Markus Junianto Sihaloho, Jakarta – The Bali-based Sukarno Center will this year award its annual prize for global statesmanship to Kim Jong Un of North Korea, hailing him as a champion in the fight against neocolonialism and imperialism.

Rachmawati Soekarnoputri, a daughter of Indonesia's founding president, after whom the award is named, made the announcement on Thursday following a meeting with Ri Jong Ryul, Pyongyang's ambassador to Jakarta.

"We will give the award to President [sic] Kim Jong Un because he has been consistent in carrying out the ideals of the great leader, Kim Il Sung, which is to fight imperialism," Rachmawati said.

The Sukarno Prize, traditionally handed out in recognition of contributions to world peace and development, has previously been awarded to luminaries such as Aung San Suu Kyi of Myanmar and India's Mahatma Gandhi.

It is unclear how Kim Jong Un, whose saber-rattling and bellicose policies have exacerbated already strained and frosty ties with South Korea, Japan and the United States, has contributed in any way to world peace or compares even remotely with the above democracy icons.

Rachmawati noted that the Sukarno Center had previously presented the award to Kim Il Sung, whom she called a hero of independence and peace. "So this will be a sequel, where we give the award to Kim Jong Un for his persistence in fighting neocolonialism," she said.

Rachmawati has been appointed the honorary Asia-Pacific chairwoman of Pyongyang's Korean reunification preparation committee – a body not recognized beyond the borders of the hermit kingdom.

Source: http://thejakartaglobe.beritasatu.com/news/kim-jong-un-hailed-global-statesman-sukarno-center/

Actions, demos, protests...

Hundreds join 'Ketupat' rite, reject cement plant

Jakarta Post - July 24, 2015

Suherdjoko, Rembang, Central Java – Hundreds of residents of the Kendeng mountainous area of Central Java carried mounds of ketupat (rice cooked in coconut leaf casings) as part of a ritual on Wednesday evening symbolizing their rejection of the planned construction of a cement plant in the area.

The residents, including scores of women decked out traditional attire, carried ketupat in baskets and in their scarves, from the villages of Tegaldowo and Timbrangan in Gunem district and the village of Bitingan in Sale district, Rembang regency. The theme of the protest procession was Kupatan Gunung Kendeng, which translates as "greeting nature, preserving tradition."

Led by Muslim cleric Gus Ubaidillah, they chanted praises to God and the Prophet Muhammad during the ritual.

Ubaidillah labeled those who destroyed their natural surroundings as criminals. "Therefore, we must fight for justice, which has no expiry date. It could be 10 or even 20 years more, or even an hour before the end of the world," he said.

Meanwhile, Mount Kendeng Community Awareness Network coordinator Joko Prianto said that the ritual was designed to encourage the entire community to care about the Kendeng mountain range and furthermore to encourage people to preserve the environment and strongly oppose the construction of the Rembang cement plant launched by PT Semen Indonesia.

According to Joko, data revealed that some 49 caves were found in the area, four of them containing active underground rivers. Around 900 hectares of residents' land was at risk of being turned into quarries for lime rock, a raw material to produce cement, he said.

However, despite some objections, it turns out that are some residents in Rembang who welcome the presence of the cement plant. They also held a rally in support of the cement plant project because its presence would provide them with job opportunities.

Community harmony is at stake due to tensions between the two opposite camps. They are at odds not only during rallies, but also during everyday life. In Tegaldowo, for example, many homes expressed their objection to the cement plant by pasting protest posters and writing graffiti on their walls. However, some of the homes are clean of posters and graffiti.

"Extended families have also broken up. We're sad all because of a cement plant. Data derived from the Rembang regency administration in the middle of 2014 revealed that PT Semen Indonesia did not own land for mining. However, some of the residents' land has been sold to other parties which we believe are in extended hands of the cement company, but I'm not sure," said Joko.

During the Kupatan Gunung Kendeng ritual, the women who carried the ketupat divided the ketupat among the residents, including the family of the Tegaldowo village chief who they believed to be in favor of the cement plant project.

Contacted separately by The Jakarta Post on Thursday, Corporate Secretary of PT Semen Indonesia Agung Wiharto admitted that there were pros and cons in the planned construction of the cement plant.

"[But] 90 percent of residents support the construction of the cement plant," claimed Agung. Earlier, the company's president director Dwi Soetjipto said that the construction of the cement plant would go ahead, despite a legal challenge launched by some residents and an environmental group at the local administrative court.

Construction on the Rembang facility began in June, and is expected to start production in 2016. The new plant will have the capacity to produce 3 million tons of cement per year. The factory is being built on 55 hectares of land located near a limestone quarry.

Source: http://www.thejakartapost.com/news/2015/07/24/hundreds-join-ketupat-rite-reject-cement-plant.html

West Papua

Depopulation of Papuans becomes obvious

Tabloid JUBI - July 30, 2015

Jayapura, Jubi – Human right activist Markus Haluk said the threat of Papuan population has became obvious. The population of indigenous Papuan begins to decrease while the number of non-Papua is drastically rising. It predicts the number of Papuan in 2030 would be 15% of total population in Papua comprising of 2,371,800 indigenous and 13,228,800 non-Papuans.

Haluk said the change was very visible in Dr. Jim Elmslies' research of West Papua demographical change. The research indicated the population in Papua in 1971 was 923,000 which comprising 887,000 indigenous and 36,000 non-Papuans. In 1990, it extremely changed. The number of Papuans was 1,215,827 while non-Papuans were 414,210 of total 1,630,107.

Fifteen years later, in 2005, said Haluk, the number of Papuans and non- Papuans has become equal. Indigenous Papuans were 1,055,795 and non-Papuans are 1,087,694 of 2,646,489 of total population in Papua. In 2011, it became more surprising. The Papuans have become minorities on their own land. The number of indigenous was 1,700,000 compare with the number of non-Papuans that reached 1,980,000 of 3,680,000 of total population in Papua.

This change then predicted that the number of indigenous Papuan would become 1,956,400 while the population of non-Papuan would become 4,743,600 in 2020 of 6,700,000 of total population in Papua. The number would continue to improve in 2030, that is the number of Papuan would turn 2,371,200 and non-Papuan would become 13,228,800 of 15,600,000 of total population in Papua.

"The change of population number has extremely occurred though the number of birth was decreased. It was happening because none of leaders paying attention on this issue," Haluk said in One-Day Seminar held by Foreign Affairs of Papua Central Highland Association of Indonesia (AMPTPI) and Student Executive Body of Jayapura Science and Technology University (BEM- USTJ) on Wednesday (29/7/2015).

Meanwhile Yulianus Mabel who participated in the seminar said this change has become obvious. Poor health services towards indigenous Papuans and rapid access of non-Papuans to entry to Papua were highly influenced this change. "I hope the government could pay attention on this changing instead to regard this as regular circumstance. The government is much care about their own business and its counterparts than paying attention to the threat of the existence of indigenous Papuan," he said. (Mawel Benny/rom)

Source: http://tabloidjubi.com/en/2015/07/30/depopulation-of-papuans-becomes-obvious/

GIDI president slams police for scapegoating OPM over Tolikara shooting

Suara Papua - July 30, 2015

Oktovianus Pogau, Jayapura – The president of the Evangelical Church of Indonesia (GIDI), Pastor Dorman Wandikmbo insists that the mushola (small mosque) that was burnt down recently in Karubaga district, Tolikara regency, Papua, was built on land owned by the GIDI.

"Thirty years ago the GIDI assigned that land for the construction of a mushola, so the land was not purchased by Muslim residents, it doesn't even have a building permit (IMB), we just lent it to them to build the mushola", Wandikmbo told Suara Papua (Voice of Papua) on Wednesday July 29.

According to Wandikmbo, it you want to talk about tolerance between religious communities in Indonesia, the Christian community in the central highlands region of Papua, including Tolikara, is extremely tolerant.

"The recent incident in which the shops were razed [and the fire] spread and burnt down the mushola was simply because of a poor communication, all of us deeply regret the incident, and we have now made peace and returned to living alongside each other", said Wandikmbo.

Wandikmbo said he also regrets the actions of the Papua regional police (Polda) who hastily declared two people suspects for burning down the shops while the perpetrators of the shooting of 12 GIDI youths hasn't even been investigated.

"The police shouldn't play around arbitrarily naming suspects, how come only GIDI youths that have been named suspects, and how about the perpetrators of the shooting of 12 GIDI youths, not to mention that one of them died", he said.

According to Wandikmbo, the Papua regional police will soon be summoning him along with the local activities committee. What is of concern that this will in fact have a detrimental impact on the communities at the grass roots level.

"Ustadz [Islamic cleric] Ali Muktar in Karubaga, and the GIDI coordinator for the Tolikara district Pastor Nayus Wenda have already reconciled, and want to live in peace, don't let the [police] summons and the [arbitrary] naming of suspect destroy the peace that has been built", he asserted.

In relation to the shooting of 12 GIDI youths, according to Wandikmbo when the incident occurred only the TNI (Indonesian military) and the Polri (Indonesian police) had firearms, so it is doubtful that the shooting was carried out by anyone else.

"There's no OPM [Free Papua Movement armed separatists] in Tolikara, don't scapegoat the OPM, everyone in the community saw who the perpetrators were, TNI and Polri personnel, so do they now have the courage or not to be held liable for this action", asserted Wandikmbo.

[Translated by James Balowski for the Indoleft News Service. The original title of the report was "Musalah di Tolikara Dibangun Diatas Tanah GIDI dan Tak Memiliki IMB".]

Source: http://www.suarapapua.com/read/2015/07/30/2727/musalah-di-tolikara-dibangun-diatas-tanah- gidi-dan-tak-memiliki-imb

Tolikara police chief removed 10 days after incident

Jakarta Post - July 28, 2015

Nethy Dharma Somba, Jayapura – Tolikara Police chief, Adj. Sr. Comr. Soeroso, has been reassigned following the recent riot, which saw angry masses burn down kiosks and a musholla (small mosque), during the Idul Fitri holiday on July. 17.

Papua Police deputy chief Brig. Gen. Albert Rudolf Rodja led the handover ceremony from Soeroso to new Tolikara Police chief Adj. Sr. Comr. Musa Korwa at the Papua Police headquarters in Jayapura on Monday.

Soeroso, who had been stationed at Tolikara for nine months, has been appointed as the region supervisory and operational inspector. Soeroso's successor Musa Korwa was formerly responsible for security at giant mining company PT Freeport Indonesia.

However, Rudolf Rodja denied that the replacement of Soeroso related to the recent incident in Tolikara, saying that Soeroso had successfully maintained security in the area.

"It's a routine replacement, nothing to do with the Tolikara incident. [Soeroso] was replaced and promoted to a new position that required an official who has previously been a police chief," Rodja claimed.

However, National Police Criminal Investigation Directorate chief Budi Waseso said the replacement of the Tolikara Police chief was the Papua Police chief's decision.

"I think [he] was not sacked for any reason except internal processes. Probably [the replacement] was made based on certain needs. Maybe, there were mistakes leading up to the incident," Budi was quoted by tribunnews.com as saying at the National Police headquarters in Jakarta on Monday.

Meanwhile, Papua Police were continuing their investigation into the incident. Two Tolikara residents, identified only as AK, 26, and JW, 31, have been named suspects in the incident in which one crowd member was shot dead by police.

Both suspects, currently detained at Papua Police headquarters, admitted that they, along with others, threw stones during the incident.

Papua Police chief Isp. Gen. Yotje Mende said the provincial police took over the case as it was a major incident. He said the police had examined 68 witnesses, 11 of them civilians, 31 police officers and 24 victims.

As investigations continue, local Muslim and Christian communities have reached a new peace agreement.

President Joko "Jokowi" Widodo hosted Tolikara religious leaders at the Presidential Palace a few days ago, in an effort to mediate and establish peace.

Leaders from various religions in many parts of the country have since released statements aimed at preventing similar conflicts in their respective areas.

Source: http://www.thejakartapost.com/news/2015/07/28/tolikara-police-chief-removed-10-days-after-incident.html

PIF urged to discuss rights abuse in West Papua

Radio New Zealand International - July 28, 2015

The Australia West Papua Association is calling on Pacific Islands Forum leaders to address what it describes as a deteriorating human rights situation in Indonesia's Papuan provinces.

Its call comes in the lead up to the 46th Pacific Islands Forum Leaders Summit to be held in Papua New Guinea in September.

The group says Indonesia's security forces used excessive and often lethal force on peaceful protesters in West Papua on numerous occasions in 2014 resulting in at least four deaths.

The association is urging the leaders at the summit to discuss the human rights situation in West Papua and seek Indonesia's approval for a Forum fact finding mission to West Papua.

It is also calling for the release of all West Papuan political prisoners and the granting of observer status to genuine representatives of the Melanesian people of West Papua.

Source: http://www.radionz.co.nz/international/pacific-news/279928/pif-urged-to-discuss-rights-abuse-in-west-papua

Papuan religious leaders meet Jokowi, commit to peace

Jakarta Post - July 25, 2015

Ina Parlina and Nethy Dharma Somba, Jakarta/Jayapura – In an effort to further establish peace after last week's Tolikara incident in Papua, President Joko "Jokowi" Widodo hosted religious leaders from the regency and the province for a meeting at the State Palace on Friday.

Lipiyus Biniluk, Papua's Interfaith Communication Forum (FKUB) head, who is also the head of Papua's chapter of the Communion of Indonesian Evangelical Churches and Institutions (PGLII), said that he and his Muslim counterparts had reported to the President that Tolikara and Papua were now safe.

"And now the people in Tolikara can continue their lives as normal," Lipiyus told a press conference after the meeting.

"Tolikara was not about religion. The basic problem was a failure to communicate about existing joint commitments," Lipiyus explained referring to a commitment between all parties in Tolikara that allowed Muslims to hold Idul Fitri prayers there. "And that is what I told the President," he added.

The commitment had been made at a meeting between the Tolikara Police, representatives of the Evangelical Church of Indonesia (GIDI), local Muslim leaders and representatives of the Tolikara administration, which saw the revocation of a letter allegedly prohibiting Muslims from holding Idul Fitri prayers in the area.

According to Lipiyus, the two confirmed suspects in the case triggered the incident of their own initiative. "I assure [you] that there was no involvement of any other parties," he added. "This was purely because of failed communication."

Jokowi invited on Thursday representatives from various religious organizations to a dialogue to discuss efforts to maintain interfaith harmony following the Tolikara incident.

In a joint statement, the religious leaders called on the public, including religious and indigenous leaders and figures, to deepen interfaith dialogues to maintain harmony, saying that everyone, the government included, must learn from the Tolikara incident.

In his speech during the meeting, Jokowi said he had ordered police to act firmly in their follow up investigations "so that everyone, regardless of religion, [was] treated equally before the law".

The President reminded everyone that Indonesia was a pluralist nation, underlining the importance of maintaining interfaith communication, and saying that the Tolikara incident could have been avoided with better use of communication.

In the follow-up investigation, the police said on Friday that they would charge suspects JW and AK with violations of articles 160 and 170 of the Criminal Code, for assault causing damage to property, which carries a maximum penalty of five years' imprisonment.

"Both were involved in the attack and the forced dispersal of those gathered to pray. They were also involved in the burning of the kiosks," Papua Police chief Insp. Gen. Yotje Mende said in Jayapura.

The two suspects, both bank employees in Karubaga, Tolikara, were brought from Tolikara to the Papua Police headquarters in Jayapura for questioning. They were flown on an Express Air flight from Wamena, Jayawijaya, after taking an overland trip on Thursday from Tolikara, and arrived at the headquarters at 1 p.m. local time.

Yotje said that his team had been developing its investigation and questioning witnesses, looking for other suspects in the incident. He said the police had so far examined 50 witnesses, 23 of whom were security personnel and 27 civilians.

The police will summon on Monday GIDI Papua president Dorman Wandikbo, GIDI Tolikara chairmen Yanus Wenda and Marthen Jingga as well as Tolikara Regent Usman Wanimbo in his capacity as the chairman of the organizing committee of GIDI youth's international seminar and spiritual revival service.

Source: http://www.thejakartapost.com/news/2015/07/25/papuan-religious-leaders-meet-jokowi-commit-peace.html

Discrimination, injustice, roots of Tolikara incident: Setara

Tempo.co - July 25, 2015

Faiz Nashrillah, Jakarta – Chairman of human rights watchdog group Setara Institute Hendardi, said on Saturday, July 25, 2015, that the roots of Tolikara incident are injustice and continued discrimination.

According to him, almost all findings and statements of people there denied that there was an attack. "It means there's another force that initiated the incident," Hendardi said in a written statement on Saturday.

He went on to say that one of the short-term measure to investigate the accident that must be made is by disclosing the motivation of the shooting to 12 Papuans and punishing police officers who used guns in an unaccountable way.

He also said that the statement made by the chief of the national police General Badrodin Haiti that said that the shooting was done to protect the rights of Moslems there to perform Idul Fitri prayer was groundless.

As for the long-term measure, he said that Setara urged President Joko Widodo to made a policy that eliminates discrimination and violence in Papua and to bring to justice those who committed human rights crimes in Papua.

For the record, a riot occurred in Tolikara last Thursday between Muslims and Christians that led to the destruction of several kiosks. One person died in the incident while several others were injured.

The riot started after people, thought to be members of GIDI, threw rocks at those performing Idul Fitri prayers.

Source: http://en.tempo.co/read/news/2015/07/25/055686573/Discrimination-Injustice-Roots-of-Tolikara-Incident-Setara

Surakarta Muslim groups condemn Tolikara incident

Jakarta Post - July 25, 2015

Ganug Nugroho Adi, Surakarta, Central Java – Despite a peace agreement after an incident in Tolikara, Papua, thousands of Muslims from various groups in Surakarta, Central Java, staged a rally on Friday to protest the violence.

Under tight police security, the protesters from koran Interpretation Council (MTA), Islamic People's Soldiers, Muslim Students Action Front, Surakarta Sharia Council, Muhammadiyah and the Islam Defenders Front (FPI), marched the three kilometers from Jl. Slamet Riyadi to the Gladag circle.

Thee march was followed by speeches from various leaders including Indonesia Ulema Council (MUI) Surakarta chapter head Zainal Arifin Adnan, Ngruki Islamic boarding school director Wahyuddin and politician Mudrick Sangidoe.

Zainal said the peaceful rally was in support of Muslims in Papua, blaming the incident on outsiders who tried to undermine the Unitary State of the Republic of Indonesia (NKRI).

"This is not only for Muslims, but also for non-Muslims. We have been fooled by foreigners and masterminds pitting all Papuan residents [against eachother]. We want religion to prosper in Papua," said Zainal in his speech after the protesters assembled at the Gladag circle.

Meanwhile, Mudrick Sangidoe urged the entire Muslim community to continue pressuring the government to thoroughly deal with the Tolikara riot. "The riot masterminds must be immediately caught. Don't allow them to roam freely. Don't tolerate the masterminds in Jakarta," said Mudrick.

Along the road, the crowd shouted and condemned the incident in which angry masses burned down a kiosk and a small mosque on July 17, one of the days of Idul Fitri. Traffic along Jl. Slamet Riyadi was paralyzed as protesters filled the road at the circle to listen to the speeches.

The protesters urged the government to immediately resolve the issue and take legal action against the Evangelical Church of Indonesia (GIDI) leaders in Tolikara, as well as those who were involved in the incident.

They urged the government to take firm measures against the perpetrators to avoid the public getting the impression of state negligence and legal discrimination.

"The attackers of Muslims must be immediately arrested. Don't let there be exceptions that will anger Muslims. Don't be discriminatory," said House of Representatives (DPR) member from the Justice and Prosperity Party faction, Abdul Kharis in his speech.

While Surakarta Muslim groups condemned the Tolikara incident, leaders in other regions made joint statements to protect religious harmony and tolerance.

The Interfaith Communication Forum (FKUB) Banten chapter head Suparman Usman on Friday said leaders from Islam, Catholicism, Christianity, Hinduism, Buddhism and Confucianism have called on their followers to avoiding provocations related to the Papua incident.

"All followers [of a religion] should maintain calm and preserve religious harmony. They should avoid disinformation related to the incident and let the security authorities handle the case," Suparman was quoted by Antara as saying in Serang.

Similarly, in Kendari, Southeast Sulawesi, leaders from Indonesia's five officially recognized religions: Islam, Catholicism, Christianity, Hinduism and Buddhism, made a declaration on Friday to maintain religious harmony as well as avoiding provocations related to the incident in Tolikara.

Source: http://www.thejakartapost.com/news/2015/07/25/surakarta-muslim-groups-condemn-tolikara-incident.html

Activists call for transparent investigation into Tolikara case

Jakarta Post - July 25, 2015

Fedina S. Sundaryani, Jakarta – Human rights activists have called on the government and the National Police to carry out a transparent investigation into a fatal clash that occurred in Tolikara, Papua, last week.

National Commission on Human Rights (Komnas HAM) member Natalius Pigai told The Jakarta Post on Friday that the National Police's main objective now must be to track down the individuals responsible for setting fire to a number of kiosks, which led to a fire that eventually burned down a musholla (small mosque).

He also emphasized that the public must remember that the acts were conducted by individuals and were not a representation of the Evangelical Church of Indonesia (GIDI) or Papua as a whole. "[The acts in Tolikara] were pure crime. Individuals, not institutions, must take responsibility," Pigai said.

The National Police announced on Thursday that they had named two GIDI members, HK and JW, as suspects for riot instigation and vandalism.

Tensions between Christian and Muslim groups in Tolikara escalated into a riot on the first day of Idul Fitri, resulting in the death of a teenager and injuring many others.

The authorities said that tensions were triggered by a letter from the Tolikara chapter of the GIDI, demanding that local Muslims not carry out Idul Fitri prayers on July 17.

The letter was said to have been canceled but it was taken as an order by a Christian group that was running a conference near the musholla where the Idul Fitri prayers took place.

The police claimed responsibility for shootings that occurred during the riot, saying they had lost control of the angry mob and needed to apply force to calm the situation.

Pigai, who was part of a team from Komnas HAM deployed to Tolikara to investigate the scene, also said that it was imperative for the police force to place sanctions against officers who had fired their weapons during the riot.

"The violence used by officers against civilians is also a violation of rights. The officers must face both internal sanctions and be legally processed so that there can be justice for the victims," he said.

Pigai also questioned whether the Muslim-majority country was more focused on the burning of the kiosks and musholla than on the shootings by the police.

Separately, Commission for Missing Persons and Victims of Violence (Kontras) coordinator Haris Azhar questioned the reasoning behind the shootings.

"There was a loss of life due to the shootings. Doesn't the National Police have rules on how to handle riots and masses without the use of firearms?" he told the Post.

Haris noted that Papua was very prone to conflict as rights violations occurred there on a regular basis. He applauded the government's efforts to solve the case but warned that it might create a bias in the Christian- majority province.

"[The government] must take steps to solve all the rights violations that occur in Papua. It would be strange if the Tolikara incident was resolved quickly but not the other problems," he said.

Haris explained that locals may find it unfair if the Tolikara incident was resolved quickly as they may believe the government only tried to resolve the case because it was an alleged attack against the Muslim minority in Tolikara.

Meanwhile, National Police chief Gen. Badrodin Haiti said that the officers who had shot their firearms during the riot were currently undergoing questioning. However, he declined to disclose how many officers were believed to be involved.

"We want to find out whether the shooting was done according to our existing procedures. If it was, there should not be a problem," he said.

Source: http://www.thejakartapost.com/news/2015/07/25/activists-call-transparent-investigation-tolikara-case.html

Police list two GIDI members as suspects

Jakarta Post - July 24, 2015

Ina Parlina, Jakarta – The National Police have named two suspects related to the recent fatal clash in Tolikara, Papua.

"[The two are] from the GIDI [Evangelical Church of Indonesia]," National Police chief Gen. Badrodin Haiti said at the State Palace complex, adding that the initials of the two suspects were HK and JW.

He said that the two suspects violated the Criminal Code (KUHP) for instigating a riot and engaging in vandalism.

Tensions between Christian and Muslim groups escalated into a riot in the morning of the first day of Idul Fitri, resulting in the death of a teenager and the injury of 12 others of various ages.

The police earlier claimed responsibility for the shootings, arguing that they lost control of the angry mob and applied dramatic force in an effort to normalize the situation.

The police, along with the National Intelligence Agency (BIN) and the Indonesian Military (TNI), issued a joint statement on the same day to explain the case.

The authorities said that tensions were triggered by a letter from the Tolikara chapter of the GIDI, demanding that local Muslims not carry out Idul Fitri prayers on July 17.

The letter was said to have been cancelled but it was already taken as an order by a Christian group that was running a conference nearby the musholla (small mosque) where the Idul Fitri prayers took place.

The police and TNI officers were already aware of the church's proposed restrictions and had tried to negotiate with both groups but to no avail.

A group of people on Friday morning pursued the mosque, demanding that the Muslims follow the requests outlined in the letter.

Authorities failed to quell tensions between the groups at that time and released shots to disperse the crowd. The angered mob then started to burn nearby kiosks, and the fire then spread and engulfed the mosque.

"The Tolikara Police chief tried to negotiate with [the men who asked the Muslims to cease their prayers], but they did not want to negotiate and even threw stones at the praying people," said Badrodin, adding that the mass of people started to swell up in size at that time.

In responding to the Tolikara riot, national religious figures urged all Indonesians not to be provoked by the incident.

Later that day at the State Palace, President Joko '"Jokowi" Widodo invited representatives from various religious organizations to engage in dialogue to discuss strategies to maintain interfaith harmony following the Tolikara incident.

The religious leaders demanded that all perpetrators, including police officers found guilty of violating procedure in handling the incident, should be brought before the courts.

In his speech during the meeting with religious leaders, Jokowi said that he ordered the police to act firmly in enforcing the law "so that everyone, regardless of religion, is equal before the law".

The President also reminded everyone of the importance of maintaining interfaith communication, saying that the Tolikara incident could have been avoided if good communication had existed.

"But it's never too late. I believe that [having good communication] is what we want to continue to do, so that existing small frictions can be resolved," he said.

"We do hope that it [the Tolikara incident] will serve as a lesson that we are indeed a pluralistic society," Jokowi added. (ind)

Source: http://www.thejakartapost.com/news/2015/07/24/police-list-two-gidi-members-suspects.html

Persis pledges to protect churches

Jakarta Post - July 24, 2015

Arya Dipa, Bandung – The Persatuan Islam (Persis) Muslim group, which has a stronghold in West Java, has assured the safety of churches in the province following the Tolikara tragedy in Papua.

Persis West Java chapter vice secretary Dadang Fahmi urged every Persis member across the country to do the same thing.

"We understand the Tolikara issue is not a religious issue, but there are parties that would like to disunite Indonesia," Dadang said after addressing around 400 Persis members at the West Java legislative building in Bandung on Thursday. The rally was attended by various associations affiliated with Persis, such as the West Java Muslim Wives Association, West Java Persis Youth and the West Java Persis Students Union.

The peaceful rally commenced with a march from the Persis headquarters on Jl. Perintis Kemerdekaan to the Gedung Sate gubernatorial office on Jl. Diponegoro. They marched for around 2.5 kilometers while unfurling banners, some of which read "Save Tolikara Muslims" and "Leaders Speak Objectively Not Provocatively".

The protesters also addressed the crowd in front of Gedung Sate, located around 200 meters from the West Java legislative building, where they raised funds to rebuild a razed musholla (small mosque) in Tolikara. Besides the musholla, several kiosks were also burned down in last Friday's riot. A resident was shot dead by police in the incident.

Persis is a Bandung-headquartered organization founded in 1923. The group, which is concerned with issues on education and Islamic outreach, has millions of followers across the country.

Most Persis followers live in West Java, and were instrumental in West Java Governor Ahmad Heryawan's victory in contesting the gubernatorial election for two terms.

Dadang said he supported the police for legally processing the perpetrators involved in the arson attack in Tolikara. He also urged the country's leaders to avoid making statements that could cause misconceptions among society. "Achieve a Papua which is peaceful," said Dadang.

The same sentiment was expressed by West Java legislative member Yomanius Untung from the Golkar Party faction. He urged all Muslims to maintain a tolerant atmosphere in West Java. "Don't be provoked and hand everything to law enforcers," he said.

Meanwhile, in a report on freedom of faith and religious intolerance in Indonesia in 2014, the Wahid Institute noted that West Java, inhabited by around 45 million people, was the province with the highest number of violations against religious freedom in Indonesia.

It recorded 55 cases, surpassing Yogyakarta with 21 cases and North Sumatra with 18 cases. Of the 55 acts of violence in the name of religion, the most violations were committed by state officials and law enforcers.

Among the cases that have drawn public attention are land disputes involving the Yasmin GKI church in Bogor and HKBP Philadelphia church in Bekasi, both in West Java, where the respective regional leaders have tended to follow the wishes of radical groups.

Source: http://www.thejakartapost.com/news/2015/07/24/persis-pledges-protect-churches.html

Human rights & justice

Court upholds Pollycarpus release

Jakarta Post - July 30, 2015

Jakarta – The Jakarta State Administrative Court has rejected a lawsuit against the release of Pollycarpus Budihari Prijanto, who was previously convicted of the murder of human rights activist Munir.

Presiding judge Ujang Abdullah said the court did not have the authority to examine the government's decision to release Pollycarpus, as stipulated in a Law and Human Rights Ministry decree, which had been the main subject of the lawsuit filed by human rights watchdog Imparsial.

"According to the law, the motion cannot be accepted [...] but the plaintiff can appeal this verdict within 14 days," he said on Wednesday while reading the court verdict.

Pollycarpus was granted parole by the Law and Human Rights Ministry in November last year after serving only six years in prison. He had been sentenced to 14 years for the premeditated murder of Munir and for falsifying documents.

Imparsial is challenging the decree that allowed Pollycarpus' release, aiming to annul the parole, which they claim violates the provisions of a 2012 government regulation and a 2013 Law and Human Rights Ministry decree that public interest and a sense of justice and security should be taken into consideration when granting parole.

Imparsial lawyer Muhammad Isnur said that the judges were trying to avoid the case because they were not brave enough to handle it. "This is part of our move to seek justice for Munir's murder. We will appeal [the parole case] at the Jakarta High Administrative Court,' he said.

Source: http://www.thejakartapost.com/news/2015/07/30/national-scene-court-upholds-pollycarpus-release.html

The riots that saw Megawati rise to the top

Jakarta Post - July 27, 2015

Jakarta – For Budiman Sudjatmiko, the memory is still fresh of the massacre on July 27, 1996, at the Indonesian Democratic Party (PDI)'s offices on Jl. Diponegoro in Menteng, Central Jakarta. It was a Saturday.

"I was finally caught after days of hiding with other activists. Images of our faces were spread on the papers and television and we were labeled the instigators of a riot after the military took over the PDI's Menteng office in Central Jakarta on July 27," Budiman told The Jakarta Post on Friday.

Some of his fellow activists, he said, were still missing today. Others were tortured by the military personnel to force them to disclose the hiding place of the then Democratic People's Party (PRD).

The riot, known as Kudatuli or Gloomy Saturday, is a dark chapter in Indonesia's rights records. Then president Soeharto could no longer tolerate the rising power of Megawati Soekarnoputri, the PDI chairwoman. Soeharto appointed Megawati's own mentor, Soerjadi, to forcibly wrest control of the party from the daughter of the country's first president, Sukarno.

On that day, led by then Jakarta Military chief Sutiyoso, soldiers emptied PDI headquarters of Megawati's die-hard supporters. The former Jakarta governor was recently appointed National Intelligence Agency (BIN) chief.

The National Commission on Human Rights (Komnas HAM) recorded five deaths, 149 people, including law enforcers, injured and 136 people detained during the riot.

It remains a shadowy case today, even after Megawati ruled the country from July 2001 to October 2004 as the country's fifth president.

Budiman called for the case to be resolved. "The government does not only need to reconcile with the victims; there also needs to be rehabilitation and compensation," he argued.

Soeharto stepped down on May 21, 1998, two years after Kudatuli. Megawati marked the Reform Era by changing the party's name to the Indonesian Democratic Party of Struggle (PDI-P), and the party won the 1999 general election.

On Friday, The Jakarta Post met Kuncoro, the head of the Communication Forum of the 124 victims of July 27 (FKK-124), at PDI-P headquarters. Kuncoro still vividly remembers the tragedy.

"I saw Sutiyoso on the field, gesturing with his hands to a group of men with shaved heads with handkerchiefs wrapped around, wearing army boots and red PDI uniforms, to attack us. They were ABRI [Indonesian Armed Forces] personnel," he said. Following the deadly riot, 124 people were imprisoned by the police for at least four months after being convicted of causing the riot.

PDI-P law council head Trimedya Panjaitan said that the party would let the country's law enforcement settle the case. "We keep urging Komnas HAM and the Attorney General's Office to settle the case. The government has only sentenced the minor perpetrators, not the generals," Trimedya told the Post.

Megawati opened the newly renovated party headquarters on June 1 this year, in conjuction with Pancasila Day, which commemorates the national ideology her father introduced on June 1, 1945. The 7,000 square-meter building has six floors and two parking basements.

The building is inscribed with a motto written in Megawati's handwriting, reading, and "Keep the fighting spirit to keep Pancasila alive. Our lives are an undying flame dedicated to the great, the beloved Indonesia."

But the building bears no inscription, no reference to the lost lives, the missing or those who suffered torture on that fateful July day, all of them die-hard supporters of Megawati. (rbk)

Source: http://www.thejakartapost.com/news/2015/07/27/the-riots-saw-megawati-rise-top.html

Sexual & domestic violence

Singapore court rules in favor of JIS, teachers

Jakarta Post - July 31, 2015

Indra Budiari, Jakarta – The Singapore High Court has awarded material compensation for the Jakarta Intercultural School (JIS) and two of its teachers in a defamation case against the mother of one of three alleged victims of sexual abuse.

The court ordered the mother to pay S$130,000 in damages to Canadian Neil Bantleman and Indonesian Ferdinant Tjiong and S$100,000 in damages to JIS and the principal at JIS.

Ferdinant, Bantleman and JIS had obtained a favorable judgement from the Singapore Court in February in the defamation case against the mother, who did not show up to the hearing. The recent Singapore High Court decided how much the mother should pay in damages to the defendants.

In the decision that was read on July 16, the high court considered the mother to have committed defamation through email and WhatsApp mobile application messages as well as through media reports by saying that the school "was aware of the abuse but wanted to wash their hands of this".

"I agree with the plaintiffs' submission that the defendant's accusations were of a particularly grave nature," Justice Lee Seiu Kin said in the verdict document published by lawnet.sg, a division of the Singapore Academy of Law.

"Not only did these accusations suggest sexual perversion on the part of the plaintiffs, they pointed to a systematic abuse of the trust reposed in educational institutions and individuals responsible for the learning and general well-being of the young children under their charge," he continued.

However, law expert from the University of Indonesia Chudry Sitompul said the court ruling could only be executed in Singapore as the country has no jurisdiction to enforce it in Indonesia.

According to him, JIS and the teachers must file the civil suit in a district court in Indonesia if they wish to claim for damages in Indonesia in the defamation case.

"[The Singapore High Court] decision can only be applied in Singapore, they have no ability to apply it here," Chudry told The Jakarta Post. However, he said that the Singapore High Court could exercise the verdict if the mother had assets in the country.

International law expert from the University of Indonesia Hikmahanto Juwana emphasized that Indonesia was not "bound by or obligated to enforce a foreign court decision". He agreed that JIS and the teachers could file a civil suit in Jakarta and present the Singapore High Court ruling as evidence to support their claim.

Separately in Jakarta, the verdict of a US$125 million civil lawsuit against JIS filed by the mother of another alleged victim was postponed by the judges.

A panel of judges at the South Jakarta District Court said Thursday that they "had yet to finish the verdict draft" and would have no choice other than to reschedule the hearing to Aug. 10.

"We have three verdicts to finish this week and there is just not enough time. I hope you can understand why we are postponing the hearing for 11 days," presiding judge Haswandi said during Thursday's hearing.

JIS' lawyer Harry Ponto said before the trial that he hoped the judges could consider the case thoroughly before making their ruling.

Despite a criminal case verdict that found JIS teachers and outsourced cleaners guilty of sexually abusing kindergarten boys at the school, Harry still emphasizes that the case never took place at the school.

"I hope the judges can consider all the evidence we present during the trial. There are no sexual abuse cases at JIS," he said, adding that the school "would be surely closed down for good" if the judges supported the $125 million civil suit.

On April 2, the court declared Bantleman and Ferdinant guilty of sexually abusing three kindergartners and sentenced each of them to 10 years' imprisonment.

Source: http://www.thejakartapost.com/news/2015/07/31/singapore-court-rules-favor-jis-teachers.html

Law enforcers told to consider science in sexual abuse cases

Jakarta Post - July 30, 2015

Jakarta – Forensic experts are urging law enforcers to heed results of scientific examinations by credible professionals in order to avoid charging innocent people in child sexual abuse cases.

The experts said that to date, the police, prosecutors and judges had often ignored scientific procedures to speed up the legal process due to outside pressure from the alleged victims, the public or the media.

Psychologist Irwanto from Atma Jaya University in South Jakarta gave an example of a case involving a scavenger named Siswanto aka Robot Gedek who was found guilty of killing street children.

"In 1997, Siswanto was sentenced to death for sodomizing and mutilating children in Greater Jakarta on the basis of testimony from only one witness, who was later tried and sentenced for similar crimes," the professor said at a recent Seminar of Scientific Crime Investigation held by the National Police Commission (Kompolnas).

Irwanto was referring to Baekuni or Babeh, the only one of 20 witnesses to testify in the Central Jakarta District Court that he saw Siswanto slashing the wrists and legs of a victim and putting the victim in a plastic bag. He also told the court that he did not see Siswanto killing the victim.

Despite Siswanto's bizarre behavior during the police investigation and in court, the police and the judges also failed to give him the opportunity to be examined by independent psychiatrists.

While experts such as psychologists are often invited to deliver the results of their examinations, Irwanto said some law enforcers set aside such analysis and formed their own opinions.

"I was once appointed as an expert in a sexual abuse trial of a female teen in West Jakarta. The victim [said she] was sexually assaulted by her friend in her school's health unit room when she felt sick during the day. She then attacked the perpetrator with her taekwondo skills. The boy was injured and brought the case to court," he said.

Irwanto said that during one of the hearings, he delivered his evaluation, which supported the girl's testimony. However, the judge later told him to rectify his testimony as he believed that the girl attacked the boy because he had refused to be her boyfriend.

Irwanto said he refused to do so and maintained his testimony. "The girl ended up losing the legal battle and was put under city arrest," he said.

Meanwhile, forensic doctor Ferryal Basbeth said the police often made conclusions too quickly. Ferryal cited a case involving a 9-month-old baby identified only as AA who died in 2013 in East Jakarta, allegedly after being raped by her uncle, identified as Z.

"AA was brought by her family to a nearby doctor when she suddenly had difficulty breathing. Through a further examination, the doctor observed the unusual shape of her anus. The doctor then reported this to the police," Ferryal explained.

At Kramat Jati National Police Hospital in East Jakarta, AA was checked and found to be positive for Chlamydia trachomatis, a sexually transmitted infection that can also be passed on through labor.

"The police asked the hospital to perform anal swaps to check the family members, except the mother. When they found the same bacteria in Z and AA, the police concluded the case to be a rape," said the doctor, who was appointed as an expert by the Jakarta Legal Aid Foundation (LBH Jakarta) during the trial.

He said the police claimed they had used a thorough scientific method in finding the perpetrator as there was no witness for the case. "They should have checked the mother too," he said.

Kompolnas commissioner Adrianus Meliala said law enforcers should handle sexual abuse cases against children carefully despite pressure from the public and media. "There is no deadline for handling sexual abuse cases, so the police should take their time [to ensure an accurate investigation]," he said. (rbk)

Source: http://www.thejakartapost.com/news/2015/07/30/law-enforcers-told-consider-science-sexual-abuse-cases.html

Labour & migrant workers

Workers' rally causes minor disruption

Jakarta Post - July 29, 2015

Nadya Natahadibrata, Jakarta – Transportation Ministry director general for sea transportation Bobby Mamahit said on Tuesday that the rally staged by employees of PT Jakarta International Container Terminal (JICT) did not impede loading and unloading at the country's main port, Tanjung Priok in Jakarta.

"The rally did not significantly affect loading and unloading at the port. We deployed our staff to the port to relocate loading and unloading process at JICT to other terminals if necessary," Bobby told reporters.

Since early morning on Tuesday, JICT's workers union had staged a rally, blocking loading and unloading of goods at the terminal, and demanding the annulment of Pelindo's decision to lay off two of its employees.

JICT workers union secretary general Firmansyah told The Jakarta Post that the workers had ended the rally at 12.30 p.m, today, as Pelindo II had decided to cooperate with the workers union and annul the dismissal of two JICT employees.

"The terminal has resumed its operation after management decided to annul the dismissal of JICT employees and they have also agreed to consider our other demand, which is to cancel a contract awarded to Hutchison," he said over the phone.

JICT, an affiliate of Pelindo II, handles container loading and unloading services for both export and import at Tanjung Priok port.

In August last year, Pelindo II, also known as the Indonesia Port Corporation (IPC), signed a contract with Hong Kong-based Hutchison Port Holding (HPH), renewing the latter's rights to operate JICT for another 20 years. HPH's concession to operate JICT – a joint venture between Pelindo II and HPH established in 1999 – was due to end in 2019.

The workers union said that the contract renewal has caused state losses and violated the law, as it was renewed five years before the contract ends. However, Firmansjah said that the contract renewal did not directly impact workers' welfare.

Tempo.co reported that since early morning on Tuesday, at least 3,663 containers were piled up and waiting for loading and unloading at JICT terminal after hundreds of JICT workers decided to block activities at the port.

According to the Tanjung Priok Port Authority head Bay M. Hasani, Tanjung Priok port authority, together with JICT diverted loading and unloading to Koja Container Terminal and Terminal III JICT when it was necessary.

The action was taken to avoid the accumulation of containers in the terminal, he said. Separately, in a written statement, Pelindo II said that all terminal operators in Tanjung Priok, namely JICT, TPK Koja and Multi Terminal Indonesia (MTI) have committed to providing 24-hour services.

"The act of blocking loading and unloading activities at the port is unlawful and causes state losses. IPC will not compromise and will take firm action against those who committed the offense," the statement reads.

Source: http://www.thejakartapost.com/news/2015/07/29/workers-rally-causes-minor-disruption.html

Freedom of speech & expression

Top spook says media need to be kept in check

Jakarta Globe - July 30, 2015

Jakarta – In the current era of easily accessible information, the Indonesian government needs to keep an eye on the media, the recently appointed head of the State Intelligence Agency (BIN) said at a book launch on Thursday.

BIN chief Sutiyoso explained that because everybody can find news everywhere these days, it is important to make sure no false information is being disseminated. "Media control is necessary so that there is no information bias," said Sutiyoso, a retired general and former governor of Jakarta.

The chief spook was speaking at the launch of a book written by his predecessor at the helm of BIN, Marciano Norman, on the role of state intelligence in Indonesia's democratic consolidation.

Sutiyoso said that in the current situation, one of the main challenges for the intelligence agency is that it remains very difficult to control the flow of information.

'Toothless tiger'

Also speaking at the book launch was Tjipta Lesmana, a political communication professor at Pelita Harapan University (UPH), who said BIN should get the authority to arrest people.

"An intelligence agency without the authority to make arrests is like a toothless tiger," Tjipta said. "I think BIN's authority should be expanded."

The observer added that certain safeguards are needed to make sure agents cannot just arrest whoever they want, like in the days of the Suharto regime. But Tjipta also stressed that BIN's operations should be as secretive as possible.

"If it's open, it's not intelligence," he said. "Look at the American CIA, they're all around the world, working underground."

Foreign meddling in Papua

Tjipta reportedly also criticized the decision by the administration of President Joko Widodo to allow foreign journalists to enter the restive Papua region.

"In Tolikara there definitely was foreign [meddling], 1,000 percent," he said, referring to a recent riot in the Papuan district during which dozens of stalls and a small mosque were burned down and a protester was killed after police opened fire. Eleven others were injured. The incident triggered fears of sectarian violence throughout the country.

"Jokowi's policy to allow foreign media into Papua is wrong, a big mistake," the professor was quoted as saying by RMOL, a local news portal. "Foreign intelligence agents can enter with press IDs. Seriously, who are his advisers?"

Source: http://thejakartaglobe.beritasatu.com/news/top-spook-says-media-need-kept-check/

Police told to stop harassment of activists

Jakarta Post - July 28, 2015

Haeril Halim, National – Indonesia Corruption Watch (ICW) has lashed out at the National Police for questioning two of its activists about remarks that allegedly defamed a senior legal expert from Bandung-based Padjadjaran University, Romli Atmasasmita.

On Monday, ICW activists Emerson Yuntho and Adnan Topan Husodo answered a summons from the National Police's Criminal Investigation Department (Bareskrim) and underwent questioning as witnesses in the defamation case, which Romli filed with the police on May 22.

ICW lawyer Febionesta said that the police should postpone their investigation into the case until the Press Council finished its probe into the nature of the remarks from Emerson and Adnan, as well as former Corruption Eradication Commission (KPK) advisor Said Zainal Abidin, which were printed by media outlets in early May.

Febionesta added he was surprised to learn that the police insisted on questioning Emerson and Adnan on Monday after the Press Council released its preliminary findings in the case, which concluded that the remarks should be subject to the Press Law.

"My clients only answered questions related to their identity and decided not to answer questions related to the content of the investigation until the Press Council makes its final ruling," Febionesta told reporters on Monday at the National Police headquarters.

The lawyer said that his clients did not mention Romli's name in their remarks on possible candidates for a team tasked by President Joko "Jokowi" Widodo to screen a new batch of KPK commissioners.

Media outlets ran stories in May speculating that the President would nominate Romli and two legal analysts, Margarito Kamis and Chairul Huda, as possible candidates for the KPK selection team.

Eventually, Jokowi appointed nine female experts to the selection team, a move that many deemed was made to prove sceptics wrong.

"I was never formally contacted [by the government] to join the committee. How come they suddenly cornered me with slanderous remarks, like about being pro-corruption, only because I served as an expert witness for him [Comr. Gen. Budi Gunawan] in his pretrial hearing?" Romli told The Jakarta Post in May, referring to the deputy National Police chief who was named by the KPK as a graft suspect following his nomination as police chief in January.

Febionesta said that Romli should have written letters to the editors of the media outlets to respond to the remarks from Emerson, Adnan and Said if he felt they had insulted him. Romli submitted news stories published by Kompas, Tempo and The Jakarta Post as evidence to back up his claims.

The National Police have questioned journalists from the three media outlets to seek clarification on whether Emerson, Adnan and Said explicitly mentioned Romli's name in their remarks. In the stories published in Kompas, the Post and Tempo, Adnan, Emerson and Said never explicitly mentioned Romli, Margarito or Chairul's names.

Source: http://www.thejakartapost.com/news/2015/07/28/police-told-stop-harassment-activists.html

Political parties & elections

Beware of 'puppet candidates,' election watchdog warns

Jakarta Globe - July 29, 2015

Jakarta – New requirements applied to this year's regional elections could pave the way for the emergence of "puppet candidates" who run merely to boost the profile of other candidates, warned a political activist.

The regional elections, set to be staged simultaneously in 269 provinces, districts and cities across Indonesia on Dec. 9, have been short on willing candidates, thanks to a new requirement set in the Regional Elections Law, which bars serving national and regional legislators from running.

The General Elections Commission (KPU) has declared that as of Tuesday, the last day for the candidates to register their election bids, one area is still without nominees: East Bolaang Mongondow district in North Sulawesi.

Meanwhile, 11 other areas have attracted only one candidate: Surabaya in East Java; Pacitan district and Biltar district in East Java; Tasikmalaya, West Java; Serang district, Banten; Asahan district, North Sumatra; South Minahasa, North Sulawesi; Probolinggo district, Central Java; North Central Timor district, East Nusa Tenggara; the city of Samarinda, East Kalimantan; and Mataram, West Nusa Tenggara.

The elections commission has extended the registration period for these 12 regions from Friday to Monday. Elections may be postponed to 2017 should fewer than two candidates sign up by then.

But Masykuruddin Hafidz, coordinator of watchdog the People's Voter Education Network (JPPR), warned that several "puppet candidates" with no real chance of winning could emerge simply to prevent any further delays.

"Puppet candidates could emerge during this extension period due to some under-the-table dealings between political parties just to avoid postponement," he said on Wednesday. "Whatever the reasons these puppet candidates may have, their nomination will lower the quality of the local democratic process."

Vice President Jusuf Kalla, however, dismissed such concerns, saying the government's tough new requirements would prevent such fraudulent moves. "It's not easy being a puppet. But this is politics. It is hard to predict [whether such candidates will emerge] and hard to prove," he said as quoted by Detik.com.

A party-backed candidate must have the support of 20 percent of legislators in their respective regional council, while an independent candidate must have the initial support of between 6.5 percent and 10 percent of the region's population.

Kalla said it was natural that some elections would only see one candidate running. "Take, for example, Surabaya – [Mayor Tri] Risma[harini] is so famous, no one dares to run against her. This presents a dilemma. Do we want to see real candidates? Or just fulfill the formal requirements?" he said.

Home Affairs Minister Tjahjo Kumolo echoed the vice president's sentiments, arguing that no one would be foolish enough to waste money and effort on campaigns and securing the support of political parties just to lose. He added he was confident that elections for the 12 regions without enough candidates would proceed as planned.

As many as 705 candidates have registered their bids with the KPU, which still needs to verify their paperwork. More than 570 of them are supported by political parties, while the remainder are running as independents.

However, these figures could still change, as the incumbent district head of Barru, South Sulawesi, and Bengkalis, Riau, were recently charged in two separate corruption cases, potentially leaving the executive posts there vacant.

Source: http://thejakartaglobe.beritasatu.com/news/beware-puppet-candidates-election-watchdog-warns/

Election organizers extend deadline amid lack of contestants

Jakarta Post - July 29, 2015

Indra Harsaputra and Djemi Amnifu, Surabaya/Kupang – A number of Regional General Elections Commissions (KPUD) have extended the registration period for political party-endorsed candidates to nominate for the upcoming regional elections.

The regions in question had seen fewer than two tickets register for the elections as of Tuesday, the final day of the official registration period.

On Tuesday, the Surabaya KPUD in East Java decided to extend the registration deadline for the city's mayoral election after receiving only one pair of candidates sign up – incumbent Mayor Tri "Risma" Rismaharini and running mate Whisnu Sakti Buana.

"We will extend the deadline because as of Tuesday at 4 p.m. [...] only one pair of candidates had registered," KPUD head Robiyan Arifin said at a press conference.

Robiyan said the KPUD would hold another registration period from Aug. 1 to 3. This extension would not, she said, disrupt the stages of the city's mayoral election, which will still be held concurrently with 268 other regional elections on Dec. 9.

On Tuesday, Risma and Whisnu, nominated by the Indonesian Democratic Party of Struggle (PDI-P), the country's largest political party, underwent the KPUD-sanctioned medical examinations despite the KPUD's decision to extend the registration period.

The North Central Timor KPUD in East Nusa Tenggara (NTT) made a similar move after only running mates Raymundus Fernandez and Aloysius Kobes signed up to participate in the regional election.

"Until the registration deadline on July 28 at 4 p.m., only one pair of candidates registered. Another two pairs had earlier taken registration forms but did not return the forms," local KPUD head Felix Bere Nahak said.

Under the General Elections Commission (KPU) Regulation No. 12/2015, a KPUD can extend their registration period if they have fewer than two tickets running.

"If there are not enough candidates in a region, we can run another round of registrations between Aug. 1 and Aug. 3. If there are still not enough candidates we have no option but to delay that regions election until Feb. 2017," KPU commissioner Hadar Nafis Gumay said on Monday.

In cases where regions do not have enough candidates as a result of some hopefuls not having passed the selection process, the KPUD will hold another three-day registration.

In South Sulawesi, several relatives of Governor Syahrul Yasin Limpo have registered as candidates for regional elections.

Syahrul's younger sister Tenri Olle and her running mate Khairil Muin, for example, have registered to contest the Gowa regency ballot. Lutfi Halide, whose child is married to Syahrul's child, meanwhile, signed up on Tuesday as a candidate for the Soppeng regency ballot.

Across the country in North Sumatra, the number of candidates contesting many regional elections has declined from numbers five years ago.

In the provincial capital of Medan, for example, only two pairs of candidates are signed up for the upcoming mayoral election, compared to 10 pairs five years ago.

Political observer from the state University of North Sumatra Agus Suryadi said the Medan mayoral election this year would be the most uninteresting in history. He argued that not only were there only two candidate pairs, but those candidates were unable to attract the attention of the public in Medan.

[Apriadi Gunawan in Medan and Andi Hajramurni in Makassar contributed to the article.]

Source: http://www.thejakartapost.com/news/2015/07/29/election-organizers-extend-deadline-amid-lack-contestants.html

National coalitions rendered irrelevant in local polls

Jakarta Post - July 29, 2015

Jakarta – Alliances built by political parties for the 2014 presidential elections have been rendered irrelevant with parties at the regional level crafting a new form of alliance with the single purpose of winning votes.

Based on data compiled by the General Elections Commission (KPU) on political candidates set to contest the Dec. 9 simultaneous local elections, The Indonesian Democratic Party of Struggle (PDI-P), the Nasdem Party, the Hanura Party, the National Awakening Party (PKB), Agung Laksono's Golkar Party faction and Muhammad "Romy" Romahurmuziy's United Development Party (PPP) faction, which are part of the ruling Great Indonesia Coalition, have struck deals to propose candidates with any members of the Red-and-White Coalition, including the Gerindra Party, Prosperous Justice Party (PKS) and the National Mandate Party (PAN).

"From the data that we have so far, there is no more dichotomy of parties being part of coalition A or B," said KPU commissioner Juri Ardiantoro on Tuesday.

As of Tuesday, the KPU had registered 240 pairs of candidates who wished to contest in 140 different regions. Of the 240 candidate pairs, 13 are for gubernatorial elections in eight different provinces, 191 for regent elections in 110 regencies and 36 for mayoral elections in 22 cities.

Philips J. Vermonte, a political analyst at the Center for Strategic and International Studies (CSIS) said that the loose composition of party coalitions at the regional level had been predicted due to the different political landscape at the local level.

Philips also said that in some cases a dominant political party which could go it alone decided to build alliances for practical reasons.

"It can be for various reasons. One is that the dominant political party wants to absorb all the power of its coalition partners to ease governance upon winning," he told The Jakarta Post.

One of the country's provinces where parties can easily switch alliances in local politics is Jambi. "The political situation in Jambi is so fluid and we have not been affected by the coalitions at the national level since the beginning [after the national election]," said Sudirman, the secretary of East Tanjung Jabung regency in Jambi.

In the lead-up to the local elections, the Democratic Party, the PDI-P and the PKS nominated incumbent Jambi Governor Hasan Asri Bagus of the Dems, while PAN, NasDem, Hanura, the PKB, Golkar and the PPP registered incumbent East Tanjung Jabung Regent Zumi Zola from PAN, paired with incumbent Deputy Governor Fachrori Umar of NasDem, according to Sudirman.

In South Tangerang, Banten, incumbent Mayor Airin Rachmi Diany sought reelection with backing from Golkar, NasDem, the PKB, PAN, the PKS and the PPP.

The domination of politically linked candidates has made it difficult for independent candidates to run in the race. The KPU has also set stringent requirements for independent candidates.

Under KPU Regulation No. 9/2015, independent candidates can nominate themselves as long as they earn the support of 6 to 10 percent of a region's total population, 3 percent higher than the last regulation. They have to gather the names and photocopies of the identity cards of their supporters.

Though the KPU registered 254 pairs of independent candidates, only 174 were eligible to be verified.

Separately, the two camps of the Golkar Party agreed on Tuesday to nominate 219 pairs of candidates for the Dec. 9 local elections. The decision on the candidates was made after a joint team, consisting of politicians from both camps, assessed 269 candidates' electability in their own regions.

During the assessment, the party received help from reputable pollsters to gauge the candidates' electability.

"After working hard for days and considering the survey results, of the 269 candidates, we have agreed to recommend 219 candidates for the elections," Golkar Party executive from the Aburizal camp MS Hidayat said during a press conference on Tuesday in Jakarta. (rbk, ind)

Source: http://www.thejakartapost.com/news/2015/07/29/national-coalitions-rendered-irrelevant-local-polls.html

Parties nominate former graft convict, plus extortion suspect

Jakarta Post - July 28, 2015

Andi Hajramurni and Suherdjoko, Makassar/Semarang – One graft suspect and another man convicted of the offense are two highlights of the list of candidates being offered up for the upcoming elections for regional heads – candidates who are, for the most part, the incumbents of the positions they are seeking.

Barru Regent Andi Idris Syukur of South Sulawesi, who was recently named a suspect for extortion, money laundering and graft by the police, registered at the regency office of the Regional General Elections Commission (KPUD) on Monday on a ticket under a coalition of the Gerindra Party, the Hanura Party, the United Development Party (PPP) and the Prosperous Justice Party (PKS).

"We accepted the registration as there has not yet been a permanent legal decision [against Andi]," said KPU Barru commissioner Muhammad Saleng.

In Semarang, a coalition of the PKS and the National Awakening Party (PKB) are running former mayor Soemarmo Hadi Saputro, who was sentenced to one- and-a-half years in prison for corruption committed during his tenure a few years ago. He registered at the KPUD office on the second day of the registration period.

Meanwhile, the incumbent Semarang Mayor Hendrar Prihadi is being supported by the Indonesia Democratic Party of Struggle (PDI-P), the Democratic Party, Nasdem and the PPP to run again. Hendrar was deputy mayor when Soemarmo was mayor.

On Sunday, the PDI-P was the first party to register candidates: incumbent Surabaya Mayor Tri Rismaharini and Surakarta Mayor FX Hadi Rudyatmo.

Many observers earlier said the incumbents would be reelected because of their high popularity.

In West Sumatra, incumbent Governor Irwan Prayitno, who is a PKS politician, has picked Pesisir Selatan Regent Nasrul Abit as his running mate to run in the election. The candidate pair, who were also nominated by Gerindra, registered at the West Sumatra KPUD on the second day of registration on Monday.

After registering, Irwan said he was running again because of demands from members of the community and the bureaucracy, as well as to complete tasks he has left unfinished during his five-year tenure.

He added that he had teamed up with Nasrul given the latter's success in leading the Pesisir Selatan regency for two terms. The regency was able to emerge from being a disadvantaged region and became the best in West Sumatra in terms of tourism and education by reaping the highest score in the National Examination.

In Central Sulawesi, incumbent Governor Longki Djanggola and Deputy Governor Sudarto registered themselves at the KPUD office with support from Gerindra, the PKB and the National Mandate Party.

Longki will fight Palu Mayor Rusdy Mastura, who decided to run for the governor position in the elections. Rusdy was supported by Golkar, the PDI-P, Hanura, the PKS and Nasdem.

In the Riau Islands province, a coalition of the Democratic Party, Nasdem, Gerindra and the PPP nominated incumbent Governor Muhammad Sani, while the PDI-P, PAN, Hanura and the PKS supported the incumbent Deputy Governor Soerya Respationo to fight for the governor's position.

Surya Makmur Nasution of the Democrats said his party nominated Muhammad Sani and his running mate Nurdin Basirun based on a survey and on their electability, which was higher than other candidate pairs.

The Golkar Party, which is still divided into two camps separately chaired by Agung Laksono and Aburizal Bakrie, claimed it has provided support to both candidate pairs contesting the ballot.

Soeryo, who was the PDI-P's Riau Islands chairman, officially registered at the KPUD in Tanjung Pinang on Monday.

Riau Islands KPUD head Said Sirajuddin said the KPUD was open for registrations from July 26 to 28. Riau Islands will hold the regional elections simultaneously together with the Natuna, Lingga, Karimun and Anambas regencies and Batam city.

[Fadli from Batam, Ruslan Sangadji from Palu and Syofiardi Bachyul Jb from Padang contributed to the article.]

Source: http://www.thejakartapost.com/news/2015/07/28/parties-nominate-former-graft-convict-plus-extortion-suspect.html

Surveys & opinion polls

Consumers worried about economy, reduce spending

Jakarta Post - July 30, 2015

Jakarta – Indonesia's consumer confidence worsened in the first half of this year as the economy deteriorated with no signs of a quick recovery, latest surveys show.

According to a MasterCard Inc. survey, Indonesia's consumer confidence faced an "extreme deterioration" in the first half, falling the most in Asia as the outlook for the economy and stock market worsened.

The 25.8-point slide from the second half last year to 64.3 on the MasterCard index was the steepest among 17 markets in the region, the credit card company said. Three other Southeast Asian nations – Thailand, Myanmar and Malaysia – are also among the top five in decline, according to the survey that also tracked employment, income and quality of life.

There was "a significant halo effect" from the 2014 elections, Matthew Driver, who heads global products and solutions in the Asia-Pacific region at MasterCard, said in an interview with Bloomberg on Tuesday. "But all of the commentary has shown a little bit of a frustration with trying to make that administration work."

The survey showed consumer confidence for Indonesia fell to its weakest in three years, undermining moves to increase domestic spending in the country that has Asia's fastest rising inflation rate.

Meanwhile, according to Nielsen Global Survey of Consumer Confidence and Spending Intention, Indonesia's consumer confidence index dropped only three points to 120 in the second quarter, but it is far below the 131 in India and the 122 in the Philippines.

"They're concerned about whether the economy will get better," Nielsen Indonesia managing director Agus Nurudin told the press on Wednesday.

The survey, conducted from May 11 to 29, showed that the level of consumers' concern about the national economy had increased 4 percent to 37 percent compared to 33 percent in the first quarter.

Consumers who intended to spend their money on primary and secondary goods in the next 12 months also dropped 3 percent to 53 percent from the first quarter. "The economic slowdown directly impacts the consumer," Agus said "They are very focused on basic things and hold back their spending."

In the survey, 81 percent of consumers had expressed that they had taken measures to save their money by cutting their spending on secondary needs such as gadgets, new clothes and out-of-home entertainment.

The trend was observed during Ramadhan and Idul Fitri in July, when the sales of major retailers recorded only a modest increase. In the past, sales during Ramadhan and Idul Fitri were more than double those of normal days.

The director of the Institute for Development of Economics and Finance (INDEF), economist Enny Sri Hartati, said that the decline of people's purchasing power mainly resulted from the rise in prices of basic needs and that had affected consumer confidence.

"It has been evident that purchasing power has declined. For example, we can see the drop in retail business," she told The Jakarta Post.

Indonesia's economy grew by 4.7 percent in the first quarter of this year, its lowest level since 2009 amid the country's weak export, domestic consumption, as well as the government's lower than expected spending.

The International Monetary Fund and the World Bank lowered their estimates on Indonesia's 2015 GDP growth recently respectively, from 5.2 to 4.7 percent percent previously as there were no signs of a quick recovery in the economy. (fsu)

Source: http://www.thejakartapost.com/news/2015/07/30/consumers-worried-about-economy-reduce-spending.html

Environment & natural disasters

Fight to save Indonesia's jungle corridors key for endangered orangutan

Reuters - July 31, 2015

Kit Yin Boey – Camp Leakey, Kalimantan – The bushes shook violently and the female orangutan froze. Her baby clutched her tightly before the two quickly disappeared into the Borneo undergrowth. As the bushes parted, a broad-shouldered male orangutan strutted to the feeding platform.

Dominating the fruit on offer, the male great ape dared the other orangutans in the trees to challenge him for the food.

The endangered orangutan is a solitary animal and it is rare to sight these great apes in groups, but this is Camp Leakey in Tanjung Puting National Park in Indonesia and home to around 6,000 rescued orangutans.

The park in Central Kalimantan province has been protecting great apes for 38 years, but its success is now a problem as the reserve does not have sufficient space and resources to sustain any more apes.

Yet Dr. Birute Galdikas, 69, who heads the Orangutan Foundation International (OFI), has some 300 more rescued orangutans in her care waiting for a release back into the wild. Galdikas's OFI is desperately trying to buy 6,367 hectares of land opposite the park, which includes a vital stretch of land along the Sekonyer River, to accommodate the extra apes – price tag $2.5 million.

But the OFI, which relies on donations and money from ecotourism, has only been able to raise a third of that amount.

"We have to protect this stretch of land," Galdikas told Reuters following an eco-trip to Camp Leakey to visit some of the rehabilitated great apes returned to the wild. "If we lose this river edge, where are all the proboscis monkeys going to go? Where are all the [300] orangutans going to go?"

Protecting the forest habitat of the orangutan has become as important as rescuing the great apes if the species is to survive, says Galdikas, who came to the Tanjung forest when she was 25 years old and has spent 44 years trekking through forests and wading up to her armpits in swamps to protect orangutans.

Palm oil

Global demand for palm oil, which is found in supermarket products from margarine to lipstick and shampoo, and is also used as a biofuel, has helped drive deforestation.

Oil palm plantations now surround Tanjung Puting National Park, cutting corridors through which orangutans and other wildlife use to cross from one large forest to another.

Indonesia, which is ranked fifth in countries with the most annual tree cover loss, imposed a 2011 moratorium on clearing primary natural forests and peat land.

President Joko Widodo in April extended the moratorium for two years and expanded it to cover 1 million hectares. The government also increased penalties for illegal logging.

But the moratorium applies only to new areas of forest. Forests in existing commercial concessions are not protected and as a result oil palm plantations have expanded.

Palm oil production in Indonesia rose from 10.5 million hectares in 2013 to an estimated 11.44 million hectares in 2015, according to the Agriculture Ministry.

Togar Sitanggang, secretary general of the Indonesian Palm Oil Association, put expansion this year at about 300,000 hectares, and said it was limited to areas already given permits a few years ago. He said a pledge on sustainable development, new forest laws and a soft market were slowing expansion.

Indonesia says palm oil is important for development because it reduces poverty by bringing roads, schools and other infrastructure to rural communities and generates five million jobs that benefit 15 million people.

And a government biofuels policy, which aims to cut fossil fuel imports and save $1.3 billion, is encouraging small landholders to turn to palm oil production. Under the policy, each liter of diesel must contain 15 percent biofuel.

"The problem is allowing landholders in Indonesia taking part of the forest for palm oil plantations – what is good for the economy may not ultimately be good for the forests," Galdikas said.

Source: http://thejakartaglobe.beritasatu.com/news/fight-save-indonesias-jungle-corridors-key-endangered-orangutan/

Health & education

Haram edict on health insurance 'misguided'

Jakarta Post - July 30, 2015

Hans Nicholas Jong, Jakarta – The latest fatwa from the Indonesian Ulema Council (MUI) declaring the national health insurance (JKN) program to be in violation of sharia law is deemed to be misguided, with officials saying that the public should not worry about the program being haram.

The MUI issued the edict during an open meeting in Tegal, Central Java, recently, saying that the way the program was run by the Healthcare and Social Security Agency (BPJS Kesehatan) involved elements that were not consistent with sharia law, such as maisir (gambling) and riba (interest), both of which are forbidden in Islam.

BPJS Kesehatan spokesman Irfan Humaidi maintained that the JKN program was following Islamic values, such as mutual cooperation (gotong royong), and thus could be considered as takaful (Islamic insurance).

"There are lots of sharia elements [in the program], one of them being that it is not for profit. If we have excess funds, then the money will not be ours, it will be used for the JKN participants," he told The Jakarta Post on Wednesday.

The JKN, which aims to provide universal health care by 2019, has been lauded by many as it covers comprehensive benefits, from influenza to expensive medical procedures like open-heart surgery, dialysis and cancer therapies.

It is not uncommon to hear stories of patients being able to go through costly surgeries just by paying Rp 25,500 (US$1.89) per month to get health care services in third-class facilities, or Rp 42,500 and Rp 59,500 per month for second- and first-class facilities, respectively.

Despite the low premiums, some people decided to join the JKN program after they fell ill and stopped paying their premiums once they recovered. In May 2015, more than 2 million participants have fallen behind on their premium payments, contributing to the program's ongoing financial difficulties.

To discourage people from not paying, late-payers have to pay a fine of 2 percent of the total premiums before they can resume their membership in the JKN program.

The MUI considered the fine to be unlawful as it fell into the category of interest. "But fines for late-payers is also applied in sharia banking with fixed fines, the same with the BPJS Kesehatan," Irfan said.

BPJS Watch secretary-general Timboel Siregar said that the fines should not be thought of as interest, since they were not aimed at benefitting the BPJS Kesehatan.

"The 2 percent fine has to be applied or else the participants will continue shirking and lead to the BPJS Kesehatan not having any money to pay for medical bills," he told the Post on Wednesday.

Timboel also pointed out that it was strange for the MUI to not declare the national pension scheme unlawful since it also used fines.

"I suspect there are some business owners in the private health insurance sector [within the MUI] who felt threatened by the JKN program and thus pushed for the issuance of the edict," he said.

Following the edict issuance, the MUI demanded the government revamp the JKN system or establish a separate system based on sharia law.

House of Representatives Commission IX overseeing health said that it was up to the government to follow up on the demand by drafting a new regulation.

"After that, the House will make an assessment," commission chairman Dede Yusuf said on Wednesday. "The Commission IX is here to oversee the BPJS Kesehatan, not the MUI."

Source: http://www.thejakartapost.com/news/2015/07/30/haram-edict-health-insurance-misguided.html

Students' characters to be built with more singing, reading

Jakarta Post - July 25, 2015

Hans Nicholas Jong, Jakarta – The government is rolling out a new program starting in the 2015 academic year that places heavy emphasis on nurturing students' characters outside normal study.

Culture and Elementary and Secondary Education Minister Anies Baswedan said that the program, which will start this Monday, was mandatory for all private schools, public schools and vocational schools in the country, citing an absence of character-building in schools.

"This is important because we believe that character development has to be the main goal of education," he said during the launch of the program at his office in Jakarta on Friday. "We found one school that had not conducted a flag ceremony for four years."

Under the new program, which is stipulated in Ministerial Regulation No. 23/2015, students will have to read books that are not textbooks for 15 minutes before their classes start. Principals will have the authority to decide what books to provide to their students.

"We don't control in detail [what books] but we do stipulate that they have to be appropriate and suitable for kids, not something they won't like," Anies said.

Students will also be required to sing a nationalistic song, either an old song like "Indonesia Raya" or a contemporary song like "Bendera" (Flag) by rock band Cokelat, before they begin studying. Students will then have to sing a traditional song before they go home.

The feasibility of the new policy has, however, been questioned by teachers, including those who attended the launching of the program, who said that it would exhaust students who already had to go through a grueling eight hours of school every day.

"For example, it says that students have to read for 15 minutes, but I'm sure it will take more time when preparation is taken into account. That means that students will go home later," Federation of Indonesian Teachers Associations (FSGI) secretary-general Retno Listyarti told The Jakarta Post on Friday.

She also lambasted the obligation to conduct flag ceremonies every Monday, which she said would demotivate students.

"If it is conducted every week then students will be fed up. It would be better for the flag ceremony to be held in the first and third weeks [of the month], while the reading time could fill the slot of the flag ceremony in the second and fourth weeks," Retno said.

Rotating the schedule between the flag ceremony and reading time, she said, would make it easier for the government to monitor the program.

"Given the program has just started, it's better not to force [students to read] every day. It's useless if the government launches a program but the implementation is lacking. Anies, it seems, likes to launch programs, but implementation then stagnates," said Retno, blaming a lack of technical preparation.

"For example, is there any data that shows how many schools have failed to conduct the [flag] ceremony? A program has to be backed by data so that the direction is clear," she said.

She also questioned the mechanism used to measure the results of the program. Anies said that the program would be monitored by education agencies throughout the country and that the results could be monitored by factors such as library use, with increased use signalling the program's success.

Despite her criticism, Retno acknowledged that character-building was necessary to build tolerance in the country.

"Indonesia has a problem with its diversity at the moment, so it's good that character-building is to be emphasized. We don't want students just to read the Koran every day, as is currently the case in many schools [...] character-building is supposed to focus on diversity and nationalism, not on the majority religion," she said.

Source: http://www.thejakartapost.com/news/2015/07/25/students-characters-be-built-with-more-singing-reading.html

Refugees & asylum seekers

Komnas HAM signs agreement with UNHCR

Jakarta Post - July 29, 2015

Dylan Amirio, National – The National Human Rights Commission (Komnas HAM) has signed a new memorandum of understanding (MoU) with the United Nations High Commissioner for Refugees (UNHCR) that will allow them to work together in improving advocacy and human rights protection for refugees and asylum seekers currently in Indonesia.

The new agreement aims to improve the efforts of Komnas HAM and the UNHCR in handling refugees landing on Indonesian soil.

Several clauses within the agreement touch on the issue of finding alternative solutions to immigration detention centers, better protection for children, an improved birth record mechanism and protection for families of refugees.

UNHCR senior regional protection advisor and UNHCR representative to Indonesia Thomas Vargas said that cooperation between Komnas HAM and the UN body was crucial in preventing discrimination against refugees, asylum seekers or displaced persons in Indonesia.

"With this agreement, we are expanding the breadth of human rights protection for refugees in Indonesia. Human rights are a universal right regardless of ethnicity or nationality. We hope that this collaboration will increase the quality of protection for all refugees here," Vargas said at the Komnas HAM office on Tuesday.

At the event, Vargas also praised the Aceh regional government for its efforts in handling the influx of Rohingya refugees landing on Aceh's shores earlier this year, saying that it served as an example of what should be done by all countries in receiving refugees on their shores.

As of June this year, the UNHCR recorded 5,277 refugees and 7,911 asylum seekers living in Indonesia, originating from various troubled regions such as Afghanistan, Iran, Syria, Somalia, Iraq and Myanmar.

Komnas HAM chairman Nur Kholis said that the refugee problem was too complex to be tackled alone by the commission, despite their best efforts.

"Our hope for this agreement is that refugee welfare in Indonesia can be handled together, which will increase the quality and prevent possible human rights violations from happening again to the refugees and asylum seekers," he added.

Nur Kholis said that Indonesia's response to the Rohingya refugee crisis was probably unsustainable as the government had not set any concrete plans for the refugees, who primarily fled persecution and economic hardship in Myanmar.

Source: http://www.thejakartapost.com/news/2015/07/29/komnas-ham-signs-agreement-with-unhcr.html

Graft & corruption

Police won't criminalize new KPK leaders, Budi Waseso says

Jakarta Globe - July 31, 2015

Farouk Arnaz, Jakarta – The controversial police general overseeing dubious criminal investigations against antigraft officials promised on Friday that his office would not "criminalize" their replacements.

Comr. Gen. Budi Waseso, the National Police's chief of detectives, told reporters in Jakarta that police would thoroughly vet the 48 short-listed candidates running for the Corruption Eradication Commission (KPK) to ensure there were no outstanding or pending criminal complaints or investigations against them.

"We're already working on it and I don't think it's going to be difficult to verify [their track records], even if not all police stations nationwide are [connected to an online database], because these 48 candidates are well known," Budi said.

"We want to make sure they're clean and clear," he added. "We won't undermine [the new KPK commissioners], and if a complaint does indeed emerge against one of them, we'll hold off on investigating it until they have finished their term in office."

A presidentially appointed selection committee is currently vetting candidates to fill five posts of KPK commissioner. Two of the incumbent commissioners, chairman Abraham Samad and deputy chairman Bambang Widjojanto, have been suspended after the police brought charges widely seen as trumped up against them earlier this year.

A third official, senior KPK investigator Novel Baswedan, also faces a police investigation on charges that the police previously attempted, and failed, to bring against him.

The slew of charges, some from cases dating back up to a decade, are widely seen as retaliation by the police against the KPK after the antigraft body in January charged Comr. Gen. Budi Gunawan, a candidate for National Police chief, with bribery and money laundering, in connection with undeclared millions of dollars in his personal bank accounts.

Waseso, a self-professed sycophant to Budi Gunawan, who managed to get the charges against him thrown out in a bizarre ruling universally panned by legal scholars but was dropped from the running for police chief, said the reason his office was investigating the current batch of KPK commissioners was because the police had not vetted them when they were selected, and thus were not alerted earlier to the outstanding complaints against Abraham and Bambang.

Asked if the police would try to fabricate charges against the new commissioners if they named another senior police officer a suspect, Waseso said "That's different. Don't get it twisted."

The chief of detectives is the subject of mounting criticism for his office's blatant bid to undermine the KPK. A petition calling for him to be fired has garnered more than 19,000 signatures since it went online on July 16.

The initiators of the petition noted that in the same time that Waseso's office had pursued charges against 49 KPK members and others sympathetic to the antigraft cause, the detectives' unit had only begun investigating four actual corruption cases, naming only 10 people as suspects – none of whom has yet been indicted.

Waseso has also drawn the ire of Ahmad "Buya" Syafii Maarif, the highly regarded former chairman of Muhammadiyah, Indonesia's second-biggest Islamic organization, who accused him of not understanding the law.

Buya has been one of Waseso's most vocal critics since the latter began going after the KPK officials in January, accusing the police general of not understanding detective work and of not having "the least bit of competence or professionalism."

"That's the sign of an official [Waseso] who lacks confidence. He's mentally unstable if he can so easily name people as suspects," Buya told an audience that included President Joko and the current KPK leadership on July 13. "I hope the nation no longer has to be led by someone as erratic as this."

In March, Buya told Vice President Jusuf Kalla that the "chief of detectives doesn't understand detective work. He doesn't have the least bit of competence or professionalism."

Source: http://thejakartaglobe.beritasatu.com/news/police-wont-criminalize-new-KPK-leaders-budi-waseso-says/

NU clerics want death penalty for corruption

Jakarta Post - July 30, 2015

Bambang Muryanto, Yogyakarta – Muslim clerics across the nation have urged law enforcement agencies and courts to be steadfast in dealing with corruption and money laundering, and bold enough to hand down death sentences to those found guilty of corruption.

The religious leaders from the country's largest Islamic organization Nahdlatul Ulama (NU) said corruption and money laundering were extraordinary crimes against humanity because of their adverse impacts on the nation, state and community.

"We clerics are in favor of the death penalty if conditions are supportive and requirements are met," NU Syuro board chairman for legal affairs Ahmad Ishomuddin told the media in Yogyakarta on Wednesday.

The recommendation on the death penalty for those involved in corruption was one of the seven points of the "Recommendation on Prevention and Eradication of Corruption and Money Laundering" directed at the government.

The recommendation was part of the conclusion of the two-day Nusantara (archipelago) Cleric Assembly themed Building Pesantren Anti-corruption Movement, organized by the NU and the Gusdurian Network National Secretariat in Yogyakarta, which began Tuesday. Gusdurian is a network of activists who promote the ideas on peace and pluralism of former president Abdurrahman "Gus Dur" Wahid.

The meeting was attended by 30 religious figures from 27 cities in 10 provinces across the country.

"Among the requirements [for the death penalty] are if corruption and money laundering are committed at a time when the country is in peril, during economic or social crises, or committed repeatedly," added Ishomuddin.

Meanwhile, Umar Faroeq, from the Ma'had Jami'ah Pesantren STAI Mathali'ul Falah Islamic boarding school in Pati, Central Java, said Nusantara clerics also studied about the death penalty handed down to corrupt people from the viewpoint of Muslim clerics long ago.

"It exists in the Maliki and Hanafi [Islamic teaching] schools, and the condition is very clear, that is, when it is done repeatedly," said Umar.

He added that an edict on the death penalty for corrupt people had not been issued by clerics from long ago because they were very careful and paid attention to aspects of human rights.

"But now we are in a time of crisis and it's time to implement it," he pointed out. Umar said the recommendation also described various forms of corruption, such as bribery, embezzlement, looting, extortion, power abuse, theft and fraud.

Money laundering is categorized as a sin according to Islamic perspectives, because it is part of a conspiracy of sin and enmity, harms the government, business world and economic system, encourages crime and puts people in danger, he added.

Gusdurian Network coordinator Alissa Wahid said the recommendation also served as a basis for the NU to carry out anti-corruption measures based in Islamic boarding schools.

"The recommendation will enable Islamic boarding school caretakers and Islamic-based schools as well as members of the NU community to understand corruption," said Alissa.

The eldest daughter of Gus Dur added that the recommendation would also be conveyed to clerics attending the 33rd NU Congress in Jombang, East Java, in early August.

Meanwhile, Yogyakarta Legal Aid Institute (LBH Yogyakarta) director Hamzal Wahyudin said he agreed that serious measures needed to be taken to eradicate corruption, but disagreed with the death penalty for such offenses. "The death penalty is against basic human rights so it is not feasible in Indonesia," said Hamzal.

He said there were alternative forms of punishment that could serve as deterrents, such as a life sentences, deprivation and revoking the political rights of those found guilty. "I believe they are sufficient," he stressed.

Source: http://www.thejakartapost.com/news/2015/07/30/nu-clerics-want-death-penalty-corruption.html

Officials' wives playing greater role in graft

Jakarta Post - July 30, 2015

Haeril Halim, Jakarta – Donning a long-sleeve green blouse with a black headscarf, Evi Susanti, the second wife of North Sumatra Governor Gatot Pujo Nugroho, looked extremely tired walking out of the Corruption Eradication Commission (KPK) office at dawn after undergoing a marathon 15-hour questioning over the bribery case implicating her husband.

After the lengthy questioning session, Evi was named a suspect together with her husband on Tuesday.

Evi is not the first wife of a government official to be questioned by the KPK before being declared a suspect. Rather, her role in the bribery scheme reveals a recurrent pattern of wives, including second wives, playing roles in graft schemes in the past two years.

Prior to 2014, it was the wives of graft suspects who helped their husbands launder ill-gotten gains by becoming second party beneficiaries to hide the whereabouts of dirty assets. None of them however were charged with money laundering.

With the KPK failing to prosecute graft suspects' wives, the past two years saw the wives of state officials playing greater roles in graft schemes.

In the graft case implicating the North Sumatra governor, Evi allegedly provided bribe money to three judges at the Medan State Administrative Court in exchange for a favorable ruling that cleared Gatot from his suspected role in a corruption case involving the North Sumatra administration.

"Yes, the questions concerned the source of the money. I let Pak Gatot explain that issue," Evi told reporters after emerging from questioning on Tuesday.

Gatot's lawyers appear to have inadvertently confirmed her role in the scandal. "Bu Evi just helps ease work levels for her husband because as a regional leader he is busy with official duties. It's an operational fee for lawyers, not for bribing judges," Gatot's lawyer Razman Arief Nasution said, revealing the source of the money that prominent lawyer OC Kaligis later used to bribe judges in Medan. Kaligis is Gatot's attorney for the corruption case.

Prior to Evi, the antigraft body has labelled three wives of government officials as actors in bribing state officials in exchange for favorable decisions.

In July this year, the KPK declared Suzanna, the wife of Empat Lawang regent Budi Antoni Aljufri, a graft suspect for helping him bribe then Constitutional Court chief justice Akil Mochtar.

Suzanna was later also charged with perjury after the KPK found that she tried to protect her husband in the case by giving false testimony during the trial of Akil in 2014. The couple is expected to stand trial soon.

In other graft cases, the KPK has also slapped bribery and perjury charges on former Palembang mayor Romi Herton and his wife Masyito. Both were sent to jail in May.

Meanwhile, in July 2014, the KPK arrested the wife of Karawang regent Ade Swara, Nurlatifah, for receiving bribe money from a businessman for delivery to her husband. The KPK accused her of extorting PT Tatar Kertabumi for money in exchange for her husband's support of a permit application for a housing project in Karawang.

"The regent extorted the company and his wife acted as the go-between," then KPK chairman Abraham Samad said in 2014.

Acting KPK deputy chairman Johan Budi said that the growing involvement of wives or family members in graft schemes was due to lavish lifestyles practiced by many government officials. Johan said that members of government officials' families aspired to be a part of high society and did whatever it took to join the club.

"For example, one wife of a graft suspect has a Hermes bag worth Rp 960 million. It's worth mentioning that a bag like that is only owned by five people in the world. The wife also has other very expensive bags," Johan said.

Source: http://www.thejakartapost.com/news/2015/07/30/officials-wives-playing-greater-role-graft.html

AGO continues to reject Abraham, Novel cases

Jakarta Post - July 27, 2015

Haeril Halim, Jakarta – A lawyer representing former Corruption Eradication Commission (KPK) chairman Abraham Samad and investigator Novel Baswedan has lashed out at the Attorney General's Office (AGO) and the National Police for putting the two's criminal cases in limbo, with no sign of their trials commencing any time soon.

The AGO confirmed on Sunday that it once again was forced to send back the dossiers of Samad and Novel to the National Police after its prosecutors found that police had failed to submit evidence to back up their accusations against the two KPK personnel.

Lawyer Bahrain said that the back and forth exchanges of his clients' dossiers to and from the AGO and the National Police had shown that the police had failed to build strong cases against Abraham and Novel, who were believed to be facing prosecution as an act of revenge following the KPK's decision to launch a bribery investigation into high-ranking police officer Comr. Gen. Budi Gunawan in January.

The police named Abraham a suspect in an abuse of power case, which many see as an ethical matter rather than criminal offense, for allegedly meeting with Indonesian Democratic Party of Struggle (PDI-P) secretary- general Hasto Kristiyanto to discuss his possible candidacy as the party's vice presidential candidate in 2014, while the police reopened an assault case against Novel, a case that had been closed in 2012.

The police also declared another KPK commissioner, Bambang Widjojanto, now suspended, a perjury suspect during the standoff.

"If the back and forth means that the police are able to not find strong evidence to back up their claims then the AGO should exercise its independency to halt the investigation by declaring the two cases not fit to be tried," Bahrain of the Foundation of the Indonesian Legal Aid Institute (YLBHI) told The Jakarta Post on Sunday.

"Such a move is wiser than pursuing cases that are not suitable to be tried in court. We all knew how Abraham and Novel were charged," Bahrain added.

Bahrain also lambasted the National Police for ignoring the KPK's request to postpone their investigation into Abraham in a move to allow an internal committee at the KPK to investigate whether the suspended KPK chairman had violated the code of ethics as accused by the police.

"In addition to Novel, due to his status as a former police member, KPK leaders had sought confirmation from the National Police, at that time led by Gen. [ret.] Sutarman, regarding his legal status. Sutarman said that his predecessor Gen. [ret.] Timur Pradopo had dropped his case in 2012 and that was why the KPK approved Novel's proposal to become a KPK investigator," Bahrain said.

Bahrain said he was surprised to learn that the National Police, under the tenure of current chief Comr. Gen. Badrodin Haiti, reopened Novel's assault case when the KPK and the National Police were involved in a standoff in January.

Contacted separately, AGO spokesman Tony Tubagus Spontana confirmed that AGO prosecutors had returned Abraham and Novel's dossiers to the National Police.

"[The AGO returned both dossiers] before the Idul Fitri holiday [on July 17]. It's true that this is not the first time we returned their dossiers to the police," Tony told the Post on Sunday.

Tony rejected the suggestion that the criminal cases of Abraham and Novel were not suitable to be sent to the court for trial as deemed by many law experts.

The spokesman did not answer whether the AGO had sent Bambang's dossier to the Central Jakarta District Court for trial or if it had returned it to the National Police like it did with Abraham and Novel's dossiers.

Bambang, who along with Abraham signed an investigation warrant against Budi in January, has been accused of encouraging perjury when he served as a lawyer adjudicating a regional head during a trial on a regional election dispute at the Constitutional Court in 2010, one year before Bambang was named KPK commissioner in 2011.

Source: http://www.thejakartapost.com/news/2015/07/27/ago-continues-reject-abraham-novel-cases.html

Terrorism & religious extremism

Talks with Australia as Indonesia moves to tighten laws against ISIS

Sydney Morning Herald - July 28, 2015

Tom Allard, Jakarta – Indonesians who join Islamic State or sympathise with the terrorist group will face criminal sanctions for the first time under draft laws that will significantly harden the country's counter- terrorism legislation.

It follows consultations with Australia and other nations keen for Indonesia to strengthen its approach.

The proposed laws come as Indonesia grapples with a surge in its citizens travelling to Syria and Iraq to fight with Islamic State, with an estimated 500 there, most assigned to their own military unit alongside Malaysian and Singaporean recruits.

As Indonesia is failing to stem the outflow of jihadists, its judges have determined that being a member of Islamic State and undertaking paramilitary training with the militant jihadist group – also known as ISIS or ISIL – is not a crime.

"The revised anti-terrorism law will make those who join ISIS or show sympathy to it a crime," the spokesman for Indonesia's anti-terrorism agency, Irfan Idris, told Fairfax Media.

Mr Irfan confirmed his agency and other Indonesian officials had been receiving assistance from Australia.

Between 2002 and 2009, 95 Australians were killed in terrorist attacks in Indonesia. The Australian embassy in Jakarta was also bombed in 2004, causing nine deaths, all Indonesians.

Australia recently co-chaired a high level meeting examining options for Indonesia's counter-terrorism laws at the Jakarta Centre for Law Enforcement Cooperation, an Indonesian police facility that was developed with Australian financial support.

As well as Indonesian and Australian intelligence analysts, police and officials, representatives from Britain, Jordan, the Netherlands and Denmark also participated.

Mr Irfan said the laws would punish those who pledged allegiance to IS, as well as those who promoted its ideology and "concepts".

"For instance, [that] one will go to heaven for killing somebody. It's a concept. But it's a totally wrong concept because it's against any teaching on good things, let alone religious teachings."

The new laws are being drafted by the anti-terrorism agency, known as the Badan Nasional Penanggulangan Terorisme (BNPT), and the Ministry of Law and Human Rights.

In an interview with Singapore's Straits Times newspaper published on Monday, Indonesian President Joko Widodo said his government would work closely with other countries on terrorism.

"It is very important to improve our regulations on this," Mr Joko said. "We will put more provisions in our laws so we can prevent anyone planning to launch a terror attack."

Local authorities have faced a number of legal setbacks attempting to prosecute Indonesians who have joined terror groups in the Middle East. They failed, for example, to have cleric Afief Abdul Madjid found guilty of terrorism offences for joining IS and undergoing paramilitary training in Syria.

He was sentenced to four years in prison, half the penalty demanded by prosecutors, but only for his involvement in a terrorist training camp in Aceh five years ago.

Another Indonesian IS member, Muhammad Saifuddin Umar, captured entering Syria and extradited home, could only be prosecuted for hiding former terrorist bombmaker Noordin Muhammad Top, who created havoc across Indonesia for almost a decade before his death in 2009.

Meanwhile, other alleged IS members and recruiters have been brought to trial for passport violations. At least 12 upcoming court cases will further test the adequacy of Indonesia's anti-terrorism laws.

Adhe Bhakti, a researcher at the Jakarta-based Centre for Radicalism and Deradicalisation Study, said there was a real danger the alleged offenders will get off, or be given light sentences, due to flaws in the law.

Mr Irfan said the new laws would be presented to Indonesia's national parliament "as soon as possible". But Indonesia's parliament is notoriously fractious and inefficient and there is little evidence so far that its members see the counter-terrorism laws as a priority. (with Karuni Rompies)

Source: http://www.smh.com.au/world/talks-with-australia-as-indonesia-moves-to-tighten-laws-against-islamic-state-20150728-gimc8m.html

Freedom of religion & worship

Basuki steps in to thwart church demolition

Jakarta Globe - July 27, 2015

Deti Mega Purnamasari, Jakarta – Jakarta Governor Basuki Tjahaja Purnama has once again come to the defense of a religious minority congregation targeted by Islamic hard-liners, this time siding with a church threatened with demolition after three decades of serving its parishioners.

Basuki on Sunday intervened to stop the demolition of the Indonesian Protestant Christian (GKPI) church in Jatinegara subdistrict, East Jakarta, which had been ordered by the East Jakarta mayor's office at the behest of the local chapter of the Interfaith Communication Forum (FKUB) – comprising hard-line Islamic groups that tend to be against the presence of churches in their communities.

The mayor's office had threatened to send in public order officers to demolish the church, and even stationed police personnel and soldiers outside the building.

The office said that the church, built in the 1980s, did not have a building permit, and gave the congregation the option to tear down the structure themselves on Sunday. Basuki, though, stepped in, saying the demolition order was based on a frivolous technicality that was not enforced for countless of other houses of worship throughout the capital, most of them mosques.

He acknowledged that the church leaders had never obtained a building permit, or IMB, when construction of the church first began, and that the matter only came to the East Jakarta authorities' attention when the congregation applied for a permit in 2013 to carry out renovations.

Basuki said his administration would provide some leeway for churches and other houses of worship to get their paperwork in order – if they had a long and established presence in their community. He warned that the alternative, to throw the book at them, would only serve to rupture the capital's social and religious cohesion.

"We must not allow this [permit] issue to be exploited by intolerant groups," the governor said on Sunday at a gathering of interfaith community leaders. "If we're talking about houses of worship that have been around for a long time, I'll stand up for them."

He noted that dozens of mosques were also built in violation of zoning regulations, but there was no effort made to tear them down. "There are lots of mosques built within housing estates where you're not supposed to have a house of worship," he said.

"There's also an Islamic foundation whose mosque according to the ministry [of religious affairs] must be 2,500 square meters, but is only 300. Do I let them be? Yes, because they've been there more than a dozen years. You have to be reasonable."

The governor's intervention comes less than a fortnight after he took a stand for a beleaguered community of Ahmadiyah Muslims who had for four decades worshiped at the home of one of its members in Tebet, South Jakarta.

Those hostile to the group, primarily the notorious Islamic Defenders Front (FPI), a rent-a-mob with religious pretensions, have rather ridiculously taken offense at the fact that the Ahmadis, who have been living and praying in the Bukit Duri neighborhood of Tebet since the 1970s, have consistently declined to worship at a nearby mosque.

The protesters claim this refusal harms their own identity as Muslims, and demand that the Ahmadis be evicted on the grounds that they are violating zoning regulations by holding prayer gatherings in a residential property.

Basuki, though, said his administration would grant an exemption from the regulation to all Ahmadiyah communities in the city who wished to worship at members' homes instead of at mosques, where their slightly different prayer rituals often mark them out for persecution by their Sunni Muslim peers.

"We'll let them get around the zoning restrictions so that their houses may be used as places of worship," he said on July 15.

The governor is no stranger to religious intolerance, having come under attack during the 2012 gubernatorial election because of his own Christian faith.

Source: http://thejakartaglobe.beritasatu.com/news/basuki-steps-thwart-church-demolition/

MUI opposes HTI's plan for 'halal bihalal'

Jakarta Post - July 24, 2015

Djemi Amnifu, Kupang – The Indonesian Ulema Council's (MUI) East Nusa Tenggara (NTT) chapter has rejected the plan by Hizbut Tahrir Indonesia (HTI) to hold a halal bihalal (Idul Fitri friendship meeting) at the Kupang Grand Mosque.

The council argued that such a meeting, which was planned for Aug. 9, would only disturb interfaith harmony which had been so well established in the region.

"MUI NTT firmly rejects all activities of HTI in the province. We don't want them to disturb the interfaith harmony here," chairman of MUI NTT, Abdul Kadir Makarim, told reporters on Thursday.

Abdul said that the vision and mission of HTI, which is known for its campaign to establish an Islamic caliphate, differed from that of the organizations under MUI. MUI NTT, he said, called on all Muslims in the province not to join in activities conducted by HTI.

"The Tolikara case in Papua should be taught as a valuable lesson to all of us in NTT. We must continue to maintain harmony," he said, referring to the incident in which several kiosks were burned down and the fire spread to a mosque after a riot broke out between Muslims and Christians.

A similar rejection of the presence of HTI and its activities in NTT was also expressed by members of the National Alliance Ady William Frith Ndiy.

"Pancasila is final. There is no room for anyone to replace it with another law or the teaching of any particular religion. Subverting Pancasila is the same as considering the state an enemy and the enemy of the state is our enemy," Ady said.

Kupang City Police Chief Adj. Sr. Comr. Budi Hermawan said that he would not grant permission for HTI NTT to hold a halal bihalal on Aug. 9.

He argued that HTI NTT had not yet been registered at the Provincial National Unity, Politics and People Protection (Kesbangpolinmas) agency, meaning that it was not yet an official organization in the province.

"We have yet to receive a proposal (on halal bihalal), but we will not let them have one. This is for the sake of interfaith harmony in Kupang," Budi said.

Separately, HTI NTT's chairman Said Made Amin declined to comment. "There is no need to write [a report]. We are still working on permission for the event," he said.

HTI NTT had previously planned to hold a grand carnival to commemorate Isra Mira'raj (the Ascension of Prophet Muhammad) in Kupang in May of this year. The plan was turned down by local students and communities naming themselves the National Alliance.

The alliance consists of Indonesian National University Student Movement (GMNI), Netherland Indonesian Christian Church (GKIN), Evangelical Church Youth in Timor (GMIT) Horeb, Indonesian Catholic Student Youth Forum (Fopemkri), Laskar Merah Putih, Anshor Youth Movement NTT, Anak Bermusik NTT and Brigade Meo.

Source: http://www.thejakartapost.com/news/2015/07/24/mui-opposes-hti-s-plan-halal-bihalal.html

Islamic law & morality

No beer or bikinis: MUI pushes for shariah-compliant tourism

Jakarta Globe - July 30, 2015

Jakarta – Indonesia's top clerical council is demanding the government draw up legislation to make tourism in the country compliant with Islamic principles.

The call from the Indonesian Council of Ulema (MUI) comes a day after the body on Wednesday denounced as haram, or forbidden to Muslims, the government's universal health insurance program.

The MUI, which is convening its annual congress on fatwas, or edicts, this week, said on Thursday that Indonesia's tourism industry had to be based on shariah, or Islamic law, in order to prevent "damage caused by tourism."

"The MUI urges the government to immediately draw up regulations/legislation on shariah hotels, shariah travel, and shariah entertainment," the council said in a statement from Thursday's session of the fatwa congress.

The MUI said tourism should be managed in such a way as to be "enlightening, refreshing and calming," and should steer clear of elements such as prostitution and alcohol consumption.

It also said there should be a standard of "ethics and behavior" enforced on tourists to prevent "hedonistic and pornographic" conduct – which it has in the past defined as including the wearing of bikinis, even on beaches.

The MUI's recommendations, including its fatwas, are not legally binding, although some regional governments in Muslim-majority areas have previously cited them in pushing through conservative bylaws.

Source: http://thejakartaglobe.beritasatu.com/news/no-beer-bikinis-mui-pushes-shariah-compliant-tourism/

Agriculture & food security

Drought threatens Indonesia food security target

Jakarta Post - July 30, 2015

Suherdjoko and Jon Afrizal, Semarang/Jambi – The government's efforts to improve food security are facing a tough road ahead after several regions across the archipelago have reported massive harvest failure over the past few months caused by the long dry season.

In Central Java, one of the country's largest rice-producing regions, 6,578 hectares of paddy fields in several regencies, including Grobogan, Blora and Pati, have experienced crop failure this year due to severe drought, according to the Central Java Agriculture Agency's food crop cultivation head Nuswantoro SP.

Nuswantoro said that almost 27,000 ha of paddy fields in the province, along with 294 ha of corn fields and 237 ha of soybean fields, were on the verge of crop failure as well, as they were yet to be sufficiently irrigated.

"Out of the 35 regencies and municipalities in Central Java, 29 of them have been struggling with the impact of the drought," he said on Wednesday.

Meanwhile the local Disaster Mitigation Agency (BPBD) in Jambi declared emergency standby status for drought in the province on Monday after eight out of the province's 11 regions experienced severe drought in the midst of a long dry season.

The province's Agriculture Agency also reported that 68 ha of paddy fields have experienced crop failure. "One hectare of paddy field can produce an average of 5 tons of rice. This means that we have lost a potential of 340 tons of rice during this year's harvest season," agency head Amrin Aziz said.

Indonesia imported at least 425,000 tons of rice from Thailand and Vietnam last year. President Joko "Jokowi" Widodo has previously pledged to lead the country to become self-sufficient in rice production within three years.

However, the National Disaster Mitigation Agency (BNPB) revealed on Tuesday that 25,000 ha of crop fields across the archipelago have experienced harvest failure due to the El Niqo weather phenomenon, which affects temperatures and rainfall patterns.

It also revealed that 77 regencies and municipalities in 12 provinces, including West Java, Central Java, South Sulawesi, East Nusa Tenggara and Papua, have also been struggling with a water crisis due to the long absence of rain.

The Indonesian Meteorology, Climatology and Geophysics Agency (BMKG) has predicted that the El Niqo effect will extend Indonesia's dry season, which normally occurs between April and September, until November.

In Boyolali, Central Java, the local BPBD has reported that thousands of residents over 42 sub-districts in the regency have been struggling with a water crisis.

Residents in Kalimati sub-district, Juwangi district, for example, must dig up soil near a dried-up river in search of water. They have to wait around an hour until murky and smelly water emerges from the holes.

"The water can be directly used for showers or washing clothes. But we must allow the water to settle for at least one day before boiling it [for drinking water]," said 37-year-old Suyekti, a local resident.

Meanwhile in Southeast Minahasa regency, North Sulawesi, residents of the regency capital of Ratahan reported that water supply from the regional administration-run tap water company (PDAM) has been disrupted for the past several days.

PDAM official Steven Kawenas said the disruptions have been triggered by both technical problems and the decreasing amount of raw water supply in the city. "We only have one raw water source [for the city]. Water reserves have been decreasing, while the demand for tap water is increasing," he said.

[Ganug Nugroho Adi in Boyolali and Lita Aruperes in Manado contributed to the article.]

Source: http://www.thejakartapost.com/news/2015/07/30/drought-threatens-ri-food-security-target.html

Water sources dry up as drought takes hold, threatens food crops

Jakarta Post - July 28, 2015

Ganug Nugroho Adi and Agus Maryono, Karanganyar Banyumas, Central Java – A prolonged drought has left thousands of hectares of rice fields dried out and tens of thousands of residents with a clean-water crisis in a number of regions in Central Java.

In Karanganyar regency, the drought has threatened some 3,000 hectares of rice fields as the two reservoirs that irrigate the fields, namely those of the Lalung and Delingan dams, have begun to run dry.

Suharno from the Delingan dam management said there was only some 500,000 cubic meters of water in the reservoir while its capacity was around 4 million cubic meters.

"Many of the farmers have chosen not to cultivate their fields due to the lack of water supply," said Suharno on Monday, adding that the reservoirs irrigated rice fields in a number of subdistricts including Godong, Bejen, Gaum, Ngijo, Suruh and Wonolopo.

Rukimin of Lalung dam management told the same story, saying that the reservoir currently only accommodated 250,000 cubic meters out of its total capacity of 2 million cubic meters. The reservoir supplies water to some 1,300 hectares of rice fields.

Hundreds of hectares of rice fields around the dam have also dried out and caused harvest failures for hundreds of farmers in the region due to the drastic decrease in the volume of water. "The average farmer is suffering a loss of between Rp 3 million [US$234] and Rp 4 million," farmer Ngadiman of Suruhkandang said on Monday, adding that the subdistrict was home to some 100 farmers.

Head of Karanganyar Agriculture Crop Horticulture and Forestry Agency (Dispertanbunhut), Supramnaryo, said that five districts in the regency had been declared vulnerable to drought. These are Gondangrejo, Mojogedang, Karanganyar, Jaten and Karangpandan.

To deal with the problem the agency would implement a system that required the use of organic fertilizer that had the capability to absorb water from sources other than wells.

The drought has also caused at least 30,000 people in Cilacap and Banyumas in Central Java, to endure a shortage of clean water for the last two months, forcing them to buy water to meet their daily needs.

The affected residents live in six districts in Cilacap and five districts in Banyumas. Of them, some 20,000 are in Cilacap. The administrations of both regencies have been distributing clean water for free to ease the burden.

"We have dropped off over 60 tanks of clean water and have enough to meet the needs of some 17,000 people for the next two weeks," head of Cilacap Disaster Mitigation Agency (BPBD), Supriyanto, said on Monday.

In Banyumas, 10,000 people are enduring a clean-water shortage and the drought has also caused at least 3,000 hectares of rice fields to dry out, which it is feared will lead to harvest failure.

"People here have for the past two weeks been forced to buy clean water for Rp 5,000 per jerry can," Tarimun of Kalitapen subdistrict, Purwojati district, told The Jakarta Post.

Banyumas BPBD has also started distributing clean water to the nine worst- affected subdistricts in the districts of Banyumas, Purwojati, Jatilawang, Gumelar and Lumbir.

Meanwhile, residents of the transmigration complexes in Kemboja and Satai Lestari subdistricts in North Kayong regency, West Kalimantan, were reported to be using water from ditches for consumption due to a scarcity of clean water.

"We are forced to consume this because there is no other source of clean water to use," Sujadi of Pulau Maya said as quoted by Antara news agency on Monday.

Source: http://www.thejakartapost.com/news/2015/07/28/water-sources-dry-drought-takes-holdthreatens-food-crops.html

Indonesia braces for drought-related food crisis

Jakarta Post - July 25, 2015

Agus Maryono, Banyumas – Tens of thousands of hectares (ha) of farmland across the archipelago are on the verge of harvest failure due to the prolonged dry season, hampering President Joko "Jokowi" Widodo's target of achieving self sufficiency in national rice production within three years.

In Banyumas, Central Java, at least 3,000 ha of paddy fields are facing harvest failure due to drought in the regency over the past two months.

Banyumas Agriculture Agency head Tjutjun Sunarti said the regency would lose at least 15,000 tons of unhusked rice from the fields should they fail to immediately receive sufficient irrigation.

"Currently, farmers get water by pumping it from rivers around the rice fields. However, if the water source is far away, it is impossible for them to pump water to irrigate their dried fields," she said, adding that at least 60 ha of paddy fields had so far been confirmed to have experienced harvest failures.

Tjutjun said the parched paddy fields were rain-dependent fields, which could not endure a long dry season. Some of the most-affected areas, according to her, are Purwojati, Kemranjen, Sumpiuh and Jatilawang districts.

Forty-year-old Sartim, a local farmer from Banyumas, said he had to rent a pump for Rp 100,000 (US$7) every day for four days to irrigate his 1- hectare paddy field. "Apart from letting the crops die, there's nothing else I could do but spend additional money," he said.

The Meteorology, Climatology and Geophysics Agency (BMKG) has recently warned that the dry season this year could last longer than that of previous years due to the weather phenomenon known as El Niqo.

The BMKG predicts that the El Niqo effect will extend Indonesia's dry season, which normally takes place between April and September, until November, and affect 18 out of the country's 34 provinces, including North Sumatra, West Java, Central Java, East Java, West Nusa Tenggara and East Nusa Tenggara.

In West Java, one of the country's largest rice-producing regions, El Niqo during the dry season is predicted to cause drought that will potentially affect up to 60,000 ha of rice fields, according to the province's Water Resources Management Agency head Eddy M. Nasution.

"The northern part of the province will be the area that is the most affected by the drought. However, it is unlikely that it will be worse than last year," Eddy said on Friday as quoted by Antara news agency.

Eddy said the impending drought in the province had already been indicated by the continuing decrease in water volume in many rivers in the province.

Indonesia, through the State Logistics Agency (Bulog), imported at least 425,000 tons of rice from Thailand and Vietnam last year. President Jokowi has pledged that he will lead the country to become self-sufficient in rice production within three years.

Earlier this month, the Central Statistics Agency (BPS) estimated that the production of unhusked rice, a leading indicator of farmers' output, will soar by 6.64 percent to 75.5 million tons this year from 70.85 million tons last year.

Agriculture Minister Amran Sulaiman earlier said the government had been anticipating the irregular weather patterns since early this year by building irrigation channels that spanned over 1 million ha.

He also said that the government was planning to reduce areas affected by crop failure to 10,000 ha this year from the 25,000 ha seen in previous years.

"We know that around 200,000 ha of farmland are prone to drought, and 25,000 ha have faced crop failure. The Agriculture Ministry is making efforts to minimize crop failure due to the drought this year," he said on Thursday as quoted by Antara.

This year's prolonged dry season has also triggered massive land and forest fires in many areas in the country over the past few weeks.

The BMKG Pekanbaru Station head Sugarin revealed on Friday that 158 hotspots had been detected in seven of Sumatra's 10 provinces, with Riau being the most affected province, with 79 hotspots.

Source: http://www.thejakartapost.com/news/2015/07/25/ri-braces-drought-related-food-crisis.html

Land & agrarian conflicts

City's homeless children pay hefty price in evictions

Jakarta Post - July 28, 2015

Indra Budiari, Jakarta – Maharani said she was unable to hold back her tears when hundreds of uniformed men raided her neighborhood and started to throw her family's belongings out of the house.

"My mother begged them to stop when heavy equipment began to demolish our house, but they wouldn't listen to her," the 14-year-old told The Jakarta Post recently amid the debris of her house in Pinangsia, West Jakarta.

She said she had no chance to save her books and schoolbag as the eviction was carried out without prior notice.

Having been evicted a day before her final exam, Maharani said the best choice for her was to stay the night at a friend's house to focus on her studies so she could pass the seventh-grade exam. "But how can you study when your house was destroyed just a few hours before?" she said.

A younger student shared similar frustrations. Rendi Ferdinand said besides trying to find his books, he also looked for his shoes and school uniform as soon as the city administration office left the remains of his house, but he could not find them.

Rendi found some solace in the fact that his teachers let him graduate to fourth grade even though he did not show up to take the exam. "My friends at school also showed their support and tried to cheer me up," he said.

Besides demolishing Maharani's and Rendi's houses, more than 500 officers from the Jakarta Public Order Agency (Satpol PP) tore down at least 112 other buildings located on a riverbank and an early childhood school on May 27. The demolitions were carried out to make way for the Ciliwung River revitalization plan and led to the eviction of hundreds of people.

The Pinangsia case was just one in a string of evictions of riverbank residents this year and last year. The latest data released by the Jakarta Residents Forum (Fakta) show that the administration evicted 13,852 residents from their homes last year as well as ended the business of 2,194 street vendors.

The number of evicted residents was lower than the year before when Fakta recorded 18,496 people evicted, while fewer street vendors, 1,641, were evicted in 2013.

City administration officials said they had offered registered evictees six months' free rent in four low-cost rental apartment (rusunawa) complexes located in Marunda in North Jakarta, Daan Mogot in West Jakarta, Komarudin and Pulogebang, both in East Jakarta.

However, amid a social housing backlog, many residents have been left without alternatives save for erecting tents on the rubble of their homes. Some Pinangsia residents went to Marunda to ask for rental apartments only to be turned away by the management, which said there was a long waiting list.

On the other side of the river, hundreds of homes in Ancol, North Jakarta, were also demolished for a similar reason one week after the eviction in Pinangsia.

For 13-year-old Pandu, the hardest thing about the evictee was seeing his friends leave the neighborhood one by one. He said some of his friends went to their hometowns with their families, while others moved into various low-cost apartments.

"The people who evicted us destroyed not only my home but also my friendships," he said, adding that he previously had a lot of friends to play soccer with every afternoon.

He said that now that Ramadhan was over, his family would also return to their hometown in Karawang, West Java. Pandu said his family would not move to the rusunawa as his grandmother would not be able to walk up or downstairs from the fifth floor apartment that they had been designated.

For the time being, Pandu, his parents and grandmother sleep on the remains of their house, with no roof above them and only a thin mattress under them. "Every night I only have one wish to God. Please don't let the rain pour down tonight."

Source: http://www.thejakartapost.com/news/2015/07/28/city-s-homeless-children-pay-hefty-price-evictions.html

Jakarta & urban life

Developers ignoring obligation to build low-cost apartments

Jakarta Post - July 31, 2015

Corry Elyda, Jakarta – As Jakarta's shortfall of affordable housing deepens, many developers are failing to meet their obligation to build low-cost apartments, a stipulation of permits to construct commercial buildings in the capital.

The Jakarta Spatial Planning and Environmental Bureau revealed that the city administration had issued 729 land-use permits (SIPPT) for residential development from 1991 to 2014 for the same number of holders. Of that number, only 55 holders have met their obligation to build low-cost apartments.

Abusudja Samsuri, head of the bureau's public and social facility department, said recently that some of the companies still under obligation to the city administration had gone bankrupt or ceased to exist.

"Weak sanctions and law enforcement are the main reasons behind the delays," said Abusudja, whose team is tasked with encouraging developers to meet their obligations.

According to Gubernatorial Decree No. 540/1990, a developer planning to build housing complexes or apartments of 5,000 square meters or more is obliged to fund and build low-cost apartments and public facilities at least 20 percent as large as the commercial buildings.

"Those who have not fulfilled their obligations cannot secure building- worthiness certificates [SLF]," he said.

The absence of the certificate, however, seemed to matter little to developers, he went on. "Without the certificate, they are technically not allowed to use the building. However, many commercial buildings operate without one," he said.

Without an SLF, he added, developers were unable to obtain land certificates for the owners of apartment units from the National Land Agency (BPN).

The rate at which the department could push developers to do their duty was very slow, Abusudja said, compared with the pace of today's property development.

He added that developers often struggled to find affordable plots of land for the construction of the required low-cost apartments, forcing the administration to provide land in some cases.

"They can build the apartments on our land," he said, giving as examples Daan Mogot apartments in West Jakarta and Muara Baru apartments in North Jakarta.

The Jakarta Housing and Building Administration Agency revealed in November last year that Jakarta was suffering from a housing backlog of up to 529,000 units.

Agency head Ika Lestari Adji said her office aimed to build 5,000 units of new apartments by the end of 2017 for residents evicted from riverbanks and reservoirs.

"We have met 25 percent of the demand while the city and the central government will fulfill another 30 percent in the next project," she said, adding that she hoped city-owned and private developers would help fulfill the remaining demand.

Real Estate Indonesia (REI) Jakarta chapter chairman Amran Nukman said the number of units developers' obligations entailed was often unclear. "The problem lies in the calculation of converting the size [of the commercial building] into apartment units or blocks," he said.

Developers, he added, were not looking to shirk their responsibilities, but called for a clear regulation from the city. "We are communicating intensively with the city administration regarding the calculation," he said, adding that a resolution was expected in the near future.

Source: http://www.thejakartapost.com/news/2015/07/31/developers-ignoring-obligation-build-low-cost-apartments.html

Jakarta to step up CCTV installation to curb crime

Jakarta Globe - July 31, 2015

Lenny Tristia Tambun, Jakarta – Days after CCTV footage appeared to have helped facilitate the safe return of a child abducted from a Jakarta shopping center, the city administration has announced it will expedite plans to install up to 4,000 cameras across town and hook them up to the national database of electronic ID cards.

Iik Kurnia, the city's head of public relations, said on Friday that so far a mere 153 cameras had been installed under the Smart City scheme – 87 by the government and the remainder by private companies.

Governor Basuki Tjahaja Purnama says he plans to install 4,000 CCTV cameras in all parts of the city before the end of next year. "DKI [the city administration] has already received 4,000 CCTV [cameras]," Basuki said. "But the plan is that at least 2,000 will be installed by the end of this year."

Pointing to the recent abduction case of a 6-year-old child from a shopping center in Cililitan, East Jakarta, the governor said the system aims to lower crime rates. Footage of the abductor was recorded by a CCTV camera and widely shared. Within days, the child was released unharmed and found her way home in a taxi.

Facial recognition

Basuki said the CCTV cameras will be able to detect certain facial features.

"You've got an e-KTP [identity card] right? Well, faces recorded by these CCTV cameras will be fed into the system and we'll know who it is," he said. "All [authorities in] Indonesia will be able to know whether this person is registered [as wanted by police]."

"I've requested that all CCTV cameras can be accessed by police. That's better. So police can monitor."

Deputy Governor Djarot Saiful Hidayat agreed, saying that Jakarta residents would feel safer once the new system is up-and-running. "That's one of the functions of CCTV. If there is a crime, a robbery or a kidnapping, it can be recorded and acted upon," Djarot said.

The city will prioritize placing cameras in crime-prone areas, he added, and these will be hooked up to a central monitoring center. "Jakarta will be a far safer city," the deputy governor said.

Source: http://thejakartaglobe.beritasatu.com/news/jakarta/jakarta-step-cctv-installation-curb-crime/

Film & television

Indonesia film industry: So many films, such small audiences

Jakarta Post - July 26, 2015

Yuliasri Perdani, Jakarta – Film producer Ody Mulya Hidayat had no reservations about paying Rp 1.5 billion (US$112,880) to buy the film rights to Bulan Terbelah di Langit Amerika (Split Moon in the American Sky), a novel written by Hanum Salsabiela Rais and her husband Rangga Almahendra.

The film adaptation of the best-selling novel was his way to shine in the current fierce climate of the film industry; where an increasing number of films are competing to win over a slowly dwindling audience for local movies.

"This is my gamble. In the film industry, we must dare," Ody, who has produced over 40 films under the flag of Maxima Pictures, said after a film discussion in Jakarta recently. "If not, you will only get 200,000 viewers or below, as has happened to many films nowadays," he added.

In recent years, Indonesians have become less interested in watching local movies at the cinema.

During the film industry's heyday in the year 2010, 74 Indonesian movies attracted 16.8 million viewers in total, according to data compiled by the Association of Indonesian Theatre Owners (GBPI).

In 2014, the number of local films that made it into theaters rose significantly to 113. That the annual total of 15.2 million cinema viewers has not increased significantly since four years ago is where the problem lies.

Between 2006 and 2010, 17 Indonesian films achieved one million viewers and above. Inspiring children's film Laskar Pelangi (The Rainbow Troops) and Islamic drama Ayat-Ayat Cinta (Verses of Love) – both adaptations from best-selling novels – topped the list with 4.5 and 3.5 million viewers, respectively.

The worrying trend started in 2011, when the Motion Picture Association of America (MPAA) pulled out all Hollywood films from Indonesian cinemas in protest of the government's decision to impose a levy on imported films.

The boycott that lasted for several months forced local theaters to show sub-par b-grade movies, Thai horror flicks and more local films. What could have been a great chance for the local film industry to reach a larger audience was instead a disappointment.

During that year, Indonesia films attracted only 12.2 viewers, before slightly bouncing back with 15.7 million viewers in 2012.

"In 2011, people's interest in going to the cinema went down. Too many poorly produced films made it into the cinema. This lowers the audience's trust in [the quality of] Indonesian films," Ody said.

Fresh film producers came in, hoping to make startling critical and commercial successes.

Some producers – both old and new – were not that ambitious. They cut corners and followed the trends, producing films with awfully low budgets, the director of Indonesia's largest exhibitor 21 Cineplex, Rudi Anitio, suggested.

"In these past three years, producers can reap profits in spite of a decreasing number of viewers. Some abuse this market condition. They make films with a budget as low as possible in the hope of still making profits despite small audiences," he said.

Generally, the production costs of an Indonesia film is above Rp 1 billion – some even reach Rp 25 billion. Nowadays, more and more movies are produced with a budget of few hundred million rupiah.

The trend continued in 2014, where 113 Indonesian films were shown at cinemas. Only comedy Comic 8 and much-anticipated action flick The Raid 2 gained a million viewers each. Twenty-five films gained less than 10,000 viewers, Rudi said.

"It is common for me to see a film that has no audience at the first and second screening times on its opening day, and 12 viewers at the third. It's just sad," Rudi said.

Extending the screening days of such films will not make any difference, he said. "The film may gain only 30 to 40 viewers a day. That is nothing compared to the loss experienced by audiences, who are disappointed by the film and have limited movie choices [as the screening of a new movie is delayed to give space for the film]," Rudi added.

Film producers used to rely on selling the film's airing rights to television channels after it left theaters. It's not the same anymore, Ody said.

"Television channels broke new ground by producing their own films [FTV]. We used to get Rp 2 billion from the airing rights, now we can only get a quarter of it," the producer said.

Producers are now shifting their focus to market films abroad and sell them as in-flight entertainment.

To thrive in this fiercely competitive environment, Ody utilizes a few formulas when creating films. First, a film adaptation of a best-selling novel has a higher probability of success compared to those of original stories.

Ody proved this first-hand with 99 Cahaya di Langit Eropa (Ninety-nine Lights in European Sky), an Islamic film based on the novel about religious tension observed by Hanum and Rangga during their stay in Europe.

To capitalize further on the novel, Ody divided it into two films. The first film was the second-highest grossing film of 2013 with 1.1 million viewers, and the second film attracted 500,000.

The films also secured some product placement, including a Muslim clothing line, the sales of which quintupled following the films' release, Ody claimed.

With that scale of those films' successes, Ody was willing to spend more on Bulan Terbelah di Langit Amerika, which centers on a Muslim couple in the aftermath of the 9/11 attacks.

He doubled the salaries of its main actors, Acha Septriasa and Abimana Aryasatya, and purchased the film rights of the novel for Rp 1.5 billion – almost seven times the payment for the film rights of 99 Cahaya di Langit Eropa.

"Sponsors will fight for spots [in Bulan Terbelah di Langit Amerika] and the product placement will cover 25 percent of the production cost. If I wasn't sure of this, I wouldn't dare to do it."

Ody's Maxima Pictures initiated small-scale research to better judge current audience tastes. One particular finding is quite intriguing – only few local languages can lure Indonesian audiences to the cinema.

"When it comes to a local language as the dominant one used in a film's dialogue, only Betawi and languages from Java Island are accepted by general audiences."

The exception is Nagabonar Jadi 2, a drama centering on a Batak father and son that attracted 1.2 million viewers in 2007.

The competitive industry poses more challenges to young and relatively inexperienced producers.

Last year, at the age of 24, Gandhi Fernando entered the Indonesian film business. Gandhi, who studied film direction at New York Film Academy, started his career with three films; drama the Right One, Pizzaman and horror film, Tuyul Part 1.

Having experience acting in several FTVs, Gandhi took a leading role in the films and invited some of his actor friends to join in.

He has knowledge, a production team and actors. He lacks just one thing: connections.

"We need connections to have the film screened with the right timing. Many producers have built relationships for dozens of years [with exhibitors] and have a proven track record. I don't have that."

He also lamented the allocation of so few screens for his film on its opening day.

"Fewer screens mean a smaller audience. The film Tuyul, with 50 screens drew 37,000 viewers in the first four day of screening. While Tjokroaminoto, with 100 screens, drew 43,000," the young producer said.

"If with half the number of screens we can get a similarly sized audience to that of Tjokroaminoto, is that fair?"

From his three movies that have been released so far, only with Tuyul has he broken even.

The stagnant market and allegedly unfair competition have not discouraged Gandhi. He is now in the process of producing three new films, including the second and third installment of the Tuyul trilogy.

"I took a plunge into this industry, and it is hard to get out from it. We already have three movies; we have no choice but keep on going," Gandhi said.

"We shouldn't just sit and wait for the films to hit the theaters. We must make another one, keep on rolling," he added.

As of early June, Indonesia had 1,002 screens in 193 theaters across the country, with 21 Cineplex holding the majority – 780 screens in 146 theaters. With a national population of around 250 million people, each screen should accommodate 249,000 people. This represents a stark difference with Malaysia or Japan, where each screen caters to between 39,000 to 40,000 people.

In March, President Joko "Jokowi" Widodo said that Indonesia ideally needs to have between 5,000 and 6,000 screens. The country is predicted to have 2,000 screens as of 2018, mainly supported by the expansion of two theater companies; Blitzmegaplex and Cinemaxx.

Source: http://www.thejakartapost.com/news/2015/07/26/indonesia-film-industry-so-many-films-such-small-audiences.html

Armed forces & defense

TNI Chief: Energy, food, water will be main security challenges

Jakarta Globe - July 30, 2015

Jakarta – As the growing world population will need more energy, food and water, future conflict is likely to shift to countries rich in such resources, the chief of the Indonesian Military (TNI) says, stressing the need for the nation's security forces to adapt.

TNI Commander Gen. Gatot Nurmantyo, speaking during a graduation ceremony for military and police officers at the Police Academy in Semarang, Central Java, on Tuesday, said non-traditional threats – for instance in the field of cyber security – will also increase and become more complex.

"At the moment, over 70 percent of conflicts around the world are related to the scramble for fossil fuels, but in the future conflicts will be related to bio energy, food and water," Gatot said.

"Currently global conflicts are centered on the Middle East... but in the future conflicts will spread to natural-resource rich countries along the equator, including Indonesia. This will be a real threat to the Unitary State of the Republic of Indonesia [NKRI]."

Also in Semarang, on Thursday, President Joko Widodo called on officers taking the oath to raise their level of professionalism and be aware that Indonesian society is more open nowadays and more critical of what is going on within the security forces. "Traditions that are not appropriate should be abandoned," Joko said, without mentioning any specific practices. "Train your subordinates, raise the level of professionalism so that you will be great leaders."

"Society's expectations are becoming higher and the media are getting stronger. Reflect on this and deal with this challenge – young officers need to adapt."

Gatot, who was installed as TNI commander earlier this month, on Tuesday called on the graduating officers to lead by example and pay close attention to the welfare of subordinates, but also to always keep in mind the image of the military and police forces.

"The TNI and the National Police are part of the [same] government, so the TNI and the National Police have to support and reinforce each other," the general said. "Officers of the TNI and the National Police have to be able, together with the people, to safeguard and preserve [social] cohesion amid the diversity of Indonesia."

Military and police personnel have in the recent past been involved in various clashes in different parts of the country, ranging from deadly bar fights to outright turf wars.

Apart from overcoming military-police rivalry and infighting, the new TNI commander also faces the challenge of aging materiel in various branches of the armed forces.

A 50-year-old Hercules transport plane of the Indonesian Air Force crashed shortly after takeoff in Medan, North Sumatra, on June 30, killing all 121 on board and 22 people on the ground. The military has maintained that the aircraft was fit to fly, but Defense Minister Ryamizard Ryacudu has since announced that all military aircraft over 30 years old will be retired.

Major rotation

Prior to the graduation ceremony, Gatot oversaw a major rotation in the TNI affecting up to 84 senior military officials.

Among those affected are Jakarta Military commander Maj. Gen. Agus Sutomo, who is now appointed the head of the Army's Education and Training Command, and Army Special Force (Kopassus) commander Maj. Gen. Doni Munardo, who will be sent to Maluku to lead the local military command.

TNI spokesman Mochamad Fuad Basya denies speculation that the rotation is intended to wipe out loyalists of former president Susilo Bambang Yudhoyono from strategic positions in the military.

Agus and Doni are known to be close to Yudhoyono, himself a former Army general, having each served as the commander of the presidential guards, or Paspampres, during Yudhoyono's decade in office.

Fuad said Agus was promoted with his new Army school assignment – from a two-star general to a three-star lieutenant general.

"The current TNI commander also once served in the position. So this is not dumping him. He should be very happy because he has been promoted to three stars," Fuad said. The same thing goes with Doni, who has been promoted from one-star to two-star general.

"A position as the chief of a [provincial] military command will smooth his way to climb to the next level. After serving as provincial military commanders, he'll have a big opportunity to be promoted to three stars. And TNI soldiers must be prepared to be assigned anywhere," Fuad added.

Brig. Gen. Muhammad Herindra is replacing Doni as the Kopassus chief. It remains unclear, however, as to who will serve as the new Jakarta Military commander. Speculations have arisen that the position is prepared for the current presidential guard commander, Maj. Gen. Andika Perkasa, also a son-in-law of former National Intelligence Agency (BIN) chief A. M. Hendropriyono – an aide of President Joko.

"[We'll have Agus'] replacement in August. One month will be the latest; it can be sooner," Fuad said.

Source: http://thejakartaglobe.beritasatu.com/news/tni-chief-energy-food-water-will-main-security-challenges/

SBY loyalists demoted in TNI shake-up

Jakarta Post - July 28, 2015

Nani Afrida, Jakarta – In a major overhaul of key military positions, three Army generals who used to serve as security chiefs and an adjutant to then president Susilo Bambang Yudhoyono have been assigned to less prestigious jobs.

The military (TNI) announced on Monday that Army deputy chief of staff Lt. Gen. Muhammad Munir, 56, would serve as a high-ranking officer at the TNI headquarters without any commanding position for the remaining two years prior to his retirement.

The chief of the Military Intelligence Division (BAIS), Maj. Gen. Erwin Syafitri, is set to replace Munir. Munir, who served as Yudhoyono's adjutant between 2009 and 2010, is among 84 high-ranking officers assigned to new positions by newly appointed TNI Commander Gen. Gatot Nurmantyo.

Chief of the Army's Special Force (Kopassus) Maj. Gen. Doni Monardo, 52, who only assumed the job late last year, has been assigned to lead the Pattimura Military Command, which oversees the backwater provinces of Maluku and North Maluku.

Reform-minded Doni, who is striving to insert a humane touch to the special force that is notorious for extra-judicial killings and kidnapping, served as Yudhoyono's embedded Presidential Security Details (Paspampres) officer between 2008 and 2010. He served as Paspampres commander from 2012 until 2014 when Yudhoyono was succeeded by President Joko "Jokowi" Widodo on Oct. 20.

Doni's appointment to the Pattimura Command came less than three days after he was widely tipped to lead the prestigious Jakarta Command. While the reasons behind the reversal remain unclear, several legislators have tipped Paspamres commander Maj. Gen. Andika Perkasa as the strongest candidate for the job.

Andika is the son-in-law of former State Intelligence Agency (BIN) chief Hendropriyono, the confidant of Jokowi's patron, chairwoman of the Indonesian Democratic Party of Struggle (PDI-P) Megawati Soekarnoputri.

Andika's appointment as Paspamres commander in late 2014 has drawn many critics as he is widely seen as not being qualified for the job after having spent most of his military career studying overseas.

The next holder of the Jakarta Command position itself remains undecided after the TNI reassigned its incumbent, Maj. Gen. Agus Sutomo, 54, also a former Paspampres commander during Yudhoyono's administration.

Although Agus will be promoted to three-star general, he will be assigned to lead the TNI's education, training and doctrine command (Kodiklat), a position deemed less prestigious compared to territorial commands, such as that of Jakarta.

TNI spokesperson Maj. Gen. Fuad Basya said that the rotation was a normal procedure in the military institution and the officials should be ready. "Good soldiers must be ready for any situation and good soldiers should know areas in Indonesia better than anybody else. We will create more synergy and a more effective military institution in the future," Fuad said.

He rejected allegations suggesting that the shake-up would kill the careers of several officials, as they must serve in their new positions quite far from Jakarta after having previously occupied strategic positions.

"Even though an official must serve in areas far from Jakarta, he still has opportunity to get a promotion. We give the same treatment to all officials," Fuad said.

Military expert Mufti Makarim of the Institute for Defense and Peace Studies (IDPS) said that the rotation was a regular occurrence, as many of middle-rank officers need to be promoted.

"We can see whether there is a political interest or not after several months when the officers can show their achievements," Mufti said.

Source: http://www.thejakartapost.com/news/2015/07/28/sby-loyalists-demoted-tni-shake.html

Mining & energy

Freeport gets nod to renew export permit, pays lower duty

Jakarta Post - July 28, 2015

Raras Cahyafitri, Jakarta – Giant gold and copper miner PT Freeport Indonesia has received certainty from the Energy and Mineral Resources Ministry that its export permit, which ended last week, will be extended.

The ministry's director general for minerals and coal, Bambang Gatot Ariyono, said on Monday evening that his office would soon issue a recommendation that the Trade Ministry renew Freeport's export permit.

The mining giant will also be allowed to pay lower export duty thanks to encouraging progress in the construction of the its smelting plant.

"Principally, the company has fulfilled its obligation, its commitment. Therefore, tomorrow, the government can issue a [export permit] recommendation for the next six months," Bambang said.

Under the recommendation, Freeport Indonesia will be allowed to export up to 775,000 tons of copper concentrate in the next six months.

Freeport Indonesia, a subsidiary of US-based Freeport-McMoRan Inc., saw its export permit expire last Saturday. The company currently produces approximately 2.5 million tons of copper concentrate per year.

The export permit is necessary for the company to continue shipping its partly processed copper concentrate despite the government's implementation of a ban on raw mineral exports in January 2014. Due to a loosening of the export ban, export permit's for raw minerals is now possible as long as the company in question shows commitment to making progress on smelter developments and they pay export tax.

The export tax is set at between 0 and 7.5 percent, depending on the progress of smelter development, which is calculated based on the amount of money spent. An export tax of 7.5 percent is imposed on companies whose disbursement is at 0 to 7.5 percent of their total investment in downstream facilities. A 5 percent export duty is applied to a company whose spending is at between 7.5 and 30 percent.

When smelter development spending has progressed past 30 percent, a company is then exempt from export duty.

Bambang said that Freeport Indonesia's smelter plant had reached about 11 percent, so it would only pay 5 percent in export tax on its copper concentrate for the next six months. Under its previous two export permits, the company paid 7.5 percent in export duty.

The 11 percent progress consists of spending on basic engineering, land rent and a deposit of US$20 million into an escrow account to be paid by Tuesday, according to Bambang.

To comply with the government downstream policy requirements, Freeport Indonesia is currently working to develop a new smelter in Gresik, East Java, with an estimated investment of $2.3 billion.

Freeport Indonesia executive vice president for public affairs Clementino Lamury said his company expected to be able to ship its copper concentrate under the new permit soon. "We hope to export it by the end of the week," he said.

While the export permit will be extended, Freeport Indonesia is currently under the spotlight following its attempt to seek certainty over its operation after the termination of its contract in 2021. Critics have argued that its poor progress in smelter development was also driven by uncertainty regarding its operation after 2021.

It has also drawn criticism following a series of deadly incidents at its mining site in Papua. On Saturday, an employee of theirs died while working with conveyor facilities. Investigation by the ministry's mineral and coal office is currently taking place to reveal the details and causes of the incident.

Source: http://www.thejakartapost.com/news/2015/07/28/freeport-gets-nod-renew-export-permit-pays-lower-duty.html

Government delays plan to raise coal royalties amid plunging price

Jakarta Post - July 27, 2015

Grace D. Amianti, Jakarta – The government will postpone a plan to increase royalty payments from coal miners as they are already burdened with the commodity's plunging price, a top official has said.

The decision was based a government review in which it found that the low global coal price had prompted ongoing losses for coal miners in Indonesia, one of world's major producers of the commodity.

"The government decided to review the plan based on the current situation and price," Energy and Mineral Resources Ministry's director general for mineral and coal, Bambang Gatot Ariyono, said last week.

Coal price reference (HBA) for 6,322 kcal/kal coal stood at US$59.19 per ton for July, down from around $63 per ton at the beginning of the year and half the price it was four years ago, over $127 per ton.

Bambang said the government had acknowledged that the current coal price slump was caused by weak local and global demand as Indonesia and countries that import the commodity faced weaker economic growth.

Prices at the Newcastle Port of Australia, which is the world's benchmark for thermal coal, was at around $61 per ton at the end of June, also half of what it was in 2011.

The Energy and Mineral Resources Ministry's proposal for the plan to the Finance Ministry's Fiscal Policy Office (BKF) will also be delayed, according to Bambang.

The ministry's initial proposal was to increase royalty payments for all coal types to the range of 7 to 13.5 percent, an increase from the current level of 3 percent for low-calorie coal, 5 percent for the medium-calorie type and 7 percent for high calorie, as stipulated in a 2012 regulation.

The plan was based on the ministry's assessment that the current level would unlikely help the mineral and coal office meet its non-tax revenue (PNBP) target this year of Rp 52.5 trillion (US$3.91 billion).

The revenue target from the coal sector was calculated based on the ministry's coal output target this year to 455 million tons – higher than the initial aim of 425 million tons – to offset the ongoing decline in the commodity's price.

From last year's total output of 458 million tons, the mineral and coal office collected Rp 35.4 trillion in royalties from the holders of mineral and coal mining permits and contracts of work.

Indonesia's coal production stood at 202.7 million tons in the first six months of the year, a 17.4 percent drop compared to 245.5 million tons in the same period last year, according to the office's data.

Industry players have rejected the plan to increase the royalty payments as it would be too burdensome for their businesses, which have been under pressure because of the decline in coal prices.

"It is not the right time to impose the plan as some coal miners are planning to decrease production," said Pandu Sjahrir, chairman of the Indonesian Coal Mining Association (APBI), as quoted by kontan.co.id.

To maximize state revenue collection from the coal sector, the mineral and coal office has been working with the Corruption Eradication Commission (KPK) to ensure that all mining companies have fulfilled their obligations to the state, including paying royalties. The KPK found last year that numerous miners had not paid their royalties.

Source: http://www.thejakartapost.com/news/2015/07/27/govt-delays-plan-raise-coal-royalties-amid-plunging-price.html

Insight: Determine gold output ahead of Freeport deal

Jakarta Post - July 27, 2015

Greg Poulgrain, Brisbane, Australia – One main issue is still to be resolved in the hard bargaining by Freeport Indonesia regarding its contract of work. Agreements have already been reached to enhance share divestment, increase the royalties and build a new smelter, despite the temporary delay over the location. A deadline is approaching and anxious hands on both sides of the table are keen to conclude a deal.

Freeport wants a new contract of work now, rather than in 2019 when it was due to be negotiated. Investment security for an expansion of mining operations is given as the reason. The deal will cover mining operations up to 2055. Although described as a "victory for Indonesia", the main issue is still absent from discussion so there is an urgent need to review what Freeport is actually doing.

PT Freeport has said it plans to spend about US$17 billion expanding underground mining at Grasberg in the province of Papua before 2021. Annual turnover is now calculated in tens of billions of dollars, and Freeport's contribution for tax revenue for the government of Indonesia is regarded as massive and most welcome.

Already Grasberg is a vast underground mining complex spreading in different directions. At least two of these huge underground operations are devoted entirely to gold mining. Expanding these and starting others is the main aim of the proposed development. Copper is not the main goal yet many descriptions of the Freeport mine still state it is "a copper mine with some gold".

The Grasberg is unprecedented – the world's largest primary deposit of gold. It is so large that Freeport have relinquished other sites in Papua where there were other significant gold deposits. A few years after the Grasberg came into production in 1989, one Freeport vice president told me its potential looked so large it could involve 200 years of mining.

The Grasberg was first discovered in 1936 by the Dutch geologist, Jean Jacques Dozy. He was the person who gave it the name, Grasberg, at the same time as he named the Ertsberg. They were two kilometers apart, at either end of a once-peaceful meadow just below the snow and glaciers in the Papuan highlands.

After Freeport used helicopters to test-drill both sites in the early 1960s, Grasberg lay waiting to be mined. A mountainous outcrop of copper and gold before mining began in 1972, the Ertsberg was transformed into a gigantic hole in the ground. By 1987, when Freeport was ready to start mining the Grasberg, its potential was "discovered" and mining began two years later. The deal which Freeport concluded at that time did not benefit Indonesia as it should have.

The main issue is gold. This vast primary deposit was never mentioned in the 1960s during the anti colonial campaign to reclaim Netherlands New Guinea as part of Indonesia. Neither then president Sukarno nor Kennedy was aware of the gold deposit in the territory or how it was influencing political decisions behind the scenes.

However, former Dutch foreign minister, Joseph Luns, whom I interviewed July 15 on 1982, when he was NATO secretary-general, was well aware of the gold in New Guinea. He stated that he had proposed a joint-operation with the Americans (in those days, the Rockefeller company was known as Freeport Sulphur) but the answer was negative.

American determination to claim sole access to the gold took effect when Soeharto came to power. In the same way that I gained a better understanding by speaking with Jean Jacques Dozy (in his home in the Netherlands) I would suggest that Indonesian government officials involved in current negotiations ask Freeport to clarify certain points.

For example, during 15 years of mining, the Ertsberg gold concentration was stated to be around 2 grams/ton yet the concentration in official Dutch reports and confirmed during the interview with Dozy was 15 grams/ton. This discrepancy needs to be included in current negotiations between Freeport and the Indonesian government. The Ertsberg and the Grasberg, it should be stated, have geologically developed from the same subterranean source.

An article in Indonesian media last week suggested the construction of a local smelter was one way to detect the difference between official and unofficial Freeport gold production. Those involved in negotiating on behalf of the Indonesian government should ascertain actual current gold output from the Grasberg. The gold concentration included in the copper- slurry, which is then refined in a smelter (in Indonesia or overseas), will show approximately the same level that has been stated year after year. This is because gold is removed before the slurry is pumped down the pipeline to the coast for export.

The gold that is extracted is then converted into small ingots. A Timika- based Freeport security official told me that the gold, in this form, is transported by vehicle to the Timika airport where it is loaded into a private plane then flown overseas. This occurred during the lifetime of the Ertsberg mine and has continued with the Grasberg. Government requirements for a smelter will bring some financial benefit, of course, but not address the main issue, so the hard bargaining remains to be done.

[The writer teaches Indonesian history at the University of the Sunshine Coast, Brisbane. He wrote The Incubus of Intervention: Conflicting Indonesia Strategies of John F. Kennedy and Allen Dulles.]

Source: http://www.thejakartapost.com/news/2015/07/27/insight-determine-gold-output-ahead-freeport-deal.html

Freeport set on continuing talks with govt after missing permit deadline

Globe Asia - July 26, 2015

Retno Ayuningtyas & Dion Bisara, Jakarta – Freeport Indonesia, the local unit of US mining giant Freeport McMoRan, remains hopeful to secure an export permit from the government after missing Saturday's deadline. The speed bump effectively halted the company's exports, putting its mining production at risk.

"There's is no definite cancellation yet," Freeport Indonesia spokesman Riza Pratama said last Monday. "We are still discussing the matter with the government. Hopefully, we can reach a deal in the near future."

Freeport Indoneisa last week submitted a request to export 575,000 tons of copper concentrate from its Grassberg mine in Papua for the next six months. Under previous permits, the company was allowed to export 756,000 metric tons of concentrate from January through July 2014 and 580,000 metric tons of concentrate in the same period this year.

The government had previously instructed the miner to build a smelter in the country, promising to grant export permits based on progress the company makes in the plant's construction.

Bambang Gatot Ariyono, coal and mineral director general at the Energy and Mineral Resources Ministry, said Freeport has yet to complete 60 percent of the smelter and spend the corresponding budget.

"So, we cannot grant the permit, and [Freeport Indonesia's] exports will stop [on Jul. 25]," Bambang said. Still, both parties are scheduled to continue talks on Monday, giving the company as much time as it needs to fulfill its obligation, Bambang added.

Source: http://thejakartaglobe.beritasatu.com/business/freeport-indonesia-set-continuing-talks-govt-missing-permit-deadline/

Freeport stock sinks as Indonesian copper mine uncertainty rattles market

Reuters - July 25, 2015

Susan Taylor, Bernadette Christina & Fergus Jensen, Toronto/Jakarta – Shares of diversified miner and energy producer Freeport-McMoRan sank for a second session on Friday, as uncertainty around Indonesian mining contracts added to worries about spending plans, high debt and falling commodity prices.

The Phoenix, Arizona-based company has assured analysts it fully expects the Indonesian government to issue a six-month export renewal on Saturday, when the current permit expires.

According to the Indonesian government, however, the firm still needs to show its commitment to building a second copper smelting facility by setting aside an estimated $80 million into an escrow account.

"They haven't completed the terms," Coal and Minerals director general Bambang Gatot told reporters late on Friday, adding that his next meeting with executives is on Monday. It was not immediately clear if Freeport's exports would be stopped. "It depends what happens in the field," Gatot said. "The port may still allow them."

Questions also remain surrounding its longer-term contract. Freeport's stock tumbled 10 percent to $12.27 on New York on Friday, after a 9 percent drop Thursday, as several analysts cut price targets.

Over the past two days, Freeport's market capitalization has shed some $2.9 billion, dropping to $12.75 billion on Friday afternoon from $15.66 billion at the close Wednesday.

Freeport, whose chairman is currently in Indonesia for talks with the government, is also negotiating terms of a contract or license that could extend to 2041.

Contract certainty is crucial, Freeport said, because it will spend $15 billion on an underground expansion at its massive Grasberg copper and gold mine, and must commit to a new smelter, estimated at $2 billion-$2.5 billion.

"Right now, more than 75 percent of our reserves are going to be produced after 2021," Freeport Chief Executive Richard Adkerson said on a conference call Thursday.

A current contract of work expires in 2021, but by law in Indonesia they cannot extend this contract until 2019 at the soonest. Freeport is looking to raise funds as it eyes a $1.2 billion to $1.6 billion investment to boost energy production.

Analysts worry there may be a weak appetite for a planned initial public offering of up to 20 percent of Freeport's oil and gas business this autumn.

All options are on the table, said Freeport, which will consider asset sales, but does not favor an equity raise. "None of us want to issue equity at these levels," Adkerson said.

Charles Bradford, president of investment research firm Bradford Research, said the sell-off in Freeport shares was overdone. Freeport's second- quarter profit beat expectations and costs were lower than he expected.

Bradford recently purchased a small number of Freeport shares due to price declines. "In my opinion, you buy when you have to hold your nose," he said.

Source: http://thejakartaglobe.beritasatu.com/featured-2/freeport-stock-sinks-indonesian-copper-mine-uncertainty-rattles-market/

Economy & investment

Company profits take a battering

Jakarta Post - July 31, 2015

Jakarta – A host of benchmark publicly listed companies suffered double- digit plunges in first-half net profits, something unseen since 2008, as weak domestic consumption and low commodity prices linger.

Diversified group PT Astra International, state-run Bank Negara Indonesia (BNI), state toll road operator PT Jasa Marga, high-end supermarket operator PT Supra Boga Lestari, state-owned cement producer PT Semen Gresik and precast concrete firm PT Wika Beton, to name a few, all posted profit drops of more than 15 percent.

Astra, whose car and motorcycle business serves as a benchmark for public purchasing power, and whose plantation and mining business is an indicator of commodity demand, booked an 18 percent drop in its bottom line.

"Astra's earnings in the first half were lower in the face of reduced domestic consumption, competition in the car sector and lower commodity prices in Indonesia," president director Prijono Sugiarto said on Thursday.

BNI's books support Prijono's diagnosis, the bank suffering a 50.8 percent drop in profits between January and June this year.

The country's fourth-largest lender allocated hefty provisions to anticipate non-performing loans (NPL), particularly among small businesses engaged in trading and medium-size firms, particularly in manufacturing.

"Demand has slowed, and thus firms have difficulties paying their debts," said BNI president director Achmad Baiquni.

BNI's peers, state-run Bank Mandiri, Indonesia's largest, and Bank Central Asia, the third-biggest, reaped meager 3 percent and 8.8 percent increases in profits, respectively, from the usual double-digit gains.

High-income consumers are apparently not exempt from the slow demand, with the profits of Supra Boga, which operates high-end grocery stores Ranch Market, Farmers Market and Ministop falling 34 percent.

Jasa Marga meanwhile booked a rare 40 percent drop in profit as growth in the inflow of vehicles could not outpace surging costs from higher interest rates after heavy expansion in new road projects.

"We still expect higher traffic in the second half, with daily traffic to reach 3.76 million vehicles full year, translating into modest 5 percent growth," said Joko Sogie from Danareksa Sekuritas.

Heavily dependent on consumption, Indonesia posted 4.7 percent economic growth in the first quarter of the year, the lowest in six years, with many analysts predicting a similar figure for the second quarter.

Second and third quarter growth is expected to hinge on government spending given the fading power of private consumption and exports to boost growth. However, disbursement of government money on infrastructure projects continues to dawdle, as evident in weak demand for cement and concrete.

Semen Gresik, the main supplier of cement for government projects, suffered an unusual 20.6 percent drop in profits, while those of Wika Beton, the main supplier of concrete, plunged 68 percent.

Optimism abounds, though, that the government will finally start spending in the third quarter of the year to help kick-start the economy through infrastructure development.

"The only source of growth during this slowdown is government spending. I believe it will start to kick in in the third quarter," said Bank Danamon chief economist Anton Hendranata.

First-half earnings, Anton said, suggested the economy had reached a nadir from which it could rebound in the fourth quarter.

However, the government's ability to spend has been brought into question after tax collection in the first half reached less than 38 percent of the year's target. Tax revenues account for more than 70 percent of state income.

According to Danareksa Research Institute's Kahlil Rowter, things will not worsen in the coming quarters, despite the lack of signs of recovery in the manufacturing, plantation and mining sectors.

Government spending, Kahlil said, would create demand in the second half. "[The situation] has reached rock bottom. I don't think it will get any worse." (saf/fsu)

Source: http://www.thejakartapost.com/news/2015/07/31/company-profits-take-a-battering.html

Investment up despite slowdown

Jakarta Post - July 28, 2015

Grace D. Amianti, Jakarta – Realized investments showed a significant increase in the first half of this year as foreign direct investment (FDI) continued flowing into the country's despite the global economic slowdown, according to the government's latest investment figures.

Realized investment both from local and foreign investors rose by 16.6 percent to Rp 259.7 trillion (US$19.2 billion) year-on-year (yoy) in the first six months of this year amid no sign of an imminent recovery in the global economy, the Investment Coordinating Board (BKPM) reported on Monday.

"With this result, we are convinced that total realized investment could reach Rp 530 trillion by the end of the year or almost Rp 11 trillion above the initial target of Rp 519.5 trillion," BKPM head Franky Sibarani said in a press conference.

Of the total realized investment in the first half, FDI accounted for Rp 174.2 trillion, or 67 percent of the total, while domestic direct investment (DDI) stood at Rp 85.5 trillion, according to the board's data.

The data shows that FDI grew 16.1 percent yoy, while DDI rose 17.4 percent during the Jan-June period.

In the second quarter of this year alone, Indonesia saw Rp 135.1 trillion in realized investment, 16.3 percent higher on a yoy basis, and a 8.4 percent rise quarter-on-quarter (qoq).

In the second quarter, FDI rose 12.3 percent qoq to Rp 92.2 trillion while DDI grew only 0.9 percent to Rp 42.9 trillion, the data revealed.

Franky said the investment board was quite optimistic about exceeding this year's target because the realization rate of new investments was usually higher in the second half.

The data shows that the shares of new FDI and DDI in the first half accounted for 82.5 percent and 62.3 percent, respectively, of the total realized investment during the period.

Franky added that the realized new FDI and DDI during the Jan-June period was also higher compared to the average realized new FDI and DDI between 2010 and 2015, which reached 61 percent and 58.4 percent, respectively.

"Slower economic growth is supposed to reduce investments, but the facts have shown a different story. These results make us optimistic that investments will continue to grow despite the downturn," Franky said.

The data also shows that between January and June this year, Malaysia, Singapore and Japan stood out as the three biggest FDI contributors in Indonesia, with their combined realized investments in the country reaching $6.5 billion.

Azhar said Malaysia and Japan were Indonesia's two biggest foreign investors that were starting to widen their scope of investment, pointing out that "Japan remains focused on the automotive and electronics-related sectors, but starting to enter the food industry, while Malaysia is eyeing infrastructure besides focusing on telecommunications and agro-based industry."

Gadjah Mada University economist Tony Prasetiantono said the positive investment data had brought a "relief" amid the economic downturn, with the country's Gross Domestic Product (GDP) still in with a chance of growing by more than 5 percent, perhaps by around 5.1-5.2 percent.

"Despite its lackluster economic growth, Indonesia remains attractive for FDI, because the sharp depreciation of the rupiah has helped to make investment in the country more affordable. President Joko Widodo's aggressive boost in infrastructure will attract more foreign investors," Tony told The Jakarta Post.

Bank Central Asia (BCA) economist David Sumual echoed Tony's view that the improved investment data should be a positive signal for the government to start combating the country's downward cycle by boosting its spending, especially on infrastructure.

"We saw high investment growth of 10.5 percent to the GDP in 2011, but then it slowed down to below 4 percent last year and is currently stagnant at 4.4 percent. We need to see at least 7 percent investment growth in the second half of this year if we want to achieve 5 percent GDP growth for the year," David said.

Source: http://www.thejakartapost.com/news/2015/07/28/investment-despite-slowdown.html

Indonesia floats port expansion to boost faltering economy

Agence France Presse - July 26, 2015

Sam Reeves, Jakarta – Container ships dot the horizon off the coast of Jakarta, as cranes and laborers work on an ambitious, economy-boosting project to expand the port network in the world's largest archipelago nation.

New Priok will be Indonesia's biggest port once completed, and is one of 24 ports planned to overhaul maritime connections in Southeast Asia's top economy, which comprises more than 17,000 islands.

President Joko Widodo is leading efforts to improve dilapidated maritime infrastructure in a country where ships face lengthy delays before berthing and goods can get stuck for days as they run a gauntlet of government agency checks.

"This is no longer a wish, but a necessity," Widodo recently said of improving ports after Indonesian growth hit a six-year low of 4.7 percent in the first quarter, a blow for a leader who won power on a pledge to revive the economy.

The port plan is part of a broader scheme to improve infrastructure, from potholed roads to creaking train lines, as the country seeks to lure foreign investors and pull out of a long slowdown driven by falling prices of its key commodity exports.

Action is urgently needed – Indonesia's infrastructure is so woeful that it is cheaper to transport goods from China to the country's most populous island of Java than to bring them from the Indonesian part of Borneo, which is far closer, according to the World Bank.

Improving ports is particularly critical for a nation that straddles the Indian and Pacific Oceans and is home to important shipping routes. As well as attracting new investment, the scheme could reduce the price of consumer goods through lower transport costs and help develop more remote parts of the archipelago.

Widodo, a former furniture exporter who knows well the problems of the country's ports, is taking a personal interest in the project but it faces formidable challenges. There are growing doubts his administration, which has been criticized over its failure to kickstart major infrastructure projects, will be able to push through the plans due to a lack of organization and a dysfunctional bureaucracy.

On a recent visit to Tanjung Priok port in Jakarta – which handles much of Indonesia's international trade – Widodo's frustration at slow progress was clear when he delivered an angry tirade over the failure to substantially cut the time it takes goods to move through the facility.

The target date to complete all the ports is 2019. But even if the target is met, which seems doubtful given many infrastructure projects in Indonesia suffer delays, experts say this alone will not solve the problem of red tape and graft that slows down processing of goods.

"Building hardware is a critical element in the wider scheme of things," said Jayendu Krishna, a Singapore-based analyst with industry consultancy firm Drewry Maritime Services.

"An equally important element for success will be tackling bureaucracy and corruption, otherwise it might turn out to be much ado about nothing."

Nevertheless, industry players sense renewed momentum under the new president. "I am very optimistic, we've got very strong support from the top," Richard Lino, president director of state-owned port operator Pelindo II, which is developing the New Priok port, told AFP. "There is no reason not to be successful."

The Jakarta project is one of five planned deep-sea ports, which can receive large cargo ships and will be dotted across the archipelago from western Sumatra island to underdeveloped eastern Papua.

Tanjung Priok, currently Indonesia's biggest port, handles 6.5 million containers a year.

To its east, the first stage of New Priok is taking shape, with laborers working on a container terminal, a wide stretch of concrete jutting out into the sea.

Construction of the new port, which consists of two phases, began in 2013 but people involved in the project say it has sped up in recent months. Trial operations are due to begin on the first stage later this year but the entire project is not expected to be completed for some years.

The new port, which will share services with Tanjung Priok and whose first phase alone is expected to cost around US$4.5 billion, will have capacity to handle 12.5 million containers of international freight a year.

Work has already started this year on ports in Kuala Tanjung, North Sumatra, and in Makassar, South Sulawesi.

Despite the optimism, Indonesia faces a long road to catch up with other Asian countries, such as more affluent Malaysia, which has more modern port facilities. "We are still behind our neighbors, that is for sure," said Pelindo II's Lino. "It is a very big challenge."

Source: http://www.thejakartapost.com/news/2015/07/26/indonesia-floats-port-expansion-boost-faltering-economy.html

Import tariff hike applauded

Jakarta Post - July 24, 2015

Linda Yulisman and Grace D. Amianti, Jakarta – Business groups have cheered import duty rises on a wide range of manufactured goods that became effective on Thursday, expressing hope of a boost to domestic industry amid the current economic slowdown.

Indonesian Textile Association (API) chairman Ade Sudrajat said that the tariff increases would be beneficial to the domestic manufacturing industry, allowing fairer competition between locally made and foreign goods. "This may help push up sales of local products amid the ongoing economic downturn," Ade told The Jakarta Post.

As stipulated by Finance Ministry Regulation No. 132/2015 signed on July 8, import duties on consumer goods from processed food to vehicles have increased 30 percent, with exceptions for special products, such as alcoholic drinks, which will see hikes of up to 150 percent.

The arrangement is part of attempts to harmonize tariffs by imposing higher duties on finished products and lesser duties on raw materials and intermediate goods.

In the textile industry, significant production costs caused by higher energy costs and labor wages hinder competition with cheaper imports.

As with producers across a number of business sectors, textile manufacturers have felt the major impact of higher costs and weak demand. Indonesia's economy expanded by only 4.7 percent in the first quarter, the lowest rate in nearly six years.

The textile industry trimmed production by 20 percent in the first quarter of this year and maintained low output through the second quarter, decreasing factory utilization.

Indonesian Food and Beverage Association (GAPMMI) chairman Adhi S. Lukman expressed a similarly positive response to the duty rises, describing the measure as "one step forward" to revise the inharmonious tariff system.

It could also provide leverage to the local food and beverage industry by pushing up sales and encouraging production, thereby lowering costs, he added. "I think with wider use of local products, domestic consumption will pick up and industrial capacity will also expand," he said.

Sharing Ade's expectation, Adhi said that the new policy might help increase sales in the second half of the year after disappointing growth in the first half.

Textiles, food and beverages are among hundreds of products that will be charged higher import duties. Textile products, including T-shirts, used clothes and corsets, will be levied between 22.5 and 35 percent, while food and beverage products, such as processed meat, candy and cookies, will be charged up to 30 percent. Alcoholic drinks will be imposed with duties up to 150 percent.

At present, Southeast Asia's economy places modest duties on foreign goods at an average of 6.8 percent, lower than other emerging economies such as China (9.6 percent), Brazil (13.7 percent) and India (13 percent). It also sets fairly low duties on imported industrial goods at 6.6 percent on average, less than China (8.7 percent), Brazil (14.2 percent) and India (10.1 percent).

While it has embraced advanced tariff liberalization, Indonesia's competitiveness index of 4.38 percent is below countries applying higher import tariffs, such as China (4.9 percent).

The tariff hikes comply with the rules of the World Trade Organization (WTO) and will not affect trading partners that have inked free trade agreements (FTAs) with Indonesia, according to Gusmardi Bustami, a special advisor to the trade minister.

Under its most favored nation (MFN) rule, the global trade governing body allows its members to apply import duties of up to 40 percent on a unilateral basis. Certain products, such as alcoholic drinks, have bound tariff rates up to 150 percent.

"We're just trying to use our policy space. This is not a protectionist policy," he told the Post, adding that the new arrangement would synchronize the inharmonious tariff system and improve the domestic business climate. (saf)

Source: http://www.thejakartapost.com/news/2015/07/24/import-tariff-hike-applauded.html

Import tax on alcohol jumps to 150%

Jakarta Post - July 24, 2015

As of today, import duties on alcoholic drinks are set at 150 percent of their market price, higher than under previous arrangements.

In a regulation issued on July 9, the Finance Ministry stated that any beverages with alcohol content of less than 80 percent, such as brandy, whisky, vodka, gin and rum, will be charged import duties at 150 percent.

"The regulation is effective 14 days after it is issued," a statement from the Finance Ministry says.

Under the previous regulation, import duties were based on volume, at around Rp 125,000 (US$9.31) per liter. Under the current regulation, duties will refer to price value.

For example, a liter of whisky with a market price of Rp 1 million cost 1,125,000 under the previous regulation, while under the new rule, the price will swell to Rp 2.5 million.

The new regulation also targets beverages with alcohol content of between 15 and 25 percent, such as wine. However, import duties for wine are set at a lower rate of 90 percent of market price. (ika)

Source: http://www.thejakartapost.com/news/2015/07/23/import-tax-alcohol-jumps-150.html

Finance & banking

BNI profit plunges, Mandiri maintains earning growth

Jakarta Post - July 31, 2015

Anggi M. Lubis, Jakarta – Indonesia's two state banks Bank Negara Indonesia (BNI) and Bank Mandiri reported lower growth in their net profits in the first semester of this year as the country's economic slowdown hits their corporate borrowers.

BNI recorded Rp 2.43 trillion (US$180.59 million) in net profit from January to June, a 50.8 percent drop from the Rp 4.94 trillion it netted in the same period last year. Unlike BNI, Mandiri still recorded an increase in its net profit, but the rise was lower than that recorded last year.

"The drop in net profit is due to the allocation for loan losses. [...] We see that the slowing economy and depreciation of the rupiah have burdened our debtors," said BNI president director Achmad Baiquni in a press briefing on Thursday.

He added that the bank has raised the provisions for loan losses as part of its prudent approach to anticipate a possible increase in non-performing loans (NPL).

The provision for loan loss coverage ratio against non-performing loans rose to 138.8 percent over the first six months this year from 128.9 percent last year. BNI aims to increase it by 139 percent by the end of the year.

As BNI's lending portfolio rose 12.1 percent from the same period last year with outstanding loans of Rp 288.7 trillion as of the end of June, while gross NPL has also risen to 3 percent from 2.2 percent in the same period last year.

Achmad said that some of the bank's corporate borrowers, both big companies and small and medium-scale enterprises, had faced difficulties to pay their loans as their businesses were also affected by the country's economic slowdown.

Achmad said that the rise in the provisions for loan losses were partly caused by delay in loan payments from oil-related service companies, whose businesses had been hit hard by the fall in oil prices. "The impact is massive. Many oil companies have renegotiated their contracts with their partners. This affects our debtors, so we need to restructure the debts," he said.

Meanwhile, lending in the medium segment, which Achmad said was dominated by the manufacturing sector, posted the steepest NPL increase to 5.4 percent this year, from 2.7 percent last year.

Meanwhile, the country's largest lender by asset, Bank Mandiri, saw its net profits grow at a slower pace than last year despite being able to maintain double-digit growth in its lending and third-party funds, as it decided to take cautious measures amid the economic slowdown.

Mandiri reported that its net profits grew by 3.5 percent to Rp 9.9 trillion ($734 million) year-on-year in the first semester that ended in June this year, amid an increase in the bank's provision for loan losses. The profit growth was far lower than the 15.6 percent it recorded in the same period last year.

Its lending was up by 13.8 percent to Rp 552.8 trillion during the Jan-June period, while third party funds grew year with 17.81 percent to Rp 654.9 trillion. The lending and third-party funds growth rose from 17.8 percent and 10.7 percent, respectively, in the first semester last year.

The publicly-listed lender managed to see its net interest income up by 13.8 percent to Rp 21.2 trillion.

Mandiri fared better in booking lending growth than fellow major lender Bank Central Asia (BCA), which reported its first half report on Wednesday, and state-run BNI Mandiri president director Budi Gunadi Sadiki said rising provisions for loan losses had contributed to lower bottom line growth.

"We allocated our income in the provisions as it is our policy to anticipate crisis amid economic slowdown. We have decided to retain the growth at 3.5 percent because we are more concerned about controlling our NPL [non-performing loans]," Budi said at the conference.

In the first half, the bank reported a slight increase in both its gross and net NPL ratios. While the gross NPL rose to 2 percent from 1.77 percent, the net NPL increased to 0.63 percent from 0.47 percent, according to the lender's documentation. (fsu)

Source: http://www.thejakartapost.com/news/2015/07/31/bni-profit-plunges-mandiri-maintains-earning-growth.html

Jokowi considers turning LPS into superbody

Jakarta Post - July 24, 2015

Satria Sambijantoro, Jakarta – President Joko "Jokowi" Widodo is considering a plan to broaden the authority of the Deposit Insurance Corporation (LPS) and provide its executives with legal indemnity during economic crises.

The President held a closed-door discussion with LPS executives at the State Palace on Thursday, with the meeting also attended by top officials from the Finance Ministry, Bank Indonesia (BI) and the Financial Services Authority (OJK).

The LPS, whose role is to guarantee citizens' deposits in the banking system, wishes to expand into the non-banking sector, meaning that the corporation could guarantee citizens' financial products such as insurance, the President's Communications Team said in a statement distributed after the meeting.

In the meeting with Jokowi, The LPS also suggested that the agency should be authorized to guarantee all deposits in the banking system, regardless of their value, at times of economic crisis.

At the moment, the LPS only guarantees deposits worth less than Rp 2 billion (US$149,009) only. Jokowi also promised that the new Financial System Safety Net (JPSK) bill, expected to be passed as soon as this year, would be designed in a way that could legally protect LPS executives if they impose strategic policies during an economic crisis.

"According to the President, after the JPSK bill is approved, the LPS will have a strong legal backing that will guarantee protection for our banking system and its depositors," the President's Communications Office stated.

The draft of the JPSK bill, a copy of which was recently obtained by The Jakarta Post, contains an article (31) that stipulates that all actions performed by LPS in its management of systematically important banks during a crisis would be "legally legitimate".

In the bill, the clause that relates to legal indemnity refers to LPS only, as the privilege is not granted to other members of the Financial System Stability Committee (KSSK) such as the Finance Ministry, BI, and OJK.

The bill also stated that the government could lend funds to the LPS in times of crisis, paving the way for the corporation to utilize state funds if it bumps into liquidity difficulties during the management of systematically important banks.

"It may not refer to a specific legal impunity [for LPS], but rather legal protection for all policymakers when they perform their duties," LPS chairman Heru Budiargo said at the State Palace, when asked about the JPSK bill.

Formed in 2004, the LPS was designed to increase public confidence in the nation's financial system, with its deposit guarantee scheme designed to prevent banking rush in a tight liquidity environment, such as during the 1997-1998 Asian financial crisis.

In 2008, LPS stood at the center of public controversy when the corporation, under the command of the Finance Ministry and BI in the KSSK, injected a Rp 6.7 trillion ($499 million) bailout to Bank Century and took over its management, with politicians at that time questioning the potential systemic risks posed by the small-sized lender.

Currently facing investigation in the Bank Century bailout case are former vice president Boediono, who acted as BI governor in 2008, and former finance minister Sri Mulyani Indrawati, who acted as the head of KSSK at that time.

"We must admit that the Bank Century case has prompted a kind of trauma for economic policymakers," said LPS commissioner Fauzi Ichsan.

Fauzi argued that a stronger role for the LPS in the economy, supported by a clear step-by-step crisis management protocol, could help tackle future shocks in the economy by promoting a prevention rather than reaction approach.

Source: http://www.thejakartapost.com/news/2015/07/24/jokowi-considers-turning-lps-superbody.html

Analysis & opinion

Stability and stagnation under SBY

New Mandala - July 31, 2015

Edward Aspinall, Marcus Mietzner & Dirk Tomsa, Guest Contributors – Under 'moderating president' Susilo Bambang Yudhoyono, Indonesia's democracy suffered no reverses – but it didn't move forward either.

Much controversy surrounds how best to interpret Susilo Bambang Yudhoyono's 10-year presidency and its legacy for Indonesia and its democracy.

It should not surprise us that assessments of the personal role played by Yudhoyono in Indonesia's stabilisation and transformation have been highly divergent. While controversy is to be expected in assessments of any head of state, they have been unusually polarised in the case of Yudhoyono.

Internationally the president has been lauded as a visionary democratic leader. In 2014, for example, he was feted at UN headquarters in New York and praised by US President Barack Obama for his 'leadership which has succeeded in leading Indonesia toward democratic transition'.

In contrast, large parts of Indonesia's commentariat and the politically engaged public became increasingly disillusioned with the president, especially as the end of his second term neared. The most consistent line of criticism was that Yudhoyono was a peragu – a hesitator or vacillator – who took such care to avoid political controversy that he was rarely able to take decisive policy action.

Our fundamental proposition is that Susilo Bambang Yudhoyono might be thought of first and foremost as a moderating president. By this, we mean more than that Yudhoyono saw himself as politically moderate or centrist, though this was indeed an important part of his philosophy.

More fundamentally, Yudhoyono viewed himself as leading a polity and a society characterised by deep divisions, and he believed that his most important role was to moderate these divisions by mediating between the conflicting forces and interests to which they gave rise.

A fear of political turmoil and a determination to avoid it lay at the heart of Yudhoyono's political philosophy. More than other compromise- wielding politicians in new and advanced democracies, Yudhoyono refrained from advancing his own ideas (if he had them) in a debate – instead, he saw his primary task as being to shepherd through an outcome in which everyone could 'save face'.

In his descriptions of how policy was made under his government, he exhibited visible disdain for conflict but also pride in having routinely neutralised it.

There are many examples of Yudhoyono either failing to intervene decisively on a major issue or backing off from reform after encountering resistance from ministers, political parties, bureaucrats or interest groups.

For example, as highlighted in our new book, The Yudhoyono Presidency, there was the president's remarkable failure, late in his second term, to set a course that would have protected the system of direct elections of local government heads from repeal.

Despite claiming that popular elections had been a high point of democratic performance under his presidency, he allowed members of his own government to develop plans for their abolition, and let his own party connive in a DPR (House of Representatives) decision to replace them with the previous system of indirect elections by local legislatures (a system that was notoriously corrupt).

Typically, Yudhoyono only took action to reverse this outcome when prompted to do so by popular outcry.

A similar example, was the president's reluctance to vigorously defend the KPK (Corruption Eradication Commission) when it came under attack from elements in parliament and the police who were threatened by its anti- corruption drive.

Yudhoyono's love of stability and concomitant reluctance to court conflict led him to position himself not so much as a political leader trying to persuade the elite and the public of his chosen course of action. Rather, he defined himself as Indonesia's main political conciliator.

Hence, while many public figures criticised Yudhoyono for his inability to take strong stands on controversial issues, the president himself saw his predilection for the 'middle way' as a positive attribute. For Yudhoyono, who was acutely aware of the criticisms, it was crucial that an Indonesian president was not only a moderate, but a moderator.

What were the sources of Yudhoyono's obsession with creating balance?

Any student of Indonesia's modern history will immediately recognise strong traces of the political thinking that flourished under the New Order regime. An emphasis on harmony and balance, and an overriding commitment to stability and order were central features of the 'Pancasila ideology' promoted by that regime.

Despite his relatively humble origins, Yudhoyono became an important figure in Suharto's New Order, marrying into an important New Order family and rising to near the top of the military; his experience of the transition from Suharto's rule reinforced his predilection for political order.

All this is not to say Yudhoyono was undemocratic – on the contrary. His commitment to constitutional democracy was another core attribute of his political character. But observing the vestiges of New Order thinking in Yudhoyono's outlook does help us locate him in key respects as a strongly conservative figure who did little to fundamentally challenge the power structures that existed in Indonesia when he came to office in 2004.

Indeed, during an interview we had with him in December 2014, when asked to name the greatest achievement of his presidency, Yudhoyono did not hesitate:

I would mention the consolidation of democracy. I would not say that it's already perfect; we still have to perfect it. But I must say that in 2004 when I began as president, our democracy was not yet fully mature. It was not yet stable, it was not yet strong. At the very least, over the following 10 years we were able to safeguard the transition to democracy so that it experienced no setbacks, no changes of direction. As a result, I can say my successor can now actually further continue this democratic consolidation.

Of course, it is difficult to dispute that Yudhoyono presided over a period of remarkable democratic stability. Despite his New Order background, he preserved the democratic system he had inherited, motivated both by his political moderation and by his respect for majority opinion. By adopting such a posture, Yudhoyono helped Indonesia maintain democracy at a time when many countries that had become democratic in the 1980s and 1990s were sliding back towards authoritarianism.

But although Yudhoyono did not reverse Indonesia's democratic trend, he also did nothing to help democratic attitudes, institutions and practices become so entrenched that we can now speak of Indonesia as a consolidated democracy. Democracy is not the only game in town in Indonesia. Despite the overall stability, the Yudhoyono presidency was also an era of missed opportunities to deepen democracy further.

A verdict of stagnation is supported by agencies that produce ratings of global democracy.

Freedom House, for example, upgraded Indonesia's status from 'partly free' to 'free' in 2006, at the outset of Yudhoyono's presidency, largely on the basis of the country's implementation of direct elections of local government heads in 2005 (based on a 2004 law passed under the president's predecessor Megawati Sukarnoputri).

At the end of Yudhoyono's presidency in 2014, it relegated the country once again to 'partly free' status, mainly in response to the passage of a new law on social organisations that restricted freedom of association. While Indonesian democracy did not go into reverse during Yudhoyono's tenure, neither did it make dramatic forward progress.

Democratic stability does not necessarily amount to democratic consolidation. While the decade of stable rule under Yudhoyono gave key democratic institutions time to bed down, it is far from clear that they became so strong that they were no longer under serious threat.

On the contrary, the near-death of direct elections of local government heads and attacks on the KPK demonstrate that the reverse was the case. The failure to more thoroughly reform institutions such as the police and the military, meanwhile, meant that reservoirs of authoritarian thinking remained powerful in key institutions, as they did in political parties.

These problems did not pose any immediate threat to the democratic system – precisely because of Yudhoyono's personal commitment to democracy and his reluctance to oversee dramatic change – but they left open the real possibility of future piecemeal erosion.

Indeed, the sense of drift that evolved in Yudhoyono's second term, and the public's growing disillusionment with their irresolute leader, came close to propelling an outright authoritarian figure, Prabowo Subianto, into the presidential palace during the 2014 presidential election.

Overall then, the Yudhoyono years should not be interpreted only as a period of democratic stability; it was also a decade of democratic stagnation that actually exacerbated the long-term threats to Indonesia's democratic consolidation.

[Edward Aspinall, Marcus Mietzner and Dirk Tomsa are the editors of the newly launched book 'The Yudhoyono Presidency: Indonesia's Decade of Stability and Stagnation'. This article is an edited extract from their introduction to that volume.]

Source: http://asiapacific.anu.edu.au/newmandala/2015/07/31/stability-and-stagnation-under-sby/

Fighting judicial mafia

Jakarta Post Editorial - July 24, 2015

Marking the anniversary of the Attorney General's Office (AGO) on Wednesday, President Joko "Jokowi" Widodo warned state prosecutors against extorting individuals under investigation, a practice that is reportedly rampant but difficult to prove except in a few cases.

The President was apparently not singling out the prosecutors because the AGO is only part of the country's justice system, which according to various studies is rife with corrupt practices. The recent arrest of prominent lawyer Otto Cornelis Kaligis, his aide and three North Sumatra State Administrative Court judges in Medan for alleged bribery all but substantiates the long-standing perception that justice can be bought here.

Thanks to the Corruption Eradication Commission (KPK), the public has seen state prosecutors, police officers, judges, court clerks and lawyers stand trial and be convicted of accepting and providing bribes – trials which in the past were rare, if not absent. When those professionals who deal with the law collaborate to undermine justice, they form a mafia-like mechanism that provides them not only with wealth but also protection.

The administration of then president Susilo Bambang Yudhoyono established in 2009 a task force assigned with fighting the judicial mafia following the arrest of tax officer Gayus Tambunan, who had managed to evade the law thanks to bribes he paid to people responsible for upholding justice. After two years, the task force, which answered directly to the President, was dissolved although its duties were taken over by the presidential delivery unit.

Credit should go to the task force, whose former secretary Denny Indrayana is ironically under police investigation for corruption allegedly committed when he served as deputy law and human rights minister; but repeated arrests of law enforcers and judges for bribery prove that the judicial mafia continues to exist. That Jokowi reminded the National Police of eradicating the judicial mafia during the force's anniversary on July 1 indicates that the problem is far from resolved. The mafia has perhaps expanded and strengthened its network, as the Medan arrest indicated.

Both the AGO and National Police have rivaled the KPK in combating graft recently as part of their bid to restore credibility. But because the judicial mafia is operating from within, there is no other option for the two law enforcement institutions but to clean themselves up and weed out corrupt personnel. The reason why internal reform initiated by the Supreme Court remains unable to prevent judges from committing corruption is because the judiciary, the third pillar of democracy, has refused to accept external supervision.

The KPK has so far played a watchdog role for the three institutions, but its lack of personnel and vulnerability to attacks – as in the three episodes of "crocodile vs. gecko" standoffs against the police – have prevented it from doing more.

In the past the AGO, the National Police, the Supreme Court and the Law and Human Rights Ministry set up a forum to synchronize efforts to create an efficient and simple judiciary. With greater public access, such mechanisms could be revived to beat the judicial mafia.

Source: http://www.thejakartapost.com/news/2015/07/24/editorial-fighting-judicial-mafia.html