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Indonesia News Digest 34 – September 8-15, 2015

News & issues

Actions, demos, protests... West Papua Human rights & justice Women's rights Sexual & domestic violence Labour & migrant workers Political parties & elections Environment & natural disasters Health & education Graft & corruption Agriculture & food security Parliament & legislation Jakarta & urban life Armed forces & defense Criminal justice & prison system Intelligence & state security Economy & investment Analysis & opinion

News & issues

Puan's office has another go at panned website, wants more money

Jakarta Globe - September 15, 2015

Jakarta – Indonesia's chief welfare minister plans to spend another Rp 200 million ($13,900) revising a website that her office took down last month amid criticism of its Rp 140 billion price tag and blatant plagiarism.

The site, revolusimental.go.id, set up by the office of Puan Maharani – who also happens to be the daughter of Megawati Soekarnoputri, President Joko Widodo's political patron – was accessible for just five days last month before being taken down.

The ministry's secretary, Sugihartatmo, said on Tuesday that the site would be revamped at an additional cost to the taxpayer of Rp 200 million.

"The money will come from the state budget. The Rp 200 million [will be spent] to develop and maintain [the new site]," he said as quoted by Detik.com. "Yes there is a need for additional funding, but the most important thing is that the website is good and useful."

The original site featured a picture of Puan and entry fields in which visitors could fill in their name and e-mail address to get updates. The tiled layout of the site bore a striking resemblance to that used on the site barackobama.com, run by the grassroots advocacy group Organizing for Action.

A look at the Indonesian site's WordPress theme template shows coding for a button to "donate to Obama" – indicating a sloppy copy-and-paste job by the coders of Puan's site.

Puan also appears to take full credit for the concept of "revolusi mental," or "mental revolution," which Joko touted heavily during last year's election campaign to refer to the need for a drastic change to the business-as-usual mind-set prevalent among officials and the public.

Critics have lashed out at the cost of the site, which seems to serve no purpose whatsoever other than glorify Puan. Puan's site has, as of last month, been taken down.

Source: http://jakartaglobe.beritasatu.com/news/puans-office-another-go-panned-website-wants-money/

Religious minister to Indonesians: Pray for rain

Jakarta Globe - September 9, 2015

Jakarta – Religious Minister Lukman Hakim Saifuddin has called on Indonesians to pray for rainfall as the archipelago continues to struggle with the extreme dry season due to El Nino.

"I'm urging Muslims to perform 'Salatul Istisqa' [Islamic prayer for rain]... and other religious communities to pray for rain and bring blessings," Lukman said in a press release distributed in Jakarta on Wednesday.

This year's dry season, which started in March and has since intensified, has already had a detrimental effect on the productivity of farmers across the nation.

Officials in Central Java have expressed concerns that a severe drought could threaten food security across the province and throughout Indonesia, as the region's paddy fields are one of the country's main sources of rice.

Source: http://jakartaglobe.beritasatu.com/news/religious-minister-indonesians-pray-rain/

Actions, demos, protests...

Hundreds of students hold street rally

Jakarta Post - September 10, 2015

Jakarta – Hundreds of university students from Jakarta and Banten organized rallies on Thursday to demand that President Joko "Jokowi" Widodo's government immediately act to ease pressures caused by the economic slowdown, such as increases in the price of basic commodities.

"We demand that the government control food prices, fight against food mafias and protect local workers," said Erizal, a field coordinator of the demonstration, as he organized protesters on the streets near the National Monument (Monas).

Similar remarks were made by spokesperson for the University of Indonesia's Student Executive Board (BEM UI) Rizki Khaerul. He called on the President to crack down the so called "food mafias" that have caused several food commodity prices to jump.

The students denied rumors reported by tribunnews.com that their action was part of an effort to force President Jokowi to step down. "No. There is no objective of demanding that the President step down," said Denny Yussuf, one of the participants in the demonstration.

He said that such rumors had spread among the students on Wednesday evening, allegedly coming from people wanting to foil Thursday's action. (bbn)

Source: http://www.thejakartapost.com/news/2015/09/10/hundreds-students-hold-street-rally.html

West Papua

West Papua: Special envoy calls on Indonesia to 'honour' forum rights move

Pacific Media Centre - September 12, 2015

Port Moresby (ULMWP/Pacific Media Watch) – The Solomon Islands Special Envoy on West Papua, Mathew Wale, today cautiously welcomed the decision by the Pacific Islands Forum leaders to take forward a request to the Indonesia government on a fact finding mission on human rights.

This was the will of "all the Pacific leaders and their people, including Australia and New Zealand and PNG as chair" is mandated to consult with Indonesia.

"Looking back at previous leaders' commitments on the West Papua issue, today's decision is historical in definitely progressing the agenda in a forward motion," he said in a statement.

"There are only two possible outcomes to expect from here on and that is either Indonesia refuses outright the request of all Forum leaders and face the consequences or they agree to begin a difficult process that includes terms and condition for the fact-finding mission," said Wale.

He said he hoped Indonesia, considered an important Post Forum Dialogue partner by the Forum, could be persuaded to come to the table to begin the robust dialogue to address the terms of reference for a fact-finding mission.

"The role of PNG entrusted as chair of the Forum to begin these negotiations places significant burden on PNG to ensure that it does not confuse its bilateral economic and trade interest with Indonesia and its moral responsibility to seeking a just resolution on behalf of the Forum member countries and the people of the Pacific," added Wale.

The leaders' communique specifically highlighted some of the concerns about the human rights situations in the Papuan provinces.

PNG Prime Minister Peter O'Neill said this was the reason why the Forum was calling on all parties to protect and uphold the human rights of all residents in Papua.

"The people of Papua and civil societies have longed cried for this recognition and today we see an opening that gives us some comfort and hope that all Pacific leaders want all parties to protect and uphold our human rights and put an end to this atrocity," said Wale.

Octovianus Mote, secretary-general of the United Liberation Movement for West Papua (ULMWP), said: "What this means for us is that we have a right to be part of this process."

Mote said the ULMWP, together with the Solomon Islands Special Envoy on West Papua, would stand ready to assist in a difficult process to ensuring a just resolution.

Source: http://www.pmc.aut.ac.nz/pacific-media-watch/west-papua-special-envoy-calls-indonesia-honour-forum-rights-move-9429

West Papua: 'We won't be intimidated', says Sogavare

Pacific Media Centre - September 11, 2015

Port Moresby (Pacnews/PNGLoop/Pacific Media Watch) – Solomon Islands will not be intimidated by Indonesia or other countries in the Pacific Islands Forum in its push for West Papua.

Prime Minister Manasseh Sogavare is willing to take it to the next level, to demand global action through its membership of the United Nations in New York.

Speaking to journalists, PM Sogavare said he was in Port Moresby this week with three proposals – to push for observer status, agree to a high level fact finding mission and have West Papua listed in the United Nations Committee Decolonisation Committee, known as the Committee of 24.

To demonstrate the gravity of his government's commitment, PM Sogavare included his Special Envoy on West Papua, Matthew Wale and the leader of the United Liberation Movement for West Papua, Octavanius Mote in his delegation to Port Moresby this week.

"It's not a new issue, it's one that has been with us even before some of us became an independent nation. We have admitted them to Melanesia Spearhead Group (MSG) as observers and we hoped that we could accord them the same to be observers at the Pacific Islands Forum.

"Indonesia's Vice-Minister for Foreign Affairs, Abdurrahman Mohamed Fachir, did not mince his words when he said that "the issue of Papua was irrelevant" to the Forum Leaders discussion here in Port Moresby.

"I think this is not the right forum to discuss West Papua for a number of reasons. We are here discussing important economic development, co- operation, how to address climate change, maritime, fisheries and ICT connectivity for the Pacific.

Human rights abuses

"I'd like to remind the Pacific Forum Leaders that Indonesia is a democracy and we have the most detailed provision on human rights in our Constitution. We even have a national commission that investigates human rights abuses.

Fachir said his country strongly believed in the international principle of non-interference in the national affairs of other countries. "It is now up to the Forum Leaders to discuss Papua and we believe in their wisdom," said Fachir.

Sogavare disagrees with the suggestion by Indonesia that West Papua is "irrelevant" to the agenda of the Pacific Islands Forum.

"Bringing West Papua to the agenda of the Pacific Islands Forum is within the framework of the Leaders meeting. We are not going outside that mandate," said Sogavare.

He fully acknowledges Indonesia's sovereignty over West Papua but questions that sovereignty if the people's human rights are abused and violated.

"By virtue of our membership of the UN we recognise the sovereignty of Indonesia over West Papua. But the same United Nations recognises the rights of people for self-determination and violation against human rights.

"The strong stance taken by the Sogavare government has also tested its relationship with Jakarta.

Forum framework

"They've expressed disappointment and we've explained to them that our action is well within the framework of the Pacific Islands Forum and the Melanesian Spearhead Group (MSG)."We are in active consultation with Indonesia.

"That's a very interesting diplomatic term. They don't have to agree to our position but we just consult them and explain to them that this is the right thing for us to do, and we will move ahead," said Sogavare.

He said Solomon Islands appreciated Papua New Guinea's position because it shared a common border with Indonesia. "It's a sovereign decision that PNG will have to make that best represents the interests of its people. That we will respect.

"However, these are issues that go beyond sovereignty like human rights. If a member of the UN is committing human rights violations against its own people, it is no longer the issue that is domestic to that country but one that must be addressed by the United Nations," said the Solomon Islands leader.

Fiji's Foreign Affairs Minister, Ratu Inoke Kubuabola, reiterated his country's respect for Jakarta's territorial integrity and sovereignty over West Papua.

"We see West Papua as part of Indonesia and as far as human rights are concerned, Fiji will raise its voice here at the Forum and all also at the United Nations.

"When we opened our mission in Jakarta in 2012, during bilateral meeting with former President, Susilo Bambang Yudhoyono, our Prime Minister raised human rights issues in West Papua. I have personally raised it with my former counterpart, Marty Natelegawa and the current foreign affairs minister, Retno Marsudi.

"If there any human rights violations reported, Fiji will raise it with Indonesia and raise its voice at the United Nations.

"We take it up with Indonesia ourselves, when we hear it we raise it directly with Jakarta because of the good bilateral relations we enjoy with Indonesia," said Ratu Inoke.

Civil society organisations active in the push for West Papua's inclusion on the Forum agenda, maintain that it is the moral obligation of Pacific Leaders to find just resolution to the human rights abuses that have claimed more than 500,000 lives.

Source: http://www.pmc.aut.ac.nz/pacific-media-watch/west-papua-we-wont-be-intimidated-says-solomon-pm-9423

Marwan contradicts Jokowi, call Merauke is the 'heaven for trans-migrants'

Tabloid JUBI - September 11, 2015

Jayapura, Jubi – Indonesian Minister of Rural and Underdeveloped Region and Transmigration, Marwan Jafar, contradicted President Joko Widodo's pledge to terminate the transmigration program in Papua.

Despite giving support to Jokowi's statement, the minister said he would expand the program of transmigration in Papua. In an interview in Jakarta on last week, he said the current program is intended to move residents from densely populated areas to less-populated ones. Those people also would be provided with cash and land property if they "succeed" in Merauke.

"Merauke could be considered as the borderland area that was succeed in executing the transmigration program and development of farming area in the eastern Indonesia," said the minister to reporters in Jakarta as cited by Jakarta Globe. He further said Merauke is the "heaven for trans-migrants".

He predicted about 275 thousand people have moved to Merauke since the annexation over West Papua by Indonesia in 1969. Those migrants were often said to harm the indigenous people. They were accused ignoring the sense, habitude and tradition of the indigenous people, destroying the environment and taking the economic opportunity of indigenous people.

In the meeting with public figures in Jakarta on last week, Jokowi renounced that his government will terminate the transmigration program to Papua.

"The government will end the transmigration to Papua because it has caused social gaps," through the statement conveyed by the President Spokesperson, Teten Masduki. The president, Teten said, has asked the Papua Governor to terminate the transmigration program.

However, the Minister Marwan Jafar seems not paying attention to Jokowi's statement. He said the transmigration program will accelerate the production as well to support the government's plan to develop 1.2 million hectares of rice field in Merauke under the Merauke Integrated Rice Estate (MIRE) Project. "If the program is succeed, will bring more benefits for this district," he said. (Victor Mambor/rom)

Source: http://tabloidjubi.com/en/2015/09/11/minister-marwan-contradicts-jokowi-call-merauke-is-the-heaven-for-trans-migrants/

Sogavare pushes for West Papua at forum

Radio New Zealand International - September 10, 2015

The Solomon Islands Prime Minister Manasseh Sogavare will push for a West Papuan group to be admitted to the Pacific Islands Forum at the annual summit of the region's leaders in Port Moresby.

The government's special envoy on West Papua Matthew Wale says the Solomon Islands is supporting the United Liberation Movement of West Papua's application for observer status at the Forum.

The ULMWP was granted observer status in the Melanesian Spearhead Group at the regional organisation's recent leaders summit in Honiara.

Mr Wale says Solomon Islands will also urge Forum leaders to support a resolution calling for the UN Human Rights Commissioner to conduct an assessment on the human rights situation in West Papua.

The Solomon Islands also wants a resolution calling for West Papua to be included on the UN's decolonisation list.

Mr Wale says the leaders have a moral obligation to deal with the issues responsibly given public opinion and the amount of information about the situation in the Indonesian region.

However other Pacific Islands government, notably those of Melanesian powerhouses Papua New Guinea and Fiji appear reluctant to engage on West Papua at the Forum level to any great extent.

The situation in the Indonesian region is one of the five agenda items at the Pacific Islands Forum leaders summit in Port Moresby and there have been calls for a fact-finding mission to the province.

However PNG's Foreign Minister Rimbink says his country will not do anything to endanger the good relationship it has with Indonesia when it comes to West Papua.

Mr Pato says he acknowledges the call for a forum mission and it will be discussed but PNG is looking at other methods.

"Our strongest recommendation will be to work alongside Indonesia. Indonesia has just been made an associate member of the Melanesian Spearhead Group which is a sub-regional body and that is a starting point, and should there be some issues we will be looking to work through that and work together with Indonesia."

The plenary meetings at the 2015 Forum summit have been marked by protesters outside the venue calling for more action in West Papua.

Source: http://www.radionz.co.nz/international/pacific-news/283848/sogavare-pushes-for-west-papua-at-forum

West Papua convoy takes to city streets

PNG Loop - September 9, 2015

Julianna Waeda – The PNG Union for Free West Papua and supporters of the Free West Papua movement are convoying around the streets of Port Moresby.

The vehicle convoy which started at Jack Pidik Park and proceeded along Waigani Drive through to the Sir John Guise stadium has stopped in front of the Kina Mart shopping mall area.

The Union leaders are speaking to members of the public who are gathered there about their cause and the issue of human rights exploitation that has powered their cause.

Union leader Kenn Mondiai says that the movement is growing and that the cause to free their Melanesian brothers and sisters is taking a regional and global stance.

The convoy made up of supporters from different walks of life have been chanting "Free West Papua" and actively waving their Morning Star flags and cheering.

Meantime, Mondiai says that there will also be a joint statement released soon about the collective efforts of regional support groups as well as their response to the positive outcomes of the recent PIF meet.

Source: http://www.looppng.com/content/west-papua-convoy-takes-city-streets

NZ accused of lack of leadership over West Papua

Radio New Zealand International - September 9, 2015

A New Zealand opposition MP Catherine Delahunty says the New Zealand government is showing a lack of leadership and credibility over West Papua.

The Foreign Minister Murray McCully says he does not support a fact-finding mission to the Indonesian region by the Pacific Islands Forum.

The situation in West Papua is one of the five big issues on the Forum agenda and there have been calls from both NGOs and West Papuans for a mission to look into allegations of human rights abuses in the Indonesian province.

However Mr McCully says he does not back the calls. "I haven't seen a role for a fact-finding mission but I think a healthy discussion about this matter amongst leaders will be useful and I think that Papua New Guinea and the chair will bring a good sense of balance and judgement to that discussion."

Ms Delahunty says the Pacific Islands Forum is the ideal venue to support an investigation into what she describes as the worst human rights abuses in the region. The Green MP says more talk isn't going to stop West Papuans dying, or finally give them freedom and independence.

She says there is support around the Pacific for independence for West Papua and an international fact-finding mission is seen as the first step. She says New Zealand's stance is shameful and embarrassing.

March for recognition

West Papuans living on the border between Papua New Guinea and Indonesia have staged a demonstration march appealing to Pacific leaders gathered in Port Moresby for recognition of their rights to self-determination.

About 400 West Papuans from Tabubil and Kiunga in PNG's Western Province gathered at the Kiunga Police station on Monday for the procession around Kiunga.

The Co-ordinator of the West Papua Interest Association, Ronald Waromi, says the people of West Papua are hoping Pacific leaders can afford them the same recognition they have given to others such as Tahiti and the Kanaks of New Caledonia.

"West Papua is the part of Pacific therefore in this opportunity we bring our plea to all Pacific Island leaders those who will gather in Port Moresby to see that West Papua is a part of the Pacific so they must support West Papua right for self determination."

Source: http://www.radionz.co.nz/international/pacific-news/283674/nz-accused-of-lack-of-leadership-over-west-papua

KNPB declares support for PIF

Tabloid JUBI - September 8, 2015

Jayapura, Jubi – The West Papua National Committee (KNPB), Papua Students, Youth and People Movement (GempaR) and other KNPB supporters held a peaceful rally in front of the gate of the Cenderawasih University in Jayapura City, Papua on Monday (7/9/2015) to express support for the Pacific Islands Forum conference being held in Port Moresby, Papua New Guinea.

During the rally, KNPB declared four political statements: first, free West Papua to safe the Pacific people from colonialism and capitalism. Second, free West Papua to save the Pacific people from global warming. Third, the people of Papua need assistance from Pacific people from genocide threat and forth, urge the United Nations to send a special team to investigate the political status of Papua and West Papua provinces.

"We highly support the Pacific Islands Forum for accepting West Papua through the United Liberation Movement for West Papua as an observer to take an active role in talking and solving the problems within this region together," the General Chairman BPP-KNPB, Victor Yeimo, said.

In the same place, the Operation Unit Chief of Jayapura Municipal Police Commissionaire Police Heru Hidayanto said the demonstration was running peacefully. "Although there's a plan to do long march earlier, but it's not realized. They only did the rally on location," he said.

"For security purpose, we deployed 60 personnel of Jayapura Municipal Police, 30 personnel of Mobile Brigade and 60 personnel of Papua Police. We expected that under our personnel's guard, they could run the rally in order and peace, because actually the police do not want the clash happened," he said. (Munir/rom)

Source: http://tabloidjubi.com/en/2015/09/08/knpb-declares-support-for-pif/

Papuan independence leader Filep Karma refuses to be released from jail

Sydney Morning Herald - September 8, 2015

Jewel Topsfield, Jakarta – Papuan independence leader Filep Karma has flummoxed Indonesian authorities by refusing to be released from prison until he is cleared of treason.

He is the first prisoner who has refused to leave jail in Indonesian Republic's 70-year history, according to the director of prisoner and custody services, Imam Suyudi, who says there is no government regulation to deal with the unusual situation.

Mr Karma was jailed for 15 years for treason in 2004 after raising the Morning Star flag, used by supporters of Papuan independence. He was due to be released from Abepura prison in Jayapura on August 17, after receiving remissions to his sentence due to good behaviour.

However Mr Karma wrote to Law and Human Rights Minister Yasonna Laoly and said he would not accept the remissions because he was not a criminal.

"I am in jail because I expressed my aspirations peacefully, I flew the Papuan flag and I demanded Papuan independence in a peaceful way. I even asked for a permit to police before staging my peaceful protest," he told Fairfax Media through a source.

Mr Karma said prison governor Bagus Kurniawan had tried to persuade him to leave the prison but he refused to do so until his name was cleared and the treason charge abolished. "I heard he's going to Jakarta today to meet with the minister himself and report to the minister about my case."

The director of prisoner and custody services, Mr Imam, said there was nothing the prison could do.

"We cannot force him to leave. He still gets all the services and treatment provided to inmates even though he should not be a prisoner anymore. The only thing we can do is talk to him, hopefully one day he will agree to go out of jail."

A Papuan student activist told Fairfax Media independence supporters had persuaded Mr Karma he would look more powerful if he stayed behind bars.

"But I think it's wrong," he told Fairfax Media on the condition of anonymity. "It is better for him to see the latest situation in Papua today. It is more effective to fight from the outside."

The independence movement in Papua has proven impossible to eradicate for the last 50 years, according to a recent report by the Institute for Policy Analysis of Conflict Instead of trying to crush the movement, the report said, the Indonesian government should try to avoid further radicalisation.

It said there were four main factors that exacerbated anti-Jakarta sentiment and contributed to radicalisation: ineffective policing, impunity for security forces, the division of Papua into smaller and smaller local government areas and undermining customary law.

"Every time a Papuan is shot by police – in a demonstration, an operation or in the course of an arrest – the political temperature rises," the report said.

"Security forces everywhere in Indonesia need to move away from opening fire as the stock response to crowd control, but nowhere is the need greater than in Papua."

On August 28, two civilians were allegedly killed by military personnel and others injured in a shooting at the Koperapoka Catholic Church complex in Timika, Papua. TNI spokesman Major General Endang Sodik told CNN the sergeant was acting in self defence after he was attacked by locals.

The report, which was launched four days before the shooting, said the deaths of members of the independence movement were often explained as resulting from the victim pulling a knife or gun, resisting arrest or trying to flee.

"The default responses... no longer have any credibility, even if in a few cases they may be true," the report said. "Papuan casualties at the hands of security forces are only occasionally investigated and punished, and the more senior the officer involved, the less chance there seems to be of serious prosecution."

At least two investigations had been opened into the killing of four people in Paniai in December but no results had been made public despite repeated pledges by President Joko Widodo.

The report also suggested ending the use of makar (political crime) as a charge for non-violent crime and proceeding with amnesties for non-violent political prisoners.

"Swearing loyalty oaths should not be a condition of release, especially since those committed to returning to the movement will do so whether or not they swear an oath." (with Karuni Rompies)

Source: http://www.smh.com.au/world/papuan-independence-leader-filep-karma-refuses-to-be-released-from-jail-20150908-gjhwfs.html

Human rights & justice

Massacre victims' families demand justice

Jakarta Post - September 14, 2015

Fedina S. Sundaryani, Jakarta – Human rights activists and families of victims of the 1984 Tanjung Priok massacre have criticized President Joko "Jokowi" Widodo's failure to fulfill his campaign promises to resolve past gross human rights violations.

Wanma Yeti, who had relatives die in the incident, said that Jokowi must quickly take action to respect the rights of victims.

"We ask the President to do two things. First, he must issue a decree or a policy to support the recovery of the victims. Second, he must issue a presidential decree or policy to push the attorney general to investigate past gross human rights incidents or cases that have previously been investigated by the National Commission on Human Rights [Komnas HAM]," Wanma said in a press conference on Saturday.

The Tanjung Priok massacre happened on Sept. 12, 1984, when members of the military opened fire at people protesting against a New Order policy in the North Jakarta neighborhood.

According to official reports from Komnas HAM, 24 people lost their lives while 55 suffered major injuries.

In an ad hoc human rights trial at the Central Jakarta District Court in 2004, Maj. Gen. (ret) Rudolph Adolph Butar-butar and Capt. Sutrisno Mascung were sentenced to 10 and three years in prison, respectively, and others also received sentences. However, all convicts were released a little over a year later.

Wanma said that during the presidential campaign last year, Jokowi had specifically mentioned the Tanjung Priok incident in his mission statement as one of the past human rights abuse cases he would seek to resolve if elected.

"I am disappointed with Jokowi. We are all disappointed. But families of the victims are still committed to demanding that Jokowi show the courage to resolve [the case]. We have concrete evidence that it happened. There was the trial and there are graves," she said.

Meanwhile, Beni Biki, whose brother, community leader Amir Biki, died in the shooting, said that Jokowi should avoid repeating predecessor Susilo Bambang Yudhoyono's offers of false hope.

Beni said he had twice been summoned during Yudhoyono's administration to give advice on how the government should tackle the situation, but with no progress ensuing.

He added that he and other victims and their families were preparing to submit a letter to Jokowi that they would deliver after his Middle East tour.

"In the letter, we will remind him that a country should not have any debts. We just want a resolution, whether that is through a legal process or any other means," he said.

He also criticized the government's decision not to include the Tanjung Priok massacre among seven cases to be resolved by a human rights task force to be comprised of the Attorney General's Office (AGO), Komnas HAM, the Indonesian military (TNI) and the National Police, among other institutions.

"If this is true, then it is proof that the government is trying to downplay the incident," Beni told The Jakarta Post.

Separately, M. Daud Beureuh from the Commission for Missing Persons and Victims of Violence (Kontras) criticized the planned task force's inclusion of institutions implicated in the violence. "How will [the task force] be objective if the TNI, the National Police and the National Intelligence Agency [BIN] are involved? How can it uncover the truth when its members may have blood on their hands?" Daud asked.

Source: http://thejakartapost.com/news/2015/09/14/massacre-victims-families-demand-justice.html

Government keeping eye on Munir case

Jakarta Post - September 8, 2015

Jakarta – The government says that it is paying close attention to the murder case of human rights activist Munir Said Thalib but stresses that it is not its responsibility to find the mastermind behind the murder.

Cabinet Secretary Pramono Anung said it was the task of law enforcement institutions to find the mastermind behind the murder of the activist who died from arsenic poisoning during a flight to the Netherlands on Sept. 7, 2004.

"The current government and past administration, of course, want to find out who was behind the murder. However, it certainly is not our duty to find out who [the mastermind] is," Pramono told reporters on Monday.

Law enforcement institutions have yet to find the mastermind behind Munir's death, although former Garuda Indonesia pilot Pollycarpus Budihari Priyanto had been put behind bars. In November last year, or a month after President Joko "Jokowi" Widodo took office, Pollycarpus walked free from prison on parole after he served six years of a 14-year sentence for the murder.

Munir's wife, Suciwati, recently called on Jokowi to establish an independent team to find the mastermind behind the murder following half- hearted investigations conducted by previous administrations over nearly 11 years.

The murder occurred when the country was led by Jokowi's party patron, former president Megawati Soekarnoputri, the current chairperson of the ruling Indonesian Democratic Party of Struggle (PDI-P).

Suciwati said the establishment of an independent team was important since a fact-finding team under former president Susilo Bambang Yudhoyono indicated that Munir's death was a scheme involving more than one perpetrator, possibly including people from the National Intelligence Agency (BIN).

Source: http://www.thejakartapost.com/news/2015/09/08/national-scene-govt-keeping-eye-munir-case.html

Women's rights

Discriminatory laws hold Indonesian women back, World Bank report finds

Jakarta Globe - September 10, 2015

Jakarta – Women continue to be discriminated against in Indonesia through prevailing laws, despite progress on some fronts, according to a study by the World Bank.

The "Women, Business and the Law 2016" report, released on Wednesday, found there were eight laws still on the statutes that continued to discriminate against women, including on household and tax matters.

"While progress has been made in many economies to allow women more access, legal restrictions on their ability to take action persist," the report said.

In Indonesia, that includes a prohibition on women serving as the head of a household – a restriction that puts the country in the same league as Iraq, Saudi Arabia and Yemen. Inheritance laws rooted in a deeply patriarchal tradition also favor men over women.

"Giving women greater access to assets through inheritance can change outcomes for children, particularly girls," the report said, adding that "[a]ccess to assets through inheritance is particularly important for widows, who may depend on inheritance for economic security and survival."

Indonesia, though, is one of four economies in East Asia and the Pacific – the others being Brunei, Malaysia and Tonga – that do not grant widows equal inheritance rights. Similarly, sons and daughters have different inheritance rights. The country is also one of 16, out of a total of 173 covered in the report, where "tax provisions directly favor men."

"These economies either grant men an explicit tax deduction or credit, or an implicit tax deduction or credit is granted to the male head of household," the report said.

The report also highlighted the lack of legislation, civil remedies or criminal penalties to protect against sexual harassment, and no protection under domestic-violence legislation for unmarried partners.

However, Indonesia has taken a progressive stance on other issues, such as women's representation in politics, with electoral laws setting minimum quotas for female candidates in parliamentary and regional council elections; maternity leave, with employers obliged to give their workers' 90 days of paid leave; and property rights, with men and women having equal ownership rights.

"In the East Asia and Pacific region, substantial gains have been made towards women's economic inclusion, including through labor legislation," the World Bank said in a press release accompanying the report.

"Economies in the region also show innovative access to credit and tax policies to support women's economic opportunities."

World Bank President Jim Yong Kim called it "a grave injustice when societies place legal restrictions on women's ability to get a job, or participate in economic life."

"Women – like men – deserve every opportunity to fulfill their potential, no matter where they live. These restrictions are also bad economics. Women represent over half the world's population. We can't afford to leave their potential untapped – whether because laws fail to protect women against violence, or exclude them from financial opportunities, property ownership or professions," he said.

"When women can work, manage incomes and run businesses, the benefits extend far beyond the individual level – to children, communities and entire economies. We will not rest until women have full economic rights everywhere."

Kaushik Basu, the World Bank's chief economist and senior vice president, said it was clear that despite nearly every country's pledges to end gender discrimination, women continued to "face numerous restrictions in the workplace."

"I hope this report will motivate governments everywhere to treat men and women equally in the workforce and help to achieve a collective ambition of countries and a world without extreme poverty and with opportunity for all," he said.

Sarah Iqbal, the report's lead author, said that while laws could not guarantee equal treatment for women, "they are the first step towards creating an even playing field in which women have the opportunity to thrive."

Source: http://jakartaglobe.beritasatu.com/news/discriminatory-laws-hold-indonesian-women-back-world-bank-report-finds/

Sexual & domestic violence

Unicef Indonesia spotlights violence against children in web campaign

Jakarta Globe - September 12, 2015

Jakarta – The United Nations Children's Fund's Indonesia office has been focusing on factors such as child development, social policy, education, communication and child protection, key objectives that revolve around one another to ensure the the healthy upbringing of a child with an educational background can lead to a financially sufficient life.

While Indonesia has made vast improvements in all of these factors over the past years, significant changes still need to be made – especially in child protection.

According to a Global School health study conducted across Indonesia in 2007, 40 percent of students between the ages of 13-15 reported of having been physically attacked during the school year.

The figure is one of the highest reported rates in the world, spurring Unicef to launch the website campaign Protector of Children, which aims to eradicate violence against children.

"The website is a platform to share information about violence against children and what everyone – either as parents, teachers, neighbors, even bystanders – can do to prevent and respond to it," said Ali Ramly, a child protection specialist for Unicef Indonesia.

The site provides contact details of child protection services available in Indonesia, along with feedback given by visitors on such service centers – whether they respond well or are no longer available.

Protector of Children is currently up and running but will be regularly updated with new material. Later this month, for example, the site will feature a new education tab containing articles on child abuse cases and basic information on how to protect the nation's children.

Taboo

Asking for help or even speaking out on violence against children can be a challenging ordeal in Indonesia, due largely to the conservative attitude still held by many of its people and a prevalent culture of reluctance.

The Protector of Children website aims to eliminate the fear that may come with reporting cases of child violence and works to forge strong relationships in communities.

"The site features a forum that will also allow open discussions on violence, subsequently raising awareness on the issue," Ali said. "This is one way of changing the norms of a society that doesn't want to talk about violence."

According to a baseline study supported by Unicef, children remain reluctant to report cases of sexual abuse due to an overwhelming sense of shame. Unicef Indonesia has, therefore, found ways to tap into religion and culture to approach the issue.

"Our programs in South Sulawesi work with local governments and religious leaders, calling on them to raise awareness through verses in the Koran and teachings of the prophet that work to protect children," Ali said.

In East Nusa Tenggara, meanwhile, Unicef enlisted the help of local churches and biblical scripture.

Economic progress

Though the Protector of Children campaign primarily aims to provide aid for Indonesia's children, it also has the long-term potential of improving the nation's economy.

Studies have shown that abuse and mistreatment at a young age can lead to mental health issues, physical disabilities and a severe lack of any professional achievements later in life.

"Children who are victims of violence are more likely to drop out of school, which subsequently makes them less likely to function or contribute to their community," Ali said.

Unicef created a model to estimate the economic costs of violence against children, based on studies of physical, sexual and emotional abuse and its consequences. The 2004 study discovered that child maltreatment can incur annual state losses of up to $160 billion.

Unicef Indonesia is working to underline that everyone has a role to play in this movement against child abuse; not only for the children's future, but also for that of the nation.

"We invite NGO partners, experts and members of the community to contribute articles and information [on violence against children]... Their positive experience in reporting [cases of abuse] and seeking help will hopefully encourage others to do the same," Ali said.

Source: http://jakartaglobe.beritasatu.com/news/unicef-indonesia-spotlights-violence-children-web-campaign/

Labour & migrant workers

Number of laid-off workers reaches 26,506: Ministry

Jakarta Post - September 12, 2015

Jakarta – Up to 26,506 workers in Indonesia have been laid off while the rupiah has been weakening, said Manpower Minister Hanif Dhakiri on Saturday.

"According to our latest data, the number of workers that had been laid off has not changed much compared to [the data] from last August [which was 26,000]," said Hanif as quoted by tempo.co.

He added that there were plenty of reasons for the lay-offs, including efficiency efforts by firms and the increase of production burdens caused by expensive imported materials, but he highlighted that most of the workers were laid off by not having their contracts extended.

"The number of firms that went out of business are not many: only one or two," said Hanif.

The minister said he was optimistic that the newly launched economic policy package would be able to prevent the number of laid-off workers (PHK) from increasing further, as the package would focused on three areas: boosting industry competitiveness, accelerating infrastructure projects and increasing investment in the property sector.

"We are more into the increasing of investment to focus on the PHK issue since it will bring developments and increase the uptake of productive manpower," said Hanif.

He added that the ministry will also monitor the performance of regional heads from the governor to the mayor level to reduce the number of PHK.

"We have sent a letter to governors and regents to make PHK their last option to address the weakening of the rupiah. We all have to monitor this actively," said Hanif. (kes)

Source: http://www.thejakartapost.com/news/2015/09/12/number-laid-workers-reaches-26506-ministry.html

Political parties & elections

Low female participation in December elections

Jakarta Post - September 14, 2015

Jakarta – Women are poorly represented in the upcoming regional elections in December, with less than 10 percent of all the candidates being female.

Only 116 or 7 percent of the 1584 candidates for regional heads and deputy heads in 262 regions are women, according to Association for Elections and Democracy (Perludem), which analyzed the data provided by the General Elections Committee (KPU).

"This confirms women are underrepresented and rarely given the chance to occupy executive positions. This is an initial picture of the challenge we face at the next simultaneous [regional] elections," Perludem head Titi Anggraeni said on Sunday.

She went on to say that many factors contribued to the phenomenon. "The practice of money politics that some women cannot afford or decide not to choose, tough requirements and the tendency for political parties to choose those who already have high electability despite their quality," she said.

Of the 116 female candidates, 54 are running for regional head positions, while the remaining 62 for deputy positions. From the 116 female candidates, only 15 are independent nominees while the rest are endorsed by political parties.

Candidates for head positions are dominated by former local councilors, relatives of incumbents, the incumbent themselves and parties' candidates. The candidacy for deputy positions is dominated by party candidates, former local councilors, former military and police or civil servants.

"They tend to nominate those who already have high electability or are already backed by strong parties. Parties don't have new candidates of a high quality, that shows they haven't done proper reformation," Masykurudin Hafidz, coordinator of People's Voter Education Network (JPPR) added.

Hafidz suggested that the government could implement an affirmative action policy that obliges each political party to ensure at least 30 percent of their total candidates were women.

"At least the policy will direct the parties to not only base candidacy on electability, but also to do more [internal] reform based on integrity, administrative skill and support of women's rights."

Dian Kartika Sari, the head of the Indonesian Women Coalition (KPI), said that this year, 10 KPI members have been registered to compete in the December elections.

"Out of 130 branches that we have in the regions we could only nominate 10. Nominating at the executive level is harder than at the legislative level. The capital and energy needed for campaign and poll supervision at each polls post is bigger. Going into politics is not something instant but a continuous effort for two to three years. We are still learning more about this," Dian said.

Last year, 60 KPI members were elected into regional councils. The 10 current nominees include Faida in Jember Regency, East Java, Yuni Satya Rahayu in Sleman Regency, Yogyakarta, and Rita Widyasari in Kutai Kartanegara Regency, East Kalimantan. (rbk)

Source: http://thejakartapost.com/news/2015/09/14/low-female-participation-december-elections.html

Environment & natural disasters

Indonesia's emission target lambasted

Jakarta Post - September 14, 2015

Hans Nicholas Jong – Activists have urged the government to revise its Intended National Determined Contribution (INDC), saying the emissions target is flawed and indicative of the government's lack of long-term commitment to tackling climate change, let alone achieving zero greenhouse gas emissions.

Greenpeace Indonesia's forest political campaigner, M. Teguh Surya, said that the most glaring flaw of the INDC was that it is not quantifiable.

"The final INDC has no analysis of Indonesia's emissions over the last ten years, no baseline predictions and no assessment of what reductions, in terms of tons of CO2 emissions in various sectors, would have to be achieved to meet the 26 percent emission reduction target. There is nothing that we can measure," he said.

Teguh also criticized the government's decision to shift its focus from deforestation and land-use to energy consumption post-2020 based on the assumption that the country's deforestation rate is declining.

"In contrast to public claims of a decline in deforestation, various sources including the Environment and Forestry Ministry's own maps show deforestation has risen since 2010," he said.

The ministry's maps, which are published as part of the REDD+ Forest Reference Emissions Level (FREL) calculations that underpin the INDC submission, indicate net deforestation of around 500,000 hectares per year in 2009-2011, rising sharply to around 750,000 ha in 2011-2012 and 840,000 in 2012-2013.

"My assumption is that in 2013, Indonesia started to push for REDD+ because money was promised [by international donors]. Indonesia openly admitted that its deforestation rate was indeed high. In doing so, Indonesia hoped to attract global attention – and money," said Teguh.

With global attention now having shifted from REDD+ to renewable energy, the government appears to be following suit by claiming that deforestation has declined to justify the shift of focus to reducing energy consumption.

"Now the government is lowering the country's deforestation rate [and focusing on renewable energy] to get funding from international donors," Teguh said.

"Despite Indonesia's commitments under the New York Declaration on Forests and the soon-to-be-ratified Sustainable Development Goals, the recently released draft of the INDC shows a sharp drift in policy away from zero deforestation," Teguh said.

He was referring to the penultimate draft, which says Indonesia aims to "protect its remaining forests by increasing efforts in the implementation of palm oil industry no-deforestation commitments".

However, in the final draft – published just four days later – this disappears and is replaced by the largely meaningless "protect remaining forests by reducing deforestation and forest degradation", according to Teguh.

The removal of the indirect commitment to supporting zero deforestation was in line with recent remarks from the government, including the Office of the Coordinating Economic Minister and the Environment and Forestry Ministry, he added.

Jaap Spier, advocate general of the Dutch Supreme Court, meanwhile deplored the prevalence of short-term thinking with regard to tackling climate change.

"Politicians feel obliged to be re-elected in the next election and that's one of the reasons why they focus on short-term successes. If we would take responsibility for global issues, we have to take steps and that means we have to invest money to solve this problem, which means we don't have money for other areas. That's something you have to explain to voters," Spier, who recently launched the Oslo Principles on Global Climate Change Obligations, told The Jakarta Post.

Source: http://thejakartapost.com/news/2015/09/14/ri-s-emission-target-lambasted.html

Record fine against plantation company upheld

Jakarta Post - September 13, 2015

Hans Nicholas Jong, Jakarta – The Supreme Court has rejected an appeal by palm oil company PT Kallista Alam and ordered the company to pay fines totalling Rp 366 billion (US$25.6 million) for illegally burning large swathes of the Tripa forest in Aceh, a verdict that many hope could set a precedent for future law enforcement against agro-forestry companies.

The Environment and Forestry Ministry, which filed the lawsuit against PT Kallista Alam back in 2012, said the ruling was unprecedented, especially the size of the fine ordered in an environmental case.

"As far as I know, nothing has been as big as this," the ministry's law enforcement director-general Rasio Ridho Sani, told The Jakarta Post.

In early 2014, the Meulaboh District Court in Aceh found PT Kallista Alam guilty of burning around 1,000 hectares of the Tripa forest, which lies within Sumatra's Leuser Ecosystem, the only place on Earth where tigers, elephants, rhinos and orangutans can be found living together in the wild.

The court ordered the company to pay Rp 114.3 billion in compensation and Rp 251.7 billion to restore the affected areas of forest. The company then filed an unsuccessful appeal at the Banda Aceh District Court before finally submitting its appeal to the Supreme Court. The Supreme Court rejected the appeal on Aug. 28.

"The verdict shows that judges certified with environmental licenses have a clear understanding of the impact of land and forest burning," Rasio said.

He expected the verdict could be used as a precedent for ongoing and future cases. "We hope it becomes a reference for judges hearing cases in Palembang against PT Bumi Mekar Hijau and North Jakarta in the case of PT Jatim Jaya Perkasa," said Rasio.

With regard to PT Jatim Jaya Perkasa, the ministry has filed a civil lawsuit at the North Jakarta District Court against the company, demanding Rp 119.88 billion in fines for damaging the environment and Rp 371.12 billion for the recovery of the area.

In a bigger case, the ministry has also filed civil lawsuits with the Palembang District Court in South Sumatra against PT Bumi Mekar Hijau for allegedly causing fires in 20,000 hectares in Ogan Komering Ilir, South Sumatra.

It has demanded the company pay a fine of Rp 2.6 trillion for damaging the environment and Rp 5.2 trillion for its recovery. Both trials are currently ongoing.

"It's the biggest lawsuit we've ever filed," Rasio said, adding that the lawsuit would reimburse the state Rp 7.8 trillion if it was successful. "So, I hope the judges handling these cases can learn from the Supreme Court's verdict [on PT Kallista Alam]."

PT Bumi Mekar Hijau is a subsidiary of Asia Pulp and Paper. It has concessions amounting to 250,370 hectares in Ogan Komering Ilir. Based on data from the Indonesian Forum for the Environment (Walhi), most of the locations of fires in the province are on the company's concessions.

The ministry has been actively suing plantation companies for causing forest fires since 2013. The companies use the slash-and-burn method to open up forest areas as it is so cheap.

"We are preparing to file civil lawsuits against five other companies. Maybe next week we will do so," Rasio said.

The ministry is stepping up its legal actions against the companies as the haze caused by smoke continued to blanket much of Sumatra on Saturday.

Intensifying forest fires in Sumatra have paralyzed Sultan Syarif Kasim II Airport in the Riau provincial capital of Pekanbaru as the haze has reduced visibility in the city to only 100 meters, compared to the normal 10,000 meters.

"No planes can fly," said airport duty manager Hasnan in Pekanbaru on Saturday, adding that the airport runway was covered by ash.

Since Friday, the thick smoke from forest fires has shrouded Pekanbaru, after rain had fallen on the city earlier in the week. Hasnan said that 32 flights had been delayed on Friday.

The Pekanbaru station of the Meteorology, Climatology and Geophysics Agency (BMKG) reported that the Tera and Aqua satellites detected 883 hot spots in the Sumatra forests, indicating the spread of forest fires. This was substantially worse than the situation of the day before when 665 hot spots were recorded.

The National Disaster Mitigation Agency (BNPB) said on Saturday that the haze from Sumatra and Kalimantan had already spread to Singapore and parts of Sarawak in East Malaysia.

"Winds blowing north east caused haze from Riau, Jambi and South Sumatra to cover Singapore. The biggest source of the haze came from South Sumatra," BNPS spokesman Sutopo Purwo Nugroho said.

Source: http://www.thejakartapost.com/news/2015/09/13/record-fine-against-plantation-company-upheld.html

Walhi denounces coal-fired power plants

Jakarta Post - September 10, 2015

Hans Nicholas Jong, Jakarta – Amid the country's economic slowdown, the Indonesian Forum for the Environment (Walhi) has urged the government to reduce its coal dependency in its plan to build power plants to produce 35,000 Megawatts (MW) of power in the next five years.

The government has lowered its economic growth projection in 2016 from 5.8-6.2 percent to 5.5-6 percent, below the projection included in PLN's 2013-2022 master plan of 6.9 percent.

Based on the PLN projection, electricity demand is predicted to reach 7,000 MW per year, hence the government's plan to produce 35,000 MW of power in the next five years.

"The economic slowdown is the perfect moment to conserve natural resources instead of exploiting them massively. Developing renewable energy is more suitable because the social and environmental costs of fossil fuel actually slows down economic growth itself," Walhi executive director Abetnego Tarigan said.

Walhi energy campaigner Pius Ginting said that coal-fired power plants (PLTUs) had been found to reduce the productivity of people living within their vicinity.

"In our study during August 2015, Walhi found that farmers' productivity declined in Jepara, Cirebon, due to dust from the burning of coal in power plants," he told The Jakarta Post on Wednesday. "Fine particles called PM2.5 and PM10 produced by PLTUs are extremely dangerous to health. Their ultra-fine size enables them to enter the bloodstream."

A recent study by Harvard University has found that increasing the number of PLTUs from 42 to 159 will increase the risk of death from air pollutants in Indonesia. The government plans to build some 117 PLTUs in the next decade to meet the demand for more power.

The study revealed that air pollutants from the burning of coal at 42 existing power plants resulted in at least 6,500 deaths per year from strokes, heart and lung cancers and other respiratory and cardiovascular diseases.

This number would rise to 15,700 if the 117 new plants were constructed. The 117 new plants do not include other plants that the current government plans to install in its ambition to produce another 20,000 megawatts of energy. The ambitious project includes the construction of the controversial plant in Batang, Central Java, which continues to face protests from locals in the area.

Besides their hazardous impact on health, PLTUs also increased costs for other sectors, such as the salt industry, said Pius.

"Salt water used in salt ponds turns black due to the activities of PLTUs as well as coal loading and unloading from ships," he said. "This increases costs and time needed for salt farmers to clean the water."

Pius added that PLTUs also affected plant life, with leaves turning black and dust covering their stomata and reducing their productivity.

It was, therefore, crucial for the government to alter its 35,000 MW electricity project as it was currently dominated by PLTUs in Java, accounting for 12,400 MW, he said.

Source: http://www.thejakartapost.com/news/2015/09/10/walhi-denounces-coal-fired-power-plants.html

BNPB new chief pledges to get rid of haze in two weeks

Jakarta Post - September 10, 2015

Rizal Harahap and Syofiardi Bachyul Jb, Pekanbaru/Padang – A day after being appointed the head of the National Disaster Mitigation Agency (BNPB) Willem Rampangilei pledged on Wednesday to clear up in two weeks the haze currently blanketing Sumatra.

"In two weeks, that is what we are going to do. We will do our best," Willem said in his first official visit to Pekanbaru, Riau, after replacing Samsul Ma'arif.

Indicators of success, he said, would include airports in the regions operating normally without disruption from haze, sending students back to school and reducing symptoms of acute respiratory infections (ISPA).

Willem said his visit to Riau was not meant to take over the responsibility of local administrations in combating forest and land fires, arguing what they needed to do was intensify and strengthen what had already been undertaken.

"People have suffered for far too long. The haze escalation is no longer disruptive but has threatened the health of many people," he told a press conference held at the Riau forest and land fires emergency task force premises at Roesmin Nurjadin Air Base in Pekanbaru.

He said the economic loss caused by the haze could not be dismissed as insignificant. Quoting a 2013 World Bank report, he said that the total financial loss that Riau suffered from the haze amounted to Rp 20 trillion (US$1.4 million).

He said that, after being sworn in as BNPB head and receiving instructions from President Joko Widodo to put an end to the haze in Sumatra and Kalimantan, he stipulated a deadline to finish dealing with the haze within two weeks.

He added he would focus his work on the three provinces of Riau, Jambi and South Sumatra, and that the haze there would be dealt with comprehensively.

Meanwhile in West Sumatra, rain that poured over various areas, including Padang, Padang Pariaman, Bukittinggi and Payakumbuh on Tuesday afternoon and Wednesday morning helped the haze subside.

"Rain fell only three hours after students of state-run Islamic high schools in Payakumbuh and residents of two subdistricts in Limapuluh Kota regency conducted Istisqo mass prayer to ask God to send rain," Fajar of Payakumbuh said.

Head of the observation and information section of Meteorology, Climatology and Geophysics Agency's (BMKG) Padang office, Budi Imam Samiaji, said that medium to heavy rains pouring in from some regions did help the haze subside on Wednesday.

"The rain in Padang was light, but it increased the visibility up to 7,000 meters at Minangkabau International Airport," said Budi, adding that the visibility at the airport was previously, at its worst, only 1,500 meters due to the haze.

Budi also predicted that the chance of rain in some regions in West Sumatra was still high until mid-October. "West Sumatra is still in a transition period. There is potential for rainfall amid a few days of heat. This has made us optimistic that the haze will not worsen," Budi said.

While the new BNPB chief promised to clear Sumatra from the haze, many areas in Kalimantan affected by the thick smog might require a longer time to improve.

In North Barito, Central Kalimantan, the regency environment agency head Suriawan Prihandi said that a test of air quality in the region revealed that the air was not healthy at all due to the worsening haze.

"This can have a adverse impact on human health, especially in terms of an increase in the number of ISPA sufferers," Suriawan said as quoted by Antara news agency, recommending residents to curtail outdoor activities.

The city's education agency secretary Mahlani said the administration decided to send elementary students home for a week to avoid them suffering health problems due to the haze. "The holiday is just for students, not for the teachers who have to work and prepare student examinations," Mahlani said.

The Kalimantan chapter of Bank Indonesia has provided and distributed around 10,000 masks to students in the capital city of the province. "We have prioritized the distribution of the masks to students," the bank's deputy head, Abas Sumarna, said.

The BMKG station at Temindung Airport of Samarinda, East Kalimantan said Terra and Aqua satellites detected 131 hot spots in East Kalimantan and North Kalimantan on Wednesday.

Source: http://www.thejakartapost.com/news/2015/09/10/bnpb-new-chief-pledges-get-rid-haze-two-weeks.html

10 firms probed over Indonesia forest fires

Strait Times/ANN - September 10, 2015

Wahyudi Soeriaatmadja – Ten plantation companies operating in Riau, South Sumatra, Jambi and Kalimantan provinces may see their licences revoked, and may be fined as investigators probe whether they engaged in intentional burning to clear land ahead of the planting season later this year.

Preliminary evidence shows that the companies, which have either oil palm or wood pulp concessions, contributed to the raging fires that spread uncontrollably in the past weeks, spawning thick haze that has sent air pollution indexes in Singapore and Malaysia to between moderate and unhealthy levels.

"Investigations are ongoing. We will immediately announce the names of the companies once we group them into three classes – mild, moderate and heavy breaches," Environment and Forestry Ministry spokesman Eka Soegiri told The Straits Times by phone.

The skyline in central Singapore obscured by haze yesterday afternoon. The haze is expected to persist today, according to the National Environment Agency.

Under Indonesian plantation law, a company found guilty of clearing land by burning can be fined up to 10 billion rupiah (S$1 million), and the management faces up to 10 years in jail.

Companies that fail to control fires started elsewhere but which spread into their concession land also face punishment. The law requires them to have adequate equipment and personnel to control fires within their land.

"In each of the 10 cases, investigators are studying what caused the fire, how it spread, the impact of the fire, how much effort the plantation company put in to control the fire, and the economic losses the fire caused," Dr Eka said.

One of the 10 companies has been identified as PT Tempirai Palm Resources in South Sumatra province, where 45ha of its concession land caught fire.

Mr Ali Hanafiah, Tempirai's manager in charge of emergency response, blamed local farmers who started a fire nearby that spread into his company's concession land owing to strong wind, Kompas daily reported yesterday.

Meanwhile, in Jambi, police have named 20 farmers in their investigation of eight cases of forest and land fires since January, reported The Jakarta Post.

Haze from forest and land fires deteriorated in Kalimantan and lingered in Sumatra yesterday as officials – in some places facing a lack of equipment – struggled to douse the raging fires.

The thick haze has disrupted flights in Riau, Jambi, South Sumatra and Kalimantan, and forced schools to close temporarily.

There were 616 hot spots detected yesterday in West Kalimantan alone, reported Kompas. But light rain provided some respite in Riau, increasing visibility in the capital as well as the northern parts of the province, according to Antara news agency.

Mr Syaikhul Islam Ali, an MP in the environment committee, blamed weak law enforcement for the recurring problem of forest fires. "Destroying forests, whether on a small or big scale, is a serious crime. The environment minister should not be reluctant. Whoever the culprits are, give them stern punishment." (k)

Source: http://www.thejakartapost.com/news/2015/09/10/10-firms-probed-over-indonesia-forest-fires.html

In haze, Indonesia braces for the worst

Jakarta Post - September 9, 2015

Syofiardi Bachyul Jb and Rizal Harahap, Padang/Pekanbaru – Thick haze produced by land and forest fires has continued to blanket several parts of Sumatra and Kalimantan, forcing local authorities to temporarily shut down schools and prompting airlines to ground their aircraft on safety concerns.

In West Sumatra, the administrations of Payakumbuh municipality, Limapuluh Kota and Dharmasraya regencies, have temporarily shut down all schools from Tuesday until Thursday to prepare for the impact of worsening haze in their respective regions.

"Students were told to take days off, starting today. My daughter, who is a ninth grader, is studying at home," Payakumbuh resident Yulfian Azrial told The Jakarta Post on Tuesday.

West Sumatra Health Agency head Rosnini Savitri said almost all regions in the province were covered in haze on Tuesday, with Dharmasraya, Limapuluh Kota and Payakumbuh suffering the most.

"Fortunately, this is not the first time local residents have experienced this [haze]. They are now better prepared to face it and understand the impact of haze on their health," Rosnini said.

The Jambi municipal administration also sent all students home on Tuesday. The administration's spokesperson, Abu Bakar, said the measure had to be taken as air quality in the Jambi provincial capital had reached a dangerous level and could put children's health at risk.

Local authorities in many parts of the country, particularly Sumatra and Kalimantan, have been struggling over the past few months to extinguish massive land and forest fires triggered mainly by this year's extended dry season.

In Riau, the country's largest oil-producing region, the province's health agency reported that 15,234 people had suffered from haze-related illnesses, with the majority of them suffering from acute respiratory infection (ISPA).

Riau Health Agency head Andra Sjafril said on Tuesday that air quality in the province had reached an "unhealthy" level, with visibility in the morning ranging from 100 to 400 meters.

The management of Sultan Syarif Kasim II International (SSK) Airport in Pekanbaru also reported that low visibility in the Riau provincial capital had disrupted 22 flights to and from the airport on Tuesday.

"Sixteen flights were delayed while six others have been canceled," SSK II general manager Dani Indra Irawan said, as quoted by Antara news agency.

In Central Kalimantan, the provincial transportation agency also reported that, from Aug. 22 to Sept. 6, 50 flights scheduled to leave or arrive in the province had been canceled while 80 others had experienced delays due to the fluctuating intensity of haze in the province.

"Most [flight] cancellations and delays occurred in the morning when visibility was only 700 meters," the agency's air transportation division head, M. Kasturi told Antara.

Haze from Sumatra was also reported to have reached neighboring Singapore and Malaysia. Several areas in western Malaysia, including the capital Kuala Lumpur, recorded unhealthy air quality, the AFP reported on Tuesday.

Meanwhile, Singapore's National Environment Agency (NEA) on Tuesday called on people in the country to take preventive measures to minimize health impacts from the haze, which has been predicted to blanket the city-state until Wednesday.

"Given the air quality forecast for the next 24 hours, healthy people should reduce prolonged or strenuous outdoor physical exertion," the NEA said in its advisories.

In response to the worsening haze and escalating pressure from the public, the Indonesian government announced on Tuesday that it would freeze or revoke permits of concession holders whose land had been burned.

The Environment and Forestry Ministry, as the coordinator of the newly established haze emergency national task force, said that the government had decided to impose administrative sanctions even before the ministry took the cases to court.

"The Environment and Forestry Ministry decided to take a new approach. While the legal proceedings [of forest fires] continue, decisions need to be made and steps need to be taken regarding the permits of the firms in question," Minister Siti Nurbaya Bakar told a press conference at her office in Jakarta.

During his recent visit to Ogan Komering Ilir regency in South Sumatra, among the regions hit hardest by forest fires, President Joko "Jokowi" Widodo instructed the government to revoke the concession permits of palm oil company PT Tempirai Palm Resources.

[Hans Nicholas Jong in Jakarta and Jon Afrizal in Jambi contributed to the article.]

Source: http://www.thejakartapost.com/news/2015/09/09/in-haze-ri-braces-worst.html

Health & education

Child mortality down significantly

Jakarta Post - September 12, 2015

Hans Nicholas Jong, Jakarta – Indonesia's child mortality has declined substantially thanks to government and civil society interventions, a new global UNICEF report says. Yet, the country's achievement is still being held back by the high underage marriage rate.

The report "Promise Renewed: 2015 Progress Report" said that the Indonesian under-5 mortality rate currently stands at 27 deaths per 1,000 live births, compared with 85 deaths per 1,000 live births in 1990.

This drop has saved more than 5 million Indonesian children who would have died if the mortality rate had remained at 1990 levels. In 1990, an estimated 395,000 children died in the country before reaching their fifth birthday. This number has come down to 147,000 in 2015.

"Saving the lives of millions of children is one of Indonesia's great achievements over the past 25 years," said UNICEF Representative Gunilla Olsson. "This progress is the result of sustained action by the country's leaders – to make saving children's lives a policy priority and to scale up coverage of key interventions."

The report highlighted that Indonesia is among 24 out of 81 low and lower- middle income countries that achieved a two-thirds reduction in under-5 mortality – the target of Millennium Development Goal Four.

The Health Ministry's director general of mother and child health and nutrition supervision, Anung Sugihartono, said that the achievement could be attributed to the government's vaccination program.

"We are quite advanced in our preventative measures because the immunization program for children is already robust, starting from anti tetanus, polio, diphtheria to measles, we've done it all," he told The Jakarta Post on Friday.

Simple, high-impact, cost effective solutions coupled with economic growth also likely contributed to this dramatic reduction of young child deaths, including exclusive breastfeeding and the prompt diagnosis and treatment of common childhood illnesses.

"But approximately 150,000 Indonesian children still die every year before celebrating their fifth birthday. This is unacceptable," Olsson said. "And we also observe that much of the progress in reducing child mortality in Indonesia occurred during 1990 to 2005 while it has slowed considerably in the last decade."

Furthermore, the report found that almost half of under-five deaths occurred in the first month after birth and can be attributed to complications from premature birth, asphyxia and severe infections.

"The number of marriages involving people aged 15 to 19 is still high, even though they fall within the category of children. Looking at it from the nutritional aspect, 57.8 percent of these teenagers are anemic. If they suffer from anemia and get pregnant, what happens to their babies? This causes their babies to weigh less than 2,500 grams. These babies have a higher risk of death as their lungs have not developed properly and they are more prone to infections," Anung said.

Babies who are born with less-than-normal weight also affects their parents' attitudes in raising them, further endangering them.

"If you have a small baby, you would think twice before giving it a vaccine. You would be concerned whether it could withstand the vaccine or not. On the other hand, risks of contamination from germs are everywhere," said Anung.

He deplored the recent failure to increase the minimum legal age of marriage for girls from 16 to 18 by judicial review at the Constitutional Court.

The plaintiffs, led by the Women's Health Foundation (Yayasan Kesehatan Perempuan), lobbied to raise the minimum marriageable age for girls from 16 to 18 to reduce the number of underage marriages in the country, which has one of the highest rates in the world and the second-highest in ASEAN after Cambodia.

The court comprehensively dismissed the plaintiffs' arguments, saying that there was no guarantee increasing the marriageable age for females would reduce the rate of divorce, domestic violence and other social problems.

Source: http://www.thejakartapost.com/news/2015/09/12/child-mortality-down-significantly.html

Unicef praise for Indonesia on child mortality drop

Jakarta Globe - September 9, 2015

Jakarta – Indonesia has more than halved its child mortality rate in the past 25 years, but malnutrition remains a major hurdle, a new Unicef report shows.

The report, titled "Promise Renewed: 2015 Progress Report," states that the country's under-5 mortality rate currently stands at 27 deaths per 1,000 live births, compared with 85 deaths per 1,000 live births in 1990.

"This drop has saved more than five million Indonesian children who would have died if the mortality rate had remained at the 1990 levels," said a statement distributed in Jakarta and obtained by the Jakarta Globe on Wednesday.

The report showed that the number of Indonesian children who died before reaching their fifth birthday had fallen to 147,000 deaths in 2015, or nearly 63 percent less than the 1990 number of 395,000.

The report also noted that Indonesia was among 24 out of 81 low and lower- middle income countries that achieved a two-thirds reduction in under-five mortality, which is the target of the fourth objective in the Millennium Development Goals (MDGs) set in 2000.

"Saving the lives of millions of children is one of Indonesia's great achievements over the past 25 years," Unicef representative Gunilla Olsson said in the statement.

"This progress is the result of sustained action by the country's leaders – to make saving children's lives a policy priority and to scale up coverage of key interventions."

Unicef said simple, high-impact, cost effective solutions coupled with economic growth likely contributed to the dramatic reduction of under-5 deaths in Indonesia, including expanding coverage of immunization, encouraging breastfeeding and the prompt diagnosis and treatment of common childhood illnesses.

"But approximately 150,000 Indonesian children still die every year before celebrating their fifth birthday. This is unacceptable," Olsson noted.

"We also observe that much of the progress in reducing child mortality in Indonesia occurred during 1990-2005 while it has slowed considerably in the last decade," she added.

The numbers in the report also hide significant disparities of the lowering child mortality trend across the diverse archipelago, Olsson pointed out.

"Available data suggests that child mortality in Papua is more than three times that of Jakarta and additional disparities exist across wealth quintiles," she said.

Malnutrition

Olsson called on the Indonesian government to address some of the more complicated causes of child deaths in order to reduce child mortality post-MDG.

Almost half of under-5 deaths occur in the first month after birth and can be attributed to complications from premature birth, asphyxia and severe infections, Olsson said.

"Curbing this requires a health system that is capable of providing round- the-clock high quality services in all parts of the country," she said.

Furthermore, Indonesian children go on to face many other challenges before they turn 5. A third of Indonesia's children are stunted, or suffering from chronic malnutrition, and 52 million Indonesians practice open defecation – contributing to ill health.

"Moving forward, it is vital that child mortality is tracked, monitored and addressed at a sub-national level to improve current discrepancies. There are also opportunities to increase access to evidence-based interventions that can further reduce child mortality. Interventions such as oral rehydration solution and zinc for diarrhoea are underutilized and a number of new efficacious vaccines have not yet been introduced in Indonesia," Olsson said.

Going forward

Later this month, 193 governments will meet at United Nations headquarters to discuss the new Sustainable Development Goals (SDGs) – a roadmap for human progress over the next 15 years.

One goal will be to bring the rate of under-5 mortality down to 25 deaths (or fewer) per 1,000 live births in every country by 2030.

"Indonesia needs to build on its success and reduce child mortality rates further in the coming years. We remain committed to working together and ensuring that progress occurs in every part of the country. The SDG goal on under-5 mortality can only be considered achieved if it is met in every province and every district across the archipelago," Olsson said.

Source: http://jakartaglobe.beritasatu.com/news/unicef-praise-indonesia-child-mortality-drop/

Graft & corruption

Police proceed with Bambang's case

Jakarta Post - September 11, 2015

Jakarta – The Attorney General's Office (AGO) said on Thursday that the National Police had yet to hand over suspended Corruption Eradication Commission (KPK) leader Bambang Widjojanto, who is a perjury suspect, and the evidence mentioned in his dossier.

"There has yet to be any communication with the police investigators on when they will hand over the suspect and evidence," AGO spokesman Amir Yanto told The Jakarta Post.

Although the AGO declared Bambang's case dossier complete in May, the National Police's recently retired director for special economic crimes, Victor E. Simanjuntak, said the police force was waiting until Zulfahmi Arsyad had been sentenced in the same case before handing over the suspect and evidence.

The Central Jakarta District Court sentenced Zulfahmi to seven months in jail for his role in abetting Bambang, who at the time worked as a lawyer handling an election dispute heard by the Constitutional Court in 2010, by encouraging witnesses to commit perjury during a court hearing.

Amir explained that according to the Criminal Law Procedures Code (KUHAP), the AGO did not have the authority to demand that the evidence and suspect be handed over in order for the prosecutors to prepare to go to court.

"All we can do is wait. It is up to the investigators when they want to hand everything over," he said.

According to the KUHAP, investigators should hand over evidence and suspects as soon as possible after the AGO declares the case dossier complete.

Source: http://www.thejakartapost.com/news/2015/09/11/national-scene-police-proceed-with-bambang-s-case.html

Court grants extended visits for graft suspect Kaligis

Jakarta Globe - September 10, 2015

Jakarta – The Jakarta Anti-Corruption Court on Thursday granted a plea lodged by high-profile lawyer turned graft suspect Otto Cornelis Kaligis to receive additional visits from family and colleagues.

"Considering the great number of visitors including legal advisers, family and colleagues, the court has granted an additional two hours of visiting time every Saturday," Judge Sumpeno said at a hearing on Thursday, noting that the visiting hours would be between 10 a.m. and noon.

In his plea, Kaligis listed a total of 257 people who he said wished to visit him. He also referred the court to Indonesia's Criminal Code Procedures (Kuhap), which does not specify visiting days for detainees on remand.

Kaligis was arrested by the Corruption Eradication Commission (KPK) on July 14 in connection with a bribe allegedly paid by one of his subordinates to three judges at the Medan State Administrative Court (PTUN) in North Sumatra in a case being heard there. The KPK has also arrested the North Sumatra governor, Gatot Pujo Nugroho, in the same case.

The KPK alleges that Kaligis, who runs one of the largest law firms in Indonesia, of bribing the PTUN's Judge Tripeni in exchange for issuing a ruling in favor of one of the lawyer's clients, the provincial administration's treasurer, Ahmad Fuad Lubis. Ahmad stands accused of misappropriating social aid funds from the provincial budget in 2012 and 2013.

Gatot and his wife, though detained, have not yet been indicted in the case.

Source: http://jakartaglobe.beritasatu.com/news/court-grants-extended-visits-graft-suspect-kaligis/

PDI-P calls Suryadharma a liar

Jakarta Post - September 9, 2015

Haeril Halim and Margareth S. Aritonang, Jakarta – The ruling Indonesian Democratic Party of Struggle (PDI-P) on Tuesday lashed out at former religious affairs minister Surydharma Ali for claiming its chairperson Megawati Soekarnoputri made a 2012 haj illegally by using haj places intended only for registered pilgrims.

PDI-P secretary-general Hasto Kristiyanto described the statement as "a total lie" and accused the former chairman of the United Development Party (PPP) of trying to bring politics into his legal woes by dragging others into his graft case.

"I have consulted [with Ibu Megawati] about it and it turned out that Pak Suryadharma Ali was making sensationalist claims through his court statements," Hasto told The Jakarta Post on Tuesday.

Hasto, however, did not confirm if Megawati, her late husband Taufiq Kiemas and their group of 50 people who flew to Saudi Arabia in 2012 used places intended for regular pilgrims or those alloted for them legally.

A promotional video posted by Maktour travel agent, which organized haj services, on YouTube in November, 2012, showed Megawati and her entourage using the company's services.

The caption of the video read: "Pak Taufiq Kiemas, Ibu Megawati and families about to perform haj in 2012 through Soekarno-Hatta International Airport. The entourage includes Public Housing Minister Djan Faridz [now former], [PDI-P senior politician] Pramono Anung and [Megawati's daughter] Puan Maharani. God bless their holy trip."

In his defense statement against the KPK's indictment at the Jakarta Corruption Court on Monday, Suryadharma said that he had channeled 50 of the around 2,000 unused haj seats, intended for registered pilgrims, to help Megawati and her husband make their trip.

Other alleged beneficiaries of the haj places were former vice president Boediono. Suryadharma claimed that he gave 100 seats to accommodate his entourage of more than 100 people from the Presidential Security Detail (Paspampres).

There are currently some two million people on the waiting list due to high number of people registered to go on haj in the past 10 years.

Suryadharma also claimed that he gave 70 haj seats to former defense minister Purnomo Yusgiantoro and 10 to People's Consultative Assembly (MPR) former speaker Amien Rais, as well as two places to popular TV talk show host Karni Ilyas and six for KPK officials and dozens to representatives from various media outlets.

The KPK, which investigated Suryadharma in the haj scandal, also denied Suryadharma's claims saying that none of its officials or investigators received illegal haj seats from the Religious Affairs Ministry. "We have checked with our officials and found the statement to be false," KPK spokesperson Yuyuk Andriati said on Monday.

Separately, Religious Affairs Ministry inspector general M. Jasin said that so far there was no regulation that could facilitate punishment for active and former state officials, who are not part of the haj organizing committee, for receiving haj seats illegally from graft-tainted officials like Suryadharma.

"The former and current officials should first think of whether they deserve the haj places or not. The point is, [after the revelation of the haj graft scandal], there are no more state officials who can get seats allocated for registered pilgrims," Jasin told the Post on Tuesday.

Jasin further said that public officials either active or retired like Megawati, Boediono and Amien should use the regular process if they want to go on haj, except if they have received special invitation from the Saudi Arabia government.

Source: http://www.thejakartapost.com/news/2015/09/09/pdi-p-calls-suryadharma-a-liar.html

Megawati back on KPK's radar after Suryadharma's hajj revelation

Jakarta Globe - September 8, 2015

Jakarta – Indonesia's antigraft commission says it may pursue investigations into individuals said to have benefited from free hajj trips handed out by a former minister now on trial for corruption, including former president Megawati Soekarnoputri.

Suryadharma Ali, the ex-minister charged with embezzlement and irregular awarding of contracts to provide accommodation for Indonesian pilgrims in Mecca and Medina, testified at his trial on Monday that he handed out hundreds of free slots on the annual pilgrimage in 2012 to senior officials, even as thousands of ordinary Indonesians continue to languish on a waiting list that in some regions runs 17 years.

Among those said to get free hajj allocations are Megawati, with 50 seats; former vice president Boediono, with 100 seats; and former defense minister Purnomo Yusgiantoro, who received 70 seats.

The Corruption Eradication Commission (KPK), which is prosecuting the case against Suryadharma, said there might be grounds to investigate the officials mentioned, but not right away.

"The case may be developed [in that direction] after a final, binding court verdict is issued against [Suryadharma]," Indriyanto Seno Adji, a KPK commissioner, said in a text message to reporters on Monday in response to the former minister's testimony.

"We cannot decide yet if those individuals can be definitely held responsible before a legally binding verdict is issued by the court [in Suryadharma's case]," he added.

In addition to handing out the free hajj trips to cronies, Suryadharma is charged with bypassing the required tender process in appointing 17 Saudi firms and hotel operators to provide accommodation and catering for Indonesian pilgrims in the Muslim holy cities of Mecca and Medina.

The alleged crime "cost the state Rp 27.3 billion and 17.96 million Saudi riyal ($4.79 million)," prosecutors from the KPK said in their indictment.

Suryadharma also faces charges of embezzling Rp 1.8 billion ($125,800) of operational funds for his personal use. He claims, though, that he merely "borrowed" the money and had every intention of paying it back (he still has not done so), and that bypassing the tender for the hajj housing project was a necessary move to finalize the pilgrims' accommodation in time for the hajj.

He faces a maximum life sentence in prison and fines of up to Rp 1 billion if found guilty of all the charges.

Source: http://jakartaglobe.beritasatu.com/news/megawati-back-KPKs-radar-suryadharmas-hajj-revelation/

Agriculture & food security

Rice prices climb as prolonged dry season disrupts production

Jakarta Post - September 14, 2015

Arya Dipa, Wahyoe Boediwardhana and Suherdjoko, Bandung/Surabaya/Semarang – With many rice fields on the brink of harvest failure as a result of this year's extended dry season, rice prices across the country have gradually increased in recent weeks, forcing people to spend more on the country's main staple food.

In West Java, one of the country's largest rice-producing regions, the average price of rice was recently recorded at Rp 9,678 (68 US cents) per kilogram, according to data from the Food Price Information Portal jointly managed by the central bank and 27 regional administrations in the province.

In the provincial capital Bandung, the average price of medium-quality rice, for example, stood at Rp 9,800 per kg last week, a slight increase from Rp 9,752 recorded in August.

West Java Agriculture and Food Crops Agency head Diden Trisnadi expressed concern that rice production in the province might decrease as a result of the extended dry season, which has left many farmers struggling to properly irrigate their land.

"If the drought goes on as is, our [rice] production could drop to only 11.6 million tons," Diden said, adding that the Central Bureau of Statistic (BPS) had previously estimated that the province's rice production could reach 12.1 million tons this year.

West Java currently has 936,000 hectares of rice fields. Drought, according to Diden, has affected at least 67,000 ha of rice fields in 20 regencies and municipalities in West Java, with Indramayu the worst hit area.

"Of that total, over 7,400 hectares have already experienced harvest failure," Diden said adding that he nonetheless remained optimistic that the province's rice production this year would still be sufficient to meet the demands of its 46 million inhabitants.

Meanwhile, in East Java, another major rice-producing region, rice prices have increased by almost Rp 1,000 per kilogram compared with those recorded last month.

However, some farmers attribute that price increase to their reluctance to sell off their unhusked rice to traders in the hope of much better prices to come.

"I'm keeping around 10 tons of unhusked Lodaya rice from my latest harvest," said Gayuh Satria Wicaksono, a farmer from Kunti subdistrict, Ponorogo.

The Meteorology, Climatology and Geophysics Agency (BMKG) predicts that the El Niqo weather phenomenon will extend Indonesia's dry season, which normally takes place between April and September, until November, and affect 18 of the country's 34 provinces.

The government has always endeavored to keep the price of rice stable. The commodity is a key contributor to inflation and price fluctuations could lead to public protests and political instability. A similar price increase is also evident at traditional markets in Central Java, North Sulawesi and Gorontalo.

Turdin, a rice trader in Bone Bolango regency, Gorontalo, said he currently sold several types of rice for between Rp 8,500 and Rp 9,000 per liter. Previously they were sold for between Rp 7,500 and Rp 8,000 per liter.

Separately, State Logistics Agency's (Bulog) procurement director Wahyu acknowledged that the current drought had affected the agency's rice stock, as many farmers had now preferred to store their rice rather than selling them to Bulog, which sets buying prices for rice lower than the market prices.

Wahyu, however, said that the agency currently had 1.7 million tons of rice that would be sufficient to meet the country's rice demand until the end of the year. "I can assure that our rice supply is adequate until December," he said on Sunday. (saf)

[Lita Aruperes in Manado and Syamsul Huda M. Suhari in Gorontalo contributed to the article.]

Source: http://thejakartapost.com/news/2015/09/14/rice-prices-climb-prolonged-dry-season-disrupts-production.html

Parliament & legislation

House ethics probe into Trump fiasco begins as Hary Tanoe role confirmed

Jakarta Globe - September 12, 2015

Jakarta – The House of Representatives' Ethics Council has launched a probe into potential violations committed by House Speaker Setya Novanto and his deputy, Fadli Zon, in what has been dubbed "the Trump fiasco."

The controversy arose after Setya and Fadli attended a campaign event for US presidential hopeful Donald Trump on Sept. 3 in New York.

Sufmi Dasco, a deputy chairman at the ethics council, said a team was working to verify video recordings of the encounter at the Trump Tower. The House Secretariat is also being consulted to confirm how many legislators were part of the group.

"We are still verifying all the files to find out whether this case is worth to be brought to hearings or not," Sufi said.

Setya, a Golkar Party politician, has also drawn fire after being spotted wearing a Swiss-made Richard Mille watch, purported to be worth $140,000, at the event. He said on Monday that he believed no ethics had been violated and welcomed a possible probe by the ethics council.

Lawmakers from Indonesia had gone to New York to attend the Fourth World Conference of Speakers of Parliament hosted by the International Parliamentary Union, a United Nations agency.

Tommy Legowo, an analyst from the voter advocacy group Concerned Citizens for the Indonesian Legislature (Formappi), said the appearance of Setya and Fadli at the Trump event went against the Constitution and 1999 Law on Foreign Affairs, which highlights the principle of Indonesia's "free and active" foreign policy.

The event they attended saw Trump sign a loyalty pledge to the Republican Party for his support of the eventual nominee in next year's election, which Tommy said should be seen as part of a political campaign.

Hary Tanoe

Meanwhile, Arya Sinulingga, the corporate secretary of media conglomerate MNC, confirmed that chief executive Hary Tanoesudibjo had facilitated the meeting between the legislators and Trump.

"Yes, it was [Hary]. So what?," he said when contacted by journalists on Thursday. When asked what the goal of the meeting was, Arya said it was to discuss investment and to strengthen political networks.

The presence of Setya was not MNC's concern and it would not be a problem if Hary was summoned to a hearing at the House, he said.

Hary, a Surabaya-born businessman, has himself forayed into national politics with ties to the National Democrat Party (NasDem) and the People's Conscience Party (Hanura) before establishing the United Indonesian Party (Perindo).

MNC, a conglomerate with a diversified businesses ranging from media and property companies, to infrastructure and financial services, has a long- established business relationship with Trump. Most recently, MNC announced plans to develop a six-star hotel in Sukabumi, West Java, in cooperation with the Trump Hotel Collection, a luxury chain owned by the American tycoon.

Source: http://jakartaglobe.beritasatu.com/news/house-ethics-probe-trump-fiasco-begins-hary-tanoe-role-confirmed/

Golkar apologizes for Setya's NY mishap

Jakarta Post - September 9, 2015

Tama Salim, Jakarta – The Golkar Party has issued an official apology for a publicity stunt involving House of Representatives Speaker Setya Novanto appearing at US presidential hopeful Donald Trump's campaign event last week in New York.

Bambang Soesatyo, the Golkar faction secretary at the House, offered an apology on behalf of the party, as he maintained that the introduction of Setya by Trump in public was uncalled for and that the party would not interfere with further motions to bring the House speaker before the House's Ethics Committee (MKD).

"Golkar will not take sides or report those involved, although we must admit that the meeting [in New York] was not an elegant move, considering how Trump is still just one candidate among many others," Bambang told The Jakarta Post on Tuesday.

"Golkar hopes that our [lawmaker] colleagues will be able to understand [Setya's] actions, even though it has incited anger [in many circles]. It's barely been a year since he became the House speaker, so he may still be clumsy sometimes. We humbly beg for your forgiveness."

Bambang said that the party would respect the decision of the ethics council, whatever the outcome, while also hoping that the House leaders involved would only receive a verbal warning.

He said that the party had not yet received a statement from Setya, who will be subject to questioning upon his return from the US. As a result, Golkar's House faction has yet to take a stance on the matter.

Bambang, who is a member of House Commission III overseeing legal affairs, also lambasted Trump as a figure that the Indonesian public perceives as negative.

"It is regrettable that Trump's image is not so positive among the Indonesian people. He has a reputation for being a gambling king, playboy, racist, and is stigmatized as anti-Islam," he said.

On Monday, the House's ethics council slammed the controversial meeting, announcing that it would investigate lawmakers who publicly appeared at Trump's press conference after meeting him at his office in New York on Thursday.

According to council member Sarifuddin, if the lawmakers were proven to have violated their code of ethics, the council could impose light, medium or heavy sanctions.

A light sanction would be a written warning about their misbehavior. The medium punishment would be their removal from their positions at the House and the heaviest a recommendation for dismissal.

Seven lawmakers reported Setya and Deputy Speaker Fadli Zon to the council, alleging that the attendance of their colleagues had tarnished the image of the nation.

They were Adian Napitupulu, Budiman Sudjatmiko, Charles Honoris and Rieke Diah Pitaloka from the Indonesian Democratic Party of Struggle (PDI-P), Amir Uskara from the United Development Party (PPP), Maman Imanulhaq from the National Awakening Party (PKB) and Inas Nasrullah Zubir from the Hanura Party.

Meanwhile, Fadli was out to take revenge against members of the House who had reported him to the ethics council because of his attendance at the real estate magnate's campaign event at Trump Tower.

Fadli is now planning on reporting those members to the ethics council as well. "I will report them to the ethics council for making stuff up and spreading false information," Fadli told reporters on Tuesday as quoted by Antara news agency.

Source: http://www.thejakartapost.com/news/2015/09/09/golkar-apologizes-setya-s-ny-mishap.html

Jakarta & urban life

Thousands unite to halt evictions, seek dialogue

Jakarta Post - September 15, 2015

Dewanti A. Wardhani, Jakarta – Evicted residents and people facing eviction have come together to fight against what they call unjust evictions by the city administration.

During a discussion held by Jakarta Legal Aid Foundation (LBH) over the weekend, dozens of representatives of thousands of families agreed to cooperate to put a temporary stop to the ongoing evictions and seek to meet city officials for a solution and fight for their rights.

The discussion attracted dozens of evictees from Pinangsia in West Jakarta, and Kampung Pulo in East Jakarta, and people currently facing eviction from Bidaracina and Jatinegara Kaum in East Jakarta and Ancol in North Jakarta.

"We must stop these evictions, at least until we can sit down with the city administration to negotiate and find a solution," said Robin, a Bidaracina resident. He and his family will soon be evicted to make room for the underground tunnel project which connects the Ciliwung River to the East Flood Canal (KBT) to minimize flooding in East Jakarta.

Robin said that the city administration must give compensation to all evictees, whether or not they had land ownership certificates. He said that the he would continue to fight for his rights, despite Jakarta Governor Basuki "Ahok" Tjahaja Purnama's tough eviction policy.

Ahok has repeatedly said that he would not give compensation to residents without land ownership certificates and would only relocate them to available low-cost apartment units. He has also said that most residents, including those who live in Kampung Pulo and Pinangsia, lived on land owned by the city administration.

The Urban Poor Consortium (UPC) has recently released a review of regulations, saying that according to several laws, residents are entitled to compensation even if they are on state land. UPC referred to Article 3 in Law No. 2/2012 on Land Procurement for Public Facility and Article 17 in Presidential Regulation No. 71/2012.

"Residents deserve to be heard and receive compensation based on a consensual agreement between them and the city administration," Robin said.

Further, Ardi, a resident of Bukit Duri, located just across the river from Kampung Pulo, said that he and his neighbors would fight for what was rightfully theirs.

"We are residents who were not designed to live in apartments. We want to have a dialogue with Ahok and we want him to understand our situation," Ardi said.

LBH Jakarta lawyer Matthew Michele Lenggu said that all evictees deserved compensation, whether or not they had land ownership certificates. He added that the city administration often failed to prove that the land occupied by residents was owned by the city administration.

"Most residents do not have land ownership. However, the city administration also does not have evidence that they own those plots of land," Matthew said during the discussion. Thus, he argued, the residents deserved compensation.

"Compensation for the residents can be in the form of money, land, resettlement, shares, or in other forms that have been agreed upon between the institution and the residents. What must be underlined here is that the form of compensation must be agreed upon between the city administration and the evicted residents," Matthew said.

Matthew argued that the form of compensation provided by the city administration, which has been low-cost apartment units, had not been discussed with the residents.

He said that LBH Jakarta would facilitate the residents' discussions and advocate for them in order to meet with Ahok and his subordinates.

Source: http://www.thejakartapost.com/news/2015/09/15/thousands-unite-halt-evictions-seek-dialogue.html

120 civil servants dismissed, 2500 demoted in Jakarta

Jakarta Post - September 15, 2015

Jakarta – Jakarta Governor Basuki "Ahok" Tjahaja Purnama has dismissed 120 civil servants and demoted 2,500 others, citing various reasons. Another 30 civil servants, Ahok says, are in the process of dismissal.

According to the governor, most of those who have lost their jobs in the Jakarta city administration have done so because they received bribes or were frequently absent from work.

The disciplinary actions have occur over the course of Ahok's governorship, since his inauguration on Nov. 19 last year when he replaced Joko "Jokowi" Widodo, who was elected president.

The governor said that he did not tolerate any civil servant receiving bribes. "Even if you steal small amount of money like Rp 1.5 million (US$104), you will lost your position," the governor declared, as reported by beritajakarta.com.

Ahok said the dismissals of the civil servants have been in accordance with Law No. 5/2015 on the State Civil Apparatus (ASN), which Ahok himself helped to draft when he was a member of House of Representatives legal commission.

He said that in the past, it had been difficult to dismiss civil servants because of the absence of a legal framework, but with the birth of the ASN law, they could be dismissed as long as they had made a serious mistake.

Ahok did not give the names of the dismissed officials, but said they ranged from agency head level to low-ranking staff. (bbn)

Source: http://www.thejakartapost.com/news/2015/09/15/120-civil-servants-dismissed-2500-demoted-jakarta.html

Uber mines commuter community for support amid crackdown

Jakarta Globe - September 14, 2015

Jakarta – The company behind the popular but controversial ride-hailing mobile app Uber is campaigning for support among its Indonesian users to ensure it has "a permanent home" in the country.

The call comes days after the Jakarta Police announced the launch of a task force to "hunt down" Uber drivers, and the Bandung administration decreed a ban on the service in the West Java capital.

"If successful, this task force will destroy 6,000+ driver jobs and limit your choice of how you travel around your city," Uber Technologies wrote on a website to garner online support for the service.

"Cities all over the world are embracing ride-sharing as a way to address the shortcomings of mass transit, reduce congestion, and connect previously isolated neighborhoods," it added. "These are benefits that people are experiencing right now in more than 300 cities around the world."

The petition addresses Jakarta Governor Basuki Tjahaja Purnama and Bandung Mayor Ridwan Kamil and has drawn more than 22,000 signatures since it went up on Saturday. Its goal is to reach 25,000.

Uber, which began operating in Indonesia in August last year, has also taken its campaign to Twitter with the hashtag #UBER4Indonesia.

The service has faced several regulatory and legal hurdles in most countries where it operates. In Indonesia, it faces stern opposition from licensed taxi operators, regulators and the police, all of whom argue that the online service is not compliant with prevailing public transportation regulations.

Several Uber drivers have been apprehended in raids by officials previously, but none were ever charged, according to Uber.

Commuters in Jakarta, though, have largely welcomed the arrival of Uber, which they tout as being cheaper and offering a better service than regular taxis.

We need more reliable and affordable ride! #Uber4Indonesia – Lia Kurrota (@auliaka) September 12, 2015

"Claim our rights as consumers and it's time that Organda" – the association of public transportation operators – "clean itself up #UBER4Indonesia," Twitter user @kucink wrote on Monday.

Another Twitter user, @panji_sudoyo, wrote: "Signed the petition because they provide a much-needed, lower cost, higher-quality service. Nuff said. #UBER4Indonesia."

Source: http://jakartaglobe.beritasatu.com/news/uber-mines-commuter-community-support-amid-crackdown/

Activists: Jokowi should stop evictions

Jakarta Post - September 14, 2015

Jakarta – A group of activists calling themselves the Indonesian People's Movement (GDRI) has criticized the government for sidelining the poor in its development projects.

GDRI member Sri Palupi said that during the Soeharto era, poor people were also evicted to make way for development projects.

"From the Susilo Bambang Yudhoyono era until the current Joko "Jokowi" Widodo mental revolution era, the poor have always been evicted under the pretext of orderliness, environmental restoration and cleanliness," said Sri, a researcher at the Institute for Ecosoc Rights.

Both styles had the same substance, she claimed, and did not provide justice to the poor. "If the reason behind an eviction is to preserve the environment, then why doesn't the government tear down malls and hotels?" Sri added.

One of President Jokowi's election campaign promises was to focus on the upholding of human rights and the struggle of the poor, the GDRI said.

Environmentalist Chalid Muhammad said Jokowi should give clear guidelines through the Home Ministry to all governors and mayors on how to use a persuasive approach in development projects.

"It is important for Jokowi to instruct all governors and mayors not to use a violent approach in evictions," Chalid said.

Source: http://thejakartapost.com/news/2015/09/14/national-scene-activists-jokowi-should-stop-evictions.html

Amid Bali junket disaster, Jakarta councilors bemoan lack of spending money

Jakarta Globe - September 12, 2015

Jakarta – City councilors from Jakarta have come under fire over the cost of their purported "study trip" to Bali, and their only response has been to complain that they don't get enough money to buy souvenirs.

A group of 32 councilors and eight of their staff left Jakarta on a three- day trip to Bali on Wednesday, at a total cost to taxpayers of Rp 341 million ($23,800).

Their agenda there included a trip to the island's public works office – "to ask how they keep the roads so smooth," according to one councilor – as well as a visit to the site of reclamation activities in Benoa Bay.

The main program on their itinerary, though, was a meeting with their counterparts at the Bali provincial legislature, which failed to take place. The Jakarta officials showed up at the council building on Thursday, only to be told that the very people they expected to meet had themselves embarked on a study trip to Yogyakarta.

The Jakarta councilors spent the next 15 minutes taking turns to go to the toilet, before boarding their tour bus and leaving.

They were also scheduled to visit Denpasar's famous "trash bank" – where low-income residents can hand in recyclable waste for money – but only one out of the 32 councilors showed up, according to an official at the site, Ni Luh Oki Damayanti.

Oki told Kompas that the unidentified councilor "took about four photographs, then said goodbye. That was it." Another trash bank official, Made Surya Kencana, said the councilor did not ask any questions about the facility or how it worked.

Donal Fariz, a researcher with Indonesia Corruption Watch, questioned the purpose and value of the trip. For one thing, he said, the public works department in Jakarta was more advanced than that in Bali, so the councilors would learn nothing new from visiting the Bali office.

"It just doesn't make sense, they've got it backward," he said. "Are they going on a study trip or on vacation? If they wanted to study, they could have stayed [in Jakarta]."

Sebastian Salang, from the voter advocacy group Concerned Citizens for the Indonesian Legislature (Formappi), called the visit "a waste of time and money."

The missed appointment with the Bali councilors, he said, "is the kind of thing that proves that there's no urgency to these study trips. They go simply out of a desire to travel."

He also questioned councilors' claims that the meeting was scheduled ahead of time – a claim roundly denied by the secretary of the Bali legislature. "This certainly deserves to be investigated by the council's ethics board," Sebastian said.

Prabowo Soenirman, one of the councilors, acknowledged the criticism over the cost of the trip and the fiasco that was the missed meeting with the Bali councilors, but said all the councilors' activities in Bali had been "beneficial." He added that his one real gripe was that he did not have enough spending money to buy souvenirs for friends and family back in Jakarta.

He noted that each councilor received a per diem of Rp 480,000 for three days, a total of Rp 1.44 million for the entire trip. "I have to dig into my own pocket just to buy souvenirs," Prabowo, from the Great Indonesia Movement Party (Gerindra), said as quoted by Kompas.

Source: http://jakartaglobe.beritasatu.com/news/amid-disaster-junket-bali-jakarta-councilors-bemoan-lack-spending-money/

Armed forces & defense

Asia-Pacific countries urged to boost military, security cooperation

Jakarta Post - September 14, 2015

Nusa Dua – Army forces from countries across the Asia-Pacific region are striving to increase cooperation for the creation of stronger solidarity among institutions, a senior military official has said.

"This will lead to a safer and more peaceful condition in the Asia-Pacific region," Army chief of staff Gen. Mulyono said as quoted by Antara on Monday. He was speaking on the sidelines of the ninth Pacific Armies Chiefs Conference (PACC) and the 39th Pacific Armies Management Seminar (PAMS) in Nusa Dua, Bali, on Monday.

"These conferences and seminars are aimed at increasing cooperation in the military and security fields," Mulyono said. In the conference and seminar, participants discussed several critical issues, such as the strengthening of regional military and security cooperation. They also discussed local policies, which were aimed at strengthening multilateral military and security cooperation, especially in the Asia-Pacific region.

Mulyono said 36 Asia-Pacific countries had joined with PACC and PAMS. "As many as 26 army chiefs of staff are participating in this year's PACC and PAMS events," he said, adding that the events would take place from Sept. 14-17.

Participating countries include Australia, Bangladesh, Canada, Chile, China, France, India, Japan, Malaysia, Nepal, New Zealand, Singapore, Thailand, the US, the Philippines, Tonga and Indonesia as the host country.

Meanwhile, General Mark Alexander Milley of US Army Forces Command said the US government and US military were committed to playing roles in creating stability and safety in the Asia-Pacific region.

General Milley said that the Asia-Pacific region was safe compared to the past when war and conflict was ongoing, particularly in South Korea and Vietnam.

Compared to several countries in the Middle East, such Jordan, Israel and Iraq, as well as Afghanistan in South Asia, the Asia-Pacific region could be categorized safe and peaceful; thus, the US hoped that there would be no conflict affecting countries in the region, he added.

Milley further said there should be ongoing efforts to maintain multilateral relations among countries in the Asia-Pacific region so that they could continue to maintain peace in the region. "I'm certain that the US government will continue to support efforts to maintain peace in the region," he added. (ebf)

Source: http://www.thejakartapost.com/news/2015/09/14/asia-pacific-countries-urged-boost-military-security-cooperation.html

TNI to cut back on weapons procurement

Jakarta Post - September 9, 2015

Nani Afrida, Jakarta – Responding to a planned defense budget cut, Indonesian Military (TNI) chief Gen. Gatot Nurmantyo said that he would order a reduction in the procurement of new weapons.

"[With] the available budget we will try to adjust to our needs. We will evaluate and make a priority list," Gatot told reporters on the sidelines of a meeting with the House of Representatives.

He said that when deciding on weapons procurement, the military would consider what constituted the actual threats the country was confronting.

For instance, in 2016 the Air Force could prioritize buying radars and Sukhoi SU-35 jet fighters, while the Navy could aim to procure submarine- kilo class, frigates and radars.

He declined to give details on the Army's priority list. "As we plan to turn Indonesia into a maritime axis, we should strengthen our presence in airspace and the sea," Gatot said.

He also said that there was little that the TNI could do to change the budget-cut plan, as it was considered final by the government.

It was reported that the government planned to cut its defense allocation for next year by 6.3 percent, or Rp 7 trillion (US$490 million), to Rp 95.8 trillion. The lower budget allocation for the defense sector could also affect the welfare of soldiers and weapon systems procurement.

In recent years, the government has continued to increase budget spending. In 2010, the government gave Rp 17 trillion to the Defense Ministry but in 2015, the amount increased to Rp 102.3 trillion.

Despite the reduction for next year, the defense budget is the second- largest allocation in the draft state budget after the public service sector with an earmarked Rp 764 trillion.

Although no details are available yet on the exact reduction for 2016, House Commission I overseeing defense and foreign affairs chairman Mahfudz Siddiq said that weapon systems procurement would suffer the most. Mahfudz also declined to say which weapons system projects would be shelved.

Defense Minister Ryamizard Ryacudu previously revealed that several weapons procurement plans might be postponed or scrapped due to the weak rupiah.

Some of the available funds available would be used to finance other important procurements, such as communication equipment and radars, he said. "There may be a slight change in procurement plans," he said recently.

Initially, the defense sector and military needed an additional Rp 35 trillion to achieve the Minimum Essential Force (MEF) target. The additional funding was to fill the gap, as the rupiah continued to slide against the US dollar.

"When we drew up the draft 2015 state budget, we assumed that one US dollar would be worth Rp 12,500. The fact now is that one dollar is equal to Rp 14,000," Gatot said.

Mufti Makarim, a military expert from the Institute for Defense and Peace Studies (IDPS), said that the decision to decrease the defense budget was a tough choice faced by President Joko "Jokowi" Widodo, who planned to focus more on infrastructure development to accelerate economic growth.

"The President must have carried out a thorough assessment before cutting the military budget," Mufti said, adding that a consequence of the budget cut was a slowdown in the pace of the transformation of the TNI to becoming a modern military.

Previously, lawmakers from Commission I expressed similar concerns about the government's decision as it had earlier planned to revamp the country's weapons and associated defense systems.

Source: http://www.thejakartapost.com/news/2015/09/09/tni-cut-back-weapons-procurement.html

House questions defense budget cut

Jakarta Post - September 8, 2015

Nani Afrida, Jakarta – For the first time in the past five years, the government is planning to cut budget allocation for the defense sector, commencing in 2016.

The government plans to cut its defense allocation for next year by 6.3 percent, or Rp 7 trillion (US$490 million), to Rp 95.8 trillion.

Lawmakers from Commission I, which oversees defense and foreign affairs, have expressed concerns about the government's decision given the government is on its way to revamp the country's weapons and associated defense systems.

Chairman of Commission I Mahfudz Siddiq said that, during the last five years, the state had allocated a big chunk of the budget to the Defense Ministry, the military and the plan to procure weapon systems in order to meet the level of minimum essential forces (MEF).

"This is why we're concerned, because there is a big gap reaching Rp 7 trillion from the 2015 budget allocated to the Defense Ministry and the military institution," Mahfudz told The Jakarta Post after a hearing with members of the Defense Ministry and the Indonesian Military (TNI) at the House of Representatives.

The lower budget allocation for the defense sector would influence the welfare of soldiers and weapon systems procurement, he added. The government has been constantly increasing defense spending, from Rp 17 trillion in 2010 to Rp 102.3 trillion this year.

Despite the reduction for next year, defense spending is still the second- largest allocation in the draft state budget after public service sector that acquires Rp 764 trillion.

According to Mahfudz, TNI commander Gen. Gatot Nurmantyo revealed that the lower allocation of the budget for the military was due to the weak financial position of the government arising from global currency instability.

"Actually that's not a reason to reduce the budget for the military and our defense sector. The government raised the allocated budget for the police up to Rp 10 trillion in 2016," he said. Based on the budget allocation, Mahfudz said the government cut the budget mostly for weapon systems.

It was reported that the Defense Ministry and the military had planned to buy a squadron of Sukhoi jet fighters to replace the retired F5 Tiger squadron.

The ministry had also planned to purchase Boeing and Chinook helicopters to increase its fleet. Another plan was to allocate a certain amount of the budget for the maintenance of the new weapon systems.

In relation to threats and risks from the South China Sea conflict, Indonesia plans to strengthen its capacity and weapon systems in Natuna and other border areas.

Previously, Defense Minister Ryamizard Ryacudu said the military and defense sector needed more funds to meet the target of MEF and to renew all weapon systems that had been old or damaged.

"This years' budget is not enough, how can it be reduced again," he question rhetorically. He expected the government would not reduce the budget for the military and defense sector, regardless of the weakening rupiah.

Mahfudz said that one possible solution to the matter was to wait for the Defense Ministry to produce the draft of MEF II strategic planning (renstra) in order for the program to commence in 2016.

"Renstra should be adjusted to the President's mission, for instance to create a maritime axis. The president will subsequently issue a presidential instruction [Inpres] on MEF. The Inpres will bind all parties, including the Finance Ministry and Bappenas [National Development Planning Board] to support the military to achieve the MEF's target," Mahfudz said.

Source: http://www.thejakartapost.com/news/2015/09/08/house-questions-defense-budget-cut.html

Criminal justice & prison system

Kontras says Budi will cause trouble again

Jakarta Post - September 12, 2015

Jakarta – A rights group, the Commission for Missing Person and Victims of Violence (Kontras), warned that the newly inaugurated National Narcotics Agency (BNN) chief Comr. Gen. Budi Waseso would continue making controversial moves in the future.

Kontras chairman Haris Azhar said that Budi would implement policies based on his chances of continuing to make headlines. Haris was particularly concerned with Budi's recent statement that he would send all drug users to prison.

"I'm concerned that he was being too emotional and this way he would only create commotion and he would only make himself more popular," Haris said as quoted by tribunnews.com. Soon after being inaugurated, Budi said that he would review all laws related to drugs.

According to a report by kompas.com on Tuesday, Budi said that eradicating drugs should include reviewing the laws related to it, since regulations that are not yet perfect can be an obstacle for BNN in performing its duties.

Budi said that he would propose a revision to Law No. 35/2009 on narcotics, especially Article 54, which states that social and medical rehabilitation must be provided to drug addicts and victims of drug abuse.

Source: http://www.thejakartapost.com/news/2015/09/12/national-scene-kontras-says-budi-will-cause-trouble-again.html

BNN chief defends controversial remarks over drug laws

Jakarta Globe - September 10, 2015

Jakarta – The newly inaugurated chief of the National Narcotics Agency (BNN), Comr. Gen. Budi Waseso, has generated further controversy by defending his remarks that Indonesia's drug laws are too lenient and provide loopholes for both traffickers and users.

Waseso, the former National Police's chief of detectives, said on Wednesday that he aims to revise Indonesia's narcotics laws, which currently offer rehabilitation clinics as an alternative to prison in certain situations. The provision, he argued, serves as a gateway for people to experiment with drugs.

"Why do people try drugs? Because the penalties are light, [they] only go to rehab [in case they're caught]," Waseso added.

The BNN chief further fueled controversy by saying: "It is like losing twice. The country is already ruined by these drug users and the state has to pay for their rehabilitation. We must evaluate this [provision]. Not eliminate [the provision] but evaluate [it] so that it serves as a deterrent for others."

However, of the estimated 18,000 people in an Indonesian rehabilitation facility, only less than 2,000 are in a BNN or other government-funded center.

"We will evaluate this together. I will invite legal practitioners, from the Justice Ministry and police and society. We will discuss this together," Waseso continued. "We don't want the law to provide loopholes for drug dealers, pretending like they're victims," Waseso added.

According to the 2009 Anti-Narcotics Law in Indonesia, there are prescribed limits for those found in possession of drugs to qualify as a user as opposed to a drug trafficker.

That limit, as set out in the 2009 Anti-Narcotics Law, is at most eight ecstasy pills, or less than one gram of crystal methamphetamine, or less than five grams of marijuana.

To date, there have not been any reported cases of drug traffickers exploiting the so-called loophole and being sent to a rehabilitation facility.

Source: http://jakartaglobe.beritasatu.com/news/bnn-chief-defends-controversial-remarks-drug-laws/

Intelligence & state security

BIN budget cuts to jeopardize regional election security, says spy chief

Jakarta Globe - September 10, 2015

Jakarta – The State Intelligence Agency may be forced to postpone its ambitious plan to recruit 1,000 agents and informants for this year's regional elections as the government looks set to slash its budget by nearly 40 percent.

Agency chief Sutiyoso took the matter to the House of Representatives on Thursday as he discussed preparations for the simultaneous regional elections in December and other security concerns. Sutiyoso said the budget cut would severely impact the performance of the agency known as the BIN.

"If it is cut then our programs will not be achieved," he said as quoted by Detik.com.

Sutiyoso said the government's state budget proposal for next year, submitted to the House for deliberation in July, would slash the BIN's budget from Rp 2.6 trillion ($183 million) this year to just under Rp 1.6 trillion in 2016.

The former Army general said he hoped the House would be able to convince the government to reverse the planned budget cut. "We are at the forefront of the nation's security. But we have so little in terms of a budget and now it's up for another cut," he said.

Shortly after he was inaugurated in July, Sutiyoso – the head of one of the parties in President Joko Widodo's coalition during last year's election – said he would increase the number of agents around the country in anticipation of potential conflicts during the upcoming regional elections.

Sutiyoso said the agency would cooperate with the Home Affairs Ministry to run the recruitment process and to implement the new program, which he called a "local intelligence network."

The plan is highly controversial, given the BIN's checkered record on human rights and alleged role in spying on government critics and student groups under Suharto's New Order regime, as well as its purported involvement in the murder of human rights defender Munir Said Thalib in 2004.

Source: http://jakartaglobe.beritasatu.com/news/bin-budget-cuts-jeopardize-regional-election-security-says-spy-chief/

Economy & investment

Rupiah weakening momentum for business consolidation: Association

Jakarta Post - September 15, 2015

Jakarta – The declining rupiah exchange rate, which currently stands at Rp 14,300 per US dollar, must be used to create momentum to consolidate Indonesia's business potential, according to one expert, so that Indonesian companies can be more competitive in the ASEAN Economic Community (AEC), which will start in 2016.

"The government must be realistic and both Indonesian people and business players must prepare their mental and psychological readiness to face whatever comes, including, potentially, the rupiah exchange rate exceeding Rp 15,000 per dollar in the near future," said Ismed Hasan Putro, head of cooperatives and small and medium enterprises management at the Association of Indigenous Indonesian Businesspeople (HIPPI), as quoted by Antara in Jakarta on Tuesday.

He said that in the current economic crisis, Indonesian people could learn from the two previous crises, during which most parts of society did not get too worried despite a crippled economy.

Nevertheless, Ismed said, the government must anticipate US dollar pressures against the rupiah, which were getting stronger, by lowering interest rates and reducing fuel prices to maintain both national economic resilience and business competitiveness.

He further said the government must eliminate rent-seeking and high-cost economics, which had the potential to weaken Indonesia's business competitiveness.

The government should also delay electricity price hikes and simplify the bureaucratic permit procedures that had made business players and investors somewhat reluctant to invest in the country, he added.

Ismed said the government also needed to give special incentives for new players in cooperatives and small and medium enterprises.

"It has been proven that during the 1998 and 2008 crises, business players from cooperatives and small and medium enterprises supported the government by helping to maintain the national economy and business growth," said Ismed, a former director of state-owned agribusiness firm PT Rajawali Nusantara Indonesia (RNI). (ebf)

Source: http://www.thejakartapost.com/news/2015/09/15/rupiah-weakening-momentum-business-consolidation-association.html

Indonesia records $433.8 million trade surplus in August

Jakarta Post - September 15, 2015

Jakarta – Indonesia had a US$433.8 million trade surplus in August, which was triggered by a $1.01 billion surplus in the non-oil and gas sector, the Central Statistics Agency (BPS) said in a release in Jakarta on Tuesday. On the oil and gas sector, it further said, Indonesia suffered a trade deficit of $580 million.

"Indonesia's trade balance gained a surplus of $433.8 million for August, in which exports were recorded to reach $12.78 billion, while imports amounted to $12.27 billion," BPS head Suryamin said as quoted by Antara in Jakarta on Tuesday.

In terms of volume, Suryamin said, the country's trade balance also had a surplus of 28.94 million tons, which was pushed by a trade surplus of 29.26 million tons in the non-oil and gas sector. Meanwhile, the oil and gas sector suffered a deficit of 320,000 tons.

The BPS head said Indonesia's exports were recorded at $12.70 billion in August, or up by 10.79 percent from July. August's export figure showed a 12.28 percent decline from the same period last year.

Meanwhile, the country's imports reached $12.27 billion in August, up by 21.69 percent from July and down by 17.06 percent from the same period in 2014.

"Cumulatively, Indonesia's trade balance showed a surplus of $6.22 billion from January to August," said Suryamin. The country's exports totaled to $102.52 billion from January to August, while imports reached $96.30 billion. (ebf)

Source: http://www.thejakartapost.com/news/2015/09/15/ri-records-4338m-trade-surplus-august.html

Mandatory use of rupiah counterproductive: Business community

Jakarta Post - September 12, 2015

Jakarta – Business players and analysts have strongly criticized the central bank's recent policy that required all business transactions conducted in the Indonesian territory be carried out in rupiah.

They said that the mandatory use of the rupiah in local transactions was counterproductive because it brought more harm than good to the business community, especially those involved in export and import activities.

"The central bank always said that the policy is for our national sovereignty, but it doesn't make sense," said Anne Patricia Sutanto, president director of garment producer PT Pancaprima Ekabrothers.

Anne, who is also member of the Indonesian Employers Association (Apindo), said the policy had especially hurt companies involved in export and import activities because, with the mandatory use of rupiah, they had to renegotiate their business contracts with their foreign partners.

She said before the policy was implemented, all the export and import related transactions were conducted with US dollars.

"Now we have to change it and, for example, we have to tell shipping companies to make invoices in rupiah," she explained. "This policy confuses the business world," she said in a discussion on Thursday.

According to Anne, the central bank's ruling had also put pressure on the business sectors for it was issued at a time when the rupiah had already depreciated sharply against US dollar.

Anne added that being nationalistic was not a problem at all if it was channeled through proper ways. She said the government could showcase their sense of nationalism by improving the skills and the competitiveness of Indonesian employees so that they can compete within the ASEAN Economic Community (AEC).

"It is incorrect to display nationalism by using the rupiah. However, we can do that through developing our labor [resources]," she said.

She also criticized the government's move as not tackling the real problem if stabilizing the rupiah was their main goal. "What has the new policy done to help the rupiah so far?" she asked.

Early in July, Bank Indonesia issued a regulation on the mandatory use of the rupiah in all business transactions carried out in Indonesia. The ruling was expected to reduce the high demand for US dollars among local banks. The strong demand for the greenback has partly contributed the fall of the rupiah, which has lost about 14 percent this year amid the fall in regional financial markets.

Eric Sugandi, former economist of British lender Standard Chartered, held similar concerns regarding the new policy. Besides labeling the policy as being too nationalistic, he also said the timing of the policy was not right because it was introduced when the Indonesian currency was under pressure.

He further criticized President Joko "Jokowi" Widodo for not being consistent in his action. On the one hand Jokowi wants foreign investors to come to Indonesia but, on the other hand, he issued a policy that would make investors retreat, he said.

"This regulation is just another contradiction. It seems that Jokowi wants to embrace free trade but what he did was contradictory," he added.

Meanwhile, David Rimbo, managing partner of EY Indonesia's Transaction Advisory Services, said that the policy would not only put barriers on private businesses, but it would also affect state-owned enterprises (BUMN) because many of them were among the big users of the US dollar.

He said that the government's aim in issuing the regulation was to give confidence to the market. He warned, however, that making big promises to the market in the hope of boosting confidence would just make the problem worse. He cited infrastructure projects the government had promised as examples of how the government had only given lip-service so far.

"What has been done so far was just pencitraan [image-building]," he said. "The habit of boosting the market by rhetoric will be counterproductive," he added. (saf)

Source: http://www.thejakartapost.com/news/2015/09/12/mandatory-use-rupiah-counterproductive-business-community.html

28 deregulation policies announced

Jakarta Post - September 11, 2015

Up to 134 regulations in 17 ministries and state institutions are set to be deregulated. According to Coordinating Economic Minister Darmin Nasution, the deregulation process for 28 government regulations (PP) and 11 presidential regulations (Perpres) is set to be completed in mid-September.

"We will finish the [first phase of the] deregulation in the second week of September since the President is going to the Middle East and will be back on Tuesday," said Darmin as quoted by Antara news agency on Friday.

He added that the implementation of the deregulation would start in the third week of September.

"[The deregulation] on the development's acceleration of 14 industrial zones, for example, will result in more efficient and comfortable industry operations in the areas and an increase in variety and number of industrial products for the market inside and outside the country," said Darmin as quoted by kompas.com.

Other regulations, including two presidential instructions (Inpres), 96 ministerial regulations and eight other unnamed regulations, are set to be completed in October. Out of 96 ministerial regulations, 32 are coming from the Trade Ministry. (kes)

As reported by kompas.com, the upcoming PP and Perpres reforms are as follows:

1. PP on supporting facilities for industrial development
2. PP on bonded logistics center
3. PP on water resources management
4. PP on value-added tax (VAT) for seaport services
5. PP that revises PP No. 146/2000 on imports and/or delivery of certain taxable goods and/or delivery of certain VAT-free taxable goods
6. PP on imports and delivery of certain conveyances and delivery of taxable services linked to certain VAT-free conveyances
7. PP on the stripping system to implement Law No. 13/2003 on manpower
8. PP that harmonizes Law No. 13/2003 on manpower, Law No. 30/2009 on electricity and Law No. 20/2002 on building developments for integrated building permits (IMB) linked to building installations and work safety
9. PP that implements Law No. 13/2010 on horticulture
10. PP that revises PP No. 40/1996 on leasing, building and land use rights
11. PP that revises PP No. 24/1997 on land registration
12. PP that revises PP No. 37/1998 on Land Deed Official (PPAT) position regulation
13. PP that revises PP No. 11/2010 on control and utilization of abandoned land
14. PP that revises PP No. 41/1996 on residential ownership by foreigners domiciled in Indonesia
15. PP that revises PP No. 13/2015 on types and tax rates applied at the National Land Agency (BPN)
16. Perpres that revises Perpres No. 174/2014 on procurement or government services to obtain horticulture seeds through direct procurement
17. Perpres that revises Perpres No. 180/2014 on foreign tourist ship visits to Indonesia
18. Perpres that revises Perpres No. 69/2015 on visa-free visits
19. Perpres that revises Perpres No. 30/2015 on the implementation of land acquisition for the development of the public interest.
20. PP that revises PP No. 23/2010 on implementation of mineral and coal mining businesses
21. PP on bonded logistics center for fuel (BBM), liquefied petroleum gas (LPG) and crude oil
22. Perpres on implementation of domestic oil refineries development
23. Perpres on modification of Perpres 2012 on supply, distribution and pricing of compressed natural gas (BBG) for road transportation
24. Perpres on natural gas management
25. Perpres on supply, distribution and pricing of LPG for small fishing vessels
26. Perpres on natural gas pricing policies in the upstream oil and gas business sector
27. Perpres on accelerating electricity infrastructure development
28. Perpres on procedures for the stipulation and countermeasure of energy crises and emergencies

Source: http://www.thejakartapost.com/news/2015/09/11/28-deregulation-policies-announced.html

Policy package lacks punch, solutions urgently needed

Jakarta Post - September 11, 2015

Tassia Sipahutar and Khoirul Amin, Jakarta – Economic analysts have been underwhelmed by the government's newly launched economic policy package, regarding it as lacking the fresh solutions needed to address the ongoing economic slowdown.

Bank Central Asia (BCA) economist David Sumual described the package as an anticlimax as many had expected it to be more innovative. "It doesn't really offer many new incentives or breakthrough policies. A lot of them are already in place or have been discussed before," he said on Thursday.

David argued that most of the policies contained in the package – which was introduced by President Joko "Jokowi" Widodo in a televised press conference on Wednesday – aimed at improving the business climate, such as by cutting red tape, would take time to yield results.

"What we need more now is prompt solutions to address the decline in people's purchasing power. We must admit that we do have a problem there and that a deterioration is already taking place," he said.

Central Statistics Agency (BPS) data showed a drop in consumer spending, which traditionally makes up about half of the gross domestic product (GDP). Consumer spending grew 4.99 percent by the end of the first half of the year, the lowest figure since 2011, as the country's economy slowed to a six-year low level of 4.7 percent.

The government, according to the package, is planning to boost consumer spending by providing incentives to low-income people, especially villagers and fishermen.

Part of the move includes accelerating village funds disbursement through a cash-for-work program, providing more rice to the poor, strengthening the role of cooperatives such as village trading houses and providing liquefied petroleum gas (LPG) converter kits – which is expected to help improve fishermen's welfare by slashing their fuel costs.

David warned that the government must first provide training and assistance to villagers for the cash-for-work program and that could potentially delay the full realization.

The policy package contains amendments of 89 regulations across different sectors, such as liberalizing the tourist sector by relaxing foreign tourist visa requirements, opening up the property sector by allowing foreign ownership of apartments worth more than Rp 10 billion (US$689,400) and providing legal certainty for miners by allowing earlier application for contract extensions.

Economist Drajad Wibowo said the package was no head-turner, taking into account Thursday's market reaction to the package.

The rupiah, the second-worst performing currency in the region, continued its losing streak, weakening 0.5 percent to end at 14,332 per US dollar from the previous day. Benchmark stock index the Jakarta Composite Index (JCI) closed weaker as well at 4,343.26, down 0.1 percent.

"The package has not provided investors with a psychological boost, it has not made them stop and turn. It seems that they are still waiting for the whole package to be released, to see if the details are what they expect," he said.

The second batch of the package will be announced later this month and the third next month.

Drajad, however, applauded the government's efforts, saying that massive deregulation was needed. "There is over-inspecting and over-supervising, [resulting in] regulations with multiple interpretations," he added.

Bank Danamon economist Dian Ayu Yustina acknowledged that the package did not seem to pack a punch and that the contents appeared too general, including the simplification of export financing and the National Interest Account, as well as the plan to encourage industrial estates outside Java.

"This is what happens when we have so many structural issues. They take time to resolve and we just have to be patient," she said.

Coordinating Economic Minister Darmin Nasution defended the government's policy, saying that there would be more packages to be issued. "So don't expect that one package will immediately change things," he said.

The Indonesian Chamber of Commerce and Industry (Kadin) welcomed the economic policy package but demanded rigid action plans and full implementation of the policy. Kadin chairman Suryo Bambang Sulisto expected the government to provide more extensions for firms that failed to meet deadlines for debt payments owing to the economic slowdown to avoid more lay-offs.

Source: http://www.thejakartapost.com/news/2015/09/11/policy-package-lacks-punch-solutions-urgently-needed.html

Demand for livestock decreases due to economic hardship

Jakarta Post - September 10, 2015

Slamet Susanto, Yogyakarta – People's decreasing purchasing power as a result of the downturn in the economy and increases in the prices of staple foods has affected demand for livestock ahead of Idul Adha (Islamic Day of Sacrifice), which falls on Sept. 24.

"Last year, I was getting orders a month before Idul Adha. That wasn't the case this year," said Ilham Jayadi, the chairman of the Beef Traders Association (PPDS) in Bantul regency, Yogyakarta, Segoroyo. Ilham blamed the faltering economy for the increasing prices of daily necessities.

He said the price of sacrificial livestock had also increased. Last year, one head of cattle could be purchased for about Rp 12 million (US$857) but now one costs Rp 17 million to Rp 50 million.

"It's difficult to predict demands for sacrificed bulls, but we predict there will be a decrease," he said.

Local goat breeder Supriyadi told a similar story. "Every year I receive orders for at least 100 goats. Now I feel lucky if get orders for 25," said the father of two.

Besides blaming the sluggish economy for the lower demand, Supriyadi also pointed to a law banning government institutions from distributing sacrificial animals.

He was referring to Law No., 23/2014, which stipulates that social aid recipients must be legal entities, among other things. As a consequence, government institutions can no longer distribute sacrificial animals.

"This year, no meat from sacrificial cattle will be distributed to the people," said the head of Gunungkidul regency administration's people's welfare division, Bambang Sukemi.

Previously, his office always distributed at least one goat to each of the 144 subdistricts in Gunungkidul, paid for with state money.

Haryadi of Panggungharjo, Sewon district, Bantul regency, said during times of economic hardship like now, he could not think of sacrificing livestock for Idul Adha.

He said that in previous years, people in his neighborhood unit usually jointly bought four bulls and some goats for the Day of Sacrifice, but could not afford to do so this year.

Besides Yogyakarta, livestock traders in other areas have also complained about slow sales as a result of economic hardship.

Livestock traders in Bengkulu claimed that their sales had dropped almost 50 percent along with the decrease in prices of commodities.

Dardiri, one of the traders, said he sold 200 head of cattle and 600 goats last year, while so far this year he had sold only 100 bulls and 40 goats.

Source: http://www.thejakartapost.com/news/2015/09/10/demand-livestock-decreases-due-economic-hardship.html

Indonesia 'strong enough to avoid capital flight'

Jakarta Post - September 9, 2015

Grace D. Amianti, Jakarta – The country needs to further improve business confidence in order to avoid massive capital flight, which could hit the country if the government is unable to improve economic conditions, analysts have said.

Analysts said that the government needed to keep its promise to mend the country's economic woes in order to be able to regain investor confidence.

Tony Prasetiantono, an economist at Gadjah Mada University, said the foreign fund outflow that hit the local financial market in the past several days, took place because of panic selling rather than Indonesia's economic condition.

He said that such a capital flight would gradually ease if the government could convince people that its economic programs would put the economy back on track.

"The foreign funds will return to emerging countries," he said, when asked to comment on a Standard & Poor's report, which said that Indonesia was more exposed to capital flight than Malaysia, despite the latter's tougher political and economic conditions.

Tony said the government should keep its promise to accelerate the disbursement of its infrastructure spending in the second half of this year in order to push up economic growth, which rose only 4.7 percent in the second quarter, the lowest since 2009.

While somewhat agreeing with Standard & Poor's view, Ahmad Sujatmiko, an analyst at local rating agency Pefindo, said Indonesia's fundamental macro-economy was still resilient as the inflation rate was under control, which should be maintained by Bank Indonesia (BI), amid massive outflows from emerging markets.

"Indonesia's sovereign bonds still offer the highest yield among neighboring countries, so that it remains attractive to foreign investors," Ahmad told The Jakarta Post.

On the other hand, analyst Reza Priyambada of NH Korindo Securities said Standard & Poor's view might negatively affect market players' perception of Indonesia if the government lacked actual implementation in its spending acceleration and infrastructure development.

While having more stable political conditions, Reza said Indonesia had difficulty gaining support from lawmakers to carry out its economic programs.

"If this situation is not handled well, it will affect the rupiah more, because it all comes back to perception and the market will have a negative sentiment toward the country," Reza said.

Aside from high reliance on foreign investors in the capital market, BNI Securities head of research Norico Gaman said Indonesia was deemed more vulnerable because of its reliance on exports of commodities.

As prices of commodities remain low and show no sign of recovery soon, Indonesia's foreign exchange (forex) reserves may be seen as more vulnerable to capital flight, according to Norico.

"The government should tightly monitor supply and demand of US dollars, especially finding ways to reduce dollar demand and maintain stability of the rupiah," Norico said, adding that Indonesia should find non-traditional export destinations for its commodities and new sources of forex, such as from tourism.

According to the central bank's data, Indonesia's government, banks and companies recorded US$304 billion in foreign debt, which is feared to shake up the country's forex reserves if capital flight increases.

Source: http://www.thejakartapost.com/news/2015/09/09/ri-strong-enough-avoid-capital-flight.html

Analysis & opinion

Easier to do business

Jakarta Post Editorial - September 11, 2015

On Wednesday, the government announced what President Joko "Jokowi" Widodo called the first of a series of regulatory and bureaucratic reforms designed to boost business and economic activity and strengthen people's purchasing power, which has been eroded of late by the weakening of the rupiah against the US dollar.

"We are deadly serious in implementing these economic reform measures," Jokowi assured listeners early on in his policy announcement, apparently in a bid to reassure a nervous market.

Such a pledge is indeed needed amid the public's perception that the government does not have policy coherence, and that inter-ministerial coordination within the Cabinet is absent. Skeptics may comment that it is much easier to get rid of regulations than enforce them.

But getting out of the trap of excessive regulation and licensing red tape is now on top of the reform measures proposed by Jokowi to unleash business initiative long shackled by arduous, long-winded procedures. The government revised or simply annulled 89 regulations to make things easier for business, slashed the interest rate on credit for micro and small enterprises from 22 to 12 percent and cut the maximum amount of un-taxable income.

The procedures for the disbursement of village funds from the state budget were streamlined to accelerate cash injections into rural areas. "We also want to see to it that the bulk of the funds are spent on improving physical infrastructure in the villages," Jokowi said.

Again he assured people of his determination to push through reforms, saying that a special oversight committee would be set up to monitor the progress of this policy from month to month.

The first package also includes five major policy measures by Bank Indonesia to control inflation, stabilize the rupiah exchange rate and boost investment in the property sector, while the Financial Services Authority will make it much easier for non-residents to open foreign exchange accounts at local banks.

Consumers and businesses have been in a subdued mood as the rupiah has steadily declined over the past few months to as low as 14,200 to the dollar, the lowest point since the 1998 economic and political crisis.

It is sad to learn that the government has yet to issue presidential regulations to remove the bureaucratic inertia in budget implementation caused by the excessive risks faced by senior officials in making decisions on projects, contracts and other areas of budget disbursement.

The fiscal sector is now one of the few areas that can generate positive forces to restore confidence in economic outlook because the credit expansion rate will most likely be halved this year because of the low economic growth.

The presidential decree will provide a certain degree of discretion for senior officials to make decisions to speed things up in project tendering or contract negotiations without the risk of facing corruption allegations so long as the decision making process is both accountable and transparent.

Source: http://www.thejakartapost.com/news/2015/09/11/editorial-easier-do-business.html

A loose cannon in the Indonesian cabinet

Reuters - September 10, 2015

Kanupriya Kapoor and Randy Fabi, Jakarta – As Indonesian President Joko Widodo was preparing on Wednesday to present a grand package of measures aimed at restoring investors' faith in the competence of his government, one of his ministers stepped in and spoilt it all.

Rizal Ramli, who told Reuters this week that perhaps he is too outspoken, suddenly announced in parliament that fuel pipeline and storage projects worth US$7.4 billion had been dropped because they were no longer a priority.

Within hours, the cabinet secretary had contradicted him, reinforcing an impression that Widodo's ministers are out of tune with each other and unable to sound united on policy.

Ramli, 60, is no faint-heart: as a student, he was jailed for leading a rally against authoritarian leader Suharto.

"Wherever I go I change the system. I'm a transformer," he said in an interview on Sunday at his house in South Jakarta, where a large bust of Albert Einstein sits at the entrance. "But there are so many people who don't like me because I'm too candid. I say what is on my mind," he said.

Widodo brought Ramli in as one of six new cabinet ministers last month, hoping to streamline a muddled policymaking process after disappointing many who saw his election last year as a chance to break from a succession of feckless governments.

But Ramli has only caused more confusion since he took the portfolios of maritime affairs and resources.

First, he drew a rare rebuke from Widodo, who told him to voice his concerns privately after he had openly criticized Vice President Jusuf Kalla.

He also denounced plans by national airline PT Garuda Indonesia Tbk to buy 30 Airbus jets with $44.5 billion in loans: the state-owned enterprises minister told him to back off.

Then, this week, he threw into doubt the president's signature $73 billion plan to give the country an additional 35,000 megawatts of power capacity within five years, saying that less than half of the target could be achieved by 2019.

The oil minister, who reports to Ramli, subsequently said there would be no change to the programme. Again, on this issue, he locked horns with the vice president.

Warfare within

"Ramli likes making a racket," vice presidential spokesman Husain Abdullah said. "Rather than helping the government, he makes things more complicated."

Ramli, who holds a doctorate from Boston University and was twice a minister under a former president, is known for strident and often nationalistic views on the economy – though he insists that he is no enemy of the financial markets.

Seen as close to Luhut Pandjaitan, one of Widodo's key advisers, he was handed one of the most powerful positions in the cabinet that bundled under him the ministries of energy, transport and tourism.

Explaining himself in parliament on Wednesday, Ramli said that his "noise" was not intended to unsettle investors, who in fact prefer openness to a pretence of harmony that disguises corruption, collusion and nepotism.

However, the Jakarta-based Concord Consulting Group said the outspoken minister had brought open warfare into the heart of Widodo's administration that may be difficult to root out.

"Unless he is prepared to lose a great deal of face, the president is unlikely to dump a senior minister he appointed only a few weeks ago," it said.

Source: http://www.irrawaddy.org/asia/a-loose-cannon-in-the-indonesian-cabinet.html

Regulatory reform: Just do it

Jakarta Post Editorial - September 9, 2015

President Joko "Jokowi" Widodo pledged last week to revise 154 regulations pinpointed by the chief economics minister as major barriers to economic activity.

Yet in an even more astounding revelation, National Development Planning Minister Sofyan Djalil said on Monday that a study by his office had discovered more than 2,700 regulations, presidential and ministerial decrees that hindered economic development.

Like a good deal of policymaking processes in the country that are fragmented across many ministries and government agencies, there is simply no formal, independent evaluation process to assess regulations from an economy-wide perspective, or to ensure public consultation involving a broad base of stakeholders takes place.

Various high-level teams like those that worked overtime at the Bogor Presidential place over the last few days have conducted periodic regulatory reviews and held consultations with stakeholders, but this has occurred mostly on an ad hoc basis and has tended to be in response to fiscal or financial crises, rather than as an inherent requirement embedded in the regulatory process.

Independent and objective evaluations of policies from an economy-wide perspective are not currently institutionalized. There is no strong mechanism to ensure public consultations involving a broad base of stakeholders. Rules or guidelines that ensure contact and consultations with experts in the relevant policy evaluation teams would have been greatly useful.

The fragmentation of the policymaking process has led to an increase in opportunities for special interests to exert influence. As a result, the government should consider embedding impact assessments systematically into the regulatory framework for all policies that meet a pre-defined threshold test.

To conduct such evaluations, stronger coordination among line ministries is critical. In recent years, there have been several prominent examples of new regulations that contradict higher order laws and regulations, leading to uncertainty. Such coordination is particularly important in the context of the big-bang decentralization of authority in 2001 and the increasing influence of the House of Representatives in regulatory policy.

As a result of these changes, line ministries now seem to have more control over the policies within their sectors and sectoral interests have greater political sway. This leads to potential protectionist tendencies that can only be offset by independent evaluations that take an economy-wide approach to policymaking.

A clearing house for conflicting regulations would be useful in this regard. And as part of the streamlining process, the government should make an inventory of all business licenses and permits at the national level, documenting the objectives of each license/permit, the issuing authority, and examining whether the license/permit represents a barrier to entry that should be abolished.

A key to improving coordination between the central government and regional administrations is improving human resource capacity. If officials reviewing new and existing laws and regulations do not have the proper training and incentives to carry out such a task, regulatory reform, desperately needed, will not take place.

Source: http://www.thejakartapost.com/news/2015/09/09/editorial-regulatory-reform-just-do-it.html

The Donald and the absurdity of Indonesian politics

Jakarta Post - September 8, 2015

Ary Hermawan, Tucson, Arizona – At first it was funny, but then just sad. That's pretty much how many Indonesians felt when they saw pictures of politicians Fadli Zon and Setya Novanto at a press conference held last week by American presidential hopeful Donald Trump.

It was hilarious because it was so unreal. First, how did they get there, and why? Of all the places to visit in New York, why choose Trump's campaign headquarters? Second, what's with the star-struck faces? Couldn't they play it a little cooler? It's Donald Trump, for heaven's sake – not Elvis! Third, did Setya really say Indonesians "highly" like Trump?

It was, without doubt, a comic scene. But these men are no ordinary men. They are elected representatives of the people, the wakil rakyat. As much as you hate them, their views and their creepy hairstyles, they still represent you.

So when they do something silly overseas, and say something on your behalf that is totally not true, it's not funny anymore. You have every reason to be mad. But then you realize: Indonesian politics just makes no sense.

Many countries claim their politicians are the worst. But Indonesian politicians have displayed a level of absurdity that would mystify even the Donald.

On Sept. 2, the National Mandate Party (PAN) announced it had joined the ruling Great Indonesia Coalition (KIH). Many were surprised and analysts swiftly offered their two cents on what it meant for the shaky government of President Joko "Jokowi" Widodo.

But the next day, a bombshell was dropped: The party explained that while it had officially joined the ruling coalition, it was also still part of the opposition camp led by Jokowi's nemesis, Prabowo Subianto.

So PAN is now dating Jokowi, but it's not breaking up with Prabowo. It's pretty much like a sappy Korean drama, with all the intrigues and surprises, the complex love triangles, though minus the pretty faces.

This is why it's so easy for Fadli and Setya to say that there is nothing controversial or embarrassing about them visiting the Trump Tower and telling the whole world that Indonesians love Donald Trump, totally disregarding the fact that some Indonesians, me included, actually like Deez Nuts better.

Fadli said he and his colleagues had attended Trump's press conference – on a junket obviously paid for with taxpayers' cash – because the US mogul invested in Indonesia, insisting that their presence should not be taken as a an endorsement of the aspiring Republican candidate.

The House deputy speaker added, as quoted by Business Insider, that, "I think he is also very famous with his show and, of course, Indonesian people, when they talk about a millionaire or billionaire, what will pop up in their minds first is Donald Trump."

Trump is definitely not the only American investor in Indonesia and the fact that he's famous does not make him more important than others. Meeting him for lunch or dinner is fine, but attending a press conference where he pledges allegiance to an American opposition party as part of his presidential bid is an entirely different thing.

But when did Indonesian politics ever make sense? It is notorious for its dark power play. We still do not know what exactly happened in 1965 when junior military officers kidnapped and murdered six Army generals to prevent a coup against then president Sukarno. Even the more recent 1998 riot, which brought about the deaths of hundreds if not thousands of people, is still shrouded in mystery.

These days, Twitter and other social media outlets are replete with rumors, "leaks" or "insiders' insights" on what is happening behind the scenes in Indonesian politics, which has long been compared to a wayang (shadow puppet) show. After reformasi, even after Jokowi, the old guard remains the dalang or puppet master, controlling the "reformists".

With Jokowi as President struggling just to get a grip on his own administration – under pressure from his own political party, his coalition partners and even his Vice President – while trying to tame the hostile powers within the opposition-dominated House of Representatives, the political stage is set for dirty, chaotic and convoluted plots.

For those who are not politically savvy, or simply allergic to politics, this is merely another reason to be politically apathetic. Setya and Fadli's gaffe seems so dispiriting because we know that it will end up as an object of mockery on the walls of our social media, in our tragicomedy, where every five years such politicians will be elected again.

This is not what we had in mind when we took to the streets and toppled Soeharto and embraced democracy 17 years ago. But what can we do?

As French philosopher Joseph de Maistre said, "Every nation has the government it deserves". Or, "In a democracy, people get the leaders they deserve." A hackneyed quote – but one which resonates loudly with how we look at our politics today.

Maistre may be wrong. But don't you wish one day we could quote him again, but with a more optimistic tone?

Source: http://www.thejakartapost.com/news/2015/09/08/commentary-the-donald-and-absurdity-indonesian-politics.html


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