Agus Salim, Wamena, Papua – The Indonesia government is open to holding a dialog with anyone in the context of development, including in Papua, President Joko Widodo (Jokowi) stated here on Wednesday.

"From the onset, I have no problem in holding a dialog with anyone in the context of development," the head of state remarked after dedicating and inspecting the district government offices in Jayawijaya. He said dialog had also been initiated to settle the problems in Aceh.

While referring to groups conducting violence, the president said he had ordered security agencies to take firm action.

In the context of dividing the Papua province, the president said he had received inputs from various parties on the matter. "I have to discuss with various parties first, including with the governor here (about it)," he noted.

On the issue of limited supply of electricity and internet services, the president remarked that similar complaints had also been received from other regions. "This is our task. We must build a power plant, and it takes three to four years to realize it," he affirmed.

The head of state remarked that by undertaking frequent visits to Papua, he would be able to gain a better understanding of the problems being faced by the people in the region, such as limited infrastructure that had caused the prices of commodities, such as cement, rice, and fuel oils to increase.

"With adequate infrastructure, it is hoped that the prices of cement and fuel oils would drop by 50 percent from the current rates," he emphasized.

He remarked that the extension of the runway at the Wamena Airport would make it possible for bigger aircraft to land and help to boost the regions economy.

"The facilities at Merauke Port also need to be upgraded along with increasing the number of cranes and extending the pier. The work on these facilities will all be completed next year," he affirmed.

The president said if the infrastructure such as the roads and ports are good, the economy in Papua would grow faster, while the distribution of logistics as well as the flow of goods and passengers would improve.

Source: http://www.antaranews.com/en/news/102255/government-open-to-holding-dialog-with-anyone-president-jokowi

LBH urges Jokowi to open dialogue with the Papuan

Tempo - December 30, 2015

Angelina Anjar Sawitri, Jakarta – The Legal Aid Institute (LBH) of Jakarta and Human Rights Violation Victims Solidarity (SKP-HAM) of Papua has asked President Joko Widodo to open a dialogue with the Papuan. Director of LBH Jakarta, Alghiffari Aqsa, urged the dialogue, following the bloody attack on Sinak Police, last Sunday.

Alghiffari said that violence is a fundamental issue in Papua. "Jokowi needs to admit that there is a problem in Papua," he said Tuesday, December 29.

Coordinator of SKP-HAM of Papua, Peneas Lokbere, said that Jokowi must announce cease fire in Papua. "This is important. Enforcing violence to face violence will only result in revenge. It is the cycle in Papua," said Peneas.

Previously on Sunday, three police officers were killed and two others injured as gunmen stormed Sinak Police Station.

Source: http://en.tempo.co/read/news/2015/12/30/055731778/LBH-Urges-Jokowi-to-Open-Dialogue-with-the-Papuan

Joint team on the hunt for Papua police killers

Jakarta Post - December 30, 2015

Jakarta – The Papua Police have set up a joint team comprising police and military personnel to pursue perpetrators of an armed attack that killed three police officers at the Sinak Police headquarters in Puncak regency, Papua.

"A joint team comprising 50 Mobile Brigade [Brimob] and detective unit personnel has been dispatched to investigate and pursue the shooting perpetrators.

Directly supported by commanders of military district commands, the Indonesian Military has also deployed personnel to search for the attackers and prevent such incidents from reocurring," Papua Police spokesman Patrige Renwarin said as quoted by kompas.com on Wednesday.

Starting their investigation into the Sinak shooting shortly after the incident occurred, Patrige said the joint team had not as yet discovered the whereabouts of the attackers.

"At the site of the attack, the police investigation team found one weapon and a large stockpile of munitions left under stairs at the Sinak Police office building. The weapon belongs to the police office; the armed group apparently didn't see it," said Patrige.

He added that the police had taken anticipatory measures by increasing the number of on-guard personnel.

As reported earlier, a number of armed civilians attacked the Sinak Police office in Puncak regency, Papua, on Sunday evening. Three police members, namely First Brig.Ridho, Second Brig.Arman and Second Brig.Ilham, were killed and weapons and munitions were taken. (ebf)

Source: http://www.thejakartapost.com/news/2015/12/30/joint-team-hunt-papua-police-killers.html

Police, TNI urged to catch bandits behind fatal shootings

Jakarta Post - December 30, 2015

Nethy Dharma Somba, Jayapura – Papua Governor Lukas Enembe is expecting the Indonesian Military (TNI) and National Police to capture the perpetrators who shot and killed three police officers at the Sinak Police station in Puncak, Papua.

"This is an armed crime. I hope the TNI and police are able to arrest the perpetrators," Enembe emphasized on Tuesday.

Besides killing TNI and police officers, armed criminals, added Lukas, often intimidated residents, seized crops and livestock as well as abducting girls. "They are bandits who must be dealt with sternly," he said.

Enembe also hoped that those TNI and police personnel performing their duties in the area would remain cautious because armed civilian groups were still present.

Like Enembe, Puncak Regent Willem Wandik is also expecting the TNI and police to pursue the perpetrators of the Sunday shooting and promptly bring them to justice.

According to Wandik, the group that attacked, shot and killed three members of the police force at the Sinak Police station had been led by Alegagak Murib and Kalenak Murib and assisted by the Aleka Telenggen group based in Yambi, Puncak Jaya regency.

The Alegagak group, based in Ilaga, is believed to have collaborated with a person identified as DK, who has been working as an aide at the Sinak Police station for four years, to attack the police station and seize firearms.

Wandik said the group had also attacked police's Mobile Brigade (Brimob) members in Ilaga in December 2014 as they were securing a Christmas service. The firearms seized on that occasion were used in the attack on the Sinak Police station.

The criminal group roaming Puncak regency and surrounding areas, said Wandik, was very disturbing to the development process because they threatened residents and caused unrest.

"For every single firearm, approximately 30 people follow behind, now they have many firearms so just imagine the number of followers," said Wandik.

"How can we develop the region if the groups continue to disturb security. We have planned development, but we are confused by these criminal acts," Wandik said in Jayapura on Tuesday.

Residents in Sinak, added Wandik, also condemned the shooting and have said they would help security forces to fight the bandits. "Now, residents are backed by the TNI and police they have initiated plans to resist the unlawful group," said Wandik.

The bodies of the three police officers shot and killed by the armed civilian group at the Sinak Police station have been handed over to their families.

Another incident also took place in Sinak on Feb. 21, 2013, when seven TNI personnel and four civilians were shot and killed. The TNI soldiers had been heading to the Ilaga airfield to pick up telecommunication equipment when they were attacked by an armed group.

Source: http://www.thejakartapost.com/news/2015/12/30/police-tni-urged-catch-bandits-behind-fatal-shootings.html

MPR urges police to tackle separatism in Papua

Tempo - December 29, 2015

Angelina Anjar Sawitri, Jakarta – Deputy Speaker of the People's Consultative Assembly (MPR), Hidayat Nur Wahid, expressed his concern about gunmen attack in Sinak Police Base in Puncak, Papua, on Sunday.

"Security threat in Indonesia is not limited to radicalism; separatism is also real and it is a threat," said Hidayat Monday, December 28.

Therefore, he urged the government to be more proportional in dealing with the threats. "Separatism is also a problem; do not just focusing on radicalism," he said.

Hidayat also gave an example that there was an attack a day after President Joko Widodo granted five political prisoners amnesty. "We need to concern about radicalism. However, we need to remember that our police are also the victims of separatism. They were attacked, murdered, and robbed" said Hidayat.

Source: http://en.tempo.co/read/news/2015/12/29/055731442/mpr-urges-police-to-tackle-separatism-in-papua

Shooting incident not related to Jokowi visit: Religious leader

Jakarta Post - December 28, 2015

Nethy Dharma Somba, Jayapura – The recent shooting incident in Sinak, Puncak regency, Papua, in which three police officers were killed, had no connection with President Joko "Jokowi" Widodo's plan to visit Papua at the end of the year, a religious leader has said.

"The shooting incident was only a sign of the unresolved hierarchical conflict between the Indonesian government and Papua's indigenous people, especially those who identify as members of the separatist Free Papua Movement [OPM]. The conflicts are ongoing," said Papua Peace Network (JDP) coordinator Rev. Neles Tebay on Monday.

He said that violent tactics had been a common response to problems during the 52 years of Papua's integration with the Republic of Indonesia, but that violence had not been able resolve the problems. Instead, he said, violent tactics had only triggered revenge attacks and created a vicious circle of retribution.

Neles said that more civilians and members of security forces would fall victim to the conflict if the government did not find a proper solution. "JDP still believes that the violent hierarchical conflict in Papua can be ended peacefully by all stakeholders," the reverend said.

"Violent hierarchical conflict between the government and OPM members cannot be resolved by simply calling on them to leave their shelters in the forests and return to their home villages to work on development projects. Such appeals have been proven to be ineffective," he added.

Rev. Neles recalled that in one effort to end the conflict, Indonesian security authorities had air dropped thousands of Bibles to Papuan forest areas with the hope that OPM members would find the Bibles, read them, repent and agree to end their separatist movement. However, the method was not successful.

"Therefore, it's time for the government and OPM members to seek a realistic solution to end this hierarchical conflict," said Neles. He said that the JDP had suggested that the solution be pursued through a dialogue involving government and OPM representatives.

"In the dialogue, the two parties should not blame and point fingers at each other, but jointly identify core problems and seek solutions that are acceptable to both the government and OPM members," said Neles. (ebf)

Source: http://www.thejakartapost.com/news/2015/12/28/shooting-incident-not-related-jokowi-visit-religious-leader.html

Take stern measures against attackers in Papua: VP

Antara News - December 28, 2015

Jakarta – Vice President Jusuf Kalla has directed the security agencies to take stern measures against those involved in the attack on the Sinak police precinct in the easternmost Indonesian province of Papua.

"We must uphold the law everywhere in Indonesia. Anyone found guilty must face the strong arm of the law," he said here on Monday.

The vice president said both the military and the police will take strong steps to uphold the law in the area. He said he was yet to receive a report from the National Police chief regarding the incident.

The attack on the Sinak police precinct came two days before President Joko Widodos scheduled visit to Papua on Tuesday. The visit will continue till the advent of the New Year.

Kalla said the security agencies will step up security during the presidents visit.

A group of unidentified people had attacked the police precinct on Sunday night, killing three police officers and leaving two others injured, Papua Provincial Police Chief Inspector General Paulus Waterpauw said.

The attackers also took away seven firearms of different types and several rounds of ammunition.

Source: http://www.antaranews.com/en/news/102234/take-stern-measures-against-attackers-in-papua-vp

Three officers dead in attack on Papua police station

Jakarta Post - December 28, 2015

A group of armed men attacked Sinak Police subprecinct in Puncak regency, Papua, on Sunday night, killing three police officers.

Meanwhile, an aircraft carrying Papua Police chief Insp. Gen. Paulus Waterpauw was reportedly shot at on Monday. The Twin Otter plane, owned by Trigana Air, was returning to Jayawijaya regency from Puncak.

As well as killing the three police officers – First Brig. Ridho, Second Brig. Arman and Second Brig. Ilham, the attackers also stole weapons from the Sinak Police subprecinct.

National Police chief Gen. Badrodin Haiti confirmed the attack, saying that the police were confident of the identities of the attackers, and were currently hunting for them.

"Given the area in which the incident took place, we can be fairly sure of who the attackers were," Badrodin said as reported by kompas.com on Monday,

Paulus, meanwhile, told Antara news agency that the attack had occurred at 8:45 p.m.local time, and that a number of other officers had sustained gunshot wounds. According to Paulus, the attackers made off with seven weapons and various kinds of ammunition.

Meanwhile, National Police spokesman Sr. Comr. Suharsono denied that the aircraft carrying Paulus had been hit, but confirmed that the plane's passengers had heard shots.

A number of police officers have fallen victim to shootings by unknown armed groups in Papua in recent years. (bbn)

Source: http://www.thejakartapost.com/news/2015/12/28/three-officers-dead-attack-papua-police-station.html

Three officers killed, rifles stolen in attack on Papua police precinct

Jakarta Globe - December 28, 2015

Farouk Arnaz, Jakarta – Three police officers in the restive province of Papua were killed by suspected separatists on Sunday evening after armed men attacked their precinct, the National Police confirmed.

National Police chief Gen. Badrodin Haiti said the Sinak subdistrict precinct in Papua's Puncak district was attacked by a barrage of gunfire at 8.45 p.m. on Sunday.

Three police officers manning the station were killed in the incident and another officer wounded, the four-star general continued. "The shots came from the back of the police precinct," Badrodin said at his office on Monday.

Several assailants then broke in to the headquarters' armory, stealing seven assault riffles and a crate of ammunition. They fled after dozens of soldiers from a nearby military station arrived as back-up.

Badrodin identified the killed officers as First Brig. Ridho, Second Brig. Arman and Second Brig. Ilham. The fourth officer, First Brig. Dimara was shot in the arm and is now being treated for his injury.

"We are conducting an investigation [to identify the assailants]," the general said, adding that communication with the remote precinct is difficult.

The attack came ahead of President Joko Widodo's visit to Papua, which has seen low level insurgency against Indonesian security officials since Indonesia annexed the resource-rich province in the 1960s.

Joko is scheduled to travel to Merauke – on the province's border with Papua New Guinea – on Tuesday and Wamena in the central highland area on Wednesday, before traveling to neighboring West Papua province.

As of Monday morning there has not been any changes to the president's planned visit, said Papua Police spokesman Sr. Comr. Patrige Renwarin.

Source: http://jakartaglobe.beritasatu.com/news/three-officers-killed-rifles-stolen-attack-papua-police-precinct/

Indonesian defense minister targets Vanuatu at press conference

Vanuatu Daily Post - December 25, 2015

Defense Minister Ryamizard Ryacudu surprised his Australian hosts – and his own colleagues – on Monday with a blunt warning against any attempts to support the Free Papua Movement (OPM) in the country's easternmost territory.

The former Army chief issued the warning during a joint press conference alongside Foreign Minister Retno LP Marsudi and their respective Australian counterparts, Marise Payne and Julie Bishop.

Without entering into specifics, Ryamizard reminded "other countries" to refrain from encouraging separatist movements in resource-rich Papua, hinting that serious consequences would entail if Indonesia's position were ignored.

The 64-year-old retired army general, who during his stint as Army chief became notorious for cracking down on separatist movements in Aceh and Papua, appeared to have weighed his comments carefully.

An Australian journalist attempted to ascertain whether Ryamizard was implying that Indonesia suspected its neighbor Australia of interference in Papua, but he would not be drawn. Members of the Australian Green Party, commonly known as the Greens, are vocal supporters of Papuan independence from Indonesia.

"I would like to close on this point. It is a point that is very troubling for Indonesia, because Indonesia never meddles in the affairs of other countries, and likewise, we don't want others to meddle in ours, or try and divide us. With regard to Papua, certain countries are meddling, and we don't like it," Ryamizard told the press briefing.

"For us, Papua is still part of the Unitary State of the Indonesian Republic. That's non-negotiable. [The area] from Aceh to Papua is the jurisdiction of Indonesia. There's no two ways about it. I hope that's understood," he went on.

Bishop and Payne subsequently faced questions from reporters as to whether Papua had been a topic of discussion during their meeting with Ryamizard and Retno.

"On the issue of Papua, yes, that was part of our discussions. We had a general discussion about regional issues, about Pacific issues, and Australia restated, as we have done on many occasions, publicly and privately, our unconditional support and respect for Indonesia's sovereignty in this regard," Bishop said in her answer.

Retno, meanwhile, told the press briefing that the Indonesian government appreciated Australia's "bold" and "strong" position on the issue of Papua.

"On Papua, we appreciate very much [the Australian stance]. The position is very bold and it is a strong position of Australia to unconditionally respect the territorial integrity of Indonesia," Retno said in response to Bishop's statement.

Later on Monday, Ryamizard clarified his comments, insisting he had not meant to attack Australia and pointing out that his counterpart Payne had emphasized Australia's respect for Indonesia's sovereignty.

His remarks, he said, had been an expression of regret directed at Vanuatu, a Pacific nation that openly supports Papuan separatist movements.

"Vanuatu persists in encouraging Melanesian people to reunite. That's not right, and I disagree with it. This is a unitary nation," the defense minister said.

Source: http://dailypost.vu/news/indonesian-defense-minister-targets-vanuatu-at-press-conference/article_ce975ff7-c7db-5f77-beb5-5c033091546e.html

Aceh

Aceh armed group surrenders, gets amnesty

Jakarta Post - December 30, 2015

Hotli Simanjuntak, Banda Aceh – After three years on the run, 30 active members of the Din Minimi-led armed civilian group in Aceh have surrendered to the government after being promised an amnesty.

"This [promise] encouraged me to surrender. We will not be considered criminals and we will all get amnesty from the government," explained Din, who had led the hundreds of ex Free Aceh Movement (GAM) members, over the phone on Tuesday.

He said that he decided to surrender because President Joko "Jokowi" Widodo had guaranteed that the government would listen to what he had been demanding. "I demand that the government thoroughly implement reintegration and handle the problems of both the orphans and widows of ex-combatants according to the Helsinki MoU," he said.

Signed in 2005, the Helsinki Memorandum of Understanding (MoU) between the Indonesian government and the GAM, ended the three-decades-long bloody conflict that is thought to have resulted in the death of between 20,000 to 30,000 Acehnese civilians, thousands of combatants on both sides and caused an unquantifiable amount of damage to public infrastructure and private property.

The process of the group's surrender began almost two weeks ago and was initiated through communication between Din and Juha Christensen, a former member of the Aceh Monitoring Mission (AMM) involved in the Aceh peace agreement in Helsinki. After intensive communication both agreed to convey the problem to the President.

"I was connected to Pak Sutiyoso who later helped me to speak directly with the President three days ago," Din said, referring to head of the National Intelligence Agency (BIN).

Din said that it was during the direct communication with the President that he conveyed his demands. He also said that with a direct guarantee from the President, Sutiyoso had visited him in Aceh to discuss further actions following his surrender.

Christensen expressed his gratitude for the Din Minimi-led movement's peaceful surrender. "This makes us proud, that such an armed issue has been settled through dialog," Juha said.

He said he had tried to contact Din for some time and had approached him to settle the problem through dialog. "He finally agreed to surrender," he said.

Juha said that, to facilitate the surrender, he used a special line to encourage the various parties to talk. One of his lines included Vice President Jusuf Kalla, whom had been a figure behind the initial peace agreement in Aceh.

"I saw that what Din Minimi was struggling for was positive. Unfortunately, the Aceh administration did not want to listen or talk to Din and thus his demands were never heard," Juha said.

He added that Din was not a separatist, nor a robber. He just wanted justice from the government for the neglected orphans, widows and former combatants. He also made sure that Din's surrender would be followed by amnesty for all 100 members of his group.

"During the conflict era we gave amnesty to over 10,000 members of GAM, why can we not give the same to a few hundred of people?" Juha said.

Din's group has often been linked to armed violence in Aceh. On March 24, this year, two military officers were found dead in Alue Mbang village, Nisam Antara subdistrict, North Aceh. The two officers, Indra and Hendri, were abducted while gathering intelligence on the Din Minimi-led armed group. Din, wanted by police for kidnapping and robbery, is said to have hid in the jungles of East Aceh. He has denied involvement.

Source: http://www.thejakartapost.com/news/2015/12/30/aceh-armed-group-surrenders-gets-amnesty.html

No fireworks for Banda Aceh as officials ban New Year celebrations

Jakarta Globe - December 29, 2015

Jakarta – The city of Banda Aceh has issued a decree banning its predominantly Muslim residents from celebrating the New Year, an official said on Tuesday.

"It is forbidden for Muslims to celebrate Christmas and Christian New Year," Banda Aceh Deputy Mayor Zainal Arifin said, as quoted by Tempo.co.

Zainal added that New Year celebrations – featuring trumpets, fireworks and music – are not in line with the Islamic shariah, which Aceh has adopted as law. It is not clear what kind of penalty violators may face.

The decision was made by a Regional Leadership Communications Forum, comprised of leaders from various government agencies, the deputy mayor said.

The leaders also banned Muslims from marking the changing of the year through Islamic prayer and Koranic recital.

Zainal said Muslims should only celebrate the Islamic New Year, although the lunar calendar has never been adopted by Indonesians, including those in Aceh.

Source: http://jakartaglobe.beritasatu.com/news/no-fireworks-banda-aceh-officials-ban-new-year-celebrations/

Human rights & justice

Yogyakarta's special status law has triggered serious rights violations

Jakarta Post - December 31, 2015

Bambang Muryanto, Yogyakarta – The Yogyakarta Legal Aid Foundation (LBH Yogyakarta) has said that Law No. 13/2012 on Yogyakarta's special status caused human rights violations in the province throughout 2015.

"The 2013 law on Yogyakarta's special status has been a major cause of rights violations to land ownership and employment and has criminalized residents who opposed the expropriation of their land to support the development policies of the provincial administration," LBH Yogyakarta director Hamzal Wahyudin told journalists in Yogyakarta recently.

The rights activist explained the situation at the launch of LBH Yogyakarta's end-of-year report.

The LBH Yogyakarta said in its report that the human rights violations occurred during the construction process of the new airport in Yogyakarta, in sand mining activities in Kulonprogo regency and during the land- awarding practice of kekancingan from the Yogyakarta Palace to investors, who in turn reportedly degraded and destroyed people's residences.

Hamzal said the widespread abuse of human rights in Yogyakarta began with the 2013 law on Yogyakarta's special status, which gave the Yogyakarta Palace and the Pakualaman the right to own grounds again, similar to the condition in place during the Dutch colonial era.

The problem centered on a regional regulation (Perda) on land affairs, which aimed to regulate in more detail the status of the Yogyakarta Palace and the Pakualaman as owners of the grounds. The regulation has not yet been passed by the Yogyakarta Legislative Council.

"We will convey this report to Yogyakarta's regional heads at the provincial, regency and municipality levels so that there will be no more human rights violations in 2016," said Hamzal.

Rizky Fatahilah, head of the advocacy division at the the LBH Yogyakarta, said there had been a close connection between the 2013 law on Yogyakarta's special status and the implementation of the Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI) project, which designated Yogyakarta as a tourist and industrial hub.

Citing an example, Rizky said the Yogyakarta administration had claimed that the land that it had used to develop a new airport belonged to Pakualaman, not to local people. Consequently, the administration unilaterally took over the land from the local people to develop the infrastructure needed to support the province's tourism industry.

As a result, he said, thousands of local people had been negatively affected and farming land around Kulonprogo would continue to decline due to the land conversion practices undertaken for the construction of the new airport.

"After Yogyakarta's special status law took effect, there was massive land conversion, including through the kekancingan land-awarding practice from the Yogyakarta Palace to investors," said Rizky.

One of the impacts of the MP3EI project, Rizky said, was that Yogyakarta was now full of malls, hotels and apartments. The development process might continue despite growing protests from Yogyakarta's residents, who are worried about the development's negative social and environmental impact.

Separately, the Yogyakarta Administration's legal bureau head, Dewo Isnu Broto Imam Santosa, rejected the accusation, saying that all the big development projects in Yogyakarta were in line with existing procedures. (ebf)

Source: http://www.thejakartapost.com/news/2015/12/31/law-yogyakarta-s-special-status-thought-have-triggered-serious-rights-violations-thr

Sexual & domestic violence

Violence against women still high in Palu

Jakarta Post - December 23, 2015

Palu – Cases of violence against women had not declined in Palu, Central Sulawesi, in the past seven years, mostly as a result of economic problems, an official said on Tuesday.

"Every year, the number reaches more than 100 cases. Most cases have economic causes," Palu Women's Empowerment and Family Planning Agency Head Irmayanti Pettalolo said.

As of November, Irmayanti said the number of cases of violence against women had reached 132 cases while last year, the number was 182 cases.

To overcome the problem, Irmayanti said her agency had set up a program that aimed to improve women's creativity and welfare to help them become more financially independent.

Source: http://www.thejakartapost.com/news/2015/12/23/islands-focus-violence-against-women-still-high-palu.html

Sexual abuse dominates the year's crimes against children, group says

Jakarta Globe - December 22, 2015

Jakarta – A child protection advocacy group has recorded nearly 3,000 reports of child abuse throughout the year, of which almost 60 percent were sexual assault and abuse cases.

In a press conference at its office in East Jakarta on Tuesday, the National Commission on Child Protection (Komnas PA) said it has received 2,898 complaints this year – 59.3 percent of which were sexual abuse cases while the remaining cases were physical abuse, abandonment, illegal adoption and child trafficking.

Komnas PA secretary general Samsul Ridwan said 62 percent of sexual assault cases were perpetrated by someone known to the child. "It can be the children's own fathers, neighbors, teachers or brothers," he said.

Arist Merdeka Sirait, Komnas PA chairman, said the government and law enforcement agencies have not focused enough on solving and preventing child abuse cases.

"With all these crimes happening to children, it is fitting that such cases be considered as extraordinary crimes just like corruption, terrorism and drugs. We want sexual abuse crimes be punished severely," he said. Arist has been calling for offenders in severe child abuse cases to be sentenced to death.

Sexual abuse physically harms children in the short term, but also leads to psychological wounds which take much longer to heal, he said. Children are particularly at risk as they are unable to defend themselves, particularly if assaulted by an adult family member.

The group supports the government's plan to introduce chemical castration for offenders, despite criticism from other experts and activists. "Why should we care about the rights of the perpetrators? Think about the victims. We must prioritize the victims," Arist said.

This year has seen a string of high-profile cases involving children, including the June murder of 8-year-old Balinese schoolgirl Engeline and a 9-year-old girl who was found sexually assaulted and murdered in Kalideres, West Jakarta, in October.

Source: http://jakartaglobe.beritasatu.com/news/sexual-abuse-dominates-years-crimes-children-group-says/

Labour & migrant workers

Kadin chair Rosan urged to meet obligations to former employees

Jakarta Post - December 29, 2015

listasia Anggun Wijaya, thejakartapost.com – The Legal Aid Center for the Press (LBH Pers) has issued a second warning letter to PT Idea Karya Indonesia – the holding company of the defunct station Bloomberg TV Indonesia – to pay its obligations to its ex-workers. Idea Karya Indonesia is owned by Indonesian Chamber of Commerce and Industry (Kadin) boss Rosan Roeslani.

LBH Pers executive director Nawawi Bahrudin said that Rosan had again failed to fulfil his obligations to journalists previously employed by Bloomberg TV Indonesia.

"We have still not received any response from Bloomberg TV Indonesia. We will follow up this matter at the beginning of January," Nawawi told thejakartapost.com on Tuesday in Jakarta.

On Dec. 4, LBH Pers, acting on behalf of former employees of Bloomberg TV Indonesia, issued the first warning letter to that station, which officially closed because of financial concerns in September.

In the letter, Bloomberg TV Indonesia was urged to pay compensation to its former employees based on a collective agreement signed by employees and management in July.

In the agreement, Idea Karya agreed to pay compensation by regular instalments at the end of each month. However, the management failed to fulfil the agreement.

"The main obstacle is the declining economy, which has tightened our budget. We also had other obligations to other parties that could not be set aside. However, we still uphold our commitment and will carry out the maximum efforts [to pay our obligations]," said Bloomberg TV Indonesia CEO Aditya Chandra Wardhana on Monday.

He claimed that the shareholders of Idea Karya, among them Rosan, were also fully committed to settling this matter. "In spite of all limitations, we will fulfil our obligations to the greatest extent possible, especially our obligations to employees," said Aditya.

Negligence

Arif Budiman, a representative of former Bloomberg TV Indonesia employers, explained that the management had neglected its obligation to pay compensation at the end of each month.

"Bloomberg TV has failed to pay the compensation on time. From July to December, some former employees weren't paid. [Management] said it had no funds, or promised to pay soon," Arif said on Tuesday.

He added that former employees had been regularly rebuffed when proposing meeting with management "We urge an immediate meeting with Bloomberg TV management related to the payment. Managers keep inventing excuses not to meet us," said Arif.

The only meeting held by ex-employees and management of Bloomberg TV was in July this year and resulted in the signing of the collective agreement. Currently, Arif said, communication with management was only possible through email or Whatsapp, with messages often left unanswered.

Arif added that the ex-workers would not hesitate to take the dispute to the Industrial Relations Court if the management showed no genuine will to fulfil its obligations.

Rosan, meanwhile, has not answered any of the calls or messages from thejakartapost.com regarding this matter. (ags)

Source: http://www.thejakartapost.com/news/2015/12/29/kadin-chair-rosan-urged-meet-obligations-former-employees.html

Freedom of speech & expression

Experts call for blasphemy articles to be removed from ITE Law

Jakarta Post - December 30, 2015

National – The government has been urged to carry out comprehensive revision of the Electronic Information and Transactions (ITE) Law by removing the pasal karet (catchall articles), particularly Article 27, Paragraph 3 of the law, which is seen as having been repeatedly used by those in power to silence critics.

Safenet regional coordinator Damar Juniarto said that the catchall or widely interpretable articles of the law that refer to blasphemy were often misused by certain interests.

"The people who use those articles are those who hold power and those who have access to power, while the victims are common people," said Damar as reported by kompas.com on Tuesday.

The government has officially submitted a bill to revise Law No 11/2008, the ITE Law, to the House of Representatives, but human rights activists have criticized the government for attempting to retain the law's Article 27, Paragraph 3.

Therefore, Damar expressed the hope that the government and the House of Representatives would remove all ambiguous articles, including Article 27, when they debated the revision of the law.

Meanwhile, Legal Aid Institute for the Press (LBH Pers) research and networking division head Asep Komarudin shared Damar's opinion that there was no need for the ITE Law to include articles on blasphemy, an offense already covered by the Criminal Code (Kuhap).

"It is regrettable that Article 27, Paragraph 3 is maintained in the revision bill, given that we have long called for its removal. It is a duplication of an article in the Criminal Code," said Asep, adding that since the law had come into force, some 134 cases had been brought under the article in question.

According to Damar, the article is also frequently used by certain parties to take revenge against critics through social media, and could deter whistle-blowing.

Therefore, he called on the government and the House to return the cyber law to its initial objective, namely to regulate electronic transactions. (bbn)

Source: http://www.thejakartapost.com/news/2015/12/30/experts-call-blasphemy-articles-be-removed-ite-law.html

Indonesia yet to see freedom of expression: Kontras

Tempo - December 26, 2015

Egi Adyatama, Jakarta – The Commission for Missing Persons and Victims of Violence (Kontras) said that the state had misused laws on the freedom of expression and the liberty of association and assembly.

"The laws and policies that guarantee those rights have been used to control public's freedom of expression," Kontras coordinator Haris Azhar at his office on Saturday, December 26, 2015.

Over the last year, Kontras recorded 238 incidents violations related to freedom of expression. Kontras revealed that police had dominated the list of the violations with 85 cases, followed by public officials with 49 cases, non-governmental organizations with 31 cases, military with 17 cases and universities with 5 cases. West Java has been the region with the highest number of violations (41 cases).

According to Haris, police had conducted arbitrary arrests, persecution, bans on media coverage, and bans on hijab. Meanwhile, public officials were involved in bans on activities, media, and websites on behalf of radicalism eradication efforts.

In addition, Kontras also highlighted an article on libel against the President that was planned to be included in the Criminal Code revision. Haris said that the policy did not clearly define the libel against the President.

"It also violates the rights to express opinion, input and criticism in a democratic country," Haris added.

The data, collected by Kontras, was in line with reports published by two International human rights institutions, namely Freedom House and World Justice Project. Freedom House ranked Indonesia as "partly free".

Source: http://en.tempo.co/read/news/2015/12/26/055730827/indonesia-yet-to-see-freedom-of-expression-kontras

Political parties & elections

Ministry legalizes Aburizal Bakrie's leadership of Golkar Party

Jakarta Post - December 31, 2015

Jakarta – The Law and Human Rights Ministry has revoked a decree that previously recognized the Golkar Party leadership as that which emanated from a national meeting (Munas) at Hotel Mercure, Ancol, Jakarta, in December 2014. The revocation has paved the way for the camp of Aburizal Bakrie to take full of control the party.

Nurdin Halid, deputy chairman of the Golkar Party's central executive board, (DPP) was elected in November last year. He confirmed the revocation of the decree and understood that the government now fully recognized Aburizal's leadership of the Golkar Party.

Nurdin said a staff member of Law and Human Rights Minister Yasonna Laoly handed over the new decree on the Golkar Party leadership to Idrus Marham, the party's secretary-general, at the DPP Golkar office on Thursday morning.

"It was handed over directly to the DPP Golkar office at around 7:30 a.m.," said Nurdin as quoted by kompas.com in Jakarta on Thursday.

He did not give further details about the content of the minister's decree except to say that it was issued to implement the Supreme Court ruling that legalized Aburizal's leadership of the Golkar Party. "With this new decree, the Golkar Party leadership elected in Munas Ancol has been officially dissolved," said Nurdin.

The dispute over the leadership of the Golkar Party was brought before the court. The two bickering factions led by Aburizal and Agung Laksono filed lawsuits against each other. On Oct. 20, the court granted Aburizal's lawsuit against a decree previously issued by the government that legalized the camp of Agung.

On Tuesday, the Golkar Party's advisory council head Akbar Tandjung called on the Aburizal and Agung camps to immediately hold a national meeting in the beginning of 2016. This was needed because there had been signs of improvement in the party despite ongoing difficulties in the reconciliation process, he said.

"Legal processes, reconciliation efforts and even meetings to strengthen bonds of friendships have been conducted but up until now, there has been no indication that the situation in the party will get better. Therefore, we will call for a Munas in the beginning of 2016," said Akbar as quoted by kompas.com.

He further noted that all previous reconciliation efforts had been unable to deliver positive results. Both Aburizal and Agung claimed that they had authority as Golkar Party chairman and this had produced a deeper internal split within the party, he added.

Akbar further explained that the internal split had led the Golkar Party to suffer losses in the regional elections on Dec. 9. During the elections, he said, the number of votes obtained by the party was far lower compared to the other parties. Golkar managed to win in 49 out of 116 regions, placing the party eighth among parties with the highest number of votes. (ebf)

Source: http://www.thejakartapost.com/news/2015/12/31/ministry-legalizes-aburizal-bakrie-s-leadership-golkar-party.html

Government to endorse Aburizal's leadership

Jakarta Post - December 30, 2015

Jakarta – Law and Human Rights Minister Yasonna Laoly has said that the government will issue a ministerial decree soon to recognize Aburizal Bakrie as Golkar Party chairman to follow up on a Supreme Court ruling.

"Just wait for the big day," said Yasonna on the sidelines of the inauguration of the new Corruption Eradication Commission (KPK) building on Tuesday, as quoted by jpnn.com.

The Indonesian Democratic Party of Struggle (PDI-P) politician said that Aburizal's supporters should remain patient while waiting for the issuance of the decree.

Aburizal filed a lawsuit with the Supreme Court to challenge a ministerial decree that had awarded Golkar's chairmanship to Agung Laksono. The verdict overturned an earlier decision made by the Jakarta State Administrative Court to uphold Agung's chairmanship.

Since the Supreme Court ruling, Aburizal has been de facto leader of the party. The businessman-cum-politician recently appointed Ade Komarudin, the party's faction leader at the House of Representatives, to replace Setya Novanto as House speaker.

Setya tendered his resignation from the post following an ethics probe and public condemnation over his involvement in contract negotiations of a mining company.

Source: http://www.thejakartapost.com/news/2015/12/30/national-scene-govt-endorse-aburizal-s-leadership.html

PKS to remain outside the government

Jakarta Post - December 29, 2015

Jakarta – The Prosperous Justice Party (PKS) has reiterated its commitment to remain outside the government camp following President Joko "Jokowi" Widodo's plan to implement another Cabinet shake-up.

Senior PKS politician Hidayat Nur Wahid said the recent visit of party chairman Sohibul Iman to the State Palace did not mean that PKS would join the government.

"We emphasize again that the PKS is outside the Cabinet. PKS will not follow in the footsteps of [the National Mandate Party, or PAN]," he said on Monday as quoted by tribunnews.com.

The former People's Representatives Assembly (MPR) speaker also criticized Jokowi for not being consistent in his earlier commitment to refrain from trading ministerial posts for political support.

"Jokowi once promised to form a Cabinet that was free from political transactions. The PKS supports Jokowi prioritizing professionalism in his Cabinet," Hidayat said.

PAN chairman and current MPR speaker Zulkifli Hasan announced his party's support for the government after visiting with Jokowi at the State Palace in September. Speculation is now rife that PAN will soon be awarded Cabinet posts in the next shake-up.

Source: http://www.thejakartapost.com/news/2015/12/29/national-scene-pks-remain-outside-government.html

Jokowi denies allocating two ministerial positions to PAN

Jakarta Post - December 28, 2015

Jakarta – President Joko "Jokowi" Widodo has denied the claim that he has promised to allocate two ministerial posts for the National Mandate Party (PAN) in exchange for the party's support.

Cabinet Secretary Pramono Anung stated that the President had not discussed any details related to a Cabinet reshuffle with any political party. "I want to clarify that the President has never talked [about a reshuffle]," said Pramono in Jakarta on Monday as reported by kompas.com.

Previously, PAN deputy chairman Aziz Subekti said his party would receive two ministerial posts as part of Jokowi's upcoming Cabinet reshuffle.

Aziz claimed that he received information about the reshuffle from the State Palace. He further said that his party had prepared Taufik Kurniawan and Asman Abnur to join the Cabinet.

Soon after the election of Zulkifli Hasan as the chairman of PAN, replacing Muhammad Hatta Rajasa, the party expressed its wish to join the ruling coalition and leave the opposition Red and White Coalition (KMP).

"It sounds as though there is an agreement about the appointment of certain names [to become ministers]. But it is not true," Pramono said.

Pramono stressed that the President had the full authority to make the decision to appoint and replace ministers. Pramono called on other parties to respect the President's prerogative and refrain from intervening.

"If there is a reshuffle, it is the authority of the President. Whoever the ministers are to be reshuffled, the President certainly has his own records," said Pramono. (bbn)

Source: http://www.thejakartapost.com/news/2015/12/28/jokowi-denies-allocating-two-ministerial-positions-pan.html

Groups challenge problematic regional election law

Jakarta Post - December 28, 2015

Jakarta – Civil society groups are looking to challenge Article 158 of Law No. 8/2015 on regional elections, which they believe sets a limit on candidates who want to lodge complaints about vote rigging in the Dec. 9 balloting.

The article stipulates that the Constitutional Court may register complaints regarding possible vote rigging only from political parties or pairs of candidates who competed in the Dec. 9 regional elections and who only saw between a 0.5 percent and 2 percent difference in the votes garnered.

"The regulation is seriously ridiculous as it has failed to uphold electoral justice. It seemed like the lawmakers really thought that no candidate or election committee would cheat," Setara Institute researcher Ismail Hasani said at a public discussion in Jakarta on Sunday.

The Constitutional Court has received 145 reports of disputes over the regional elections and is expected to announce its decision on which cases it will handle starting on Jan. 7 to 12, 2016.

Ismail cited data from his research showing that the Constitutional Court would only follow up on about 21 reports and throw out the rest of the cases because they failed to meet the administrative requirements stipulated in the article.

"It means that corrupt candidates will end up becoming leaders in a number of regions across the country," Ismail said.

He said that the problematic article had in fact been a proposal from the Constitutional Court to the House of Representatives when the two institutions were involved in deliberating the law.

The court argued it could deal with a smaller number of cases by implementing such a stipulation.

Ismail proposed that only best solution to the problem is for President Joko "Jokowi" Widodo to pass a regulation in lieu of law (Perppu) stipulating that the court has to process all complaints, or at least set a new limit on which candidates could file complaints to the court.

Adhie Massardi from the Clean Indonesia Movement (GBI) warned that it would be dangerous if the President kept on issuing Perppu for all political problems in the country. "It's not about the law, but about our interpretation of the law," Adhie said.

He then suggested that the President give the General Elections Commission (KPU), the Election Supervisory Agency (Bawaslu) and the Constitutional Court the authority to come up with a joint interpretation of the law.

"The Constitutional Court and other relevant parties should have known that they can't implement any law without a clear guideline on its interpretation," Adhie said.

Indonesian Voters Committee (TEPI) coordinator Jerry Sumampouw said the public could now do nothing but wait and watch the process at the court. "It has already happened. Even if the House decided to revise the law, it will take effect in the next season of regional elections," Jerry said.

Salamuddin Daeng of the Institute for Global Justice (IGJ) said the unresolved problems from the current regional elections could spell a disaster in the future.

"In the short run, the government would not be able to solve this political instability. Just let the Constitutional Court ignore the reports and see that it could turn into a serious act of rebellion from the public in the future," Daeng warned. (foy)

Source: http://www.thejakartapost.com/news/2015/12/28/groups-challenge-problematic-regional-election-law.html

Journalism & media freedom

Terror and violence haunt journalists in Sumatra

Jakarta Post - December 31, 2015

Padang – Terror and violence continue to stalk and threaten journalists operating in Sumatra, the Padang Press Legal Aid Institute (LBH) announced in its end-of-year report. The violence included the murder of a journalist.

Padang Press LBH director Roni Saputra said his organization had recorded 24 cases of violence against journalists in Sumatra this year, much lower than the 54 cases recorded in 2014.

"Despite the declining number, we are concerned about attempts to terrorize, threaten and intimidate journalists. A journalist in Lampung was even murdered this year, thus adding to the long list journalists murdered in Indonesia. We hope this will no longer happen in the future," Roni said on Wednesday.

The murder victim, Beni Faisal, was chief editor of Fokus Lampung. He was shot and killed on Jan. 25 by an unidentified person in front of his house. Although the motive and the perpetrators have yet to be uncovered, Beni's weekly tabloid was known to be critical of local government policies.

Source: http://www.thejakartapost.com/news/2015/12/31/islands-focus-terror-and-violence-haunt-journalists-sumatra.html

Police the biggest threat to journalists in 2015

Jakarta Globe - December 22, 2015

Jakarta – The Indonesian police were responsible for a third of reported assaults against journalists throughout 2015, an advocacy group says.

The Legal Aid Institute for the Press, or LBH Pers, recorded 47 instances of violence against members of the media carrying out their jobs this year. In 17 of those cases, the police were the perpetrators, said LBH Pers research head Asep Komaruddin.

"Press attacks still occur because the perpetrators are never" brought to justice, Asep said in Jakarta on Tuesday as quoted by CNN Indonesia. "They can get away with it and others people will also do it."

Other perpetrators of attacks against the press included members of the public, regional legislators, businessmen and entertainers, LBH Pers said.

The group also identified Jakarta as the province with the highest number of assaults (eight out of 47), followed by the heavily policed Papua (five).

"It's such an irony because Jakarta is supposed to be the place that people look up to [in terms of press protection]," said LBH Pers executive director Nawawi Bahruddin. "But if so many cases happen here, what's it like in other regions?"

In one of the most high-profile cases, police beat a cameraman with the Australian Broadcasting Corporation, Archicco Guilianno, after he refused to erase footage of officers assaulting Papuan demonstrators in Jakarta on Dec. 1. Police also harassed other members of the foreign press, who were covering the demonstration marking the anniversary of a separatist movement in Papua.

Asep said another, lower-profile threat to journalists in Indonesia this year was layoffs, as several news outlets shuttered due to financial difficulty, including the Jurnal Nasional and Harian Bola daily newspapers, and Bloomberg TV Indonesia.

"If the journalists don't earn enough money, it interferes with the quality of the news they cover. Their rights should be protected in line with the workers' law," Asep said.

Source: http://jakartaglobe.beritasatu.com/human-rights-news/police-biggest-threat-journalists-2015/

Environment & natural disasters

After loss in forest fire case, government to file appeal

Jakarta Post - December 31, 2015

National – The government has expressed its desire to file an appeal to a higher court following its loss at the Palembang District Court in relation to a forest fire case against PT Bumi Mekar Hijau (BMH) on Wednesday.

The loss foiled the government's hopes for compensation of Rp 2.6 trillion (US$188.27 million) and a restoration fund amounting to Rp. 5.2 trillion.

"We will file an appeal and we have frozen the company's environmental licence," said Rasio Ridho Sani, the Environment and Forestry Ministry's director general for law enforcement, on Wednesday as reported by tempo.co.

Judges on the Palembang District Court rejected the Environment and Forestry Ministry's lawsuit against BMH accusing the company of burning down forests and causing losses in biodiversity and land mass. The lawsuit was submitted by the ministry in February and the first hearing was held in March.

In his ruling, judge Parlas Nababan said that the plaintiff could not prove the scale of state losses. "Biodiversity loss could not be proven," said Parlas at the court on Wednesday.

The judges also believed that BMH was not directly responsible for the forest fires because the company had appointed a third party to cultivate the land.

Before the issuance of the verdict, the judges conducted a field trial at BMH's concession in Ogan Komering Ilir district, South Sumatra, in November.

Rasio expressed his disappointment over the verdict, emphasizing that the government had submitted sufficient evidence to warrant a victory. Rasio argued that the decision of the judges was not in line with the facts.

He added that the government would keep trying to prevent forest fires in the country. Companies like BMH, he said, destroyed the environment and public health. (cal/bbn)

Source: http://www.thejakartapost.com/news/2015/12/31/after-loss-forest-fire-case-government-file-appeal.html

In bid for justice over forest fires, government falls at first hurdle

Jakarta Globe - December 30, 2015

Jakarta – The Indonesian government has lost a Rp 7.8 trillion ($565 million) lawsuit brought against a pulp and paper company accused of setting fires that razed 20,000 hectares of land in South Sumatra last year.

Bumi Mekar Hijau, a subsidiary of the Sinar Mas conglomerate, is the first of dozens of pulp and palm oil companies being pursued by the Environment and Forestry Ministry for slash-and-burn clearing.

Activists say Wednesday's judgment could set a poor precedent for efforts by the government to go after perpetrators whose fires destroyed more than two million hectares of forest this year, generated health-threatening haze over vast swaths of Sumatra and Kalimantan, and led to record levels of greenhouse gas emissions.

In its ruling, the Palembang District Court declared that the Environment Ministry did not have a valid case against Bumi Mekar Hijau. Judge Parlas Nababan also ordered the ministry to pay Rp 10 million in legal costs to the company.

In October, the ministry filed suit against Bumi Mekar Hijau, which owns pulpwood concessions in South Sumatra's Ogan Komering Ilir district, demanding that the company pay the state Rp 7.8 trillion for damages it allegedly incurred by illegally setting 20,000 hectares of land ablaze.

It also named the company's executives as respondents in the suit, which meant they could have faced criminal charges carrying prison sentences of up to 10 years.

Rasio Ridho Sani, the director general for law enforcement at the Environment Ministry, told reporters after the hearing that his office would appeal against the ruling. "We are fighting for the justice for the people who suffered from the haze and forest fires," he said on Wednesday as quoted by Tribunnews.com.

The Indonesian Forum for the Environment (Walhi) also expressed its disappointment at the ruling. "Legal order and justice for the environment and the people have been destroyed," the group wrote on its Facebook page.

The case against Bumi Mekar Hijau was seen as a major test of Indonesia's law enforcement institutions against companies accused of slash-and-burn forest clearing, in large part because of the high profile of holding group Sinar Mas, which has interests in pulp and paper, palm oil, property and banking.

The fires this year alone cost the Indonesian government Rp 221 trillion, or 1.9 percent of its GDP, in just five months, according to the World Bank – a figure higher than the cost of rebuilding Aceh after the December 2004 Indian Ocean tsunami.

Source: http://jakartaglobe.beritasatu.com/news/bid-justice-forest-fires-government-falls-first-hurdle/

After decades of exploitation, Java on brink of ecological crisis

Jakarta Post - December 30, 2015

Jakarta – A group of concerned scientists, researchers, environmentalists and agrarian activists launched a petition on Tuesday calling on the government to take aggressive action to stop what they deemed the ongoing ecological destruction in Java.

The group urged President Joko "Jokowi" Widodo to instruct the state-owned enterprises and environment and forestry ministries to review the environmental management feasibility of all cement factories, gold and sand mining, as well as all power plant companies operating in Java. The group blamed the rapid deterioration of the environment in Java on the industrial activities.

The group also called on the Agrarian and Spatial Planning Ministry to review a number of regional spatial plans (RTRW) that it said accommodated infrastructure projects without considering the principles of environmental justice. One of 248 signatories of the petition, Bogor Institute of Agriculture (IPB) senior researcher Soeryo Adiwibowo, said that industrial activities had led to steep forest cover decline in Java, from 15 percent in the early 1990s to 3 percent currently.

Soeryo said the forest loss had not only led to disasters such as flooding, prolonged drought and forest fires but also land conflicts, which mostly involved private firms and indigenous people.

"The biggest contributors to our ecological crisis are economic and political decisions that ignore environmental consequences," Soeryo said.

Eko Cahyono, executive director of the Bogor-based Sajogyo Institute agrarian study center, said that the cement industry could bring about a catastrophic ecological crisis, especially in places such as Mount Kendeng Utara in Central Java, where the operations of a cement company could impact its surrounding regencies – Rembang, Pati and Grobogan.

A lower court in Pati ordered the closure of a local cement factory in November, effectively halting the limestone mining operations of PT Sahabat Mulia Sakti.

Another destructive activity is ironsand mining in Kulon Progo, Yogyakarta, where the practice has not only changed the area's landscape but deprived hundreds of local farmers of arable land.

Hendro Sangkoyo of the School of Democratic Economics research institute highlighted that in the last five years, the private sector, which ran mining or related industries, had become a key player in environmental destruction and that the government had done little to reign it in.

He said that the government issued this year a number of business permits for mining companies that resulted in the eviction of locals. He said that Jokowi's pledge to improve infrastructure could result in ecological disaster.

"It's impossible for the government to prevent ecological disaster by boosting infrastructure development because such development requires companies to produce materials such as cement," Hendro said.

A senior researcher with IPB's forestry department, Hariadi Kartodihardjo, said that local governments shared the blame for environmental degradation.

IPB data said that between 2007 and 2008, there were at least 122 of 278 bylaws passed by local governments in Java that made it easy for companies to exploit natural resources. Most of Java is prone to natural disaster on account of worsening ecological problems.

"In 2015, of 118 regencies and municipalities in Java, 80 percent experienced heavy flooding, while 90 percent suffered from prolonged drought," Hariadi said. (foy)

Source: http://www.thejakartapost.com/news/2015/12/30/after-decades-exploitation-java-brink-ecological-crisis.html

Paper industry demands revocation of forest-license freeze

Jakarta Post - December 28, 2015

Khoirul Amin, Jakarta – The government will have to revoke a freeze on operating permits for more than 900,000 hectares of industrial forest or the local pulp and paper industry will lose its competitiveness due to a disruption in the suply of raw materials, business groups and analysts have said.

Executive director of the Indonesian Forest Concessionaries Association (APHI), Purwadi Suprihanto, recently demanded that the government lift its ban, arguing that it would hamper the supply of raw materials to the local pulp and paper industry.

"We're very much concerned about the government's actions. The pulp and paper industry is one of the country's most prominent industries and instead of supporting it the government has created an obstacle," he said.

According to Purwadi, the Environment and Forestry Ministry has suspended the operating permits of 23 companies alleged to have had a hand in causing recent forest fires. The total area of forest with frozen permits has reached 901,189 hectares despite the fact that not all of the area had been burnt, he said.

Purwadi said that, of the total area prohibited for operation, some 550,000 hectares had supplied raw materials for local pulp and industry. The suspension of operating licenses in the area would potentially reduce the raw material supply next year by 3 million tons, he went on.

Voicing a similar view, the Indonesian Pulp and Paper Industry Association (APKI) executive director Liana Bratasida said that the uncertainty surrounding the timeline for the freeze on the operating permits had created an unfavorable business climate for the country's pulp and paper industry. "It will also harm the country's reputation in the eyes of investors," she said.

A new trade minister regulation requiring that foreign exporters of long fibers – raw materials for paper – to obtain environmental certificates and approval documents from both central and local administration every time such products are exported to Indonesia is yet another obstacle that has been created by the government, according to Liana.

The new regulation was due to be implemented at the beginning of next year, she added.

Liana argued that while the new import regulation was aimed at protecting both the environment and local industry, due to the suspension of operating permits in some concession areas, it would lengthen the time-period for imports amid a surging need for raw materials.

Such counterproductive measures will, according to Liana, hinder the growth of the local pulp and paper industry.

With pulp and paper exports reaching US$4.01 billion in the January- September period of this year, with Malaysia, China and Taiwan having become the largest markets, the country's pulp and paper industry currently holds the top industry position within the ASEAN region, according to data from the Trade Ministry.

Meanwhile, the pulp and paper industry remains very competitive in comparison to Scandinavian countries due to tropical climate and better access to international markets, Liana said. The pulp and paper industry has been included as one of the government's priority industries for the period between 2015 to 2035, along with the food, pharmaceutical and textile industries.

The Institute for Development of Economics and Finance (Indef) executive director Enny Sri Hartati said that the country's pulp and paper industry could provide a competitive advantage for the country within the ASEAN single market.

The Industry Ministry agriculture and plantation products director, Pranata, said that his ministry would coordinate with the Forestry and Environment Ministry to discuss the matter and find a solution that is supportive of the industry.

Forestry and Environment Minsitry, meanwhile, have yet to comment.

Source: http://www.thejakartapost.com/news/2015/12/28/paper-industry-demands-revocation-forest-license-freeze.html

Report finds SVLK fails to stop illegal logging

Jakarta Post - December 23, 2015

Hans Nicholas Jong, Jakarta – Indonesia's timber legality system has not been able to stop pulp and paper giants from using illegally sourced timber, as the system is filled with loopholes, an investigation has found.

According to the investigation, pulp and paper companies PT Adindo Hutani Lestari (AHL) and PT Toba Pulp Lestari (TPL) have not been compliant with the country's timber legality system, called the Wood Legality Verification System (SVLK), even though both firms received legal certification and continued to supply timber to pulp and paper giants.

PT AHL supplies timber to PT Riau Andalan Pulp and Paper (RAPP), which is a subsidiary of Asia Pacific Resources International Limited (APRIL), Indonesia's second-largest pulp and paper producer. PT TPL, meanwhile, is an affiliate of the Royal Golden Eagle Group according to the World Wildlife Fund (WWF) and Greenpeace. APRIL is also a part of the group.

"We found that PT AHL was still opening up peatland areas [for pulp plantations in North Kalimantan]," Muhammad Kosar from the Indonesian Independent Forest Monitoring Network (JPIK) said. "Some of the peatlands even had depths of more than 3 meters."

The investigation, conducted jointly by the JPIK and Forest Watch Indonesia (FWI), also found that PT AHL still harvest their wood from natural forests, outside of its own plantation.

Kosar said that PT AHL harvested their wood unsustainably in order to meet the pulp and paper demand from PT RAPP, frustrating APRIL's mission to stop forests being cleared for new plantations.

He based his argument on an Environment and Forestry Ministry document called the Industrial Material Fulfillment Plan (RPBBI), which showed the usage of timber sourced from natural forests from September to November 2015.

The document showed an increasing volume of timber being cut by PT AHL in North Kalimantan, from 1.07 million cubic meters in September to 1.2 million in October and 1.3 million in November. Meanwhile, the volume of timber cut by PT RAPP itself was constant during that time, with 171,630 cubic meters in Kepulauan Meranti regency and 3,421 M3 in Pelalawan regency, Riau.

"These findings indicate a form of violation of these companies' own commitments to their own internal Sustainable Forest Management Plan [SFMP] policies. This plan is only to boost their image so that their products sell well in the global market," Kosar said.

Earlier this year, APRIL announced PT RAPP and its suppliers had stopped harvesting from any Indonesian natural forests, four years ahead of its commitment.

According to APRIL, starting next year the company will derive all of its pulp wood from its own plantations and those of its suppliers, which now total 480,000 hectares, for its 2.8-million-ton capacity pulp mills.

Besides PT AHL, the investigation also found that PT TPL's operation in North Sumatra was mired with land disputes and the violation of locals' human rights.

According to Kosar, the local community living in PT TPL's operating area is still struggling to take over management of a 3,900-square-meter customary forest from the company.

For decades the local residents used to make ends meet by harvesting incense trees from the forest. The villagers, however, are now unable to rely on the forest for their livelihoods because PT TPL, which in 1992 was granted a concession to manage 269,000 hectares of forest in North Sumatra for 35 years, started felling trees on customary land in 2009.

"The conflict there has reached boiling point, with the case falling into the hands of the National Commission on Human Rights [Komnas HAM] in 2014 but until now no resolution has been achieved because of a lack of clear boundaries between the customary forest and the concession," Kosar said. Despite the problems, both PT AHL and PT TPL managed to obtain SVLK certificates, issued by PT Sarbi International Certification and PT Ayamaru Sertifikasi, respectively.

"PT AHL received a 'good' rating in its final performance assessment result, with a score of 91 percent," said Kosar. Therefore, he suspected that certification agencies had failed to assess either company properly as both clearly did not meet the criteria set by the SVLK system.

Commenting on the investigative report, APRIL spokesman Agung Laksamana said that neither company was part of APRIL.

"PT AHL is a third party and short-term supplier of fibre to APRIL Group/RAPP. It is not part of the APRIL Group/RAPP and we do not have any legal relationship with PT AHL beyond a supply chain relationship," he told The Jakarta Post on Tuesday. "PT TPL is a publicly listed company and not a subsidiary or an affiliate of the APRIL Group. Therefore, we cannot provide any comment on this issue."

Agung also maintained that APRIL was fully committed to its Sustainable Forest Management Plan.

"We have instructed all our suppliers to fully comply with our SFMP2.0 and more importantly not to conduct any new developments in natural forests and forested peatland. We will continue to ensure that they comply with our strict policies. However, if our suppliers are proven to have committed any violation of this policy, APRIL/RAPP will suspend the relationship with that supplier until it has proven that it has taken the necessary actions to ensure that it fully complies with all laws and regulations and with APRIL's/RAPP's strict policies, to ensure that such violations do not reoccur," he said.

Source: http://www.thejakartapost.com/news/2015/12/23/report-finds-svlk-fails-stop-illegal-logging.html

Indonesia takes unprecedented move to punish firms over deadly forest

Agence France Presse - December 22, 2015

Indonesia has announced it is punishing more than 20 companies for starting deadly forest fires that killed 19 people.

Three companies have been shut down permanently after having their licences revoked over their role in the blazes that choked vast expanses of South- East Asia with acrid haze and cost Indonesia $16 billion.

It is the first time the Government has revoked company licences over forest fires, an annual occurrence caused by slash-and-burn land clearance.

The Environment Ministry also froze the operations of 14 companies and said they face closure if they do not meet the Government's demands over fire prevention. Several other companies have been given a strong warning and will be put under close supervision.

"We have sanctioned 23 companies in total, ranging from administrative sanctions to license revocation, while 33 others are still in the process, they could have their licenses revoked too if they are found guilty," Environment Ministry official Kemal Amas said.

The Ministry has been investigating 276 companies in total since the fires broke out in September. "We need firmer law enforcement so that this catastrophe does not repeat itself, it's been going on for 18 years but nobody has learnt their lesson," Mr Amas said.

Mr Amas said the Ministry was also working hard to restore the forests and farmland destroyed in the fires.

Activists welcomed the Government's new commitment to punish firms. The Indonesian Forum for Environment said it was unheard of for the Government to revoke licences, as many companies previously avoided facing trial.

"The Minister has the courage to not only freeze the companies' operation but also chase the owners in a civil case, this is great and this must be guarded carefully," campaigner Kurniawan Sabar said.

"In the past some people were named suspects, but for them to actually lose their licenses, this is the first time."

More than half a million people suffered acute respiratory infections in Indonesia because of the haze, while many in neighbouring Singapore and Malaysia also fell ill.

Source: http://www.radioaustralia.net.au/international/2015-12-22/indonesia-takes-unprecedented-move-to-punish-firms-over-deadly-forest-fires/1529042

Health & education

National insurance program ends second year with larger deficit

Jakarta Post - December 30, 2015

Hans Nicholas Jong, Jakarta – Entering its third year, the national health insurance (JKN) continues to be plagued with financial woes. With ever an increasing number of participants, the government has been unable to bridge the widening financial deficit.

The program's operator, the Health Care and Social Security Agency (BPJS Kesehatan), said on Tuesday that this year the agency had continued to suffer from soaring hospital bills. This trend, furthermore, was predicted to continue into next year.

"In 2015, premium payments that we received were not enough to pay claims [from hospital bills]," BPJS Kesehatan Planning and Development director Tono Rustiono said. "In 2016, we have calculated and found that premium payments will not be enough to cover health costs."

The financial trouble that BPJS Kesehatan is facing could be seen from this year's claims ratio, which stood at 105 percent.

The claims ratio is the ratio between the bills charged by hospitals for health services and the premiums collected by the agency, both from tax funds, to finance the poor under the scheme, as well as those paid by employees and those who are individually registered for the insurance.

"Ideally, the claims ratio is 90 percent for the program to be sustainable. These past two years, the claims ratio has always been high, which is why there's always a financial gap," Tono said.

BPJS Kesehatan spokesman Irfan Humaidi said the agency received Rp 48.9 trillion (US$3.5 billion) in premiums and had to pay out Rp 51.4 trillion in total claims as of the end of November, resulting in a deficit of Rp 2.5 trillion. In 2014, the deficit stood at Rp 1.54 trillion, with Rp 42.6 trillion paid out in claims and Rp 41.06 trillion received in premium payments.

BPJS Kesehatan predicted Rp 53.37 trillion in premium payments and Rp 57.19 trillion in claims by the end of 2015, resulting in a Rp 3.82 trillion deficit.

"But that's just the head-to-head figure between the claims and the premium payments. There are still other sources of income besides premiums, such as cash injections from the central government. Therefore, in terms of cash flow, we can still pay our hospital bills," he told The Jakarta Post on Tuesday.

For instance, the government injected Rp 5 trillion to help the agency pay the bills this year, with Rp 3.5 trillion already having been disbursed. "The other Rp 1.5 trillion has not been disbursed. Maybe at the end of this year the fund could be disbursed," Irfan said.

In terms of assets, BPJS Kesehatan has accumulated Rp 4.8 trillion in negative assets since JKN started in 2014. "Last year, the negative assets stood at Rp 3.3 trillion. This year it is Rp 1.5 trillion. Cumulatively, it is Rp 4.8 trillion. But the final figure [for this year] has not been calculated," said Irfan.

Looking ahead, Tono predicted that the financial hemorrhaging would continue with next year's claims ratio predicted to stand at 106 percent.

Tono argued that the government's decision to raise the premiums for low- income patients, known as contribution assistance recipients (PBI), starting early next year, would not be enough to stop the bleeding.

Health Minister Nila F. Moeloek said the presidential regulation dictating the raise, from Rp 19,225 to Rp 23,000, would take effect in early 2016.

"We hope that the raise will lessen the gap. It's still not enough, however, because we are hoping for a raise in premiums for PBI to Rp 36,000, but the government could only afford to raise to Rp 23,000," Tono said. "Furthermore, we are proposing to increase premiums for non-PBI participants."

Non-PBI participants comprise wage-earning workers and their family members and unemployed workers and their family members who have paid their own premiums. These premiums range from Rp 25,500 per month for third-class healthcare facilities, Rp 42,500 per month for second-class facilities and Rp 59,500 for first-class facilities.

BPJS Kesehatan is proposing an increase in premiums to Rp 30,000, Rp 51,000 and Rp 80,000 for each class, respectively. "But it's not a done deal yet because we still have to wait for the presidential regulation," Tono said.

The proposed increase in premiums is designed to accommodate the soaring number of participants in the program, expected to reach 188.7 million by the end of 2016, compared to the more than 155 million presently in the program and the 133.24 million participants who registered for the scheme when JKN first started.

Tono promised that an increase in premiums would correspond to an increase in the quality of the program.

"We are improving all aspects of our service, starting from the way people register for the program, pay for their premiums and receive health services. Now people can go to an ATM, a post office and even an Alfamart or Indomaret to pay for premiums," he said.

Source: http://www.thejakartapost.com/news/2015/12/30/national-insurance-program-ends-second-year-with-larger-deficit.html

Graft & corruption

Supreme Courts grants lighter sentence to Angelina Sondakh

Jakarta Post - December 30, 2015

Callistasia Anggun Wijaya, Jakarta – The Supreme Court has reduced the sentence for disgraced Democratic Party lawmaker Angelina Sondakh and the amount of restitution from the harsher sentence she was given two years ago, a court spokesman said on Wednesday.

Supreme Court spokesman Suhadi confirmed that Angelina's sentence had been reduced to 10 years from the previous 12 years in prison in a judicial review.

The court also drastically reduced the amount of restitution to the state that Angelina was ordered to pay from Rp 12.5 billion ($905,797) to Rp 2.5 billion, as well from $2.35 million to $1.2 million.

Suhadi explained that a judicial review of a case could be filed for three reasons, namely new findings, discrepancies between decisions at each court level and judges' negligence.

However, he refused to give further details, saying the complete verdict would soon be published on the Supreme Court's official website.

Supreme Court chief justice Hatta Ali claimed that the matter had been considered thoroughly by the judges.

"I have not read the respective judges' considerations. However, it is impossible for judges to reduce a sentence without legal basis. I cannot comment further on this decision as it would violate our code of ethics," he told journalists at the Supreme Court office.

Former beauty queen Angelina was sentenced to four-and-a-half years in prison in 2012 after she was found guilty in corruption cases at the Education Ministry and Youth and Sport Ministry.

In November 2013, the Supreme Court increased her sentence to 12 years in prison and ordered her to pay Rp 12.5 billion and Rp 2.35 million in restitution following an appeal filed by the Corruption Eradication Commission (KPK). (rin)

Source: http://www.thejakartapost.com/news/2015/12/30/supreme-courts-grants-lighter-sentence-angelina-sondakh.html

KPK aims to boost Indonesia's corruption perception index

Jakarta Post - December 29, 2015

Erika Anindita, Jakarta – The Corruption Eradication Commission (KPK) will strive to boost Indonesia's corruption perception index (CPI) level, which has indicated stagnant progress in corruption eradication efforts in the country, the body's commissioner has said.

KPK chairman Agus Rahardjo said on Tuesday that one of the main targets of the new KPK leadership was to boost Indonesia's CPI level in the near future.

"As we're already aware, our current CPI level is 34, while Malaysia stands at 50. That's what we want to chase, so hopefully we can achieve a higher CPI level in the near future," Agus said during the soft launch of the new KPK headquarters on Tuesday morning.

Citing data, he said Indonesia achieved 34 in the latest CPI survey, showing stagnant progress in corruption eradication after it scored 32 in a 2013 survey. Indonesia had a 32 CPI level in 2012. Agus did not elaborate on steps the KPK would take to achieve its CPI target.

In 2014, Berlin-based Transparency International (TI) listed Indonesia in 107th place out of 175 countries and territories surveyed, showing poor transparency in its governance system. Denmark, with a score of 92, topped TI's 2014 list.

At the inauguration of the new KPK building, President Joko "Jokowi" Widodo stressed that he had always supported the commission's antigraft efforts.

"Like all Indonesian people, I put high expectations on the KPK for the creation of a clean government and an Indonesia that is free from corruption," said the President.

He said all Indonesian people had a common interest of fighting against corruption. "This is for the sake of all Indonesian people. Indonesia can become a great nation, if we are free from corruption," said Jokowi. He added that in recent years, the KPK had managed to win the public's trust.

"KPK leaders and staff must continue to maintain and increase the public trust they have won by continuing to work professionally, intensively and sustainably so the body can help to maintain the honor of the country," said Jokowi.

"The KPK must be guarded as an independent institution, which is free from any political influences," he added.

Jokowi further said that the KPK's independence must be advanced through professional, credible, transparent and accountable legal measures. Such an attitude would become an asset for the KPK in facing challenges in the future, he added. (ebf)

Source: http://www.thejakartapost.com/news/2015/12/29/KPK-aims-boost-indonesias-corruption-perception-index.html

Jokowi, Yudhoyono and Habibie pin their hopes on KPK

Jakarta Post - December 29, 2015

Jakarta – President Joko "Jokowi" Widodo and two of the country's former presidents – Susilo Bambang Yudhoyono and BJ Habibie – attended the opening ceremony of a new Corruption Eradication Commission (KPK) building on Tuesday.

Each expressed high hopes for the newly elected anticorruption body leaders and encouraged them to make a serious effort in the fight against corruption.

Seen to engage in friendly conversation, the three presidents, alongside former vice president Hamzah Haz, were among the slew of VIP guests whom had been in attendance at the opening ceremony of the 16-storey building on Jl. Kuningan Persada, Jakarta.

Their presence was said to be a signal of their hopes and support for the new KPK leaders, whose credibility has been questioned by many anticorruption activists.

Yudhoyono encouraged the current government to support the KPK, expressing his hope that the KPK would remain the backbone of the country's effort to fight corruption. He said that the public's skepticism of the new KPK leadership should be answered with professional work.

"We have to fully support the KPK. We hope that it will develop synergy with the police and the Attorney General's Office," said Yudhoyono, the country's sixth president and the first president to be directly elected by the Indonesian people.

"I hope that the KPK will work professionally. [KPK] should avoid working in a manner that confirms any concerns voiced by the people. For example, it shouldn't engage in the selective prosecution of cases. I fully support the KPK," said Yudhoyono, who is chairman of the Democratic Party in Jakarta.

President Jokowi told KPK to maintain its independence and emphasized that it should remain free from political influence when carrying out its work. "We have encouraged KPK to be independent, professional, credible, transparent and accountable," he said in his speech.

According to Jokowi, the independence of KPK will be its strength. Like Yudhoyono, Jokowi also told KPK to cooperate closely with both the police and the prosecutors' office, emphasizing the need for law enforcement institutions to support each other in their respective jobs.

"We only have one objective: to fight corruption effectively. I hope that the KPK leaders can work in the new building with a new spirit," Jokowi added.

Other guests attending the ceremony included two former KPK chairmen Taufiequrachman Ruki and Abraham Samad, National Police chief Gen. Badrodin Haiti, Attorney General M. Prasetyo, State Secretary Pratikno, Foreign Minister Retno Marsudi and Forestry and Environment Minister Siti Nurbaya.

The newly inaugurated KPK commissioners are Agus Rahardjo, Basaria Panjaitan, Alexander Marwata, Laode Muhamad Syarif and Saut Situmorang. (bbn)

Source: http://www.thejakartapost.com/news/2015/12/29/jokowi-yudhoyono-and-habibie-pin-their-hopes-KPK.html

Over 200 suspicious transactions go uninvestigated in 2015

Jakarta Post - December 28, 2015

Jakarta – The Financial Transaction Reports and Analysis Centre (PPATK) has said that the majority of suspicious transactions this year were not followed up by law enforcement institutions, as they claimed that they could not find sufficient evidence to support investigations.

PPATK head Muhammad Yusuf said on Monday that his institution had reported 289 transactions, which were possibly incidents of money laundering, to law enforcement institutions such as the Corruption Eradication Commission (KPK), the National Police, the Attorney General's Office, the Directorate General of Tax, the National Narcotics Agency (BNN) and the Directorate General of Customs and Excise.

He said that only 81 reports had been investigated by those institutions. "I have sent [our findings] to the law enforcement institutions. They said that they faced difficulties finding evidence. I have not seen any progress [in their investigations]," he said as quoted by tempo.co, emphasizing that that 208 suspicious transactions had not been followed up on.

According to Muhammad, PPATK has produced 4,041 analyses since 2003, but only 845 of those were being kept in PPATK databases because not all of the analyses indicated money laundering practices.

"[However], the data stored in the database will help PPATK to carry out further analyses," Muhammad added.

PPATK's high-profile reports include those relating to a number of police generals' bank accounts such as Corm. Gen. Budi Gunawan's Rp 54 billion (US$3.95 million) account. The KPK had previously named him a graft suspect, but he won a pretrial hearing to annul his suspect status. (bbn)

Source: http://www.thejakartapost.com/news/2015/12/28/over-200-suspicious-transactions-go-uninvestigated-2015.html

The year the KPK almost met its end

Jakarta Post - December 28, 2015

Haeril Halim, Jakarta – After years dodging bullets from those who wanted to see it fall, the Corruption Eradication Commission (KPK) has finally been brought to its knees.

The year began with an open rift between the KPK and the National Police, triggered when the antigraft body named then chief candidate Comr. Gen. Budi Gunawan as a bribery suspect.

The KPK accusation angered the police, who believed the move to be yet another insult, following on from the KPK's prosecution of high-ranking police generals, including Insp. Gen. Djoko Susilo, former chief of the National Traffic Police Corps, for corruption and money laundering.

The KPK accusation also irked the Indonesian Democratic Party of Struggle (PDI-P) as Budi was former adjutant of party matron Megawati Soekarnoputri while she served as the country's president.

Consequently, in what many saw as revenge for Budi's prosecution, the police pursued criminal charges against then KPK commissioners, chairman Abraham Samad and his deputies Bambang Widjojanto, Adnan Pandu Praja and Zulkarnaen – as well as several investigators.

To end the open battle between the two institutions, President Joko "Jokowi" Widodo dropped Budi's nomination. He then appointed former KPK chairman and retired police general Taufiequrachman Ruki and two other new deputies to replace Abraham and Bambang.

In March, just days after his appointment, Ruki transferred Budi's case to the Attorney General's Office (AGO), which later handed the investigation over to the National Police to be dropped in the hope that harmony would be re-established between the KPK and the police.

As a result of the transfer, the National Police dropped all investigations against Adnan and Zulkarnaen as well as those against the KPK investigators that had handled the case against Budi. But they moved forward with the cases related to Abraham, Bambang and KPK senior investigator Novel Baswedan, who had earlier been charged in an assault case in Bengkulu.

Following on from this, during his 10 months leading the commission, Ruki further engaged in a series of controversial moves, playing hard stick to officers in the antigraft body while mending ties with the police institution.

He issued sanctions, ranging from reprimands to one-month suspensions, to 28 KPK officials who had criticized his decision to transfer Budi's case and had expressed their disappointment with regard to the decision via the satirical move of sending a food package to the KPK headquarters in Jakarta.

Then Ruki installed three active police members to occupy three important posts at the KPK between September and October. Ruki also supported the voices of KPK critics, including lawmakers seeking to limit the commission's authority through a revision of the KPK Law.

Under Ruki's leadership, a swift prosecution style cost the KPK its tradition of seeking harsher punishments for graft defendants and in several cases, despite the fact that charges allowed the KPK to seek maximum punishments for the sake of deterrence, prosecutors appeared lenient.

Between March and December, Ruki managed to finish and send to trial 33 of the total 36 cases left behind by Abraham's leadership.

In a bribery case, KPK prosecutors demanded a mere two-year prison sentence for former NasDem secretary-general Patrice Rio Capella despite the fact that the antigraft law allowed the KPK to seek a maximum of five years behind bars for the former House Commission III member. The sentence demand was the lowest in the KPK's history.

As the Jakarta Corruption Court could not hand down a tougher sentence than that demanded by KPK prosecutors, the panel of judges at the court sentenced Rio to one and half years.

The case had earlier implicated Attorney General M. Prasetyo, the AGO's director of investigations Maruli Hutagalung and the owner of the Media group that runs MetroTV and Media Indonesia, NasDem party chairman Surya Paloh. To date, the KPK has failed to summons Prasetyo and Maruli.

Despite a wealth of criticism, Ruki did receive applause from antigraft campaigners for conducting five separate sting operations within six months between April and November. However, he was also strongly criticized for releasing without charge those police officers who had been arrested during the course of investigations in spite of allegations that they had acted as middlemen in bribery cases.

The antigraft body let Brig. Agung Krisdianto off the hook in April after he had been arrested for delivering bribe money from a businessman to the ruling PDI-P politician Adriansyah in April. The KPK also released two police members who had been arrested along with House lawmaker Dewi Yasin Limpo in a sting operation in October.

Under Abraham's tenure, all middlemen arrested in sting operations were sent to court to undergo a hearing, found guilty and convicted in their respective cases.

In mid-December, House Commission III elected five new KPK leaders for the 2015-2019 period, each promising stronger coordination and supervision with the AGO and the National Police. Ahead lies a grim outlook as the new leaders have yet to show any commitment to prosecuting corruption.

The newly installed KPK chairman has said that he would leave it to the lawmakers and the government should they want to revise the KPK Law and deputy chairman Saut Situmorang has said that prosecuting big cases like Bank Century is a waste of time and resources.

It would not be too far-fetched to presume that the commission may soon deteriorate into a prosecution coma. If the government is truly committed to the corruption fight, this is the time to prove it.

Source: http://www.thejakartapost.com/news/2015/12/28/the-year-KPK-almost-met-its-end.html

Kaligis happy with Johan's failure

Jakarta Post - December 26, 2015

Jakarta – Graft defendant Otto Cornelius (OC) Kaligis said that he was relieved to learn that outgoing Corruption Eradication Commission (KPK) commissioner Johan Budi and former commissioner Busyro Muqoddas failed to get reelected to their posts in the antigraft body.

"I have done my part in calling for the two not to be reelected. I am done now," Kaligis said as quoted by tribunnews.com on Friday at KPK headquarters.

Kaligis said that his prayers had been answered with the decision from the House of Representatives not to reelect them for the second term as KPK leaders.

Last week, House Commission III overseeing legal affairs voted for the new KPK lineup, comprising National Procurement Agency (LKPP) former manager Agus Raharjo, Jakarta Corruption Court ad hoc judge Alexander Marwata, National Police Senior Staff and Command School (Sespimti) lecturer Brig. Gen. Basaria Panjaitan, Makassar-based Hasanuddin University law professor Laode Muhammad Syarif and Saut Situmorang, an expert at the National Intelligence Agency (BIN).

Johan took part in a House confirmation hearing for the position but the House did not select him following his statement that he would not approve of any plan to amend the KPK law.

Busyro declined to show up at the confirmation hearing, arguing that he had been selected by the last session of the House in 2014.

Source: http://www.thejakartapost.com/news/2015/12/26/national-scene-kaligis-happy-with-johan-s-failure.html

Why, activists ask, is disgraced Setya still at the House?

Jakarta Globe - December 23, 2015

Jakarta – Antigraft activists have slammed the Golkar Party for naming disgraced legislator Setya Novanto the head of its powerful House caucus, saying it reflects the bloc's lack of commitment to fighting corruption.

Setya resigned as the speaker of the House of Representatives last week, just as a parliamentary tribunal was about to declare guilty of ethical violations for his role in attempting to shake down mining giant Freeport Indonesia for 20 percent of shares, worth an estimated $4 billion.

Following Setya's resignation, Golkar opted to nominate its House caucus chairman Ade Komaruddin as the new speaker, and gave Ade's seat to Setya, putting him in charge of the second-biggest party in the House – prompting activists to question the party's failure to punish him commensurate with the scale of his ethical violation.

"The inquiry launched by the House Ethics Council should have been enough for Golkar to withdraw Setya from the House," Donal Fariz, a researcher with Indonesia Corruption Watch, said at a discussionin Jakarta on Tuesday.

"Everything he did, all the meetings and requests for shares, were made public in the tribunal. Golkar should not have turned a blind eye to Setya's [misconduct]."

Two strikes

Donal noted that Setya had earlier been admonished by the ethics council for appearing at a campaign rally for US presidential hopeful Donald Trump in New York in September. With back-to-back tribunals, the activist argued, the decision to retain Setya at the House would only set a bad example for other legislators and allow Setya to carry on with business as usual.

"To preserve the honor and dignity of the House [...] we urge Golkar to withdraw its nomination of Setya as the caucus chairman, [...] dismiss Setya as a House member and appoint a replacement with a better track record and integrity," Donal said.

"Golkar should have sanctioned Setya for what he did and not given him a strategic post. A party should not protect those mired in ethics scandals."

Ray Rangkuti, the executive director of the voter advocacy group Indonesian Civil Society Circle (Lima), blamed the House Ethics Council for concluding its tribunal in response to Setya's resignation, rather than following through and delivering its guilty verdict.

"The council should have continued [the hearing] and issued the verdict on Setya's ethical violations so that there would be no more question about whether he was guilty or not," Ray told the same discussion.

Setya's decision to resign came after 15 out of 17 members of the council had presented their arguments, all saying he was guilty of an ethical violation.

"If a guilty verdict was issued, there would be no more excuse for him to become the Golkar caucus chairman," Ray said. "The council should have continued with its tribunal and finished the job."

Source: http://jakartaglobe.beritasatu.com/news/activists-ask-disgraced-setya-still-house/

KPK names more suspects in Hambalang case

Jakarta Post - December 22, 2015

Jakarta – The Corruption Eradication Commission (KPK) has named Andi Zulkarnaen Mallarangeng a suspect in the high-profile graft case centering on the construction of the Hambalang sports complex.

KPK spokeswoman Yuyuk Andriyati said on Monday that Andi Zulkarnaen, also known as Choel, had been charged with abuse of authority for personal or corporate gain in the infrastructure procurement for the sport complex in 2010-2012.

"The antigraft body decided to name him a suspect after finding two strong pieces of evidence. Next, we will summon several related witnesses," Yuyuk said, adding that the KPK was still calculating the amount of the state losses incurred.

In 2014, Choel's brother Andi Mallarangeng, a former sports and youth minister, was sentenced to four years in prison and a fine of Rp 200 million (US$14,500) for involvement in the same case, making him the first active minister to be charged with graft.

Under Andi's tenure, the project was transformed from a modest single-year project worth Rp 125 billion into a multiyear project worth Rp 1.17 trillion.

The panel of judges at the Jakarta Corruption Court found Andi guilty of abusing his authority to enrich himself in the Hambalang graft case and accepting a $550,000 kickback for the project through Choel.

Choel previously admitted receiving Rp 2 billion from Herman Prananto, president director of PT Global Daya Manunggal, a contractor company handling the Hambalang project.

Source: http://www.thejakartapost.com/news/2015/12/22/national-scene-KPK-names-more-suspects-hambalang-case.html

Terrorism & religious extremism

Australian donors sent $500,000 to Indonesia to fund terrorism

ABC Radio Australia - December 30, 2015

Adam Harvey, Indonesia – A terror financing investigation has uncovered about $500,000 in Australian cash sent to Indonesia to arm and train extremists and support their families.

A joint investigation between Australia and Indonesia found the cash was raised and transferred by an Australian man identified only by the letter L. The money was collected from donors in Australia – some of whom may not have been aware their money was to be used to fund terrorism.

The details were confirmed by Agus Santoso, the deputy chairman of Indonesia's financial tracking watchdog, the Financial Transactions and Analysis Centre (PPATK).

"The one in Australia is a local Australian, not an Indonesian who is living in Australia and sending money to Indonesia," he said.

"The money was used for: one, to recruit people; secondly to fund training; thirdly to buy weapons, and the fourth is to give livelihood for the terrorists' family because the money goes to support the families of the terrorists who died."

Around 200 Indonesians are believed to have gone to Syria to fight for the Islamic State militant group, with at least 60 of them killed.

PPATK chairman Muhammad Yusuf said some of the Australians who donated may not have realised their cash was going to fund extremism. "It could be when it happened, from the perspective of the donor; it was meant for charity not for terrorism," he said.

Indonesia says the Australian cash may have been used to support local terror networks, such as the group of alleged extremists arrested a week ago.

So far, 11 people have been arrested across Java and accused of plotting attacks on the nation's minority Shiite community, Christians and possibly even westerners. They were arrested by special forces from Indonesia's anti-terror body Densus 88.

Mr Santoso said information from Australia's counter-terrorism financing watchdog AusTrac was crucial to uncovering these Indonesian networks.

"We really appreciate the cooperation with AusTrac and the AFP. It revealed the terrorism network between Australia and Indonesia, the network has been revealed, and we have handed over the case to Densus 88 to follow up," he said.

Indonesia is still on a state of heightened terror alert, with particularly tight security for the nation's New Year celebrations.

Source: http://www.radioaustralia.net.au/international/2015-12-30/australian-donors-sent-500000-to-indonesia-to-fund-terrorism/1530804

Between threat of radicalized IS supporters and homegrown terrorists

Jakarta Post - December 26, 2015

Marguerite Afra Sapiie, Jakarta – The influence of the Islamic State (IS) in Indonesia has become more apparent along with the rapid increase of radicalization within society since IS declared a caliphate in June 2014, the year that marked the rise of one of the most deadliest terror groups ever to exist.

By December 2015, about 800 Indonesians had been reported to have departed for Syria and Iraq, with 169 people being caught on the Turkey-Syria border and deported by the Turkish government, before these potential foreign fighters had the chance to join IS, according to the National Counterterrorism Agency (BNPT).

However, the exact number of radicalized Indonesians returning from the conflict zones before Joko "Jokowi" Widodo took over the presidency on Oct. 20, 2014, is unknown. The former administration failed to keep track of Indonesians departing to join IS after the group announced that it would restore Allah's rule on Earth through sharia.

Over the weekend, the National Police's Densus 88 counterterrorism squad seized bomb-making equipment and arrested nine people across Java who were suspected of being among the more than 1,000 local IS supporters allegedly planning to attack government officials, including Jokowi and minority Shiite Muslims.

One of the homegrown terrorist groups, the Santoso-led East Indonesia Mujahidin based in Poso, Central Sulawesi, still poses a major threat to the government as the group was responsible for the killing of several police officers and local farmers in 2015 and has pledge allegiance to IS.

With national security at stake, counterterrorism forces are stepping up measures to protect the nation against possible militant attacks that have the potential to plunge the nation into violence.

Homegrown terrorist groups versus radicalized returnees

The history of homegrown radical Islamic groups dates back to the late 1940s, when Kartosuwiryo led the Islamic State of Indonesia (NII) movement, a radical group that led to the formation of the al-Qaeda affiliated Jamaah Islamiyah (JI) in 1993, a group responsible for the deadly 2002 Bali bombings.

Since JI's charismatic leader Abu Bakar Ba'asyir was arrested in August 2010, experts believe that younger JI members separated from the group when senior members decided to lie low, as they believed that Indonesia was no longer a land for jihad.

This led to the rise of the East Indonesia Mujahidin – a terrorist group that allegedly created terror in Poso – led by the former JI members who are presently being hunted by 1,500 security personnel.

"From the perspective of human safety, the most dangerous are homegrown terrorist groups," terrorist expert Rakyan Adibrata told thejakartapost.com.

With the threat of radicalized Indonesian returnees increasing over the past few months, Rakyan said it was actually homegrown terrorist groups that had initially spread radical ideology among members, leading them to depart as foreign terrorist fighters for IS only to return to be a threat to the nation.

Mujahidin shares the same vision as IS to establish an Islamic caliphate. However, Rakyan said, there was still romanticism among the group's members about establishing their own caliphate in Poso as it was the location where they had previously been trained by al-Qaeda and the place where Santoso ran an extremist training camp.

Meanwhile, a terrorist expert from Yayasan Prasasti Perdamaian (YPP), Taufik Andrie, said radicalized Indonesian returnees posed a bigger threat to the nation as they could contribute to capacity building, networking and persuading homegrown terrorist groups to support IS.

Even though many homegrown terrorist groups such as Mujahidin promote dangerous ideology that includes use of violence to achieve their means, Taufik said that unlike IS, which hated all Western-influenced systems, these groups' bigger enemies were mainly police and law enforcers.

"In Poso, like the Santoso-led group, they are more contextual as the group consists of people who have been involved in conflicts and suffered from injustice and violence," Taufik said. Similarly, a terrorist expert and former NII member, Al-Chaidar, said that besides fighting in its own way to establish a caliphate, Mujahidin was formed to take revenge for predecessor who were attacked by police and law enforcers during a Muslim-Christian conflict in Poso that claimed the lives of at least 1,000 people from 1998 to 2002.

"Mujahidin members still hold grudge toward Christians. They have not departed for Syria, but they are IS supports who are spread across Indonesia," Al-Chaidar said.

Home to various radical Islamic groups, Indonesia has experienced terrorist attacks targeting public places for more than a decade. Since the deadly Bali attack, the police have managed to counter and destroy homegrown militant cells. However, the rise of IS has brought new challenges for them to improve their counterterrorism strategy once more.

Re-thinking new approaches to counter radicalization

During Jokowi's presidency, the BNPT has adopted a softer de-radicalization approach to curb terrorism by emphasizing dialogue with captured or potential terrorists to reverse their radical thinking as it is believed to be more effective in countering the spread of radical ideology.

However in Rakyan's view, the government should try a new approach by adopting psychological and medical perspectives to better assess the thinking of radicalized Indonesian returnees, as they share similarities with soldiers newly returned from conflict zones and suffering post-traumatic stress disorder (PTSD).

"While soldiers may kill themselves or shoot a friend, a jihadist who suffers from PTSD may think his home country is enemy territory and everything before his eyes should be killed," Rakyan said.

Similarly, Taufik said that both radicalized Indonesian returnees who had been deported back home and IS supports who could not depart to join IS might experience frustration as they did not get the chance to wage jihad in Syria, resulting in the potential spreading of radical ideology or activities. "They become a threat because they can move freely among citizens," Taufik said.

A similar approach should be implemented by the BNPT to counter the intensified dissemination of terrorist groups' propaganda through the internet and social media, Rakyan said, as the current counter-narrative measures taken by the BNPT through its online platform called "Peaceful Year in Cyberspace" had been deemed weak and ineffective in preventing radicalization.

According to Rakyan, counter-narrative measures against the IS campaign in Indonesia were instead actively taken by other radical groups that are against forming an IS caliphate, such as Jabhat al-Nusra and senior members of JI who were against IS but still wanted to establish a caliphate in Indonesia.

"In the end, this will bring much the same result. Either members of the public who empathize with IS will not believe the group anymore or they will join Jabhat al-Nusra or other non-IS rebels," said Rakyan.

Indonesia should engage moderate groups to actively take counter-narrative measures in their respective areas, Rakyan said, while at the same time cooperate with internet service providers to tackle radicalization through the internet.

Australia adopted this method, Rakyan said, as the government engaged all moderate groups in the country to create counter-narrative measures in cooperation with giant search engine Google and it had been very effective in curbing the spread of radical ideology.

"When people search keywords related to IS and other radical groups, page 1 and 2 in Google will display counter-narrative measures instead of information on those groups," said Rakyan.

Institute for Policy Analysis of Conflict (IPAC) director Sidney Jones also told thejakartapost.com recently that various radical media outlets disseminated IS propaganda by re-making videos or audio statements in Indonesian and spreading the links through the internet every day, making effective use of Indonesia as the fourth leading Facebook user in the world with over 84 percent of users active Twitter users by 2014.

BNPT deputy for international relations Insp. Gen. Petrus Reinhard Golose said he had addressed this issue, adding that the counter-terrorism body looked forward to cooperating with other countries to closely monitor websites in order to curb the spread of radicalism through the internet.

Potential radical group attacks, new method adopted

With IS now having thousands of supporters across Indonesia as well as other radical groups such as Mujahidin, experts have warned that the threat of terrorist attacks in December 2015 could be bigger and different from previous years.

Taufik said that while previously churches and Christian groups were the main targets of radical Islamic groups, threats of terrorist attacks this year were posed by more diverse groups that had different views of perceived enemies, as there were those who intended to attack government officials and minority Shiite Muslims also.

Counterterrorism forces succeeded in arresting nine suspected Muslim militants who were allegedly planning bomb attacks in towns across Java last weekend, with four of them suspected of being JI members.

However, as the National Police spokesperson said the force had captured "only subordinates" of a network of IS supporters, Taufik said supporters who escaped the raids could be more dangerous as they would strive to finish what their accomplices started.

"Right now the threats are IS supporters and those affiliated with Aman Abdurahman [vocal Indonesian promoter of IS]," said Taufik.

Meanwhile, Rakyan warned that IS might launch sporadic attacks instead of centralized bombings, with possible active shooters assigned to create terror in public places or at religious sites.

Citing the Paris attack, the deadliest attack on French soil since World War II that IS claimed responsibility for, Rakyan said that simultaneous coordinated terrorist attacks could become a rather effective method to distract government and security officials.

"Imagine five shooters at five malls in Jakarta and mass shootings happening simultaneously. This is a bigger danger and would create mass fear equal to that caused by the Paris attack and Bali bombings," said Rakyan.

Even though the trade-off between security and human rights is often debated, Rakyan said that in order to strengthen early detection capabilities, people entering malls, airports and other public places should be thoroughly searched.

Meanwhile in Poso, Al-Chaidar said the East Indonesia Mujahidin members were likely to launch terrorist attacks during Christmas, even though the scale might not be large as they would try to avoid detection as security officials hunt for their leader, Santoso.

However, Al-Chaidar said that Mujahidin's threat to attack National Police headquarters and the State Palace was a bluff, as it was a method it often used to divert attention.

"In the past, Mujahidin once threatened to attack Makassar, but it ended up attacking the Poso police," said Al-Chaidar.

In order to ensure safe Christmas and New Year celebrations, the National Police have deployed 150,000 officers to safe-guard churches and other public places around the country, as well as strengthen security and surveillance in a number of areas to prevent terrorist attacks.

"The government's preparations [to secure Christmas and New Year] are sufficient, but still we need to encourage members of the public to report anything suspicious to security officials," Rakyan added. (dan)

Source: http://www.thejakartapost.com/news/2015/12/25/news-analysis-between-threat-radicalized-is-supporters-and-homegrown-terrorists.html

Hard-line & vigilante groups

Jakarta police slammed for standing idle amid hard-liner raid

Jakarta Globe - December 30, 2015

Jakarta – Central Jakarta Police chief Sr. Comr. Hendro Pandowo has received widespread criticism on social media for allowing hard-line Muslim groups to harass participants of an award show on Monday evening.

Local media reported that hundreds of members of the Islamic Defenders Front (FPI), the Islamic Defenders' Troops (LPI) and the Islamic People's Forum (FUI) searched all cars entering the Taman Ismail Marzuki cultural center in search of Dedi Mulyadi, the district head of Purwakarta, West Java, who was supposed to receive an award for his achievements in promoting Sundanese tradition and culture.

Organizers said Dedi decided not to attend the award ceremony because of security concerns.

Tensions between hard-line Muslim groups and the Sundanese community who hail mostly from West Java have been fraught since November, when FPI chairman Rizieq Shihab used a sermon in Purwakarta to slam Dedi's campaign to encourage residents to use the Sundanese greeting "Sampurasun."

Members of the Purwakarta People's Alliance, or AMP, had threatened to block the FPI from the district, prompting hard-line Muslim groups in Jakarta to launch a similar move against Dedi.

The hard-liners' actions quickly kicked up a frenzy on social media with many pointing to the fact that the hundreds of police officers deployed to guard the venue just stood and watched.

Hendro of the Central Jakarta Police told CNN Indonesia on Tuesday that his office had deployed 200 officers "to prevent [any] undesired situation."

Hendro defended his stance, of permitting the hard-liners to conduct checks on the award show participants, saying that the hard-liners "were only checking [the cars for signs of Dedi]. Their demand was simply for Dedi to not attend the ceremony and I have checked [the venue] and confirmed that he wasn't."

The argument only inflamed the social media outrage against the police chief.

Hard-liners "are not the police, not security guards, just regular people. Who do they think they are? So many police officers [were] present and they just stood and watched. So much for 'protect and serve,'" one Twitter user wrote.

Another tweeted "The police chief has the power to deploy 200 officers but not the guts to stop a group of people violating other people's privacy without authority nor fear of repercussions in the capital of the state no less."

A petition on Change.org calling for Hendro's ouster went from 4,680 signatures at 10 a.m. on Wednesday to 6,105 signatures just 30 minutes later.

"Myself and many others condemn the actions of the FPI. They do not represent Jakarta or any religion. They are just a small group bent on creating violence and fear. My question: where are the police?" the petition's initiator, Damar Juniarto, wrote on the website.

"There were hundreds of police officers at the venue but instead they asked organizers to stop the event and refused to guarantee [Dedi's] safety. Then why were those hundreds of officers there?"

Source: http://jakartaglobe.beritasatu.com/news/jakarta-police-slammed-standing-idle-amid-hard-liner-raid/

Freedom of religion & worship

The hopes of two churches and an empty seat for Jokowi

Jakarta Post - December 27, 2015

Erika Anindita, Jakarta – As the members of the Gereja Kristen Indonesia (GKI) Taman Yasmin church in Bogor and the Batak Protestant Church (HKBP) Filadelfia from Bekasi were assembled for a joint Christmas service on Friday afternoon, a special red chair remained vacant.

For the two West Java-based chuches, it was the fourth open-air Christmas service since 2012 held across from Merdeka Palace, where the President lives.

What sets this year's service apart from the previous ones is the special red plastic chair, prepared for President Joko "Jokowi" Widodo. The chair was placed on the front-ride side of the sitting area, near the choir and musicians' tent.

GKI Yasmin spokesman Bona Singgalingging said they had prepared the chair so that the President could join their Christmas service at the open venue. The congregations had also sent official invitations to Home Minister Tjahjo Kumolo and Religious Affairs Minister Lukman Hakim Saifuddin.

"On Dec. 4, we sent the official invitations to the President, Pak Tjahjo and Pak Lukman, hoping that they would come. But no one showed up, not even a representative," Bona told reporters, after the Christmas service ended on Friday afternoon.

The open-air services in Jakarta are also a form of protest amid unresolved administrative disputes that have been going for the last five years and that have seen the congregations locked out of their church buildings.

According to Bona, the Jokowi administration is more inclined to listen to their concerns than Susilo Bambang Yudhoyono's (SBY) administration was. "The progress now is that they're being more attentive. During SBY's tenure, they would directly go into defense mode."

Nevertheless, the government has so far failed to follow up with concrete action a Supreme Court ruling in support of GKI Yasmin's church building permit and a recommendation by the Ombudsman related to the cases of both GKI Yasmin and HKBP Filadelfia.

In 2010, the Supreme Court ruled that the GKI Yasmin congregation has the right to build a church in the area. However, Bogor Mayor Diani Budiarto refused to issue a permit for the building, and the church was sealed in 2010. Since then, GKI Yasmin has been holding its Sunday services outside.

The story of HKBP Filadelfia started in 2011 when the Bekasi municipal administration sealed off the church site after local residents had objected to its construction. Even though the Bandung State Administrative Court ruled in favor of the church's right to exist, the administration refused to reopen the site.

Bona recalled that the congregation has been holding 107 Sunday services, or once every two weeks since February 2012, across the Merdeka Palace. He went on saying that Bogor Mayor Bima Arya still insisted on relocating the GKI Yasmin church to another site in the city.

In August, during a meeting between GKI Yasmin representatives and Bogor the administration, which was moderated by the Indonesian Ombudsman, Bogor Mayor Bima Arya Sugiarto conveyed two messages.

First, GKI Yasmin's church would be closed and relocated to another place. Second, the relocation resulted from an agreement between the Bogor administration and GKI Pengadilan, out of which GKI Yasmin emerged.

GKI Pengadilan, the first Protestant church in Bogor, was built in the late 1960s. As the congregation grew, a need arose for new churches. A group of GKI Pengadilan members then bought a piece of land in 2006 to construct a new church.

Hoping on Jokowi

Under the blazing sun at 2 p.m., more than 200 members of GKI Yasmin and HKBP Filadelfia gathered for Friday's Christmas service. Many were using umbrellas and caps to protect themselves against sunstroke.

The sermon during that Christmas service was very contextual, as Pastor Benget Tambunan of GKI Ampera referred to the latest "Dad is asking for shares" case, allegedly involving former House of Representatives speaker Setya Novanto.

"We reject dad asking for shares, because he forgot that many children are unable to go to school. Because he forgot that there are mothers who must work, to find clean water in many area. We reject efforts to put ones personal interests first and accumulate wealth, because natural resources are for the nation," Pastor Benget said.

The sermon was followed by Christmas songs. Teenage members of HKBP Filadelfia sang "Jingle Bell Rocks" and "Feliz Navidad", a bit awkwardly by reading the lyrics from their phones and papers.

Julida, a woman in her mid-forties and member of HKBP Filadelfia, has joined the Sunday service across from Merdeka Palace four times. "I join the struggle here so that our church seals will be removed soon," said Julida, whis is from Tambun, Bekasi.

Bona said they were still hoping for the government to enforce the Supreme Court ruling. "The President, whoever he is, must remember that regional leaders are not kings of small kingdoms. Our eligible church is still sealed. We still put our hope in him [Jokowi]," Bona said.

Ending a solemn service, Pastor Benget said GKI Yasmin and HKBP Filadelfia had become the struggling symbol of the country's minority groups, in an effort to be treated as Indonesian citizens and with their citizen rights to be respected.

"Because of that [...] celebrate Christmas, share the joy, stand upright, you and I are citizens of this country. We deserve the freedom, we deserve a right to pray, and we deserve to be treated equally," he said.

Using a football analogy, Bona said that they needed a leader who would take the ball, dribble it and then score a goal.

"What's the goal? Having the Supreme Court ruling and Indonesian Ombudsman recommendation implemented. That is what we're waiting for and what the current leadership hasn't delivered on in this case of religious freedom," Bona added.

When the Christmas service ended at around 4 p.m., the area in front of the National Monument (Monas) complex became empty. Chairs were already being picked up, and the members left one by one.

They promised to hold another Sunday service on Jan. 3, 2016 across from Merdeka Palace even if it rains, and to continue to do so until they could pray inside their own churches. "If the rain falls, we'd stay. We won't run away from our struggle," another pastor said during this Christmas service. (ags)

Source: http://www.thejakartapost.com/news/2015/12/27/the-hopes-two-churches-and-empty-seat-jokowi.html

Indonesia observes peaceful Xmas despite blackouts, deadly incident

Jakarta Post - December 26, 2015

Syamsul Hadi M. Suhari, Apriadi Gunawan and Indra Harsaputra, Gorontalo/Medan/Surabaya – Christmas celebrations across the nation on Friday went off relatively smoothly despite a number of disruptions, including blackouts, rallies and a deadly electrical accident.

In Gorontalo, many Christians were forced to celebrate Christmas without power due to blackouts lasting for up to nine hours on Thursday and Friday in most parts of the province.

Gorontalo regency resident Grace Pricilia said the power outage had disturbed her family's preparation for the religious holiday. "We had to cook dishes and finish putting Christmas decorations up at our house in the dark," she told The Jakarta Post on Friday.

Maranatha Church leader Deysi Derdanella, of Limboto, Gorontalo regency, said her church nearly had to cancel Christmas services due to the blackout. "Fortunately, a church congregation member lent us a generator," she said.

The North Sumatra Police's headquarters also reported that Christmas celebrations in the province, in which one third of the 12 million residents are Christians, went smoothly and peacefully.

However, a policeman and a member of the Pramuka scout movement both of whom were manning the Christmas security post in Brandan, Langkat regency, North Sumatra died after being electrocuted on Thursday afternoon.

"Both victims were installing a TV antenna at the post when the incident occurred. The antenna accidentally touched a high-voltage power cable and they were electrocuted," North Sumatra Police's spokesperson Sr. Comr. Helfi Assegaf said.

In Surabaya, East Java, members of the Islam Defenders Front (FPI) held rallies in several locations in the city on Wednesday, urging companies not to force their Muslim employees to wear Santa Claus clothing during Christmas celebrations in the city.

"It's a peaceful rally. We are reminding them not to force their Muslim employees to wear Santa Claus costumes because it is not in accordance with Islamic teachings," said East Java FPI head Andry Ermawan.

Local authorities in several regions, including Surabaya and Padang, West Sumatra, earlier issued an appeal to employers not to force their Muslim employees to wear Christmas paraphernalia.

Christmas this year fell a day after the birthday of the Prophet Muhammad, with both religious celebrations declared national holidays.

Christmas celebrations were also reportedly peaceful in a number of regions, such as in Bandung, West Java; Makassar,South Sulawesi; Pekanbaru, Riau; and Kupang, East Nusa Tenggara.

In Kupang, around 200 Muslim youths affiliated with the East Nusa Tenggara (NTT) Anshor Youth Movement provided assistance to safeguard Christmas celebrations in the city, helping police personnel guard several churches.

In Central Java, 282 Christian inmates in various prisons also received sentence remissions on Friday.

In Bali, 91 inmates at Kerobokan Penitentiary were also sentence reductions, including 14 foreigners, among them Heather Lois Mack and Tommy Schaefer, the US teen couple who murdered Mack's mother.

Both Mack and Schaefer received one month remission. Mack, who is now taking care of her baby in the prison, was sentenced to 10 years, while Schaefer received 15 years.

[Djemi Amnifu in Kupang, Andi Hajramurni in Makassar, Arya Dipa in Bandung, Suherdjoko in Semarang and Ni Komang Erviani in Denpasar, Markus Makur in Manggarai and Syofiardi Bachyul Jb in Padang contributed to the article.]

Source: http://www.thejakartapost.com/news/2015/12/26/ri-observes-peaceful-xmas-despite-blackouts-deadly-incident.html

Congregations of sealed churches celebrate Christmas near State Palace

Jakarta Post - December 26, 2015

Jakarta – Unable to celebrate at their own premises, hundreds of members of two sealed church buildings in West Java have held their Christmas service in Jakarta for the fourth time.

Gathering on Friday across the State Palace, the congregations of Batak Protestant Churches (HKBP) Filadelfia in Bekasi and Indonesian Christian Church (GKI) Yasmin in Bogor had prepared an empty chair for President Joko "Jokowi" Widodo.

The red plastic chair, embellished with green decoration as if a Christmas tree, was placed in the center, with the congregation members sitting around it. White writing above it read "Indonesian President".

"The chair has been prepared in case the president is willing to join us to experience how we conduct our service," GKI Yasmin spokesman Bona Sigalingging told kompas.com on Friday.

He said the two churches had sent an invitation letter to Jokowi to witness their service. The congregations also sent the letter to Religious Affairs Minister Lukman Hakim Saefuddin and Home Affairs Minister Tjahjo Kumolo. None of the invited top officials showed up for the 2:30 p.m to 3:30 p.m. service.

"Maybe they are all busy," Bona said, expressing his hope for the congregations to be able to hold services at their own churches again following a court verdict backed by the Ombudsman.

"Hopefully by the end of 2015 or the beginning of 2016 the seals on GKI Yasmin and HKBP Filadelfia can be removed," he said.

Bona added that the door to the GKI Yasmin church building had been closed and barricaded since Friday morning, barring the congregation from holding their Christmas service there.

The Supreme Court had ruled in favor of GKI Yasmin and ordered the Bogor municipality to open the seal and allow members to pray inside their church. However, the Bogor municipality has so far failed to comply with the Supreme Court's ruling.

The Bogor administration sealed off the church in 2010 following protests from hardline Islamic groups, who claimed the church lacked a building permit. (rin)

Source: http://www.thejakartapost.com/news/2015/12/26/congregations-sealed-churches-celebrate-christmas-near-state-palace.html

Islamic law & morality

Minister calls for modest New Year's Eve celebrations

Jakarta Post - December 31, 2015

Jakarta – Religious Affairs Minister Lukman Hakim Saifuddin is calling on Indonesians to celebrate New Year's Eve in a modest way by avoiding lavish parties or any activities that violate religious values.

"In celebrating New Year's Eve, each person should have his or her acceptable standard," he said as quoted by kompas.com at the Religious Affairs Ministry in Jakarta on Wednesday.

Lukman said many Indonesians were still facing difficulties in fulfilling their basic needs, let alone having enough money to celebrate New Year's Eve. Therefore, he argued, it would be a better thing for people to show sensitivity by not celebrating New Year's Eve in luxury.

"It would be better if they could celebrate the changing calendar as modestly and properly as possible," said Lukman.

The United Development Party politician further explained that New Year's Eve should not only be celebrated with ceremonies. "Let's enter 2016 with modesty, with commitments that are more positive," said Lukman.

To ensure a safe and smooth New Year's Eve celebration, Administrative and Bureaucratic Reform Minister Yuddy Chrisnandi held a sudden and unannounced inspection of the Jakarta Police on Wednesday. He praised the Jakarta Police's work in preparing measures to secure New Year's Eve celebrations across the city.

"Ahead of the New Year's Eve that we will celebrate together, what has been conducted by the Jakarta Police should be followed by other regional policing outfits to ensure security for all members of society," said the minister as quoted by kompas.com at the headquarters of the Jakarta Police on Wednesday.

"The security precautions are aimed at minimizing both crimes and terrorism," he went on to say.

Jakarta Police chief Insp. Gen. Tito Karnavian said that he had not been informed of the minister's inspection. "It's a sudden inspection," he said.

During the inspection, Tito explained to Yuddy the measures that the police would take to secure New Year's Eve celebrations in Jakarta. Tito said the Jakarta Police had anticipated three types of security threats, namely terrorism, traffic problems and conventional crimes.

"Hopefully, terror threats will not affect us. To prevent traffic incidents, we have cooperated with many parties to ensure smooth traffic flow during New Year's Eve celebrations and to secure the arrival of Jakartans returning back to work from spending New Year's Eve in their hometowns," said Tito.

"To anticipate conventional crimes, we have carried out sweeping operations against preman [thugs]," he said. (ebf)

Source: http://www.thejakartapost.com/news/2015/12/31/minister-calls-modest-new-year-s-eve-celebrations.html

Village & rural life

Indonesia asks S. Arabia to develop remote villages

Jakarta Post - December 28, 2015

Jakarta – Villages, Disadvantaged Regions and Transmigration Minister Marwan Jafar has asked Saudi Arabia to aid development in Indonesia's remote villages, to help improve welfare in the regions.

Marwan said that President Joko "Jokowi" Widodo had made development of the poor and underdeveloped regions a priority for his administration.

"According to the Nawa Cita [Jokowi's nine priority programs] and the vision of the villages ministry, we are expected to focus on village development and community empowerment," he said to Saudi Arabia's Ambassador to Indonesia Mustafa Ibrahim al-Mubarak during the latter's visit to the ministry last week, as quoted by tribunnews.com.

Marwan said that there were 1,900 villages listed in the government's development priority plan.

Source: http://www.thejakartapost.com/news/2015/12/28/national-scene-ri-asks-s-arabia-develop-remote-villages.html

Government calls for prudent, transparent spending of village funds

Jakarta Post - December 28, 2015

Ganug Nugroho Adi and Ruslan Sangadji, Boyolali, Central Java/Palu – With the government set to increase the allocation of dana desa (village fund) in the upcoming year, President Joko "Jokowi" Widodo has called on local officials to use the budget in a prudent and transparent manner so as to help them avoid any future legal hassles.

Speaking in front of 3,000 subdistrict leaders and officials during a gathering on Saturday in Boyolali, Central Java, President Jokowi said that local leaders must follow government-sanctioned procedures on how to spend the budget in order to avoid being prosecuted for embezzlement.

"If all of you work in accordance with existing procedure, there should be no criminalization. I personally guarantee that prosecutors and police will not touch you. I will grant an award to those who show excellent performance [in making use of the funds]," he said.

During his speech, President Jokowi announced that his government had allocated Rp 47 trillion (US$3.4 billion) for dana desa from the state budget, double what had been disbursed for the same post this year. In 2017, he continued, the government would increase the allocation to between Rp 60 trillion and Rp 80 trillion.

Jokowi also reminded local officials to spend dana desa to speed up local development by prioritizing the use of local resources.

"If you need to spend the money outside your village, don't make it more than 10 percent. The more money circulating within a village, the more productive the village will be," he said.

In December 2013, all political factions in the House of Representatives unanimously passed the Village Law, a new regulation that, the government claimed, would improve the welfare of people living in the country's 73,000 subdistricts. Former president Susilo Bambang Yudhoyono signed the law in January 2014.

Under the new law, all subdistricts across the country share funds equal to 10 percent of the state budget earmarked for regional administration, in the hope of reducing inequality and poverty. Every subdistrict is to receive a certain amount based on several factors, including population size and poverty level.

The law stipulates that the annual fund is to be disbursed in three stages: 40 percent in the first stage, 40 percent in the second and the remaining 20 percent in the third.

Despite its strategic objectives, the village fund disbursement has sparked criticism, including questions with regard to the ability of local officials to manage the funds as well as to properly plan and execute a development project.

Earlier this month, the Poso regional administration in Central Sulawesi, for example, reported that 62 out of 142 subdistricts in the region had yet to submit the financial accountability report required to withdraw the final stage distribution of this year's dana desa.

"Subdistrict officials have thus far found it difficult to make a financial accountability report for every fund disbursement stage, resulting in late fund disbursement for the next stage," acting Poso Regent Sin Songo said.

This year, the government has allocated Rp 37 billion in dana desa for Poso, with every subdistrict in the regency receiving around Rp 250 million.

Meanwhile in Rembang, Central Java, the regional administration has requested that all subdistrict administrations within its jurisdiction detail plans for dana desa use in its respective annual budget (APBDes).

Head of the regency's Cemoro subdistrict, Jidan, said that such a strategy is an effective way to prevent budget misappropriation.

"In Rembang, our regent has instructed us to make a monthly report on how we have used dana desa. Copies of these reports are to be placed on the information board at the subdistrict's office so that the villagers know where the money is going," he said.

Source: http://www.thejakartapost.com/news/2015/12/28/govt-calls-prudent-transparent-spending-village-funds.html

Governance & administration

2015 sees highest-ever tax revenues

Jakarta Post - December 29, 2015

Business – While failing to meet the target set out in the state budget, the government in 2015 collected more taxes than ever before.

As of Dec. 25, the Tax Office recorded Rp 1 quadrillion (US$73 billion) in tax revenue, exceeding the full-year 2014 figure of Rp 982 trillion.

Nevertheless, 2015 tax collection will fall far short of the targeted Rp 1.294 quadrillion, a failure that prompted Tax Office head Sigit Priadi Pramudito to step down from his position on Dec. 1.

University of Indonesia taxation expert Darussalam applauded the government's achievement on tax revenue, saying that the results showed that the tax office had been trying hard to meet the target despite sluggish economic growth.

"This is the first time in Indonesian history to have tax revenue of Rp 1 quadrillion. The main drivers are tax administration reforms and tax facilities, such as the tax discount on asset revaluation," he told TheJakartaPost.com on Monday night.

According to Darussalam, President Joko "Jokowi" Widodo's administration had set an unrealistic target for tax collection.

"It's unrealistic, because the 2015 target of Rp 1.294 quadrillion was set more than 31 percent above the realized 2014 tax revenues, while average tax revenue growth in the past was only 12 to 15 percent," he said.

He added that the Tax Office performance should not be judged solely on achieving targets, but also on the services provided and on its success in encouraging taxpayers' compliance with regulations.

"So that the authorities and the taxpayers do not have to spend time and resources to solve tax disputes that could actually be settled through regulations providing greater clarity," he said.

2016 target

Darussalam called on the government to revise the 2016 tax revenue target to a more realistic level, after this year's ambitious target proved to be far from reality. In the 2016 state budget, the government has set itself a tax revenue target of Rp 1.36 quadrillion.

"The figure is not realistic, since it is up 25 percent from 2015's tax realization, considering, once again, that tax growth in the past was only 12 to 15 percent," he said.

However, to meet next year's target, Darussalam recommended transforming the Tax Office into a semi-autonomous revenue authority (SARA), an institution directly under the President's supervision, and at the same time providing more tax facilities.

Earlier, Finance Minister Bambang Brodjonegoro said he was optimistic that 2015 tax revenue would grow to Rp 1.1 quadrillion, or 85 percent of the target. State-owned banks have been instructed to keep open tax payment services for their clients until 9 p.m on Dec. 31.

He expected tax revenue to improve at the end of the year thanks to asset revaluation at state-owned enterprises, banks and developing companies. In addition, the government would closely watch its 50 biggest taxpayers from the oil and gas sector. (ami/ags)

Source: http://www.thejakartapost.com/news/2015/12/29/2015-sees-highest-ever-tax-revenues.html

Parliament & legislation

Puan, Tjahjo yet to resign from House

Jakarta Post - December 29, 2015

Jakarta – The General Elections Commission (KPU) has yet to receive official resignation letters from Home Minister Tjahjo Kumolo and Coordinating Human Development and Culture Minister Puan Maharani. The two technically remain in their posts as lawmakers at the House of Representatives.

KPU commissioner Ida Budhiarti only confirmed that there had been an official notice from the Indonesian Democratic Party of Struggle (PDI-P) to replace Pramono Anung, who has been appointed Cabinet Secretary, with another senior party member, Eva Kusuma Sundari, in the House of Representatives.

"[For a lawmaker's resignation], the party should first notify the House of Representatives, and then us. Afterwards, we will pass on the name of the replacement candidate to the House," she said on Monday as quoted by tribunnews.com.

Being the leader of the pro-government coalition of political parties, the PDI-P has five seats in Jokowi's Working Cabinet. When Jokowi formed his Cabinet last year, he appointed Puan and Tjahjo, who were still serving as lawmakers at the time.

Two other party figures were appointed to the Cabinet, namely Law and Human Rights Minister Yasonna H. Laoly and Cooperatives and Small and Medium Enterprises Minister Anak Agung Gede Ngurah Puspayoga.

Source: http://www.thejakartapost.com/news/2015/12/29/national-scene-puan-tjahjo-yet-resign-house.html

House falls far short of law target

Jakarta Post - December 22, 2015

Nani Afrida, Jakarta – Struggling with rivalry and political maneuvering among factions, the House of Representatives has failed to meet its legislation target this year.

Of 40 bills on this year's national legislation priority (prolegnas) list, it has only passed three laws: The Regional Election Law, the Regional Administration Law and the Credit Insurance Law. The last sitting session closed last week.

Indonesian Parliament Watch (Formappi) called the performance of the House this year "the worst" since the fall of Soeharto in 1998.

"We noted that only three laws emerged from 40 prioritized drafts. It means the success rate of the House was only 7.5 percent," said Formappi researcher Abdul Sahid.

Since the current batch of House members was sworn in October last year, the House has been struggling to set up committees and internal bodies amid prolonged battles between pro-government and opposition factions.

Unlike the situation over the past decade, the ruling Indonesian Democratic Party of Struggle (PDI-P), which had won the 2014 legislative elections, was denied House leadership due to a revision in the Legislative Institution (MD3) Law that was backed by the opposition.

The rivalry between the two camps also engulfed the leadership appointment process at the People's Consultative Assembly (MPR), in which the pro- government coalition, led by PDI-P, failed to secure leadership.

After a standoff between the House and the government for months, the pro- government camp gradually grew stronger, with the growing influence of President Joko "Jokowi" Widodo's administration.

In the second half of the year, the House has been effective in proceeding with confirmation hearings for various prominent appointments, including for Indonesian Military (TNI) commander Gen. Gatot Nurmantyo and National Intelligence Agency (BIN) chief Sutiyoso.

The government and the House passed the 2016 state budget after the government approved a budget allocation for the construction of a new Rp 740 billion (US$56 million) legislative building.

Formappi criticized the lawmakers for being too focused on matters related to themselves instead of the Indonesian people. "The House tended to prioritize its own interests with the [state] budget, electoral districts development budget and additional incentives for members," Abdul said.

Abdul also said that lawmakers were overly occupied with many working committees and special inquiry committees, which did not produce concrete results for public welfare.

Another Formappi researcher, M. Djadidjono, said the poor performance of the House was not in line with its budget allocation, which amounted to Rp 5 trillion in the 2015 state budget.

Ronald Rofiandri, a researcher at the Center for Policy and Law Studies (PSHK), meanwhile, attributed the delay of many legislative plans in the 2015 national legislation program to a lack of initiative by lawmakers.

"It is obvious [that there is an inefficient] process, and the quality of legislation is also poor," Ronald told The Jakarta Post on Sunday.

According to Ronald, the House has delayed preparing academic papers for required legislation, and the content of legislation often contradicted government policies.

Golkar Party lawmaker Eni Maulani Saragih acknowledged that the House had faced many political turbulences this year, adding that this had decelerated its performance.

But she said the public should not put all the blame for the poor performance on House members, pointing out that the process of making laws also involved the government. "Both legislative and executive bodies need to agree with the drafts, otherwise we can't follow them up," she said.

PDI-P lawmaker Masinton Pasaribu said a lack of coordination between the House and the government contributed to the House's poor performance.

"The House, has so many things to fix, including the absences in meetings. If many members are absent in important meetings, how can we have the discussion?" Masinton asked.

Ronald offered two solutions for the lawmakers to work more productively in 2016. "They have to work more systematically and be more disciplined. For instance, before offering a draft to be prioritized in prolegnas, they should complete the requirements first," Ronald said.

The other solution he offered was to ensure that the House and the government were on the same page on the idea of legislation's importance. "We call this legislation politics. Before the House discusses the draft, the government and lawmakers should agree that the draft is important for the people. That will save time," he added. (foy)

Source: http://www.thejakartapost.com/news/2015/12/21/house-falls-far-short-law-target.html

Jakarta & urban life

Two million daily Jabodetabek commuters flood Jakarta with motorbikes

Jakarta Post - December 28, 2015

Jakarta – Due to a lack of public transportation, commuters are forced to rely heavily on private vehicles for day-to-day transportation between residences outside Jakarta and workplaces in the capital.

According to the Central Statistics Agency (BPS), 3,566,178 commuters depart Bogor, Depok, Tangerang and Bekasi for workplaces across Jakarta every day, most of whom – 2,075,159 – rely on motorcycles for transportation.

Private cars are the second most popular form of transportation, with 455,044 commuters making use of this mode, followed by commuter trains with 359,598. Meanwhile, many commuters also make use of public transportation such as city buses and public minivans.

PT KAI Jabodetabek (KCJ) president director Muhammad Nurul Fadhila said that, although the number of passengers making use of state-owned public transportation continued to increase, the number of commuters using public transport to travel to and from their workplace remains relatively low.

"Those using the commuter train make up a mere 10 percent of [the total commuters]," said Muhammad in Jakarta on Monday, as reported by kompas.com, adding that his company had tried to expand, improve and increase services by improving infrastructure and facilities to make traveling by train more convenient for passengers.

With a figure of 253,355, 851 in 2015, 206,783,321 in 2014 and 157,638,362 in 2013, the total number of passengers commuting to and from Jakarta on a daily basis is increasing annually. (bbn)

Source: http://www.thejakartapost.com/news/2015/12/28/two-million-daily-jabodetabek-commuters-flood-jakarta-with-motorbikes.html

City to continue project despite resistance from residents

Jakarta Post - December 28, 2015

Jakarta – The South Jakarta administration will continue in its ambition to reshape the Ciliwung River even though the project necessitates the eviction of residents and the destruction of dozens of houses, an official has said.

Despite protests from residents demanding compensation, the administration is adamant in its ambition to reshape the river to help alleviate the annual flooding problems that afflict Jakarta.

"There will be no more negotiation about compensation. We will stick with the plan by starting the project on Monday, whether they like it or not," South Jakarta Mayor Tri Kurniadi said on Saturday. "Moreover, almost all of the residents have agreed to the compensation that we have already offered."

Tri explained that his administration had provided apartments in the South Cipinang Besar and Pulo Gebang apartment blocks, both in East Jakarta, for 97 households in neighborhood units (RT) 11, 12 and 15 of Bukit Duri.

The mayor denied the claim of the Jakarta Legal Aid Institute (LBH) that around a dozen households were still fighting for "fairer compensation".

Tri countered that only one household was still demanding cash compensation, while the remaining households had moved themselves to the apartments.

On Wednesday, the LBH and representatives from Bukit Duri met with officials from the city administration following the issuance of the first warning letter regarding the relocation. In the letter, the city administration demanded that the residents pack their belongings and move to other places by Dec. 25.

Oky Wiratama, a public lawyer from the LBH, said that during Wednesday's meeting, the representatives had asked the authorities to postpone the river widening project until both parties spoke with one voice on compensation packages.

She said around a dozen of households had sales and purchase deeds and documents related to property tax.

Oky said that the residents had previously hoped that they would receive the compensation promised to them by former Jakarta governor Joko "Jokowi" Widodo. Jokowi pledged that the city administration would provide them with cash compensation in accordance with the area of the land plot that they owned.

"He even promised to give compensation for the residents' flower pots," Oky added. "However, Governor Basuki 'Ahok' Tjahaja Purnama revoked the decision."

She then pointed out that the city administration had violated relocation procedures because it drew a raffle for the apartments before having reached an agreement regarding compensation with all of the residents.

According to Oky, the city officials seemed to be in a rush to execute the program.

On Saturday, Tri rejected all of Oky's statements. He said that the residents could not claim cash compensation because they only owned documents pertaining to building ownership. He explained that they had to own documents pertaining to plots of land in order to legitimately claim the compensation they wanted.

Tri said that the city would try to begin the project as early as possible to prepare for Jakarta's peak period of flooding, expected to arrive in January or February of next year. (agn)

Source: http://www.thejakartapost.com/news/2015/12/28/city-continue-project-despite-resistance-residents.html

Police & law enforcement

Police chief apologizes for poor service

Jakarta Post - December 31, 2015

Jakarta – National Police chief Gen. Badrodin Haiti has apologized for the police's failure to respond to complaints from members of the public.

"Most people complained about our investigative process. We apologize to those who have not yet received our best services," Badrodin said as quoted by tribunnews.com.

This year, the police received 619 complaints from members of the public who claimed that they had been treated unfairly by investigators. This year's figure were lower than the 778 complaints recorded in 2014.

Badrodin also apologized for the behavior of certain police personnel who had engaged in corrupt practices. "There are some who manipulate or even ask for bribes," he said.

The police are seen as one of the most corrupt and bribe-riddled institutions in the country.

In January, the Corruption Eradication Commission (KPK) named then candidate for National Police chief Insp. Gen. Budi Gunawan a graft suspect for alleged financial misdeeds in his capacity as head of the Career Development Bureau at the National Police from 2004 to 2006, where he amassed wealth amounting of Rp 95 billion, allegedly acquired through bribes and gratuities, including bribes allegedly paid by officers in pursuit of higher posts in the police.

Source: http://www.thejakartapost.com/news/2015/12/31/national-scene-police-chief-apologizes-poor-service.html

Higher number of police injured in brawls

Jakarta Post - December 28, 2015

Jakarta – Indonesian Police Watch (IPW) revealed on Sunday that the number of police injured in 2015 had increased almost 40 percent, stating that the police had been injured in brawls, violent muggings, mass protests and attacks by football supporters.

IPW chairman Neta S Pane said that the number of police personnel injured in 2015 had reached 74, significantly higher than the 42 personnel injured the previous year.

"The number of police injured during crowd fights reached a total of 25 personnel, the largest number of injury cases," Neta said, adding that the crowd fight category included those cases involving only their own institution's personnel or those with military personnel.

In September, a brawl occurred between the police and the Indonesian Military (TNI) in Polewali Mandar regency, West Sulawesi, after a member of TNI had been killed by police at a motorbike racing circuit.

IPW also noted that throughout 2015, 18 police personnel had been killed, a figure lower than the 41 killed in 2014. "The causes of death were suicide [seven cases], shooting [four cases], accident [three cases] and so on," Neta said.

According to him, several of the cases had occurred in Jakarta, West Java and South Sulawesi. "Jakarta had 12 cases, while West Java and South Sulawesi had four cases each," Neta said.

Source: http://www.thejakartapost.com/news/2015/12/28/national-scene-higher-number-police-injured-brawls.html

Mining & energy

Freeport submits permit extension, eyes future reform

Jakarta Globe - December 28, 2015

Rangga Prakoso & Alin Almanar, Jakarta – Mining giant Freeport Indonesia has submitted its request to extend its permit for concentrate exports, set to expire on Jan. 28.

An Energy and Mineral Resources Ministry regulation stipulates concentrate exports extension requests must be submitted 45 to 30 days before the permit expires. "We have submitted the extension request," Freeport Indonesia spokesman Riza Pratama said in Jakarta on Monday.

Indonesia reviews concentrate export permits every six months, as part of the much-criticized implementation of a mineral export ban policy that came into effect in January 2014.

The government ties in permit extensions with miners' willingness to develop smelters in an effort to add value to Indonesia's raw minerals in- country.

Freeport Indonesia – which operates Grasberg, one of the biggest copper and gold mines in the world – has committed to investing in a $2.3 billion project to expand the capacity of its joint-venture copper smelter in Gresik, East Java.

The government previously granted a permit to Freeport to export concentrates, valid from July 28 this year until Jan. 28, 2016. The permit was granted after Freeport reported to the ministry that the Gresik smelter development had reached 11 percent. Riza declined to provide an updated estimate.

Concession saga

Freeport has been embroiled in a major political scandal this month, after the firm's Indonesian chief reported claims to the Energy and Mineral Resources Minister Sudirman Said that then-House of Representatives Speaker Setya Novanto had attempted to extort the mining giant.

Setya allegedly requested a stake in its divestment plan, estimated to be worth billions of dollars, in exchange for "high level" lobbying to allow the miner to secure contract extensions before its concession ends in 2021.

US-based parent Freeport McMoRan requested certainty for the 2021 extension, after announcing it plans to spend $15 billion in developing underground mining operations at Grasberg.

A government regulation, however, states concession extensions can only be filed within two years of the original end date – 2019 at the earliest in Freeport's case.

Sudirman last week told the Jakarta Globe that the miner had once told him a business plan of such a large scale "won't be feasible" without certainty of an extension. Still, he did not disclose if an extension could be granted sooner than 2019.

The government will consider certain parameters, including reviewing the progress of smelter development and the extent of Freeport's commitment to investing in Gresik, Sudirman said.

Source: http://jakartaglobe.beritasatu.com/business/freeport-submits-permit-extension-eyes-future-reform/

Incentives announced for much-needed refinery investment

Jakarta Post - December 22, 2015

Ayomi Amindoni, Jakarta – The government has promised tax allowances and other incentives for much-needed investment in oil refineries to speed up development, as stipulated in the latest economic policy package.

According to Energy and Mineral Resources Minister Sudirman Said, the eighth economic policy package includes fiscal and non-fiscal incentives for oil refinery construction.

Private investors have been reluctant to build oil refineries due to uncertain project modalities, a lack of incentives and unappealing margins. Sudirman said the government would issue a presidential regulation on incentives to provide legal certainty.

"They [investors] will get tax allowances and tax holidays, and even financing guarantees from the government, if necessary," Sudirman told journalists in Jakarta on Tuesday.

They would also receive assurances on future sales, with Pertamina appointed as the off-taker for output. In addition to that, the period of land certification would be extended to 80 years.

"The presidential regulation on refineries will give us clarity on the schemes. Refineries can be built through state funds. It may be Pertamina cooperating with private entities and/or state-owned enterprise, or a private corporation exclusively," he explained.

Fuel demand in Indonesia stands at approximately 1.6 million barrels per day, while oil production from domestic refineries amounts to just 800 thousand barrels per day.

"Hopefully, the construction of new oil refineries will increase oil production to more than 1 million barrel per day," Sudirman said.

Bontang and Tuban

Earlier, Coordinating Economic Affairs Minister Darmin Nasution stated that the government planned to expedite the construction of crude oil refineries in Bontang, East Kalimantan and Tuban, East Java, with fiscal incentives.

"The construction and development of the refineries is to be done using the latest technology, [...] meeting environment protection and, of course, giving priority to the use of domestic products," Darmin said in a statement.

The government plans to upgrade existing refineries in the country. The government has projected oil production to increase from 825 thousand barrels per day in 2015 to 1.9 million barrels per day in 2025.

To date, there are four operational refineries that need improvements. They are located in Cilacap in Central Java, Balikpapan in West Kalimantan, Balongan in West Java and Dumai in Riau. (ags)

Source: http://www.thejakartapost.com/news/2015/12/22/incentives-announced-much-needed-refinery-investment.html

Economy & investment

Another year of missed targets

Jakarta Post - December 31, 2015

Tassia Sipahutar, Jakarta – The economy went through another year of trials and tribulations in 2015, marking a continuation of the slowdown that has plagued the country for the past few years, as economists point to several missed targets.

The most notable misses pertain to economic growth and tax revenues, with Moody's Analytics economist Faraz Syed saying in an email that the economy would "expand at a below-potential rate in 2015."

As 2015 draws to a close, full-year economic growth is set to be around 4.7 percent, far below the 5.7 percent target stipulated in the revised state budget and also below the 5.02 percent growth rate recorded in 2014.

Syed attributed the low rate to external headwinds, which had caused exports to fall, and raging forest fires that engulfed large parts of Kalimantan and Sumatra.

"The Indonesian economy expanded at a sub-par rate of 4.7 percent yoy [year-on-year] in the first three quarters of 2015 and likely into the fourth," he wrote in a separate report.

External headwinds, such as weak global prices and demand for commodities, have indeed hurt exports, which dropped 14.3 percent year-on-year in the January to November period, as shown by data from the Central Statistics Agency (BPS).

Experts at the World Trade Organization (WTO) have estimated that world growth in 2015 would remain stagnant at 2.8 percent and have applied the strongest downward revision in Asia due to China's slowing economy.

Falling demand from China, in particular, hurt Indonesian exports. Exports to that country – which is one of Indonesia's main trading partners – have so far fallen by 20.5 percent on an annual basis.

"Indonesia's reliance on [exports to China] has risen over the past decade, as China's investment boom augured higher demand for Indonesian commodities, but that trend is over," Syed added.

Meanwhile, in terms of tax revenue, the full-year achievement is estimated at Rp 1.1 quadrillion (US$80.54 billion) by year-end, equal to 85 percent only of the Rp 1.29 quadrillion target. Failure to reach the target prompted Sigit Priadi Pramudito to quit his job as Tax Office head.

The poor tax revenue performance, according to Bank Mandiri economist Andry Asmoro, has hampered economic progress.

"We want to carry out so many projects, but we have limited funds, because we cannot realize the tax target. Like it or not, we have to set priorities," he said, adding that the current administration seemed to lack that prioritization.

Overall, Andry agreed that various indicators showed worse results compared to 2014. "The situation is also partly caused by euphoria after Pak Jokowi [President Joko Widodo] took office. 'Oh, Pak Jokowi is here, growth will pick up,' when in fact, we have been facing this downward cycle since 2011," he said.

To make matters worse this year, the rupiah suffered a sharp depreciation against the greenback, and a significant amount of foreign funds was pulled out of the local stock market.

Data show that the rupiah has weakened by an average 9.5 percent throughout the year as the Indonesian Stock Exchange (IDX) recorded Rp 22.47 trillion worth of net sales.

Bank Danamon economist Dian Ayu Yustina said the currency's movement had been "too volatile" in 2015 and acknowledged that nobody saw the renminbi devaluation coming.

"The biggest shock that we didn't expect was the CNY [Chinese yuan renminbi] devaluation. The volatility was also exaggerated by panic buying from domestic investors," she said.

The devaluation in August sparked global concerns and caused emerging market currencies, including the rupiah, to tumble. At one point after the devaluation, the rupiah even fell the most, touching the level of 15,000 per US dollar.

According to Dian, the sharp depreciation caused pessimism in the economy, with many companies postponing their expansion plans and consumers putting their spending on hold.

However, not all hope is lost. Dian said she expected to see some easing in the foreign exchange market and a more stable currency, with the rupiah moving between 13,800 and 14,100 per US dollar in 2016.

A Cabinet reshuffle has helped pave the way for better coordination and spending disbursement at the government level for next year as well.

Syed also lauded domestic reforms through economic policy packages that he said would be positive for the country's medium- and long-term economic future.

The government has so far introduced eight packages since September in an effort to address structural issues. However, Syed proposed a pickup in infrastructure spending to offset external headwinds in 2016.

"So far in 2015, infrastructure spending has been below the target. If infrastructure spending targets are hit next year, they will partially offset the external headwinds. In this scenario, growth could be closer to 5.5 percent in 2016."

Source: http://www.thejakartapost.com/news/2015/12/31/another-year-missed-targets.html

Builders firms faced the music despite govt infrastructure boost

Jakarta Post - December 31, 2015

Anggi M. Lubis, Jakarta – Despite expectations earlier this year that the country's construction industry would flourish alongside the government's higher infrastructure budget, some construction companies are closing the year with lower than expected results in meeting their initial contract targets.

State-run construction firm Waskita Karya was among the few that managed to close up the big gap between their targets and their actual contract achievement, just days before the calendar rolled over.

Waskita corporate secretary Hadi Susilo said his company was optimistic that it would pocket Rp 30 trillion, or around 32 percent above its target of Rp 22.7 trillion. Waskita, as previously reported, has countered the overall trend in the construction sector, rising above its peers mostly thanks to robust toll road projects.

Meanwhile, state-run construction company Pembangunan Perumahan (PP) corporate secretary Agus Samuel Kana said his company secured Rp 21.07 trillion by the end of November, a far cry from its full year target of Rp 27 trillion.

"This has not been an easy year for the construction business. There were challenges that led to delays in project tenders. Our business has been supported by, among other things, our subsidiary, PP Properti," Agus said, referring to his company's property subsidiary that went public earlier this year. He said that the subsidiary had contributed around 20 percent to the company's new contracts.

However, Agus noted that business progressed well in December and his company was currently waiting for the results from some tenders that would be out in few days and which would be able to help the publicly-listed firm gather in the remaining Rp 6 trillion.

Wijaya Karya (Wika), on the other hand, did not manage to pocket more than 80 percent of its initial target, with corporate secretary Suradi saying that the construction firm might only wrap up the year with Rp 25 trillion in new contracts.

The company initially hoped to pocket Rp 31.64 trillion in new contracts in 2015 and Suradi cited the economic slowdown and project delays as the factors that had affected the target results.

Adhi Karya corporate secretary Ki Syahgolang Permata said he could not yet disclose his company's estimation for the year's target. By November, however, the company pocketed only Rp 11.1 trillion, or around 59 percent of its full-year target of Rp 18.7 trillion.

The construction sector has been in the spotlight of late after the Public Works and Public Housing Ministry, responsible for some of the most important infrastructure projects touted by President Joko "Jokowi" Widodo's administration, was allocated Rp 119.84 trillion in the 2015 state budget.

The government has pledged to provide 35,000 megawatts in power through state-run construction firm PLN and independent power producers (IPP). The government has also pledged to connect toll roads in Java and Sumatera and build dams and other utilities nationwide.

The ministry, however, spent just 87.23 percent of its budget as of Dec. 22, still 6 percent short of its initial spending target of 93 percent by the end of the year. Despite the failure of many construction companies to meet their targets, construction think tank BCI Asia country manager Agus Dinar said that the country's construction sector was not facing an industry slowdown.

In fact, he argued that contract realization throughout the year showed significant growth compared to last year, mostly driven by a notable increase in infrastructure work propelled by robust IPP projects.

Data provided by BCI Asia showed that the total value of Indonesia's construction projects was expected to reach around Rp 402 trillion in 2015, an increase of 28.47 percent compared with 2014.

While most construction subsectors grew by double-digit rates this year, BCI's Agus highlighted the outstanding growth recorded in utilities – rising 81 percent year-on-year. He said that this substantial increase was powered by rampant power plant projects across the country. "Actually, this year went quite well for the construction sector," he said.

"Construction companies might have had difficulties in achieving their targets, but we have to remember that targets always go up each and every year. What we have to see is how the realization is, whether they are able to book higher records compared to the previous year."

Source: http://www.thejakartapost.com/news/2015/12/31/builders-firms-faced-music-despite-govt-infrastructure-boost.html

Industrialization through economic stimulus packages

Jakarta Post - December 31, 2015

Esther Samboh, Jakarta – The country has become too dependent on its rich natural resources. Predictably, when the commodity boom went bust, the country was left with little to turn to.

Just four years ago, the world's top producer of commodities from palm oil to coal enjoyed strong economic growth at around 6 percent with a current- account surplus. During this period, Indonesia was complacent.

Then, as it is with every cycle, the commodity boom ended. Starting in 2012, prices fell and global demand weakened alongside uncertainties in the world's top economies, a condition that persists until now. In Indonesia, growth plummeted and the current account has been in deficit for the past few years.

In a desperate attempt to stoke growth, the government turned to the manufacturing industry only to find that it was no longer a mainstay in the economy. The share of labor-intensive manufacturing industries to Indonesia's gross domestic product (GDP) has declined steadily from around 30 percent in 2003 to 20 percent presently, a striking figure for the new administration.

"There was not enough motivation to support the birth of a manufacturing industry [during the commodity boom]," said Coordinating Economic Minister Darmin Nasution. "When the new administration rose to power, there was not enough of an industrial sector to get going."

The previous administration tried to encourage more exports of processed products instead or raw materials, but the move was far from a successful one. In addition to natural resources, footwear, gemstones and heavy equipment are the nation's only high-growth manufacturing exports.

The new administration wants to change that by focusing on the potential of the manufacturing sector for exports that includes wood, furniture and textiles. Darmin said the government aimed to boost export capacity through a domestic institution to identify, promote and market the country's export potential.

It also aims to significantly reduce burdensome imports of oil, petrochemicals, iron, steel and chemical and pharmaceutical products to ease pressure on the trade balance and current account.

"Wise men would recognize that we should push for the development of industry to reduce our reliance on imports," Darmin said, explaining that petrochemicals, iron, steel and chemical and pharmaceutical products topped the list for the country's import of raw material and capital goods.

Next year, the government plans to roll out new policies and efforts at deregulation in order to develop petrochemical refineries and iron and steel industries as well as spareparts for power plants. It is hoped that the development of these industries will support the 35,000 megawatt electricity procurement program until 2019, and will ultimately reduce imports.

As for chemicals and pharmaceuticals, the government will offer incentives and regulatory aid to support local production to meet the growing demand for health spending for the National Health Insurance Program (JKN), given that around 90 percent of health equipment is imported.

It has also allowed full private participation in the development of oil refineries, a move that is expected to reduce dependence on oil imports.

These policies, coupled with three-hour permit facilities for businesses in industrial zones and incentives for labor-intensive industries, are a clear sign that President Joko "Jokowi" Widodo's administration is pushing industrialization efforts to stoke growth and provide jobs in Southeast Asia's largest economy.

From September to December, the government rolled out eight economic policy packages designed to support investment and industrial growth in response to the country's slowing economy.

"The government has continued its efforts to add value into our raw products. We need more places [industrial zones] to become centers of manufacturing, processing and industrial activity," Indonesian Industrial Estate Association (HKI) chairman Sanny Iskandar said.

Although deregulations and new rules were introduced in the eight economic stimulus packages, central government regulations have stayed the same even though they are considered by some to impede investment projects from toll roads to power plants.

"One area we have not deregulated are the licensing procedures in regions. Like it or not, we have to enter into that area. Maybe it will take longer because we are up against the issue of regional autonomy," Darmin said.

Hariyadi Sukamdani, chairman of local business lobby group Indonesian Employers Association (Apindo), said the government's economic policy packages had boosted optimism regarding the country's economic situation. Such measures, he said, indicated the government's commitment to overseeing growth, especially in the manufacturing industry.

"We commend the government's ambition to revive growth in our industry," said Hariyadi, noting that the current share of manufacturing to Indonesia's economy was 20 percent, the highest of all sectors followed by trade and agriculture.

Following the issuance of the first few economic stimulus packages, the rupiah turned around its steep decline to level out at around Rp 13,000 per US dollar from more than Rp 14,500 previously.

"With government policies that are more pro-industry, overseas investors are starting to take Indonesia seriously again," Hariyanto said. "Although the policies have just begun to take shape, at least they offer positive sentiments to investors."

Industrial growth could reach between 10 and 20 percent per year over the next few years from the government's 6.1 percent target this year, according to Johnny Darmawan, Apindo's chairman for the industrial sector.

For 2016, the government is targeting overall economic growth of 5.3 percent, a target that can only be reached if infrastructure projects, industrialization and exports all go up together, according to Minister Darmin.

"There is practically nothing else we can do other than trying to invite [investors] by giving out sweeteners," he said.

[Prima Wirayani contributed to this story.]

Govt's economic policy packages in 2015

First Sept. 9

Cuts red tape, boosts industries through deregulation
Enhances law enforcement and business certainty
Provides LPG converter kits for fishermen to reduce operating costs
More rice subsidies for the poor
Allows foreigners to own luxury apartments and condominiums worth at least Rp 10 billion
More fund transfers to villages

Second Sept. 29

Interest-rate tax cuts for exporters
Speeds up investment licensing for investment in industrial estates
Relaxation of import taxes on capital goods in industrial estates and aviation

Third Oct. 7

Lower fuel, electricity and gas prices
Micro loan subsidies, expansion of loans for small business
Simplifies land permits for investment activities

Fourth Oct. 15

Fixed formula to determine increases in labor wages
Soft micro loans for at least 30 small and medium, export-oriented, labor-intensive businesses

Fifth Oct. 22

Tax incentives for asset re-evaluation
Scraps double taxation on real estate investment trusts
Deregulation in sharia banking

Sixth Nov. 5

Tax incentives for investments in special economic zones
Speeds up import permits for raw materials of medicines (paperless)

Seventh Dec. 4

Waive income tax for workers in the nation's labor-intensive industries
Free leasehold certificates for street vendors operating in 34 state- owned designated areas

Eighth Dec. 21

Nationwide one map policy with 1:50,000 scale
Refinery development push, permission for private investment
Aircraft maintenance, repair, overhaul industry support through incentives

Source: Various sources compiled by The Jakarta Post

Source: http://www.thejakartapost.com/news/2015/12/31/news-analysis-industrialization-through-economic-stimulus-packages.html

Analysis & opinion

Indonesia's Freeport saga

New Mandala - December 22, 2015

Gustidha Budiartie and Eve Warburton – Competing factions of politico- business elites are fighting a war over a lucrative mine contract and President Jokowi is caught in the middle.

The Speaker of the Indonesian parliament, Setya Novanto, stepped down from his post last week. The powerful Golkar party operator was on trial in the Parliamentary Ethics Committee for allegedly meeting with American copper and gold mining company Freeport McMoran to arrange a private business deal. Setya beat the Committee to the punch, stepping down before it could formally request his resignation.

The scandal is a dramatic twist in what have been long and fraught negotiations between the government and Freeport over the company's contract extension.

Those within government and parliament who oppose the extension do so on nationalist grounds, arguing that the American miner should no longer exploit and benefit from Indonesia's natural riches. Those who support an extension argue that neither state owned nor private Indonesian companies have the capital or expertise to run such an operation.

But the Setya affair demonstrates there is another dimension to this conflict. The Freeport contract is the site of a factional war between different politico-business networks, and President Joko 'Jokowi' Widodo appears to be caught in the middle.

The scandal

In mid-November, Indonesia's media erupted over the publication of a transcript of a meeting in which Setya, and shady oil-man, Riza Chalid, met with the President Director of Freeport Indonesia.

In the recording, the pair offers to expedite the company's contract extension in return for shares in an electrification project that will service the Freeport mine. They named the Coordinating Minister for Politics, Law and Security, Luhut Panjaitan, as a key enabler. Luhut is an old business partner and close confidant of Jokowi.

What made this proposition particularly scandalous was that Setya and Riza presented themselves as gatekeepers of the presidential palace, with special access to and influence over Jokowi. At one point in the transcript, Riza even suggested that President Jokowi would "fall" should he attempt to prevent the contract extension.

The covert recording was made by President Director of Freeport Indonesia, Maroef Syamsuddin, who happens to be former deputy director of the State Intelligence Agency (BIN). Minister for Energy and Mineral Resources, Sudirman Said, went public with the transcript and reported Setya to the Parliamentary Ethics Committee.

The Minister is on the war path, determined to assert control over the contract negotiations and isolate other players like Luhut, Setya and Riza. While Jokowi has often been equivocal in his support for Sudirman Said, Vice President Jusuf Kalla has backed Sudirman from the start, and called for Setya's resignation.

The controversial contract

The Freeport contract is far more significant than a typical mining contract. The American company has run the most profitable gold and copper mine in the world out of Indonesia's Papua province since 1967. As it readies for an 18 billion dollar underground expansion of the mine, the company is seeking an early extension of its contract, which expires in 2021.

Negotiations with the government have dragged on for years. In part, this is because the mining company has a troubled history in Indonesia. Its Grasberg mine is situated in one of Indonesia's poorest provinces, where a low-level separatist conflict has simmered for decades. Freeport has been accused of human and labour rights abuses, and has a checkered environmental record.

Many Indonesians also feel Freeport has not approached the contract negotiations in good faith. The company has threatened to take Indonesia to international arbitration for not honouring the terms of their original contract.

At the same time, Freeport itself has avoided fulfilling some parts of that contract. For example, the company has only divested 9.36 per cent of its shares, when the contract mandates that 39 per cent should have been divested to local parties by this stage. For all of these reasons, Freeport is controversial and unpopular with the public.

Media and politicians often frame the contract negotiations as a test of Indonesian sovereignty. So extending the contract is politically sensitive, and the government must be seen to be getting the best possible deal.

Brokering a deal

Minister Sudirman Said recently indicated that the government would extend the contract in return for significant concessions from the company – everything from increased royalties and local content to a commitment to building refining facilities.

Sudirman has long argued that Indonesia needs this investment, and that local players have neither the financial capacity nor expertise to take over the mine. The problem is that providing the company an extension now requires changing a government regulation that mandates mining contracts may only be extended two years prior to expiry – in this case 2019.

Some insiders suggest that Said is a "Kalla man", and that his approach to the Freeport contract is in fact part of a larger plan to facilitate the advance of Kalla's private interests, including in the businesses that service the Freeport mine.

But such claims remain unsubstantiated, and to most observers Said represents the closest thing to a reformist that the Ministry has seen in years. Even if the Vice President does have his sights set on service contracts, there are many within the Indonesian mining industry and the Ministry for Energy and Mineral Resources (MoEMR) who argue the extension is necessary.

Either way, Said's position on this matter, and his combative style, brings him into regular conflict with other powerful members of the executive – particularly Luhut Panjaitan, a political ally and business partner of Jokowi.

Luhut makes both a legal and ideological argument against extending the Freeport contract. First, he says, the regulations should not be changed for the benefit of a foreign company. Second, the state should acquire the mine once the contract expires, he argues, and only then invite Freeport to participate in a joint operating agreement with state owned company, Aneka Tambang.

Luhut's position is a popular one with the public and some members of the executive and parliament. Rizal Ramli, one of Jokowi's coordinating ministers, makes similar arguments against an early extension of the contract. This approach resonates with the broader, more assertive nationalist mood that has characterised political discourse in recent years, particularly when it comes to resource sectors.

Opportunists like Setya leverage the nationalist mood for their own private benefit. In fact, the transcript makes Luhut's nationalism appear disingenuous, too. Setya and Riza implicate him in their attempted deal, though Luhut denies any involvement.

Like many within Indonesia's politico-business class, Luhut has interests in the mining sector. In fact, he's spoken openly about meeting with Freeport back in 2012 to discuss acquiring company shares.

The fallout?

The Indonesian public was understandably incensed by the transcript. A flurry of memes and videos supporting Sudirman and disparaging Setya did the rounds on Twitter and Facebook.

The popular current affairs show, Mata Najwa, dedicated several programs to the case, and attacked Ethics Committee members for their own ethical transgressions. Various petitions circulated via social media, calling for Setya's resignation; some called for the Ethics Committee and even the entire parliament to be replaced.

The investigation by the Ethics Committee reeked of political manipulation. Golkar quickly stacked the Committee with party members loyal to Setya, and their treatment of Minister Said revealed blatant bias.

Given the hearing's politicisation, many observers were surprised that the majority found Setya had indeed committed a serious ethical violation. Mounting public pressure probably contributed to Setya's resignation.

But it appears that Setya loyalists in the Commission were merely pushing for a second hearing, in order to stall a decision. In the end, Setya offered to step down on condition that the case against him is brought to an end, and that he be made Golkar's caucus chairman.

Not only did Setya escape serious punishment, he was given a strategic role in parliament. He is a key political broker, skilled at extracting and distributing rent, and is clearly indispensible to Golkar and party chairman Aburizal Bakrie. It was always going to be hard to punish Setya for his transgression.

Luhut and Setya are primarily responsible for organising parliamentary support for the government's policies and its budget. Opposition parties have been relatively quiescent since Jokowi came to power, and most political analysts put this down to wheeling and dealing – and probably the distribution of largesse – between Luhut, the former House of Representatives speaker and the leaders of opposition parties.

So even though Jokowi was reportedly furious at the content of Setya's meeting, the President was in a difficult position politically. Striking at Setya might snare Luhut, and could threaten the deal-making that has helped his government to function.

Ideology, rent seeking and foreign capital

Observers frequently scratch their heads, wondering why the Indonesian government appears so bellicose with regard to foreign companies, particularly Freeport, when at the same time government leaders reiterate that the country badly needs investment. The assumption is often that state officials are myopic, naove and corrupt in their approach to the business community. But this proposition is unsatisfying.

The reality is that the structure of the Indonesian economy necessitates foreign investment, but structural features of Indonesian politics often inhibit it.

While some within the Ministry of Energy and Mineral Resources and the political elite would prefer to extend the contract (with significant concessions from Freeport of course), they face widespread and assertive nationalist sentiment, and a political system that is built around extraction.

As more and more foreign resource contracts approach expiration, the question of who should control and profit from Indonesia's resource sectors becomes increasingly contentious. Popular nationalist narratives of indigenous ownership dovetail neatly with the goals of an aggressive politico-business elite that see lucrative resource projects as ripe for the picking.

And politics is expensive. As the system currently operates, political parties need business types like Jusuf Kalla, Setya Novanto, Aburizal Bakrie and Luhut Panjaitan to fund campaigns and purchase political deals. These politico-business elites expect to be repaid with preferential access to lucrative resource contracts, and Freeport is the gold prize.

Jokowi made a strong public statement against Setya's actions, and made it clear he expected Setya to resign. But Jokowi is a political outsider, and lacks influence in Jakarta's elite political networks. The President's weak position means that rent-seeking competition around the Freeport contract is creating deep fissures within the executive.

In the coming weeks, this current scandal will fade from the front pages. Setya will survive, and Riza will remain abroad for as long as it takes to broker a deal for his protection. Luhut's relationship with Jokowi will probably weather the recent storm as well. Freeport's contract negotiations will almost certainly be pushed back to 2019.

But the case remains significant. Setya was forced to resign as Speaker, and politicians may be a little more cautious next time they sit down to extort rents from a foreign company. And Indonesia's public was able to witness, in fascinating and nauseating detail, the mechanics of rent seeking at the highest level.

Some may begin to interrogate the nationalist pomp of their leaders. Leaving Indonesia's copper and gold in the hands of an American company might be hard to swallow, but is passing it to the political oligarchs any better?

[Gustidha Budiartie is a Jakarta-based journalist. Eve Warburton is a PhD candidate at the Coral Bell School of Asia Pacific Affairs, the Australian National University.]

Source: http://asiapacific.anu.edu.au/newmandala/2015/12/22/indonesias-freeport-saga/