, Central Java – Protests by fishermen against Maritime Affairs and Fisheries Minister Susi Pudjiastuti's new ban on the use of some fishing equipment continued in Central Java over the past couple of days, resulting in gridlock on the major highway along the northern coast of Java island and erupting into violence in one town.

Hundreds of people occupied a section of the Pantura Highway in Batang, Central Java, on Tuesday, causing traffic gridlock for several hours before police managed to disperse the crowd following a violent confrontation.

The protestors burned tires and fishing nets on the road in the latest protest against the ministerial regulation, which bans the use of trawls and seine nets to catch fish in Indonesian waters.

The regulation was issued in January, and fishermen in several regions, including West Java, East Java, Bali and West Nusa Tenggara, have since continued to speak out against the ban, conducting rallies in their respective regions, as well as in Jakarta last week.

They have dismissed the ecological concerns cited by Susi as the reason for the new ban, arguing that it is snuffing out their livelihoods, with many of them still relying heavily on the now banned equipment to catch fish.

In Batang on Tuesday, police resorted to using tear gas after protesters refused to move away from the road, despite reports of severe traffic congestion along the highway as a result of their action.

The fishermen retaliated by hurling stones at police, and the demonstration turned violent before officers managed to disperse the crowd. Several protestors were arrested.

"We have arrested a number of people who provoked the crowd," Batang Police chief Adj. Sr. Comr. Widi Atmoko said on Tuesday. "We had no choice but take action because [the protest] had made people worried."

Several police officers were reportedly injured in the incident. It was not clear how many of the protesters were hurt.

Protest coordinator, Asroli, said after the incident that the fishermen were unhappy with the minister's refusal to drop the new regulation. "We're disappointed. This regulation will destroy the livelihoods of fishermen in Batang and also that of all Indonesian fishermen," he said.

Tuesday's protest in Batang was similar to that in Rembang, another Central Java town, on Monday, although the latter did not end in violence.

Hundreds of members of the Rembang United Fishermen's Front blocked part of the Pantura Highway that passes through Rembang, causing traffic congestion for a few hours before police finally managed to negotiate with the protesters and disperse the crowd peacefully.

Fishermen on the northern coast of Java island are expected to continue their rally against the ban, after their protest outside the Presidential Palace and the Ministry of Maritime Affairs and Fisheries' headquarters in Jakarta proved fruitless.

Rofi Munawar, a Prosperous Justice Party (PKS) lawmaker, demanded that the Ministry of Maritime Affairs and Fisheries improves communications with fishermen in its implementation of the trawl and seine net ban, and provides solutions to offset the negative impact of the ban on traditional fishermen, the majority of whom still live below the poverty line.

"The violent protest in Batang is a result of escalating protests [against the ban], which have been persistently voiced by fishermen," said Rofi, also a member of House of Representatives Commission IV, which oversees agriculture, maritime affairs and fisheries.

"This incident shows communication problems and a lack of alternative solutions from the Maritime Affairs and Fisheries Ministry to offset the impact of the ban on the fishing equipment the fishermen have been using until now," he added.

"Banning it is one thing, but creating a solution is way more important. Come up with a solution immediately, don't let this problem drag on."

Aside from the trawl and seine net ban, fishermen also protested against another new regulation that restricts lobster and crab catches. The regulation stipulates that only lobsters more than eight centimeters in length, crabs measuring more than 15 centimeters and flower crabs longer than 10 centimeters can be caught; and that none carrying eggs can be caught.

Minister Susi has continued to defend the new policies, saying they were meant to ensure sustainable fishing, which would benefit fishermen over the long term. She said in January that the bans were necessary because Indonesian fishermen had become overly dependent on unsustainable fishing methods, including the rampant use of trawls, purse seines and even fish bombs.

The minister said she had continued to disseminate information concerning the regulations to get local fishing communities to accept and abide by them.

Source: http://thejakartaglobe.beritasatu.com/news/javanese-fishermen-violent-standoff-police/

Infrastructure & development

Indonesia faces major infrastructure project delays

Jakarta Post - March 7, 2015

Nadya Natahadibrata, Jakarta – The Public Works and Public Housing Ministry is struggling to prepare the tender process for a large number of infrastructure projects to be developed this year, following President Joko "Jokowi" Widodo's instruction to start them as soon as possible.

Public Works and Public Housing Minister Basuki Hadimuljono said preparations were ongoing but it would be difficult to open the tender process by March, as previously scheduled, because of the large number of projects involved.

The minister estimated less than 50 percent of this year's infrastructure projects could be put to tender by the early March deadline.

According to the minister, from a Rp 118 trillion (US$9.03 billion) budget for the ministry, Rp 94.5 trillion is allocated to new infrastructure projects, while the rest – Rp 12.8 trillion – is for maintenance work, including road and irrigation repairs.

"From the Rp 94.5 trillion in new projects, only about Rp 40.2 trillion worth of projects can be tendered as of early March," Basuki told reporters on the sidelines of a ministry working meeting on Friday.

"According to the presidential instruction, the tender process should be completed in March. We may be a little behind schedule, but I will monitor the process," he said.

Basuki said the ministry faced problems immediately opening the tender because of the large number of new projects and the usual slow disbursement of the state budget to the ministry.

"With a significant increase in the number of projects, we need to prepare a lot of things, including the land acquisition and also the tender documents," he said.

"Infrastructure projects are part of investment, therefore we are expected to begin the projects as soon as possible to contribute to the country's economic growth this year," Basuki said.

Over the next five years, the ministry is tasked with building a total of 49 new dams, 1,000 kilometers of toll roads and 2,650 km of main roads across the country.

Ministry director general of water resources Mudjiadi said the ministry was set to construct 13 dams this year alone, including Raknamo in East Nusa Tenggara, Kariyan in Banten, Logung in Central Java and Lolak in North Sulawesi.

In the revised 2015 state budget, around Rp 290 trillion has been earmarked for capital expenditure (capex) spending, a fund allocation that includes ministerial investments and growth-generating infrastructure projects.

Capex spending in particular was in the spotlight as it has among the lowest budget realization rates of all spending types.

In 2014, the capex realization rate stood at 84 percent, lower than the overall budget realization rate of 94 percent, according to Finance Ministry data.

I Kadek Dian Sutrisna Artha, the director of the Institute for Economic and Social Research (LPEM) at the University of Indonesia, said the government was already on the right track by increasing capex and exempting the budget from the fuel subsidy.

"Based on the planning and budget allocation, theoretically the government may be able to achieve its economic growth target, but the main concern is whether the government has the ability to execute all these projects," he told The Jakarta Post.

"The delayed tender process will lead to delayed projects and lower spending, which will have an impact on the government's economic growth target. If the government is unable to deliver the programs, the target of 5.8 percent economic growth this year will be hard to achieve," he continued.

Source: http://www.thejakartapost.com/news/2015/03/07/ri-faces-major-infrastructure-project-delays.html

Economy & investment

Tax breaks for labor-intensive industries

Jakarta Post - March 3, 2015

Linda Yulisman, Jakarta – The government may make existing tax allowances applicable to labor-intensive industries in an effort to reach its 2- million-a-year job-creation target, an official with the Investment Coordinating Board (BKPM) said Monday.

"We really need the investment in the labor [-intensive] industries, including garment, footwear and furniture. If we don't give [a tax allowance] to them, they [investors] may relocate to other countries," BKPM deputy chairman Azhar Lubis said after a meeting with industry officials.

In 2012 a tax policy was enacted that slashed taxable income to 30 percent of overall investment realized over six years; sped-up depreciation and amortization; charged an income tax of up to 10 percent for offshore taxpayers; and carried forward losses from five years to 10 years.

However, at the moment the allowance applies to just 129 business sectors, ranging from plantations to real estate.

The Industry Ministry's director general for base manufacturing industries, Harjanto, said the tax allowance should be made more accessible to downstream industries ineligible under the current system. At present, for example, the tax accommodation applies to textile businesses, but excludes the garment industry. "We may require greater flexibility as our new orientation is to absorb labor," he said.

The labor-intensive industry covers firms that employ at least 200 workers and whose labor costs account for 15 percent of total production costs; they include manufacturers of food and beverages, tobacco, textiles and garments, leather and leather products, footwear, toys and furniture.

Investment in labor-intensive industries trended upward between 2010 to 2014, rising by between 20 and 40 percent annually, with 1,528 projects realized in 2014 making up 15 percent of total domestic and foreign direct investment.

However, industrial growth did not trigger increased labor absorption, which raised concerns among policymakers; in fact the number of workers in the labor-intensive industry tumbled, falling from 337,305 workers in 2011 to 203,732 workers last year.

Harjanto added that in addition to the tax allowance, his office had proposed a restitution of taxes for firms in export-oriented industries to encourage them to use locally sourced raw materials.

Such an incentive would be needed to lure investment in the industrial sector, where Indonesia there is stiff regional competition.

Source: http://www.thejakartapost.com/news/2015/03/03/tax-breaks-labor-intensive-industries.html

Rising NPL not seen as alarming

Jakarta Post - March 2, 2015

Tassia Sipahutar, Jakarta – Major lenders reported rising bad loans throughout last year but stakeholders have played down the impact on the soundness of the banking industry and, in turn, economic activities.

Rising non-performing loans (NPLs) have forced major banks to allocate higher provisions – an expense set aside as an allowance for bad loans – which could squeeze their profitability, hence affecting lending expansion.

State-owned Bank Mandiri and Bank Rakyat Indonesia (BRI) and privately owned CIMB Niaga, PermataBank and Bank Internasional Indonesia (BII) – all among the top-10 largest banks in the country that control 80 percent of total bank assets – were among the lenders that recorded growing bad loans.

The declining credit qualities span across economic sectors such as mining, agriculture, construction, trading and transportation, according to the banks' full-year financial reports.

Mandiri and BRI, for example, saw the amount of their bad loans in mining grow at least by more than twofold and those in agriculture rise by more than half from 2013.

BII suffered from decelerating quality as well in its agriculture segment, while CIMB's and Permata's credit portfolios were severely affected by loans disbursed to transportation, warehousing and communication, and mining segments.

Banking regulator the Financial Services Authority (OJK) acknowledged this situation – its latest banking statistics show nationwide increases in NPLs in the same segments throughout 2014 – but said that it was not worrying.

"We constantly monitor them [the bad loans], but they have not reached a point where the soundness of banks has been affected," OJK commissioner for banking supervision Nelson Tampubolon said.

Overall NPL stood at 2.2 percent by the end of last year, well below the 5 percent benchmark for soundness, OJK banking statistics show. However, the construction sector had inched closer to the benchmark with 4.6 percent, up from 4.1 percent in 2013.

Nelson said the rise in bad loans was only natural because the economy slowed last year to the lowest level in five years at 5 percent.

"The economy was sluggish in 2014 and found its way into the real sector, but some other sectors were already lagging due to low global prices, such as coal and CPO [crude palm oil]," he told The Jakarta Post, adding that the lenders had found themselves in a tighter spot as high interest rates remained.

Bank Indonesia (BI) deputy governor Halim Alamsyah said that the central bank expected the bad-loan conditions to improve this year, supported by a pickup in the economy, which is targeted by the government to grow 5.7 percent this year.

In construction, he said that the government's efforts to speed up various projects could help clear payment clogs and thus push the NPL ratio down.

Deposit Insurance Corporation (LPS) executive director Kartika Wirjoatmodjo said that the NPL situation was not alarming, citing the banks' current high capital and coverage ratio.

"I don't think we will see the same situation in 2015 because the economy is expected to grow at a faster pace and that will trigger the revival of the trading sector. Meanwhile, in commodities, prices have bottomed out and a rise may occur that will benefit us," he explained.

To help deal with the matter, these banks decided to set higher loan provisions, as revealed by their financial reports.

CIMB allocated the highest provision among them, up Rp 2.04 trillion (US$158.59 million) from 2013, followed by Mandiri with an additional Rp 1.18 trillion and BRI with an extra Rp 710 billion.

CIMB finance director Wan Razly Abdullah said that the downturn in the macroeconomic environment had impacted the bank, especially on its coal and coal-related loans, and that had forced CIMB to post a high provisioning expense.

Mandiri president director Budi Gunadi Sadikin said that it had also set a higher provision – most of which was directed to subsidiary Bank Syariah Mandiri – as a precaution. "Should we see a decline in the credit quality, we will already have a provision. We don't expect to use all of it," he added.

Source: http://www.thejakartapost.com/news/2015/03/02/rising-npl-not-seen-alarming.html

Analysis & opinion

Policy shift on graft prevention is a joke

Jakarta Globe Editorial - March 6, 2015

Dominic Diongson – President Joko Widodo's plan to issue a regulation focusing more on graft prevention rather than enforcement – meaning investigation, arrest and prosecution – is a troubling shift of the country's graft eradication policy in the wrong direction.

In an ideal world, prevention and prosecution are equally important. Indonesia is far from ideal. The term "corruption" was only introduced here less than 12 years ago. Corruption is so pervasive in almost all levels of society that punishing those who engage in it should be at the forefront of graft eradication efforts. Public punishment is a particularly powerful educational tool and deters future crimes.

Prevention is a long-term, gradual effort. But fixing the system and enhancing good governance cannot happen without first changing officials' mindset – in Joko's words, effecting a "mental revolution" – if you fail to demonstrate that breaking the law, whoever you are, carries consequences.

Significantly curbing investigations, arrests and prosecutions when we know that there are so many people purloining taxpayers' money sends the wrong message. It's like saying: Those who have stolen state money can get away with it, since we're now focusing only on those with future intent.

As the head of state, Joko can't dictate what the Corruption Eradication Commission (KPK) can or can't do. However, he has used extraordinary circumstances to justify directly appointing three of the current five KPK commissioners – positions usually selected from the public by an independent team and agreed upon by the House of Representatives, the KPK is already under the president.

Curbing prosecutions effectively kills the KPK as we know it: Arrests and prosecutions have been why we love and trust the KPK – and why Indonesia's most dangerous criminals fear and despise it.

Source: http://thejakartaglobe.beritasatu.com/opinion/editorial-policy-shift-graft-prevention-joke/

Addressing the Papua issue in the Pacific

Jakarta Post - March 5, 2015

Neles Tebay, Abepura, Papua – Foreign Minister Retno LP Marsudi visited three Pacific countries this week, namely Papua New Guinea (PNG), the Solomon Islands and Fiji, to strengthen relations between Indonesia and Pacific nations.

The visit is timely given the growing support for Papuan independence in the Pacific, more particularly in the countries united in the Melanesian Spearhead Group (MSG) namely PNG, the Solomon Islands, Fiji and Vanuatu.

All the MSG members, except Vanuatu, previously recognized Papua as Indonesia's territory and Papuan issues as Indonesia's domestic concern. Nevertheless, the situation has changed since June 2013 when the four Melanesian countries discussed the "West Papua" issue at the MSG summit in Noumea, New Caledonia.

Despite a rejection of the Papuans' application for membership status at the MSG, the leaders of the MSG decided to fully support the Papuans' right to self-determination.

Since then Papuan aspirations for independence have become an issue of the "Melanesian family". The people of PNG, the Solomon Islands, Fiji, Vanuatu and New Caledonia have manifested, through many different ways, their solidarity with Papuans. They call the Papuans "our Melanesian brothers and sisters of West Papua".

The growing support and solidarity for Papua can easily be identified in each Melanesian country.

In Vanuatu, the support comes from the opposition party, the national council of tribal chiefs, NGOs and churches, as well as from the government. Vanuatu is the only independent state in the South Pacific that has consistently supported what they term Papuan freedom.

In the Solomon Islands, supporters are united in a solidarity group called the Solomon Islands for West Papua (SIFWP). For them, as reported by the Solomon Star, Papua is occupied by Indonesia. Therefore, the end of occupation and Papua's freedom are the aim of the SIFWP, as declared by its spokesperson, "Our aim is to see West Papua gain its freedom and as Melanesians we too must stand with them. The West Papuans should not "be slaves to another in their own lands" (The Island Sun, Feb. 28).

The Solomons' former prime minister Gordon Darcy, who earlier visited Jakarta and established diplomatic ties with Indonesia, lost parliamentary elections last year. The Solomons are now led by new Prime Minister Manasseh Sogavare, known for his solidarity and support for Papua's independence from Indonesia.

A new political awakening, with regard to the "West Papua" issue, is emerging in Fiji. Despite its government's position supporting Indonesia's territorial integrity, as recently reported by the Pacific Islands Report, various civil society groups, including the Pacific Conference of Churches (PCC) in Fiji have started to raise public awareness and undertake advocacy about the West Papua issue.

Tevita Banivanua, president of Methodist Church in Fiji, said, "For too long, we have failed to speak out against Indonesia's brutal oppression of the West Papuan People." He announced that "the people of West Papua only want what each one of us wants: to live a life free of fear; to live a life free of violence; to live a life free of exploitation; to live a life free of oppression; and to live a life free of political interference and intimidation." He continued, "They seek to be able to plant and reap what they sow.

"They seek to be able to use the natural resources that God has entrusted them with [...] in a sustainable and productive way; to secure a future for their own children and their descendants."

The Fiji Solidarity Movement for West Papua's Freedom was launched in the third week of February. The group supports what they describe as their brothers and sisters of Papua who seek membership in the MSG as members of the Melanesian community.

The director of the Ecumenical Centre for Research, Education and Advocacy, Sirino Rakabi, said, "Now is the time for us, the citizens of Fiji, to call on our government to officially and publicly express our support and solidarity with their wish to be full members of this Melanesian body, a body that should and ought to represent all Melanesians," (Fiji Times, Feb. 22). The Fijian government should, they claim, be "the rock on which West Papua can find refuge".

PNG recognizes Papua as Indonesian territory. Maintaining a good diplomatic relationship with Indonesia, the PNG government has never raised the Papua issue in any national or regional forum, let alone at international forum.

However, the statement delivered by its Prime Minister Peter O'Neill at a summit of national leaders in Port Moresby on Feb. 5 surprised many parties both within and beyond PNG. In his speech, he acknowledged what he called "the oppression" of the people of Papua. For many, it was the first time a PNG leader spoke out directly about the rights of Papuans in a public forum. He said, "Sometimes we forget our own families, our own brothers, especially those in West Papua." He then highlighted the necessity of publicly raising the oppression endured by Papuans.

"I think", he said, "as a country, the time has come for us to speak about the oppression of our people there. Pictures of brutality of our people appear daily on social media and yet we take no notice." He added, "We have the moral obligation to speak for those who are not allowed to talk. We must be the eyes for those who are blindfolded." He continued, "again, Papua New Guinea, as a regional leader, we must lead these discussions with our friends in a mature and engaging manner."

Although not questioning Indonesian rule over Papua, his speech has strengthened support in the PNG community and among a number of its lawmakers for the Papuan independence movement.

It is clear that the Papua issue is no longer solely Indonesia's domestic affair. Consequently, the government should be prepared to engage with Melanesian countries to settle the Papua conflict. The foreign minister's visit is important but not enough. The government should intensify its communication and cooperation in all aspects of life with the governments of South Pacific nations to tackle the Papua issue and to prevent the Papua conflict becoming a Pacific issue.

They should be convinced that the government is emphasizing the prosperity approach in Papua. Any manifestation of the security approach in Papua will only draw more attention from the people and governments of Melanesian countries.

[The writer is a lecturer at the Fajar Timur School of Philosophy and Theology and coordinator of the Papua Peace Network in Abepura.]

Source: http://www.thejakartapost.com/news/2015/03/05/addressing-papua-issue-pacific.html

Why the Bali nine duo were treated like the world's most dangerous men

Sydney Morning Herald - March 5, 2015

Tom Allard – The absurd display of military muscle during the transfer of Myuran Sukumaran and Andrew Chan to the site of their execution was as much about whipping up the nationalist fervour of Indonesians as sending any message to Australia.

Hundreds of masked and heavily armed security personnel took Andrew Chan and Myuran Sukumaran, reformed and compliant prisoners by all accounts, to Nusakambangan prison complex on Wednesday, shadowed by Sukhoi fighter jets equipped with missiles.

Meanwhile, on the same day, another drug smuggler was transported in a small van.

The bizarre and degrading spectacle is part of a trend, not just in the executions of drug felons, but of the presidency of Joko Widodo, widely known as Jokowi.

Lauded upon his election as a progressive force from outside Indonesia's graft-ridden elites, Jokowi as president has emerged as a leader much more like the man he defeated, former military hardman and ultra-nationalist Prabowo Subianto.

Jokowi is sincere about grappling with the drugs problem in Indonesia, even if he has a poor understanding of the dimensions and cause of the "national crisis".

But, from the outset, he has used the kind of anti-foreign theatrics popular with Indonesia's first leader Sukarno, who was the father of Jokowi's political patron Megawati Soekarnoputri.

While Sukarno used nationalist rhetoric to distract the population from a collapsing economy, Jokowi has engaged in the same tactics at a time when his personal popularity has been on the slide.

Jokowi has mishandled the issue that concerns Indonesians most – the rampant corruption in its police force, judiciary and other national institutions.

As the police have threatened to arrest members of the respected Corruption Eradication Commission (KPK), Jokowi has put forward two candidates for police chief identified as having "suspicious bank accounts".

As the scandal engulfed him, Jokowi called in the navy to blow up captured illegal fishing boats before invited television crews. Soon after, Jokowi announced he would rapidly accelerate executions as he declared a drugs emergency.

The awful irony is that eradicating corruption in the police and judiciary would be a far more effective tool in combating drug trafficking than killing low level couriers and organisers. The kingpins invariably get off in Indonesia by paying large bribes.

It is instructive that almost half of the 64 drug felons on death row are Indonesians but, of the six killed so far and 10 slated to face the firing squad in the near future, 14 are foreigners.

The Australian government is not entirely blameless in all this. It, too, has fomented hostile sentiment in Indonesia, not least Tony Abbott's remarks tying tsunami aid to clemency for Chan and Sukumaran.

Australia has also burned the fishing boats of Indonesians who have strayed into Australian waters. Then there were the incursions by Australian navy vessels into Indonesian waters to "turn back the boats" laden with asylum seekers.

Both policies have angered Indonesians, and ripened the climate for Jokowi to exploit nationalist sentiment.

Sadly, the most macabre event of this sorry saga is yet to come. That will happen when nine men and one woman – including Chan and Sukumaran – will be lined up in a clearing in the jungles of Nusakambangan and shot dead simultaneously by 120 police officers.

Source: http://www.smh.com.au/world/execution-as-spectacle-why-the-bali-nine-duo-were-treated-like-the-worlds-most-dangerous-men-20150305-13wf4p.html

The Crocodile reigns supreme – for now

Jakarta Globe Editorial - March 3, 2015

Indonesia's golden era of corruption eradication has ended. Once the dust kicked up by Comr. Gen. Budi Gunawan's nomination as police chief settles, all that's left to work out is how the national antigraft agency can work in harmony with the police and the Attorney General's Office. Two of the four leaders of the Corruption Eradication Commission (KPK) have been declared suspects in criminal cases. President Joko Widodo has already issued a decree to appoint their replacements. But the problem with this kind of appointment is that the appointees will always be the president's men, thus destroying the KPK's independence.

As Joko is trying to calm down the police and the political situation in general, these new KPK leaders will try to play it safe to avoid making the situation worse for the president.

So we can expect that from now until October, when these commissioners' terms end, the KPK will not go after any big fish.

The KPK handing over its case against Budi Gunawan to the AGO is only the first sign that the agency is trying to play it safe. It indicated that the KPK was backing down from investigating any graft allegations involving members of the police.

The weakening of the KPK is a result of various factors, including Joko's indecisiveness, but in stark contrast, all of the agency's enemies, especially politicians in the House of Representatives, have been united.

That is why it is unlikely that the selection process of new KPK leaders in October – by the House – will result in an independent, brave and dedicated antigraft body.

The fight against corruption is increasingly becoming an uphill battle. But the people should not give up hope and the struggle should continue.

Source: http://thejakartaglobe.beritasatu.com/opinion/editorial-crocodile-reigns-supreme-now/